Contract Request Template (Contracts; IGAs; Leases)
Date Submitted: 11-14-2022
Requesting Agency: Denver International Airport
Division:
Subject Matter Expert Name: Carolina Flores
Email Address: Carolina.Flores@denverfly.com
Phone Number:
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 Contract between the City and County of Denver and The AVE Group, LLC, d/b/a Novo Coffee, concerning the addition of 2 years in recognition of the effects of the pandemic at Denver International Airport.
Amends a kiosk concession agreement with The AVE Group, LLC, doing business as Novo Coffee, to add 2 years for a new end date of 8-1-2029, in recognition of the effects of the pandemic, supply chain issues, and inflation on concessionaires in the process of building kiosks, as a financial relief measure to allow time for vendors to amortize their capital investment at Denver International Airport in Council District 11. No change to other contract terms (201952058/ 202264192). The last regularly scheduled Council meeting within the 30-day review period is on 12-19-2022. The Committee approved filing this item at its meeting on 11-16-2022.
body
Affected Council District(s) or citywide? 11
Contract Control Number: 202264192 201952058
Vendor/Contractor Name (including any “DBA”):
The AVE Group, LLC., dba Novo Coffee
(located in concourse A)
Type and Scope of services to be performed:
This request for an amendment to the agreement between The AVE Group, LLC., dba Novo Coffee Concession Agreement (ACON) and Denver International Airport (DEN) due to significant hardships, such as construction costs, supply chain delays, and aftershocks of the COVID-19 pandemic. As an example, the buildout cost is approximately three (3) times more than the initial proposed cost from back in 2019. Each agreement will be extended by two (2) years from the agreement expiration date.
Location (if applicable): Denver International Airport
WBE/MBE/DBE goals that were applied, if applicable (construction, design, Airport concession contracts):
W/MBE and SBE 100% SBEC / 25% M/WBE
Are WBE/MBE/DBE goals met (if applicable)?
The AVE Group, LLC., 100% SBEC; M/WBE not identified until construction
Is the contract new/a renewal/extension or amendment? amendment
Was this contractor selected by competitive process or sole source?
No - Non-Competitive Amendment. This procurement qualifies for the continuity of service exception under Memorandum No. 8B and will not be competitively procured.
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)? Length of term
If length changing
What was the length of the term of the original contract?
09/24/2021 - 08/01/2027
What is the length of the extension/renewal?
2 years
What is the revised total term of the contract?
09/24/2021 - 08/01/2029
If cost changing
What was the original value of the entire contract prior to this proposed change? N/A
What is the value of the proposed change? N/A
What is the new/revised total value including change? N/A
If terms changing
Describe the change and the reason for it (i.e. compliance with state law, different way of doing business etc.)
This request for an amendment to the agreement between The AVE Group, LLC., dba Novo Coffee Concession Agreement (ACON) and Denver International Airport (DEN) due to significant hardships, such as construction costs, supply chain delays, and aftershocks of the COVID-19 pandemic. As an example, the buildout cost is approximately three (3) times more than the initial proposed cost from back in 2019. Each agreement will be extended by two (2) years from the agreement expiration date.