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Evaluation Form for Seattle-Tacoma International Airport Airport Dining and Retail Program

Request for Proposals – Lease Group Three Package: Food Large Package 4

Name of Proposer: SSP America

Name of Evaluator: Panel Master Document

Evaluation Criteria

A. Background, Experience and Financial Capability (20 points) – When evaluating the background, experience and financial capability portion of the response, the following information should be considered:

Proposer must include all of the following information in the proposal in the order shown.

Include a brief history of the proposer’s company or companies. Note any changes in company name(s) and ownership structure(s) and any other names under which they have been doing business. Describe the company’s current operations in airports or other venues.

Provide the name, location and date of any of the proposer’s leases or contracts that have been terminated, either voluntarily or involuntarily, within the past five (5) years. Provide an explanation of the reason(s) for termination and a contact name and telephone number for the landlord.

List any judgments or lawsuits currently pending against the proposer or any lawsuit filed against or judgment offered against proposer within the last ten (10) years. Also list any lawsuits filed by proposer in the last ten (10) years.

Whether you currently operate a business covered by City of SeaTac Proposition 1 (Prop 1). (Yes or No).

o If the answer to the prior question is “Yes”, please state whether you have provided your employees with wages and benefits that met or exceeded the requirements of Prop 1 since January 1, 2014.

o If the answer to the prior question is “No”, please state whether you have addressed or otherwise reserved for such amounts extending back to January 1, 2014.

o If the answer to the prior question is “Yes”, please explain how. If you have not addressed or otherwise reserved for such amounts extending back to January, 2014, please explain why you do not expect to be liable for those amounts.

1. Experience

Describe the proposer’s experience and qualifications in managing and operating similar business ventures in airports or other high-traffic venues. For each business, be sure to include the proposer’s role, nature of the business, location, size, and the current status of every relevant business owned. Explain the company philosophy when analyzing new opportunities, including due diligence to ensure that the opportunity is a good fit for both the company and the Airport.

Provide descriptions of up to five (5) of the organization’s operations most relevant to those being proposed. For these relevant operations, list the square footage, gross sales for the last three years, enplanements for those years (if an airport), average sales per transaction, minimum annual guaranteed rent or base rent (if applicable), percentage rent (if applicable), actual rent paid, term of lease (including commencement and expiration dates), capital investment and photographs (if available). Also provide the names, addresses, telephone numbers and email addresses of the current landlords or property managers for each of these operations who will be familiar with the day-to-day operations.





2. Financial Capability

Proposers shall submit the following historical financial information for the proposing entity and any joint venture or affiliate entities:

Partnerships/Individuals: Balance sheet and income statements for the last three (3) fiscal years prepared in

accordance with generally accepted accounting principles (GAAP), reflecting the current financial condition of the partners or individuals submitting the Proposal, also including an interim balance sheet and income statement of any significant financial events occurring subsequent to the closing date of the most recent financial statements. The three (3) most recent completed IRS tax returns.

Public Corporations: Previous three (3) year’s annual reports for the proposing entity

Private Corporations: Previous three (3) year’s financial statements (balance sheet and income statement) prepared in accordance with generally accepted accounting principles (GAAP) certified by the CFO or President of the corporation.

Newly-formed Organizations: The proposer must include a certified statement of the names of the officers of the organization to be formed, the principal occupation of all members of new organization’s Board, and certified statements of the net worth of the prime participants in the organization.

If a teaming arrangement, joint venture, or other business combination is proposed, the information required above is required for each prime participant in the proposal. In addition, proposers shall provide the following information: A statement declaring whether proposer has ever declared bankruptcy, filed a petition in any bankruptcy court, filed for protection from creditors in bankruptcy court, or had involuntary proceedings filed in bankruptcy court and the status of each occurrence.

If a proposer submits financial statements for a parent company, the parent company also will be required to execute the Agreement and will be bound jointly with the proposer/subsidiary to its obligations. A parent company must submit an acknowledgement of this obligation in the proposal in the form of a resolution of the governing body of the parent company authorizing the obligations of the Agreement to be awarded.

Information Missing from the Proposal for the Background, Experience and Financial Capability Section None

Detailed Notes Regarding Strengths of the Background, Experience and Financial Capability Section Supporting Scoring The Proposer is a global company with many concepts at numerous airports

(currently operating in JFK, Phoenix, and San Diego).

The Proposer provided strong documentation of their financial information.

The Proposer provided similar concepts from other airports, demonstrating the generation of similar sales volumes to those projected for Sea-Tac.





Detailed Notes Regarding Weaknesses of the Background, Experience and Financial Capability Section Supporting Scoring None

Questions None

Evaluator’s Score = ____18____ (Maximum 20 Points) Outstanding (meets all requirements and exceeds many) 17-20 points Very Good (meets most or all requirements and exceeds some) 13-16 points Good (meets most or all requirements) 9-12 points Fair (meets some requirements) 5-8 points Poor (fails to meet most requirements) 0-4 points





B. Concept Development (25 Points) – When evaluating a food and beverage concept development for this portion of the response, the following information should be considered:

Proposer must submit the following information in sufficient detail to clearly define the proposed concepts and to distinguish them from those of other proposers.

1. Proposed dining concepts and menus that meet the minimum requirements described in Section III 2. Specific concept descriptions and how they would complement the Airport’s dining and retail program 3. Proposed names 4. Menus for each unit and concept, the price for each menu item. Please identify menu items to address dietary

restrictions, which may include gluten-free, vegetarian, and vegan. Include children’s menu items, as required. Specifically indicate which menu items will be pre-packaged for grab and go service and how those items will be packaged for the customers. Describe the type of packaging that will be used for carry-out items. Describe the use of any locally-sourced products.

5. A description of any unique attributes of the proposed concept(s) 6. The percentage of the unit area that would be allocated to kitchen and back-of-house, seating (if any, including

an estimated seat count), carry-out counter (if any), serving area, and queuing space. 7. List of any merchandise, including logoed or branded merchandise, that will be sold from any of the restaurants

and the prices for those items 8. Describe any concept-specific quality assurance procedures, guarantees, and customer service initiatives and

policies that are not described in other sections of the proposal 9. Describe the analysis conducted to determine the concepts, brands, merchandise, menus, and product lines

incorporated in the proposal; 10. Franchise authorization letters for any franchised concepts included in the proposal (not included in the

calculation of page limit); 11. License authorization letters for any licensed concepts included in the proposal (not included in the calculation

of page limit); 12. Describe the research to be used to monitor customer satisfaction with the concepts, brands, merchandise,

menus, and product lines selected;

Information Missing from the Proposal for the Concept Development Section

None

Detailed Notes Regarding Strengths of the Concept Development Section Supporting Scoring General Comments for all locations Proposer presented a good breadth of variety in the food hall and sushi bar

Proposer had strong inclusion of local concepts

Proposer indicated a strong use of technology throughout the proposed concepts

Individual location comments CA-10 Marche - Urban Food Hall:

The proposed food hall celebrates the Seattle community and focuses on wide array of local providers of exceptional food products.

Proposer placed a strong emphasis on local, regional, and women-owned food purveyors.

Proposer sourcing regional bounty and brought local food to the center stage. Regional food offerings were intended to enhance the Pacific Northwest sense of place and elevate the passenger experience. A wide





variety of food choices/units intentionally showcase the breadth of culinary options in Seattle and greater Pacific Northwest region.

The food hall layout is free-flowing, but includes clearly designated wayfinding to assist passengers in making selections and customizing their meal. Customers can buy from more than one vendor and pay at a common, central point of sale.

The seating areas are structured to either take advantage of the music program, incorporating the food hall stage and sound system, or provide views to the airfield.

Merchandise for gifts and consuming is also available to increase sales.

CT-21 Marination:

Following the interview, the Proposer provided two (2) additional concepts for consideration for this location — Panda Express and Pei Wei. Based on the concept descriptions provided, the panel believes that Pei Wei is the best option for this location as the menu is more diverse and it is a nationally-recognized brand. Scoring in this section reflects the inclusion of Pei Wei in location CT-21.

CT-26 Koi Shi Sushi Bistro:

This is a new concept designed specifically for Sea-Tac Airport. The menu includes both made-to-order items and and grab & go bento boxes. The products are naturally gluten free – most menu items focus on seafood, rice, and vegetables. There is a strong emphasis on freshness. Food deliveries are planned 6 days per week.

SS-2A Slate Coffee:

Slate is a local, independent coffee roaster that focuses on small-batch roasted coffee. This concept has a pure coffee focus – the menu is free from syrups and sugars, which will give airport customers a nice alternative. The menu also includes high-quality teas from Steven Smith (founder of Tazo Tea and Stash Tea Co.). Slate is currently located in Ballard (original location), University District, and Pioneer Square.

SS-2B Banh Shop:

The Banh Shop concept successfully addressed the RFP request for Asian-fusion quick service, combining cuisine from multiple Southeast Asian countries. The price points on the menu are good. This concept delivers on the full concept expectation: noodle dishes, sushi rolls, salads, rice bowls, and curry dishes. Additional menu items have broad appeal: breakfast options, (8) sandwiches, variety of bowls, and a good drink selection.

SS-2C Katsu Burger:

While this concept is a fresh and unique offering, the panel was concerned that it may not have broad appeal. During the interview, the Proposer provided two (2) additional concepts for consideration for this location — Smashburger and The Habit Burger Grill. The panel believes that The Habit Burger Grill is a better option for this location as the menu is more diverse and the concept includes more traditional burger offerings. Scoring in this section is reflective of The Habit Burger grill in location SS-2C.





SS-7 Good Bar:

This concept will offer all-day breakfast and pre-packaged gourmet boxes, and has an emphasis on craft cocktails and a good selection of local craft beers on tap. The drink menu is extensive and will likely appeal to customers. Both local and imported wines will be offered as well as bottled beer and an extensive liquor selection.

SS-6 – Incorporated technology with self-service kiosks in the seating area.

Value added comments: Proposer received value-added points for the proposed technology, including the use of mobile technology, table-

top tablet; self-ordering kiosks; travel amenities, such as power outlets; and partnerships with over 30 local brand partners and vendors.

Detailed Notes Regarding Weaknesses of the Concept Development Section Supporting Scoring General Comment for all locations: Menu items addressing dietary restrictions and children’s items are generally lacking throughout the concepts. Individual location comments: These weakness were addressed in Proposer’s written response to interview questions. CA-10 Urban Food Hall – expand dietary restrictions on menu offerings. Children’s menu extremely limited. CT-21 Marination – The Panel would like you to consider up to two alternative concepts that you would be prepared to build out and operate in lieu of the Marination in this unit. Please provide information on this concept(s). SS-2C Katsu Burgers – The Panel would like you to consider up to two alternative concepts that you would be prepared to build out and operate in lieu of the Katsu Burgers in this unit. Please provide information on this concept(s). SS-7Good Bar – Some of the eclectic menu offerings may not appeal to the broad customer base. Questions Menu items addressing dietary restrictions and children’s items are lacking in some of the concepts. Please clarify. CA-10 – expand on dietary restrictions on menu and children’s offerings.

Evaluation of Concept Development Section Evaluator’s Score = ___24___ (Maximum 25 Points) Concept Development = ___20__ (Maximum 20 Points) Added Value = ___4__ (Maximum 5 Points) Outstanding (meets all requirements and exceeds many) 21-25 points Very Good (meets most or all requirements and exceeds some) 16-20 points Good (meets most or all requirements) 11-15 points Fair (meets some requirements) 6-10 points Poor (fails to meet most requirements) 0-5 points





C. Unit Design, Materials and Capital Investment (25 Points) – When evaluating the unit design, materials and capital investment portion of the response, the following information should be considered:

Proposers will submit the following preliminary plans for each unit with sufficient detail to evaluate the design and quality of materials proposed. All plans and designs must comply with the Port’s Tenant Design and Construction Guidelines. When evaluating the unit design, materials and capital investment portion of the response, the points should be broken down into two categories: 15 points: Unit Design and Materials

Preliminary renderings of the proposed concepts that are representative illustrations of the exterior and interior of the concepts, proposed color schemes, and graphics. In the case where a proposer intends to virtually duplicate an existing concept that the proposer has developed elsewhere, the proposer may substitute pictures or photographs of an existing facility for the renderings.

A floor plan for each unit (not concept) should be provided, indicating locations for counters, queuing, kitchens, seating (including estimated number of seats), point-of-sale counters, and any back-of-house area, as appropriate. Please also indicate the square footage to be allocated to front versus back-of-house areas and how customers with bags will be accommodated. Please be sure to stay within the lease lines shown in the lease outline drawings provided with this RFP and do not add space that is outside of the lease lines.

A list of materials to be used per unit that demonstrates the quality of the materials to be used in each location, including:

1) Floor covering

2) Wall covering

3) Ceiling treatment

4) Service counter and display units or fixtures

5) Any proposed signage, interior and exterior

6) Information regarding environmental sustainability considerations planned for the design and build-outs of the units, such as materials procurement and the use of sustainable, renewable, recycled, and/or locally-sourced materials.

Renderings (or photographs) and floor plans may not exceed 11" by 17" and must be bound within the proposal.

10 Points: Capital Investment Proposers must submit a completed Exhibit 14 Capital Investment Form for each unit being pursued. The completed Exhibit 14 will include the following information:

Estimated costs by location for the initial capital Investment and mid-term refurbishment improvements

(separately), delineating expenses for leasehold improvements, furniture, fixtures, equipment, and design, engineering, and construction management costs

Estimated working capital support

Sources of funding





The points for the capital investment will be allocated as follows: The minimum initial capital investment and the minimum refurbishment investment should be combined and evaluated for a maximum of 10 points. The highest combined capital investment among respondents for this package (initial plus refurbishment) is awarded the maximum number of points. All other offers are given prorated scores based upon the ratio of the lower capital investments to the highest capital investment. Offerors proposing the same combined capital investment amount would receive the same number of points. To assist with your evaluation, the score for Capital Investment for the Proposer will be calculated by the Port’s concession consultant and provided to you.

Information Missing from the Proposal for the Unit Design, Materials and Capital Investment Section Floor plan and back-of-house allocation for Marination is missing.

Detailed Notes Regarding Strengths of the Unit Design, Materials and Capital Investment Section Supporting Scoring

General Comments for all locations: All units in proposer's primary response exceed requested minimum capital investment levels. Proposer is using a local designer. Individual location comments: CA-10 – Food Hall – The layout includes creative seating areas. The Proposer's layout and materials palette and renderings appear inviting and reflect each concepts identity. The designs appear compelling and visually attractive and will likely be well-received by passengers. CT-21 – Marination – Based on the rendering, the unit looks visually appealing; the queuing space is inside the unit; there are clean lines and an open kitchen. CT-26 – Koi Shi Sushi – The design is very tasteful and appealing with a good use of bright colors. SS-2B – Banh Shop – The design is visually appealing and will likely draw customers. SS-2C – Katsu Burger - The design is visually appealing and will likely draw customers. SS-7 – Good Bar - The design is visually appealing and bright and will likely draw customers. SS-6 – The Yard (SSAT food court seating area)-The proposed color palette brightens the area.

Detailed Notes Regarding Weaknesses of the Unit Design, Materials and Capital Investment Section Supporting Scoring CA-10 (Food Hall) – The proposed storefront design may inhibit the natural light and the high ceiling in some portions of the unit. It is not clear how the drink stations function/work. CT-26 – Panel questioned the practicality of cleaning the “tear drops” in the design. The high wall may compromise natural light and the view both from and through the unit. (Per interview response, Proposer was willing to lower the wall height.) SS-07 - Good Bar - The ceiling height appears low and top-heavy in the rendering. SS-06 - The Yard (SSAT food court seating area)-Collins & Denny appears to block the entrance to Dungeness and may need to be revised. The queuing and circulation space at the food court points of sale is minimal and may need to be adjusted. It does not appear that waste receptacles have been shown in the food court seating area.





CT-21 – Marination – The design and materials do not depict the Pacific northwest. No floor plan was provided, so the passenger flows and processing are unclear. Overall – There was no mention of environmental sustainability considerations.

Questions CA-10 – Please clarify how you might modify the unit design to maintain the integrity of the design without compromising access to natural light and maintaining the views of the high ceiling. CT-26 – Please clarify how you might modify the unit design to maintain the integrity of the design without compromising access to natural light and the view both from and through the unit. CT-21 –Passenger flow and processing is unclear. Please explain.

Evaluation of Unit Design, Materials and Capital Investment Section

Evaluator’s Total Score = __22___ (Maximum 25 Points) Unit Design and Materials (Maximum of 15 points): __12__

Outstanding (meets all requirements and exceeds many) 13-15 points Very Good (meets most or all requirements and exceeds some) 9-12 points Good (meets most or all requirements) 6-8 points Fair (meets some requirements) 3-5 points Poor (fails to meet most requirements) 0-2 points

Capital Investment (Maximum of 10 points): __10__

Capital Investment Score Calculation:

A) Highest Minimum Initial & Refurbishment Capital Investment (among all package respondents) $13,166,005 B) Minimum Initial & Refurbishment Capital Investment (this submittal) $13,166,005 C) B ÷ A = C D) Score = C X 10 Points





D. Financial Projections and Financial Offer (20 Points) – When evaluating the financial projections and financial offer component of the response, the following information should be considered:

Proposers must submit a financial pro forma for each individual location as well as for the package in its entirety for the term of the Agreement. The pro forma will be evaluated for reasonableness, viability of the proposed operation, realistic financial offer, and ability to fund continuing operations from funds generated by the business. The pro forma must include the following and be prepared using the template provided in Exhibit 9.

Anticipated gross sales by unit

Expenses by line item

General and administrative costs

Rent proposal

Debt service

Proposers must provide information in the pro forma indicating the expected rent to be paid for each year during the term of the Agreement, and demonstrate how the rent proposal can be supported by the projected revenue stream without sacrificing the quality or service of the operations. Proposers must propose percentage fees as a percent of gross receipts using the financial offer form included as Exhibit 10. Proposers are encouraged to propose percentage fees that increase with sales volume, i.e., tiered rent structures. Proposers also are encouraged to provide supporting information from an existing facility to substantiate that the proposed percentage fee can be supported while maintaining reasonable profitability, appropriate staffing levels, facility maintenance, quality of products and services, as well as job quality for employees. The Port will have no obligation to renegotiate percentage fees during the term of the agreement. When evaluating the financial projections and financial offer portion of the response, the points should be broken down into two categories: 10 Points: Financial Offer The points for the financial offer will be based on the effective rent percentage, which is a calculation equal to the rent for the first full year of operations (2018 or 2019 depending on the package) as shown in the proforma divided by the same year’s sales (also from pro forma). The highest effective rent percentage offer among the respondents for each package is awarded the maximum number of points. All other offers receive prorated scores based upon the ratio of the lower financial offers to the highest financial offer (Example: effective rent percentage of 15% and 12% are received and the maximum score is 10 points. The 15% effective rent offer would receive 10 points, while the 12% effective rent offer would receive 8 points calculated as follows:

12% divided by 15% = 0.80

0.80 x 10 points = 8 points for the 12% effective rent offer

To assist with your evaluation, the score for Financial Offer for the Proposer will be calculated by the Port’s concession consultant and provided to you.





10 Points: Reasonableness of Financial Projections

The points for reasonableness will be determined by the extent to which the sales projections, rent projections, and expenses over the lease term are reasonable given the concept(s) proposed. The information used for this evaluation will come directly from the pro formas. The reasonableness test may be based on industry standards for the type of offering, historical sales and revenue, and other factors. Consideration should be given to:

a. Likelihood that proposed sales can be achieved (consider historical sales, concepts proposed, price points, industry information, terminal market)

b. Impact on rent revenue if sales are not achieved

c. Projected profit margin and potential to absorb sales shortfalls or cost overrunsSalary and wage expenses to ensure satisfactory staffing and management

d. Number of seats in a sitdown restaurant concept and likely turnover rate

e. Overall reasonableness

To assist with your evaluation for reasonableness, a summary of pertinent data has been prepared by the Port’s concession consultant and will be provided to you.

Information Missing from the Proposal for the Financial Projections and Financial Offer Section None.

Detailed Notes Regarding Strengths of the Financial Projections and Financial Offer Section Supporting Scoring The profitability and rent shown in the pro forma appear achievable. The pro forma indicates a strong percentage of gross sales for employee benefits and a reasonable percentage for payroll.

Detailed Notes Regarding Weaknesses of the Financial Projections and Financial Offer Section Supporting Scoring There was some concern that the pro forma indicates lower profitability that may not withstand significant cost overruns or sales shortfalls.

Questions Clarification - The consolidated pro forma rent line item does not match the sum of the individual unit pro forma rent line items because of the proposed tiered rent structure, which was applied in the consolidated pro forma.

Evaluation of Financial Projections and Financial Offer Section

Evaluator’s Total Score = ____18____ (Maximum 20 Points)

- Financial Offer (Effective Rent Percentage) (Maximum of 10 points): _10__ - Reasonableness of Financial Projections (Maximum of 10 points): _8__





E. Management, Staffing, Operations and Environmental Sustainability (20 Points) – When evaluating the management, staffing, operations and environmental sustainability portion of the response, the following information should be considered:

Proposers must demonstrate the ability to effectively manage all units and operations, which also includes quality leadership and adequate levels of staffing. Proposers must also demonstrate a commitment to reliable, safe, clean and well-merchandised operations, as well as a proactive and consistent approach to preserving the units (including equipment). Detail environmental sustainability measures that you currently or will practice in the operation of the business, including (where applicable) separation of waste, recycle and compost, and use of durable or Cedar Grove approved compostable or recyclable food service-ware. Proposer must submit the following information regarding the proposed management, operations, and environmental sustainability practices. Management

1. Describe the operational relationship, level of oversight and interaction of corporate management in order to assure first-class operations and more specifically, how corporate staff supports the local operation and its staff

2. Organization chart illustrating the reporting relationships between corporate and on-site management and between all on-site staff

3. Methods used to ascertain the levels of staffing required to provide excellent customer service and product quality. Indicate whether the proposed operating hours will exceed or match the minimum hours of operation required

4. Resumes for the proposed on-site General Manager, regional manager, and any other key management or culinary staff (as appropriate), including relevant qualifications, job description, length of company tenure and level of responsibility

5. If ACDBE ownership participation is proposed, describe the roles and responsibilities of the ACDBE and how this involvement will be documented as commensurate with ownership stake, as required by the Federal Aviation Administration. Resumes for proposed ACDBE management personnel, including relevant qualifications and length of association with proposer

6. Staffing plan for an average day as well as the number of part-time and full-time employees to be hired for these operations

7. Company’s philosophies and goals regarding recruitment and retention of management and front-line staff

8. Provide a proposed transition plan for the operation. Operations

1. Describe in detail your management plan for operations, including daily operations, deliveries, brand/vendor oversight, inventory management and employee responsibilities.

2. Commitment to meeting the operational conditions of the airport’s environment in specific regard to the operating hours





3. General description of the proposed employee dress code or uniform by location. 4. Describe how the facilities will be operationally maintained, including preventive

maintenance schedules for all systems, cleaning (areas and frequency), equipment and furniture upkeep, and the means used to track and document these practices.

Environmental Sustainability

1. Provide information about the environmental practices planned for the maintenance and day-to-day operations of the unit(s), such as participation in recycling and composting programs; sustainable sourcing practices; use of durable table ware or compostable to-go service-ware approved by Cedar Grove (Airport composting service provider); procurement of sustainably raised, grown or manufactured products; use of clearly labeled receptacles for sorting and collection of pre- and post-consumer recycling, compost, and garbage in leased areas; participation in Airport recycling, composting, and food donation programs; and other resource conservation programs/practices.

2. Provide detail about potential procurement and/or sourcing of products or services from local, small and/or disadvantaged businesses. As possible, identify suppliers and their ownership.

Information Missing from the Proposal for the Management, Staffing, Operations and Environmental Sustainability Section ACDBE information in response to “Management #5” is missing. However, it is provided in the small business section.

Detailed Notes Regarding Strengths of the Management, Staffing, Operations and Environmental Sustainability Section Supporting Scoring

Operations are well thought out and the Proposer is using the latest technology for maximum efficiency. Proposer would implement mobile ordering and payment technology that eventually could be used for gate

deliveries. Proposer would have pre-loaded tablets for children that they have implemented throughout North America. The Proposer plans to compost, recycle, and implement energy conservation measures (mentioned SAMP). The proposed construction and design had sustainability considerations and the Sea-Tac master plan in mind. The Proposer emphasized the importance of safety.

Detailed Notes Regarding Weaknesses of the Management, Staffing, Operations and Environmental Sustainability Section Supporting Scoring CA-10 – Baristas are not specifically mentioned in the staffing classifications. Proposer only provided an average staffing plan for all locations (not for each location).

Questions What are the roles and responsibilities of the ACDBE partners?





Evaluation of Management, Staffing, Operations and Environmental Sustainability Section Evaluator’s Total Score = ____18___ (Maximum 20 Points)

A) Management and Staffing = __6__ (Maximum of 7 points) B) Standards for Day-to-Day Operations = ____7____ (Maximum of 7 points) C) Environmental Philosophies & Practices =____5____ (Maximum of 6 points)

For scoring A and B above: Outstanding (meets all requirements and exceeds many) 7 points Very Good (meets most or all requirements and exceeds some) 5-6 points Good (meets most or all requirements) 3-4 points Fair (meets some requirements) 1-2 points Poor (fails to meet most requirements) 0 points

For scoring C above: Outstanding (meets all requirements and exceeds many) 6 points Very Good (meets most or all requirements and exceeds some) 5 points Good (meets most or all requirements) 3-4 points Fair (meets some requirements) 1-2 points Poor (fails to meet most requirements) 0 points





F. Job Quality, Workforce Training, Employment and Service Continuity (20 Points) – When evaluating the job quality, workforce training, employment and service continuity portion of the response, the following information should be considered:

The Port Commission supports the creation of business opportunities that foster economic prosperity, entrepreneurial initiative, increased job opportunity and job security. In addition, the Commission is committed to the creation of job opportunities that offer wage compensation and other benefits that allow employees to thrive and the empowerment to seize opportunities for personal and professional growth. Proposers must provide detail regarding their commitment to employment continuity, provision of quality jobs, sustainable wages, benefits and paid time off (PTO). Proposer that anticipate operating four or more units should also describe their efforts to have discussions regarding service continuity with labor organizations.

Proposers must include information in a narrative response for each of the following items by completing Exhibit 13:

1) Wages and Compensation – Successful proposers should pay a living wage rate. With the adoption of City of SeaTac Ordinance 13-1020 (commonly referred to as Proposition 1) and the decision in Filo Foods, LLC v. City of SeaTac (Case No. 89723-9), this expectation requires wage rates consistent with Ordinance 13-2010.

a. State the starting pay scale for non-managerial, hourly employees anticipated to be employed in the operation and whether that pay scale meets or exceeds the requirements outlined in Ordinance 13-1020.

b. Describe other forms of compensation (tips, sales commissions, bonuses) and/or benefits provided. Please note the restrictions on tip jars stated in the Operating Standards for Concessionaires.

c. Description of any employee incentive programs that will be initiated at the Airport to monitor, measure, promote, and reward sales and customer service.

2) Paid Time Off - Proposers should provide a minimum level of sick and safe time or paid time off (“PTO”) to their employees, at a rate of at least one hour for every forty hours worked, either cash-out unused PTO at year-end or allow employees to carry over a minimum of 40 hours of PTO from year to year, and allow the reinstatement of any accrued PTO if an employee returns to employment after separation or transfer. Note that these expectations may actually exceed the requirements of Ordinance 13-2010. Provide information about the degree to which these expectations will be met and/or exceeded.

3) Affordable Care Act Compliance – Proposers should provide health insurance to their full-time employees, that is, at a minimum, consistent with the requirements of the Affordable Care Act (“ACA”). Proposers should provide information about the provision of health insurance to full-time employees consistent with the requirements of the ACA.

4) Employee Training - Outline employee training practices, including a description of customer service, merchandise/menu and store operations training or any other training or company-sponsored or supported workforce development programs unique to the proposed concepts provided to employees.

5) Employment Continuity Pool – Successful proposers must interview qualified, non-managerial, non-supervisory and non-confidential employees from the Port’s Employment Continuity Pool, managed by a third party vendor, before considering applications outside the pool. If the award of this opportunity may result in the operation of four (4) or more units at Sea-Tac, successful proposers are expected to provide a commitment to hire such employees from the pool. For employees that may be hired from the pool, proposers should indicate a commitment to retaining those employees for a minimum of a 90-day “trial period” and the conditions for such “trial period.” If you do not believe that participation in the Port’s Employment Continuity Pool will be applicable, please explain in your proposal.





6) Service Continuity Assurances – If the award of this opportunity may result in the operation of four (4) or more units, the Commission expects that the proposer will document good faith discussions with labor organizations representing incumbent employees. If applicable, provide documentation, such as phone logs, emails, journals, agendas and/or notes that demonstrate these efforts. If you believe that this assurance is not applicable to your proposal, please explain in your submittal.

7) Additional Job Quality, Training, and Service Continuity Efforts - Describe any additional efforts that you will make to support the job quality, training, and continuity of your employees beyond those outlined above.

Information Missing from the Proposal for the Job Quality, Workforce Training, Employment and Service Continuity Section None.

Detailed Notes Regarding Strengths of the Job Quality, Workforce Training, Employment and Service Continuity Section Supporting Scoring

The Proposer’s employee benefits package is superior, including PTO, medical insurance, and paid sick time. The Proposer has an employee recognition program. The Proposer offers the following vacation: full-time employees (30+ hours/week)< 5yrs =10 days; 5-10 years

= 15 days; 10-15 yrs = 17 days; >15 years = 20 days. Part-time employees (20-30 hours/week) will earn vacation at one-half of these rates.

Proposer would accommodate the Port’s requirement for the carry over of vacation (even though their current vacation plan does not provide for this). Rehires within 6 months of their separation date will earn vacation based on their original hire date.

Proposer offers five paid sick days at the beginning of each year. Proposer has a tuition reimbursement program that covers up to $2K per year for job-related courses. Employees receive 6 paid holidays. Proposer pays bereavement leave (3-5 paid days for an immediate family member & 1-3 days for other family

members). Unpaid leave of absence (PTO or sick if available) The Proposer offers insurance to full-time hourly employees as follows: 3 health insurance plans are offered

and the lowest is $78/month (80/20 employer/employee split); $10,000 basic life & AD&D is paid 100% by Proposer; and an Employee Assistance Program is available.

The Proposer offers a 401K for employees and matches 35% of the employee contributions up to 6%. Full-time employees are eligible after one month and part-time, hourly, and variable employees are eligible after one year of employment.

Proposer has a retention program focused on growing leaders and training to retain staff. They try to promote from within.

Detailed Notes Regarding Weaknesses of the Job Quality, Workforce Training, Employment and Service Continuity Section Supporting Scoring

Questions





Evaluation of Job Quality, Workforce Training, Employment and Service Continuity using the scale below. Evaluator’s Score = ____19____ (Maximum 20 Points) Scoring for Packages of 4 or More Units: Outstanding (meets all requirements and exceeds many - for items 1-7 above) 17-20 points Very Good (meets most or all requirements and exceeds some - for items 1-7 above) 13-16 points Good (meets most or all requirements - for items 1-7 above) 9-12 points Fair (meets some requirements - for items 1-7 above) 5-8 points Poor (fails to meet most requirements - for items 1-7 above) 0-4 points





G. Small Business Participation (20 Points) – When evaluating the small business participation portion of the response, the following information should be considered:

Proposers must include information about the following:

1. Small Business Qualifications - Proposers should indicate whether they qualify as a small business either (i) relative to the standards adopted by the U.S. Small Business Administration (SBA) in accordance with the size standards for their North American Industry Classification System (NAICS) codes established by the SBA, or (ii) by being certified as an Airport Concessions Disadvantaged Business Enterprise (ACDBE) based on the eligibility standards in 49 CFR Part 23, Subpart C.

i. If a proposer qualifies as a small business relative to the SBA small business size standards, include the following information in the proposal:

Business address and state and date of the establishment of your business

NAICS code for your business

Average annual receipts over the last three years Confirmation that your business is organized for profit Confirmation that your business operates primarily in the U.S. or makes a significant contribution to the

U.S. economy through payment of taxes or use of American products, materials, or labor Federal Tax Identification number

Confirmation that your business is independently owned and operated

Confirmation that your business is not dominant in its field on a national basis

In connection with this item, the Port may also consider some of the information provided in response to Section C above, including (but not necessarily limited to) the proposer’s organizational structure, details about proposer’s organization structure, and the number of employees.

ii. If a proposer qualifies as a small business by certification as an ACDBE, include the following information in the submittal:

Business address and state and date of the establishment of your business NAICS code for your business Average annual receipts over the last three years Federal Tax Identification number Copy of ACDBE certification

iii. If proposer is a joint venture including a small business, provide the following information in the proposal:

Items from section i or ii, as appropriate, for each small business partner in the joint venture Copy of Joint Venture Agreement showing the roles, responsibilities, and ownership percentages for all

parties The percentage of capital invested by each joint venture partner





The following Joint Venture Participation Table completed with the appropriate information indicating the level of control in the joint venture possessed by the small business partner

Joint Venture Participation Table

Level of Small Business Control in Joint Venture Always Sometimes Never (check box below as appropriate)

Sets company policy (strategic / financial policies) Makes decisions regarding sales, promotions, and major purchases

Makes management hiring decisions, and supervises operational staff

Manages the office (cash, inventory, back office management)

Obligates business by contract (such as credit, bonding, or insurance), and decides how profits are spent or invested

2. Proposers should indicate whether and to what degree they commit to, and their proposed operation will

include, any of the following three opportunities for participation by local, small and/or disadvantaged firms. A proposer should describe how its commitment meaningfully and significantly supports local, small, and/or disadvantaged businesses participation. Sourcing products and/or supplies and/or providing product placement opportunities for products

produced by local, small and/or disadvantaged firms Mentoring of one or more small businesses, which could include an association or collaboration with a

small business and/or ACDBE firm that does not otherwise qualify as a formal joint venture/partnership Utilizing local, small and/or disadvantaged firms in the design and/or construction of your unit(s)

Information Missing from the Proposal for the Small Business Participation Section None.

Detailed Notes Regarding Strengths of the Small Business Participation Section Supporting Scoring The Proposer is planning to locally source products with several businesses (such as Duck Delivery and WW Johnson meat company). The Proposer has proposed 20% ACDBE participation with a pending, local, Washington State-certified ACDBE, Hyflyers. The Proposer plans to use local design and engineering firms.

Detailed Notes Regarding Weaknesses of the Small Business Participation Section Supporting Scoring The proposed JV partner does not have any food service experience. However, this issue is mitigated by their applicable, extensive business expertise. Did not provide a joint venture agreement.





Questions Comment: Hyflyers’ ACDBE certification is pending, but not finalized. Please provide a copy of the ACDBE certification. NOTE – Hyflyers was certified on December 21, 2016. The proposal form states that SSP America will be the lessee but in section 7 there describes a joint venture. Please clarify.

Evaluation of Small Business Participation Section Important note about Small Business Participation scoring:

A proposer that qualifies as a small business will automatically receive ten (10) points. To the extent that the proposer represents a joint venture involving a small business, the proposer will receive a portion of the ten (10) points proportionate to the small business partner’s degree of control of the business as documented in the Joint Venture Participation Table submitted in Proposal.

All proposers, regardless of size, may receive up to the points shown for each of the three small business participation opportunities identified above depending on the degree of commitment and specific actions described in the proposal (i.e., sourcing/product placement (7 points), mentoring (7 points), and design/construction (6 points)).

No proposer may earn more than twenty (20) points for the Small Business Participation element.

Evaluator’s Total Score = __11__ (Calculations may exceed 20 points, however the maximum score is 20 Points) 1. Small Business Qualification (0-10 points) ___0___

A proposer that qualifies as a small business will automatically receive ten (10) points. To the extent that the proposer represents a joint venture involving a small business, the proposer will receive a portion of the ten (10) points proportionate to the small business partner’s degree of control of the business as documented in the Joint Venture Participation Table submitted in Proposal.

2. Small Business Commitment ___11___ (sum of points below)

- Sourcing products and/or supplies and/or providing product placement opportunities for products produced by local, small and/or disadvantaged firms (0 - 7 points) ___7___

- Mentoring of one or more small businesses, which could include an association or collaboration with a small business and/or ACDBE firm that does not otherwise qualify as a formal joint venture/partnership. (0 - 7 points) ___0___

- Utilizing local, small and/or disadvantaged firms in the design and/or construction of your unit(s). (0 - 6 points) __4___





TOTAL SCORE FOR PROPOSAL

Category for Evaluation Maximum Potential

Score

Evaluator’s Score

Background, Experience and Financial Capability 20 points 18

Concept Development 25 points 24

Unit Design, Materials and Capital Investment 25 points 22

Financial Projections and Financial Offer 20 points 18

Management, Staffing, Operations and Environmental Sustainability 20 points 18

Job Quality, Workforce Training, Employment and Service Continuity 20 points 19

Small Business Participation 20 points 11

TOTAL SCORE 150 points 130

fl4 ssp eval er · expiration dates), capital investment and photographs (if available). also...

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