1 Date: February 14, 2024
To: Jovan Grogan
Executive Director
Santa Clara Stadium Authority
From: Jenti Vandertuig
Procurement Director
Forty Niners Stadium Management Company LLC
Subject: Recommendation to Amend Agreement with ABM Industry Group, LLC for Janitorial Services at Levi’s Stadium
Recommendation
Recommend approval to execute the second amendment to the agreement with ABM Industry Group, LLC for janitorial services at Levi’s Stadium to extend the term of the agreement on a month-to-month basis that will not exceed six months, commencing April 1, 2024 with thirty calendar days’ advance notice to contractor to terminate the agreement.
Reasons for Recommendation
On January 26, 2017, Forty Niners Stadium Management Company LLC (Stadium Manager) issued a Request for Proposal for janitorial services at Levi’s Stadium and awarded an agreement with ABM Industry Group, LLC for a five year term, beginning April 1, 2017 through March 31, 2022 with an option to extend the agreement for a two year term through March 31, 2024.
Stadium Manager exercised the option to extend the agreement through March 31, 2024. This recommendation was reviewed and approved by the Santa Clara Stadium Authority (SCSA) prior to the execution of the agreement.
Janitorial services are used for year-around daily cleaning services; annual deep cleaning; cleaning at seating bowl events and games which consists of pre-event, event, and post-event cleaning when the seating bowl is utilized for the event; cleaning at catered events facilitated by Special Events team, such as proms, parties, receptions, etc., and for ancillary services such as parking lot cleaning, and window washing.
In preparation to conduct a formal solicitation, Stadium Manager began working on the project in August 2023 by developing a list of prescriptive cleaning services required at the Stadium.
Stadium Manager representatives began conducting extensive outreach and benchmarked with other sports facilities around the United States including reviewing the janitorial services RFP
2 issued by the City of Santa Clara. On October 10, 2023, Stadium Manager conducted a three hour on-site, non-binding and non-committal open house and invited firms providing janitorial services to participate in an open dialog with Stadium Manager about our needs, tour the Stadium and learn about the marketplace to plan the development of the solicitation process.
These discussions spanned over a period of two months through December 2023.
Stadium Manager began developing the scope of work and requirements with a plan to issue the solicitation in January 2024. However, given the remarkable post-season success of the Forty Niners combined with the extensive work required to complete the annual SCSA budgeting process, it is anticipated that Stadium Manager will release the formal solicitation for janitorial services and bring forth a recommendation to the SCSA Board in June 2024. Therefore, an extension of the current agreement on a month-to-month basis that will not exceed six months, with thirty calendar days’ notice to contractor to terminate the agreement is recommended for continuity of business to keep the Stadium operational. The revised Exhibit B – Contractor Compensation and Fees – Second Renewal Term provides the hourly rates to be paid for the services.
Fiscal Impact
The monthly expense for the routine ABM cleaning services is in the range of $110,000 - $120,000 per month, which is charged 50% to SCSA and 50% to StadCo. There are separate charges for NFL and Non-NFL events, which are charged directly to the events. Accordingly, the estimated cost to the SCSA during the recommended extension period would be approximately $57,500 per month and such cost will be included in the FY24/25 budget scheduled for review by the SCSA Board in March 2024.
Next Steps
Once approved, Stadium Manager will forward a copy of the executed amendment to the SCSA.
Submitted By: Date:
Jenti Vandertuig, Procurement Director