South Coast Air Quality Management District

Execute Contract for Travel Agency Services

SYNOPSIS: 

On March 1, 2002, the Board authorized the issuance of an RFP for travel agency services. On June 7, 2002, the Board approved the award for travel agency services to Managed Air Resources for one year with an option to renew for two additional years. On November 11, 2002, the contract with Managed Air Resources was terminated due to performance issues. This action is to award a contract to the second ranked bidder, The Bonneville Company, for one year with an option to renew for two additional years. Based on AQMD’s current travel volume, the estimated cost for travel agency services is approximately $20,000 per FY.

COMMITTEE: 

Administrative, November 8, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with The Bonneville Company for one year with an option to renew for two additional years.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

An external travel agency handles travel arrangements for AQMD-related travel. At its March 1, 2002 meeting, the Board approved issuing an RFP to provide travel agencies the opportunity to compete for AQMD's travel business. At the April 12, 2002 RFP deadline, nine proposals were received. These proposals were reviewed and evaluated according to established AQMD guidelines. Of the nine bids two were found to technically qualify; The Bonneville Company ranked first and Managed Air Resources ranked second. When the cost section of the proposal was evaluated and combined with the technical scores, Managed Air Resources was found to have the highest overall score. On June 7, 2002, the Board approved the awarding of the contract to Managed Air Resources.

After the execution of the contract and a two-month implementation period, it became apparent that Managed Air Resources could not provide the level of service that was stated in their proposal and which is required by AQMD. Based on the level of service required by AQMD, the contract with Managed Air Resources was terminated for convenience, which was allowed under clause six of the contract.

For FY 2002-03, it is estimated that AQMD's travel and related expenditures will be approximately $200,000.

Resource Impacts

The cost of the contract with The Bonneville Company is $40 per telephone reservation and $15 per web-site reservation. Managed Air Resources charged $20 per reservation. From July 1999 through July 2002, Adelman Travel provided travel agency services to AQMD. In the last year of the contract with Adelman Travel, service charges for reservations increased to $40 per reservation.

Due to changes in the airline industry, travel agencies are now assessing a per transaction fee for each airline ticket purchased. Based on the current level of reservations being booked and applying a $40 transaction fee, the estimated costs to AQMD for transaction fees are estimated to be approximately $20,000 annually. If website reservations are utilized, these fees could be considerably lower. All other travel-related service costs will be paid through commissions received from the providers of travel and lodging.

Sufficient funds have been included in the FY 2002-03 Budget to cover estimated AQMD travel and lodging expenses.

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