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 one, two-year renewal term with CBC SSP America DAL, LLC for food and beverage concessions services at Dallas Love Field Airport, branded as Catch One - Estimated Revenue: Aviation Fund $225,000.00
Body
BACKGROUND
On April 28, 2023, (“Concession Effective Date”), a Month-to-Month Concession Agreement was executed. (The by and between CBC SSP America DAL, 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 CBC SSP America DAL, LLC for food and beverage concession services branded as Catch One in Suite C2170 at Dallas Love Field Airport. An exception to the concessions 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. CBC SSP America DAL, LLC is the only concessionaire that can best operate the special needs required food and beverage concession in Suite C2170 at the airport.
The concessionaire has proved to be an excellent operator, managing both the First Quarter Bar & Grill and AV8 Bar Café. 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. CBC SSP America DAL, LLC will spend over $1,000,000 on capital improvements for the brand Catch One, a 535 square foot seafood themed kiosk. Concessionaire is currently constructing the unit branded as Catch One. The unit will not have a full kitchen due to the size of the unit, but food items that are hot, such as soups and crab cakes will be prepared in the First Quarter Bar & Grill, creating the special need. Not approving this informal method will cause a disruption of service to the passengers and would reduce revenue to the city.
It is our recommendation that the city award a Dallas Love Field Food & Beverage Concession Contract to CBC SSP America DAL, LLC to operate a seafood themed bar in Suite C2170 to avoid a loss of revenue to the city and prevent a disruption in services to the traveling public, and because CBC SSP America DAL, LLC is the only concessionaire that can best provide the required special need 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 $225,000.00
OWNER/EXECUTIVE
CBC SSP America DAL, LLC
Charles Bush, Chief Executive Officer