TITLE
Recommendation to authorize City Manager, or designee, to award a contract to Amadeus Airport IT Americas, Inc., of Orlando, FL, to provide software licensing, maintenance and support services of the Common Use Passenger Processing System at the Long Beach Airport, in an annual amount not to exceed $635,510, for a period of two years, with the option to renew for three additional one-year periods, at the discretion of the City Manager; and, authorize City Manager, or designee, to execute all documents necessary to enter into the contract, including any necessary amendments; and
Increase appropriations in the Airport Fund Group in the Airport Department by $296,560, offset by funds available. (District 5)
DISCUSSION
City Council approval is requested to enter into a contract with Amadeus Airport IT Americas, Inc. (Amadeus), for licensing, maintenance, support, and as-needed repair services of the Common Use Passenger Processing System (CUPPS) at the Long Beach Airport (Airport).
On May 8, 2018, the City Council adopted specifications RFP No. AP18-033 and awarded a design-build contract to Swinerton Builders (Swinerton) for the design and construction of the Phase II Terminal Area Improvements (Phase II) at the Airport. The Phase II construction is underway and is implementing the CUPPS for all commercial airlines. The CUPPS simplifies procurement, installation, support, and ongoing maintenance of passenger processing operations; replaces expensive and less efficient proprietary airline passenger processing systems; and, enables multiple airlines to share common workstations and physical hardware for ticketing or gate podium positions simultaneously or consecutively to accommodate check-in and boarding activities. The CUPPS will provide the Airport maximum operational flexibility and efficiency utilizing the limited ticketing and gate positions.
A formal procurement process was completed in May 2020 by Swinerton for the implementation and maintenance of the CUPPS. Because Phase II is a Design-Build contract, the Design-Builder is responsible for both the design and construction, which includes all activities required to complete the project. A Selection Committee comprised of representatives from the Airport and Technology and Innovation Departments, as well as Los Angeles World Airports (LAWA), selected Amadeus as the provider and implementor of CUPPS under the Phase II program. The CUPPS installation is included in the Guaranteed Maximum Price under the Phase II contract with Swinerton. Amadeus’s proposal also included ongoing maintenance and support of the CUPPS; these services must be contracted directly with Amadeus and are separate from the installation included in the Design-Build contract. The maintenance and support contract with Amadeus provides for daily inspections, scheduled maintenance at regular intervals, onsite monitoring services, remote online support, and emergency response for unscheduled repairs. To ensure that the CUPPS remains operable with minimal interruption, the contract also includes full-time onsite service technicians specifically trained in performing preventive and corrective maintenance of the CUPPS and related components.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on February 16, 2021, Business Services Bureau Manager Tara Yeats on February 12, 2021, and by Revenue Management Officer Geraldine Alejo on February 18, 2021.
TIMING CONSIDERATIONS
City Council action to award a contract is requested on March 9, 2021, to ensure the contract is in place expeditiously following the completion of the CUPPS implementation anticipated by May 2021.
FISCAL IMPACT
The total annual contract cost will not exceed $635,510. On February 11, 2020, the Long Beach Airport Department presented an update to City Council on Phase II of the Terminal Area Improvement Program, which included the initial implementation cost for CUPPS. Following implementation, ongoing maintenance and support costs will be the responsibility of the department. The cost for maintenance and support in FY 21 will be $296,560 and anticipates that the system will be in operation by May 2021. An appropriation increase of $296,560 is requested in the Airport Fund Group in the Airport Department, offset by funds available. Appropriation for subsequent years, including FY 22, will be requested during the annual budget process. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. The approval of this recommendation has a positive impact on local jobs with the addition of two onsite full-time technicians, as included in the contract.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
CYNTHIA GUIDRY
DIRECTOR, LONG BEACH AIRPORT
APPROVED:
THOMAS B. MODICA
CITY MANAGER