ADMINISTRATIVE REPORT Date: June 11, 1996 TO: Vancouver City Council FROM: General Manager of Corporate Services SUBJECT: Proposal No. 28-96-01: Travel Agency Services RECOMMENDATION THAT Atlas Worldwide Travel Management be appointed as the City's travel agency for a second three-year term commencing on the date of approval of this recommendation, subject to a contract satisfactory to the Director of Legal Services. GENERAL MANAGER'S COMMENTS The General Manager of Corporate Services RECOMMENDS approval of the foregoing. COUNCIL POLICY On June 23, 1992, City Council instructed the Director of Finance to tender the City's business travel requirements on a formal basis. Council also directed that the selected travel agency be appointed for a term of three years and that the appointment be reflected in an agreement with normal safeguards for early termination. DISCUSSION The closing date of this call for proposals on the City's travel requirements was April 22, 1996. Eight proposals were received from the following travel agencies: - Amex Canada Inc. - Atlas Worldwide Travel Management - BCAA Corporate Travel Services - Carlson Wagonlit Travel - Distinctive Travel Services Inc. - Hume Travel Corporation - North South Travel and Tours Ltd. - Uniglobe Seymour Travel Inc. A review group comprised of the travel arrangers from the City departments and boards having significant travel needs (Engineering, City Clerk, Police, Park Board and Corporate Services) was formed to review the proposal material and recommend a travel agency to Council. Copies of the proposals are on file with the City Clerk should members of Council wish to review this material. The evaluation of proposals was conducted under the following categories: 1. Proposal Material The evaluation of proposals took into consideration the travel agencies responses to the City's proposal call in a number of areas, including verification of authority to travel, compliance monitoring of the City's travel policy, specific service requirements, management reporting, administrative matters such as manner of payment, and general travel agency information. The staff review group determined that Atlas Worldwide Travel Management was superior in this category. Several agencies offered revenue sharing or cost rebate mechanisms which are tied to cost savings targets or air fare dollar volumes. One agency offered reimbursement of all hotel and car commissions. However, each of these offerings are subject to conditions which, in our opinion, would minimize or eliminate the potential savings in the City's travel costs over the three-year term of the contract. Consequently, the staff review group decided that this factor should not be taken into consideration in the evaluation process. 2. Oral Presentation The oral presentation part of the evaluation process gave the staff review group an opportunity to obtain a first-hand impression of the people the City would be dealing with at each agency. The staff review group also used a list of prepared questions to assist with the comparison of all of the agencies. The information obtained from this part of the evaluation process was combined with the outcome of the evaluation of the proposal material to arrive at an overall determina-tion of which travel agency would best be able to meet the City's requirements as set out in the RFP, and also provide quality service in a friendly and competent manner. The consensus of opinion of the staff review group is that Atlas Worldwide Travel Management is best able to provide the required travel agency services to the City. CONCLUSION After reviewing the proposals and hearing presentations from each of the travel agencies, the staff review group is unanimous in recommending the appointment of Atlas Worldwide Travel Management as the City's corporate travel agency for a second three-year term, noting that Atlas Worldwide Travel Management has responded to the City's needs over the last three years in a competent, professional manner. * * * * *