CAPITAL REGION AIRPORT COMMISSION RICHMOND INTERNATIONAL AIRPORT REQUEST FOR PROPOSALS #

Transcription

1 Draft of02/02/05 RP edit vs8, vs9 CAPITAL REGION AIRPORT COMMISSION RICHMOND INTERNATIONAL AIRPORT Vs. 8 SP edit 2/9/05 REQUEST FOR PROPOSALS # FOR A CONCESSIONAIRE TO DEVELOP AND OPERATE FOOD AND BEVERAGE CONCESSIONS AT RICHMOND INTERNATIONAL AIRPORT ISSUE DATE: February 11, 2005 MANDATORY PRE-PROPOSAL CONFERENCE: March 8, 10:00 A.M. DEADLINE FOR SUBMISSION OF PROPOSALS: May 10, 4:00 P.M.

2 CAPITAL REGION AIRPORT COMMISSION REQUEST FOR PROPOSALS FOR A CONCESSIONAIRE TO DEVELOP AND OPERATE FOOD AND BEVERAGE CONCESSIONS 1. PURPOSE OF THE REQUEST FOR PROPOSALS The (the Commission ) invites the submission of proposals from all interested and qualified parties with demonstrated expertise desiring to develop and operate (directly or through sublease), as a Concessionaire (the successful Proposer is referred to herein as, Concessionaire ), certain food and beverage service concessions, the Concession, as further described herein, at Richmond International Airport ( RIC or Airport ). The Commission intends to select one (1) proposal from among those submitted by the qualified parties responding to this ( RFP ). The Commission specifically reserves the right to: (1) reject any and/or all proposals; (2) to waive technicalities and irregularities; (3) to make inquiries and request additional information from all Proposers; and (4) to select the proposal, which in the Commission s sole discretion, is judged to be in the best interest of the Commission. The Commission also reserves the right to re-solicit for proposals, or to proceed to provide the service otherwise if determined to be in the best interest of the Commission. The Concessionaire will be expected to completely develop the awarded concession spaces by engaging in design; permitting and construction; financing (if necessary); and operation of the facilities assigned. A combination of direct operation, selection, coordination and management of subtenants is also permissible. The concession spaces in this RFP consist of approximately four (4) locations measuring a total of approximately 9,600 square feet. Proposal documents may be obtained by contacting: Page 1 of 85 Mr. Russell L. Peaden Director Real Estate Richmond International Airport 1 Richard E. Byrd Terminal Drive Richmond International Airport, Virginia Phone: (804) Fax: rpeaden@flyrichmond.com

3 One (1) original and eight (8) copies of the proposal and all other information required by this ( RFP ) must be delivered to the address below by hand, mail or express mail or delivery, not later than the proposal due date and time. Proposals shall be sealed and clearly marked on the outside: Proposal for a CONCESSIONAIRE TO DEVELOP AND OPERATE FOOD AND BEVERAGE CONCESSIONS AT RICHMOND INTERNATIONAL AIRPORT Submitted in response to RFP The Commission will accept responses to this until: 4:00 P.M. (EST) on May 10, 2005 Delivery of a proposal to the at or before the time and date stated above is solely and strictly the responsibility of the Proposer. The shall not be responsible for delays caused by the United States Postal Service, overnight express mail services, or any other entity or occurrence. Under no circumstances will proposals delivered after the specified deadline time be considered. Late proposals will be returned to the Proposer unopened with a notation: This proposal was received after the specified deadline. A MANDATORY Pre-Proposal conference will be held on March 8, 2005 at the Boardroom, Richmond International Airport, VA at 10:00 A.M. to answer questions regarding this RFP. The Pre- Proposal conference will be followed by an informal networking session from approximately 12:00 P.M. until 2:00 P.M. in the same location. The purpose of the networking session is to allow companies to get to know each other to facilitate the development of teams. IT IS IMPERATIVE THAT ALL PROPOSERS READ, REVIEW AND UNDERSTAND THIS RFP AND ALL ATTACHMENTS. YOUR ATTENTION IS SPECIFICALLY DIRECTED TO THE DRAFT CONCESSION AGREEMENT ATTACHED AS EXHIBIT B. SPECIFIC TERMS AND CONDITIONS OF THE AGREEMENT TO BE AWARDED UNDER THIS RFP ARE CONTAINED THEREIN. Page 2 of 85

4 AMERICANS WITH DISABILITIES ACT NOTICE: Any person needing special accommodations for any pre-proposal conference, oral presentation and/or the public opening should contact the Commission s contact person listed below at least seven (7) days prior to the scheduled meeting. AIRPORT CONTACT: Mr. Russell L. Peaden 1 Richard E. Byrd Terminal Drive Richmond International Airport, Virginia Telephone: (804) Fax: (804) Rpeaden@flyrichmond.com Page 3 of 85

5 REQUEST FOR PROPOSALS NO FOR A CONCESSIONAIRE TO DEVELOP AND OPERATE FOOD AND BEVERAGE CONCESSIONS AT RICHMOND INTERNATIONAL AIRPORT OVERVIEW OF CONTENTS Sections I through III These Sections describe the schedule of events and introduce Proposers to the RFP process, the available concessions, and their locations. Sections IV through VI These Sections describe scope of services, the process of preparing the response to this RFP, the information required, the basic business terms of the agreement, and the responsibilities of the selected Concessionaire. Sections VII through VIII These Sections describe the award process, and the design approval and construction processes for the Concessionaires. Page 4 of 85

6 REQUEST FOR PROPOSALS RICHMOND INTERNATIONAL AIRPORT FOOD AND BEVERAGE CONCESSIONS TABLE OF CONTENTS Section I Proposal Schedule... 8 Section II Introduction and Overview... 9 Airport History Richmond, Virginia Current Airport Expansion Objectives Historical Data Mandatory Pre-Proposal Conference Questions Purpose and General Instructions General Information Special Conditions Interpretation of Proposal Document Financial Liability of Commission and Concessionaire Definitions Proposers to Make Own Investigations and Projections Remainder of the RFP Section III Section IV Operational Locations, Descriptions and Policies Background Areas for Reward Future Premises Non-Exclusivity Condition of Premises Concessionaire Construction Requirements Storage Regional Brands and Nationally Recognized Brands Expectation Knowledge of the Airport Principal Business Terms Term of Agreement Rentals and Fees Profit Sharing Monthly Reporting Requirements Capital Investment Mid-Term Refurbishments DBE Participation Conduct of Business Hours of Operation Pricing Policy Making Change for Passengers Security Clearances Performance Standards Distribution Insurance Page 5 of 85

7 Section V Scope of Services Section VI Section VII Section VIII Award and Agreement Commencement Process Selection Process Agreement Award Failure to Execute Agreement Design Approval and Construction Airport Project Coordinator (APC) Design Review Construction Permit Approval Commencement of Construction As-Built Drawings Transition Plan Proposal Instructions Introduction Minimum Qualifications Method and Place of Submittal Proposal Duration Proposer s Responsibility Disqualification Rights of the Commission Virginia Freedom of Information Act Public Information General Proposal Format and Information Requirements Proposal Description Section IX Proposal Forms Proposal Checklist Proposer s Statement Qualifications Questionnaire Proposal Form for the Food and Beverage Concession at RIC Non-Collusion Affidavit Lobbying Affidavit Standard Clause for Solicitations, Contracts, and Subcontracts as Required for 49 CFR Part 29 Equal Opportunity Report Statement as Required by 41 CFR (b) Certification for Non-Segregated Facilities No Proposal Submission Exhibit A Exhibit B Concession Areas Concourse A Concessions Concourse A Concessions Storage Atrium Concessions Atrium Apron Level Kitchen and Storage Concourse B Concessions Draft - Food and Beverage Concession Lease Agreement Page 6 of 85

8 Page 7 of 85

9 SECTION I - PROPOSAL SCHEDULE Page 8 of 85

10 SECTION I - PROPOSAL SCHEDULE The Commission anticipates the following tentative schedule for the submission of proposals and the selection, award, and commencement of the concessions under this RFP. March 8, 2005 March 22, 2005 April 5, 2005 May 10, 2005 June 7, 2005 July 26, 2005 January 1, 2006 Mandatory Pre-Proposal Conference at 10:00 AM Deadline for Questions from Interested Parties Commission Written Response to Questions or Comments Proposals Due by 4:00 P.M. Oral Presentations (Anticipated) Commission Approval (Anticipated) Contract Start Date (Anticipated) All dates are subject to change without notice and without liability to the Commission or its associates. After award of the Concession and Lease Agreement, a design review and approval process will precede construction, as per the schedules contained in the RFP and the attached Draft Concession and Lease Agreement (Exhibit B). After award of the Concession and Lease Agreement, Commission staff will meet with the Concessionaire to finalize a draft lease. The Concession and Lease Agreement will require final approval by the. Page 9 of 85

11 SECTION II - INTRODUCTION AND OVERVIEW Page 10 of 85

12 SECTION II - INTRODUCTION AND OVERVIEW The Commission is in the process of repositioning its concession program at RIC to coincide with the construction of the new Terminal Building and to meet the expectations of today and tomorrow s traveling public. The Commission recognizes that airline passengers have product quality, price/value relationship, and speed of service standards that must be met consistently by concessions at airports across the country. The Commission s objective is to create the most passenger-friendly airport possible. One of the greatest tools available to achieve this objective is the creation of an amenities environment that enhances customer satisfaction. A. AIRPORT HISTORY - RICHMOND, VIRGINIA, CAPITAL OF THE COMMONWEALTH OF VIRGINIA. On March 21, 1927, the city of Richmond commenced development of an airfield to meet the planned arrival of Aviation Great, Charles Lindbergh. The airfield was named after a famous Virginian explorer-aviator Admiral Richard E. Byrd. Aviation and aeronautical activity was not new to Richmond even in 1927, the area now occupied by the airport saw observation balloons in use during the Civil War and as early as 1909, a heavier-than-air flight was made by a 1909 Curtiss Pusher aircraft from the State Fairgrounds nearby. In 1910, the Wright brothers sent a Model-A aircraft to the State Fairgrounds and Richmond Mayor Richardson was one of the first public officials to fly in such an aircraft. During WWI, Richmond became the location for one of the largest assembly plants for Curtiss Jenny training aircraft in the country, the plant eventually closed in The late 1920s saw further expansion as the airfield started to take shape and airmail services commenced. In 1932, Eastern Airlines started scheduled passenger service. During WWII, the city field was leased to the US Government and Byrd Field became the Richmond Army Air Base. After the war, the base returned to the City and major passenger improvements were added to the airport. In 1950, a new terminal was added and dedicated to Admiral Richard E. Byrd. Improvements over the years added more facilities and greater passenger services. In 1976, by an act of the General Assembly the was created and in its role as a multi-jurisdictional authority it continued to promote growth and expansion of the airport. In 1985, Byrd Field became the Richmond International Airport and had the additional honor of becoming the first airport in the world to obtain a microwave landing system for enhanced all weather capabilities. The late eighties saw increased terminal expansion, second level aircraft boarding and improved access roads to the airport B. CURRENT AIRPORT EXPANSION Page 11 of 85

13 In the mid 1990s, the Airport Commission embarked on its current program of preparing the airport for the 21 st century with plans for a new terminal and separate levels for departures and arrivals with all the conveniences of current airport design. Recent renovations to Concourse A and expansion of Concourse B have added new gates and new interiors throughout, paving the way for the final phase of the airport facility expansion. The Commission is preparing to commence construction on its new Terminal Building which will offer two levels for separating departures to the second floor and arrivals on the ground floor. Thus, the airport will have more room for increased passenger traffic in the future. Concession space located in the atrium and concourses will remain. It is currently anticipated that the new Terminal Building areas will be fully open in approximately two years. C. OBJECTIVES The Commission s primary goal for its concession program is to maximize customer satisfaction by providing a broad variety of quality products and services to travelers and airport users with innovative concepts that impart broad customer appeal, while providing necessary revenue to the Commission. To meet these goals and objectives, the program should: 1. Provide quality food and beverage services with a selection of concepts and tenants that address today s concession trends and allow for flexibility in a changing environment. 2. Present attractive, welcoming concessions that create a sense of place without interfering with passenger flows or operation of the Airport for air travel. 3. Provide a high level of customer service with competitive pricing, cleanliness, variety and choice of food products, accessible stores and programs to satisfy airport users. 4. Achieve a balance of local, regional and national brands reflecting a sophisticated mix of concepts appealing to a wide variety of customers. D. HISTORICAL DATA The tables in this section provide historical data and trends. The following table shows the historical enplanements at the Airport from calendar years 1996 through Page 12 of 85

14 RIC Enplanement History Year Enplaned Passenger s % +(-) ,082, ,190, % ,292, % ,320, % ,351, % ,208, % ,186, % ,200, % ,252, % The following table provides monthly enplanements for 2002, 2003 and RIC Historical Enplanements (Monthly 2002, 2003 and 2004 Through June 30) Month January 73,491 81,364 82,033 February 74,552 80,328 87,259 March 96,539 96, ,222 April 97,214 97, ,309 May 108, , ,616 June 108, , ,093 July 105, , ,377 August 112, , ,483 September 94,110 90,999 95,404 October 106, , ,820 November 100, , ,897 December 109, , ,871 Total 1,188,843 1,202,439 1,252,384 Page 13 of 85

15 The following table provides historical airline market share data for 2002, 2003 and 2004 Airline RIC Airline Market Share 2002, 2003 and US Airways American/American Eagle Delta United Continental Northwest Other The current location of airlines is as follows: Concourse A: Concourse B: US Airways American / American Eagle Delta United Continental Northwest Charter Gate The table below summarizes the food and beverage concessions performance at RIC for 2002, 2003, and RIC Food and Beverage Historic Sales Atrium Facilities 2,646,837 2,678,355 2,735,226 Concourse A 457, , ,387 Concourse B 402, , ,680 Ticketing Level 106, ,259 65,466 Page 14 of 85

16 E. MANDATORY PRE-PROPOSAL CONFERENCE THE COMMISSION HAS SCHEDULED A MANDATORY PRE-PROPOSAL CONFERENCE ( PRE- PROPOSAL CONFERENCE ) ON MARCH 8, THIS CONFERENCE WILL BE HELD AT THE CAPITAL REGION AIRPORT COMMISSION BOARDROOM, MAIN TERMINAL, RICHMOND INTERNATIONAL AIRPORT, VA AT 10:00 A.M. DIRECTIONS CAN BE OBTAINED BY CALLING (804) /8520. Any addenda or revisions to the RFP resulting from the Pre-Proposal Conference will be developed as expeditiously as possible and distributed to all parties on record as having requested and received the RFP and who have attended the Pre-Proposal Conference. It is solely the Proposer s responsibility to ensure that they receive any and all addenda or revisions resulting from the Pre-Proposal Conference. Proposers requiring additional information concerning the Pre-Proposal Conference should contact Russell L. Peaden, at the address below. Proposers must acknowledge receipt of any addenda on the Proposal Form. Failure to do so may result in the rejection of the proposal. All requests for information must be made in writing. The Commission is not responsible for verbal representations. ATTENDANCE AT THE MARCH 8, 2005 PRE-PROPOSAL CONFERENCE IS MANDATORY FOR THE CONCESSIONAIRE. PROPOSALS RECEIVED FROM PROPOSERS NOT IN ATTENDANCE WILL NOT BE CONSIDERED. Immediately following the Pre-Proposal Conference the Commission will provide the opportunity for local, small and disadvantaged businesses to meet and present their qualifications to attending Proposers. Commission representatives will not be in attendance and accordingly no questions will be answered regarding the RFP or the proposal evaluation process during this networking session. Any additional questions that are raised during or after the networking session, and properly submitted for response, will be addressed by the Commission in writing in an Addendum to the RFP. F. QUESTIONS Proposers having questions about this RFP must submit them in writing to: Page 15 of 85 Mr. Russell L. Peaden 1 Richard E. Byrd Terminal Drive Richmond International Airport, Virginia Fax (804)

17 Questions arising subsequent to the Pre-Proposal Conference must be submitted in writing and received by the Commission by 4:00 p.m. (EST) on March 14, The purpose of the Pre-Proposal Conference will be to discuss the requirements and objectives of this RFP, to answer questions about the RFP and the Agreement, and to answer general questions about the Commission s concessions. The Commission will attempt to answer all questions received at the Pre-Proposal Conference, reserving the right, however, to answer any question in writing in an Addendum to the RFP. All written questions and requests for clarifications received by 4:00 p.m. (EST) on March 14, 2005, as well as those questions asked during or received prior to the Pre- Proposal Conference on February 28, 2005, will become part of the RFP process and will be answered in writing in the form of an Addendum to this RFP. Questions received after 4:00 p.m. (EST) on March 14, 2005 will not be answered by the Commission and will not become part of the Addendum. The Commission will not answer any questions by telephone or in person, except at the Pre-Proposal Conference. G. PURPOSE AND GENERAL INSTRUCTIONS This ( RFP ) provides the opportunity for all interested and qualified Concessionaires to compete for the opportunity to develop and operate or manage the food service facilities at RIC. This RFP gives specific instructions on what to include and how to format your Proposal. Exhibit B consists of the proposed Lease and Concession Agreement ( Agreement ) under which the Concession will be operated. It is imperative that all Proposers review the Agreement, as it contains the legal terms of the operation and other information necessary to make proposals responsive and viable. H. GENERAL INFORMATION 1. Statistical information contained in these documents is for information purposes only. The Commission is not responsible for any inaccuracies or interpretations of said data, and makes no representations or forecasts or estimates as to future enplanements or future revenues. 2. The RFP and its attachments and exhibits are a complete document that must be read in its entirety. The Commission will not disseminate any portions of the package in discrete portions. Page 16 of 85

18 I. SPECIAL CONDITIONS 1. Electronic Communications Like most operators of airports worldwide, the Commission has become increasingly concerned regarding the proliferation of wireless systems, both in the licensed and unlicensed frequency bands within its facilities. It is very important to note that any approval by the Commission and subsequent installation by any tenant, of a wireless network would be granted only with the explicit understanding that the tenant agrees to comply with the Commission s Wireless Network Policy. 2. Anti-Lobbying Provision All firms are hereby placed on notice that neither the Capital Region Airport Commission, its members, nor any Commission employee or agent wishes to be lobbied, either individually or collectively, regarding this or the Concession. During the entire procurement process, all firms, their subcontractors, joint venture partners, sub consultants, subtenants and agents are hereby placed on notice that they are not to contact any persons listed above for lobbying purposes (including meetings of introduction, dinners, etc.), if they intend to submit or have submitted a Proposal in respect of the Concession. ANY FIRM CONTACTING INDIVIDUALS MENTIONED HEREIN IN VIOLATION OF THIS ANTI-LOBBYING PROVISION WILL BE AUTOMATICALLY DISQUALIFIED FROM FURTHER CONSIDERATION FOR THIS REQUEST FOR PROPOSALS. All firms and their subcontractors, sub-consultants and any agents, must submit individual affidavits with their Proposal, using the Lobbying Affidavit attached hereto, stating that they have not engaged in lobbying activities or prohibited contacts in order to be considered for the Concession or the resultant contract related thereto. Joint ventures must submit a separate Lobbying Affidavit for each joint venture partner. Any Proposer that does not submit the required Lobbying Affidavit for itself and each of its subcontractors, sub-consultants and agents will be automatically disqualified from further consideration for the Concession. J. INTERPRETATION OF PROPOSAL DOCUMENT Page 17 of 85

19 1. Any change by the Commission to the documents relating to this RFP, including but not limited to the Agreement, will be made by written addendum. 2. The Commission is not responsible for any explanation, clarification, interpretation or approval made or given in any manner except by written addendum. K. FINANCIAL LIABILITY OF COMMISSION AND CONCESSIONAIRE The Commission and the Concessionaire will not be, and shall not be considered to be, joint venturers, partners, or agents of each other, and neither shall have the power to bind or obligate the other except as specifically set forth herein and the Agreement. The Commission shall have no liability to any party for any debts, obligations or liabilities incurred by the Concessionaire or its subtenants or by any business conducted on or off the Airport in connection with the operations of the Concessions at the Airport. L. DEFINITIONS In addition to terms defined elsewhere, the following definitions will be used in this RFP. Concession Areas - means the areas that the Concessionaire will develop, lease, manage, and market, in accordance with the terms and conditions set forth in the Agreement in which the Concession Areas are referred to as Leased Premises. Concession Fee As specified in the Agreement, the greater of the percentage of Gross Revenue per concession category or the Minimum Annual Guarantee for the applicable period in the Agreement owed to the Commission by the Concessionaire. Concession Program The Commission s overall plan for the development and operation of first class concessions at the Airport to serve the needs of the traveling public. Concessionaire - shall mean the person or legal entity that operates a concession and pursuant to this RFP, is selected by the Commission as the Concessionaire and enters into a fully executed Agreement with the Commission covering the operation of the Concession. Day - A calendar day of twenty-four (24) hours measured from midnight to the following midnight. Disadvantaged Business Enterprise (DBE) - A DBE is a business entity that is at least fifty-one percent (51%) owned and controlled by a socially and economically disadvantaged individual as such term is defined in the Airport and Airway Improvement Act of 1982 as amended, and the regulations promulgated pursuant thereto. DBEs must meet the experience and economic guidelines set forth in 49 CFR Page 18 of 85

20 Parts 23 and 26. All DBEs must be certified by (i) VDOT, through the Commonwealth of Virginia s Department of Minority Business Enterprise or (ii) if an out-of-state company licensed to conduct business in the Commonwealth, possesses a DBE certification from an out-of-state DOT program meeting FAA UCP guidelines subject to Commission investigation and verification. Individuals who are presumed to be socially and economically disadvantaged include women, African-Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, and Asian-Indian Americans. Drawings - Documents showing the layout of the proposed Concession locations. First-Class Manner - The Concession s operative character and quality such that the standards for cleanliness and customer service meet those of upscale malls and similar non-airport retail/food and beverage facilities. Gross Revenues The term shall mean gross revenue, as determined in accordance with generally accepted accounting principles, derived from all Food Concession business transactions or operations conducted at, from or involving the food concession assigned area(s) or other authorized locations, regardless of place of performance or delivery, by or for the account of Concessionaire without reserve or deduction for inability or failure to collect, but excluding (i) the amount of any state or local sales tax paid or payable thereon, (ii) any and all sales returned for refund or credit and (iii) receipts from the sale or trade-in value of any equipment or material used on the premises by Concessionaire and which is replaced by equipment or material of comparable utility, and as further defined in the Agreement. He, Him, His - Used solely for legibility/ease of writing. This applies equally to both genders. Minimum Annual Guarantee ( MAG ) - The amount, proposed by the Concessionaire and as annually adjusted by the Agreement, that the Concessionaire guarantees as the minimum annual payment to the Commission in the event the Concessionaire s Concession Fees owed to the Commission are less than the MAG for the applicable period. Minimum Qualifications - The minimum standards that are set forth in this RFP, which the Proposer must meet for its proposal to be considered responsive and responsible, include without limitation Article VIII. Proposal - The document requested by the Commission and submitted by a Proposer in accordance with this RFP. Proposer - An individual or business entity submitting a response to this RFP. Reasonable Pricing Policy specifies that all food and beverage products offered for sale by Concessionaire shall be priced reasonably in comparison to non-airport Page 19 of 85

21 establishments located within a 40-mile radius of RIC, offering similar type and quality products to the general public. Such comparison and reasonable pricing shall be determined solely by the Commission, but generally prices no more than ten percent (10%) over the average of a minimum of three (3) like non-airport establishments for similar menu items of similar portions and presentations shall be reasonable. Sublease - a sublease, license, permit or concession agreement, or any other form of written agreement, however denominated, including any renewal or modification thereof, creating the right to use or occupy portions of the Concession Area between the Concessionaire and a third party, subject to the Commission s approval. Subtenant - a sole proprietor or business entity having the right to use or occupy a portion of the Concession Area under a Sublease, subject to the Commission s approval. Tenant - the Concessionaire. TSA - the United States Transportation Security Administration, and any successor agency, office or department thereto. M. PROPOSERS TO MAKE THEIR OWN INVESTIGATIONS & PROJECTIONS This RFP has been designed so Proposers can follow a step-by-step process from Proposal preparation, to submittal, to evaluation and award. Although the Commission believes that the historical data, and statistics, contained herein are accurate, the Commission cannot guarantee the accuracy of such information, and Proposers should investigate such matters to their own satisfaction and make their own projections. Proposers may not rely on any implied representations or warranties (the existence of which are hereby disclaimed), or the accuracy of any projections or other information provided in connection with this RFP. Proposers should make independent and expert investigation and evaluation of all information provided in connection with this RFP. Each Proposer is responsible for making all investigations and examinations necessary to submit a Proposal to undertake the Concession. Failure to do so will not waive any condition of this RFP or the Concession Agreement. Submission of a Proposal shall be conclusive that the Proposer has made such investigations and examinations. N. REMAINDER OF THE RFP The remainder of the RFP is outlined as follows: Section III: Operational Locations, Descriptions & Policies This section provides specific information such as the locations of the Concession area, approximate square footage, and concepts. Page 20 of 85

22 Section IV: Principal Business Terms This section outlines the specific business terms such as the MAG and privilege fees, term of Agreement, and capital investment. This RFP requires a minimum annual rent, and Proposers may submit offers above the required minimums to enhance the competitiveness of their Proposals if they so desire. Section V: Scope of Services This section outlines the specific responsibilities required of the Concessionaire relative to leasing, construction coordination and management of the Concession Areas. Section VI: Award Process This section outlines the evaluation and award process. Section VII: Design Approval and Construction This section outlines the general procedures for the Commission s design review and approval, and construction of the Concessionaire s approved improvements. Section VIII: Proposal Submissions Specific instructions are provided herein regarding the information that should be included in the Proposal and the order and format in which it should be presented. Forms This section includes the forms Proposers are required to use. Proposals are to be comprised of the required forms and the required written submission. Alterations, additions and/or modifications to these forms will not be accepted and may be cause for rejection of a Proposal. Exhibits The exhibits to the RFP provide additional information as referenced in the RFP. A. Concession Areas B. Draft Agreement Page 21 of 85

23 SECTION III - OPERATIONAL LOCATIONS, DESCRIPTIONS AND POLICIES Page 22 of 85

24 SECTION III - OPERATIONAL LOCATIONS, DESCRIPTIONS AND POLICIES A. BACKGROUND The Commission is requesting proposals from interested parties to develop and operate or manage four (4) food and beverage concession areas throughout the Terminal Building. The Commission believes that the terminal offers several unique and highly visible opportunities for the Concession. To develop an appreciation of the potential concession opportunities at the Airport, interested parties are encouraged to visit the Airport and tour the existing terminal, subject to security restrictions. B. AREAS FOR AWARD Exhibit A displays the Concession Area covered by the draft Concession Agreement. A wide variety of spaces are being made available for concession development. The Proposer will have the opportunity to propose concepts and subtenants for specific spaces and to suggest adjustments in walls within the Concession areas to create spaces that it believes will best meet the goals of the Concession Program, subject to the Commission s approval. However, Proposers may not suggest modifications to the footprint of the Concession Areas with the exception that the Proposer may be allowed to create projected storefronts in the Terminal Building subject to the approval of the Commission. No additional space can be created in the existing or currently planned space outside the footprints that have been identified as being available. Due to security requirements, construction, and other demands for space within the Terminal, there may be changes in the number, location, or type of various concessions at any time and the Proposer agrees, by the submission of a response to this RFP, to accept this as a condition of operation at RIC. The Commission cannot and does not guarantee that the square footage data is final or precise. The tables below show current usage, Exhibit A reflects the Commission s recommendation on Food and Beverage and Retail concession locations. The following areas comprise the Concession Areas: 1. Atrium areas - The Atrium areas are located pre-security and are comprised of the following locations: Current Facility Concept Space # Square Feet Richmond Cafe/Bar AT2030 3,514 Page 23 of 85

25 Smokehouse AT2025 1,538 Jake s Coffeehouse AT Bon Bon Voyage* AT nd Floor Prep Kitchen AT2031 1,046 1 st Floor Prep Kitchen & Ofc Exhibit A 5,270 Total 11,841 * Bon Bon Voyage is currently a retail location that will be reassigned and included in the food and beverage location under the new plan. Proposers are required to propose a variety of concepts for these areas. Subject to some structural limitations (i.e. the placement of elevators, stairwells, columns, etc.), the area may be reconfigured to better accommodate the proposed concepts. Specifically, the Commission desires a variety of quick service meal options, a full-service casual dining facility and bar, and specialty food options such as premium or gourmet coffee, baked goods, ice cream/yogurt, etc. It is strongly encouraged and highly desirable that national and regional brands be represented in this area. 2. Ticketing areas - The concession program calls for the elimination of the current pre-security location, Café Espresso (333 square feet). No concessions are planned for the new 2 nd Floor ticketing area. 3. Concourse A - This area is comprised of the following locations: Current Facility Concept Space # Square Feet Vacant A The Hitching Post (MCS) A2407 1,375 Freshens * 229 Total 1,954 * Freshens Concession Space will be eliminated during the Security Check Point Expansion Space A2306 inside Concourse A of approximately (350) square feet may be Page 24 of 85

26 developed as a specialty food operation such as a gourmet or premium coffee location. Proposals for concepts for space A2407 must include food and bar service. 4. Concourse B - The area to be awarded under the lease is comprised of one facility located on Concourse B. The facility is labeled as B2206 on Exhibit A and is comprised of 1,240 square feet. Proposers are required to propose food and bar service in this area. C. FUTURE PREMISES - NON-EXCLUSIVITY After the award of the Concession, the Commission may identify space for future concession development in areas not part of the current Concession Areas. The Commission may request that the Concessionaire develop and lease this space, subject to the Commission s approval of the proposed use and negotiation and execution of a written amendment to the Agreement. The Commission also reserves the right to issue additional requests for proposals, requests for bids or directly negotiate with other parties to develop such space. Concessionaire shall not have any exclusive right to lease such space. The Commission will also retain the right to reclaim or relocate premises during the Agreement period, as needed for Airport development, security requirements, or other Commission needs. D. CONDITION OF PREMISES Recently constructed areas will be delivered in a shell condition. Existing areas will be delivered in as is condition after the removal of any non-permanent improvements by the current operator. Construction of all improvements (including but not limited to storefront, ceiling, flooring, walls, extension of utilities, including HVAC and controls etc.) will be the responsibility of the Concessionaire and/or its Subtenants and will be subject to the Commission s prior approval. E. CONCESSIONAIRE CONSTRUCTION REQUIREMENTS The Concessionaire will be required to design, construct, install fixtures, and stock the proposed facilities, or cause its Subtenants to do so. All facility design shall have prior Commission review and written approval. Concessionaire s improvement criteria shall be compatible with Commission design. F. STORAGE Page 25 of 85

27 It is important to note that a limited amount of square footage has been identified for storage. Proposers are advised that the use of off-airport storage facilities may be necessary. Any storage space provided on-airport shall be subject to reclamation by the Commission at any time without any requirement that the Commission replaces reclaimed storage space. G. REGIONAL BRANDS AND NATIONALLY RECOGNIZED BRANDS EXPECTATION As the gateway to central Virginia and its capital city, RIC has an important role in the economic development of this growing region. The Commission wishes to present the cuisine, products, and brands of the region as well as nationally recognized brands and concepts which have high appeal to the traveling public. All proposals should seek to incorporate these aspects into the concession program through their merchandising plans to appeal to the sophistication of today s traveling public. H. KNOWLEDGE OF THE AIRPORT Employees at all concession locations are expected to be able to assist the traveling public with finding their way within the Airport. As such, the Concessionaire and any Subtenants are expected to ensure that their employees are provided with information regarding the locations of other concessions, restrooms, elevators, airlines, gates, information desks, etc. and that such information is provided upon request and with all due courtesy and dispatch. Also, the Concessionaire is expected to provide any Subtenant location with a list of emergency and other important numbers, as well as the means for store employees to respond to customers requests for information. Page 26 of 85

28 SECTION IV PRINCIPAL BUSINESS TERMS Page 27 of 85

29 A. TERM OF AGREEMENT SECTION IV PRINCIPAL BUSINESS TERMS The Commission anticipates entering into a Concession Lease Agreement ( Agreement ) with the Concessionaire for a term of ten (10) years. The term of the Agreement will commence on January 1, 2006 and will terminate on December 31, 2015 at 11:59 p.m. The rights and privileges granted to the Concessionaire will not be exclusive, and the Commission reserves the right to use or otherwise permit its facilities, other than specific locations leased to the Concessionaire, to be used for any activities whatsoever. B. RENTALS AND FEES The Concessionaire will be expected to enter into an Agreement in substantially the same form as the proposed draft Concession Agreement attached to this RFP as Exhibit B. Except for the rentals and fees listed below, to which Concessionaire will not be released, Concessionaire may not pass on any other fees, charges, or expenses to Subtenants, if any, without the prior written approval of the Commission. The Agreement will include the requirement to pay the Commission on a monthly basis a Concession Fee equal to the greater of: The Concessionaire s proposed Minimum Annual Guarantee payment; OR A Concession Fee that is derived by multiplying the bid percentage of Gross Revenue per category of concession offered. 1. Minimum Annual Guarantee ( MAG ) Using the Official Proposal Form each Proposer must propose a minimum guaranteed annual payment (the Minimum Annual Guarantee). For the first year of operation, the lowest acceptable Minimum Annual Guarantee payment is $450,000. For each year after the first full year, the Minimum Annual Guarantee payment shall be the greater of the first year MAG or eighty-five percent (85%) of the previous year s actual rent payments. Page 28 of 85

30 Minimum Annual Guarantee shall abate for any thirty (30) day period in which the number of deplaned passengers from scheduled airline flights during such thirty (30) day period shall be less than eighty percent (80%) of the number of enplaned passengers during the same period in the preceding year. Such abatement shall be an amount equal to the percentage decrease in the enplaned passenger count. 2. Concession Fee Using the Official Proposal Form (Form A) each Proposer must propose a percentage of Gross Revenue to be paid to the Commission for each category of services offered. The percentage fee in the following table is the minimum allowable fee established per category. Minimum acceptable percentage fee per category Food and Non-Alcoholic Beverage Sales (other than full service restaurant) - 10% Full-Service Restaurant Food and Non-Alcoholic Beverages - 8% Alcoholic Beverages - 15% Inflight Catering - 5% C. PROFIT SHARING In addition to all other sums payable under the Agreement by way of Concession Fees, rent, additional rent or otherwise, Concessionaire shall pay to the Commission fifty percent (50%) of its annual profits from the operation of the Concession according to section 5.02 of the Agreement. D. MONTHLY REPORTING REQUIREMENTS On a monthly basis, starting with the commencement of the Agreement, the Concessionaire will be required to provide a monthly report of Gross Revenue broken down by unit and by category (i.e., food and non-alcoholic beverages, alcoholic beverages, and merchandise and as further defined by the Commission) sales by unit and peak hour. E. CAPITAL INVESTMENT The Concessionaire and/or its Subtenants will be required to submit proposed amounts that Page 29 of 85

31 will be expended to construct each Concession Area. The total proposed amount shall not be less than $2,100,000. A schedule of the actual expenditures is required to be provided to the Commission within ninety (90) days of opening the Concession to confirm compliance with the proposed expenditure. A signed statement by the Concessionaire or the Subtenant (as applicable) certifying that to best of their knowledge and belief the schedule is true and correct and receipts for all expenditures listed must accompany the schedule of expenditures. Non-receipted expenditures will not be credited. If the approved amount is below the proposed amount, the Concessionaire or the Subtenant (as applicable) will be required to pay the difference between the proposed investment and the amount approved by the Commission, within ninety (90) days after opening of the Concession Area for which the expenditure was required. Only the following items will be counted toward the required expenditure: a. Directly contracted construction costs; b. Furniture, fixtures, decorative treatments, and equipment purchased for and used in the premises; and c. Design and engineering costs, excluding in-house costs, not to exceed fifteen percent (15%) of the total approved cost of the unit project as included in a and b above. All design and construction costs are subject to the Commission s approval and the acquisition of required permits. The Commission reserves the right to perform an audit of the expenditures to verify the accuracy of the report, with Concessionaire or the Subtenant (as applicable) to reimburse the Commission if discrepancies are found. F. MID-TERM REFURBISHMENTS Concessionaire shall be required to submit a proposed amount to spend and invest or cause Subtenants to spend and invest (in each case subject to the same procedures applicable to the initial build-out of fixed improvements, including the prior approval of the Commission) for refurbishments or other upgrades of the Concession Areas at the end of the fifth year of operation of the Concession. The proposed amount may not be less than $500,000. No later than the January 1, 2010, the Concessionaire shall present a refurbishment plan to the Commission for its review and approval. No later than January 1, 2011, the Concessionaire shall provide to the Commission such back-up data as the Commission may reasonably request to confirm that such refurbishment and upgrade has been made. A schedule of the expenditures is required to be provided to the Commission within ninety (90) days of completion of the refurbishment to confirm the minimum expenditure. A signed statement must accompany the schedule of expenditures by the Concessionaire or the Subtenant (as applicable) certifying that, to best of its knowledge and belief, the schedule is true and correct and receipts for all expenditures are listed. Non-receipted expenditures will not be credited. If the approved amount is below the proposed amount, the Concessionaire or the Subtenant (as applicable)will be required to pay the difference between the proposed investment and the amount approved by the Commission, within ninety (90) days after opening of the Page 30 of 85

32 Concession Area for which the expenditure was required. Payment of any amounts due to the Commission as liquidated damages under the Agreement shall accompany the schedule of expenditures. The Commission reserves the right to perform an audit of the expenditures to verify the accuracy of the report. G. DBE PARTICIPATION Commission Policy - The policy of the Commission is to aggressively seek DBE participation in its concession opportunities through all lawful means; to ensure nondiscrimination in the award and administration of its concession contracts; to create a level playing field on which DBEs can compete fairly for concession contracts; to ensure that its DBE Program is narrowly tailored by utilizing race neutral/race conscious means; to ensure that only firms that fully meet 49 CFR Part 23, subpart F, and Part 26 eligibility standards are permitted to participate as DBEs; to help remove barriers to the participation of DBEs in concession contracts; and to assist in the development of firms that can compete successfully in the marketplace outside the DBE Program. DBE Participation Goal. The DBE goal established for this contract is a minimum of 15 percent (15%). This goal may be achieved through subleases to certified DBE Subtenants or to certified DBE joint ventures, or Joint Ventures with certified DBE(s). The successful Proposer will be required to make good faith efforts to ensure that at least 15 percent (15%) of the total gross receipts generated by the food service businesses at RIC are generated by DBEs. To that end, Proposers shall submit a Disadvantaged Business Enterprise Plan containing the required information outlined in Section VIII of this RFP. H. CONDUCT OF BUSINESS The Concessionaire and any Subtenants shall have the right to use public Airport facilities in common with others authorized to do so, which right shall be exercised in accordance with the laws of the United States of America and the Commonwealth of Virginia, the rules and regulations promulgated by the Commission and all reasonable and applicable rules and regulations of the Airport. I. HOURS OF OPERATION All Concession Areas shall be operated seven days a week, three hundred sixty five (365) days a year. Concession Areas on the Concourses shall be open from [one and one-half (1½)] hours before the first scheduled departure of the day from that Concourse or, if later, the time the TSA opens the Concourse to the public) until the last actual departure of the day on that Concourse. Concession Areas in the prescreening Atrium shall be open from [one and one-half (1 ½)] hours before the first scheduled departure of the day until the last actual arrival of the day. It should be noted that due to unusual circumstances (delayed flights, weather, etc.) the Page 31 of 85

33 Commission reserves the right to direct select locations to remain open beyond the designated operating hours. A plan for handling such emergency situations shall be submitted in your proposal. The Concessionaire shall work with any of its Subtenants to establish reasonable procedures for adjusting Concession Area opening and closing times based on daily flight schedules, and incorporating those schedules into shift schedules for Subtenants staff, as well as for receiving and disseminating schedule changes, weather or maintenance delays or other flight information which will require adjustments in Subtenant operations. Such requirements for operating hours and flexibility shall be included in all Subtenant agreements. The Commission reserves the right to adjust facility-operating hours as necessary to meet customer demand. Additionally, it is expected that, at each location, the Concessionaire will work with its Subtenants to ensure that they are aware of what the peak hours are for each location and will staff the facility appropriately to provide excellent customer service and avoid service lines. The Commission s objective is to provide exemplary customer service while maintaining good overall location profitability. It is acknowledged that certain operating hours for some units may not be individually profitable; nonetheless, if the Agreement requires operation during that time, that requirement will be enforced. J. PRICING POLICY In the airport industry, when the public recognizes that there is a good price/value relationship, and they are offered a wide choice of appropriate products for their spending capability, we believe that both the number of transactions and total gross sales increase. In keeping with the Commission s desire to make RIC a passenger friendly airport, a reasonable pricing policy will be initiated to ensure that Airport prices are within ten percent (10%) of the prices at non-airport establishments offering similar type and quality products to the general public that are located within a 40-mile radius of the Airport. The Commission will determine such radius. Prices no more than ten percent (10%) over the average of a minimum of three (3) like non-airport establishments for similar menu items of similar portions and presentations shall be deemed to be reasonable. Prices are to be checked by the Concessionaire on a semi-annual basis to assure compliance with this policy. The Concessionaire will compare the prices of twenty-five percent (25%) of those items offered in each concession location to the prices of similar items in three (3) local non-airport establishments within a 40-mile radius of the Airport. The Commission will determine such radius. The Concessionaire or its Subtenants shall be given seven (7) calendar days to bring all products into compliance with the prices found in the survey. Failure to do so may result in the assessment of liquidated damages. In addition, each concession must offer at least a ten percent (10%) discount (excluding purchases of alcoholic beverages) to Airport employees and other Commission badged Page 32 of 85