Item C01BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: February 16, 2011 Division: County Administrator
Bulk Item: Yes
Department: Airports
Staff Contact Person/Phone #: Peter Horton, 809 -5200
AGENDA ITEM WORDING: Approval to waive Purchasing Policies and Procedures (Chapter 4,
Purchase of Professional Services), and accept the attached proposal from Sixel Consulting Group, Inc., to
assist us with Southwest Airlines Air Service Development at the Key West International Airport.
ITEM BACKGROUND: Although I am not a fan of waiving Purchasing Policies and Procedures, however,
when it makes financial sense to do so, I will recommend it. Such is the case with this proposal. The amount of
this proposal is relatively small ($10,500), and there are three ways that we could acquire these services: 1) As
per Chapter 4 of PPP, routinely this would require a request for qualifications to be advertised, ranking of the
responding firms, bringing three of them before the BOCC, negotiating a contract, and bringing that contract
back to the BOCC for approval. Not only is this procedure very time consuming, it is also very expensive. It
would cost at least an estimated $2,000 to do this, i.e. publication costs, staff time, etc. 2) We could simply
give it to our General Airport Consultant, URS, and ask them to hire Sixel Consulting as a subconsultant.
URS's fee to do this is generally about 15% of the total cost of the work. In this case, their fee would be almost
$1,600. 3) We could do what we are requesting to do now, waive PPP, because it would save both time and
money, and we will be working with Michael Mooney, who has worked many times before with both The
Florida Keys Marathon and the Key West International Airport. Mr. Mooney has done studies for us in the
past, including air service analysis at both airports.
PREVIOUS RELEVANT BOCC ACTION: None on this item.
CONTRACT /AGREEMENT CHANGES: N/A
STAFF RECOMMENDATION: Time is short; we expect the AirTran/Southwest merger to be approved
within the next 90 days, and we have no guarantee at this point, at least, that Southwest Airlines will serve us
after they merge with AirTran. It is imperative that we do all we can to convince Southwest that Key West and
the Lower Keys is a viable, expanding, air traffic market. Therefore, I strongly recommend approval.
TOTAL COST: $10 INDIRECT COST: NA BUDGETED: Yes
DIFFERENTIAL OF LOCAL PREFERENCE: NA
COST TO COUNTY: None SOURCE OF FUNDS: FDOT /Operating
COST TO AIRPORT: $5,250.
COST TO PFC: None
REVENUE PRODUCING: Yes X potentially, with increased passenger revenue No
AMOUNT PER YEAR: NA
APPROVED BY: County Attorney X OMB/Purchasing Risk Management
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM #
Southwest Airlines Air Service
Development Proposal
Presented to:
Key West International Airport
by:
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�+ Sixe) Consulting Group, Inc.
Air Transportation and Airport Consulting services
Southwest Airlines Air Service Development Proposal
Key West International Airport • Sixel Consulting Group, Inc.
January 2011 • Page 1 of 4
Key West, Florida
Client:
Peter Horton
Director of Airports
Key West International Airport
3491 South Roosevelt Blvd.
Key West, FL 33040
www.monroecounty - fl.gov
Horton - peter @monroecounty - fl.gov
phone: 305.292.3518
fax: 305.292.3578
Consultant:
Mark Sixel
President
Sixel Consulting Group, Inc.
1 180 West 15th Ave
Eugene, OR 97402
www.sixelconsulting.com
mark @sixelconsulting.com
phone: 541.341.1601
fax: 541.341.1603
Lead Consultant:
Michael Mooney
Air Service Strategy and Development
Consultant
michael.mooney@sixelconsulting.com
phone: 303.842.9496
Sixel Consulting Group ( "Consultant ") proposes to work with Key West International
Airport ( "Airport ") on a project to demonstrate to Southwest Airlines the potential of the
Key West market and thus retain and expand existing AirTran service at Key West after
the Southwest /AirTran merger occurs. The project will include a number of components,
detailing the Airport's catchment area and demographics, historic and current inbound
leisure traffic demand, historical air service, competing air service at nearby airports and
comparisons to other similarly sized markets around the country.
Consultant will complete each of the following tasks:
Southwest Airlines Air Service Development Proposal
Key West International Airport • Sixel Consulting Group, Inc.
January 2011 • Page 2 of 4
1. Determine and map the Airport's catchment area, providing specific
demographics of the area including, but not limited to, population
growth /decline, unemployment and economic background information.
2. Define the airport's inbound traffic flows and points of origin. Outline the metrics
of the Key West and Florida Keys leisure market and the challenges to accessing
that market due to the poor highway access from the Florida mainland.
3. Consultant will prepare a specific market analysis for each proposed market, with
projections of the number of potential passengers, revenues, average fares, and
average yields.
4. Consultant will analyze passenger traffic and revenue and average fare data
to /from Airport over the prior six -year period. Consultant will analyze seasonality,
day of week and time of day demand for local traffic over the prior two year
period.
5. Consultant will provide traffic, revenue, cost and profitability forecasts for
Southwest Airlines serving the possible Key West routes.
6. At Airports request, Consultant will contact Southwest Airlines on behalf of Airport
and arrange headquarters meeting.
7. Consultant will travel with Airport to airline headquarters to present findings as
required.
8. Consultant will provide follow -up information as desired by Southwest Airlines that
is requested as a direct result of information provided by Consultant, at the
discretion of Consultant.
9. Consultant will provide all other pertinent information not specified above that
Consultant deems necessary to complete this section of proposal.
Southwest Airlines Air Service Development Proposal
Key West International Airport • Sixel Consulting Group, Inc.
January 2011 • Page 3 of 4
Consultant is prepared to begin work immediately, with a timeline negotiated between
the parties before the agreement is signed.
Proiect Costs:
Southwest Airlines Case Study and Presentation to Airline: $10,500
Mayor Heather Carruthers
Key West International Airport
Dated this day of , 2011
Mark Sixel (signature)
Sixel Consulting Group, Inc.
Dated this day of , 2011
MO ECOUNTY ATTORN
VED AS TO
PED
ASSISTi4Nf COU TY ATTORNEY
Date _ _
Southwest Airlines Air Service Development Proposal
Key West International Airport • Sixel Consulting Group, Inc.
January 2011 • Page 4 of 4