Terminal 3 North 2 Concourse Retail Concessions

The City of Phoenix Aviation Department is soliciting responses to operate and manage retail concession spaces in Terminal 3 North 2 Concourse at Phoenix Sky Harbor International Airport, with proposals due September 2, 2026 at 11:00 a.m. and a non-mandatory pre-offer conference on June 18, 2026 at 3:00 p.m. The solicitation is RCS-26-0041. Respondents may submit proposals for one or both of two distinct packages: Package 1 (News, Gift, and Convenience Store, 3,202 square feet in space N2-R1) and Package 2 (Specialty Retail Boutique-Style Store, 1,198 square feet in space N2-R2); only one package will be awarded per respondent unless circumstances warrant otherwise.

The scope requires the successful concessionaire to develop, operate, and manage the retail spaces under a Concession Lease Agreement with an initial 12-month term (operating portable interim units while completing permanent leasehold improvements) followed by a 12-year primary term with no extension options. The concessionaire must invest a minimum of $450 per square foot in initial capital improvements and $125 per square foot in midterm capital refurbishment by the eighth lease year. Rent is structured as percentage rent based on gross sales: Package 1 requires 15% for core hours or 12–13% for 24-hour operation (depending on small business status); Package 2 requires 13%. The concessionaire must maintain a Performance Guarantee based on square footage multiplied by the Airport Terminal Rental Rate (currently $197.88 per square foot through June 30, 2026) and post a $10,000 Response Guarantee per package submitted. A $10,000 employee fidelity bond is required. Additional obligations include a 0.25% annual contribution to the Airport Concessions Marketing Program based on gross sales and monthly reporting of gross sales revenues.

Respondents must demonstrate minimum qualifications: three or more continuous years in the last five years of retail business ownership or executive management in an airport setting, with minimum gross sales of $2.5 million in one of the last five years. Respondents must document qualifications and experience managing retail operations (airport and non-airport) via Attachments BB and DD; identify an on-site manager with relevant experience via Attachment AA; and provide three business references preferably from airport businesses. The City requires comprehensive small business outreach documentation under the Airport Concession Disadvantaged Business Enterprise–Neutral (ACDBE-N) Program per 49 CFR Parts 23 and 26; respondents must submit Forms EO1-200 (Statement of Outreach Commitment), EO2-200 (Small Business Outreach Efforts and Participants List), and EO3-200 (Small Business Utilization Commitment) at initial submittal. No mandatory ACDBE or small business participation goals are established, but the City strongly encourages small business utilization and requires documented outreach.

Commercial General Liability insurance with $2 million general aggregate and $1 million per-occurrence limits, Automobile Liability ($5 million Combined Single Limit for airside driving), Workers' Compensation at statutory rates with $1 million employers' liability, Property Insurance at replacement value, and Fidelity/Crime Insurance with $10,000 minimum are required; the City must be named additional insured. All insurance carriers must hold an A.M. Best rating of at least B+ VI or Standard and Poor's rating of BBB or higher and be licensed in Arizona. Respondents must provide pro forma financial statements and assumptions documentation (Attachments FF and GG); the City provides baseline assumptions including zero annual inflation and annual enplanements data. The concourse is expected to be operational in 2027. Evaluation is tentatively scheduled for November and December 2026, with City Council award anticipated in April 2027. Written questions are due June 30, 2026. Submissions are conducted through the City's Procurement Portal; technical support is available at procurement-support@opengov.com.