Denver International Airport Request for Qualifications (RFQ) Gate Holdroom Concession Services Concourse C West Expansion I. OVERVIEW / SCOPE OF WORK A. DESCRIPTION The City and County of Denver ( CCD ), for and on behalf of its Department of Aviation, which operates Denver International Airport is seeking statements from qualified concessionaires ( Concessionaires ) to provide gate holdroom food & beverage and retail concession services to passengers utilizing Denver International Airport ( DEN ). BACKGROUND Airports around the world are increasingly looking to use their property assets and connectivity, to generate non-airline revenues and to transform the customer travel experience. Generating higher overall revenues from space within the terminal is critical to an airport s ability to remain financially self-supportive, fund its future capital needs and attract new carriers to the airport as in an effort to remain competitive in an increasingly challenging global market. Over the last few years, many domestic US airports have sought new ideas and implemented new concession concepts to improve customer choice and convenience, all while increasing their revenues. Many airports have looked to re-purpose airline leased space in order to improve overall financial return to the airport and with their concessionaire partners have developed insightful re-use strategies that CCD aims to solicit ideas for and employ at DEN. Airports are working to address the challenge of customers that are reluctant to leave their gate area to pursue dining or shopping opportunities, significantly increasing their capture rates. DEN s current concession program is operating at a relatively high level of revenue performance. In Concourse C, this high level of performance can mostly be attributed to the increased passenger counts and lack of developed concession space. Overall, while the high revenue per square foot performance figures are excellent, the figures can also be indicative of a lack of concession space to serve the customers. Concourse C s revenue per square foot figures are the highest of all of DEN s three concourses, indicating a need to develop additional concessions space for the growing number of Concourse C customers. Southwest Airlines operations in Concourse C at DEN are continuing to grow and in early 2013, CCD began the design and construction of a temporary gate holdroom expansion on the west end 1
of Concourse C. This expansion is currently in design and will include six narrow body gate holdroom areas and limited additional concessions space. Southwest has committed to the use of these six gate hold areas once the construction is complete, which is estimated to be November, 2014. In order to maximize the potential for improved customer service and to provide the required amenities, CCD is moving forward on a strategy to utilize some of the typically airline-leased gate holdroom space as operational concessions space. OBJECTIVES AND GOALS This gate holdroom concession services strategic effort must support these major objectives: 1) First and foremost, and above all else, improve the customer travel experience; 2) Develop a new and sustainable non-airline revenue source by re-purposing space previously leased to DEN s airline partners; 3) Optimize the utility and value of the gate holdroom property for the customer, the airline and the airport; 4) Work seamlessly with the affected airline(s) and their customers to make certain the airlines operational needs are met and, wherever possible, enhance the airline customers experience while waiting for their flight by integrating state-of-the-art technology, dining, and retail services in to the gate holdroom environment; 5) The proposed concept will incorporate industry-leading concession practices and standards that complement and enhance the customer travel experience. PREMISES DESCRIPTION & INFORMATION The Premises will be constructed as a component of the Concourse C west end gate holdroom expansion program. This program is currently in the design phase of development. All the grayshaded areas, including the gray areas where gate holdroom seating is shown, in EXHIBIT A represent the extent of the concession opportunity area and represents approximately 11,643.9 square feet. If, as a part of the design refinement phase, some of the highlighted gray space is needed for airline tenant use, the space identified will be removed from this opportunity and leased directly to the airline serving the gate holdroom area. The above square footage is an estimate based on building design drawings. 2
TIMETABLE DEN wishes to have a qualified Concessionaire selected within a time frame that supports the continued design of the Concourse C expansion. DEN anticipates needing design information from the selected Concessionaire by October 2013 in order to remain on schedule with the Concourse C expansion program. The schedule below indicates this procurement s timeline. Event Date RFQ Issued Monday, April 22, 2013 Non-Mandatory Pre-Qualification Meeting Last Date to Submit Questions Statements of Qualifications Due Date Interviews (if needed) Manager s Recommendation Negotiation of Concession Agreement Execution of Concession Agreement by City Monday, May 6, 2013, 9 AM Monday, May 20, 2013, 2:00 PM Thursday June 6, 2013, 2:00 PM 3 weeks after Due Date (approximate) Interviews +1 week (approximate) Interviews +2 weeks (approximate) Rec d by City +6 to 8 weeks (approximate) MINIMUM QUALIFICATIONS Concessionaire must have a minimum of three years within the past five years in the ownership or management of in airport food, beverage, and retail concessions RESPONSE REQUIREMENTS Each Concessionaire will provide: Cover Letter The letter should acknowledge the Concessionaire understands the RFQ process and requirements in this RFQ. Executive Summary This should provide an overview of experience, project approach and methodology. This information should include a narrative on how the Concessionaire would address the proposed ACDBE project goal. Statement of Qualifications and Project Approach Detailed information should be included to address the following: 1) Team Composition and Experience: a. Minimum Qualifications. Describe how the Concessionaire meets all of the Minimum Qualifications established for this concession opportunity. b. Experience. Describe the experience and qualifications of the Concessionaire in successfully managing airport concession service operations within the past 3
five years. Provide annual aggregate gross revenues (sales) for each of the past qualifying years. c. Experience with the proposed concept in Section 2 below. Describe the Concessionaire s experience in operating the proposed concept. d. Locations. Submit a list of locations in the form of a table where the Concessionaire has operated airport concession operations. Include the (1) name, (2) location, (3) square feet, and (4) annual gross revenues (sales) for each location for the last two years. e. Management Team. Describe the experience and capabilities of the management team that will be responsible for this concession. f. Operations Team. If different than the management team described above, list the entity operating the concession location on a day-to-day basis and describe their experience and capabilities in operating a like concept. g. Technology Team- Describe the experience and capabilities of the technology team, with particular emphasis on delivery of in-airport food, beverages, and retail items, including hardware and software platforms. h. References. For reference purposes, provide names, titles, and addresses and phone numbers of up to three (3) landlords. If no landlord references are available, submit other references. 2) Proposed Concept: a. Present the rationale and description of the proposed concept to include a complete listing of the services, products and activities proposed in the space. Include a description of how the customers will interact with the Concessionaire and how that interaction will be seamless, complimentary and even enhance the customer s primary reason for being there: air travel; b. Draft permitted use clause to cover all proposed services and activities; c. Include sufficient detail to communicate to the evaluation team the Concessionaire s knowledge of the complex operating environment and what skills and/or tools will be used to enhance the customer travel experience; d. Include information regarding the Concessionaire s space needs to support the proposed services and activities; e. Present any creative approaches and/or value engineering opportunities that might enhance and simplify the design and construction work effort, along with examples of similar approaches on other projects and their potential cost savings. 3) Proposed Schedule: a. Include proposed project implementation plan and schedule indicating proposed design and construction timeline; b. Include the names and contact information of the Concessionaire s design and construction coordination team that will interface with DEN s Airport Infrastructure Management group and the expansion project s general contractor(s). 4) Proposed Financial Proforma: a. Describe proposed financial proforma to include: Minimum annual guaranteed compensation to DEN, percentage rent compensation to DEN and minimum investment requirements 4
B. ACDBE REQUIREMENTS Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation is highly encouraged in all concession opportunities. In order to qualify as an ACDBE, a proposer, joint venture partner, goods/services provider and/or any other firm upon whose certification as an ACDBE is being relied must be currently certified by the City and County of Denver, Division of Small Business Opportunity (DSBO) as an ACDBE under 49 CFR Part 23. Currently certified for purposes of this RFQ shall mean certified by the State of Colorado or City and County of Denver, Division of Small Business Opportunity as an ACDBE under 49 CFR Part 23. For this Gate Holdroom Concession Services opportunity, an ACDBE participation goal of 30% has been established by the DSBO Director. ACDBE participation may be in the form of a joint venture, partnership or other legal arrangement that meets the eligibility standards in 49 CFR Part 23. The ACDBE goal for this concession opportunity also may be met through the providing of goods and services from certified vendors. A list of ACDBE-certified vendors may be obtained from the Airport s Division of Small Business Opportunity. C. Minority Business Enterprise and Women Business Enterprise Participation Relating to Design and Construction The City has adopted an ordinance (the M/WBE and SBE Ordinance ) which establishes goals for the use of Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs), and Small Business Enterprises (SBEs) in design and construction of facilities by tenants and concessionaires. The SBE design and construction goal established for this concession is shown on the table below. Any Design and Construction Project over $150,000 is determined by Goals Committee and can be either SBE or M/WBE. Established Goals for Design and Construction $0 < $30,000 = 0% SBE $30,000 - $90,000 = 3% SBE $90,000 < $150,000 = 5% SBE $150,000 + above = TBD by Goals Committee Professional design and construction services contracts made and entered into by the City and County of Denver are subject to Article III, Divisions 1 and 3 of Chapter 28 of the Denver Revised Municipal Code (D.R.M.C.), and all Minority Business Enterprise and Women Business Enterprise Utilization and Equal Employment Opportunity Rules and Regulations adopted by the Director of the Division of Small Business Opportunity (DSBO). Article III, Divisions 1 and 3 of Chapter 28 of the D.R.M.C. directs the Director of DSBO to establish a project goal for expenditures on professional design and construction services work contracted by the City and County of Denver. C. Insurance Specific insurance requirements will be set as a part of the contract execution process. 5
D. Request for Further Information Based on the information provided in the responses to this RFQ, DIA may determine a short-list of firms from whom additional information may be requested. II. PREPARATION OF STATEMENT OF QUALIFICATIONS (SOQ) A. General The Proposer shall prepare its SOQ in the format described below and shall ensure that each page of its SOQ is identified with the project name, Proposer s name, and page number. B. Format SOQs shall be prepared in Arial 10 point font SOQs shall be prepared so they are printable on 8 1/2 x 11 paper The SOQ narrative shall not exceed 10 (ten) pages. SOQs which contain unnecessarily elaborate art work or expensive paper and/or bindings are discouraged. A. Pre-Qualification Conference: III. SUBMITTAL LOCATION/DEADLINE A Non-Mandatory Pre-Qualification Conference will be held at 9:00 AM, MONDAY, MAY 6, 2013, in the Jeppesen Terminal Building (Main Terminal), Denver International Airport, 8400 Pena Blvd., Denver, Colorado 80249-6235, Level 6, northwest corner of the inner core, in the room marked City Conference Room. At this conference, City representatives will answer questions regarding this RFQ, including any written questions submitted to the City prior to the conference B. Questions and RFQ Change The City will not respond to telephone inquiries regarding this RFQ. All questions must be submitted in writing by 2:00 PM, LOCAL TIME, MONDAY, MAY 20, 2013 and sent via email to concessions@flydenver.com, in WORD format., (with this specific opportunity identified in the subject line). Questions and answers will be posted on the DIA Concessions Opportunity website page at http://business.flydenver.com/bizops/proprfp.asp under the RFQ opportunity in the INCIDENTAL DOCUMENTS column. Any changes to this RFQ shall be made in the form of an addendum and shall be posted on the DIA Concessions Opportunity page under the RFQ opportunity in the CHANGES TO PROJECT DOCUMENTS column. C. SOQ Submittal Location SOQs shall be submitted in the form of 3 HARD COPIES and 3 FLASH DRIVES which shall be prepared in accordance with the Instructions herein. SOQs must be addressed and forwarded to the following location: Attn: Susan H. Moore, Business Management Services (Revenue 6
Procurement), Airport Office Building (AOB), Room 8810, Denver International Airport, 8500 Pena Boulevard, Denver, Colorado 80249-6340. D. Statement of Qualifications Due All SOQs must be sealed and identified as to content and be received by the above-named Denver International Airport Office not later than 2:00 PM, LOCAL TIME, THURSDAY, JUNE 6, 2013. * * * End of Request for Qualifications * * * 7