DEPARTMENT: Aviation
DEPARTMENT HEAD: Noel T. Jones
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Professional Services Agreement with Seabury Airline Planning Group
SUMMARY:
This Ordinance authorizes a professional service agreement with Seabury Airline Planning Group LLC (Seabury) in an amount not-to-exceed $650,000.00 for consultant services to provide domestic and international air service development services for the San Antonio International Airport for a three-year term with two, one-year renewal options. The Aviation Department has budgeted $130,000.00 for FY 2017 and will budget $130,000.00 for each subsequent fiscal year including any renewals.
BACKGROUND INFORMATION:
One of the key charges made to the Aviation Director is to provide expanded air service. Obtaining new service from carriers requires industry expertise and data analysis best provided through a consultant. Attracting new routes or airlines, or expanding current service, is often a multi-year effort of meetings and presentations by the airport to provide the airline with the case for coming to an airport. This professionally qualified firm will provide domestic and international Air Service Development and Airline Analysis services for the San Antonio International Airport and assist the Air Service Administrator in preparing for meetings and conferences with airlines.
In February 2016, City Council authorized a short-term professional services agreement with Seabury for the development of a five-year Air Service Strategic Plan for attracting and securing new domestic and international service. The Air Service Strategic Plan was a first for San Antonio International Airport.
With the strategic plan complete and the current contract with InterVISTAS expiring on September 30, 2016, the Aviation Department is seeking a new contract for air service consultant services that will assist the Aviation Department and stakeholders with the technical expertise and the implementation of the strategic plan as required. As part of the proposed new agreement, the new firm will:
• Develop City-Pair Target Market Analyses and Technical Presentations for Airline Meetings Held at Industry Conferences and Air Carrier Headquarters.
o The firm will assist the City by identifying the air carriers and underserved markets to be targeted for meetings. The firm will also assist the City in setting preparing for with the airline planners and route schedules for headquarter meetings.
o The firm will develop technical presentations for use by the City at airline-airport conferences. The presentation will include an analysis of supportable city-pair route analysis for the targeted route and supporting demographic and economic information.
o For meeting at airline’s headquarters, which are longer and more in-depth than the conference meetings, the firm will provide detailed route analysis and profit potential data for selected route(s); and, information regarding city-pair industry and economic synergies.
• Provide Catchment and Leakage Studies
o The firm will prepare detailed catchment and leakage analysis for several markets close to San Antonio and include recommended strategies to retain Bexar County and surrounding area passengers using another airport and attract new neighboring market passengers to use the San Antonio International Airport.
• AdHoc Airline consulting Services
o The firm will also provide technical analysis and reports or other on-call air service development initiatives as required by the Aviation Department.
Solicitation
On June 15, 2016, the City issued a Request for Proposals for these services. Three responsive proposals were received on July 15, 2016. An evaluation committee composed of two Aviation Department representatives and two outside representatives from the San Antonio Chamber of Commerce and Airport Advisory Commission. The committee scored the proposals on Experience, Background and Qualifications; Proposed Plan; Price; Local Preference Program; and, Veteran Owned Small Business Enterprise Program. Seabury received 79.29 points - 14.54 points above the second ranked firm.
Small Business Economic Development Advocacy Program
A waiver for the Small Business Economic Development Advocacy Program was issued for this contract as there are no commercially-useful subcontracting opportunities existing within the contract. The Local Preference Program was applied in the evaluation of responses received for this contract; however, none of the proposals were local businesses. The Veteran-Owned Small Business Preference Program was applied in the evaluation of responses received for this contract; however, none of the proposals are veteran-owned small businesses.
ISSUE:
The contract of a professional services agreement with Seabury is consistent with the City’s policy to employ consultant services to assist the City in air service development.
ALTERNATIVES:
The City could choose to release a new RFP for air service development consultancy services. However, releasing a new RFP for these services could delay the City’s current efforts to grow air service at San Antonio International Airport.
FISCAL IMPACT:
Funding in the amount of $130,000.00 is budgeted in the FY 2017 Aviation Budget and the Department will budget $130,000.00 for the subsequent fiscal years of the original term. Should the contract be renewed, the Department will budget $130,000.00 for each year.
RECOMMENDATION:
Staff recommends the approval of the professional services agreement with Seabury Airline Planning Group LLC for consultant services to provide domestic and international air service development services for the San Antonio International Airport.