Title
Internal Vending Services for the City of Phoenix Aviation Department - AVN RCS 17-006 (Ordinance S-43852)
Description
Request to authorize the City Manager, or his designee, to enter into a concession agreement with Carpe Dulce, LLC for internal (employee) vending services at Phoenix Sky Harbor International Airport, Phoenix Deer Valley Airport, Phoenix Goodyear Airport, and other Aviation Department locations. The City Treasurer is authorized to accept and the City Controller is authorized to disburse any funds for purposes of this ordinance.
Report
Summary
Phoenix Sky Harbor International Airport is a 24-hour-a-day, seven-day-a-week operation with employees stationed throughout the airport and in several off-site buildings. These employees have limited access to food and beverage services that are offered in the terminal. The purpose of this internal vending services concession agreement is to provide employees access to packaged food and non-alcoholic beverages, snacks, and convenience meals at an initial 13 locations in non-public-facing areas, such as employee breakrooms. Vending services will be provided through vending machines and a micro-market located at the Aviation Corporate Office Building. Locations and services may be adjusted as necessary to meet the purpose of the agreement at the discretion of the Aviation Director. This will be a new concession agreement for the Aviation Department.
Procurement Information
Solicitation AVN RCS 17-006, Vending Services, was conducted in accordance with Administrative Regulation 3.10. Two responses were received on June 8, 2017; one from Carpe Dulce, LLC and one from Southern Energy Solutions Group, LLC. The responses were scored by an evaluation panel using the following criteria, along with a scoring range from 0 to 1,000 points:
A. Experience and Qualifications - 250 points
B. Concepts - 250 points
C. Management/Operations Plan - 250 points
D. Marketing Plan - 150 points
E. References - 100 points
The following is the result of the consensus scoring:
- Carpe Dulce, LLC 953
- Southern Energy Solutions Group, LLC 755
Contract Term
The initial term of the agreement is three years starting on or about Oct. 1, 2017, with two one-year options to extend the term at the discretion of the Aviation Director.
Financial Impact
The Aviation Department will receive 20 percent of the sales of pre-packaged snacks and bottled and canned beverages from vending units and 13 percent of the sales of food and beverage in the micro-market. Projected gross sales during the initial three-year term is $64,800 and an additional $43,200 if the options to extend are exercised.
Public Outreach
The business opportunity was advertised in the following publications or newsletters: The Airport Minority Advisory Council, Phoenix Sky Harbor website, Arizona Business Gazette, Arizona Informant, and Prensa Hispana. The announcement was also sent to more than 45 individuals from the Aviation Department's interest list and the City's Small Business Directory. A pre-response meeting was held on May 11, 2017 with representatives of four companies.
Location
Phoenix Sky Harbor International Airport is located at 3400 E. Sky Harbor Blvd.; Phoenix Deer Valley Airport is located at 702 W. Deer Valley Road; Phoenix Goodyear Airport is located at 1658 S. Litchfield Road, Goodyear; and other Aviation Department locations.
Council Districts: 1, 8, Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.