DEPARTMENT: Aviation
DEPARTMENT HEAD: Russell J. Handy
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Authorization of an Agreement for Parking Consultant Services at the San Antonio International Airport
SUMMARY:
Ordinance authorizing a professional services agreement with Steer, Davies & Gleave, Inc. (Steer) for parking consulting services at the San Antonio International Airport. The contract value is in an amount not to exceed $378,590.00 and will be funded from the Aviation Department Operating and Maintenance Fund. The initial term of the agreement is three years with the option to extend for two, one-year periods.
BACKGROUND INFORMATION:
For several decades, the methods passengers used to travel to airports were static and limited to parking, public transportation or ground transportation options such as taxis, shuttles and buses. Revenues for airports from parking services usually were identified as the largest source of non-airline revenues. However, with the rapid rise and popularity of ride-share firms and the introduction of new and evolving disruptive transportation options as well as the customer’s expectations for more options and services, the Aviation Department requires a firm with extensive background in evaluating and recommending the parking and ground transportation options at the San Antonio International Airport. The firm will review existing parking and ground transportation options and provide technical assistance for an upcoming Parking and Ground Transportation Operator solicitation.
The scope of services needed by the Aviation Department includes:
• Reviewing the existing assessment(s) of current parking and ground transportation operations and provide recommendations to include (but not limited to) the following areas:
o Pricing and performance including the development of a pricing analysis model with the ability to test potential new pricing strategies
o Technology and Capabilities including online booking systems, yield management plan, data analytics tools, marketing plans, transportation network companies and other ground transportation management systems
o Organization and Strategy including evaluation of organizational and strategic changes needed for improved parking operations while providing increased customer service and maximizing revenues
• Assisting in the preparation and review of a written scope of service for the Operator solicitation that is appropriate to the airport’s current and future operating needs; incorporates current operating technologies and capabilities; provides for an enhanced customer service experience; and, maximizes revenues.
• Working with City staff to develop the Operator solicitation requirements to include, but not be limited to, evaluation criteria, scoring, pricing and questions related to the Respondents' experience and implementation/operations plan for the Airport.
• Assisting the City with negotiations of the Parking & Ground Transportation Operator contract.
• Providing the services in support of the selected Operator’s implementation plan, development of a performance evaluation process, review Operator’s written procedures and operations manual.
The selected firm will provide on-call services as needed.
ISSUE:
The Request For Qualifications was released on December 18, 2018. Five proposals were received on January 25, 2019. The evaluation committee reviewed and scored all five proposals based on the published criteria including experience, background and qualifications; proposed plan; price schedule; local preference program; and, veteran-owned small business preference program. The top two firms were selected for interviews. The two firms were scored based on the same published criteria and Steer, Davies & Gleave, Inc. (Steer) received the most points, 62.15, and was recommended for the contract award. Walter P. Moore and Associates, Inc. received 50.97 points and was not recommended.
Steer, Davies & Gleave, Inc.
Steer has provided similar consulting assistance with leading airports such as Hollywood-Burbank, Denver International, Los Angeles International, and Boston/Logan International as well as various airports in Europe. Services provided included operational evaluation and financial analyses of ground transportation and parking services resulting in recommendations regarding the design and implementation of innovative pricing and product strategies (including reservations, transaction-based pricing, and integration with other airport technologies). In addition, they have assisted in the selection of parking and ground transportation operators and implementation of change management plans to ensure a smooth transition with minimal impact on customer service and financial performance.
ALTERNATIVES:
City Council could request a new solicitation for this work. However, the solicitation was developed and released following the City’s Procurement Policies and Procedures Manual. The development of a new solicitation will take time and delay the development of the solicitation for a Parking & Ground Transportation Operator at the airport.
FISCAL IMPACT:
Ordinance authorizing a professional services agreement with Steer, Davies & Gleave, Inc. for parking consulting services at the San Antonio International Airport in the amount of $378,590.00 from the Aviation Department Operating and Maintenance Fund. The initial term of the agreement is three years with the option to extend for two, one-year periods.
Of the total contract value, $80,000.00 is budgeted in the FY 2019 Operating and Maintenance Fund. The remaining $298,590.00 will be contingent upon City Council appropriations in future fiscal years.
RECOMMENDATION:
Staff recommends authorizing a professional services agreement with Steer, Davies & Gleave, Inc. for parking consulting services at the San Antonio International Airport.