Title
Consider/Discuss/Act on a Resolution Authorizing the City Manager to Execute a Contract Amendment with Aerocloud Systems Inc. for the McKinney National Airport Commercial Terminal Common Use System (AI2250)
Summary
COUNCIL GOAL: 3.1: Implement initiatives and strategies, including public-private partnerships, to attract and expand corporate and commercial aviation including the viability of passenger service.
MEETING DATE: August 4, 2026
DEPARTMENT: Airport
CONTACT: Kenneth Carley, A.A.E., Airport Director
Recommended Action
• Staff recommends Council approve the Resolution.
Item Summary
• This Resolution authorizes the City Manager to execute a new Commercial Addendum to the Framework Agreement dated May 5, 2026, with AeroCloud Systems Inc. that terminates and replaces the Previous Commercial Addendum effective retroactively to the original Commencement Date of 12 May 2026.
• Following execution of the agreement, it was determined that additional Flight Information Display System (FIDS) monitors were needed in the baggage claim area and at Gates 5 and 6 to provide operational flexibility and redundancy during regular operations.
• The New Addendum keeps the same 5-year Initial Service Term and core scope (CUPPS, FIDS, PPSM) and adds 9 additional AeroCloud FIDS Boxes (30 total vs. 21 in the prior version).
• All other Framework Agreement terms, including Annex 1 (Support Services) and Annex 2, remain unchanged.
• This Resolution and the related new Commercial Addendum increases the total amount of the Framework Agreement Contract from $426,186.18 to $500,853.45.
Background Information
• The scope of the project is to provide a complete solution for common use passenger processing including equipment, software, installation, support and maintenance.
• The original Commercial Addendum covered hardware and subscription services (CUPPS, FIDS, PPSM) for 18 workstations and related peripherals together with 21 flight information display systems ("FIDS") at a 5-year subscription cost structure.
• This new Commercial Addendum expands the number of flight information display systems ("FIDS") from 21 boxes to 30 boxes.
Financial Summary
• Base Subscription Services fees increase by $13,899.60 per year across all five years compared to the original Commercial Addendum, reflecting the expanded FIDS hardware capacity:
|
Year |
Original Commercial Addendum |
New Addendum |
|
Year 1-3 (each) |
$63,274.00 |
$77,173.60 |
|
Year 4 |
$65,804.96 |
$79,704.56 |
|
Year 5 |
$68,437.16 |
$82,336.76 |
• Hardware & Shipping Fees increase by $2,896.27 ($82,143.06 -> $85,039.33), driven by the addition of 9 AeroCloud FIDS Boxes ($2,681.73) and associated shipping ($214.54); Implementation Services remain unchanged at $19,979.00.
• Year 1 ($208,291.93) will be funded from CIP project AI2250.
• The remaining contract costs will be included in the Airport's operating budget in the applicable future fiscal years.
• Upon approval of this item, $1,963,053 will remain in AI2250.
BOARD OR COMMISSION RECOMMENDATION:
• N/A