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RCS-26-0041

TERMINAL 3 NORTH 2 CONCOURSE RETAIL

CONCESSIONS

City of Phoenix

Aviation

2485 East Buckeye Road

Phoenix, AZ

85034

RELEASE DATE: June 5, 2026

DEADLINE FOR QUESTIONS: June 30, 2026

RESPONSE DEADLINE: September 2, 2026, 11:00 am

City of Phoenix undefined

RCS-26-0041

Terminal 3 North 2 Concourse Retail Concessions

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6. Determination of Responsiveness and Responsibility and Evaluation . Error! Bookmark not defined.

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10. Insurance Requirements .................................................. Error! Bookmark not defined.

Attachments:

A - A - Draft Lease - Package 1

B - B - Draft Lease - Package 2

C - C - Premises - Package 1

D - D - Premises - Package 2

E - E - Respondent Package Preference

F - F - ACDBE-N Concession RCS Clause - Pre-Award (Rev. 7.23.26)

G - G - EO1-200 - Statement of Outreach Commitment

H - H - EO2-200 - Small Business Outreach and Participants List

I - I - EO3-200 - Small Business Utilization Commitment

J - J - ACDBE-N Concession Lease Clause - Post-Award

K - K - Letter of Declaration (Equal Pay)

L - L - Affidavit

M - M - Letter of Credit Form

N - N - Cash Deposit for Performance Guarantee

O - O - Portable Interim Concession Unit Locations undefined #RCS-26-0041 Title: Terminal 3 North 2 Concourse Retail Concessions

P - P - Concessions Operating and Service Standards

Q - Q - Proposed Capital Investment

R - R - Tenant Design Criteria

S - S - Tenant Design Criteria - Lease Outline Drawings

T - T - Tenant Design Criteria - Exhibits

U - U - Storage Space

V - V - Conflict of Interest and Solicitation Transparency Disclosure

W - W - Respondent References

X - X - Phoenix City Code Sections 18-413, 414, and 415 Compliance - Heat Safety Compliance

Y - Y - Insurance Requirements

Z - Z - Retail Concept Description

AA - AA - Qualifications and Experience of Respondent's On-Site Manager

BB - BB - Respondent's Qualifications and Experience

CC - CC - Contact Information for Locations Provided in BB

DD - DD - Respondent's Experience Managing and Operating a Variety of Concepts

EE - EE - Experience of Respondent and Respondent's Subtenant and, or JV Partner with

Proposed Concept

FF - FF - Pro Forma Financial Statements

GG - GG - Assumptions

HH - HH - Supplement Terms and Conditions to All Airport Contracts Revised 042926

II - II - Compliance with Environmental Laws Revised July 9, 2025

1. Introduction

1.1. Contact Information

Annie Sleeper

Aviation

Email: annie.sleeper@phoenix.gov

Phone: (602) 273-4389

1.2. Schedule of Events

The City reserves the right to change dates, times, and locations, as necessary. The City does not always hold a Pre-Offer Conference or Site Visit. All times in the Schedule of Events are

Local Phoenix, AZ Time.

To request a reasonable accommodation or alternative format for any public meeting, please contact the Procurement Officer (Annie Sleeper) at (602) 273-4389/Voice or 711/TTY, or annie.sleeper@phoenix.gov, no later than two (2) weeks prior to the meeting.

Solicitation Issue Date: June 5, 2026

Pre-Offer Conference (Non-Mandatory): June 18, 2026, 3:00pm

**Please RSVP/Register for the meeting at:

https://cityofphoenix.webex.com/weblink/reg ister/r545ac9be99c0f3cc0d0d3caa1f6068ab

For any issues registering or signing into the

Pre-Offer Conference, please contact busopps.aviation@phoenix.gov or 602-273-

3390.

In Person:

Aviation Headquarters: 2485 E. Buckeye

Rd. Phoenix, AZ 85034

Written Inquiries Due Date: June 30, 2026, 11:00am https://cityofphoenix.webex.com/weblink/register/r545ac9be99c0f3cc0d0d3caa1f6068ab https://cityofphoenix.webex.com/weblink/register/r545ac9be99c0f3cc0d0d3caa1f6068ab mailto:busopps.aviation@phoenix.gov

Offer Due Date: September 2, 2026, 11:00am

Join Online:

https://cityofphoenix.webex.com/cityofphoen ix/j.php?MTID=mb12bf24b5cf098cb6b0beb

31ffcd746f

Join by phone

+1-415-655-0001 US Toll

Access code: 2336 372 5421

Evaluation (Tentative): November and December 2026

Council Award (Tentative): April 2027

** Please Note: Attendees of the Pre-Offer Conference may attend in person at the Aviation

Headquarters or virtually via WebEx. Registration or RSVP to participate in the Pre-Offer

Conference is required to obtain the Pre-Offer Conference information. A Respondent who wishes to join the Pre-Offer Conference for this solicitation is required to register using the weblink or access code provided prior to the meeting. Upon completion of registration, the Pre-

Offer Conference information will be forwarded to the registered email address.

1.3. Introduction

The City of Phoenix (City) Aviation Department (Aviation) is seeking responses from qualified

Respondents to operate and manage Retail concession spaces in the Terminal 3 North 2

Concourse (T3N2) at Phoenix Sky Harbor International Airport (Airport or PHX).

The available Retail concession spaces are:

• Package 1: News, Gift, and Convenience Store – 3,202 square feet in N2-R1

• Package 2: Specialty Retail Boutique-Style Store – 1,198 square feet in N2-R2

The Successful Respondents will enter into a Concession Lease Agreement (Lease) with the

City. Copies of the draft Leases are attached as Attachment A (Package 1) and Attachment

B (Package 2). The Premises, identified in Attachment C (Package 1) and Attachment D

(Package 2), will be developed, operated, and managed by the Successful Respondents.

There are two (2) Retail concession contracting opportunities in this Revenue Contract

Solicitation (RCS). Respondents may submit responses for one or both Retail Packages;

however, Respondents will only be awarded one (1) Package. The City may consider awarding both Packages to the same Respondent if that Respondent is the only one who submitted a

Response for both Packages; the other Responses received are deemed non-responsive and/or non-responsible; or if the City deems it to be in the City’s best interest.

https://cityofphoenix.webex.com/cityofphoenix/j.php?MTID=mb12bf24b5cf098cb6b0beb31ffcd746f https://cityofphoenix.webex.com/cityofphoenix/j.php?MTID=mb12bf24b5cf098cb6b0beb31ffcd746f https://cityofphoenix.webex.com/cityofphoenix/j.php?MTID=mb12bf24b5cf098cb6b0beb31ffcd746f

Respondents submitting Responses for both Packages may indicate which Package they would prefer to be awarded. See Attachment E. The City will take this preference into consideration if a Respondent receives the highest evaluated score for both Packages; however, the City will award this highest scoring Respondent the Package the City deems to best meet the City’s needs. The second highest scoring Respondent for the other Package will be awarded that

Package.

The City encourages competition in all of its solicitations. The City’s desired outcomes from this solicitation process are to:

• Provide passengers with modern urban retail concepts that incorporate themes showcasing local culture and feature a mix of national, regional, and local brands, addressing Airport consumer needs and preferences, and reflecting current trends over the term of the Lease.

• Optimize sales and rental revenues over the term of the Lease.

• Design, build-out and execute a retail unit by the Successful Respondent that creates a distinctive sense of place and an open, welcoming space.

• Incorporate technology or innovative service concepts to enhance service offerings and the passenger experiences.

• Foster competition while increasing the opportunity for local and small business participation.

• Elevate the quality and uniqueness of souvenir, gift, and retail merchandise offerings and reflect current airport retail market trends.

• Demonstrate support of Airport initiatives such as Sustainability programs, concession marketing programs, and customer experience programs.

• Select Respondents, including their subtenant and/or joint venture partner(s) (if any), who have experience in the successful operation of airport retail concepts.

• Select Respondents based on the entire Response, not solely based on the highest projected gross sales and/or rental revenues.

• Select Respondents based on a number of factors including Respondents’ ability to provide the highest quality customer service, goods, and convenience to the traveling public, in addition to the expectation of rental revenues.

Selection will be based on the entire Response and the Evaluation Criteria and will not be solely based upon the highest financial return to the City. All Respondents must demonstrate not only airport retail concessions experience and financial capability, but also creativity in proposing

T3N2 retail concepts that will enhance the customer experience.

To support a quality and productive workplace for the airport concession workforce, it is important to the City that the concessionaires offer access to affordable, quality health insurance, competitive wages, and safe working conditions.

1.4. Background

Phoenix Sky Harbor International Airport is among the busiest airports in the United States, serving more than 142,000 passengers daily, with over 1,300 flights per day by 25 airlines with nonstop air service to over 140 destinations.

As passenger volumes continue to rise, the Airport must expand its facilities and concession offerings to meet growing demand. A new six-gate concourse is under construction at Terminal

3 (T3 N2 Concourse) and is expected to be operational in 2027. Additional retail concessions will be needed to serve these passengers.

Recent performance data supports the need for additional retail shopping options in Terminal 3.

Since 2022, PHX has experienced a steady increase in both passenger enplanements and concessions gross sales as PHX recovered from the pandemic. According to available data, Terminal 3 passenger enplanements grew by approximately 22% from 2022 to 2025, reaching a total of 6,257,980 in 2025. This increase in passenger traffic boosted retail concession sales, with gross sales increasing by 11% during the same period. In 2025, total concessions for

Terminal 3 reported gross sales generated over $88 million, demonstrating a strong post-pandemic recovery and increased passenger spending.

As the Airport continues to focus on enhancing the passenger experience, these statistics underscore the positive correlation between rising enplanements and increased revenue from airport concessions. The Airport anticipates a 2.5% passenger growth as new facilities, including a new expanded concourse in Terminal 3, and additional retail shopping options, are expected to be operational in the coming years.

T3 Gross Sales and T3 enplaned passengers by airline and calendar year are shown in the tables below.

TERMINAL 3 GROSS SALES

Category CY 2022 CY 2023 CY 2024 CY 2025

Retail $29,160,388 $33,906,212 $31,892,039 $32,402,079

TERMINAL 3 ENPLANED PASSENGERS BY AIRLINE

AIRLINE CY 2022 CY 2023 CY 2024 CY 2025

Advanced

Airlines

2,012 4,467 5,703 6,752

Air Canada 132,264 164,524 177,465 144,379

Alaska Airlines 725,970 768,017 777,471 871,874

Allegiant

Airlines

45,255 58,392 62,657 56,502

Boutique Air 3,260 - - -

Breeze Airways 1,531 54,245 44,160 46,974

Contour Airlines 9,447 9,299 12,334 -

Delta Air Lines 1,628,335 1,836,447 1,870,472 1,819,323

Denver Air

Connection

5,019 8,412 8,276 7,423

Frontier Airlines 706,130 1,288,731 1,444,256 1,201,729

Hawaiian

Airlines

91,847 98,144 103,951 98,966

JetBlue Airways 158,155 132,304 133,487 155,268

Porter Airlines - - 10,324 35,737

Southern

Airways

Express

- 4,491 3,110 1,088

Spirit Airlines 204,764 303,079 188,195 69,365

Sun Country Air 131,865 136,958 145,825 138,388

United Airlines 1,301,836 1,463,438 1,597,278 1,604,212

TOTAL 5,147,690 6,330,948 6,584,964 6,257,980

T3 currently has eleven (11) active retail concessions listed in the chart below.

CURRENT TERMINAL 3 RETAIL CATEGORIES BY LOCATION

Number of Stores Retail Category Concourse Locations

4 News, Gift, and Convenience

North Concourse

South Concourse

Lobby

Specialty Retail: Clothing, Travel Essentials, Tech

E Gates

F Gates

Lobby

More PHX statistics are available at https://www.skyharbor.com/About/Information/AirportStatistics.

The City makes no representation or warranties, expressed or implied, as to the accuracy or relevancy of the statistical data. The Respondent assumes all risk associated with using the data, including its accuracy, relevance, and/or materiality to the formulation of its Response.

1.5. Definitions

The following definitions apply to this RCS. There are additional definitions in the attachments, exhibits and appendices. If there is a conflict between these definitions and the definitions in the attachments, exhibits and appendices then the definitions in the attachments, exhibits, and appendices govern those documents.

AGGRIEVED PARTY means a person or a business that intends a Response that alleges a mistake, impropriety or defect in the solicitation will harm the person or business.

AIRPORT means Phoenix Sky Harbor International Airport, Phoenix Deer Valley Airport and/or

Phoenix Goodyear Airport, in accordance with the context of the contract.

CONTRACT includes any and all City of Aviation Department contracts, subcontracts, agreements, leases, subleases, licenses, permits, concessions or other documents, however denominated that grant or convey a right or privilege on an Airport.

DAYS means calendar days, except as otherwise expressly provided in this RCS.

DISCUSSIONS means an exchange between the Procurement Officer and one or more

Respondents submitting Responses determined to be Reasonably Susceptible Responses.

GOOD CAUSE means substantial grounds or evidence based upon facts not in dispute as determined by the Procurement Officer that the failure by an aggrieved party or a Respondent to submit a timely Response, protest or appeal was beyond its control due to misinformation relayed in writing by a city employee.

JOINT VENTURE (JV) means an association between two or more persons, partnerships, corporations, or any combination thereof, formed to carry on a single business activity. The JV is limited in scope and duration to this Contract. The resources assets, and labor of the participants must be combined in an effort to accrue profit.

https://www.skyharbor.com/About/Information/AirportStatistics http://phxskyharbor.com/about/AirportStats.html

LEASE is a written agreement with the City to conduct business on City property.

LICENSE means a document granting permission to do a specific act or acts.

LICENSEE means a person or entity that has been granted limited rights or permissions by a licensor in the form of a license.

REASONABLY SUSCEPTIBLE RESPONSE means a Response that, based on the evaluation criteria, has a substantial chance of resulting in a Lease award.

RESPONDENT/OFFEROR means an individual, partnership, JV, corporation or firm that submits a Response to the City to perform services requested by a RCS.

RESPONSE/OFFER means a written response to this Revenue Contract Solicitation.

RESPONSIBLE means to be fully capable of meeting all of the requirements of the solicitation, including possessing the capacity, operational and financial capability, and integrity to perform as contractually required.

RESPONSIVE means an offer or Response that on its face satisfies all material requirements of the solicitation.

REVENUE CONTRACT SOLICITATION (RCS) A solicitation for revenue contracts, including all amendments or supplements thereto.

SUBCONTRACTOR means an individual, partnership, JV, corporation or firm that holds a contract at any tier below the Lease, including a vendor under a purchase order.

SUBTENANT a person or entity that leases property from Respondent.

SUCCESSFUL RESPONDENT means an individual, corporation, firm or JV that has been selected by the City to perform services requested by a RCS.

VENDOR means a seller of goods or services.

1.6. Minimum Qualifications

Each Respondent must submit documentation in its Response to demonstrate it meets the required minimum qualifications and include all information requested in this section or the

Response will be rejected as non-responsive. The City of Aviation Department reserves the sole right to determine if Respondents meet the minimum qualifications.

A. Respondent must have a minimum of three (3) or more continuous years in the last five

(5) years of ownership or executive management of a Retail business operation in an airport with active involvement in the day-to-day management of the retail business operation (qualifying business). Executive management is defined as the president, vice president, officer (including chief operating officer, chief executive officer, and chief financial officer), majority owner or stockholder, joint venture partner, managing partner, controlling partner, controlling owner or any individuals with authority to make decisions on behalf of an organization that will impact the overall direction of the organization. If

Respondent is a newly formed entity, Respondent must demonstrate that owners, which may include JV partners, of Respondent who, in the aggregate, own 51% or more of the entity each satisfies this experience requirement.

B. Respondent’s qualifying business must have achieved minimum gross sales of $2.5 million dollars for one (1) of the last five (5) years.

C. Respondent must include a Sustainability Program for the proposed concessions that is consistent with the goals of the Aviation Department’s Sustainability and Resiliency

Management Plan (SRMP) and describes how the Respondent will assist Aviation in meeting its sustainability goals. See Section 4.2. – Delivery of Responses. Aviation’s goals are highlighted in the Aviation Department’s Sustainability Focus (ASF) document available on Aviation’s website at https://www.skyharbor.com/about/Sustainability.

Respondents who do not meet the minimum qualifications are encouraged to joint venture partner or sublease with more established firm(s).

1.7. Good Standing

Any Respondent and Partners, as defined in the Response Limitation to this RCS section, that currently contracts with the City must be in good standing for its Response to be considered responsive. For purposes of this RCS, good standing refers to compliance with all contractual provisions, including payment of financial obligations.

1.8. Outreach Requirements

A. Phoenix Sky Harbor International Airport has a national market for small business participation. The City has implemented outreach requirements for this RCS and Lease.

To facilitate this, the City requires outreach to small businesses. Specifically, each

Respondent must:

1. Identify small-business-participation opportunities, including Commercially Useful

Functions (CUF);

2. Actively solicit proposals from small businesses;

3. Evaluate small-business proposals; and

4. Communicate selection decisions to small businesses, including each rejection of a small-business proposal.

B. Successful Respondents must fulfill all required small business outreach requirements and submit all required outreach effort documentation at the time of submittal and on an annual basis.

C. To be considered for a Lease, each Respondent must conduct and document Small

Business Outreach Efforts in compliance with the Airport Concession Disadvantaged

Business Enterprise-Neutral (ACDBE-N) Concession Revenue Contract Solicitation

(RCS) Clause Pre-Award (Attachment F) and the USDOT 49 C.F.R. Part 23. Although https://www.skyharbor.com/about/Sustainability there are no ACDBE or small business participation goals set for this lease, the City strongly encourages each Respondent to utilize small businesses in its response. The

Small Business Outreach forms, EO1-200 - Statement of Outreach Commitment, EO2-

200 - Small Business Outreach Efforts and Participants Lists, and EO3-200 - Small

Business Utilization Commitment, marked in Attachment G, Attachment H, and

Attachment I, are due at the time of submittal. The Successful Respondent must fulfill all required small business outreach requirements and submit all required outreach effort documentation on an annual basis in compliance with the ACDBE-N Concession

Lease Clause Post Award (Attachment J).

1.9. Equal Pay Requirements

In 2015, Phoenix City Council amended Phoenix City Code Section IV, Article V, 18-21 Equal

Opportunity Requirements, known as the Equal Pay Act, to define expectations of all lessees with the City of Phoenix. Attachment K details the Act, as well as Federal and State provisions.

As part of the Response for this RCS, Respondents are required to provide information on how they support, communicate, ensure and comply with these requirements, in as much detail as possible.

1.10. Lease Term and Contractual Relationship

The information in this RCS is not intended to completely define the proposed contractual relationship to be entered into by the City and the Successful Respondent. The Lease terms may be amended at the sole discretion of the City at any time during the RCS process and/or prior to execution of the Lease.

The Lease will be effective upon the date of execution by the City (Effective Date). The Initial

Term of the Lease will begin on the Effective Date and continue for twelve (12) months. The

Primary Term of the Lease will start on twelve (12) months from the Effective Date. The

Primary Term of the Lease will be for twelve (12) years, with no options to extend.

Respondents are advised to read the draft Leases included as Attachment A and Attachment

B, to which the Successful Respondent and its Partners, as defined in the Response Limitation to this RCS section, shall be bound. See Attachment L – Affidavit, Paragraph 12 of

Assurances.

This RCS is for a non-exclusive Lease(s) with the City. The City will not enter into an exclusive

Lease with a Successful Respondent. At any time, the City has the right to award Leases to other operators for retail concessions in operation at the Airport and/or future retail concessions that may be located within the existing locations or in later additions to locations throughout the

Airport.

1.11. Execution of the Lease

The City will send the final Lease to the recommended Respondents after Phoenix City Council approves the Award Recommendation. Within 30 days from the date the Lease was sent, the recommended Respondent must sign and submit the final Lease to the City. The City may request City Council approval to award the Lease to the next highest qualified Respondent in the event the City does not receive the signed Lease and all other required documentation from the recommended Respondent within 30 days. The Lease terms may be amended at the sole discretion of the City at any time during the RCS process and/or prior to execution.

If the recommended Respondent is subject to regulation by the Arizona Corporation

Commission (ACC), it must be authorized to transact business in Arizona and be in good standing with the ACC at the time it signs the Lease.

1.12. Guarantee Instruments

A. Response Guarantee: Each response must be accompanied by a Response Guarantee in the form of a cashier’s check payable, without condition or restrictive endorsement, to the “City of Phoenix”. The Response Guarantee amounts are as follows:

o For Package 1 – News, Gift, and Convenience Store, a ten-thousand-dollar

($10,000.00 USD) Response Guarantee check.

o For Package 2 – Specialty Retail Boutique-Style Store, a ten-thousand-dollar

($10,000.00 USD) Response Guarantee check.

If a Respondent submits a response for both packages, a Response Guarantee must be submitted for each package. Each Respondent’s Response Guarantee must be submitted in a separate sealed envelope clearly marked “Response Guarantee”.

1. Response Guarantees submitted by unsuccessful Respondents, including

Respondents whose submittals were deemed non-responsive, will be returned, without interest, immediately after formal award of the Lease has been made by the

Phoenix City Council or after all responses have been rejected by the City.

2. The Response Guarantee of the Successful Respondent will be returned, without interest, immediately after Successful Respondent has furnished the City with the

Performance Guarantee instruments and insurance policies required by the Lease.

Should the Successful Respondent fail to execute the Lease or furnish the

Performance Guarantee instruments or insurance within 30 days from the date the

Lease was sent, then the Successful Respondent’s Response Guarantee will be forfeited as liquidated damages.

B. Performance Guarantee: Prior to execution of the Lease, the Successful Respondents will be required to post and maintain with the City a Performance Guarantee in the form of a Letter of Credit (LOC) or a Cash Deposit. The Performance Guarantee amounts are as follows:

o For Package 1 – News, Gift, and Convenience Store will be calculated based on the square footage of the concession location Premises multiplied by the then Airport

Terminal Rental Rate authorized by Phoenix City Code, subject to annual adjustments.

o For Package 2 – Specialty Retail Boutique-Style Store will be calculated based on the square footage of the concession location Premises multiplied by the then Airport

Terminal Rental Rate authorized by Phoenix City Code, subject to annual adjustments.

The LOC shall be in the form provided in Attachment M. The Cash Deposit shall be submitted in the form provided in Attachment N.

1. Adjustments to Performance Guarantee: City may increase the amount of the

Performance Guarantee from time to time so that it is equal to or greater than an amount equal to six (6) months of rent based on the average monthly rent paid during the immediately preceding 12-month period. City may increase the amount of the Performance Guarantee by giving the Successful Respondent at least thirty (30) days prior notice of the amount of the increase. The amount of the Performance

Guarantee may be increased for any reason the City deems appropriate, including

(1) an increase of the Successful Respondent’s financial obligations under the

Lease, (2) Successful Respondent's failure to pay any rent, Additional Payment, or any other amount when due, or (3) Successful Respondent’s financial condition changes to the extent that City is concerned about Successful Respondent’s ability to perform under the Lease. Successful Respondent shall pay to City the additional amount necessary to increase the Performance Guarantee upon notice from City.

2. Letter of Credit or Cash: If the Performance Guarantee is in the form of an irrevocable standby Letter of Credit (LOC), then the Successful Respondent shall use the City’s LOC form, attached hereto and marked Attachment M. The LOC shall be issued by either: (1) a financial institution with counters in the Phoenix metropolitan area at which the City may make draws on the LOC; or (2) a financial institution with headquarters in the United States on which City a) may make telefacsimile draw, or other electronic submission, of draws and b) shall receive electronic notifications in the event there are problems with a draw request. Unless

City receives a written extension of the LOC in a form acceptable to City at least sixty

(60) days before the end of the term of the LOC, City, without notice to Successful

Respondent, may draw upon the full amount of the LOC and retain all proceeds as a cash performance guarantee. Any changes to the LOC required provisions must be approved in advance by the Aviation Director. If the Performance Guarantee is in the form of cash, Successful Respondent shall deliver to City a completed Cash

Deposit for Performance Guarantee Form attached hereto and marked Attachment

N.

3. Duty to Restore: The Performance Guarantee ensures the full and timely performance by Successful Respondent of all its obligations under the Lease and is security for payment by Successful Respondent of all claims by City. City may draw on or make a claim against the Performance Guarantee if Successful Respondent breaches or fails to perform under the Lease. If City draws on or makes a claim against the Performance Guarantee, then Successful Respondent, upon demand from City, shall replenish the Performance Guarantee to its previous amount within thirty (30) days of City’s draw or claim.

4. Return: After the expiration or earlier termination of the Lease, City will return the

Performance Guarantee to the Successful Respondent less any Fees, Additional

Payment, or any other amount due to City.

C. Employee Fidelity Bond: Upon execution of the Lease, the Successful Respondent will be required to post and maintain with the City a bond covering employees required to handle money in the amount of ten-thousand-dollars ($10,000.00 USD).

1.13. Pre-Offer Conference

Respondents are strongly encouraged to attend the Pre-Offer Conference. Respondents may attend in person at the Aviation Headquarters or virtually via WebEx. See Section 1.2 –

Schedule of Events for the date, time, and address or meeting link.

To request a reasonable accommodation, please contact the Procurement Officer, no later than fourteen (14) calendar days prior to the date and time listed in the Schedule of Events.

A web-based virtual reality integration video of the T3N2 Concourse is available at: https://vr.yulio.com/HCZnMFhoRi. The designs, layouts, and information in the video is for general informational purposes only. The City makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability or completeness of any information in the video. The Respondent assumes all risk associated with using the information, including its accuracy, relevance, and/or materiality to the formulation of its

Response.

1.14. Questions and Answers (Q&A) Process

Respondents are strongly encouraged to read this RCS in its entirety, including all attachments, exhibits and appendices. Failure to read and/or understand any portion of this RCS shall not be cause for waiver of any portion of the RCS or subsequent Lease.

If Respondents discover any mistakes, improprieties or defects, they should submit a report of any mistakes, improprieties or defects in writing to the Procurement Officer no later than the question deadline listed in the Schedule of Events.

Respondents and their Partners, as defined in the Response Limitation to this RCS section are encouraged to submit questions as a team rather than individually to avoid submitting repetitive questions, which will allow Aviation to answer all questions more efficiently.

All questions about this RCS, including the draft Lease, should be submitted in the City’s

Procurement Portal and must be received by the due date indicated in the Schedule of Events.

All written questions will be responded to in writing and available at the City's Procurement

Portal.

https://vr.yulio.com/HCZnMFhoRi

1.15. Addendum to the RCS

Aviation may amend this RCS before or after the solicitation deadline listed in the Schedule of

Events. Changes to this RCS will be in writing as an addendum and posted at the City's

Procurement Portal. Respondents are responsible for checking the website and reviewing all updates and postings.

Respondents may not rely on any statement by any City employee, consultant or official regarding this RCS unless the statement made is published as an addendum or confirmed in writing as part of the Q&A process.

1.16. Respondent Exceptions

The City will award the Lease on a fair and competitive basis and will not accept any changes to the material provisions or requirements of this RCS or Lease. Respondents that take exception to, add to, or subtract from any material provision or requirement of this RCS or Lease may be considered as attempting to change the provisions or requirements of this RCS to gain an unfair advantage over other Respondents. Responses including such exceptions or changes, or that are conditional, are subject to rejection as non-responsive Responses. Non-material exceptions or changes will only be considered if approved by the City during the Q&A process.

NO NEW EXCEPTIONS OR CHANGES TO THE RCS OR THE LEASE WILL BE

CONSIDERED AFTER THE Q&A PROCESS.

1.17. Airport Security

Individuals assigned to work at PHX as a result of this RCS must pass a fingerprint-based

Criminal History Records Check, pass a Federally-mandated Security Threat Assessment, and obtain an Aviation-issued security credential or badge.

Successful Respondents must comply with all airport security requirements. Visit:

https://www.skyharbor.com/airport-business/security-badging/ for current information and https://www.skyharbor.com/airport-business/phx-information/rules-regulations/ for current

Airport Rules and Regulations.

1.18. Exclusive Beverage Rights

The City reserves the right to enter into an exclusive beverage pouring rights agreement. The

City retains sole authority to solicit and execute product advertising and sponsorship agreements for non-alcoholic beverages, including but not limited to carbonated beverages, sports drinks, juices, and bottled water, within Airport facilities.

If the City elects to issue a solicitation for exclusive beverage pouring rights, the City will provide the Successful Respondent with a minimum of twelve (12) months’ advance written notice prior to issuing such solicitation. Upon this notice, the City agrees to engage with the Successful

Respondent to obtain input regarding operational considerations and implementation of exclusive beverage arrangements. The Successful Respondent agrees to cooperate with and assist the City, as necessary, in implementing such exclusive agreements.

https://www.skyharbor.com/airport-business/security-badging/ https://www.skyharbor.com/airport-business/phx-information/rules-regulations/

1.19. Consolidated Receiving and Distribution Center (CRDC)

The City reserves the right to develop, construct, and operate a Consolidated Receiving and

Distribution Center (CRDC) during the term of this Lease. A CRDC is a centralized facility on the airport for receiving, screening, sorting, storing, and securely distributing retail goods and supplies, and food and beverage goods and supplies to various airport concession units at the

Airport. The City agrees to provide the Successful Respondent with a minimum of two (2) years’ advance written notice of intent to develop a CRDC prior to commencing facility construction.

Additionally, the City will provide the Successful Respondent with a minimum of one (1) year advance written notice of its intent to solicit CRDC logistics management services prior to issuing such solicitation. During the CRDC planning and development process, the City agrees to engage with the Successful Respondent to gather input regarding facility operational requirements; however, the City retains final decision-making authority for all aspects of CRDC development. Should the City implement CRDC operations, the Successful Respondent, along with the Successful Respondent’s joint venture partners, subcontractors, and authorized vendors, will be required to utilize this facility and all costs associated with CRDC operations will be allocated to the Successful Respondent in accordance with terms established by the City.

1.20. Commercial Delivery on the Airfield

Due to various height restrictions (13’) based on delivery locations, the City reserves the right to regulate and approve all commercial delivery vehicles to be used on the airfield. This includes the Successful Respondent and/or joint venture partner(s) and all of their authorized vendors.

Only badged drivers with the required airport insurance limits have to be escorted by concessionaire personnel when accessing the airfield or sterile areas. All products/equipment must be readily accessible for visual inspection by security team members at the gate for entry to the airfield.

1.21. Response Limitation to this RCS

Respondents may submit only one (1) Response per Package for this RCS. Multiple Responses are prohibited. The following shall be deemed Multiple Responses.

• The City receives more than one (1) Response for a Package from a Respondent.

• The City receives one (1) Response from a Respondent and one (1) or more Responses for a Package from any entity or person affiliated with the Respondent.

If Multiple Responses for any single package are received from a Respondent, all Responses from that Respondent shall be deemed non-responsive and rejected.

Respondent and an entity or person affiliated with the Respondent (Partner) include:

• A parent and its subsidiary.

• A holding company and its constituent company.

• Constituent companies of a single common holding company.

• Subsidiaries of a common parent.

• A limited liability company and a member or manager of the limited liability company.

• Limited liability companies with common members or managers.

• A partnership and one of its partners, or multiple partners in a single partnership.

• A person or entity proposing as a joint venture partner, joint venture, or subtenant on separate Responses.

• A person or entity proposing as a prime or sole Respondent also proposing as a joint venture partner or subtenant on a separate Response.

• A person or entity proposing as a subtenant on separate Responses.

• Two or more Respondents where the president, vice president, officer (including chief operating officer, chief executive officer, and chief financial officer), agent, majority owner or stockholder, management employee, managing or controlling partner, or controlling owner of one Respondent is also the president, vice president, officer

(including chief operating officer, chief executive officer, and chief financial officer), agent, majority owner or stockholder, management employee, managing partner, or controlling owner of any other Respondent.

It is the intent of the City that this prohibition applies regardless of whether the affiliated person or entity submits a response independently or as a partner or subtenant of a joint venture or other partnership.

The prohibition on Multiple Responses does not preclude a person or entity from participating on more than one Response as a licensee or vendor only, or submitting a Response as a

Respondent and participating as a licensee or vendor on a different Respondent’s team.

CONTINGENT RESPONSES WILL BE REJECTED.

2. Scope of Work

2.1. Retail Concept Requirements

The Successful Respondents shall have a non-exclusive right to install appropriate improvements in accordance with the Lease (Attachment A and Attachment B). The

Successful Respondents will be required to plan, design, build-out, maintain, manage, staff and operate the retail concessions, at its sole cost, in accordance with the Lease. Design, furnishings, fixtures, equipment, and finish materials for all tenant improvements must be approved by the City through the Tenant Improvement Process prior to construction and installation.

The Successful Respondents will be required to participate in any relevant airport-wide programs and initiatives, systems, or applications, including, but not limited to, customer loyalty programs, airport marketing programs, customer experience programs or mobile ordering systems for merchandise purchases. Cooperation with such programs is required.

2.2. Retail Concept and Categories

This section of the RCS contains a list of the retail categories identified for this T3N2 solicitation. Each category contains a description of the type of concept and merchandise items desired by the City. In addition, the Store ID and square footage for each concession space location are listed below in the retail category descriptions.

Respondents may not propose changes to the category descriptions or total square footage listed for each concession space. Respondents are required to propose a concept for the retail categories in this solicitation.

Retail Spaces:

There are two (2) Retail concession contracting opportunities in this RCS. The available Retail concession spaces are:

• Package 1: News, Gift, and Convenience Store – 3,202 square feet in N2-R1

• Package 2: Specialty Retail Boutique-Style Store – 1,198 square feet in N2-R2

PACKAGE STORE ID CONCEPT

CATEGORY

SQUARE FEET

1 N2-R1 News, Gift, and

Convenience Store

3,202

2 N2-R2 Specialty Retail

Boutique-Style Store

1,198

2.3. Package 1: Terminal 3 North 2 Concourse (N2-R1) News, Gift, and Convenience Store

A. N2-R1, occupying 3,202 square feet, is a News, Gift, and Convenience Store. See

Premises in Attachment C. The store must provide essential travel merchandise for passengers who need to make quick and efficient purchases. The City encourages

Respondents to propose a retail design that incorporates innovative payment options of touchless and contactless checkout technology to serve travelers who want fast, seamless service. The goal is to elevate the in-store customer experience while optimizing sales throughput and operational efficiency to enhance revenue generation, especially during peak travel hours of the day.

B. The store must offer merchandise in the following merchandise categories: reading materials, personal care products and travel essentials, variety of pre-packaged food and snacks items, bottled/canned beverages, souvenirs and gift merchandise, travel technology accessories, and other convenience merchandise appropriate for airport passengers.

C. Other than pre-packaged food and snacks and bottled/canned beverages, the store will be prohibited from selling food and beverage items such as fountain drinks and freshly brewed coffee.

D. News, Gift, and Convenience Vending Alcove:

1. The Successful Respondent will be required to include delivery, installation, operation, and maintenance of vending machines in the News, Gift, and

Convenience Vending Alcove of the News, Gift, and Convenience Store Premises.

See Premises in Attachment C. Vending is defined as a vending machine, which may be refrigerated, that contains bottled or canned beverages and packaged snacks and dispenses the beverages and packaged snacks upon payment.

2. The Successful Respondent must sell food and beverage items in vending machines consistent with what is being offered in the News, Gift, and Convenience space such as bottled beverages and packaged snacks. In addition to traditional food and non-alcoholic national and regional beverage vending offerings, the Successful

Respondent will provide healthy alternatives in the product mix. The Successful

Respondent may sell retail items such as personal care products, travel essentials, and travel technology accessories in vending machines. Sale of the following items are strictly prohibited: alcohol, tobacco products, e-cigarettes or vaping products, general merchandise such as t-shirts, hats, magazines or newspapers, and any type of lottery or gambling tickets. All types of gambling products are prohibited. All vending machines must be capable of handling various payment methods consistent with industry norms.

3. The cost of the News, Gift, and Convenience Vending Alcove will be excluded from the initial capital investment requirement defined in Section 2.13 (D).

E. Portable Interim Concession Unit: During the construction of the News, Gift, and

Convenience location, the Successful Respondent must provide and operate a portable interim concession unit to include essential travel items and pre-packaged food, snacks, and beverage items. The location for the portable interim concession unit can be found in Attachment O. Product offerings such as fountain drinks or freshly brewed coffee will be prohibited at the portable interim concession unit. Plans for the portable interim concession unit, including design, location, days and hours of operation, and the merchandise list must be approved in writing, in advance, by Aviation. The cost of the portable interim concession unit will be excluded from the initial capital investment requirement defined in Section 2.13 (D). Any changes to the portable interim concession unit, its location or offerings must also be approved. Aviation reserves the right to modify or inspect the portable interim concession unit and the associated plans or operations upon providing written notice.

F. Reading Materials Offerings:

1. The reading materials area of the store should consist of an assortment of readables including newspapers, magazines, and books and a selection of local and national newspapers such as The Phoenix Business Journal, The Arizona Republic, Wall

Street Journal, New York Times, and USA Today. Books should include selections from the top 20 paperback and hardcover books from the New York Times Best

Seller list.

2. The periodical section of the reading materials areas should offer magazines in the following categories: business, entertainment, fashion, cooking, gourmet foods and wine, health and fitness, sports, technology, science, and politics. The book section should offer hardcover and paperback books appealing to business and leisure travelers, including fiction, non-fiction, reference, children’s books, self-help, advice and how-to, cooking, art, travel, and books related to Phoenix and the Arizona area.

3. In addition, the store may offer printed materials such as travel guides, local interest publications, current events materials, and maps.

G. Personal Care Products and Travel Essentials Offerings: The personal care products area of the store is expected to offer essential travel items that passengers commonly forget or require during their travel journey, including, but not limited to, over-the-counter medication, personal hygiene and care products, eyewear, batteries, stationery and postal supplies, and travel accessories. The Successful Respondent should be knowledgeable of the Transportation Security Administration (TSA) security restrictions that limit liquid container sizes and prohibit certain items, as this directly impacts product selection and customer needs. TSA guidelines on prohibited items are available at https://www.tsa.gov/travel/security-screening/whatcanibring/all.

H. Travel Technology Accessories Offerings: The store's technology offerings will be limited to portable electronic accessories, including device chargers, earbuds and headphones, https://www.tsa.gov/travel/security-screening/whatcanibring/all charging cables and connectors, power adapters, and other similar electronic travel accessories.

I. Souvenirs, Gifts Merchandise, and Other Convenience Merchandise Offerings:

1. The store is expected to offer a selection of memorabilia that reflects the unique character of Phoenix and the Arizona region, particularly merchandise made in

Arizona or that features the Phoenix metropolitan area. Examples of souvenir and gift merchandise include apparel such as t-shirts and sweatshirts, alcoholic beverages sold for consumption off-Airport, drinkware including coffee mugs and shot glasses, local-themed items like cactus gardens and wind chimes, children's toys and games, candles, hand-painted tiles and coasters, picture frames, and caps and hats.

2. In addition, the store may offer other convenience merchandise appropriate for airport passengers, such as travel comfort items like neck pillows, eye masks, and blankets, travel clothing items such as socks and compression wear, umbrellas, luggage accessories including locks and tags, disposable cameras, emergency travel items, and other travel necessities.

2.4. Package 2: Terminal 3 North 2 Concourse (N2-R2) Specialty Retail Boutique-Style Store

A. N2-R2 occupying 1,198 square feet, is a Specialty Retail Boutique-Style Store. See

Premises in Attachment D. The N2-R2 is designated for a Specialty Retail Boutique-

Style Store designed to feature a curated selection of unique and specialty retail products that feature locally-produced merchandise and products and complement the retail program and concepts located in T3. The City encourages Respondents to be creative in designing a shopping experience that allows curated brands to be showcased, creating a vibrant and distinctive concession space that enhances customer engagement and increases revenue opportunities. The store should carry local/regional, national, or international branded merchandise that is clearly differentiated from other retail products, fostering a sense of exclusivity and individuality for each customer through thoughtful store design and distinctive product selection.

B. Merchandise at this location may include cosmetics, fragrances, sportswear, specialty gifts, exclusive clothing, and other curated selections representative of unique boutique-style offerings. Concepts should emphasize high-quality, distinctive products that appeal to quality-conscious travelers seeking memorable, specialty items. This location is not designated for News, Gift, and Convenience store offerings, and proposals featuring items commonly associated with that category—such as snacks, beverages, newspapers, or travel essentials—will not be considered for this location.

C. Respondents are expected to be familiar with the current retail offerings in the surrounding areas in Terminal 3 and propose a concept that complements and enhances the overall Terminal 3 Retail program. For more information on the current

Retail offerings, visit: https://www.skyharbor.com/ShopsFoodServices/Shops. To see the locations of all Retail offerings at PHX, visit: https://maps.skyharbor.aero/.

D. Portable Interim Concession Unit: During construction of the Specialty Retail Boutique-

Style Store, the Successful Respondent may operate a portable interim concession unit to sell appropriate merchandise related to the proposed concept.