Title
Baggage Handling System Operation, Maintenance and Repair Services RFP 19-008 - Amendment (Ordinance S-51490) - District 8
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Contract No. 149845 (Contract) with Daifuku Services America Corporation to extend the term of the Contract and add additional expenditures. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures will be up to $2,838,878.
Report
Summary
The Contract provides operation, maintenance, and repair services for the baggage handling system at Phoenix Sky Harbor International Airport (PHX), which is critical to PHX operations to ensure all checked baggage are efficiently and securely processed and arrive at the airline's designated bag makeup location.
On Feb. 26, 2024, a Request for Proposal (RFP 24-0156) was issued for Baggage Handling Systems - Operations, Maintenance, Repair, and Controls System Design, Programming and Integration Services. Two proposals were received and evaluated by the evaluation panel. The Public Notice of Award Recommendation was posted on Aug. 15, 2024. In response to the notice, the Aviation Department has received several public records requests and communications from the proposers that have required responses, research, and other actions, which resulted in delays in the procurement process. A protest to the Award Recommendation was received on Nov. 7, 2024. An extension is essential to allow sufficient time to address the protest and to facilitate a seamless transition for award of the new contract while continuing to maintain these critical services.
Contract Term
The term of the Contract will be extended through Oct. 31, 2025.
Financial Impact
A total of $2,838,878 in additional funds for a total Contract value up to $19,338,878 through Oct. 31, 2025. Funds are available in the Aviation Department’s budget.
Concurrence/Previous Council Action
The City Council previously reviewed this request:
- Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 (Ordinance S-45631) on May 15, 2019;
- Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-50390) on Dec. 6, 2023;
- Baggage Handling System Operation, Maintenance and Repair Services - RFP 19-008 - Amendment (Ordinance S-50997) on June 12, 2024.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Aviation Department.