On November 13, 2018, the Board approved a Request for Proposals for On-Airport Rental Car Concessions at Fort Lauderdale-Hollywood International Airport, RFP No. 20180430-0-AV-1, Packages C and D (“RFP”). Successful proposers will have the right, privilege, and obligation to conduct and operate a high-quality, well-managed rental car business from the space at the Rental Car Center (“RCC”). Successful proposers will be required to pay facility rent, a privilege fee equal to the greater of 10% of monthly gross revenues or the monthly minimum annual guarantee, and a transaction-based customer facility charge. The RFP was advertised on December 11, 2018, and, unless otherwise amended, closes on February 22, 2019. The RFP is only for Packages C and D, which consist of a total of four separate proposed spaces: C1, C2, D1, and D2 (see Exhibit 1).
On January 29, 2019 (after being deferred from the meeting on November 13, 2018), the Board authorized the Director of Aviation to negotiate new Rental Car Concession Lease and Operating Agreements for Packages A and B (see Exhibit 1) with the three major car rental groups that are currently at the RCC, representing nine separate brands: (1) Enterprise Holdings, Inc. d/b/a Enterprise Rent-A-Car, National Car Rental, and Alamo Rent a Car; (2) The Hertz Corporation d/b/a Hertz Rent a Car, Thrifty Car Rental, and Dollar Rent A Car; and (3) Avis Budget Group d/b/a Avis Rent a Car, Budget Rent A Car, and Payless Car Rental.
On January 29, 2019, several Commissioners expressed concern about whether the RFP should continue as advertised, or whether the Director of Aviation should negotiate new agreements with the smaller operators that are currently at the RCC: Royal Rent-A-Car Systems of Florida, Inc., Advantage OPCO, LLC, and E-Z Rent A Car, LLC. Advantage and E-Z are part of the same group.
Aviation Department staff members are engaging in discussions with key stakeholders and are expected to provide updates and further information to the Board in advance of the February 12, 2019, Board meeting. This information may impact the Aviation Director’s recommendation and the Board’s determination as to whether it is in the best interest of the County to negotiate new agreements with the three smaller incumbent operators (as is occurring with the large incumbents).
Were the Board to determine that negotiations should occur with all incumbent operators, space would still be available for competitive award to entities not currently operating from the RCC.
The Board’s February 12th meeting is the last opportunity prior to the RFP response deadline, absent the requested 30 day extension, for the Board to discuss and provide direction to staff as to the preferred mechanism to ensure that the available RCC space is allocated fairly, in accordance with any applicable legal or FAA requirements, and based on the County’s best interests. |