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Awarded contract·Municipality of Skagway·Alaska

Tour Broker Operation

Won by M&M Tours$8MSingle Award
Contract source

Awarded vendors

  • M&M Tours

Description

The Municipality of Skagway is seeking a qualified tour‑broker to operate a tour brokerage system on municipal property, selling a variety of local tour products (bike, helicopter, horse, bus/van, etc.) to visitors. The broker will lease existing kiosks on Broadway Street, Broadway Dock, and Ore Dock, pay market‑based rent, cover all utilities, collect and remit sales tax, and remit at least 1 % of gross revenue to the municipality annually. A 25 % commission cap on vendor sales, staffing requirements tied to ship arrivals, and strict conflict‑of‑interest prohibitions are included. The contract is a three‑year term (April 15 2024 – Oct 31 2027) with yearly performance evaluations and optional renewal at the municipality’s discretion. The award was made to M&M Tours.

Attached files

Key dates

Bids closed
3/1/2024
Contract modified
2/22/2024
Starts
4/15/2024
Ends
10/31/2027Renews
Duration
3 years

Last updated

Details

Award type
Single Award
Procurement
Full and Open Competition
Industry
Hospitality and Tourism
NAICS
561510

Contract value

$8,000,000

No explicit contract value is disclosed. To estimate, consider Skagway’s seasonal tourism (approximately 300,000 visitors annually). If the broker captures modest tour sales averaging $30 per visitor, gross annual revenue could be around $9 million. The municipality’s minimum 1 % share would be $90,000 per year, and the broker’s commission ceiling (25 %) would yield roughly $2.25 million in commission revenue. Adding market‑rate rent for three kiosk locations (estimated $30,000‑$50,000 per year) and utilities, total annual operating cost for the broker might be in the $2.5‑$3 million range. Over a 3‑year term, the contract’s economic exposure could be roughly $7‑$9 million. Therefore a reasonable ball‑park contract value is about $8 million.

AI estimate from the award documents

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