Title
Fixed Based Operator Services
Action
Action:
A. Approve a contract with Modern Aviation, LLC for fixed based operator services for an initial term of ten years, and
B. Authorize the City Manager to renew the contract for up to five, two-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
Haley Gentry, Aviation
Ted Kaplan, Aviation
Explanation
§ This contract is for staffing and expertise to provide Fixed Based Operator (FBO) services including management of hangar leases, fueling, ground handling, and providing amenities to locally based and itinerant aircraft operators at the airport.
§ On August 13, 2024, the city issued a Request for Proposals (RFP); four responses were received.
§ Modern Aviation, LLC best meets the city’s needs in terms of qualifications, experience, cost, and responsiveness to RFP requirements. In addition, Modern Aviation, LLC has a proven history of capital investment across their network. Their proposed Capital Investment Plan aligns with the Airport’s GA Master Plan and supports the Airport’s vision for development of the FBO campus across the terms of the contract.
§ At renewal, potential price adjustments may be considered based on legitimate and justified increases in the cost of doing business. The ability to consider price adjustments also allows the city to accept decreases, if warranted.
§ For these services, Modern Aviation, LLC will receive annual compensation comprising of a $350,000 management fee and a five percent share of net revenues. Modern Aviation will be eligible for an additional one percent Performance Incentive Fee if certain service metrics are met and an additional three to twelve percent tiered Financial Performance Fee dependent on an increase in annual net revenue.
§ These services will generate approximately $7.5 million in net revenue to the Airport.
Charlotte Business INClusion
The City negotiates contract participation after the proposal selection process. Modern Aviation, LLC has committed 15.00% ($13,800,000) of the total operating expenses to certified firms and has identified MWSBE opportunities in the following scopes:
§ Advertising Services
§ Building Maintenance
§ Catering
§ Landscaping & Lawn Maintenance
§ Office Supplies and Equipment
§ Safety Services
§ Uniform Services
Fiscal Note
Funding: Aviation Operating Budget