1

REQUEST FOR PROPOSALS

PUBLIC PARKING CONCESSION

SIOUX FALLS REGIONAL AIRPORT

AUGUST 01, 2018

The Sioux Falls Regional Airport Authority (SFRAA) is seeking proposals from qualified firms to operate our Public Parking Concession at the Sioux Falls Regional Airport. Beginning Wednesday, August 01, 2018, the complete Request for Proposal (RFP) Package will be available for download from the SFRAA's website at www.sfairport.com. To obtain additional information regarding this RFP, please send your request, via email, to:

Kristin Elgersma, Finance Manager Sioux Fall Regional Airport

2801 Jaycee Lane Sioux Falls, SD 57104 Phone: (605) 336-0762

Kristin.elgersma@sfairport.com All proposals, regardless of method of delivery, must be received in the office of the Sioux Falls Regional Airport Authority by 2:00 p.m. Central Time on Thursday, October 04, 2018. Proposals submitted by e-mail, fax or other electronic method will not be accepted. Proposals received after the deadline will be returned, unopened. A general scope of work includes:

PUBLIC PARKING CONCESSION

FOR (3) SURFACE PARKING LOTS AT THE SIOUX FALLS

REGIONAL AIRPORT

A Proposal Bond or Certified Check, payable to the Sioux Falls Regional Airport Authority, in the amount of Ten Thousand Dollars ($10,000), must accompany each proposal as evidence of good faith. A Pre-Submittal Conference will be held beginning at 2:00 P.M. Central Time on Wednesday, August 22, 2018 will be held in the Airport Conference Room, located on the lower level of the Terminal at the Sioux Falls Regional Airport, 2801 Jaycee Lane, Sioux Falls, SD 57104. All participants in this RFP are strongly encouraged to attend this conference.

All information regarding this RFP (including any Addenda) will be distributed electronically by the SFRAA. Printing of the RFP and associated material will be the responsibility of the recipient. The SFRAA reserves the right to accept or reject any or all proposals, to waive any proposal informalities and to re-advertise for proposals when deemed in the best interest of the SFRAA. The selected firm will contract directly with the SFRAA for the agreement.

End of Announcement

2

TABLE OF CONTENTS PAGE

I. PROPOSAL INSTRUCTIONS AND GENERAL CONDITIONS………………………………….. 3

II. INTRODUCTION ……………………………………………………………………………………… 5

III. BACKGROUND AND EXISTING PARKING FACILITIES………………………………………… 6

IV. SCOPE OF PROPOSED SERVICES ………………………………………………………………. 9

V. ELIGIBILITY AND DISQUALIFICATION OF PROPOSERS ……………………………………… 13

VI. MISCELLANEOUS INFORMATION………………………………………………………………….. 14

VII. AIRPORT CONCESSION DISADVANTAGED BUSINESS ENTERPRISE……………………… 16

VIII. EVALUATION OF PROPOSALS …………………………………………………………………….. 18

IX. SUBMISSION REQUIREMENTS AND PROPOSAL FORMAT …………………………………… 19

X. AWARD OF CONTRACT………………………………………………………………………………. 25

XI. EXHIBITS TO THIS RFP

a. Exhibit A: FSD Facilities Parking …………………………………………………..26

b. Exhibit B: Proposal Offer Form …………………………………………………….27

c. Exhibit C: FSD ACDBE Program……………………………………………… Separate File

d. Exhibit D: Concession Agreement……………………………………………….Separate File

3

I. PROPOSAL INSTRUCTIONS AND GENERAL CONDITIONS

The Concession Agreement will be awarded and Proposers are requested to submit Proposals under the guidelines, limitations, terms and conditions set forth below:

IMPORTANT DATES

Activity (All times are CDST) Date

Issue RFP Aug. 01, 2018

Pre-Submittal Conference at 2:00 PM Central Time

Aug. 22, 2018

Deadline for Submittal of Written Questions at 4:00 p.m.

Aug. 29, 2018

Proposal Submittals Due by 2:00 PM Central Time (“Proposal Closing Time”)

Oct. 4, 2018

Evaluation of Proposals Oct. 8-12, 2018

Short Listing & Respondent Interviews (if applicable)

Week of Oct. 15, 2018

SFRAA Board Approval Oct. 25, 2018

Service Agreement Estimated Start Date Jan. 01, 2019

SUBMISSION OF PROPOSAL

Sealed, complete proposals are to be submitted to:

Sioux Falls Regional Airport

Attn: Finance Manager

2801 Jaycee Lane

Sioux Falls, SD 57104

Proposals must be identified, visibly presented on the exterior of sealed packaging as” PROPOSALS FOR PUBLIC PARKING CONCESSIONS AT THE SIOUX FALLS REGIONAL AIRPORT”. Contents of the proposal must be submitted and organized using the format provided under the RFP. RFP Respondents must submit one (1) original, five (5) hard copies and (1) electronic copy (flash drive) of their Proposal no later than 2:00 p.m. Central Time on October 04, 2018.

Delivery of Proposals, regardless of method used, must be received and signed for by the SFRAA Finance Manager or Administrative Assistant. Respondents are encouraged to require signatures for all packages delivered in response to this RFP. Proof of delivery (with signature) will be required for respondent to prove delivery by the Proposal Closing Time.

4

RFP OBJECTIVE

The objective of this RFP is to provide sufficient information to enable qualified Proposers to submit written proposals to the SFRAA, which will enable the SFRAA to evaluate the proposals. The RFP is not a contractual offer or commitment to purchase products or services.

CONCESSION AGREEMENT

The successful Proposer pursuant to this RFP will be required to enter into a Concession Agreement in the form of the Concession Agreement attached to this RFP as Exhibit “D”. Each Proposer should read the Concession Agreement thoroughly and fully inform itself of the rights and obligations contained therein. No comments to the Concession Agreement will be considered after the Proposal Closing Time.

SELECTION CRITERION

One (1) Concession Agreement will be awarded to a qualified and responsible Proposer who has submitted the best Proposal, in the sole determination of the SFRAA Board, in response to this RFP.

The criterion for selection of the Successful Proposer is set forth in section VIII and IX below. No proposal will be considered in which the Gross Revenue Percentage Payment in any tier offered is less than eighty-five percent (85%) for the entire Term of the Concession Agreement. The SFRAA reserves the right, in its sole discretion, to reject any or all Proposals for no reason or for any reason, including if the Gross Revenues to be generated as a result of such Proposals is deemed by the SFRAA to be insufficient.

MODIFICATIONS OF PROPOSAL DOCUMENTS

The SFRAA reserves the right to modify the RFP documents by issuing addenda to all parties. All addenda will be posted on the SFRAA’s website at www.sfairport.com

WITHDRAWAL OF PROPOSALS

No proposal may be withdrawn after Proposal Closing Time for a period of one hundred twenty (120) calendar days. The Concession Agreement shall be legally binding at the time of execution by the SFRAA.

REJECTION OF PROPOSALS

The SFRAA reserves the right to accept or reject any or all proposals for no reason or for any reason, to waive any minor proposal irregularities, technicalities, or informalities, and to re-advertise for proposals when deemed in the best interest of the SFRAA.

EXCEPTONS TO SPECIFICATIONS

Proposals will not be accepted which are conditional in any manner. Strict compliance with this Request for Proposals is required. No Addenda, alternates or changes to the attached Concession Agreement shall be accepted in any proposal and inclusion of such shall result in rejection of the proposal.

PROPOSAL GUARANTEE

The Proposer must provide a good faith deposit in the form of a proposal bond or certified check made payable to the Sioux Falls Regional Airport Authority in the amount of ten thousand dollars ($10,000.00) (“Proposal Guarantee”). Proposal Guarantees accepted as good faith deposits will be retained by the SFRAA until award and execution of Concession Agreement is complete. Any Proposer withdrawing its proposal after

5

the Proposal Closing Time forfeits the right of return of his good faith deposit. Proposal Guarantees will be returned to Proposer not selected within one week of execution of Concession Agreement with selected Proposer.

INTERPRETATIONS

All questions concerning the specifications or conditions shall be directed in writing to the SFRAA Finance Manager, Kristin Elgersma, and must not be received later than 4:00 p.m. Central Time on August 29, 2018. Inquiries must reference the proposal item and the date of the Proposal Closing Time. Responses to inquires submitted to the Finance Manager will be distributed electronically to all RFP participants in the form of an Addendum. The SFRAA shall not be responsible for explanation or interpretations which are not documented via Addendum issued by the SFRAA Finance Manager.

GOVERNING PROVISIONS

All applicable Federal, State of South Dakota, and City of Sioux Falls laws including all ordinances, rules, and regulations shall govern the development, submittal, and evaluation of all proposals received in response to these specifications, and shall govern any and all claims between person(s) submitting a proposal response hereto and the SFRAA, by and through its officers, employees and authorized representatives. A lack of knowledge by the Proposer concerning any of the aforementioned shall not constitute a cognizable defense against the legal effect thereof.

INFORMATION AND REPORTS

The Proposer shall provide all information and reports required by the SFRAA and shall permit access to its books, records, accounts, other sources of information and its facilities as may be determined by the SFRAA to be pertinent to ascertain compliance with all governing provisions, regulations, orders and instructions.

MISTAKES

Proposers are expected to examine conditions, scope of work, proposal prices, extensions and all instructions pertaining to the Services involved. Failure to do so will be at the Proposer’s risk.

II. INTRODUCTION

The Sioux Falls Regional Airport Authority (SFRAA), as owner and operator of the Sioux Falls Regional Airport (“FSD”), is seeking Proposals from qualified parking facility operators (“Proposer”) for the Parking Concession at FSD (the “Services”). The goals and priorities of the Services are as follows:

(1) To increase customer service and amenities through a qualified and experienced

provider;

(2) To maximize efficiency through strategic staffing and operations;

(3) To promote customer awareness through friendly and professional staff;

(4) To promote diversity, inclusion and local business growth and

(5) To minimize the SFRAA’s costs while maximizing revenue through the parking

facilities at FSD.

6

The complete Request for Proposals Package includes the information, requirements and forms

necessary for a complete proposal. A Pre-Submittal Conference will be held at 2:00 pm Central Time

on Wednesday, Augusts 22, 2018. The conference will be held in the Main Floor Conference Room

located in the Sioux Falls Regional Airport Terminal Building, 2801 Jaycee Lane, Sioux Falls, SD 57104. The conference should last no more than two hours and may include a site tour. The name of

the individual or individuals representing the Proposer at the Pre-Submittal Conference and the email

address for the Proposer’s primary point of contact should be submitted to the SFRAA’s Finance

Manager, Kristen Elgersma, via email at Kristen.Elgersma@sfairport.com. Prior to and after the Pre-

Submittal Conference, any questions concerning the RFP may be submitted in writing to Kristen

Elgersma via email at Kristen.Elgersma@sfairport.com. However, no responses will be provided for

questions received after 4:00 pm Central Time on August 29, 2018. Answers to all written questions

will be issued via written Addendum. All Addenda will be issued by the SFRAA Finance Manager and it

will be the responsibility of the Proposer to frequently check for such Addenda. If any Proposer fails to

acknowledge opening of any such Addenda in the space provided on the Proposal Form, its proposal

will nevertheless be construed as though the Addenda had been received and acknowledged and may

be disqualified by the SFRAA for failure to address the Addenda. Proposers shall neither rely upon, nor

will the SFRAA or its designees make, verbal responses regarding this RFP.

The Services required under this RFP specifically relate to the management, staffing and collection of

revenue generated from approximately (2,470) public parking spaces on FSD property adjacent to or

near the Terminal. There is currently one (1) dedicated office space from which parking services is

established and operates. See Exhibit A for additional information on the existing facilities.

III. BACKGROUND- AND EXISTING PARKING FACILITIES

EXISITING PUBLIC PARKING CONCESSION AGREEMENT Public parking services are currently provided at the Airport by SP Plus, Corporation. (“Incumbent

Concessionaire”), pursuant to the existing Concession Agreement which expires on December 31,

2018. Some key facts regarding the Incumbent Concessionaire’s operations under the existing

Concession Agreement are set forth below:

A. The Incumbent Concessionaire operates the following facilities, which are owned by the

SFRAA. The successful Proposer will manage and operate these facilities under the

Concession Agreement to be awarded as a result of this RFP.

1. Public Parking Facilities (see Exhibit A of the RFP). The Parking Facilities are

composed of three surface lots as follows:

• Short-Term Hourly Parking Lot – Surface lot has parking capacity for

approximately three hundred (300) vehicles.

7

• Long-Term Parking Lot – Surface lot has parking capacity for approximately

one thousand four hundred five (1,405) vehicles.

• Economy Parking Lot – Surface lot has parking capacity for approximately

seven hundred sixty-five (765) vehicles.

• Employee Parking Lot – Surface lot with capacity for 190 vehicles.

2. Other Facilities The main parking exit booth and the exit booth for the Economy Lot

are shown on Exhibit A.

3. Concession Fees. The Incumbent Concessionaire pays a Gross Revenue Percentage

Payment for the right to operate the Concession.

4. Parking Access and Revenue Control Equipment. The SFRAA owns all Parking

Access and Revenue Control Equipment (Amano) which is approximately seven years

old. Proposer would need to provide their own license plate inventory system

equipment/software.

B. The Airport does not have any historical information on Incumbent Concessionaire staffing or

historical operating expenses.

NEW PUBLIC PARKING CONCESSION AGREEMENT The SFRAA intends to award one (1) Concession Agreement at FSD pursuant to procedures set forth

in this RFP for the exclusive right to operate the public parking concessions at the Airport. The

successful Proposer shall be required to operate the Concessions in the facilities set forth in Exhibit A,

or as otherwise modified during the term of the Concession Agreement. Concession Fees under the

new Concession Agreement are summarized below.

A. Concession Fees. For the privileges and rights of operating the Concessions, the Proposer

shall pay Concession Fees to the SFRAA in an amount equal to the greater of: (1) the Gross

Revenue Percentage Payment as shown on the Proposal Form submitted in response to this

RFP; or (2) the Minimum Annual Guarantee as described below.

1. Gross Revenues Percentage Payment. Each Proposer shall specify in the Proposal Form

the percent of Gross Revenues it agrees to be bound to pay for the entire Term of the

Agreement. Tiered percentage proposals, i.e. different percentages based on different

levels of Gross Revenues, are acceptable. However, the Gross Revenues Percentage

Payment at all tiers must be no less than eighty-five percent (85%).

2. Minimum Annual Guarantee. The Minimum Annual Guarantee for the first Contract Year

(as defined in the Concession Agreement) shall be Four Million Dollars ($4,000,000). For

ensuing Contract Years of the Term, the Minimum Annual Guarantee shall be 85% of the

Concessionaire’s previous year’s Concession Fees; however, in no event shall the

8

Minimum Annual Guarantee for any contract year of the Term of the Concession

Agreement be less than $4,000,000. If any Contract Year of the Concession Agreement

lasts less than twelve (12) full months, then the applicable Minimum Annual Guarantee for

said Contract Year shall be determined proportionately by dividing the number of days the

Concession Agreement is in effect for that Contract Year by 365 days and multiplying the

product by Four Million Dollars ($4,000,000).

AIRPORT INFORMATION The Sioux Falls Regional Airport is located in the city of Sioux Falls, SD, which is in the southeastern

part of the State of South Dakota. Serving more than 1 million passengers annually, the Sioux Falls

Regional Airport is the primary airport for eastern South Dakota, southwest Minnesota and northwest

Iowa.

ENPLANMENT HISTORY The following chart highlights the enplanement history for the past five (5) years and the current fiscal

year as of June, 2018:

CALENDAR YEAR ENDING DECEMBER 31ST

TOTAL ENPLANMENTS

2013 482,645

2014 487,127

2015 490,448

2016 509,440

2017 541,589

2018 (January – June) 264,312

(The SFRA makes no guarantee as to the accuracy or reliability of the enplaned passenger data

provided in connection with this RFP, which has been provided by the airlines serving the Airport.)

Historical gross revenues under the Existing Concession Agreement since Calendar year 2012 are as

follows:

CALENDAR YEAR ENDING DECEMBER 31ST

PUBLIC PARKING REVENUE *

2012 $3,098,000

2013 $3,414,000

2014 $3,870,000

2015 $4,167,000

2016 $4,354,000

2017 $5,015,000

* (Includes gross revenue received from Short and Long Term Lot and the Economy Lot.)

9

IV. SCOPE OF PROPOSED SERVICES

The selected Proposer shall cooperate and work with SFRAA management to execute the attached

Concession Agreement and to implement the required objectives listed below.

Required Services Personnel

The Services provide for a unique opportunity to offer first-class parking services at South

Dakota’s largest airport. The successful Proposer will have the opportunity to expand the

current operations and incorporate new amenities and ideas upon review and approval by the

SFRAA. FSD's current staffing level provides a number of positions to support the growing

public parking operation. The positions required to be included in the successful Proposal

shall include a Manager, Supervisors, Cashiers and License Plate Inventory Attendants.

However, the SFRAA reserves the right to modify the requirements of the necessary staffing

matrix. The successful Proposer shall provide parking Management staff, in the form of at least

one Supervisor on duty at all times as well as the necessary number of cashiers and support

staff to meet the needs of all patrons parking at FSD.

Proposers are to provide a full-time and 100% dedicated manager to the facility and due to the

size, complexity and multiple services (i.e., snow removal, shuttle services), manager should

not provide scheduled cashiering services by working a portion of the day being a cashier.

Proposer shall provide name of the anticipated Concession Manager along with a resume of

prior experience. Proposed manager must have a minimum of 2 years managerial experience

at an Airport of comparable size with annual Gross Revenues no less than $3,500,000.

Minimum Wage Requirement

In order to provide an acceptable level of customer service and minimize employee turnover,

the Successful Proposer will be required to implement a Minimum Hour Wage of $10.50/hour.

Required Revenue Collection and Delivery to the SFRAA

• Daily Management & Reconciliation of all revenues generated by the parking services provided at FSD

• Manager shall deliver all receipts, reports and revenue collected daily to the designated SFRAA staff member.

Required Reporting

• Daily Transaction Reconciliation

• Daily License Plate Inventory

• Daily Monetary Shortages

10

• Daily Incident Report

• Monthly Training Report Areas and Hours of Operation

• Short Term/Hourly Parking – approximately (300) spaces located in front of terminal.

• Long Term / Daily Parking – approximately (1,405) spaces in front of terminal building.

• Economy Parking – approximately (765) spaces located to the southeast of terminal building.

• Employee Parking Lot – approximately (175) spaces located southeast of terminal building.

• Parking lots must be attended 24-hours/day, 365 days/year.

Rates

All parking rates are set by the SFRAA. Current rates listed below:

LOCATION (LOT) MAXIMUM (24-HOURS) PER HOUR

Short-Term $14.00 $2.00

Long-Term $ 8.00 $1.00

Economy $ 7.00 day/$35 week $1.00

Exiting

• At all times the successful Proposer shall make every effort to minimize wait times for customers exiting

through a cashier-attended exit lane.

• There are four (4) exit lanes in the main exit plaza: (1-2) cashiered booths and three (3) express exit

lanes. The Economy Lot has two (2) exit lanes, including 1 cashiered booth.

Services Provided by the SFRAA

Pursuant to the Concession Agreement, SFRAA will provide certain essential services/furnishings for use by the

successful Proposer. These items include:

• Maintenance for exit booths and office area is provided by the SFRAA but does not include trash pick-

up. Daily cleaning is the responsibility of the Proposer. At the end of the Term, Proposer is required to

return the office space(s) to the SFRAA in the same (or better) condition in which received.

• All Parking Revenue Control Equipment. (Except License Plate Inventory System).

• All IT Equipment (Desktop Computers, Monitors and Printers) required by the Revenue Control

Equipment. However Proposer is responsible for the daily maintenance and upkeep of the working

revenue control system hardware.

• Office space only, no furnishings (desk, chairs, etc.).

Transition Services The successful Proposer will be responsible for preparing and managing an orderly and effective

11

transition and start-up of the Services. Proposers will be responsible for their own expenses as part of

the Transition Plan. (As part of the proposal, please include a transition plan.)

Contract Term The term of the Concession Agreement will be four (4) years from the earliest date the successful

Proposer starts performing any Service at FSD. Proposer will be required to enter into a Concession

Agreement (Exhibit D) with the SFRAA that encompasses the requirements and terms set forth in this

RFP. The SFRAA reserves the right to extend the Concession Agreement after the initial term as

deemed appropriate by the SFRAA.

Utilities Proposer shall be responsible for phone service to the administrative office and cashier’s booth; all

other utilities are provided by the SFRAA.

Maintenance and Repair Proposer shall maintain all signs and striping in the parking facilities and maintain the parking lots to

ensure they are clean and free from dirt, snow and ice, weeds, refuse/trash and other matter. Proposer

shall maintain and repair all booths and equipment at Proposer’s expense in accordance with the

direction of the SFRAA.

Management Review On a quarterly basis, the SFRAA and at least one representative of the upper management of the

successful Proposer will meet face to face to discuss any operational and contractual concerns. As

part of the proposal, the members of Proposer’s upper management that would be included in this

meeting must be identified.

Monetary Shortages The successful Proposer will be responsible for any monetary shortages as determined by the

difference between the revenues collected and the value of all corresponding transactions. These

shortages shall be reported to the SFRAA daily and a monthly summary report, reflecting all of the

month's shortages. Shortages may not be discounted from Gross Revenues for the purposes of

calculating the percentage rent due to the SFRAA.

Training The SFRAA will provide "Train the Trainer" for the successful Proposer's identified personnel. Upon

completion of the "Train the Trainer" the successful Proposer will be expected to provide training to all

other personnel on the relevant computer systems and the minor repairs required under the Services.

12

Customer Complaints The successful Proposer is responsible for responding to customer complaints received by Proposer.

Responses must be in writing and a copy of the Complaint and written response must be provided

to the SFRAA within (24) hours of receipt of the Complaint. Equivalently, all complaints received by

the SFRAA will be forwarded to the management of the successful Proposer. As part of the

Proposal, please include a short description of how these complaints and conflict management will

be handled.

Personnel Background Checks & Assurance The successful Proposer must conduct background checks for all personnel providing Services at

FSD separate and apart from that required for any badge identification issued by the SFRAA. As

part of the proposal include the type and scope of the background checks conducted. Background

checks must, at a minimum, include a driver's record check. The proposal should be clear on what

the Proposer would consider a disqualifying offense. All personnel providing Services at FSD must

be bonded against theft, embezzlement and other losses of customer and SFRAA property.

Personnel Driving and Safety Requirements All personnel providing Services at FSD must have a valid driver's license. While operating at FSD the

successful Proposer's employees must obey all traffic laws, rules and regulations or operating

directives of FSD staff. Any motorized services required to perform the requested services will be

provided by the Proposer. In addition, Proposer and its employees must agree to abide by a strict

no weapons policy while on Airport property to include firearms, knives, explosives or weapons of

any kind.

Uniforms The successful Proposer will supply its employees with uniforms with the company's insignia and

name tags. Management staff should be provided with unique uniforms to distinguish them from

other airport employees. For relevant positions, the successful Proposer should also provide

inclement weather gear. Include as part of the Proposal how you plan to meet unique uniform

requirements or in the alternative, why using a standard uniform would be more beneficial to

customer service. Uniforms must be submitted to and approved by the SFRAA prior to

commencement of services.

Storage and Office Space Office and storage space will be made available to the successful Proposer at no cost. The

location and amount of the available space will be discussed at the Pre-Proposal Conference.

13

Payroll Taxes, Insurance, Licenses and Fees The successful Proposer will be responsible for reporting and collecting all payroll taxes,

applicable licenses and permit fees or other applicable costs associated with the Services that may

be levied by the City, County, State, Federal or other agencies.

License Plate Inventory

Each night between the hours of 12:00 a.m. and 5:00 a.m. Proposer will take an inventory of all

vehicles in the public parking lots. The inventory will be by Parking Lot, State and license number and

will be used for processing lost ticket transactions and locating “lost” vehicles. Proposer, at its own

cost, is responsible to procure and maintain an electronic License Plate Inventory (LPI) system,

including all handheld or mobile recording devices that can produce customary LPI reports such as

overnight counts, vehicles in excess of 30 days, etc. These reports must be provided to the SFRAA

upon request. Proposer’s LPI system is not required to integrate with the SFRAA’s existing parking

access and revenue control equipment.

Performance Bond The successful Proposer will be required to furnish a Performance Bond in an amount equal to twenty-

five percent (25%) of the Minimum Annual Guarantee for the first Contract Year upon entering into the

Concession Agreement. The Performance Bond will guarantee the successful Proposer will fulfill all

terms and conditions of the Concession Agreement and the Performance Bond must remain in effect

for the full Term of the Concession Agreement. The surety or sureties upon the required Performance

Bond shall be a corporate surety duly authorized to do business in the state of South Dakota.

Advertising and FSD Trademarks & Logos The SFRAA retains the right to advertising at all locations where the Concessions operate. Further, any

use of FSD's trademarks and logos by the successful Proposer is prohibited, absent written consent by

the SFRAA. All advertising related to the Parking facilities / operation at FSD must be authorized

through the office of the Executive Director of the SFRAA.

V. ELIGIBILITY AND DISQUALIFICATION OF PROPOSERS

Mandatory Qualifications

In order to be considered a qualified Proposal for award of the Concession Agreement, the Proposer must meet

the Mandatory Qualifications listed below at the Proposal Closing Time, as determined by the SFRAA.

A. Within the past seven (7) years, must have a least five (5) consecutive years of demonstrated

experience operating and managing an airport public parking facility that is at least comparable in scale,

size and complexity to the Public Parking Facilities at the Airport in the sole determination of the

14

SFRAA; and

B. Within the past seven (7) years, must have at least five (5) consecutive years of experience operating

and managing an airport public parking facility that is open continuously twenty-four (24) hours a day,

three hundred sixty-five (365) days a year; and

C. Within the past seven (7) years, must have at least five (5) consecutive years of experience operating

and managing an airport public parking facility that generates no less than Four Million Dollars

($4,000,000) annual gross receipts and that utilizes an electronic parking access and revenue control

system; and

D. Must not be currently barred, disqualified, or suspended from bidding (including being issued a limited

denial of participation) on government (federal, state or local), or airport contracts or programs; and

E. Must submit in a timely manner all information required to be submitted by this RFP.

Disqualification of Proposals Without in any way limiting the SFRAA’s right in its sole discretion to reject any or all Proposals,

Proposers are advised that any of the following may be considered as sufficient cause for the

disqualification of a Proposer and the rejection of a Proposal:

A. Failure to meet initial eligibility requirements.

B. Submission or more than one Proposal hereunder by an individual, joint venture, partnership,

limited liability company or a corporation under the same or different names.

C. Evidence of collusion among Proposers;

D. The Proposer being in arrears on any existing contract with the SFRAA.

E. The Proposer being in litigation with the SFRAA.

F. The Proposer having defaulted on a previous contract with the SFRAA.

G. Any other cause which, in the SFRAA’s judgment and sole discretion, is sufficient to justify

disqualification of Proposer or the rejection of its Proposal.

Acknowledgement of Proposer Proposers shall thoroughly examine and become familiar with this RFP, including exhibits, and any

addendum that may be issued. The failure or the neglect of a Proposer to receive or examine

any RFP document shall in no way relieve it from any obligation with respect to its proposal or the

obligations that flow from making a successful proposal. No claim based upon a lack of

knowledge or understanding of any document or its contents shall be allowed.

VI. MISCELLANIOUS INFORMATION

Seasonal Shuttle Service

Historically SFRAA has operated a seasonal shuttle service (“Shuttle Service”) from December 15th through

March 31st annually to transport passengers to and from the Economy Lot, Long Term Parking Lot and the

15

Terminal. At the SFRAA’s sole election the Shuttle Service may continue for all, some or no part of the term of

the Concession Agreement.

Using Exhibit B, Proposal Offer Form, Proposer’s must provide an all-inclusive hourly rate (the “Shuttle

Service Hourly Rate”) for each year of the Concession Agreement to cover all costs associated with providing

the Shuttle Service, including all labor and related expenses, employee recruitment and training, shuttle

procurement, fuel, maintenance and insurance. Proposer’s shuttle drivers must wear a company uniform with

name plate identification inside the bus at all times. For budgeting purposes, Proposers must provide two (2)

ADA-complaint shuttle buses with seating for no less than twelve (12) passengers plus a luggage rack (1 driver,

12 passenger seats with 2 seats that fold up to accommodate ADA passengers). Shuttle buses may not be

older than thirty-six (36) months. The Shuttle Service will operate from 4:00a.m. – 12:30 a.m. each day during

the approximately 106 days of Shuttle Service. Proposer should detail its specific recruiting plans to obtain the

required temporary personnel and discuss any contingency plans for staffing shortages.

Proposer shall invoice SFRAA monthly, in arrears, for the total number of Shuttle Service hours multiplied by the

annual Shuttle Service Hourly Rate.

Interpretation of the RFP

All questions concerning interpretation of the RFP documents must be submitted in writing to Kristen

Elgersma, Finance Manager via email at Kristen.Elgersma@sfairport.com no later than 4:00 pm Central

Time August 29, 2018. Interpretations and answers to general questions will only be made by written

addenda. The SFRAA shall not be responsible for providing any other explanation or interpretation.

Consent to Investigate The selection of the Proposer will be based on a thorough investigation into the areas of interest

expressed in the RFP. As part of that investigation, the SFRAA may request the Proposers to provide

additional information including, but not limited to, financial records, information on managing partners

or participation in an interview process. By submitting a proposal, each Proposer consents to any

investigation the SFRAA deems necessary.

SFRAA’s Right to Cancel, Reject, Modify or Reissue RFP The SFRAA, in its sole discretion, reserves the right to modify, cancel, reissue or take any action it

deems necessary in the issuance of this RFP. The SFRAA also reserves the right to reject any or

all proposals. Prior to the execution of the Concession Agreement, no action taken by the SFRAA

may be inferred or construed to give rise to any obligation by the SFRAA.

Attempts to Influence Selection Process

Except for clarifying written questions sent to the SFRAA in compliance with this RFP, all Proposers,

including any and all persons acting on their behalf, are strictly prohibited from contacting elected or

16

appointed Airport officials, officers, or employees regarding any matter related to this RFP.

Proposer’s Cost of Proposal Preparation

Proposers are responsible for any and all costs associated with the proposal process including, but not

limited to, the creation of the proposal costs of participating in any interviews (if applicable). The

SFRAA will not accept any promotional items as part of the proposal process and any such items

included will be returned to the Proposer at its own cost.

Ownership and Public Record

All proposals and supplementary material provided as part of this process will become the property of

the SFRAA. Proposers are advised that all information included in the material provided may become

available to the public under South Dakota’s Public Records Law.

VII. AIRPORT CONCESSION DISADVANTAGED BUSINESS ENTERPRISE GOAL

The following Proposal conditions apply to the Concession Agreement to be awarded. Submission of

a Proposal by a Proposer shall constitute full acceptance of these conditions.

ACDBE REQUIREMENTS 1. In accordance with Regulations of the U.S. Department of Transportation, 49 CPR Part 23,

the SFRAA has implemented an Airport Concession Disadvantaged Business Enterprise

("ACDBE") program under which qualified firms may have the opportunity to operate an airport

business. An ACDBE goal of 3.55% has been established initially for this Concession Agreement.

For calculation purposes, a Proposer’s participation will be measured against the portion of Gross

Revenue retained by the Proposer (defined as all Revenue collected by Proposer in the operation

of the Parking Facilities, less any applicable sales or parking tax, credit card processing fees and

less any Gross Revenue Percentage or Minimum Annual Guarantee payment).

2. ACDBE participation may be in the form of one or more purchases or leases of goods and

services, subleases, joint ventures, partnerships, or other legal arrangements meeting the eligibility

standards in 49 CPR Part 23. The Proposer shall make good faith efforts to explore all available

options to meet the goal, to the maximum extent practicable, through direct ownership

arrangements with ACDBEs. In the event that the Proposer qualifies as an ACDBE, the goal shall

be deemed to have been met.

3. The Proposer will be required to submit information, concerning the specific ACDBE firm(s) that

will participate in the Concessions, including the name and address of each firm, a description of the

work each firm will perform, the annual estimated Gross Revenues to be earned by each firm, written

documentation of Proposer's commitment to use each firm, written confirmation from each firm

17

regarding the kind and amount of work to be performed, and the total overall estimated annual

Gross Revenues to be earned by the Concessions.

4. If the Proposer will be unable to achieve the ACDBE goal stated herein, it will be required to

provide documentation in its Proposal demonstrating that it made good faith efforts to meet the

goal.

5. A Proposer that fails to adequately address the foregoing requirements may be considered

unresponsive and its Proposal may be rejected. 6. The ACDBE goal is subject to periodic adjustment during the term of the Concession

Agreement upon ninety (90) days prior written notice to Concessionaire. The Proposer shall take all

necessary and reasonable steps to achieve this goal.

COMPLIANCE: ACDBE CHANGE 1. All Proposers are hereby notified that failure to include a plan for ACDBE participation, in

accordance with this Section may be grounds for declaring such Proposer's Proposal incomplete

and may be grounds for disqualification from eligibility for award of the Concession Agreement.

Likewise, Concessionaire's failure to carry out its ACDBE obligation set forth in this RFP, once an

award is made and the Concession Agreement is executed, shall constitute a material breach of

contract that may result in termination of the Concession Agreement, or other such remedy as

deemed appropriate by the SFRAA.

2. If Proposer proposes to terminate, substitute or modify the participation of an ACDBE joint

venture, team member, subcontractor, or sub-concessionaire prior to or after award of the

Concession Agreement, prior to such change, the Proposer shall submit for review and prior

approval, to the SFRAA, reasonable documentation regarding the proposed change in ACDBE

participation. Proposer shall include the specific reasons for the change in ACDBE participation and

must produce any and all documents and information regarding the proposed change.

GOOD FAITH EFFORT If any Proposer fails to meet the ACDBE goal established herein, information shall be submitted prior

to award of the Concession Agreement to assist the SFRAA in determining whether or not such

Proposer made sufficient Good Faith Efforts to meet such ACDBE goal. This means that the

Proposers must show that it took all necessary and reasonable steps to achieve the ACDBE goal

which, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to

obtain sufficient ACDBE participation, even if they were not fully successful. The efforts employed by

18

the Proposer should be those that one could reasonably expect a Proposer to take if the Proposer

were actively and aggressively trying to obtain ACDBE participation sufficient to meet the ACDBE

contract goal. Mere pro-forma efforts are not good faith efforts to meet the ACDBE contract

requirements. A list of some, but not necessarily all, of the kinds of efforts that the Proposer may

make, and the Board may consider in making a decision as to the acceptability of a Proposer's efforts

to meet the ACDBE goal is as follows:

• Whether the Proposer attended any Pre-Proposal meetings that were scheduled by the

SFRAA to inform ACDBEs of concession opportunities;

• Whether the Proposer advertised in general circulation, trade association, and minority

focus media concerning the opportunities;

• Whether the Proposer provided written notice to a reasonable number of specific

ACDBEs that interest in the Concessions was being solicited, in sufficient time to allow

the ACDBEs to participate effectively;

• Whether the Proposer followed up initial solicitations of interest by contacting ACDBEs to

determine with certainty whether the ACDBEs were interested.

NOTE: The items set forth above are merely suggested criteria and the SFRAA may specify that Proposers

submit information on certain other actions a Proposer took to secure ACDBE participation in an effort to

meet the ACDBE goal. Any Proposer may also submit to the SFRAA other information on efforts it made to

meet the goal.

VIII. EVALUATION OF PROPOSALS

EVALUATION CRITERIA

A Selection Committee will review and evaluate qualified Proposals and make a recommendation as

to which Proposer offers the best overall Proposal in its judgment, based on the evaluation factors

listed below. The Selection Committee's recommendation will be subject to SFRAA approval. The

Selection Committee will use the following evaluation factors in evaluating Proposals, weighted

according to the number of points assigned to each evaluation factor. The Selection Committee will

consider the following factors, which are listed below and not in any order of preference, in

evaluation of submitted proposals. Proposals will be ranked from highest to lowest based on the total

point scores received in the Selection Committee's evaluation.

1. Financial Offer (Maximum 40 points) Based on the Gross Revenues Percentage Payment offer proposed on the Proposal Form (Exhibit B).

2. Experience and Quality of Past Performance (Maximum 25 points)

Based on the Proposer’s years of related experience and quality of past performance in the management and operation of airport parking facilities with an emphasis on facilities that are at

19

least comparable in scale, size and/or complexity to the Public Parking Facilities at the Airport.

3. Management, Marketing and Operations Plans (Maximum 25 points) Based on the Proposer’s management and staffing plan, transition plan, revenue control plan, customer complaint plan, marketing plan, training program and maintenance plan.

4. ACDBE Participation Plan (Maximum 5 points)

Based on the Proposer’s plan for including ACDBE Participation in the Concessions.

5. Attendance at the Pre-Proposal Conference and the Professionalism of the Proposal

(Maximum 5 points) Based on whether the Proposer was represented at the pre-proposal conference for this RFP.

IX. SUBMISSION REQUIREMENTS AND PROPOSAL FORMAT

Submission Requirements

Proposers shall submit one (1) original, five (5) hardcopies and one (1) electronic copy (flash

drive) of the Proposal to the SFRAA prior to the deadline established in this RFP.

Amendment of Proposal

Amendment of a submitted proposal may occur at any time prior to the Proposal Closing

Time by written request. Amendments will only be accepted through the submission of

complete revised proposal package that meets the requirements set forth in the RFP.

Withdrawal of Proposal

Withdrawal of the proposal may occur at any time prior to the Proposal Closing Time by

written request. Withdrawal of one proposal will not preclude the submission of another timely

proposal but no withdrawal will be allowed for 120 days after the Proposal Closing Time.

Delivery of Proposals All Proposals must be sealed and delivered to the Sioux Falls Regional Airport Authority

using one of the following methods, prior to the Proposal Closing Time established in this

RFP:

1. Hand delivered to the SFRAA Finance Manager inside the SFRAA Offices located at 2801

Jaycee Lane, Sioux Falls, SD 57104. The offices are located on the upper level of the Sioux

Falls Regional Airport Terminal to the left as you exit the escalators. For additional assistance

in locating the offices, the office can be reached by phone at (605) 336-0762.

20

2. United States Postal Service addressed as shown below, return receipt requested.

3. UPS, FedEx or other similar carrier, addressed as shown below. All Proposals must be

addressed as follows:

SIOUX FALLS REGIONAL AIRPORT AUTHORITY

ATTN: KRISTEN ELGERSMA, FINANCE MANAGER 2801 JAYCEE LANE

SIOUX FALLS, SD 57104 PHONE: 605-336-0762

Sealed Proposals, regardless of method of delivery used, must be received and signed for by an authorized employee of

the SFRAA. Authorized SFRAA employees include the Administrative Assistant and the Finance manager for this RFP.

Proof of delivery will be required for respondent to prove delivery by the Proposal Closing Time. Unless otherwise noted

in the RFP, Proposals sent via email or fax will not be accepted.

INFORMATION TO BE SUBMITTED

All Sealed Proposals, in response to this advertised RFP, shall be bound and organized in accordance

with the outline below. All items defined in this outline are required to be included with the Proposal.

Failure to include all items may result in rejection of the Proposal, in its entirety.

1. Clearly displayed on exterior of binder: a. Title of Proposal b. Name, Address and Phone Number of Proposer

2. Contents of the Proposal Response Package contain the following documents and shall be

organized, under separate divider sections (tabs), using the following outline:

Section (Tab) Description

A Executive Summary/Transmittal Letter B Description of Organization

C Experience at Public Parking Facility Locations D References

E Contracts Terminated, Bankruptcy, Debarment, Taxes and Licenses F Financial Background Information G Management and Operations Plan

H Proposal Form I Proposal Guaranty J ACDBE Participation Plan

3. Proposals shall be bound using a standard, 3-ring binder. Proposals requiring multiple binders,

for a single copy, shall be further identified as Volume “X of Y”. Pages may be single-sided or

double sided but must conform to the page limits specified below, excluding specification sheets,

sample copies of forms, resumes, financial statements ownership agreements and other required

21

exhibits.

A detailed description of each section above follows.

TAB A - EXECUTIVE SUMMARY/TRANSMITTAL LETTER (3 pages maximum)

Proposer shall submit a brief executive summary/transmittal letter. The letter must be signed by

an individual who is authorized to contractually obligate the Proposer to the Concession

Agreement to be awarded as a result of this RFP. Proposer must indicate its business structure,

e.g., corporation, joint venture, partnership, LLC, etc., and must state how it meets the

Mandatory Qualifications set forth in Article V. herein. Proposer may also provide any pertinent

facts or details that the Proposer desires to emphasize. In addition, the Proposer shall provide

the full name, title, business address, email address, telephone number and facsimile (fax)

number of the primary point of contact for clarifications or questions regarding its Proposal.

TAB B –DESCRIPTION OF ORGANIZATION (2 pages maximum)

Proposer shall provide the following information under this tab:

• The exact name of the entity that would enter into the Concession Agreement with the SFRAA

for operating and managing the Concessions at FSD.

• The name, business address, website address, telephone number, fax number, and employer

identification number (“EIN”) of the Proposer, its State of incorporation or organization, and a

certificate of good standing from the State if applicable.

• A statement advising whether the business is a sole proprietorship, partnership, corporation,

LLC, joint venture, or other form of business entity.

• List of entity’s owners, principals, directors, and other agents (including primary address for

each).

TAB C – EXPERIENCE AT PUBLIC PARKING FACILITY LOCATIONS (10 pages maximum)

Proposer shall provide a representative list and brief description of airport locations where it

manages public parking operations, including those that are at least comparable in scale, size and

complexity to the Public Parking Facilities at the Sioux Falls Regional Airport. This information

should include the following information:

• Name(s) and address of relevant airport parking operations currently operated and managed

by Proposer;

• State the number of years the Proposer has operated each named location, including dates;

• Provide a summary of the scope of services provided at each named location;

• Provide the annual gross receipts at each named location;

• Provide a brief description of the number of public parking lots and spaces at each named

location;

22

• Identify which locations are twenty-four hour a day, 365 day per year public parking locations;

• Briefly describe the type of parking access and revenue control system used at each named

location.

TAB D – REFERENCES (5 pages maximum)

Proposer shall provide a minimum of three (3) written business references, preferably from similar

sized airports, dated within the six (6) months of the Proposal Closing Time, providing positive

recommendations for the Proposer’s public parking business, including the name and address of

the business entity providing the reference, and the name, job title, business address, email

address and phone number of a person at such reference who is most knowledgeable about the

Proposer’s public parking business activity.

TAB E – CONTRACTS TERMINATED, BANKRUPTCY, DEBARMENT, TAXES AND LICENSES (5 pages maximum)

There are five (5) submittal requirements under this tab.

1. Contracts Terminated – Provide the name, location, and date of any Proposer’s contracts for

operation and management of a public parking facility that have been terminated, either

voluntary or involuntary, prior to the expiration of their term within the past seven (7) years and

the reasons for any such termination(s).

2. Bankruptcy – Indicate whether the Proposer, its owners, or any of its principals, officers,

directors, have been involved in any bankruptcy proceedings in the past seven (7) years.

3. Debarment, Disqualification or Suspension – Indicate if the Proposer, or its owner(s),

principals, officers, or directors have ever been barred, disqualified, or suspended from bidding

(including being issued a limited denial of participation) on government (federal, state, local), or

airport contracts or programs. If yes, please provide full detail including current status and

reason for debarment, disqualification or suspension.

4. Taxes – Provide affirmation that the Proposer is not currently delinquent in filing any tax

returns or in payment of any taxes due to the State of South Dakota, or any other local, state or

federal taxing jurisdiction.

5. Licenses – Provide affirmation that the Proposer is aware of the requirements of the applicable

licensing authority, or authorities, concerning licenses, certifications and permits required to

operate and manage the Concessions and know of no reason why such licenses, permits, or

other required approvals would be denied.

TAB F – FINANCIAL BACKGROUND INFORMATION (no page limit)

Proposer shall provide a copy of its audited financial statements for the past three (3) years.

Proposer may provide additional documentation, of their own determination, which shall provide

23

sufficient evidence of the financial stability necessary to execute the requirements of the scope of

work. The SFRAA shall have the right to request and receive additional supporting evidence of

financial stability, as needed.

TAB G – MANAGEMENT AND OPERATIONS PLAN (16 pages maximum)

Proposer shall provide a detailed description and discussion of how it plans to operate and manage

the Concessions. The discussion should include, but not be limited to:

• MANAGEMENT TEAM I STAFFING

Proposer shall provide detail on proposed Managers, Assistant Managers and other

key personnel identifying the minimum qualifications, experience and skills that Proposer

has used or will seek in make its personnel selections. An integrated organization chart

must be provided containing all key staff and all lines of authority. Resumes of key staff

members, who have been determined as of the Proposal Closing Time should be

submitted. The proposed relationship between Airport staff and Proposer's on-site

management should be clarified. This section shall also address Proposer's plan to

ensure adequate and competent staffing at all times and include a description of

Proposer's employee training program. The narrative shall include Proposer's proposed

plan to implement first preference in the hiring of the Incumbent Concessionaire's

personnel, subject to reasonable hiring standards, in the event the incumbent does not

succeed itself.

• TRANSITION PLAN

Proposer shall submit a project schedule (in calendar days) that details the specific tasks

(e.g. timeline for hiring personnel, training, etc.) that will be completed from Concession

Award Date to the Effective Date of the Concession Agreement. The discussion should also

include, but not be limited to, a comprehensive narrative as to its training plans for use of

the Airport's Parking Access and Revenue Control System. In addition, Proposer should

provide examples of previous projects that were delivered on schedule that are similar in

scope and complexity to this public parking concession opportunity.

• REVENUE CONTROLS

Proposer shall describe the procedures and systems it will use to ensure effective

control over customer receipts and parking tickets. Proposer should discuss methods

of cash control, credit and debit card processing, and methods it will use to ensure the

security of customer credit card information in accordance with industry standards

throughout the term of the Concession Agreement. In addition, Proposer should

describe its internal financial controls and auditing procedures, and describe other

processes critical to maintaining revenue control such as daily reconciliations, vehicle

24

inventories, parking ticket security, lost ticket policy, voided tickets, exception tickets,

non-resettable totals for transactions and revenue collection, etc. Sample copies of

forms to be utilized in maintaining revenue controls, vehicle inventories, and ticket

accountability may be submitted. (These Sample copies or Exhibits will not count

toward page maximum).

• CUSTOMER COMPLAINTS

Proposer shall describe its procedures for investigating and resolving customer

complaints.

• MARKETING PLAN

Proposer shall provide a plan on how it will promote and advertise the public parking

concession, including markets it intends to target in the Airport’s catchment area and

specific strategies on reaching these audiences. Proposer must coordinate with the

Executive Director regarding marketing plans.

• MAINTENANCE

Proposer shall explain its proposed procedures and schedules for all maintenance of

the parking facility including snow and ice removal as well as booth and office space

custodial services required under the Concession Agreement.

TAB H – PROPOSAL FORM

Proposer shall provide a fully completed copy of the Proposal Form attached hereto as Exhibit “B”.

TAB I – PROPOSAL GUARANTY

Proposer shall provide a Proposal Guaranty made payable to the Sioux Falls Regional Airport

Authority, in the form of a cashier’s check or a Bid Bond, duly executed by the Proposer and have

as surety thereon a surety company satisfactory to the SFRAA. The Proposal Guaranty so

furnished shall be in the amount of ten thousand dollars ($10,000).

TAB J – ACDBE PARTICIPATION PLAN Proposer shall describe its ACDBE participation plan, and include specific information

concerning the ACDBE firm(s) that will participate in this Concession, including the name,

business address, telephone number, fax (facsimile) number, Federal Identification Number, a

description of the work each firm will perform, the annual estimated Gross Revenues to be

earned by each firm, written confirmation from each firm regarding the kind and amount of

25

work to be performed, and the total overall estimated annual Gross Revenues to be earned by

the Concessions. If the Proposer will be unable to achieve the ACDBE goal stated herein,

Proposer shall provide documentation in its Proposal demonstrating that it made good faith

efforts to meet the goal.

X. AWARD OF CONTRACT Upon review and evaluation of all qualifying proposals, including any interviews that the SFRAA

may elect to require, the selection committee will identify the Proposer and Proposal that it

determines, in its absolute discretion, would best provide the Services and make its recommendation

to the SFRAA. The SFRAA will then take formal action on the recommendation. The SFRAA will inform the

selected Proposer that it has been selected, subject to final agreement on all terms and conditions of

the Concession Agreement. If the SFRAA and the selected Proposer are unable to agree on the

final terms of the Concession Agreement, the selected Proposer will be excused from further

consideration and the SFRAA may at its sole discretion, select another Proposer. Until the

Concession Agreement and all supporting ancillary documents have been approved & executed by

the SFRAA, the SFRAA shall have no obligations hereunder.

SFRAA will provide written notice of selection to the selected Proposer, and will include with the

written notice two copies of the Concession Agreement and a statement of required insurance

coverage Proposer must obtain.

26

EXHIBIT “A” FSD FACILITIES PARKING

27

EXHIBIT “B” PROPOSAL OFFER FORM

Request for Proposals Public Parking Concession Sioux Falls Regional Airport

Proposal Submitted By: ____________________________ (Firm Name) Submitted: _______________________________________ (Date) Acknowledgement is herby made of receipt of the following Addenda (identified by number) since issuance of the RFP. Addendum Number __________________ Date ____________

Addendum Number __________________ Date ____________

The Proposer hereby submits by enclosure the information required by the RFP and certifies that all

information so submitted is both accurate and complete.

The undersigned hereby submits a Financial Offer on the Concessions to be awarded by the Sioux

Falls Regional Airport Authority (SFRAA), as follows:

For the right to operate the Concessions at the Sioux Falls Regional Airport for a period of four (4) years

commencing on January 1, 2019 and ending December 31, 2022, the Proposer offers to pay

Concession Fees for each year contract Year in the amount of the greater of:

______________ percent (____%) of Gross Revenues in year 2019

______________ percent (____%) of Gross Revenues in year 2020

______________ percent (____%) of Gross Revenues in year 2021

______________ percent (____%) of Gross Revenues in year 2022

OR

A Minimum Annual Guarantee as described below.

The Minimum Annual Guarantee for the first Contract Year of the Concession Agreement is established

at Four Million Dollars ($4,000,000), and the remaining Contract Years of the Term, the Minimum

Annual Guarantee shall be 85% of the Concessionaire’s previous year’s Concession Fees, as that term

is defined in the Concession Agreement; however, in no event shall the Minimum Annual Guarantee for

28

any Contract Year of the Concession Agreement be less than Four Million Dollars ($4,000,000).

Seasonal Shuttle Service

Shuttle Service Hourly Rate ___________ in year 2019

Shuttle Service Hourly Rate ___________ in year 2020

Shuttle Service Hourly Rate ___________ in year 2021

Shuttle Service Hourly Rate ___________ in year 2022

Should the Proposer be awarded the Concessions, the following is the address for the mailing of

notices to be inserted in the Notice Section of the Concession Agreement:

________________________________________

________________________________________

________________________________________

The Proposer has enclosed either: (check applicable blank)

[____] A cashier’s check for $10,000.00; or

[____] A Bid Bond in the amount of $10,000.00.

It is understood that Proposer will be given written notice if awarded the Concessions based upon its Proposal. Such notification shall include two (2) copies of the Concession Agreement, together with a statement of the insurance coverage required by the SFRAA. Proposer agrees to fully execute and deliver two (2) copies of the Concession Agreement; a Performance and Payment Bond and amount required by the Concession Agreement, and certificates evidencing all insurance coverage required under the Concession Agreement, together with satisfactory proof of execution, within thirty (30) days of the date of mailing stated in the notice.

If any of the language or information in this Proposal Form conflicts with the RFP document, including any of the other documents furnished with the RFP, the language of the RFP or of the applicable document shall govern. The Proposer further agrees that, in the event the Concessions are awarded to it and it fails to comply with all of the requirements of the preceding paragraphs, as applicable, its Proposal Guaranty shall be forfeited to the SFRAA ___________________________ Company By: ________________________ Title _______________________ Date_______________________