REQUEST FOR PROPOSALS PACKAGE #2 SPECIALTY BRANDED COFFEE KIOSK PACKAGE WEST. RFP No

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1 REQUEST FOR PROPOSALS PACKAGE #2 SPECIALTY BRANDED COFFEE KIOSK PACKAGE WEST RFP No October 27, CITY AND COUNTY OF DENVER DEPARTMENT OF AVIATION

2 NOTICE OF REQUEST FOR PROPOSALS PACKAGE #2 SPECIALTY BRANDED COFFEE KIOSK PACKAGE WEST DEPARTMENT OF AVIATION CITY AND COUNTY OF DENVER DENVER INTERNATIONAL AIRPORT Denver, Colorado October 27, 2016 DESCRIPTION The City and County of Denver, Department of Aviation, seeks a National, Regional or Local Gourmet Specialty Coffee Kiosks for use by Airport passengers as further described in this RFP. Through this opportunity City seeks to provide a first class dining service at value pricing to all airport patrons, innovative facility designs complimenting DEN s brand identity, and optimization of DEN s non-airline revenues. Interested parties are encouraged to respond to both Specialty Coffee Packages, however, a single proposer may not be awarded both packages. PROPOSAL SUBMITTAL All proposals must be received by 2:00 PM MST Thursday January 19, 2017 and delivered to the project manager, Cecilia Lawson at: Denver International Airport 8500 Peña Boulevard Airport Office Building, Suite 8810 Denver, Colorado (303) Proposals received after this time are non-responsive. DOCUMENTS AVAILABLE This RFP and other related information are only available on-line at beginning Thursday, October 27, Additionally, City will post all questions and answers at this site. It is the responsibility of the proposers to frequent the site to obtain up-to-date information. MANDATORY PRE-PROPOSAL CONFERENCE AND SELF-GUIDED TOUR A MANDATORY pre-proposal conference explaining the referenced concession opportunity will be held on Thursday, November 17, 2016 at 2:00 PM MST, in the City Conference Room, Denver International Airport, 8500 Peña Blvd., Denver, Colorado At this conference, City representatives will explain the opportunity and set out the City s expectations. To ensure transparency, all questions asked to City representatives must be submitted in writing and will be posted at the site listed above. City representatives will not answer any telephone inquiries about the RFP. A SELF-GUIDED TOUR will be conducted from 8:00 AM to 10:00 AM on Thursday, November 17, This will be your only opportunity to visit the space(s). All parties attending the site tour, if not already badged at DEN, must pre-register with security clearance information in accordance with the instructions as detailed on page 8 of the RFP document. Badges can be picked up at the Airport Office Building starting at 7:30 AM, in SECTION I INSTRUCTIONS TO PROPOSERS 2 October 27, 2016

3 order to gain access to locations beyond security. Event staff will be located at each in-line location to assist proposers in gaining access to the back of the house operations. Kiosk locations will be clearly marked. Event staff is not there to answer questions, please take this time to formulate and write down your questions to be presented at the Pre-Proposal Conference. Please note any answers to questions not in writing and posted to the website are considered unofficial and have no merit. PROPOSAL EVALUATION City will only evaluate submitted proposals meeting the minimum requirements and qualifications set forth in this RFP. Qualified Airport Concession Disadvantaged Business Enterprises (ACDBEs) and/or qualified Small Business Enterprises (SBEs) are encouraged to apply for this concession opportunity. An ACDBE goal of 33% and an MWBE buildout goal of 25% apply to this concession opportunity. City s bases responsiveness determinations on information provided by the proposer in its proposal and other sources deemed valid by City. This opportunity will not be awarded until all investigations of the proposing entity, entities comprising the proposing entity, owners (of any tier), and officers ( Proposing Entity ) City deems necessary are completed. By submitting a proposal, the Proposing Entity agrees to permit and cooperate with such investigations. The Chief Executive Officer, of the Department of Aviation ( CEO ) reserves the right to reject any or all proposals, to waive irregularities and technicalities, to re-advertise, to provide the services, or to otherwise proceed in the best interest of the City. The CEO may, at their sole discretion, modify or amend all provisions herein. Neil Maxfield Senior Vice President for Concessions This notice will be published on October 27, 2016 in the following publications: Denver Post The following publications have received notice of this advertisement: Airport Revenue News Airport Council International Airport Minority Advisory Council International Council of Shopping Centers The Moodie Report Local Chambers of Commerce SECTION I INSTRUCTIONS TO PROPOSERS 3 October 27, 2016

4 Contents SECTION I. INSTRUCTIONS TO PROPOSERS... 7 A. OVERVIEW... 8 B. THIS IS A NON-EXCLUSIVE OPPORTUNITY... 8 C. MANDATORY PRE-PROPOSAL CONFERENCE AND SITE VISIT... 9 D. ADDENDA E. MINIMUM QUALIFICATIONS F. PROPOSAL SUBMITTAL DATE, TIME AND PLACE G. BRANDS, FRANCHISES AND LICENSING OF CONCEPTS H. CONCESSION OPPORTUNITY, DESCRIPTION & information I. PRIVILEGE FEE TO THE AIRPORT K. MINIMUM SERVICES AND OPERATING REQUIREMENTS L. AIRPORT SECURITY REQUIREMENTS M. PRICES TO THE PUBLIC N. UTILITIES, GARBAGE AND TRASH REMOVAL O. ACDBE REQUIREMENTS P. MBE AND WBE ORDINANCE RELATING TO DESIGN AND CONSTRUCTION Q. VALIDITY OF PROPOSALS AND PROPOSAL SURETY R. PROCESS INTEGRITY; COMMUNICATION; AIRPORT STAFF CONTACTS S. EVALUATION PANEL AND CRITERIA T. CLARIFICATION OF PROPOSALS U. SHORTLISTING AND INTERVIEWS V. PROPOSAL REJECTION AND DISQUALIFICATION W. SCHEDULE X. DEVELOPMENT REQUIREMENTS AND DESIGN GUIDELINES Y. MINIMUM INVESTMENT REQUIREMENTS Z. CONFIDENTIALITY OF RECORDS AB. COST OF PREPARATION SECTION II. GENERAL INFORMATION A. CONCESSION PROGRAM VISION STATEMENT AND GOALS B. CONCESSION CONTRACTING POLICY C. USE OF BRANDS IN THE CONCESSION PROGRAM D. CUSTOMER EXPERIENCE INITIATIVE E. AIRPORT BACKGROUND F. AIRLINE TRAFFIC DATA G. CONCESSION PERFORMANCE DATA H. SURVEY RESEARCH I. OUTREACH MATERIALS J. AGREEMENT(s) K. RETURN OF PROPOSAL SURETIES L. RETURN OF PROPOSAL DOCUMENTs SECTION I INSTRUCTIONS TO PROPOSERS 4 October 27, 2016

5 M. CONFLICT OF INTEREST N. OWNERSHIP CONCENTRATION O. HANDBOOKS P. GLOSSARY OF TERMS SECTION III. PROPOSAL CONTENTS COVER LETTER CUSTOMER EXPERIENCE INITIATIVE STRENGHT OF PROPOSED CONCEPT AND DESIGN EXPERIENCE AND QUALIFICATIONS OPERATIONS AND MANAGEMENT PLAN: BUSINESS PLAN REQUIRED FORMS SECTION IV. REQUIRED FORMS REQUIRED FORM A : PROPOSAL CHECKLIST AND PRESS RELEASE INFORMATION REQUIRED FORM B : PROPOSER QUESTIONNAIRE REQUIRED FORM C : ACDBE LOI AND MWBE COMMITMENT FORM ATTACHMENT A TO REQUIRED FORM C REQUIRED FORM D : PERCENTAGE FEE RATE REQUIRED FORM E BRAND PORTFOLIO AFFIDAVIT REQUIRED FORM F : EVIDENCE OF LICENSING OR FRANCHISING AUTHORITY REQUIRED FORM G : CAPITAL INVESTMENTS AND FUNDING FUNDING SOURCE LETTER (ON BANK LETTER HEAD) REQUIRED FORM I : PROPOSAL SURETY REQUIRED FORM J : ADDENDA ACKNOWLEDGEMENT REQUIRED FORM K : PROPOSAL DOCUMENTS REQUIRED FORM L : SAMPLE AGREEMENT AND CONCESSION POLICY REQUIRED FORM M : FINANCIAL PRO FORMA REQUIRED FORM N : POLITICAL CONTRIBUTIONS AND/OR DONATIONS DISCLOSURE CERTIFICATE SECTION I INSTRUCTIONS TO PROPOSERS 5 October 27, 2016

6 REQUIRED FORM O : DIVERSITY AND INCLUSIVITY IN CITY SOLICITATIONS APPENDIX A SPACE EXHIBIT(S) APPENDIX E CERTIFICATE OF GOOD STANDING WITH THE STATE OF COLORADO SECTION I INSTRUCTIONS TO PROPOSERS 6 October 27, 2016

7 SECTION I. INSTRUCTIONS TO PROPOSERS [Page Intentionally Left Blank] SECTION I INSTRUCTIONS TO PROPOSERS 7 October 27, 2016

8 A. OVERVIEW SECTION I: INSTRUCTIONS TO PROPOSERS The City and County of Denver, by and through its Department of Aviation ( City ) has issued this Request for Proposal ( RFP ) for National, Regional or Local Gourmet Specialty Coffee Kiosks at DEN as described in Paragraph B, below. RFP means all four parts of this document, including all attachments, forms, and exhibits, including any future Addenda and the posted sample agreements. The purpose of this RFP is to furnish necessary information to prospective proposers to submit competitive responsive proposals. This RFP does not completely define the future contractual relationship between City and the successful proposer. Prospective proposers must carefully review the attached sample agreement(s) (see Required Form K). The final agreement(s) entered into between the City and successful proposer will be substantially similar to the sample agreement(s). In the event of a conflict between the language in this RFP or in the sample agreement(s) and the final executed agreement(s), the final executed agreement(s) shall take precedence. City has established minimum qualifications, described in Section E below ( Minimum Qualifications ), for this RFP. All proposals are reviewed to ensure they meet the Minimum Qualifications and comply with the requirements of this RFP. Non-Responsive proposals do not meet the Minimum Qualifications or comply with the minimum requirements set in this RFP. A panel described in Sections S and U below ( Evaluation Panel ) will evaluate all responsive proposals using the Evaluation Criteria contained in Section II. Any non-responsive proposer or non-responsive proposal will not be submitted to the Evaluation Panel. In the final analysis, City will select the successful proposal based on a number of criteria, qualifications, or other factors City deems appropriate. The CEO reserves the right to reject any and/or all proposals, waive irregularities and technicalities, re-advertise for new proposals, provide the services, or proceed otherwise as deemed in the best interest of City. The CEO may, at their sole discretion, modify or amend all provisions stated herein, including the terms of the sample agreement(s), and/or may elect to negotiate with the proposer(s) found to have submitted proposals representing the best interest of City. Information is available to help you assess this opportunity. Section II provides links to airline traffic data, relevant sales data, passenger survey research, and other information. B. THIS IS A NON-EXCLUSIVE OPPORTUNITY This opportunity is for National, Regional, or Local Gourmet Specialty Coffee Kiosks. City awards this opportunity on a non-exclusive revocable basis. The successful proposer s right to conduct operations and/or sell any goods or services at DEN is not exclusive. City reserves the right to allow others to conduct operations at DEN and/or sell goods and services that are identical or similar to those permitted by this opportunity and further described in Section I, Paragraph H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION. SECTION I INSTRUCTIONS TO PROPOSERS 8 October 27, 2016

9 C. MANDATORY PRE-PROPOSAL CONFERENCE AND SITE VISIT A MANDATORY pre-proposal conference will be held on Thursday, November 17, 2016 at 2:00 PM MST in the City Conference Room, Denver International Airport, 8500 Peña Blvd., Denver, Colorado All interested proposers or their representatives must attend the conference. All interested proposers attending the pre-proposal conference must sign the signin registration sheet. All agents representing an interested but absent proposer must sign the registration sheet and identify each interested but absent proposer. A list of all pre-proposal conference attendees will be posted to the website under incidental documents tab. In order to expedite the sign-in process, all attendees must pre-register at the following website by Friday, November 11, Attendees representing multiple companies must register under each company they are representing and sign-in to be eligible. Note: All parties interested in attending the self-guided tour, if not already badged at DEN, must pre-register by Friday, November 11, 2016 providing the information detailed below: Full legal first and last name Date of birth Government issued identification number and state or country of issue including expiration date Company or organization Telephone number address Attendees must present to security personnel their government issued picture identification used for pre-registration before a visitor s badge will be issued, no exceptions. Pre-registered attendees name and company information will be pre-printed on the sign-in sheet forms. Upon arrival, pre-registered attendees need to locate their name, provide their signature, and find a seat. Any pre-registered name without a signature will be deemed not in attendance and therefore ineligible to submit a proposal. Blank sign-in sheet forms will be available at the door for on-site registration, however, non-badged attendees will not be allowed on the self-guided tour. A SELF-GUIDED TOUR will be conducted from 8:00 AM to 10:00 AM on Thursday, November 17, Badges can be picked up at the Airport Office Building starting at 7:30 AM, in order to gain access to locations beyond security. Event staff will be located at each inline location to assist proposers in gaining access to the back of the house operations. Kiosk locations will be clearly marked. This will be your only opportunity to visit the locations of this opportunity, inspect the space(s), and understand how deliveries will be handled. Cameras are permitted to the extent allowable under TSA regulations. Event staff is not there to answer questions, please take this time to formulate and write down your questions to be presented at the Pre-Proposal Conference. Please note any answers to questions not in writing and posted to the website are considered unofficial and have no merit. All questions or comments concerning this RFP and opportunity must be submitted in writing, thru to contract.procurement@flydenver.com (with this specific opportunity identified in the subject line). However, Proposers should direct questions about ACDBE or MWBE obligations to the Division of Small Business Opportunity at small.business@flydenver.com. SECTION I INSTRUCTIONS TO PROPOSERS 9 October 27, 2016

10 Questions about this RFP and opportunity will be posted on the Opportunity page at under the questions and answers link. Answers are posted as they become available. Except questions directed to DSBO, all questions and comments must be received no later than Tuesday, January 3, 2017 at 2:00 pm MST. D. ADDENDA Proposers are responsible for obtaining any published Addenda to this RFP from DEN s website at Addenda may provide clarifications and/or amendments to this RFP and include additional attachments or forms as necessary. This RFP will also include a receipt certifying you received the Addenda; proposers must include this receipt with their proposal. E. MINIMUM QUALIFICATIONS To ensure evaluation of proposals, proposers must meet the minimum qualifications described below. 1. Minimum Years of Experience Required. Four (4) of the last six (6) years operating a multi-unit specialty coffee concession similar to the description in Section H. 2. Minimum Gross Sales Required. An average of $1.5 million per year of gross sales over the minimum years of experience relied on. 3. Financial Capability. Proposing entities must demonstrate the proposer s ability to fund the capital investment and undertake the obligations and operation subject to this opportunity. Proposers capital funding source(s) must be greater than its proposed Initial Capital Investment as submitted in Section IV. Required Forms G. 4. ACDBE/MWBE Requirements, if any (See Section O). A minimum ACDBE goal of 33% and a minimum MWBE goal of 25% (for both design and construction of the concession location) apply to this opportunity. These are minimum requirements only. In the event the proposing entity is a partnership, joint venture, or other combined legal entity, City will look to the majority stakeholder for compliance with these minimum qualifications. If a proposing entity fails to meet these minimum qualifications described above, your proposal is non-responsive and will not be evaluated further. F. PROPOSAL SUBMITTAL DATE, TIME AND PLACE All proposals must be received and time stamped by 2:00 PM MST on Thursday, January 19, 2017 to: Cecilia Lawson Denver International Airport 8500 Peña Boulevard Airport Office Building, Suite 8810 Denver, Colorado Proposals must be submitted in a sealed envelope or container labeled Package #2 Specialty Branded Coffee Kiosk Package-West with the proposer s name and specific RFP opportunity listed and include the following: SECTION I INSTRUCTIONS TO PROPOSERS 10 October 27, 2016

11 One original proposal containing all the required forms and financial information, Eight (8) copies without financial information, however the financial pro forma should be included in all copies, and A USB flash drive containing: o An electronic copy of the Proposal consolidated into one PDF document; and o An electronic version of the pro forma. City reserves the right to extend the proposal submittal deadline by written Addendum. Late proposals are non-responsive. G. BRANDS, FRANCHISES AND LICENSING OF CONCEPTS Proposals based on a branded concept(s) must include a letter from the brand owner certifying the proposer has the authority to use and/or operate the brand at DEN. The successful proposer will be required to document its contractual relationship with the brand owner before City executes any final agreement(s). Proposals submitted without the right to use or operate a brand(s)/concept(s) at DEN are nonresponsive. Substitution of proposed brands and/or concepts will not be permitted, without prior written approval from City. Substitution of proposed brands and/or concepts without prior written approval of City will result in cancellation of the award of this opportunity and forfeiture of the proposal bond. H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION Concession Location (Specialty Coffee Package Two West Kiosk) Conc. A (Specialty Coffee Package Two West Kiosk) Conc. B (Specialty Coffee Package Two West Inline) Conc. C Concession Location Area (Sq. Ft.) R R R ,885.5 SECTION I INSTRUCTIONS TO PROPOSERS 11 October 27, 2016

12 Key Business Terms for Package Term 7 years from Package Completion Date Minimum Annual Privilege Fee (MAPF) Percentage Fee Rate x 85% of first year Gross Receipts 12 Acceptable Range of Percentage Fee Rates % of annual Gross Receipts Common Area Maintenance (CAM) Cost 2016 Budget = $209,000 Allocation = 20.2% Annual Cost = $42, Anticipated Minimum Capital Investment Joint Marketing Fund Assessment ACDBE Participation Goal M/WBE Goal Required Hours Use of Concession Location Storage Space $500 per square foot 1% of annual Gross Receipts 33% of annual Gross Receipts 25% of minimum capital investment A minimum of 16 hours per day as approved by Concessions Management, 7 days a week, 365 days (366 days in case of a leap year) a year. Minimum hours of operation are from one hour before the first scheduled flight to the departure of the last scheduled flight. The space associated with this concession opportunity may be used only for the sale of permitted Food and Beverages as stated in the successful proposal, consistent with Section I, Paragraph H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION. The specific concept will be documented in a final executed concession agreement. The space may not be sub-divided into separate concepts, and no dual branding is permitted. No advertising or sponsorship is allowed in the Concession Location. Concession storage space is available. Storage space cost is currently $12.00 per square foot per month, is not included in the Privilege Fee, and is subject to change Restrictions on Use of the Concession Location Proposers are restricted from proposing any uses except as described in Section I, Paragraph H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION. PVC Categories Major Category Food & Beverage Minor Category Specialty Coffee SECTION I INSTRUCTIONS TO PROPOSERS 12 October 27, 2016

13 PACKAGE #2 Specialty Branded Coffee Kiosk Package West The Airport seeks qualified individuals or entities to develop, and operate the offered Concession (National, Regional or Local Gourmet Specialty Coffee Kiosks) for use by Airport passengers as further described in this RFP. To assist prospective proposers in developing responses, a brief description of the suggested concept for the Concession Location is provided below. The description is intended to provide examples of the types of services or concept that may be offered by Proposer. City is committed to developing an innovative and experiential concessions program that best achieves City s concession program goals in a unique travel dining and shopping environment. City reserves the right to reject concepts that it deems, in its sole judgment, to vary significantly from its design plan, to be inappropriate for City, or to not be financially viable. General Conditions for package (four locations) All menu items must be represented on and relevant to the restaurant s menu and must be packaged in high quality, easy to carry packaging that is consistent with City s sustainability objectives. Menu offerings should be of high quality and offer good value to the customers. Vegetarian, Kosher, Halal, gluten-free and other dietary considerations should be included in the food options menu. Portion sizes should support good health. City encourages the use of local agricultural and food products when available. City is developing a Sustainability Master Plan and encourages Proposer to incorporate sustainability practices in its facility design and operations that are consistent with City s objectives. Interested parties may respond to both Specialty Coffee Package One and Specialty Coffee Package Two however, a single proposer may not be awarded both packages. Merchandising Description The package is intended for the development of three (3) Specialty Branded Coffee Concession Locations totaling approximately 1,885.5 square feet. Two (2) of the locations will be new kiosk spaces on the west side of Concourses A and B with the third location being the redevelopment of an existing inline space on the C Concourse near the Food Court, currently the TCBY branded location. These concepts will feature branded coffee and gourmet coffee/tea drinks (freshly prepared espresso, cappuccino, etc.); baked goods (also suitable for breakfast, such as muffins and bagels); breakfast sandwiches, fresh pre-packaged prepared foods (such as sandwiches, wraps, and snacks), snack items (i.e. yogurt, fruit, hummus, and veggies), and bottled juice, water, snack branded retail related items. The brands proposed in these locations must demonstrate an innovative use of technology to enhance the customer service experience, such as the use of mobile applications for online ordering and payment and featuring a customer rewards program. A combination of brands is acceptable. For example, the Kiosk in Concourse A could feature Brand XYZ and the other two locations could feature Brand LMN. City desires the design of the kiosk locations to integrate seating either directly attached to the kiosks or in an attractive, well-designed space immediately adjacent to the kiosks themselves. The contracted Premises will included the proposed seating if approved by City. The seating must be designed to be comfortable and inviting to the passengers in an effort to the ambiance and sense of place of the concourse areas. SECTION I INSTRUCTIONS TO PROPOSERS 13 October 27, 2016

14 I. PRIVILEGE FEE TO THE AIRPORT MINIMUM ANNUAL PRIVILEGE FEE ( MAPF ): The successful proposer will be required to pay a Percentage Fee of gross receipts or a MAPF, whichever is greater, as compensation for this concession opportunity. Each proposer must indicate the proposed Percentage Fee Rate and MAPF in Section IV., Required Form D PERCENTAGE FEE RATE. PRIVILEGE FEE: On or before the Package Completion Date, and the first day of each month thereafter, the successful proposer will be required to pay a MAPF plus a Percentage Fee in an amount equal to gross receipts for the month multiplied by the Percentage Fee Rate. The Percentage Fee is payable within ten (10) days after the end of each month. At the end of each contract year, City and the successful proposer will meet and determine any overpayment of Privilege Fee. A proposal not within the Percentage Fee parameters stated above is non-responsive. J. JOINT MARKETING FUND City has created a central marketing and promotional fund, known as the Joint Marketing Fund (JMF) for its concessions at DEN. Funds from the JMF finance promotional activities for the concessions program at DEN. City designates 1% of the monthly compensation due form each concession to the JMF. This amount is payable by the 10 th day of each calendar month. K. MINIMUM SERVICES AND OPERATING REQUIREMENTS The agreement(s) includes minimum service and operating requirements. Proposers should thoroughly familiarize themselves with standards for operating at DEN. Numerous service and operating requirements are described in the sample agreement(s), for convenience some are briefly summarized below: 1. Service Standards. Proposers must ensure its operations are adequately staffed to provide First Class service that provides each customer with prompt, efficient, and courteous service. City has the right to make objections to the quality of merchandise and products sold, the character of the service rendered to customers, and the appearance of the location(s). 2. Hours of Operation. A minimum of 16 hours per day as approved by Concessions Management, 7 days a week, 365 days (366 days in case of a leap year) a year. Minimum hours of operation are from one hour before the first scheduled flight to the departure of the last scheduled flight and may vary from time to time based on airlines flight schedules. 3. Management. A full-time, experienced manager is required. The manager must be fully authorized and trained to represent and act on behalf of the proposer. 4. Staff Training. All personnel employed by the proposer must be neat, clean, groomed and courteous at all times, and must wear appropriate uniforms or other garb or insignia, including properly displayed Airport Identification Media (if required). Proposers will be required to provide proper training of all employees and for the certification and/or licensing of employees in all areas of service as their duties may legally require. 5. Deliveries. Deliveries of merchandise and supplies to location(s) at DEN must be made at such times, by such routes/modes and at such locations as City may require. SECTION I INSTRUCTIONS TO PROPOSERS 14 October 27, 2016

15 6. Maintenance. Location(s) must be kept in a First Class, clean, neat, businesslike, and orderly condition at all times. Proposers must fully comply with all City sustainability initiatives and maintenance requirements. 7. Rules and Regulations. Proposers must fully comply with all Federal Aviation Administration (FAA) regulations and Transportation Security Administration (TSA) regulations, the Denver Municipal Airport Rules and Regulations, and City Operational directives for DEN. These documents can be found on the Concession Opportunities page at under Airport Guidelines and Policies. 8. Liquidated Damages for Non-Performance. Proposers should be aware agreement(s) at DEN provide for liquidated damages in the event of non-compliance with service and operational standards. 9. Surety. Prior to or upon the effective date the agreement(s) for this opportunity, the successful proposer will be required to provide and maintain at all times throughout the term of the final executed agreement(s) (until successful completion of a final audit and release by City) a surety in the amount of half of Minimum Annual Privilege Fee (MAPF) and any storage space rent, in the form of a bond or irrevocable letter of credit (see Section IV., Required Form I ). This surety will be payable without condition to City and guarantee full and faithful performance of all of the terms and conditions of the final executed agreement(s). L. AIRPORT SECURITY REQUIREMENTS 1. Airport Security Program. Before commencement of operations, the successful proposer will be required to schedule a meeting with City Security Section of DEN s Operations Division ( Airport Security ) to establish security expectations, badging needs, areas of access, and any driving/vehicle permit requirements. The successful proposer will be required to submit for approval a security plan in accordance with Airport Security s requirements and attend New Participant training prior to being established as a participant in DEN s Airport Security Program. The successful proposer will be required to conduct all its activities at DEN in compliance with the approved security plan, and Airport Security Program. Violations of the security plan and/or Airport Security Program will result in the assessment of liquidated damages. The successful proposer will also follow all established rules set forth in the Denver Municipal Airport System Rules and Regulations as well as regulations required by the Transportation Security Administration (TSA). The applicable resources can be found at under Airport Guidelines and Policies. The security status of City is subject to change without notice. Should the security status of City change at any time during the term of the agreement(s), the successful proposer will be notified in an expeditious manner followed by written instructions detailing all applicable security modifications. 2. Fingerprinting, Criminal History Record Checks, and Security Threat Assessments. All persons applying for an Airport Identification Media must complete a Fingerprinting and Badge Application and submit to a fingerprint-based Criminal History Record Check (CHRC) and Security Threat Assessment (STA). Fingerprints and information on the application are sent electronically to the corresponding Federal Agency responsible for vetting individuals. Airport Security must receive a SECTION I INSTRUCTIONS TO PROPOSERS 15 October 27, 2016

16 clearance prior to the issuance of any airport ID badge. The CHRC fee is currently $40.00 (subject to change). 3. Airport Identification Media. All individuals working at or with access to the Sterile or Secured Areas of DEN must obtain an Airport Identification Media and have it displayed as outlined in the Denver Municipal Airport System Rules and Regulations Part 20. An initial fee of $10.00 (subject to change) will be collected for the processing of each Airport Identification badge. City reserves the right to limit the number of badges with access to Sterile or Secured Areas of DEN. 4. Vehicle Permits and Insurance Requirements. Airport Security issues vehicle Permits. Permits are issued based on Denver Municipal Airport System Rules and Regulations Parts 20 and 130. Vehicles driving in the Aircraft Operating Area (AOA) or in the service tunnels must be used in the performance of work necessary to provide the delivery of services or supplies, and to conduct airport-related business. Insurance requirements are dependent on where vehicles will be operated. Drivers of vehicles are required to follow all established procedures set forth in Denver Municipal Airport System Rules and Regulations Part 130. City reserves the right to limit or revoke Vehicle Permits to an individual or company at any time. The vehicle permit fee is currently $5.00 (subject to change) and collected for the processing of each new or renewal permit. 5. Security Reference Guides. Additional and more detailed information on security requirements including fees and other costs, as well as information on the Denver Municipal System Rules and Regulations, can be found on the Concession Opportunities page at M. PRICES TO THE PUBLIC City has established a value pricing policy that allows no greater than 110% of street pricing. Proposers should be thoroughly familiar with City s value pricing policy and proposals submitted in response to this RFP must conform to City s value pricing policy, which is strictly enforced by City. The value pricing policy is included in the Concessions Policy posted on the Concession Opportunities page at N. UTILITIES, GARBAGE AND TRASH REMOVAL The successful proposer will be solely responsible for all charges and fees for utilities, maintenance, repair, and janitorial services. Water is charged at a flat rate per square foot per location payable monthly. Electricity is measured via means of installed meters and billed at the rate established by the utility company. These rates may be adjusted annually based on the percentage change in the rates charged to City by the respective utility companies. The successful proposer will be responsible for transporting all garbage and trash to Citydesignated refuse chutes, recycling bins, and compaction. DEN has a comprehensive recycling program that currently offsets the cost of providing garbage and trash hauling. The successful proposer will be required to participate in DEN s recycling program and all other DEN sustainability initiatives. City reserves the right to charge for garbage and trash removal and to prorate the costs among all users. SECTION I INSTRUCTIONS TO PROPOSERS 16 October 27, 2016

17 O. ACDBE REQUIREMENTS It is City s Policy to ensure that Airport Concessions Disadvantaged Business Enterprises (ACDBE) as defined in 49 CFR Part 23, have an equal opportunity to receive, participate in, and fairly compete for all concession opportunities. Therefore, ACDBE participation in this concession opportunity is highly encouraged. To qualify, the ACDBE proposer, joint venture partner, goods/services provider and/or any other firm upon whose certification a proposer relies must (i) be currently certified in a category appropriate to this opportunity and (ii) the ACDBE s Certification Letter, Commitment Form (a portion of Required Form C) and/or ACDBE Letter of Intent Form (for certified vendors) must be submitted to DSBO for evaluation on or before the due date of this opportunity. Currently certified for purposes of this RFP shall mean certified by either the State of Colorado or by the City and County of Denver, Division of Small Business Opportunity (DSBO) as an ACDBE, in a category appropriate to the opportunity, under 49 CFR Part 23 on or before the due date of this opportunity. (Only the ACDBE partner needs to be ACDBE certified.) For this opportunity, a minimum ACDBE participation goal of 33% has been established by DSBO s Director. In addition to direct ownership, ACDBE participation may be in the form of a joint venture, partnership or other legal arrangement meeting the eligibility standards in 49 C.F.R. Part 23. Additionally, the ACDBE goal for this opportunity also may be met through the providing of goods and services from certified vendors. DEN s DSBO Office can provide a list of ACDBE-certified vendors (see below for contact information). The successful proposer will be responsible for meeting this goal (or providing documentation of a good faith effort) on or before Thursday January, 19, Certification applications may be obtained on the internet at or from the Division of Small Business Opportunity, 201 West Colfax Avenue, Dept. 208, Denver, CO 80202, phone: (720) or from the DSBO s Office at DEN, Airport Office Building (AOB), Suite 7810, Denver, CO 80249, phone: (303) Questions regarding the certification process must be directed to the ACDBE Certification Analyst at small.business@flydenver.com. DSBO considers any proposing entity including an ACDBE and/or any ACDBE owned business proposing with one or more other firms to be a joint venture even if the participants do not identify as a joint venture. Accordingly, the proposing joint venture must submit, with its ACDBE Certification letters, a signed/fully executed joint venture agreement (or operating agreement, by-laws, etc.), a completed JV Eligibility Form, a notarized JV Affidavit, a detailed list of roles and responsibilities for each joint venture partner and any other appropriate documentation of the legal relationship between the joint venture partners. In order to allow sufficient time for DSBO to review and respond, proposers are encouraged to have their documentation (including draft agreements) reviewed by DSBO as early in this process as possible (at least two weeks prior to submission of JV proposal). Proposers are encouraged to work with DSBO while negotiating and drafting agreements between joint venture partners to be certain the arrangement can be approved by DSBO for ACDBE purposes. SECTION I INSTRUCTIONS TO PROPOSERS 17 October 27, 2016

18 P. MBE AND WBE ORDINANCE RELATING TO DESIGN AND CONSTRUCTION City has established goals for the use of Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs), and Small Business Enterprises (SBEs) in design and construction of City owned facilities through ordinance ( M/WBE and SBE Ordinance ). The M/WBE goal established for this opportunity is 25% of total project cost including design and construction. A portion of this percentage must be met through the use of M/WBE design firms. The successful proposer will be responsible for meeting this goal or making a good faith effort to meet the goal, as determined by the DSBO, before City issues a notice to proceed for construction of the Concession Location(s). Failure to comply with the requirements of the M/WBE and SBE Ordinance may result in termination of the successful proposer s agreement(s) with City. The Tenant Development Guidelines are located on Concession Opportunities page at: Airport Guidelines and Policies Tenant Development Guidelines. The M/WBE and SBE Ordinance, and the current certification list are located on Concession Opportunities page at Proposers must complete, sign and submit the MWBE Commitment Form with their proposal: ( The successful proposer will have fifteen (15) days from notification of award to contact DSBO to discuss the MWBE goal. Contact should be made in the form of an to small.business@flydenver.com and should reference the appropriate opportunity in the subject line. Q. VALIDITY OF PROPOSALS AND PROPOSAL SURETY By submitting a proposal, the proposer agrees its proposal constitutes a firm and binding offer to City and may be accepted by City at any time within one hundred twenty (120) days after the proposal due date. Thereafter, the proposer has the option to extend its offer if requested by City. Each proposer must submit, with its proposal, a surety ( Proposal Surety ), payable to the City and County of Denver, in the amount of twenty five thousand dollars ($25,000.00), in one of the following forms: 1. Cashier's Check, or 2. Irrevocable Letter of Credit (a sample ILOC is posted online at oc. The Proposal Surety is required to guarantee proposers will execute a formal agreement(s) with City and must be valid for one hundred twenty (120) days from date of submittal. The successful proposer s Proposal Surety will be held to guarantee execution of an agreement(s) and the furnishing of a performance surety required by the agreement(s). City will retain the Proposal Surety as liquidated damages in the event the successful proposer fails to execute an agreement(s) with City. The Proposal Surety will be returned to the successful proposer after execution of a final agreement(s). Where proposers submit multiple proposal in response to concurrently issued RFPs, proposers may submit one (1) cashier s check or ILOC covering the combined surety amounts for each proposal submitted. SECTION I INSTRUCTIONS TO PROPOSERS 18 October 27, 2016

19 Proposal Sureties of all unsuccessful proposers will be returned as soon as an award of the opportunity is made, or, in the event all proposals are rejected, within ten (10) days after the date of rejection. R. PROCESS INTEGRITY; COMMUNICATION; AIRPORT STAFF CONTACTS Once this RFP has been issued, the process is confidential and proposers, their representatives, agents, and affiliates (including any joint venture partners, their agents and affiliates), may not contact the CEO, Department of Aviation staff, City officials, City employees, or members of the Evaluation Panel, except as listed above, to discuss their proposal, any aspect of this RFP or the selection process. Inappropriate contact, at City s sole and absolute discretion, will result in the proposer s disqualification for this opportunity and future opportunities. Any questions or comments about this RFP, this opportunity, the process, or the sample agreement(s), before or after the pre-proposal conference and site visit, must be submitted in writing by to Contract.Procurement@flydenver.com (with this specific opportunity identified in the subject line). Questions and answers are posted on the Concessions Opportunity page at under questions and answers tab for this specific opportunity. Questions for help or clarification are allowed, but ultimately it will be proposers responsibility to make sure they understand all of the terms of this RFP and conduct their own due diligence about this opportunity. Answers are as they become available. All questions or communications related to this RFP (except for ACDBE or MWBE questions as described in Section O, above) must be submitted in writing to Contract.Procurement@flydenver.com with this specific opportunity identified in the subject line. All questions and comments must be received no later than Tuesday, January 3, 2017, 2:00 PM MST. ACDBE or MWBE certification questions should be addressed directly to DSBO at (303) See Section O. above. S. EVALUATION PANEL AND CRITERIA Responsive proposals received in response this RFP will turned over to an Evaluation Panel ( Panel ) for evaluation. The Panel will be chaired by a non-evaluating member of the Department of Aviation s staff (or their designee). The Panel will consist of five (5) to seven (7) volunteer members, with the majority of the panel consisting of City representatives. Panel members may include Aviation or other City employees, consultants to the City/Aviation, airline representatives, community representatives, subject matter experts, or other volunteers from the private sector. Evaluation Panel members will only evaluate responsive proposals. The Panel may use the Evaluation Criteria summarized below, and may utilize any information they deem necessary as submitted by proposers and further described in Section I, Paragraph H - CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION. SECTION I INSTRUCTIONS TO PROPOSERS 19 October 27, 2016

20 Evaluation Criteria 1 Customer Experience Initiative 10% 2 Strength of the Proposed Concept and Design 30% 3 Experience and Qualification 15% 4 Operations and Management Plan 15% 5 Business and Financing Plan 10% 6 Interviews and Presentation 10% Total Points 100% The membership notes, deliberations, and ultimate conclusions of the Evaluation Panel will be kept strictly confidential up through and after award of the opportunity. The Evaluation Panel s function is to assist the CEO in determining which proposal(s) to recommend for award. However, the CEO has the sole and absolute discretion to recommend any proposal for award deemed to be in accordance with the best interests of the City. Proposers may not contact members of the Evaluation Panel for any reason whatsoever. T. CLARIFICATION OF PROPOSALS During the evaluation process, City reserves the right to request additional information from any proposer, to seek clarification of information provided, to conduct its own due diligence with respect to any proposer or proposal, including site visits of a proposer s other operations, reference checks, credit checks, health department checks, or any other investigations deemed necessary. U. SHORTLISTING AND INTERVIEWS The Evaluation Panel will prepare an initial evaluation, in accordance with Section I, Paragraph S above. The Evaluation Panel, may, at its discretion, invite the highest ranked proposers in for in person interviews. Normally interviews will be limited to a maximum of five (5) proposers, however the Evaluation Panel has the discretion to invite more or less than five (5). Interviews are an opportunity for members of the Evaluation Panel to ask questions and/or seek clarification of proposals from proposers. The Evaluation Panel may provide questions to proposers in advance of the interview. In the interest of minimizing proposers costs, the following rules will apply to interviews: Proposers invited to an interview may not: Bring merchandise, gifts, or any other leave behinds for the Evaluation Panel; Introduce new information at interviews not in the original written proposal; Change or alter the proposed business terms or concept in any way. SECTION I INSTRUCTIONS TO PROPOSERS 20 October 27, 2016

21 Proposers may provide written answers to any questions provided in advance by the Evaluation Panel. All invited proposers may be asked to prepare a presentation, lasting no longer than 30 minutes, explaining the company s strong points in each area of the evaluation criteria. Presentations are due three (3) days prior to the interview date. The presentation will be incorporated into the time allotted for the interview, no additional time will be provided. The presentation must be in a PC compatible format utilizing standard MS Office Suite including PowerPoint. Proposers may use a PowerPoint presentation in their interview. The PowerPoint must be ed to contract.procurement@flydenver.com three (3) days prior to their interview date. Following interviews, if any, each member of the Evaluation Panel may revise its initial evaluation. The Evaluation Panel s work is complete when the CEO authorizes direct negotiations with a proposer. V. PROPOSAL REJECTION AND DISQUALIFICATION Proposals are non-responsive and will be excluded, rejected or disqualified for the following reasons: 1. Proposer s failure to meet the Minimum Qualifications. 2. Proposer s failure to provide complete documentation and Required Forms. 3. Collusion among proposers. 4. Default or termination for cause of other contracts or business ventures within the past five (5) years. 5. Improper contact as described in Section R. 6. Lack of ability to operate the proposed brand(s) and/or concept(s). 7. Omissions and/or fraudulent statements of material fact. 8. Proposer s delinquent arrearages or debts presently owed under any agreement with City, or any other creditor. 9. Proposer s failure to disclose all trademark, copyright, licensing, franchise, and other contractual or property rights proposer has with third parties, proposer intends to use at DEN, which may restrict current business operators in any way, or may have an unfavorable impact on future proposers for opportunities at DEN. In addition, the CEO reserves the right to reject any and all proposals, to waive irregularities and technicalities, to re-advertise, to provide the services, or to otherwise proceed in the best interest of the City. SECTION I INSTRUCTIONS TO PROPOSERS 21 October 27, 2016

22 W. SCHEDULE This schedule is subject to change at the sole discretion of the City by issuance of a written Addendum. Event Date RFP Issued October 27, 2016 Last date to request visitor s badge for site visit, if required (see Section I, C. Pre-Proposal November 11, 2016 Conference and Self-Guided Tour) Self-Guided Tour November 17, 2016 from 8AM to 10AM Pre-Proposal Meeting November 17, 2PM Last Date to Submit Questions January 3, 2017 ACDBE LOI s due January 19, 2017 Proposal Due Date January 19, 2017 Interviews March 2017 Chief Executive Officer s Recommendation * April 2017 Negotiation of Agreement(s) CEO Recommendation +2 weeks Execution of Agreement(s) by City Rec d by City +6 to 8 weeks * City reserves the right to negotiate with proposer(s) for modification of proposal(s). X. DEVELOPMENT REQUIREMENTS AND DESIGN GUIDELINES The successful proposer will be required to design, construct and install all finish requirements, including but not limited to lighting, power, plumbing, HVAC distribution from main air supply, HVAC controls for the tie in to the base building system, life safety systems, interior finishes, all furnishings, fixtures, trade fixtures, equipment, and signage necessary to operate in a First- Class condition. Special attention must be given to the design of the HVAC and electrical systems. Information regarding tenant finish requirements, including Prevailing Wage, can be found under Resource Documents at under Airport Guidelines and Policies and Prevailing Wage Requirements. Proposers with concept(s) that creates odors, protections must be installed to prevent transmission of odors from the location, via the mechanical system, to other portions of DEN. All plans and specifications, materials and color selections are subject to review and approval by DEN s Maintenance/Engineering Division and Design Review Committee. Drawings of location(s), including an architectural plan and drawings, showing the location of utilities and utility rooms can be found on the Concession Opportunities page at under Incidental Documents for this specific opportunity. City strongly encourages cohesive, engaging designs, embracing DEN s Brand Principles (Accessible Urbanism, Naturally Dynamic, Enjoyably Productive, and Modern West Spirit). Designs should entice and excite patrons, and evoke a strong sense of place reflecting the modern West spirit of Denver, Colorado and the Rocky Mountain region. All aspects of design must incorporate every feature of the concept being proposed and conform to DEN s design SECTION I INSTRUCTIONS TO PROPOSERS 22 October 27, 2016

23 and development guidelines. For this reason, proposers should carefully review the Tenant Design Guidelines, which are located on the Concession Opportunities page at Airport Guidelines and Policies Tenant Development Guidelines. In order to assist the successful proposer to complete construction on time, Proposer will be required to submit a design and construction schedule (utilizing the form provided on the Concessions Opportunity page at Required Forms for RFPs Design and Construction Schedule; direct link: ). The successful proposer will be required, at its sole expense, to deliver (1) an acceptable Construction Payment Bond, (2) a Contractor Performance Bond and (3) a Labor and Material Payment Bond in a sum not less than one hundred percent (100%) of the total contract amount for construction, alterations, or additions. Samples of these documents can be located on the Concessions Opportunities page at Construction Sample Documents. Y. MINIMUM INVESTMENT REQUIREMENTS Proposers should seek experienced professional advice on the cost of constructing improvements at DEN. Construction at DEN is challenging due to stringent security requirements, ongoing airline operations, restrictions on deliveries (aircraft ramp areas), and limitations on causing noise, dust or other inconveniences to passengers. Construction costs in new locations will generally be less than costs in existing locations. Other factors affecting the cost of construction include, but are not limited to, the state of the local economy, demand for construction services, and availability of contractors and materials. For this opportunity, the minimum investment requirement is established in Section I, Paragraph H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION. Proposers will be required to invest a sufficient amount of capital in order to meet or exceed the requirements contained in the Tenant Development Guidelines. Information regarding the Tenant Development Guidelines: Volumes 1-3 can be found at Resource Materials Airport Guidelines and Policies. Proposers must estimate its capital investment amount in its proposal in Section IV, Required Form G. This amount will become a contractual requirement and will be included in the final agreement(s). This requirement is established to ensure proposers do not overstate their proposed capital investment for purposes of obtaining a more favorable evaluation, and to ensure the quality of the actual construction is of the same standard as described in the proposal. Z. CONFIDENTIALITY OF RECORDS Documents submitted to or created by City in response to this RFP maybe subject to the Colorado Open Records Act (C.R.S et seq.) ( CORA ). In accordance with the Denver Revised Municipal Code Section (a), all documents submitted to or created by City in response to this RFP are confidential and privileged, and may not be inspected until an award is made or the solicitation is ended by City. An award is made when the City formally executes a contract resulting from this solicitation. A solicitation is ended when the CEO declares the solicitation ended. SECTION I INSTRUCTIONS TO PROPOSERS 23 October 27, 2016

24 Proposals will be opened so as to avoid disclosure of contents to competing proposers during the process of negotiating and making an award. A register of proposers will be prepared and made available to the public after the proposals have been submitted. CORA provides certain information deemed confidential, commercial and financial data or privileged, proprietary, copyrighted information, or which describes trade secrets shall be excluded from public disclosure. Proposers should mark CONFIDENTIAL in red ink at the bottom of any page in their proposal containing confidential or proprietary information, patents, copyrights, or trade secrets. However, marking such information as CONFIDENTIAL does not guarantee it is not subject to disclosure under CORA. The proposer's opinion as to what constitutes confidential or proprietary information is not necessarily binding on City in responding to a CORA request. Where a request is made to inspect or copy proposals or other documents related to this opportunity, any disclosure of information by the City consistent with the provisions of CORA shall result in no liability of City. In the event of a request to City for disclosure of such information, time, and circumstances permitting, City will make a good faith effort to advise proposers of such request and provide an opportunity to object to disclosure of any material proposers consider confidential, proprietary, or otherwise exempt from disclosure. In the event proposers objects to disclosure, City, in its sole and absolute discretion, may file an application to the Denver District Court for a determination of whether disclosure is required or exempted. In the event a lawsuit to compel disclosure is filed prior to City s application, City will tender all such requested material to the court for judicial determination. In both situations, proposers agree to either waive any claim of privilege or confidentiality or intervene in such legal process to protect materials proposers does not wish disclosed. Proposers agrees to defend, indemnify, and hold harmless City, its officers, agents, and employees from any claim, damages, expense, loss, or costs arising out of a Proposer s objection to disclosure including prompt reimbursement to City of all reasonable attorney fees, costs, and damages City may incur directly or may be ordered to pay by such court. AA. PROPOSER RESPONSIBILITY AND DUE DILIGENCE In addition to the other requirements stated in this RFP, proposers are responsible for the following: 1. Should a proposer find discrepancies or omissions in this RFP, or be in doubt as to provisions meaning, the proposer should notify the City in writing by sending an to Contract.Procurement@flydenver.com with this specific opportunity identified in the subject line. City will respond in kind, in accordance with this RFP. City will not be responsible for or bound by any oral instructions or interpretations given by or to anyone whomsoever. 2. Proposers are expected to familiarize themselves with the location for this opportunity, and if applicable, mechanical, electrical, plumbing, fire protection, gas, waste collection, and other base building systems and their capacity to accommodate the proposed brand(s) or concept(s). 3. Proposers and their legal representative must examine the terms of this RFP (including the sample agreement[s]) and all related materials and judge for themselves all the circumstances and conditions affecting their proposal. Exceptions taken to the agreement(s) language must be submitted as questions during the official question period for this RFP. If proposers cannot accept material language in the sample agreement(s), it is recommended they do not submit SECTION I INSTRUCTIONS TO PROPOSERS 24 October 27, 2016

25 AB. proposals. Failure on the part of any proposer to make such thorough examination or to investigate thoroughly the conditions of this opportunity and/or their proposal shall not be grounds for a disqualification of the proposal. 4. Proposers must conduct their own examination of passenger traffic. City does not represent or warrant the achievement of any forecast of future passenger traffic, past traffic levels being achieved in the future, airlines serving DEN today continuing to serve DEN in the future, or airlines continuing to use the same departure gates. Proposers must conduct a full investigation of the risks associated with operating at DEN. COST OF PREPARATION All costs associated with preparing and delivering a proposal on this opportunity and costs associated with presentations as part of proposals for this opportunity are borne solely and exclusively by the proposer. City will not compensate any proposer for any expenses incurred by the proposer because of this RFP. Proposers understand and agree to bear all costs associated with this RFP. By proposing on this opportunity, proposers expressly waive the right to compensation or consequential damages for all costs, accumulated directly or indirectly, because of this RFP. [PAGE INTENTIONALLY LEFT BLANK] SECTION I INSTRUCTIONS TO PROPOSERS 25 October 27, 2016

26 SECTION II. GENERAL INFORMATION [Page Intentionally Left Blank] SECTION II GENERAL INFORMATION 26 October 27, 2016

27 SECTION II: GENERAL INFORMATION A. CONCESSION PROGRAM VISION STATEMENT AND GOALS In an effort to improve customer experience at DEN, City has created a vision statement and several overarching goals for DEN s concession program. Part of this improved customer experience is to create a concession program among the best in the world at offering value, excitement and a wide range of culinary, retail, and services experiences that evoke a strong sense of place reflecting the Modern West spirit of Denver, Colorado and Rocky Mountain region. Goals 1. Respond to customer needs and provide value and great customer service in everything we do. 2. Optimize our non-airline revenue consistent with our obligation to airline partners based on ongoing customer research and feedback. 3. Optimize small and local business and ACDBE opportunities through continued use of our direct and competitive procurement approach. 4. Keep our program fresh and dynamic by introducing new concepts and services. 5. Pursue creative concession design to entice and excite consumers by merging architecture, design, graphics, and DEN and concession branding 6. Attract the best local, regional and national food and beverage and retail and service concepts and tenants Create and maintain a vibrant First-Class concession program offering a range of quality food and beverage, retail and services in a branded environment, with particular emphasis and balance between local, regional, national, and global brands. B. CONCESSION CONTRACTING POLICY City has implemented a direct contracting policy for the concession program at DEN which differs from the contracting approach used by most other U.S. airports. Under this policy, City enters directly into agreements with operators, rather than using a master, prime, or concession developer. City has adopted this policy in order to encourage participation by small businesses. This policy can be viewed in its entirety on the Concession Opportunities page at City believes there are advantages to diverse ownership of concessions at DEN. Local owners typically pay close attention to day-to-day business operations and maintain high operating standards. At the same time, a mix of regional, national, and international ownership bases gives DEN the experience needed for its concession program to succeed, given the operating challenges and investment requirements of operating at DEN. Local ownership includes local owners operating, regional, national, and international branded concepts through franchise or license agreements. Conversely, regional, national, and SECTION II GENERAL INFORMATION 27 October 27, 2016

28 international ownership includes those owners operating local branded concepts through franchise or license agreements. City has made a commitment to small businesses, including ACDBEs, MWBEs, and SBECs, to ensure a level playing field in the solicitation and award of opportunities, by giving small businesses an equal chance to compete with large national or international operators. However, in accordance with federal law, City does not grant preferences for to local ownership. C. USE OF BRANDS IN THE CONCESSION PROGRAM Experience at airports in the U.S. and around the world has shown that passengers (and employees) tend to prefer a diverse mixture of local, national, and international brands. Brands outperform generic airport concepts and offer customers greater familiarity, value, quality, and customer satisfaction. For operators, brands may offer advantages of proven approaches, operating systems, and added quality control inspections by the brand owner. City can also ensure its value pricing policy is followed because prices at branded shops and restaurants can be easily compared with off-den units. Local brands have proven very successful at many domestic and international airports, and help differentiate competing concession programs by creating a sense of place unique to the DEN and the region. City believes a concessions program which offers a unique blend of global icons, national brands, regional specialties, and locally-inspired food and retail options provide the best overall balance, the highest level of customer satisfaction, creates incremental sales and contributes to the creation of a program that appeals to DEN s target passenger segments (Engaged Explorers and Demanding Elites) and travelers overall. D. CUSTOMER EXPERIENCE INITIATIVE In 2013, DEN announced its new strategic vision to become America s favorite connecting hub, where the Rocky Mountains meet the world and its seven corresponding strategic objectives. City, together with its business partners and employees, will accomplish this goal by shifting its focus to the customer and providing air travelers with an elevated airport experience with service levels comparable to the best airports in the world. Achieving DEN s strategic vision and Winning the Hearts of Our Customers strategic objective is the aim for DEN s new customer-focused growth strategy. See DEN Customer Experience on the Concessions Page at Resource Materials Resource Documents DEN Customer Service Experience (direct link: w.pdf Through this RFP, City seeks to elevate the customer experience by creating a concession program blurring the lines between work and play and infusing pleasure into productivity and liveliness into leisure so customers can enjoy a world-class experience. Within that context, particular emphasis is placed on creating unique customer experiences targeted towards DEN s top two customer segments, ( Engaged Explorers and Demanding Elites ), and the Experience Principles as described below. SECTION II GENERAL INFORMATION 28 October 27, 2016

29 Target Segments In 2014, City completed a segmentation study of its customers. Through this study, six segments were identified, two of which were identified as DEN s target segments: Engaged Explorer and Demanding Elites. Engaged Explorer lifestyle attributes, attitudes, and behaviors: Are younger than most segments and have average incomes Are discovery-oriented novelty seekers who have a positive, energetic, and openminded attitude Are early adopters and tech savvy; they are well-connected and active on social media platforms Are social and vocal; they enjoy sharing their opinions and advising friends Express themselves through the brands they buy Travel frequently for both business and leisure, mostly domestic Largely travel in groups with children and other adults Like to explore the airport and take in the local culture Enjoy meeting new people at the airport Want unique and interesting options and amenities at the airport Value premium status and options SECTION II GENERAL INFORMATION 29 October 27, 2016

30 Demanding Elites lifestyle attributes attitudes and behaviors: Are young, active high achievers with dual mentalities; they are career-focused while also making family a top priority Have the highest income across segments and tend to have younger children Value status and are brand-driven Are early adopters of technology, tech-savvy, and like to share their opinions Travels the most frequently across the segments, most often for business, and view themselves as travel experts. Their dual mentalities drive different airport attitudes depending on trip type Want access to options that fit the needs of their trip type (e.g., kid-friendly options and productivity amenities, national and local brands, value and healthy food options) Value having premium status and have high expectations for the airport experience Spend the most at the airport across segments and shop for more expensive items during travel. SECTION II GENERAL INFORMATION 30 October 27, 2016

31 Experience Principle Summary: Experience Principles shall include the four Experience Principles listed below and be summarized as a concession containing product, brand and/or design that helps the traveler feel more empowered to make the most of their time and keep their lives moving during their travel journey by offering options that balance work and play and creates unique experiences that embrace both global sophistication and the beauty and spirit of the modern West. Experience Principles: 1. Accessible Urbanism: Effortlessly balances the customer s everyday needs with their desire for delight. A combination of sophisticated sensibility with authentic, modern Colorado style in the form of retailing, dining, and service options that are both locally rooted and globally relevant. 2. Naturally Dynamic: DEN is nothing if not iconic. With the majestic Rocky Mountains towering in view, we invite the region s renowned outdoor beauty inside our walls through open, clean, airy, environments and engaging moments that reflect Colorado s natural vibrancy. 3. Enjoyably Productive: Help customers fly through their must-dos to get to their want-to-dos at the airport. Concessions pair carefully curated spaces designed for both productivity and pleasure with efficient operations that reduce stress, save time and bring humanity back to the airport experience. 4. Modern West Spirit: No airport is like DEN because no place is like the Colorado region. We bring our area s relaxed way to life at every corner: warm welcomes, casual comforts, friendly faces and an atmosphere that embraces our active lifestyle and innovative, independent mindset. Within your Business Plan, proposers should describe their strategy to promote DEN s Customer Experience Initiative objectives. In this description, proposers should detail how the plan meets DEN s Customer Experience objectives, targets Engaged Explorers and Demanding Elites, and addresses the DEN s Experience Principles. E. AIRPORT BACKGROUND DEN opened on February 28, 1995, and is located on 53 square miles of land approximately 30 minutes from the central business district of Denver. It is a major air transportation hub for the Rocky Mountain region and a gateway for international air travel. DEN is served by 20 commercial airlines, not including charter and regional carriers, offering nonstop service to more than 170 destinations worldwide. In 2015, DEN averaged 1,500 flights and 148,000 passengers per day. DEN is ranked as the 19th busiest airport in the world and the 6th busiest airport in the United States. The graphic on the following page shows the location of airlines by concourse as of the date of this RFP. Airline check-in locations and gate assignments are subject to change during the term of any final executed agreement(s). SECTION II GENERAL INFORMATION 31 October 27, 2016

32 F. AIRLINE TRAFFIC DATA In 2015, Denver International Airport had a total of 54,014,502 passengers (this includes enplaned and deplaned passengers). The graphic below shows total annual traffic growth through Source: Denver International Airport traffic statistics The graphic below shows the enplaning and deplaning passengers by month for calendar year Typically January, February, April and November are DEN s slowest months while June, July and August are the busiest months. Source: Denver International Airport traffic statistics DEN has a strong balance of both connecting traffic and passengers who begin or end their trip in Denver. Connecting passengers make up approximately 35 percent of all traffic on average, while 65 percent start or end their trip at DEN. Exposure to departing passengers is a key driver of concession performance. The graphics below illustrate the distribution of passengers (O&D and connecting) by concourse for calendar year SECTION II GENERAL INFORMATION 32 October 27, 2016

33 Source: Denver International Airport traffic statistics The number of connecting passengers varies by concourse, primarily due to the dominant carriers on each concourse. Concourse A has the most airlines operating from it with Frontier being the most dominant carrier, United operates all Concourse B flights, and Southwest and Alaska operate on Concourse C. United, Southwest and Frontier are DEN's three largest carriers and each has a unique connecting passenger ratio that impacts traffic by concourse. Source: Denver International Airport traffic statistics SECTION II GENERAL INFORMATION 33 October 27, 2016

34 Passenger traffic varies throughout the day. The graphics below show the departing airline seats per hour for Concourses A, B and C. The timing of departing flights on each concourse varies by day of week and month. The graphics below are from a scheduled peak Friday for DEN in August SECTION II GENERAL INFORMATION 34 October 27, 2016

35 A map of the current airline ticket counters and gate assignments is shown below: Source: Commercial Asset Management SECTION II GENERAL INFORMATION 35 October 27, 2016