On Wednesday, September 4, 2019 Mayor Carlos A. Gimenez announced that the Miami-Dade Aviation Department (MDAD) is preparing a Request to Advertise for a competitive solicitation for upcoming review. The Board of County Commissioners (Board) is seeking two qualified and experienced firms to finance, design, construct, and manage MIA’s first Concessions Programs for the Central and South Terminals.
Both terminals cover approximately 106,000 square feet of concession space dedicated to food, beverage, and retail services (excluding duty-free stores). MDAD anticipates that an additional 42,000 square feet of concession space will be awarded through the solicitation, amounting to a total of 148,000 square feet available for the firms awarded the Concessions Programs.
Selected firms will each have separately negotiated agreements for an initial contract term of 15 years, with one five-year possibility of renewal option. The competitive firms that are awarded the contract will be assigned separate concession zones to promote competition, increase revenues, and holistically contribute to the customer experience. Furthermore, each firm will work and coordinate with MDAD to complement a series of capital improvements through MDAD’s upcoming Capital Improvement Program (CIP) that will be constructed at MIA to redevelop existing concessions and redesign common areas.
Some of the proposed Scope of Services which will be integrated into the negotiated agreements include the following:
- Design, build, finance, procure, maintain, and manage all aspects of the Concessions Programs for concourses within the Central and South Terminals.
- Manage the concession locations in a way that maximizes the highest and the best use of the locations to provide a financial return to MDAD.
- Sublease concession locations to sub-tenants, with the approval of MDAD.
- Designate 20 percent of all awarded space for locally branded concession concepts.
- Designate 20 percent of airport brands for food and beverage locations and 35 percent for retail locations.
- Provide on-site staff to perform the daily functions specified in the Scope of Services
MIA’s Concessions Programs will be a revenue-generating solicitation, and as such the selected firms will be required to compensate the County by paying the Minimum Annual Guarantee (MAG). The MAG will be calculated and established based on the approved redevelopment plans presented by the firms.
The solicitation offers a tremendous opportunity to propose an innovative procurement approach that will (1) leverage private sector expertise in terminal planning and revenue generation (2) increase local business participation, and (3) enhance the customer experience by improving customer service.