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RESOLUTION APPROVING AWARD OF CONTRACT NO. RFP-01555 TO THE PRIVATE SUITE MIA, LLC FOR THE LEASE, DEVELOPMENT, AND OPERATION OF REMOTE VIP OPERATIONS FOR COMMERCIAL AIRLINES FLIGHTS AT MIAMI INTERNATIONAL AIRPORT FOR THE MIAMI-DADE AVIATION DEPARTMENT WITH ESTIMATED REVENUE OF $16,000,000.00 FOR THE 20 YEAR TERM; AND AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE SAME FOR AND ON BEHALF OF MIAMI-DADE COUNTY AND TO EXERCISE ALL PROVISIONS OF THE CONTRACT, INCLUDING ANY CANCELLATION AND EXTENSION PROVISIONS, PURSUANT TO SECTION 2-8.1 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA AND IMPLEMENTING ORDER 3-38

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. This Board approves award of Contract No. RFP-01555 to The Private Suite MIA, LLC, in substantially the form attached and made a part hereof, for the lease, development and operation of remote VIP operations for commercial airlines flights at Miami International Airport with estimated revenue of $16,000,000.00 for the 20 year term.

Section 2. This Board authorizes the County Mayor or County Mayor�s designee to exercise all provisions of the contract, including any cancellation and extension provisions, pursuant to section 2-8.1 of the Code of Miami-Dade County, Florida and Implementing Order 3-38.

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Date:
To: Honorable Chairman Oliver G. Gilbert, III
and Members, Board of County Commissioners

From: Daniella Levine Cava
Mayor

Subject: Recommendation for Approval to Award Remote VIP Operations for Commercial Airline Flights at MIA

STAFF RECOMMENDATION
Summary
This item is recommending the lease, development, and operation of the Remote VIP Operations for Commercial Airline Flights at Miami International Airport (MIA), to be hosted at the historic former Pan American Regional Headquarters, Building 874. The Remote VIP Operations shall provide client-centric services for high-profile commercial airlines travelers who wish to avoid congestion and delays of regular MIA terminal passenger processing and who seek an upscale traveling experience. Approval of this item will allow the Miami-Dade Aviation Department (MDAD) to lease the building under a development lease agreement, to be further adapted and reused for Remote VIP Operations, through private capital. The former Pan American Regional Headquarters building will be turned into a profitable revenue generating, client-focused facility with a design that will demonstrate architectural innovation, creativity, acknowledgement of the historically designed facility, and excellence at no cost to the County. It is estimated the County will receive revenue in the amount of $16,000,000 for the 20-year term of the contract.

This contract provides a unique premium experience that embraces global sophistication and local culture, with efficiency, safety, privacy, and convenience. The target demographic clientele are frequent affluent travelers who value status and seek out luxury amenities and access to upgrade travel options to avoid the congestion that is often experienced by conventional passengers traveling through the main terminals at MIA. After checking in at the new remote terminal and being screened by the Transportation Security Administration (TSA), clients will be driven directly to their commercial flight at any of MIA�s concourses and will board the plane directly.

Recommendation
It is recommended that the Board of County Commissioners (Board) approve a competitive lease development contract award, Contract No. RFP-01555, Remote VIP Operations for Commercial Airlines Flights at MIA, to The Private Suite MIA, LLC (Private Suite) for MDAD with an estimated revenue of $16,000,000 for the twenty-year term. Private Suite possesses the necessary experience and expertise that will be essential for project implementation and has operated a private terminal at Los Angeles International Airport (LAX) since 2017 that is known for catering to celebrities and other well-established customers. In addition, Private Suite is leasing one of the buildings at Hartsfield-Jackson Atlanta International Airport (ATL) to provide private terminal service which is anticipated to commence by the end of this year. With the opening of the Private Suite at ATL, it will mark Atlanta as the second location for the Private Suite after LAX. Private Suite is in discussions with Port Authority of New York and New Jersey.

The Small Business Enterprise measures, which may include Airport Concession Disadvantaged Business Enterprise (ACDBE), will be determined after lease development executions, but prior to start of County-approved concessions under the lease development agreement. Private Suite will be required to submit the design and construction package for the improvements to the premises to Small Business Development for review and determination of appropriate small business program measures. Solicitations issued by Private Suite for the development and operation of the premises will be reviewed for sustainability and environmental considerations prior to advertisement. Private Suite will conduct environmental inspections and mitigations and meet County code using the historic building renovation

architect team. Preservation and sustainability will be key features for consideration for the build out, and recycling will be included in the operations of the facility. Private Suite plans to use all-electric fleet of vehicles for its operations. The business model for the services provided by Private Suite is intended to get people off private jets and use commercial flights, which can have a huge positive impact on the environment.

Background
Miami International Airport (MIA) is the County�s leading economic engine, with an annual economic impact of over $30 billion. MIA offers more flights to Latin America and the Caribbean than any other U.S. airport and is currently the nation�s busiest airport for international passengers and in the top 10 in the U.S. for overall passengers. In 2019, MIA processed close to 46 million domestic and international passengers. In 2022, the total number of passengers was 50.64 million, which was the best year in MIA�s history. MIA is also the number one airport in the U.S. for international cargo operations. The airport is committed to delivering an exceptional passenger experience by providing a variety of concessions, business services, and amenities, both within and beyond its facilities.

The scope of services includes the development of the premises and operation of the services to reflect the innovativeness in new and current airport trends. Proposed amenities include vehicle valet services, secure parking for client owned vehicles, luggage check in services, private rooms with sleeping accommodations, bathrooms, showers, and complementary toiletries, conference rooms and dedicated meeting spaces, private/quiet public spaces, spas, play areas for children, pet relief areas, upscale dining options representative of local and international flavors, full-service and self-service bars with premium liquors, beers, wine, and non-alcoholic beverages, outdoor deck, wi-fi services, airline and worldwide tourism concierge services, communal television viewing areas, FIDS (flight information displays), electronic device charging stations/solutions throughout, TSA screening area, TSA and U.S. Customs and Border Protection (CBP) back of house facilities, limousine services, and direct access to Airside Operations Area and CBP area.

Scope
Miami International Airport is located within District 6, which is represented by Commissioner Kevin Marino Cabrera; however, the scope of this item is countywide in nature.

Fiscal Impact/Funding Source
There is no cost to the County. The fiscal impact for the twenty-year term is estimated at $16,000,000. The Annual Rent shall consist of either the Minimum Annual Guarantee of $600,000 (subject to applicable CPI adjustments annually) payable in equal monthly installments, or 7.5 percent of gross revenue, whichever is greater, for any given month during the term of the contract. There is no existing or previous County contract for these services.

Department Estimated Revenue Funding Source Contract Manager
MDAD $16,000,000 Revenue Generating Sylvia Novela
Total: $16,000,000

Track Record/Monitor
Natalya Vasilyeva of the Strategic Procurement Department is the Procurement Contracting Manager.

Delegated Authority
If this item is approved, the County Mayor or County Mayor�s designee will have the authority to exercise all provisions of the contract, including any cancellation or extension provisions, pursuant to Section 2-8.1 of the County Code and Implementing Order 3-38.




Vendor Recommended for Award
A Request for Proposals was issued under full and open competition. Three proposals were received in response to the solicitation, including one �No Bid.� More than 6,500 vendors were invited to participate in the competitive solicitation process via BidSync; 136 vendors viewed the solicitation notification, and 18 downloaded the solicitation packet.

Pursuant to Resolution No. R-477-18, the highest-ranked proposer is recommended in accordance with the method of award per the solicitation and is non-local. The lack of local vendor participation is attributable to the complexity and nature of the services being procured. To encourage vendor participation, prior to the advertisement, firms identified through market research were contacted to survey if they were able to provide the services required, and the scope of work was posted on the County�s Future Solicitations website for the vendor community to preview the upcoming contracting opportunity. In addition, staff held an Industry Day with the vendor community to gather feedback, learn market best practices related to the nature of project, and provide vendors with opportunity to ask questions and exchange ideas.

Vendor Principal Address Local Address* Number of Employee Residents Principal
1) Miami-Dade
2) Percentage*
The Private Suite MIA, LLC 6871 W Imperial Highway Los Angeles, CA None 1 Joshua Gausman
0.54%
*Provided pursuant to Resolution No. R-1011-15. Percentage of employee residents is the percentage of vendor�s employees who reside in Miami-Dade County as compared to the vendor�s total workforce.

Vendors Not Recommended for Award or Did Not Bid
Vendor Local Address Reason for Not Recommending
PRE, LLC dba Pangiam No Evaluation Scores/Ranking
B Away Travel, LLC Yes No Bid*
*A �No Bid� means the vendor responded indicating that it will not be providing an offer.

Due Diligence
Pursuant to Resolution No. R-187-12, due diligence was conducted in accordance with the Strategic Procurement Department�s Procurement Guidelines to determine vendor responsibility, including verifying corporate status and that there are no performance and compliance issues through various vendor responsibility lists and a keyword internet search. The lists that were referenced included convicted vendors, debarred vendors, delinquent contractors, suspended vendors, and federal excluded parties. There were no adverse findings relating to vendor responsibility.

Applicable Ordinances and Contract Measures
� The two percent User Access Program provision does not apply.
� The Small Business Enterprise measures, which may include Airport Concession Disadvantage Business Enterprise (ACDBE), will be determined prior to start of County-approved concessions.
� If the total value of the design and construction is over $200,000, the firm shall submit the design and construction package to Small Business Development for review and determination of appropriate small business program measures.
� The Responsible Wages apply as the services are covered under the Ordinance.


� The Labor Peace Resolution applies. A signed Labor Peace Agreement was submitted by the firm at time of proposed submission.



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Jimmy Morales
Chief Operations Officer