Notice of Intent to Award On-Airport Vehicle Rental Services Contracts
Notice is hereby given by the City of Abbotsford of its intent to award concession contracts effective June 1, 2020 to three service providers to continue to provide On-Airport Vehicle Rental Services at the City of Abbotsford's Abbotsford International Airport ("YXX"):
· Avis Budget Car Rental Canada ULC
· Enterprise Rent-A-Car Canada Company dba Enterprise Rent-A-Car and National Car Rental
· Hertz Canada Limited
Background:
The City of Abbotsford has invited eligible and qualified companies to provide On-Airport Vehicle Rental Service at Abbotsford International Airport ("YXX").
At this time YXX passenger traffic is able to support, and facilities are able to accommodate, three experienced on-airport vehicle rental service providers. This number of providers should provide (1) a high level of customer service and (2) a reasonable degree of competition between the on-airport providers.
In addition to experience and other qualifications, to be eligible to provide any vehicle rental services at the airport a company must be part of a national vehicle rental reservation system. This is consistent with Canadian international airport car rental policy and practice, and in accordance with YXX's longstanding approach. At YXX a vehicle rental company must also be able to have the airport vehicle rental service in operation on June 1, 2020.
As a result of consolidation in the Canadian car rental industry in the past decade, there are only a few companies that are part of a national vehicle rental reservation system and therefore eligible. YXX has approached other vehicle rental companies that could potentially qualify and be eligible, but these companies have, in writing, declined to participate. The three current incumbents are the only companies that have expressed interest in participating in this on-airport opportunity.
The total gross revenue opportunity for all three companies for vehicle rental services is estimated to be in the range of up to $10 million a year, for which opportunity the companies will pay to the City of Abbotsford a percentage concession fee.
Direct Contract Award
In the circumstances, where there are currently no other eligible or interested parties, it is the intent of the City of Abbotsford to award these three contracts on a year to year basis, for up to the next five years, with the sole option for the City of Abbotsford to renew the contracts annually.
It is anticipated that during this five year period, other qualified and eligible companies may come forward to express an interest in providing vehicle rental services at Abbotsford International Airport. If one company or more is qualified and eligible an off-airport vehicle rental opportunity may be permitted, or, the City of Abbotsford could, at its option not renew the annual contracts these three companies would, and commence a competitive process Request for Proposals (RFP) for vehicle rental opportunities.
The number and type of vehicle rental providers to be chosen under the RFP at that time would be based, among other considerations, on current airport facilities and passenger demand for vehicle rental services. This would be to ensure the YXX goals of a providing consumers a high level of customer service and a competitive airport vehicle rental market. The dates for the issuance of the RFP and the commencement of any new concession contract would be based on the expiry date of the annual contracts of the current providers.
Notice of Objection
Vehicle rental service providers wishing to object to this decision must email their objection by February 7th, 2020 no later than 2:00 pm, local time to: Lisa Pryce, Senior Manager, Procurement.
