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AI# 11815  Regular City Council Meeting 6.22. 08/22/2023:

Information

Agenda Item

Resolution - Aviation: Consider a resolution authorizing the Mayor to execute Contract 17096, with SSP America, Inc., for the Food, Beverage, and Retail Sales Concessions at the Lubbock Preston Smith International Airport.

Item Summary

The Airport is seeking a concession program with a variety of popular food and beverage product selections that will be well received by passengers and other airport users. The concessions will include a full-service restaurant/bar, food court area with multiple food and beverage options, coffee shop, retail gift shop, and vending and/or unmanned kiosks.             In response to RFP 23-17096-MA, proposals were received by 4 vendors. An evaluation committee independently reviewed the proposals based on the following criteria: Experience and Qualifications - 25 points, Customer Goals and Operations Plan - 15 points, Proposed Concession Fees - 25 points, Facility Design and Quality of Improvements - 25 points, and Airport Concessions Disadvantaged Business Enterprise Participation - 10 points. The proposals were ranked as follows.             Company Points SSP America, Inc., Ashburn, Virginia 89.5 HMS Host, Bethesda, Massachusetts 79.0 Tailwind Hospitality, Inc., Wilmington, North Carolina 69.0 Oakwells, Winter Park, Florida 61.0   Airport staff and the Airport Advisory Board recommend contract award to the highest-ranking proposer, SSP America, Inc. of Ashburn, Virginia.  The term is for 10 years with one additional 5-year option. SSP America, Inc. will spend $1,985,000 in initial capital investment with 20% funding from the Joint Venture Partner and 10% from Paint Rock Coffee, LLC.   Lessee agrees to spend an additional $198,500 in midterm refurbishment between Agreement Years 7 and 8. This additional funding may be used to upgrade facilities in the operated premises, provide additional facilities, or change existing facilities if necessary. Lessee agrees to supply Lessor with the breakout of estimated capital expenditures that will make up the total capital investment.

Fiscal Impact

Lessee agrees to pay 14% of all gross sales and rent for the square footage of exclusive office space. The rental rate will be equal to the terminal rental rate paid by the airlines and as adjusted annually by the City.

Staff/Board Recommending

Bill Howerton, Deputy City Manager Kelly Campbell, Executive Director of Aviation Airport Advisory Board

Attachments SSP Resolution SSP Agreement Project Summary

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