INVITATION FOR COMPETITIVE PROPOSALS FOR THE OPERATION OF RENTAL CAR CONCESSIONS AT MCGHEE TYSON AIRPORT KNOXVILLE, TN

Transcription

1 INVITATION FOR COMPETITIVE PROPOSALS FOR THE OPERATION OF RENTAL CAR CONCESSIONS AT MCGHEE TYSON AIRPORT KNOXVILLE, TN METROPOLITAN KNOXVILLE AlRPORT AUTHORITY ADDENDUM TWO METROPOLITAN KNOXVILLE AIRPORT AUTHORITY P.O. Box Knoxville, TN Phone:

2 TABLE OF CONTENTS Page Table of Contents Revised Time Table i ii Addendum Two 1 E X H I B I T S Rental Cars Revenue - Actual 2005 to 2013 by brand Exhibit 5 TABLE OF CONTENTS Page i

3 REVISED TIME TABLE Advertise RFP... February 14, 2014 Mandatory Pre-Proposal Conference... March 13, 2014 Conference Call... 9:00am EDT, April 15, 2014 Deadline for Questions... 4:00pm Friday, May 9, 2014 Deadline for Answers... Thursday, May 15, 2014 Proposals Due... May 30, 2014 Contracts Approved by the Board... June 25, 2014 Effective Date... July 1, 2014 REVISED TIME TABLE Page Ii

4 ADDENDUM TWO Additional Instructions and Clarifications: 1. Proposal Required: To be considered for a rental Car Concession, each interested party must submit a proposal and include a MAG (minimum annual guarantee). 2. Concession Term: The term of the concession agreement is 5 years with no extensions. 3. Minimum Space per Concession: Each successful proposer will be awarded one car rental counter and associated office area in Baggage Claim and 10 ready car spaces inside the parking garage. If a successful proposer wishes to rent more than one counter, the request will be considered if counters are available after all successful proposers are accommodated. 4. Minimum MAG: A minimum MAG of $12,000.00/year per proposal is required. 5. Parking Garage Rental Car Spaces Allocation: The MKAA will allocate the car rental spaces inside the garage (400 spaces) based on a combination of the following factors: a. A minimum of 10 spaces in the garage will be allocated to each successful proposal and the remaining spaces will be allocated based on MAGs. Example: If 6 proposals are received we will deduct 60 spaces from the 400 available and will allocate the remaining 360 spaces based on MAGs. b. The location and the number of spaces will be allocated based on the ranking of MAGs received. If there is a tie (MAGs are within $1, of each other) the average market share for the most recent 5 years will be used to break the tie. c. All rental car spaces inside the garage (400) will be allocated between the successful proposers. Each successful proposer will be required to lease the number of spaces allocated to it and will not be permitted to lease less spaces unless another successful proposer agrees to lease them. Addendum Two Page 1 of 3

5 ADDENDUM TWO d. The ready car space allocation will not change during the 5 year term of the concession agreement regardless of yearly market share changes. e. Due to the peculiar layout of the rental car area, in addition to the above factors, the MKAA reserves the right to make the final allocation in a manner that: i. minimizes customer confusion, ii. makes the spaces allocated to each proposer as contiguous as possible 6. Booths: Each successful proposer may have one booth in the parking garage but the booth must be located within its ready car area. 7. Proposals Due Date: Proposals will be received by the MKAA until Friday, May 30, 2014 at 4:00pm EDT. 8. Withdrawal of Proposals: The proposal withdrawal date is Friday, May 30, 2014 at 4:00pm EDT. 9. Contracts Approved by Board: The rental car concessions will be awarded at the June 25, Board of Commissioners meeting. 10. Effective Date: The effective date of the new agreement is July 1, Relocation: It is recognized that the relocation will occur after the new agreements go into effect. To accommodate this process, the rental rates will increase on July 1 but the rent for the new number of spaces or for the new counter will not be charged until occupied or September 1, 2014 whichever is sooner. 12. Relocation Cost: All costs associated with the allocation of the spaces as a result of this RFP will be incurred by the rental car companies. Each successful proposer will be responsible for its own cost. Companies switching locations must leave the premises in accordance with Article 5 of the concession agreement. 13. Deadline for Questions: Any questions regarding this RFP must be submitted in writing by ing to smig@tys.org no later than Friday, May , 4:00pm EDT. Addendum Two Page 2 of 3

6 ADDENDUM TWO 14. Deadline for Answers: The MKAA will respond to any written questions by no later than Thursday, May 15, Instruction Conflicts: To the extent that there is a conflict between these instructions and the previous instructions in the RFP document and in Addendum 1, these instructions prevail. 16. Agreement: By submitting a proposal, the proposer agrees to these instructions and agrees to lease the spaces allocated to it as determined by MKAA in its best judgment. Addendum Two Page 3 of 3

7 EXHIBIT 5 RENTAL CARS REVENUE ACTUAL 2005 TO 2013 (by brand) EXHIBIT 5

8 TYS Rental Cars Revenue - Actual 2005 to 2013 by brand Actual Actual Actual Actual Actual Actual Actual Actual Actual FYE 2005 FYE 2006 FYE 2007 FYE 2008 FYE 2009 FYE 2010 FYE 2011 FYE 2012 FYE 2013 Alamo $2,103,150 $1,962,071 $2,141,162 $2,129,183 $2,072,032 $3,033,399 $2,390,555 $2,038,185 $2,094,833 Avis $5,595,804 $6,149,716 $6,177,350 $6,461,218 $5,434,383 $4,936,271 $5,249,299 $5,322,742 $5,199,404 Budget $3,106,876 $3,646,342 $3,499,570 $3,701,904 $3,508,672 $3,156,469 $3,733,996 $3,679,164 $3,078,378 Enterprise $2,150,821 $2,594,785 $3,047,902 $3,482,222 $3,315,128 $3,612,415 $4,394,393 $4,743,808 $4,591,093 Hertz $7,582,059 $7,391,889 $7,400,820 $7,240,294 $6,048,099 $5,769,428 $6,279,067 $6,405,137 $6,179,108 National $3,059,771 $3,419,139 $3,644,291 $3,899,804 $3,433,072 $3,452,682 $4,013,211 $4,458,959 $4,582,780 Thrifty $904,898 $1,257,094 $1,142,360 $1,862,653 $1,335,310 $1,330,736 $1,269,023 $1,477,940 $1,533,866 Dollar $0 $0 $0 $363,355 $713,511 $574,992 $603,760 $737,706 $868,736 Total Rev. $24,503,378 $26,421,035 $27,053,454 $29,140,634 $25,860,207 $25,866,394 $27,933,304 $28,863,640 $28,128,199