AZSTA denies Centerplate’s request for new bid process

The Arizona Sports & Tourism Authority is rebuffing requests by concessions vendor Centerplate for the chance to bid again on a new $26 million contract for the concessions business at University of Phoenix Stadium.

AZSTA awarded the contract to a new business set up by the Arizona Cardinals to handle concessions at the Glendale stadium, starting in August. Rojo Hospitality beat out Centerplate and Aramark Corp. with a bid that included promises of bringing in extra revenue through events outside UOP Stadium during the football season, as well as more special events organized in conjunction with Cardinals sponsors.

Connecticut-based Centerplate wants the bid process to be redone. Centerplate attorney Marc Silver wrote to AZSTA on Thursday saying the advantages cited by AZSTA in picking Rojo improperly included money promised from areas outside the stadium.

“AZSTA must reissue the RFP to allow all bidders to present proposals with ‘additional income,’” Silver said in the letter.

AZSTA general counsel Sarah Strunk wrote to Centerplate on Friday saying the request for proposals on the concessions contract did ask for additional income ideas from bidders. Her letter said Rojo guaranteed additional revenue, while Centerplate said it would look for additional revenue.

Strunk said the Rojo bid was within the parameters of the contracting process. “No proposer went beyond the scope of the RFP,” she wrote.

Centerplate has been the concessions vendor at UOP Stadium since it opened in 2006. AZSTA picked Rojo for the new concessions contract in January and is finalizing that deal this month.

Centerplate wrote to AZSTA on Jan. 29 saying it would match Rojo’s bid. AZSTA turned down that offer.

Centerplate general counsel Keith King also questioned in that Jan. 29 letter whether the Cardinals or Aramark was unfairly allowed look at bidding information.

Centerplate asked for and was granted extra time to submit its final bid for the UOP contract in December. In agreeing to that request, AZSTA also gave the Cardinals and Aramark a chance to resubmit their bids. Strunk said all three vendors were treated the same and received the same access to bid information because of Centerpoint’s request to amend its offer.

The Cardinals are the main tenant at the stadium and have approval and refusal rights related to some contracts. AZSTA officials said those review powers were not in place for this bid because the Cardinals essentially were among the bidders.

Strunk said it would be unfair and could prompt legal challenges if the stadium authority were to give Centerplate another bidding opportunity after awarding the contract to Rojo.

King’s Jan. 29 letter hinted at possible legal action by Centerplate in the matter.

The stadium authority funds UOP Stadium, helps Valley cities with Cactus League ballparks, and offers money for tourism and youth sports. It is funded via Proposition 302, a referendum approved in 2000 that raised rental car and hotel taxes to fund the Cardinals new stadium as well as the Cactus League.

The poor economy has hurt those revenue streams, prompting a $10 million funding shortfall for AZSTA. The authority tried to award the concessions contract to the Cardinals last year without a bidding process, but a competitive procurement was set up after concerns were voiced by the Fiesta Bowl and state lawmakers.

The Fiesta Bowl and some legislators don’t like the concessions contract going to a Cardinals offshoot, and they want a review or audit of the award. AZSTA Chairman Brad Wright and CEO Tom Sadler say the process was fair, and Rojo had the best bid. The Fiesta Bowl and its allies at the Legislature worry about the relationships among the Cardinals, AZSTA and other vendors, considering the Cards now essentially are both the stadium’s main tenant and a vendor.

Rojo was established last year by Cardinals President Michael Bidwill and the team specifically to handle concessions at the stadium.

The Cards and Fiesta Bowl are longtime rivals, and the bowl committee is involved in legal and financial disputes with AZSTA.

Similar Posts:

• Goldwater Institute request denied in Glendale records battle
• Other teams could gain from Warner exit
• Boost your business with council tenders
• NY Circular Letter on Bonus Recapture
• 944 Media to host ‘the place to be’ Super Bowl weekend