Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 08-22-17
Requesting Agency: Denver International Airport
Division:
§ Name: Aaron Barraza
§ Phone: (303) 342-2261
§ Email: aaron.barraza@flydenver.com
Item Title & Description:
(Do not delete the following instructions)
These appear on the Council meeting agenda. Initially, the requesting agency will enter a 2-3 sentence description. Upon bill filling, the City Attorney’s Office should enter the title above the description (the title should be in bold font).
Both the title and description must be entered between the red “title” and “body” below. Do not at any time delete the red “title” or “body” markers from this template.
title
A resolution approving a proposed First Amendment between the City and County of Denver and Panasonic Enterprise Solutions Company (“PESCO”) concerning installation and maintenance of the “welcome sign” at Denver International Airport.
Amends a contract with Panasonic Enterprise Solutions Company (PESCO) to add $7,469,673 for a new total contract in the amount of $14,516,951, to reduce the term of the contract by four years for a new end date of 12-31-28, and to revise the terms to eliminate future revenue sharing with the vendor and changing the agreement to a standard design and build contract for PESCO to install and maintain the “welcome sign” at Denver International Airport (201631761-01). The last regularly scheduled Council meeting within the 30-day review period is on 11-6-17. The Committee approved filing this resolution at its meeting on 10-4-17.
body
Affected Council District(s) or citywide? Council District 11
Contract Control Number: 201631761-01
Vendor/Contractor Name (including any “DBA”): Panasonic Enterprise Solutions Company
Type and Scope of services to be performed:
This is a first amendment to the original agreement with Panasonic Enterprise Solutions Company (PESCO) for the implementation of an improved and technologically advanced “Welcome Sign” for the Denver International Airport. The original agreement was structured as revenue shared where PESCO and DEN had both made an up front capital investment in the new welcome sign and agreed that a portion of their investments and costs were to be offset with advertising revenues shared proportionally to each entities’ upfront investment. In light of regulatory challenges, an amendment is required to change the contract to a standard design/build contract for PESCO to construct and install the sign and an ongoing managed service contract for future O&M of the “Welcome Sign.” In this new structure, advertising revenue will not be shared with PESCO but instead received fully by DEN for recovery of the airport’s upfront capital investment.
Location (if applicable):
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
Are WBE/MBE/DBE goals met (if applicable)?
Is the contract new/a renewal/extension or amendment?
Was this contractor selected by competitive process or sole source? PESCO was originally identified and subsequently contracted with the City as an Innovative Technology Partner of DEN as a result of a competitive procurement selection process.
For New contracts
Term of initial contract:
Options for Renewal:
How many renewals (i.e. up to 2 renewals)?
Term of any renewals (i.e. 1 year each):
Cost of initial contract term:
Cost of any renewals:
Total contract value council is approving if all renewals exercised:
For Amendments/Renewals Extensions:
Is this a change to cost/pricing; length of term; terms unrelated to time or price (List all that apply)?
If length changing
What was the length of the term of the original contract? Sixteen years
What is the length of the extension/renewal? Reduction of 4 years
What is the revised total term of the contract? Twelve years
If cost changing
What was the original value of the entire contract prior to this proposed change? $7,047,278
What is the value of the proposed change? $7,469,673
What is the new/revised total value including change? $14,516,951
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)
This is a first amendment to the original agreement with Panasonic Enterprise Solutions Company (PESCO) for the implementation of an improved and technologically advanced “Welcome Sign” for the Denver International Airport. The original agreement was structured as revenue shared where PESCO and DEN had both made an up front capital investment in the new welcome sign and agreed that a portion of their investments and costs were to be offset with advertising revenues shared proportionally to each entities’ upfront investment. In light of regulatory challenges, an amendment is required to change the contract to a standard design/build contract for PESCO to construct and install the sign and an ongoing managed service contract for future O&M of the “Welcome Sign.” In this new structure, advertising revenue will not be shared with PESCO but instead received fully by DEN for recovery of the airport’s upfront capital investment.