SUBJECT
title
Consideration to award contract FY24-106 to GRA Incorporated, Alexandria, VA and Merchant Aviation LLC, a Groupe ADP (Aéroports De Paris) company, Summit, NJ for air service development and consulting services, each contract shall not to exceed $75,000.00. The term of this agreement shall be for one year with two options to renew, with each option being for an additional one year term upon mutual agreement of the parties. Funding is available through the Laredo International Airport Operations Fund.
body
PREVIOUS COUNCIL ACTION
N/A
BACKGROUND
On August 19, 2024, the Laredo International Airport solicited formal bids through Cit-E-Bid from interested and qualified parties with demonstrated expertise Air Service Development and Consulting Services for development and implementation of a comprehensive air service and business development strategy to maintain, target and increase air service by existing carriers and attracting new carriers to the airport. The scope of services for this contract include the following:
§ Ability to define market and analyze airports air service trade area in multiple ways, including:
• Identification of LRD Catchment Area
• Demographic of market users
• Leakage to competing airports and destinations that leakage is flying to.
• Passenger potential by market
• Airfares at LRD compared to competing airports
• Comparison of air service at LRD to competing airports.
• Underserved Markets
• Top Destinations
• Seat Capacity analysis
• Domestic and international travel demand
§ Provide advice to LRD on air service development issues based on knowledge of the Laredo and South Texas community, demographics, and economies.
§ Support for LRD’s meetings with airlines at air service development conferences as requested, potentially to include the Takeoff Conference, Routes Americas, ACI JumpStart, and the Allegiant Airports Conference. Including the following:
• Advice and assistance regarding meeting requests
• Development of data and presentations for airline meetings
• Attendance at the airline meetings (depending on LRD needs and funding availability) and documentation of discussions
• Follow-up from the meetings with individual airlines as appropriate
§ Assistance with grant applications and implementation for Small Community Air Service Development Program (SCASDP) grants from the US Department of Transportation (USDOT):
• Draft and update LRD SCASDP applications as appropriate
• Support LRD in executing SCASDP grant agreement with USDOT, including milestones, amendments and reporting requirements
• Support LRD and LRD’s marketing agency in developing appropriate marketing campaigns to reduce leakage to other airports
§ Continued support and analysis of potential new air service opportunities between LRD and Mexico, as well as new domestic opportunities, including:
• Identification of potential markets and airlines
• Outreach to target airlines
• Data analysis as appropriate
• Surveys to demonstrate potential demand for new service
• Route profit and loss analysis
• Assistance and advice related to any Chapter 380 Development Agreements as needed
§ Quarterly data reports, including comparisons of LRD with peer airports
• Passenger traffic and fare data
• Flight data
• Passenger catchment area data
§ Assistance with strategies to reduce passenger leakage
• Evaluation of passenger catchment area and leakage data
• Development and maintenance of tools and other strategies to reduce passenger leakage, such as cost calculators showing the difference between flying from LRD and from other local airports
§ Development of airport economic studies to demonstrate the impact of LRD on the local economy.
§ Advice based on expert knowledge of FAA policies
• FAA policy on airport rates and charges
• FAA policy on airport air service incentive plans
§ Passenger forecast by airline and by route
• Forecast of future passengers based on historical passenger traffic, economic trends, airport development, airline future capacity guidance, and airline strategy.
§ On occasion, the awarded bidder may be asked to provide presentations directly to Laredo International Airport stakeholders to garner support for incentives.
§ Ability to provide additional services on an as needed basis that are not described above, but are within the scope of for air service development consulting. The request for additional services shall not exceed 15 hours per 12 month period. Additional services would include:
• Lobbying support with federal and state officials
• Incentive program development, review, and assistance
• Communication with airlines
• Report preparation
§ Support for other air service development tasks as assigned, including support at City Council meetings
The Airport received three bids through City-E Bid, as follows:
1. Merchant Aviation, LLC, Summit, NJ
2. GRA Incorporated, Alexandria, VA
3. Volair Aviation Inc., Fishers, IN
A selection committee of non-bias members was compiled to review, discuss, and rank to proposals. Two proposals were ultimately selected. Staff has negotiated terms of the contract with respondents and is recommending that this contract be awarded to Merchant Aviation LLC, Summit, NJ and GRA Incorporated, Alexandria, VA.
The term of this agreement shall be for one (1) year with two (2) options to renew, with each option being for an additional one (1) year term upon mutual agreement of the parties.
This contract will be the responsibility of and administered by the vendor and the City of Laredo International Airport.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this motion.
end
Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: Y
Source of Funds: Laredo International Airport Fund.
Account #: 242-3605-583.55-26
Change Order: Exceeds 25% Y/N: N.
FINANCIAL IMPACT:
Funding is available in the Laredo International Airport Fund in account# 242-3605-583.55-26.
Merchant Aviation, LLC Summit NJ $75,000.00
GRA Incorporated, Alexandria, VA $75,000.00
Total $150,000.00.