Business Opportunity FAQs
Frequently Asked Questions
A concession refers to "an entity which has entered into an agreement with the Airport that allows it to provide food & beverage, retail, or services directly to the traveling public."
The City of Phoenix is committed to the principles of open competition and fairness for the procurement of goods and services. Working with customers, the City strives to ensure that our community receives the best value for the enterprise dollars that are expended.
The Aviation Department Business & Properties (B&P) is responsible for concessions. B&P will conduct a Revenue Contract Solicitation (RCS), Request for Proposals (RFP), or a Request for Bids (RFB) process to select businesses for concession opportunities, with the assistance from the Aviation Departments Contracts & Services.
There are four steps in the competitive selection process:
1. Planning Stage: Airport staff determines the basic business terms including type of business, location, length of lease, minimum acceptable bid, rental rate, required and optional merchandise or services, operational requirements, and construction/improvement requirements.
A Revenue Contract Solicitation (RCS), Request for Proposals (RFP), or a Request for Bids (RFB) is issued which describes the business opportunity and establishes the qualification requirements for prospective proposers or bidders. This includes a draft lease and market data and provides instructions about how to submit a proposal or bid. The document also includes the selection criteria that the Airport will use in evaluating the proposal.
2. Informational Meeting: Once the opportunity is made available to the public, the Airport conducts an informational meeting. The purpose of the meeting is to review and explain the selection process and agreement specifications. It is also an opportunity for participants to provide input for staff's consideration. Notices are sent to the participants of any changes to the qualifying criteria, business terms, or selection process.
3. Determining the Successful Bidder/Proposer:
RCS: Proposals are accepted by mail or in person. All proposals are evaluated and ranked by a panel using the criteria developed earlier in the process.
RFB: All bids are opened at the same time in a public meeting. Staff announces the highest amount tendered as the "apparent successful bidder." Staff then reviews the submittals to ensure that the minimum qualifications are met.
RFP: Proposals are accepted by mail or in person. All proposals are evaluated and ranked by a panel using the criteria developed earlier in the process.
4. Award: The City Council, which is the Airport's governing body, approves the award of the agreement. The successful bidder or proposer then becomes an Airport tenant.
The process may take up to one year to complete.
Visit the Small & Disadvantage Business Enterprise (SDBE) program page for more information.
For additional questions please contact:
City of Phoenix Aviation Department
Attn: Contract & Services
2485 E. Buckeye Rd
Phoenix, AZ 85034
Telephone:
Fax:
Email:
Because each concession opportunity is different, the rent varies. For example, a newsstand will have a different minimum proposal/bid amount than an in-line restaurant. Each business opportunity goes through a competitive selection process with a set minimum proposal/bid amount. The minimum annual guaranteed (MAG) rent for the first year of the lease is the amount proposed/bid by the winning proposer/bidder. The MAG is adjusted annually by the Phoenix-Mesa Consumer Price Index.
The RCS, RFB, and RFP processes have a set of minimum qualifications and required documents that must be submitted by the deadline in order to be considered.
For RFBs, bids are opened at a designated date and time in a public meeting. The highest bid is deemed the "apparent successful bidder." Staff then reviews the submittals to ensure that the minimum qualifications are met.
The primary difference between an RFB and an RCS & RFP is that these two solicitations allow for the selection of a firm based on a qualitative criterion, whereas an RFB is awarded to the highest bidder provided that they meet the minimum qualifications.
Sky Harbor typically requires a minimum of three years of experience in the concept that is available within the past five years (referred to as "qualifying years"). Commonly, for each qualifying year, the proposer must have also achieved a minimum amount of gross revenues, which varies by concession opportunity.
Sky Harbor may grant Temporary License agreements, for up to six months, to test a new concept or an upcoming trend. If the concept is found to be desirable, the Airport will conduct a competitive selection process for the opportunity. The incumbent is not guaranteed the lease.
Please contact the Small & Disadvantage Business Enterprise (SDBE) program.
Mailing address:
City of Phoenix Aviation Department
Attn: Business & Properties
2485 E. Buckeye Road
Phoenix, AZ 85034
E-mail:
Email Business & Properties at aviation.business@phoenix.gov to request the contact information of the owner/store managers of each retail, food & beverage, or service at the Airport. Once you have the information, you need to contact the tenants directly.