ADMINISTRATIVE REPORT Date: March 19, 1996 TO: Vancouver City Council FROM: General Manager of Corporate Services SUBJECT: Tender for Travel Agency Services RECOMMENDATION A. THAT Council instruct the General Manager of Corporate Services to initiate a Request for Proposal ("RFP") for the City's business travel requirements to the travel agencies doing business in the Lower Mainland, along the lines described in this report. B. THAT the results of the RFP process, along with staff recommendations, be reported back to Council for consideration and approval. 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. PURPOSE The purpose of this report is to recommend that the City's business travel arrangements again be tendered in the form of a Request for Proposal. The results of that process will be reported to Council for review and approval. BACKGROUND In 1992, City Council engaged the accounting firm of KPMG Peat Marwick Thorne ("PMT") to review the City's travel policies and practices. PMT recommended the appointment of one travel agency to handle all City business travel, in order to achieve economies of scale, to assist with policy enforcement, and to simplify the processing of travel claims generally. - 2 - After an extensive Expression of Interest solicitation and a Request for Proposal ("RFP") process, Council appointed Atlas Worldwide Travel Management as the City's travel agency for a period of three years, commencing on April 20, 1993. DISCUSSION The three-year term for Atlas Travel will expire in April of this year. Following Council's policy of encouraging competitive bidding for acquisition of goods and services, it would be appropriate to again tender the City's business travel requirements. The tender process would be conducted along the following lines: - the City would issue a formal RFP to the travel agencies doing business in the Lower Mainland and advertise the tender in the appropriate manner; - an RFP review group comprised of the travel arrangers from City departments and boards having significant business travel needs (Engineering, Park Board, Police, City Clerk and Corporate Services) would be formed to review the submission material and recommend a travel agency to Council; - the travel agency recommended by the review group would be appointed by Council for a three-year term covered by an agreement with normal safeguards for early termination; and, - the City's business travel requirements would be subject to re- tender after three years. Given that the recommended RFP process may not be completed on or before the expiry of the City's present travel agreement with Atlas Travel, there will likely be a requirement to hold over that agreement on a month-to-month basis pending the selection of a replacement travel agency. CONCLUSION The tender process conducted in 1993 to acquire the services of a travel agency for the City's business travel requirements was a challenging and useful exercise. The tender generated a good deal of interest in the travel community and fostered a healthy competition among the travel agencies that chose to bid. We expect the same conditions to apply this time around. I should note, however, that Atlas Travel has responded to the City's needs over the last three years in a competent, professional manner. The excellent relationship that has developed between our organizations is a compliment to the people involved on both sides of the travel service. * * * * *