Title
Authorization to Extend Professional Services Agreement with Molera Alvarez, LLC (Ordinance S-43750)
Description
Request to authorize the City Manager, or his designee, to extend Professional Services Agreement No. 139598-1 with Molera Alvarez, LLC, for a contract term not to exceed one year beginning Aug. 1, 2017, and authorize the City Controller to disburse funds in an amount not to exceed $185,270.
Report
Summary
In 2014, following a competitive procurement process, City Council authorized a Professional Services Agreement with Molera Alvarez, LLC, to represent and advance trade promotion, Foreign Direct Investment and tourism interests of the City of Phoenix in Mexico. This agreement has proven successful as demonstrated by the achievements under the established Key Performance Indicators. As of mid-2017, efforts have been coordinated that have resulted in 19 inbound/outbound trade missions, representation at 41 expositions and conferences, 63 trade leads and prospects, seven cooperation agreements, eight "Doing Business in Phoenix" roadshow presentations in leading Mexico markets, Foreign Direct Investment (FDI) locates and prospects (Eitiquetas Mexico; Lariv Desarollos), and inaugurations of the City of Phoenix trade offices in Mexico City and Hermosillo.
The City of Phoenix has established a recognized leadership position in Mexico as it relates to key relationships and economic opportunity. Maintaining this leadership position requires a sustained effort. To that end, staff is proposing to extend the contract with Molera Alvarez, LLC, for Trade Development Representative Services to further elevate our leadership position, leverage the success to date, and position the City of Phoenix for increased economic opportunity with Mexico.
The contract extension will consist of the following elements of the scope of work, including:
* Identify, qualify and support trade and sales opportunities with Mexico of both products and services for Phoenix companies.
* Identify enhanced supply chain opportunities for Phoenix companies looking to expand their product purchasing from Mexico.
* Fully support the preparation and implementation of visitation programs for City of Phoenix inbound missions of elected officials, business leaders and private companies pursuing trade.
* Provide economic development staff in Mexico City and Hermosillo, as well as resources in Phoenix to administer the Mexico strategy.
* Continue physical presence in Mexico City and Hermosillo.
* Expand comprehensive "Doing Business in Phoenix" Roadshow programs in Tijuana, Chihuahua and State of Mexico, in addition to existing locations of Mexico City, Hermosillo, Queretaro, Guadalajara, Monterrey and Culiacan.
* Expand trade missions to and from target cities, including: Mexico City, Hermosillo, Guadalajara, Queretaro, Tijuana, Monterrey and Saltillo.
* Continue successful North America NOW Forum series focused on opportunities in Mexico in key sectors such as Infrastructure, Aerospace, Medical Devices and Information Technology.
* Pursue Memorandums of Understanding (MOUs) with aerospace and automotive clusters in Queretaro, Guanajuato, San Luis Potosi, Nuevo Leon, among others, and related research institutions.
* Develop opportunities in emerging sectors that have been identified as core growth areas for the City of Phoenix such as Cybersecurity and the Internet of Things (IoT).
* Advance FDI prospects targeting Phoenix for expansion and development opportunities.
* Expand participation in targeted trade shows and programs throughout Mexico, including Mexico's Aerospace Summit, ExpoIndustrial, ExpoManufactura, FAMEX and ExpoMed.
Mexico remains the top trading partner for both the City of Phoenix and State of Arizona, and we have experienced record exports to Mexico for the three most recent years for which data is available, 2013 ($2.7 billion), 2014 ($3.6 billion) and 2015 ($4.2 billion). Active engagement with Mexico is necessary to continue this positive export trajectory.
Contract Term
The contract year is Aug. 1, 2017, through July 31, 2018, in an amount not to exceed $185,270 for all services satisfactorily performed under this Agreement. All other terms and conditions of the Agreement will remain in full force and effect.
Financial Impact
Funds are available in the Community and Economic Development Department's Capital Improvement Program budget.
Concurrence/Previous Council Action
The Downtown, Aviation, Economy and Innovation Subcommittee approved this item on June 7, 2017, by a vote of 4-0.
Department
Responsible Department
This item is submitted by Deputy City Manager Paul Blue and the Community and Economic Development Department.