bevfood and beverage concession opportunit › ... › food-beverage...2018-rfp.pdf · concessions,...

GANDER INTERNATIONAL AIRPORT AUTHORITY - REQUEST FOR PROPOSALS FOOD AND BEVERAGE AND RETAIL/DUTY FREE CONCESSIONS

of 38

REQUEST FOR PROPOSALS

FOR FOOD AND BEVFOOD AND BEVERAGE CONCESSION OPPORTUNIT

FOOD AND BEVERAGE CONCESSION OPPORTUNITY

ISSUE DATE: MARCH 5, 2018

ISSUE DATE: MARCH 5 2018ERAGE AND RETAIL/DUTY FREE CONCESSIONS AT

DATE OF ISSUE: April 2, 2013 DUE DATE: August 2, 2013 by 12:00 PM NST


of 38

TABLE OF CONTENTS

1.0 INVITATION ........ ..................................................................................................................................... 3

2.0 PROPOSAL INFORMATION ..................................................................................................................... 13 3.0 CONCESSION AGREEMENT INFORMATION ............................................................................................. 20

SCHEDULES AND APPENDICES:

SCHEDULE ONE RECEIPT CONFIRMATION FORM ....................................................................................... 22

SCHEDULE TWO SUBMISSION CHECKLIST.................................................................................................... 23

SCHEDULE THREE COMPANY PROFILE ........................................................................................................... 24

SCHEDULE FOUR EXPERIENCE AND REFERENCES ......................................................................................... 26

SCHEDULE FIVE FINANCIAL INFORMATION ................................................................................................ 27

SCHEDULE SIX MANAGEMENT AND OPERATIONS PLAN .......................................................................... 29

SCHEDULE SEVEN CUSTOMER SERVICE PLAN ................................................................................................ 30

SCHEDULE EIGHT FINANCIAL OFFER(s) .......................................................................................................... 31

SCHEDULE NINE PROPONENT’S DECLARATION ........................................................................................... 33

APPENDIX A CONCESSION ACTIVITY STATISTICS ................................................................................... 35

APPENDIX B PASSENGER ACTIVITY AND MARKET INFORMATION ........................................................ 36


of 38

1.0 INVITATION

Gander International Airport is inviting proposals for its food and beverage concession. The

concession is currently operated by a single concessionaire and encompasses:

Pre-security fully licensed restaurant, bar/lounge and formal dining area

Pre-security gift shop

Post-security food/beverage

Post-security duty free

The restaurant, bar and dining area are fully supported by a single kitchen preparatory space.

This kitchen also serves as a make-up area for inflight catering but has the capacity to service a

myriad of other opportunities such as:

1. Receptions

2. On and off-site catering

3. Bakery, etc.

Proponents are free to bid as a single concessionaire operating all existing streams, blend

different steams or operate each stream as a separate and distinct business.

Proponents are free to enter into partnerships with other entities either on or off site to support

their business case.

While the Duty Free offering is non-existent in the current environment we are open to

suggestions from proponents as to ways to revitalize the operation. Discussions at the Federal

level on sanctioning “Arrivals Duty Free” can open up significant opportunity in this area.

Proponents are reminded that all revenue generated via use of the facilities are subject to

negotiated concession fees.

1.1 GANDER AND GANDER INTERNATIONAL AIRPORT

Mission and Guiding Principles Our mission is to provide a safe, secure and viable international airport that supports the quality of life, sustainability and economic development of our region. Our Guiding Principles include safety and security as our number one priority, being a leader in environmental management, delivering exceptional levels of customer service, value for money, placing ease and function top of mind, being considered an employer of choice, working


of 38

constructively with our stakeholders and community, managing our finances and infrastructure prudently, promoting our region, and always striving to improve. The airport’s goal is to ensure great beginnings and end to every passenger’s trip. Quality concessions, reflective of a sense of place and providing great value to the consumer, are an essential part of any airport experience. Surveying shows that the quality of food, beverage and retail is the second highest driver for passenger satisfaction, after wireless internet capacity.

The GIAA is seeking vendor partners who share our passion and commitment to customer service, who

are prepared to go beyond expectations, who champion service excellence and are able to resolve

customer disagreements satisfactorily.

Winning vendors will demonstrate an ability to contribute to a well-balanced product offering that

offers both essentials, customer favorites and local product that creates a distinct sense of place.

The GIAA seeks profitable partners who provide value for money, maintain competitive pricing and will

work creatively to stimulate and optimize sales through imaginative products and promotions.

Successful vendors will recognize the unique opportunities and challenges of operating in an airport

ecosystem, and how this differs from a traditional 9-5 downtown storefront or eatery.

Background

On March 1, 2001 the Federal Government transferred the management and administration of the airport to the Gander International Airport Authority Inc. under the terms of a 60 year lease commencing March, 2001. A further 20 year term was added in 2017. While international aviation has undergone a significant shift due to technological advance, Gander Airport’s domestic travel market has almost tripled over the past decade. In 2015 WestJet and Provincial Airlines introduced new scheduled service to our airport. These developments have boosted our domestic passenger base to over 177,000 enplaning and deplaning passengers; the 2nd highest in the airport’s history.

The passenger traffic estimate for the current year (2018) is 178,000 E/D. Traffic Seasonality Historically, the airport experiences its highest passenger traffic level in the summer (August) and its lowest traffic level in the winter (February). Airline Operations Air Canada is the largest carrier providing virtually 46% of the seat capacity, PAL Airlines with 32%, WestJet is third at 17% and Sunwing Airlines rounds it off at 4%. Charters and other scheduled small carriers make up the rest.


of 38

Scheduled Routes from Gander Domestic: Halifax (3x daily), St. John’s (4x daily), Goose Bay (2x daily), Toronto (daily, seasonal June-November). International: Varadero, Cuba and Punta Cana, Dominican Republic weekly from early March to the end of April. International transiting traffic This segment of our traffic cannot be forecast as it is unscheduled in nature, however, it comprises an important component of the customer base at Gander. Transiting international traffic creates demand for into-plane catering, duty free sales and crew meals. The customer base varies from military aircraft to corporate jets who carry the world’s movers and shakers. Historic key statistics are included in Appendix B. Disclaimer of Liability: The Authority does not warrant or guarantee the statistics provided and assumes no responsibility or liability whether direct or indirect, as to the accuracy or quality of the statistics, nor for any consequence of their use. 1.2 CONCESSION PROGRAM GOALS

The Authority’s overall vision is to offer an outstanding customer experience and expects its

service providers to be part of a team that delivers that vision. The Authority’s concession goals

are to:

Improve the existing customer experience post-security for food and beverage. We require

a concession program with exceptional quality while maintaining ease and function for our

customers through the strategic placement of interesting concession concepts, blending a

merchandise mix which reflects the vibrancy of our region, and satisfies the changing wants

of our customers.

Provide quality customer service by encouraging concessionaires to attract and retain well-

trained, friendly and efficient staff that effectively monitors activities and stimulates sales.

Provide a range of concessions to meet the wide demographics of Gander International

Airport, from basic comfort foods to more select offerings for high net worth individuals.

While an airport provides vendors and opportunity for vendors to command a premium on pricing due to its isolated location, vendors are expected to provide value in all


of 38

transactions with pricing at no more than a 20% variance from local market prices. This is audited by the landlord quarterly.


of 38

SUMMARY OF CURRENT CONCESSIONS

FOOD AND BEVERAGE

Name Description Location Area (m2)

Common-Use Seating (m2)

2017 Annual Gross Sales

Photo

Westons At the Airport

Food and beverage/in-flight catering/pub style lounge

Domestic lounge; pre-security

1,750 400 $ 892,606

Westons Duty free International lounge; post security

120 $ nil

Westons VLT’s Domestic lounge: pre-security

In food and beverage

In food and beverage

$ 64,598

Westons Gift shop Domestic and international lounge

260 $ 120,716

1.3 CONCESSION OPPORTUNITIES

The current concession is operated as a master concessionaire with all the above operated by a single vendor. This RFP provides the opportunity for either a stand-alone, consolidated or some combination concession proposal. As an example, a vendor may be interested in the gift shop/duty free, but not the restaurant/pub. The GIAA is open to any and all combinations The Food and Beverage concession caters to the travelling public (pre and post security), employees, in-flight international customers (military, corporate, transiting passenger and cargo aircraft), special events, etc. It currently consists of a bar/lounge, restaurant and formal dining room. The post security offering has the greatest concentration of passengers during travel times. Events are occasionally held in the International Lounge and Mezzanine area that require catering. Configuration changes are possible to provide a greater array of options post security. Pricing for the travelling public cannot exceed 20% of average street pricing.


of 38

Duty free sales are wholly dependent on transiting aircraft deplaning their passengers in the international lounge. The concession opportunity in this area can be bundled with another in order to facilitate its revitalization. The VLT’s are currently located at the back of the licensed restaurant. The Gift Shop, located between the Restaurant and Duty Free shop also has opportunities for bundling.

1.4 TYPE AND DURATION OF AGREEMENT The Authority will enter into a Concession Agreement with the successful Proponent(s) for the following term:

Ten (10) year term with a landlord option for a one five (5) year renewal. The Concession Agreement will allow operational take-over of existing facilities twenty-five (25) days from the date that the Concession Agreement is executed.

1.5 FINANCIAL TERMS

The financial terms include a minimum annual guarantee (MAG) or percentage of gross revenue, whichever is greater. The concessionaire is responsible to pay its share of electrical consumption for the space necessary to conduct its operations. Recognizing the poor configuration of the infrastructure footprint, this charge will be negotiated separately based on sales volume.


of 38

Minimum Annual Guarantee (MAG)/Percentage Rent The existing fee structure is outlined below for each component; however the GIAA will entertain proposed changes to same. MAG or percentage rent, whichever is greater, will be applicable.

# Operation Location Area m2 Existing MAG/% Rent

1. Food and Beverage/ Pub style lounge

Pre-security 1,750 10%

2. Food and Beverage Post-security 19 10%

3. Duty Free Post-security 120 15%

4. Gift Shop Pre/post-security 260 10%

5. VLT’s Pre-security 150 25%

Percentage of Gross Revenue The percentage of gross revenue is due and payable when revenues exceed the minimum annual guarantee on a consolidated basis (whichever is greater). Revenue will be further defined in the Concession Agreement, however it will substantially be as reported upon by a Chartered Professional Accountant in the annual financial statements of the proponent, without an offset provision.

Security Deposit or Performance Bond The successful Proponent(s) must be prepared to provide a Security Deposit or Performance Bond once the Concession Agreement is executed. The Security Deposit or Performance Bond will continue throughout the term of the Concession Agreement for the Location. The Security Deposit may be a bank guarantee, letter of credit or certified cheque in the amount of ten per cent (10%) of the proposed first year annual MAG/rent as proposed by Awarded Proponent. The Security Deposit is due and payable prior to initiation of operations. A Performance Bond for the entire MAG may be used rather than the Security Deposit and must be received by the Authority prior to the commencement of operations and must be renewed annually for the life of the Concession Agreement. Refurbishment of Locations Refurbishment of all locations will be subject to existing traffic levels. The minimum annual reinvestment will be negotiated separately depending on the concession proposal and location. A baseline will be established prior to commencement so each party has a clear understanding. Additional Financial Responsibilities In addition to the financial offer and the capital investment and recovery, the successful Proponent will also be responsible for municipal taxation, area utilities, exclusive use area


of 38

cleaning and maintenance costs, and any applicable permit and municipal business license requirements.

1.6 MINIMUM QUALIFICATIONS

The Authority has established the following minimum qualifications that a Proponent must meet in order to be considered qualified:

Capability The Proponent, including any partners, if any, must provide evidence that it has the necessary

capability to fulfill the scope of the Authority’s requirements in this RFP.

This capability is typically demonstrated through well-considered proposals and/or the sum of previous experience. Management and Operations The Proponent must submit a management and operations plan along with a planned organizational chart, list of proposed key management employees and their experience, and a summary of their operation plans pertinent to this Airport.

Financial Capability

The Proponent, including any partners, if any, must provide evidence and a plan of its ability to finance and undertake the monetary commitments that will be required to successfully lease, develop, construct, and operate the proposed concessions (Schedule Five). Conflict of Interest

No employee of the Province of Newfoundland and Labrador or the Federal Government of Canada may have any direct or indirect interest in the Proponent, including, but not limited to, any partners of the Proponent.

All proponents must provide evidence satisfactory to GIAA that it is in compliance with all of the

following:

1. Any existing applicable leasing arrangements, including that of any affiliated, subsidiary or related operations;

2. All financial obligations related to any existing business undertaking, including that of any affiliated, subsidiary or related operations;

3. All regulatory and operational requirements of any existing operational activity 4. Statutory deductions (HST, Corporate taxes, payroll deductions, WHSCC, HAPSET,

etc).


of 38

1.7 EVALUATION CRITERIA

Proposals will be evaluated on the following criteria:

Evaluation Criteria

Points

Experience Proponents’ experience (3 years minimum) out of the past (5) years in providing food and beverage and/or retail services in high traffic locations (depending on proposal package submittal). International brands must indicate experience as a franchised known brand for the international branded opportunity. Regional Operators must indicate their experience in the region in which they have operated. Demonstrated experience in an equivalent operational setting will be considered in lieu of the above.

10

Management and Operations Plan Proponent must submit a management and operation plan along with a planned organizational chart, list of proposed employees and their experience,

and a summary of their operation plans pertinent to this Airport.

10

Financial Ability The Proponent must provide proof of ability to fund the build-out and ongoing operations as required; for example, a letter from the banking institution or funding organization or financial statements indicating availability of funds, and also provide three years of financial statements of its company.

15

Merchandising Considerations The Proponent must submit a merchandising, conceptual and design plan of the proposed location. Photographs or renderings of concession designs may be used to provide information on the proposed design of the location along with sample menu selections, potential cultural integration. We are looking for concepts that stand out and create a memorable experience for the customer.

25

Customer Service Include performance measurement criteria and related programs

for each of the following areas: Customer Service and Quality Control. 10

Ability to meet the Authority’s Concession Goals

10

Financial Offer Proponent must provide three years projected revenue and operating expenses by location. The Proponent must also provide a capital investment plan, complete with planned expenditures, financing methodology, partnership opportunities, etc.

20


of 38

The Proposal with the highest financial offer or scores will not necessarily be accepted. The Authority reserves the right to accept the Proposal that it deems most advantageous for the Authority, and the right to reject any or all Proposals for any reason. The Authority will not be responsible for the costs of preparation and submission of Proposals.


of 38

2.0 PROPOSAL INFORMATION 2.1 DEADLINE FOR SUBMISSIONS TO RFP

The submission deadline is September 7, 2018 no later than 12:00 pm NST. 2.2 PRE-PROPOSAL MEETING

A pre-proposal meeting will be held at the Airport on May 10, 2018 at 1:00 pm in Boardroom #2029 – 2nd Floor Air Terminal Building which will include a tour of the facilities. The purpose of the Pre-Proposal meeting is to provide an opportunity for airport staff to provide information on the existing concessions, outline their expectations for the new concessions, review the expected terms of the RFP, the form of the Concession Agreement, the tenant guidelines, airport operating characteristics, as well as provide any other information the Proponent may need to submit a complete Proposal and respond to questions on site and in writing.

2.3 ISSUING OFFICE / AUTHORITY REPRESENTATIVE

Gander International Airport Authority 1000 James Boulevard Gander, NL A1V 1W8 Attention: Darren Dalton, VP/CFO Phone: (709) 256-6664 E-mail: [email protected]

2.4 INQUIRIES

All inquiries and other communications relating to this RFP and any subsequent agreements are to be directed in writing only to the above named person, who is the Authority’s Representative.

Depending upon the nature of the inquiry, the Authority may respond to the inquirer in writing or if appropriate, issue a written addendum to the RFP to all Proponents.

The Authority shall have no responsibility for and the Proponent agrees not to rely upon communications, representations or statements from any other person regarding this RFP, its subject matter or any subsequent Concession Agreement.

mailto:[email protected]


of 38

2.5 PROPOSAL SUBMISSION DETAILS

The Proponent shall, before submitting its Proposal, thoroughly examine and assess the Proposal documents and the site, if desired. The Proponent must also be knowledgeable of all relevant laws, rules, notices, directives, standards, orders and regulations, licensing and permit requirements, labour market, and other circumstances, which may affect the Proposal. Submission of a Proposal constitutes a representation by the Proponent that it is familiar with and accepts all of the foregoing.

The Proponent must submit one (1) original and four (4) identical copies of its completed Proposal including applicable appendices prior to the closing date, by hard copy to the offices or by courier to: Darren Dalton, VP/CFO Gander International Airport Authority 1000 James Boulevard Gander, NL A1V 1W8

The Proponent’s Proposal must be signed by an authorized signatory of the Proponent. The proposal must note on the outside envelope its purpose. Proposals must be typewritten or computer generated. No hand-written proposals will be accepted. Proposals sent by facsimile or email will not be accepted; late or mis-delivered Proposals will not be accepted. The Authority reserves the right to make additional copies of all or part of the Proponent’s Proposal for internal use or for any other purpose required by law. Proposals will NOT be publicly opened. The Proponent will be advised of the results after evaluations of all Proposals received. The Authority reserves the right in its sole discretion to extend the closing date prior to the closing date and time, and will endeavour to notify the Proponent as soon as practically possible in the event of any extension of the closing date. Proposals received after the proposal deadline date will not be accepted.


of 38

2.6 KEY TARGET DATES

Following are the Key Target Dates and Events with respect to this RFP process. Such dates are not guaranteed and may change based upon circumstances. A. Request for Proposals issued: ............................................................................... March 5,2018 B. Pre-Proposal Information Meeting: ..................................................................... May 10, 2018 C. Deadline for Questions: ......................................................................................... June 15, 2018 D. Question Response Deadline: ............................................................................... June 29, 2018 E. Closing Date for Submission of Proposals: .............................................................. Sept 7, 2018

F. Award to Successful Proponent(s) (if any): .............................................................. Oct 1, 2018 G. Concession Agreements must be executed by ....................................................... Oct 12, 2018

H. Food and Beverage Operation Assumption .................................................... October 22, 2018 I. Retail/Duty Free Operation Assumption ......................................................... October 22, 2018 This schedule may be subject to change without liability to the Authority. Any fit-up work to be done by the Authority or the successful proponent(s) may modify this schedule. Changes to the Terminal Building layout as a result of the Authority’s ongoing review of such will be the subject of separate discussions concerning fit-up, relocation, cost and revenue sharing, etc.

2.7 PROPOSAL REQUIREMENTS Specific detailed requirements are contained in each of the following schedules. The Proponent must include within its Proposal, but is not limited to, the following:

Schedule One – Receipt Confirmation Form In order to receive any addenda, the Proponent is asked to complete the form and email or courier it to the Authority at its earliest convenience.

Schedule Two – Submission Checklist This form is provided to assist Proponent to make sure all Schedules have been submitted.

Schedule Three - Company Profile The Proponent must list its company information including officer, board of directors members, affiliations, and/or partnerships contact information, address, telephone or cell phone numbers and email information.

Schedule Four – Experience and References

The Proponent must demonstrate its experience in operating in an airport or high traffic facility based upon commonly known industry standards for a minimum of three years.

Proponents must indicate their experience with franchised brands in the region in which they have operated.


of 38

Schedule Five - Financial Information The Proponent must provide proof of ability to fund the build-out and ongoing operations as required; for example, a letter from the banking institution or funding organization or financial statements indicating availability of funds, and also provide three years of financial statements of its company.

Schedule Six – Management and Operations Plans Proponent must submit a management and operation plan along with a planned organizational chart, list of proposed employees and their experience, a summary of their operation plans pertinent to this Airport, and staffing to include the number of management and non-management employees and the shifts to cover the operating hours of each location.

Schedule Seven - Customer Service Plan Proponent must include performance measurement criteria and related programs for customer service and quality control.

Schedule Eight – Financial Offer The Proponent must detail its financial offering on each Package for each Location and provide a financial plan including expected gross revenue, all costs of operation and capital by year and location.

Schedule Nine – Proponents Declaration Proponents, at their cost, may be required to make an oral presentation to the Evaluation Committee.

2.8 PROPOSAL COSTS

All costs and expenses with respect to the submission of a Proposal pursuant to this RFP shall be the sole responsibility of the Proponent and the Authority assumes no liability whatsoever for any Proponent costs and expenses.

2.9 OWNERSHIP

All Proposals and supporting material will become the property of the Authority.

2.10 WITHDRAWAL OF PROPOSALS Proposals may be withdrawn by a Proponent up until the deadline date for submittals in the case of any submittal received prior to that date.

2.11 ADDENDUM


of 38

The Authority may, at any time prior to the closing date and time, issue additional information, clarifications or modifications to the RFP by written addenda issued by the Authority’s Representative or his/her designate only.

The Authority will notify the Proponent who has completed and submitted the Receipt Confirmation Form (Schedule One) but it is the Proponent’s sole responsibility to ensure they have received all addenda prior to submitting their Proposal.

2.12 OMISSIONS AND DISCREPANCIES

If the Proponent is in doubt as to the meaning or interpretation of anything in the RFP, find any discrepancies in, or, find omissions from the RFP, the Proponent should immediately contact the Authority’s Representative. The Proponent shall be solely responsible for any errors, omissions, discrepancies or mis-understandings resulting from the Proponent’s failure to examine thoroughly the RFP and from the Proponent’s failure to enquire further with the Authority. The Proponent must satisfy itself in all respects as to the risks and obligations to be undertaken under any Concession Agreement entered into, as a result of this RFP.

2.13 INTERPRETATION No oral interpretation of any RFP by anyone, whether or not employed by the Authority, shall be effective to alter or modify any of the provisions in the RFP.

Every request for interpretation of the meaning of any of the requirements of the RFP shall be made in writing to the Authority’s Representative only.

2.14 PARTNERING / STRATEGIC ALLIANCES

The Proponent may partner with other third parties in order to fulfill all of the requirements set out in this RFP, provided that all partners, joint venturers and the like, sign the signatory page of the Proposal and any other documents as may, from time to time, be required by the Authority.

2.15 NO COLLUSION Except as specified within its Proposal, the Proponent declares that no other person, either natural or corporate, has or will have any interest or share, directly or indirectly, in this Proposal or in the proposed Concession Agreement, which may be awarded. There is no collusion or arrangement, formal or informal, between the Proponent and any other actual or prospective Proponent in connection with its Proposal submitted for this RFP; the Proponent has no knowledge of the contents of any other Proposal; and the Proponent has made no comparison of figures, agreement or arrangement, express or implied, with any other party in connection with the making of its Proposal, except as are declared within the Proposal.

2.16 DISCLOSURE OF INTEREST


of 38

The Proponent is required to fully disclose in its Proposal:

a) any relationship the Proponent may have with any employee, officer or director of the Authority; and

b) the nature of that relationship.

Failure to disclose, or false or insufficient disclosure of the nature and extent of any relationship the Proponent may have with any employee, officer or director of the Authority shall be grounds for immediate termination of any Concession Agreement with the Authority in the Authority’s sole discretion without further liability or notice.

2.17 SELECTION PROCESS Following the closing date and time, it is the intention of the Authority to evaluate all Proposals received according to the evaluation criteria described in the RFP documents. The Authority further expressly reserves the right in its sole discretion to:

a) clarify or request any additional information to properly evaluate any Proposal received

without becoming obligated to offer the same opportunity to any or all other Proponents; b) negotiate with one or more Proponent concurrently prior to award without becoming

obligated to offer the same opportunity to any or all other Proponents; c) waive any minor or technical non-compliance by a Proponent with the requirements of this

RFP without becoming obligated to waive any other non-compliance by any other Proponent; and

d) accept any Proposal(s) which in the Authority’s opinion offers best overall value or are the most advantageous Proposal(s) for the Authority.

The Authority shall not be bound by this RFP to accept any or all Proposals and may cancel this RFP in whole or in part at any time without any award or liability whatsoever.

2.18 RESERVED RIGHTS OF THE AUTHORITY

The Authority reserves the right to request clarifications and/or additional information as is necessary to properly evaluate the proposal; negotiate with any Proponent or with another Proponent or Proponents concurrently. The Authority is not required to offer any modified terms to other Proponents. The Authority shall incur no liability to any Respondents as a result of such negotiations or modifications. The Authority reserves the right to cancel this RFP, to reject any or all proposals; to re-advertise for proposals if necessary, to waive minor irregularities and formalities; and to accept the proposal which offers, in the Authority’s sole judgment, the best overall value for the Authority. All expenses incurred by the Proponent will be solely at its own cost. This RFP does not constitute an offer. No Concession Agreement shall result upon submission of Proposals. The Authority is not under obligation to enter into any Concession Agreements with


of 38

anyone in connection with this RFP or responses received, nor to pay for any costs incurred in the preparation of proposals submitted in response to this RFP.

The Authority will consider the past performance of the Proponent on other agreements in terms of quality of work and compliance with the terms and conditions of those agreements. The Authority may also utilize other available resources to determine the Proponent’s record of past performance.

2.19 WAIVER OF NON-COMPLIANCE Proposals which contain qualifying conditions or otherwise fail to conform to the instructions herein may be disqualified or rejected. The Authority may, however, in its sole discretion, retain, for its consideration, evaluation and potential award, Proposals which are non-conforming because they do not contain the content or form required by the instructions in this RFP, or because the Proposal does not comply with the process for submission set out in the instructions in this RFP.

2.20 CONFIDENTIALITY

Notwithstanding anything contained herein, the Proponent agrees that any information, whether delivered to the Proponent by the Authority, or whether retrieved by the Proponent by any other means, shall not be exploited and no direct or indirect disclosure made to any other party of said information without the prior, express written agreement of the Authority.

2.21 APPLICABLE LAW

The laws and the Courts of Newfoundland and Labrador shall apply and have exclusive jurisdiction over this RFP and any subsequent Concession Agreement which may be awarded.

2.22 COMPLIANCE WITH LAWS The Proponent with whom the Authority chooses to enter into a Concession Agreement, if any, shall comply with all federal, provincial and local laws, regulations, requirements and orders applicable to the performance of any Concession Agreement which may result from this RFP process.

2.23 NO LIABILITY

By submitting a Proposal, the Proponent agrees that in no event will the Proponent claim damages for any amount whatsoever for any cost incurred by the Proponent in preparing its Proposal or for matters relating to any agreement or matters concerning the competitive process, and, the Proponent, by submitting a Proposal, waives any claim for loss of profits if no Concession Agreement is made with the Proponent.

Any information contained in this RFP and attachments is provided to assist the Proponent in the preparation and submission of its Proposal. The Authority assumes no responsibility for the use of this information for any other purpose.

2.24 CONSENT TO INVESTIGATION


of 38

In order to allow the Authority to properly determine the qualifications and capabilities of a Proponent, the Authority reserves the right in its sole discretion to conduct such investigations of a Proponent’s business experience, financial capability and business practices as it deems necessary and the Proponent agrees to permit and co-operate with such investigations.

3.0 CONCESSION AGREEMENT INFORMATION 3.1 CONSENT TO INVESTIGATION

In order to allow the Authority to properly determine the qualifications and capabilities of a Proponent, the Authority reserves the right in its sole discretion to conduct such investigations of a Proponent’s business experience, financial capability and business practices as it deems necessary and the Proponent agrees to permit and co-operate with such investigations.

A Concession Agreement must be concluded with the Authority based on the proposed (or

negotiated) Proposal no later than thirty (30) days from the official notification by the Authority

of award to the successful Proponent(s) or the rights and privileges of this opportunity may be

forfeited unless otherwise agreed to in writing by the Authority.

Each Concession Agreement will become effective and binding on the date of execution by the

Authority.

Copies of the proposed Concession Agreement will soon be issued as an Addendum.

3.2 CONCESSION AGREEMENT NEGOTIATIONS The Authority intends to negotiate and conclude a Concession Agreement with the most qualified and responsible Proponent offering the best overall value and quality and most advantageous Proposal for a term of ten (10) years with one five (5) year renewal option.

In the event a Proponent and the Authority fail to reach agreement, negotiations will be terminated by the Authority, without any compensation whatsoever payable to the Proponent. An alternate Proponent may then be invited to participate in the negotiation process.

The process may be repeated as often as necessary.

3.3 REJECT AND RE-NEGOTIATE The Authority may reject all Proposals received and re-advertise for Proposals if necessary. Such cancellation of the RFP process does not preclude the Authority from subsequently meeting with any Proponent to negotiate a Concession Agreement that best suits the needs of the Authority.

3.4 NO CONTRACTUAL OBLIGATION


of 38

The Authority shall not be obligated in any manner to any Proponent whatsoever until a written Concession Agreement has been negotiated and duly executed related to any Authority accepted Proposal.

3.5 CONCESSION AGREEMENT OFFER

Any offer for the provision of concessions at the Airport shall be made in writing only by the Authority’s President-CEO or Vice President/CFO.

3.6 REQUIRED COMPLIANCE

The successful Proponent(s) must comply with all applicable provisions of any Federal,

Provincial, or Municipal occupational health and safety codes, electrical and building codes, and

rules of any government entities that have jurisdiction.

All permits and licenses required to construct and operate a Concession at the Airport shall be

obtained by the successful Proponent(s) at its own expense, and shall be maintained as required

in the Concession Agreement throughout the term of the Concession Agreement.

3.7 EXCLUSIVITY

The Authority will enter into a Concession Agreement with any successful Proponent(s) during

the term of the Concession Agreement. Exclusivity is not guaranteed and the Authority reserves

the right to introduce other vendors should the proponent(s) fail to uphold the standards as

stipulated in the Concession Agreement.

SCHEDULE ONE


of 38

RECEIPT CONFIRMATION FORM

To receive any further distributed information about this Request for Proposal, please complete this form and email it as soon as possible to: Darren Dalton, VP/CFO: [email protected] COMPANY NAME: __________________________________________________________

STREET ADDRESS: __________________________________________________________

CITY: ___________________ PROVINCE: _________ POSTAL CODE: ______________

MAILING ADDRESS (IF DIFFERENT THAN ABOVE):

___________________________________________________________________________

___________________________________________________________________________

FAX NUMBER: ( _____ ) _______________ PHONE NUMBER: ( _____ ) _____________

CONTACT PERSON: ________________________________________________________

TITLE: _________________________________________________________

E-MAIL ADDRESS: _________________________________________________________

Please send us any further correspondence about this Request for Proposal by: Courier Collect

Courier Name and Account No.:_______________________________________

E-mail (default if no box checked)

Pick up at Airport Administration Office PREPROPOSAL MEETING RSVP: Are you planning to attend Pre-proposal meeting on May 10, 2018 at 1:00 PM?

Yes How many in your party? ________ No

mailto:[email protected]


of 38

SCHEDULE TWO

SUBMISSION CHECKLIST

Proponents are advised that Proposals which do not include all of the following documents will be considered incomplete and may be rejected.

Documents to be Submitted Due Date Included?

Schedule One - Receipt Confirmation Form ** ASAP **

Schedule Three – Company Profile September 7, 2018

Schedule Four – Experience and References September 7, 2018

Schedule Five – Financial Information September 7, 2018

Schedule Six – Management and Operations Plan September 7, 2018

Schedule Seven – Design of Proposed Locations September 7, 2018

Schedule Eight – Customer Service Plan September 7, 2018

Schedule Nine – Financial Offer(s) September 7, 2018

Schedule Ten - Proponent’s Declaration September 7, 2018


of 38

SCHEDULE THREE

COMPANY PROFILE

This document is intended to provide information on the capacity, skill, and experience of the Proponent. The Proponent may supplement information requested with additional sheets if required. Submitted to: Gander International Airport Authority

1000 James Blvd, P.O. Box 400 Gander, NL A1V 1W8

1. Company Information

Company Name (full legal name):

___________________________________________________________________________________

Name and Title of Contact Person: _______________________________________________________

Address: ____________________________________________________________________________

Phone: _________________ Fax: ___________________ E-Mail: _______________________

Website: ______________________________________________________________________

2. Legal Structure of Company:

Year Established: ____________ Joint Venture:_______ Corporation:_________ Partnership: _______

Registered: ___________________ Sole Proprietor: _______________ Other: ___________________

Names and Titles of Officers, Partners, Principal:

Name: Title:

______________________________________ ___________________________________

______________________________________ ___________________________________

______________________________________ ___________________________________

______________________________________ ___________________________________

3. Company Organization

Attach an organizational chart for the company as it currently exists.

Indicate the number of personnel (at all levels) currently employed by the company:


of 38

Are your employees represented by a union: Yes ____________ No _______________

Name of Bargaining Unit (if applicable): _________________________________________

List key management individuals in the organization. Identify both their general responsibilities and

their duties as they relate to the proposed Concession Agreement(s).

Name Position Responsibilities

If this company is a subsidiary of another, provide the name and address of the parent:

Parent: ______________________________________________________________________

Related Business Nature: _______________________________________________________

Address: ____________________________________________________________________


of 38

SCHEDULE FOUR EXPERIENCE AND REFERENCES

Experience:

Outline your company’s experience (3 years minimum) out of the past five years in providing food

and beverage and/or retail services in high traffic locations (depending on which package you are

proposing). If proposing on both packages, provide experience in each area. You may attach up to

three pages describing your experience in each category (maximum six pages if describing both).

Year One

Year Two

Year Three

References:

Name: ______________________________________________________________________________

Company: ___________________________________________________________________________

Contact Person(s): _____________________________________________________________________

Phone: ______________________________ E-Mail: __________________________________

Name: ______________________________________________________________________________

Company: ___________________________________________________________________________

Contact Person(s): _____________________________________________________________________

Phone: ______________________________ E-Mail: __________________________________

Name: ______________________________________________________________________________

Company: ___________________________________________________________________________

Contact Person(s): _____________________________________________________________________

Phone: ______________________________ E-Mail: __________________________________


of 38

Note: Attach additional pages as required as noted above.

SCHEDULE FIVE

FINANCIAL INFORMATION 1. Company Financial Information

List annual revenue and net income by year:

Annual Revenue Net Income

Year Total Canadian Total Canadian

2015

2016

2017

Attach compiled, reviewed or audited financial statements for the last (3) years, 2015- 2017, including Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Changes in Financial Position (Cash Flow).

Attach the most recent interim/management financial statements with comparable balances for the same periods (if different from those already provided).

2. Financial References:

a. Bank Name: ___________________________________________________________________

Location:______________________________________________________________________

Contact Person(s): ______________________________________________________________

Phone: __________________ Fax: ________________ E-Mail: ____________________

b. Bonding Company: ______________________________________________________________

Location:______________________________________________________________________

Contact Person(s): ______________________________________________________________

Phone: __________________ Fax: ________________ E-Mail: ____________________


of 38

c. Insurance Company: ____________________________________________________________

Location:______________________________________________________________________

Contact Person(s): ______________________________________________________________

Phone: __________________ Fax: ________________ E-Mail: ____________________


of 38

SCHEDULE SIX MANAGEMENT AND OPERATIONS PLAN

Proponents must provide a description of the management team and operational plans that the proponent plans to utilize.

The management plan shall include the following:

List key management staff.

Indicate whether or not these individuals currently have a position within your organization.

Describe your management policies and procedures and the approach you will take specific to this

airport.

Key Management Staff

Position Name Responsibilities Current Position?

Y/N


of 38

SCHEDULE SEVEN CUSTOMER SERVICE PLAN

Include performance measurement criteria and related programs for each of the following areas:

Customer Service

Provide an outline of the proposed staffing levels and hours of operation in each location. It

is imperative the service expectations align with the present flight schedule and is able to

adapt to airline and other service provider changes.

Provide a detailed outline of the customer service program for the concessions including a

description of your approach to serving customers along with any unique aspects of

Proponent’s customer service philosophy.

Provide a detailed outline of the operational and customer service related training programs

that will be delivered to all staff including training to provide service to customers with

disabilities.

Provide information about Marketing Programs, Employee Training Programs, and

Employee Policy Manuals.

Describe the program the Proponent will utilize to monitor customer satisfaction.

Describe the Proponent’s plans for obtaining customer feedback and keeping the Authority

informed about customer comments and the corrective actions taken.

Note: Official Languages Act is not currently applicable at the Gander International Airport.

Quality Control

Describe the Proponent’s quality control program(s) that will be implemented for the

concessions and how the Proponent will ensure that those controls are maintained and

deficiencies are addressed. Please include any inspection forms and performance

measuring systems.


of 38

SCHEDULE EIGHT FINANCIAL OFFER(s)

Please provide a schedule for projected revenue and operating costs for which you are proposing as part of your financial offer. The Proponent must also provide a capital investment plan, complete with planned expenditures, financing methodology, partnership opportunities, etc. FINANCIAL PROPOSAL The acceptable Minimum Annual Guarantee and percentage of gross revenue per Location is indicated on the form that follows; however, a higher offer may be proposed.

Fill in your financial offer for the Minimum Annual Guarantee (MAG), percentage of gross revenue, capital investment and upfront/key payment money (if offered) in dollar amounts in the spaces provided on the form below with the offers signed by an authorized company officer.

FINANCIAL PROPOSAL FORM TO: GANDER INTERNATIONAL AIRPORT AUTHORITY

Food and Beverage Package One

LOCATION

TERM & RENEWALS

MINIMUM ACCEPTABLE

ANNUAL GUARANTEE

PROPOSED MINIMUM ANNUAL

GUARANTEE (“MAG”)

MINIMUM ACCEPTABLE

PERCENTAGE OF GROSS REVENUE

%

PROPOSED PERCENTAGE OF GROSS REVENUE

%

Duty Free 10 years

1 x 5 propose $ propose

Gift Shop 10 years


Food and beverage

10 years 1 x 5

propose $ propose

VLT’s 10 years


Rent payable is the greater of MAG or Percentage of Gross Revenue.


of 38

KEY UPFRONT MONEY (if any)

$

COMPANY NAME: CORPORATE OFFICIAL’S NAME: _________________________ ___________________________________ Date Authorized Signatory


of 38

SCHEDULE NINE PROPONENT’S DECLARATION

The Proponent confirms it has obtained and carefully examined all documents comprising this Request for Proposal (RFP) including all addenda issued by the Gander International Airport Authority (Authority). The Proponent, having reviewed all of the RFP, hereby undertakes and agrees to offer to the Authority to supply the services as described in the RFP.

Except as specified within its Proposal, the Proponent declares that no other person, either natural or corporate, has or will have any interest or share, directly or indirectly, in this Proposal or in the proposed Concession Agreement which may be awarded. There is no collusion or arrangement, formal or informal, between the Proponent and any other actual or prospective Proponents in connection with Proposals submitted for this RFP; the Proponent has no knowledge of the contents of any other Proposal; and the Proponent has made no comparison of figures, Concession Agreement or arrangement, express or implied, with any other party in connection with the making of its Proposal, except as are declared within the Proposal. The Proponent hereby declares that it has no relationship with any employee, officer or director of the Authority. EXECUTED THIS ______ DAY OF __________________, 2018 AT ___________________IN THE PROVINCE OF NEWFOUNDLAND AND LABRADOR. LEGAL SEAL OF CORPORATION (IF REQUIRED) ____________________________________ _____________________________________ WITNESS SIGNATURE PROPONENT AUTHORIZED SIGNATURE _____________________________________ _____________________________________ WITNESS NAME NAME OF PROPONENT SIGNING OFFICER _____________________________________ _____________________________________ ADDRESS LEGAL NAME OF PROPONENT _____________________________________ _____________________________________ CITY, PROVINCE, POSTAL CODE ADDRESS OF PROPONENT _____________________________________

CITY, PROVINCE, POSTAL CODE


of 38

_____________________________________ CONTACT TELEPHONE NUMBER

_____________________________________ CONTACT FAX NUMBER _____________________________________ E-MAIL ADDRESS


of 38

APPENDIX A

CONCESSION ACTIVITY STATISTICS (in CAD)

Category Gross Sales

2016 2015 2014 2013

Food and beverage $ 947,618 $ 1,083,205 $ 902,300 $ 772,845

Gift Shop 30,930 104,615 118,929 120,802

Duty Free Nil 556 1,089 3,048

Lotto 24,658 72,929 46,281 64,121

TOTAL $1,003,206 $ 1,261,305 $ 1,068,599 $ 960,816

Disclaimer of Liability: The Authority does not warrant or guarantee the statistics provided and assumes no responsibility or liability whether direct or indirect, as to the accuracy or quality of the statistics, nor for any consequence of their use. Proponents shall seek independent advice where they deem it desirable or necessary in order to use the forecasts.


of 38

APPENDIX B

PASSENGER ACTIVITY AND MARKET INFORMATION

Historical Enplaned/Deplaned Passenger Activity

Year 2011 2012 2013 2014 2015 2016

E/D activity

Domestic 100,487 119,445 126,225 141,484 178,048 173.502

Transiting 94,312 86,459 52,529 42,781 53,977 33.394

The traffic estimate for the current year (2018) is 177,000 E/D.

Meeters and greeters at the airport are in the range of 1.9 for every passenger.

Traffic Seasonality Historically, the Airport experiences its highest traffic level in the summer (August) and its lowest traffic level in the winter (February).


of 38

Airline Operations Air Canada is the largest carrier providing virtually 46% of the seat capacity, PAL Airlines has 32%, WestJet is third at 17% and Sunwing Airlines comes in at 4%. Charters and other scheduled small carriers make up the rest.

Arrival Time

Departure Time Destination Interval Season Capacity

20:10 5:00 St. John's Daily Year Round 18

1:22 5:00 Toronto Daily 29 Jun - 30

Oct 75

1:18 5:25 Halifax Daily Year Round 50

20:50 7:40 Goose Bay Daily Year Round 18

21:35 7:40 Varadero Tuesday 14 Mar - 26

Apr 95

8:50 9:40 Punta Cana Wednesday 15 Mar - 27

Apr 95


10:25 10:45 St. John's Sun-Fri Year Round 37

10:45 11:45 Toronto Friday 16 Jun - 01

Sep 136

12:40 13:00 Goose Bay Sun-Fri Year Round 37

12:34 1:20 Toronto Tuesday 20 Jun - 05

Sep 136




PLEASE NOTE: THESE ARE SCHEDULED FLIGHTS ONLY - PROVINCIAL CHARTERS ARE NOT INCLUDED

Tenants Combined with our employees total employment at the airport is in excess of 400 employees. External services Apart for passenger, employee and greeter patrons there are a variety of other revenue sources serviced by the existing operation:

1. DRL Coachlines. There are twice daily stops at the Airport with an estimate of 20 persons available per stop;

2. An extensive list of Holiday staff parties are held in the upscale dining area; 3. Other holiday revenue sources (Valentines, St. Patrick’s Day, etc); 4. Catering to schools, Provincial Sporting and Administrative events, etc.


of 38

5. Catering to special interest groups and community functions in the international lounge, mezzanine and viewing areas.

Scheduled Routes from Gander Domestic: Halifax (thrice daily), St. John’s (four times daily), Goose Bay (twice daily), Toronto (daily for seven days during peak season). International: Varadero, Cuba and Punta Cana, Dominican Republic seasonally. Disclaimer of Liability: The Authority does not warrant or guarantee the statistics provided and assumes no responsibility or liability whether direct or indirect, as to the accuracy or quality of the statistics, nor for any consequence of their use.