Title
Airport Baggage Handling System Automatic Tag Reader Equipment
Action
Action:
A. Approve the purchase of baggage handling system automatic tag reader equipment by the sole source exemption,
B. Approve a contract with SICK Inc. for the purchase of baggage handling system automatic tag reader equipment for a term of three years, and
C. Authorize the City Manager to renew the contract for up to two, one-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
Jack Christine, Aviation
Sole Source Exemption
§ NC General Statute Section 143-129(e)(6) provides that formal bidding requirements do not apply when:
- Performance or price competition are not available;
- A needed product is available from only one source or supply; or
- Standardization or compatibility is the overriding consideration.
§ Sole sourcing is necessary for this contract due to the need for standardization with existing Airport equipment.
§ City Council approval is required for any purchases made under the sole source exception.
Explanation
§ Aviation's baggage handling infrastructure is comprised of proprietary hardware and software configured for the airport’s baggage scanning and tracking needs.
§ SICK Inc. is the manufacturer of this specialized equipment, and standardization is required to maintain performance standards and ensure compatibility with existing equipment.
§ 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.
§ Annual expenditures are estimated to be $150,000.
Charlotte Business INClusion
Sole sourcing was required for this contract due to the need for standardization with existing Airport equipment. Sole source contracts are exempt from CBI Program goals, as these contracts do not involve a competitive bidding process and do not present opportunities for subcontracting. This aligns with what is required by NC General Statute Section 143-129(e)(3).
Fiscal Note
Funding: Aviation Capital Investment Plan