IFB 18-7 Rental Car Lease & Concession

Palm Beach County Department of Airports issued Invitation for Bid (IFB) 18-7 to procure seven rental car lease and concession agreements for operations at Palm Beach International Airport. The procurement solicits competitive bids for the right to lease and operate rental car reservation counters located in the terminal baggage claim area, with counter spaces ranging from 318 to 840 square feet including counter and office space. Successful bidders will receive non-exclusive rights to operate and manage a rental car concession from assigned counter positions, with each concessionaire identifying a maximum of two rental car brands to operate. Bidders must demonstrate a minimum of three years of experience in rental car operations, maintain ownership of proposed brands, sustain a fleet of vehicles no older than two years, and operate national credit card and reservation systems. The concession agreement term runs for five years from October 1, 2018, through September 30, 2023, with one optional two-year renewal period from October 1, 2023, through September 30, 2025. The mandatory pre-bid conference was held on May 3, 2018, with written questions due by May 16, 2018, at 3:00 p.m. The original bid submission deadline of June 1, 2018, was extended through two amendments to June 15, 2018, at 2:00 p.m. local time, with a mandatory allocation meeting for successful bidders scheduled for June 27, 2018, at 10:00 a.m. Award will be granted to the seven responsive, responsible bidders offering the highest return to the County, with evaluation based primarily on the Minimum Annual Guarantee bid amount, with tiebreakers determined by Airport Concession Disadvantaged Business Enterprise (ACDBE) participation levels and drug-free workplace certification.

Compensation to the County consists of the greater of a Minimum Annual Guarantee (MAG) of at least $500,000 for the first contract year or an Annual Percentage Payment equal to ten percent of gross revenues. The MAG for subsequent contract years is set at ninety percent of the prior year's Annual Percentage Payment or the prior year's MAG, whichever is higher, with an abatement trigger of eighty-five percent of deplanements in the 2018 base year. Facility rental is charged at $73.29 per square foot annually, subject to adjustment each October 1st based on the rate schedule for non-signatory airlines. The procurement includes an Airport Concession Disadvantaged Business Enterprise (ACDBE) participation goal of 3.19 percent based on gross receipts and revenue, with all bidders required to demonstrate good faith efforts to achieve this target through completion of Schedule 3. Current incumbents operating Alamo, Avis, Budget, Dollar, Enterprise, Hertz, National, and Thrifty brands hold agreements expiring September 30, 2018, and are eligible to submit bids as either incumbents or non-incumbent bidders. All successful bidders must submit a $5,000 bid guarantee in the form of a bid bond or cashier's check and maintain a security deposit equal to fifty percent of the first contract year's MAG in the form of a Letter of Credit or Surety Bond prior to award.