Title
Mexico Trade Development Consulting Services Request for Proposals Contract Award (RFP-CED19-MTD) (Ordinance S-46158)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Molera Alvarez LLC to provide Mexico trade development consulting services. The aggregate amount for the initial two-year contract term will not exceed $552,000. Further request to authorize the City Controller to disburse all funds related to this item. There is no impact to the General Fund. Funding for this contract is available in the Downtown Community Reinvestment Fund.
Report
Summary
On March 20, 2019, City Council authorized staff to issue a Request for Proposals (RFP) for Mexico Trade Development Consulting Services to facilitate economic activity between Mexico and Phoenix.
In 2014, City Council authorized staff to issue a solicitation and subsequently enter into a professional services contract for Mexico trade development representative services to position the City and its partners to be proactive, focused and committed to long term, bilateral and strategic economic engagement with Mexico. As part of these services, the City opened trade offices in Mexico City and Hermosillo. The contract resulting from this solicitation expired on July 31, 2019. The City Council declined to extend the contract at its June 26, 2019 Formal City Council meeting, and the Mexico offices closed at the end of July.
If approved, services to be provided by Molera Alvarez will focus on:
- Expanding the City’s footprint in Mexico through the existing city offices and potentially additional offices in Guadalajara and Monterrey.
- Developing and enhancing business to business connections between Mexico-based companies and companies operating in Phoenix.
- Fostering Phoenix business expansion connections for Mexico-based companies seeking growth opportunities in the United States.
- Identifying perspective Phoenix investments from Mexico-based investors seeking both development investment opportunities and business ventures in the United States.
Procurement Information
RFP-CED19-MTD, Mexico Trade Development Consulting Services, was issued on March 21, 2019 and conducted in accordance with Administrative Regulation 3.10. Five proposals were received; two of which were non-responsive. On May 24, 2019 an evaluation panel interviewed the three responsive proposers based on the published evaluation criteria (1,000 possible points):
- Approach to Scope (0-300 points).
- Primary Consultant’s Qualifications and Experience (0-250 points).
- Proposer’s Qualifications and Experience (0-250 points).
- Fee (0-200 points).
The scoring results were as follows:
- Molera Alvarez LLC: 915 points.
- Ballard Spahr LLP: 690 points.
- The Morris Group USA: 489 points.
On June 10, 2019, the City announced the evaluation panel’s recommended proposer. On June 17, 2019, the City received protests of the award recommendation from two unsuccessful proposers. On June 26, 2019, staff requested an extension to the then-current consulting services contract to allow services in the City’s Mexico trade offices to continue while the protest was processed. However, City Council opted to not extend the contract, and the City’s Mexico trade offices closed at the end of July. Also in July, the City rejected both protests: one lacked legal standing; and the other failed to establish a factual or legal basis to set aside the evaluation panel’s recommendation. Later that month, the City received an appeal from one of the protestors, which was subsequently forwarded to the State of Arizona’s Office of Administrative Hearings (OAH). On Sept. 16, 2019, the OAH issued a recommendation to dismiss the appeal and upheld the City’s actions.
Staff recommends the proposal offered by Molera Alvarez LLC as the highest-scored, responsive and responsible proposal.
Contract Term
If approved, the term of the contract is for two years, with three one-year options to extend, which may be exercised by the City Manager, or his designee.
Financial Impact
There is no impact to the General Fund. Funding for this two-year contract is $276,000 annually, for a total amount not to exceed, $552,000, and is available in the Downtown Community Reinvestment Fund.
Concurrence/Previous Council Action
On Oct. 22, 2013, City Council approved the Community and Economic Development Department's Mexico Trade and Investment Update, which included a request to issue an RFP to select a qualified firm specializing in international trade promotion and foreign direct investment to represent the City in Mexico in order to open a trade and investment office in early 2014.
On March 20, 2019, City Council authorized staff to issue an RFP for Mexico Trade Development Consulting Services to facilitate economic activity between Mexico and Phoenix.
On June 26, 2019 the City Council opted to not execute a short term extension of the then-current Mexico trade development representative consulting services contract.
Department
Responsible Department
This item is submitted by Assistant City Manager Deanna Jonovich and the Community and Economic Development Department.