FOOD & BEVERAGE AND RETAIL CONCESSIONS AT PHX TERMINAL 3

REVENUE CONTRACT SOLICITATION (RCS)AVN 16-110

PRE-RESPONSE MEETING

JUNE 8, 2017

T3 TOUR

• Bus transportation provided to and from T3

• Attendees may choose to drive to T3

• Meet at pre-security door #3

• Monitored luggage hold area

• Tour• ticketing

• security screening

• post security lobby completed in construction Phase 1

• Sky Train connection to T3

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AGENDA

• RCS Process and Response Success – Michael Hughes

• F&B and Retail Concession Programs at T3 –Paula Kucharz

• Outreach Requirements – Joanne McLaughlin

• Q & A

• T3 Tour

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QUESTIONS & ANSWERS

• Written questions only• Must be legible• Some answers available today• All written answers published on web

• Written answers supersede verbal answers

• Email alerts when Q&A available online

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Q&A DEADLINE

• Submit questions by June 28, 2017• 11:00 a.m. local Phoenix time

• Email: busopps.aviation@phoenix.gov

• Answers available by July 10, 2017• www.phoenix.gov/solicitations/493

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RCS BASICS

• Timely Submittal

• Minimum Qualifications

• Multiple Response Prohibition

• Outreach Requirements

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SUBMITTAL DEADLINE

• When: Tuesday, August 1, 2017

• What Time: 11:00 a.m. Local Phoenix time

• Where: City of Phoenix Aviation Department Offices2485 E. Buckeye RoadPhoenix, AZ 85034-4301

• Aviation normal business hours – 8 am-5 pm

• Late Responses Will Be Rejected

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RESPONSE EVALUATION & INTERVIEWS

• Evaluation of Responses: Aug. 1st – 31st

• Short-Listing (if necessary): Aug. 31st – Sept. 30th

• Respondent Interviews – Oct. 1st – 31st

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MINIMUM QUALIFICATIONS

• Each Response must demonstrate it meets the minimum qualifications or the Response will be rejected as non-responsive.

• F & B and Retail

• Contracted or major partner in at least one airport to operate food and beverage and/or retail concession for 3 continuous years within last 5 years.

• At least one contract generated a minimum of $5 million in annual gross sales for 1 of the 3 years.

• Good standing

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RESPONSE LIMITATION

• Limit: One response for each package• If respondent submits more than one response per package,

all responses from the respondent will be rejected

• Respondents can be awarded only one Food & Beverage and one Retail Package

• No exclusivity

• No contingencies

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FORM OF RESPONSES

• Narrative of Response must be on 8.5” x 11” paper in 12 pt. Arial font.

• Architectural renderings, layout/space plans, and copies of material boards may be submitted on 11” x 17” paper.

• The Response and each hard copy must be submitted in a 3-ring 8.5”x11” binder and the pages must be numbered.

• Pages must be numbered by section (example: Tab 2’s page numbers are 2-1, 2-2, 2-3, etc

• One set of material boards no larger than 11” x 17” in size.

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PACKAGE RESPONSE REQUIREMENTS

• Tab 1: General Information

• Tab 2: Concepts, Menus or Merchandise Plan

• Tab 3: Design and Quality of Tenant Improvements

• Tab 4: Management, Marketing and Operations Plan

• Tab 5: Qualifications and Experience of Respondent

• Tab 6: Proposed Business Plan

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EVALUATION CRITERIACONSENSUS SCORE : 0-1,000 POINTS

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CRITERIA POINTS1. Proposed Concepts, Menus or Merchandise Plan 0 – 250

2. Design and Quality of Tenant Improvements 0 – 225

3. Management, Marketing and Operations Plans 0 - 225

4. Experience and Qualifications of Respondents and Partners 0 – 200

5. Proposed Business Plan 0 - 100

TOTAL 0 – 1,000

EVALUATION PANEL

• Evaluate Responses and Make Award Recommendation

• Aviation Director may accept or reject recommendation

• Panel may interview all Respondents or create a short-list

• Short-list Respondents substantial chance of contract award

• Consensus scoring based on evaluation criteria

• City does NOT retain individual panelist’s scores.

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SOLICITATION TRANSPARENCY POLICY

• From date and time RCS issued until contract award by Council the Policy is in effect.

• Effective as of May 18, 2017

• All Respondents and their representatives may only contact Procurement Officer regarding this procurement under penalty of disqualification.

• Applies to Respondent, Mayor, Council, etc. except designated Procurement Officer

• Page 31, Section V -A

• Day-to-day business exception

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GOALS OF THE FOOD & BEVERAGE (F&B) AND RETAIL PROGRAMS

• Provide national name brands and local/regional concepts

• Optimize sales and revenues

• Increase opportunities for local/small businesses

• Improve the quality and uniqueness of food & beverage and souvenir and gift merchandise

• Select Respondents, including subtenants/joint venture partners, who have experience with food & beverage and retail concepts

• Select Respondents based on the entire Response – Best Value for the City

• Select Respondents based on factors provided in the RCS

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BUSINESS OPPORTUNITY

• 2 Food & Beverage Packages• Package 1 - 5 Locations + Vending• Package 2 – 5 Locations• 7 Categories (Attachment A)

• 2 Retail Packages• Package 1 – 6 Locations• Package 2 – 5 locations• 7 Categories (Attachment B)

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BUSINESS OPPORTUNITY

• Term

• Rent

• Packages and Venues

• Capital Investment

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TERM

• 10 Years

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MINIMUM ANNUAL GUARANTEED (MAG) RENT AND PERCENTAGE RENT

• MAG -Year 1• MAG set in RCS

• Subsequent Years

• 85% of annual rent paid during preceding year or 100% of MAG for first Lease Year

• Rent will not be lower than MAG for the first Lease Year.

• Percentage Rent• Percentage set in RCS

• Non-negotiable

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RENT

• Rent Upon Opening - Percentage Rent only• For each F&B and Retail contract, from Effective Date of

Lease until all operations under leases begin or January 31, 2020, whichever occurs earlier

• Rent – Subsequent Lease Years• Greater of Percentage Rent or MAG for that lease year

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CAPITAL INVESTMENT

• Initial Required:• F&B Investment: $450 per square foot

• Retail Investment: $350 per square foot

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AIRPORT PRICING POLICY

• Prices at T3 locations cannot exceed a maximum of 10% at street location(s)

• Full Policy in Attachment E

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EMPLOYEE RETENTION POLICY

• Successful respondents and their Partners:• Must hire from the pool of current existing T3

concessions employees

• Retain them for 120 days

• Hire from the similar job classification

• May hire others only when no current T3 concessions employees are available to hire

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DESIGN INTENT

• Design requirements and standards• RCS

• Lease (Attachments C and D)

• Tenant Design Criteria (Exhibits 3 C and D of Leases)

• Share all these documents with the entire team

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SMALL BUSINESS OUTREACH REQUIREMENTS

• No Race- or Gender-Conscious Goals

• Race- and Gender-Neutral Measures to achieve ACDBE, DBE, Small Business Participation

• City of Phoenix utilizes a national market for small business participation

• Respondents must conduct outreach to small businesses!

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SMALL BUSINESS OUTREACH REQUIREMENTS

• For Outreach Requirements refer to:• Exhibit 10-C for Food and Beverage Leases

• Exhibit 10-D for Retail Leases

To locate Small Business Concerns visit:

AZ UTRACS at https://utracs.azdot.gov

Search (DBE) Firm Directory & Select: ACDBE

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Respondents’ outreach efforts are not restricted to companies registered with the City

SMALL BUSINESS OUTREACH REQUIREMENTS

Time of RCS Submittal

• Complete and Submit Attachments H-1 and H-2

• Include Supporting Documentation

• Separate sealed envelope with a USB

• Responsive / Non-Responsive

Post Award Submittal

• Annual Submittal Small Business Utilization Plan

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SMALL BUSINESS OUTREACH REQUIREMENTS

1. Identify opportunities for small business participation,

2. Conduct outreach to notify small businesses of opportunities,

3. Evaluate small business proposals, and

4. Tell each small business that responded to the Respondent’s outreach efforts of the selection decision, whether or not the small business was selected.

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SMALL BUSINESS OUTREACH FORM H-1

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OUTREACH DOCUMENTATION EFFORTS: ATTACHMENT H-1

List each small business contacted• All Contact Information (Column A)• Business Status (Column B)• Scope of Work Solicited (Column C)• Solicitation Method (Column D)• Selection Decision (Column E)• Communication of Outcome(Column F)

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SMALL BUSINESS OUTREACH FORM H-2

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OUTREACH DOCUMENTATION EFFORTS: ATTACHMENT H-2

Small Business Utilization Commitment• Total proposed ACDBE, DBE, Small Business

participation as partners on this lease

• Total ACDBE, DBE, Small Business participation as suppliers of goods & services

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QUESTIONS & ANSWERS

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