STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: September 25, 2024
COUNCIL DISTRICT(S): 6
DEPARTMENT: Department of Aviation
EXECUTIVE: Dev Rastogi
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SUBJECT
Title
Authorize a new seven-year concession contract with D&B Mitchell Group, LLC for food and beverage concessions services at Dallas Love Field Airport, branded as Turco35 - Estimated Revenue: Aviation Fund $197,384.00
Body
BACKGROUND
On October 20, 2022 (“Contract Effective Date”), a Month-to-Month Concession Agreement was executed with the Primary Term commencing February 1, 2023, by and between D&B Mitchell Group, LLC. (“Concessionaire”), a Texas limited liability company (hereinafter referred to as (“CONCESSIONAIRE”), and the City of Dallas.
Pursuant to the requirements of Administrative Directive 4-05, the Department of Aviation requested and received approval from the City Manager’s office to contract with D&B Mitchell Group, LLC. for food and beverage concession services branded as Turco35 in Suite C2449 at Dallas Love Field Airport. An exception to the concession contracts procurement process allows the city manager, with assistance from the initiating department, to procure a concession contract through an informal process, rather than by Request for Bids (RFB) or Request for Proposals (RFP) process, when an RFB or RFP process is determined not to be cost beneficial to the City. D&B Mitchell Group, LLC is the only concessionaire that can best operate the require food and beverage concession Suite C2449 at the airport.
The concessionaire has proved to be an excellent operator beginning in mid-January 2023. Post-COVID recovery progresses but at a significantly higher cost. Wages, hiring costs, merchandise and food costs have all increased, along with the delivery costs, and all aspects of the operations at the airport have increased the costs of those operations. D&B Mitchell Group, LLC. spent $606,253.00 on capital improvements for the brand Turco35, a 535 square foot kiosk. The 12-month sales ending May 2024 was $1.3 million with revenue to the city of $197,384.00. The Department of Aviation seeks City Council approval for the City Manager to execute a contract with D&B Mitchell Group, LLC.
D&B Mitchell Group, LLC. is the only concessionaire that can best provide the required food and beverage concession services in Suite C2449 which creates a special need because they are an experienced local Airport Concessions Disadvantaged Business Enterprise operator and can provide the sports themed bar required in the timeframe needed (we already have a Dallas Cowboy themed bar, and the airport is branded in several locations with images of the Dallas Mavericks.) This location (Suite C2449) satisfies the special needs adding the Dallas Stars themed bar that D&B Mitchell Group, LLC. can provide.
It is our recommendation that the city award a Dallas Love Field Food & Beverage Concession Contract to D&B Mitchell Group, LLC. to operate a Dallas Stars-themed sports bar in Suite C2449 to avoid loss revenue to the city and prevent a disruption in services to the traveling public, and because D&B Mitchell Group, LLC. is the only concessionaire that can best provide the required food and beverage services in the required timeframe.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
This item has no prior action.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $197,384.00
OWNER/EXECUTIVE
D&B Mitchell Group, LLC
Don Mitchell, Chief Executive Officer