BID PB 22-3 Rental Car Lease and Concession

Palm Beach County's Department of Airports issued Invitation for Bids (IFB) PB 22-3 to procure up to eight (8) non-exclusive rental car lease and concession agreements at Palm Beach International Airport (PBI). The procurement seeks qualified operators to lease and manage rental car reservation counters and offices within the airport terminal, with operations required to be maintained a minimum of eight hours daily (9:00 a.m. to 5:00 p.m.), seven days per week, and include courtesy shuttle service at 15-minute intervals. Bidders must demonstrate three (3) years of successful airport rental car operation experience with at least fifteen (15) on-airport or off-airport U.S. locations, or equivalent experience held by their franchisor. The mandatory pre-bid conference was held on March 2, 2022, with written questions due by March 10, 2022, at 3:30 p.m. Initial bid responses were due April 6, 2022, but Amendment 3 extended the deadline to May 25, 2022, at 3:30 p.m. The concession agreements commence October 1, 2022, for an initial term of five (5) years and three (3) months through September 30, 2027, with one (1) optional renewal for an additional two (2) years ending September 30, 2029. Evaluation criteria include the bidder's experience, qualifications, and financial offer structure, with successful bidders required to submit a $5,000 bid guarantee and evidence of appropriate insurance coverage.

The solicitation establishes a Minimum Annual Guarantee (MAG) with the first contract year floor of $500,000, with subsequent years' MAGs calculated as ninety percent (90%) of the prior year's annual percentage payment or the prior year's MAG, whichever is higher; the MAG may be adjusted downward if deplaning passengers fall below eighty-five percent (85%) of calendar year 2019 baseline levels. In addition to the MAG, concessionaires must pay facility rental of $65.66 per square foot annually, adjusted each October 1st, and ten percent (10%) of gross revenues, whichever is greater. The procurement includes an Airport Concession Disadvantaged Business Enterprise (ACDBE) participation goal of 3.22 percent of goods and services, with bidders required to demonstrate good faith efforts to achieve this goal through documented contact logs, advertisements, and quote comparisons if the target is not met. Currently, seven (7) concessionaires operate eleven (11) brands at PBI, with 2021 calendar year gross revenues of approximately $131.4 million and county payments of approximately $12.9 million. Successful bidders must post a security deposit equal to fifty percent (50%) of the first contract year's MAG, maintain vehicle fleets with specific model year requirements, and comply with all federal, state, and local laws, including FAA regulations and the county's criminal history records check ordinance.