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PRE-PROPOSAL CONFERENCE
CONCOURSE A INTERIM HOLD ROOM
PRESENTED BY PEGGI WATKINSRFP #201733381MARCH 9, 2017
• DEN Concessions Overview• DEN’s Brand and Customer-Focused Growth Strategy• DEN Design Principles• Procurement Process• Opportunity• Section I - Instructions to Proposers• ACDBE Participation at DEN• Prevailing Wage• Section II - General Information• Section III - Proposal Contents• Section IV - Required Forms• Questions
AGENDA
DEN CONCESSIONS OVERVIEW
DEN CONCESSIONS OVERVIEW
DEN Concession Program Vision:
“A Concession Program that is among the best in the world offering value, excitement, and wide range of culinary and retail experiences and services that evoke a strong sense of place reflecting the modern west spirit of Denver, Colorado and Rocky Mountain West.”
“In order to minimize the rentals, rates, fees and charges which Airline is obligated to pay under this agreement, DEN will promote and develop non-airline revenues at DEN in a manner consistent with that of a reasonable prudent DEN operator.”
DEN CONCESSIONS OVERVIEW
DEN Concession Program Goals:
• Respond to customer needs and provide value and great customer service in everything we do.
• Maximize our non-airline revenue consistent with our obligation to airline partners based on ongoing customer research and feedback.
• Maximize small and local business and DEN Concessions Disadvantaged Business Enterprise (ACDBE) opportunities through continued use of our direct and competitive leasing approach.
• Keep our program fresh and dynamic by introducing new concepts and services.
DEN CONCESSIONS OVERVIEW
DEN Concession Program Goals:
• Pursue creative concession design to entice and excite customers by merging architecture, design, graphics, and DEN and concession branding.
• Attract the best local, regional, and national food and beverage and retail concepts and tenants, and retain “best in class” concessions through the Premium Value Concessions (PVC) Program.
• Create and maintain a vibrant first-class concession program offering a range of quality food and beverage, retail and services in a branded environment, with particular emphasis on local, regional, national, and global brands.
PROJECTED 2016 REVENUE PERFORMANCE
• Food and Beverage • $236M in Gross Receipts• $1,859/Square Foot• $8.22/Enplanement
• Retail • $94M in Gross Receipts• $1,620/Square Foot• $3.26/Enplanement
• Services Airport-wide• $24M in Gross Receipts
DEN CONCESSIONS PROGRAM
Core Concession Program• Includes 187 Food, Retail, Service In-Line and Kiosk Locations
• Jepessen Terminal (25 concessions)
• Concourse A (39)
• Concourse B (77)
• Concourse C (46)
• F&B 67%, Retail 29%, Passenger Services 4%
Concourse Concession program is undersized given passenger volume
AIRPORT CONCESSION DBE PROGRAM
• ACDBE performance:$140.9 million (2016), or 36.80%
• $129M in Gross Receipts in 2015
• FAA Goal is 33%
• 52 ACDBE firms participating
BUILDING OUR BRANDFOR A CUSTOMER-FOCUSED GROWTH STRATEGY
STARTED WITH OUR STRATEGIC PLAN
Reposition DEN at the same level as leading international airports around the world with comparable customer service standards.
OVERALL STRATEGY
America’s favorite connecting hub,where the Rocky Mountains meet the world.
STRATEGIC VISION
SEVEN STRATEGIC PRIORITIES
• Winning the hearts of our customers• Inspiring our employees• Partnering for operational excellence• Investing for sustainability• Putting DIA on the world map• Maximizing our real estate• Excelling in financial performance
HOW WE WILL ACHIEVE OUR VISION
Through a passenger-focused growth strategy
we will win the hearts of our customers
by exceeding their travel expectations.
DEN BRANDING JOURNEY
IMMERSION AND DISCOVERY
CUSTOMER SEGMENTATION AND INSIGHTS
STRATEGY AND DESIGN
ENHANCING THE CUSTOMER EXPERIENCEBRAND ACTIVATION
• Assess best practices• Research to understand DEN essence
• Create DEN brand positioning
• Deploy strategic experiences• Prioritize our investment opportunities
• Live the brand forward
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2
3
4
5
• Traveler research • Spend analysis• Identify shared needs
EXPLORERSOptimists who love the novelty of travel, are energetic and open-minded about new experiences and like to share their thoughts and opinions with others through social platforms.
ELITESFrequent travelers that value status and are both career and family oriented. They are demanding of their travel experience and want access to options that fit a variety of travel occasions.
EXPERTSTravelers who think of travel as routine and see themselves as travel experts and advice-givers. They aren’t easily impressed nor fazed, and they desire a streamlined, productive airport experience.
ESCAPISTSWelcoming travel as a treat and break from everyday life, these infrequent but enthusiastic travelers approach air travel with wide-eyed excitement, an optimistic outlook, and an appreciative attitude.
ASPIRERSIn the chaotic airport environment, these travelers feel stressed by their real-life constraints – they struggle to balance personal interests, careers, and children – but tend to indulge and treat themselves beyond their usual budgets.
EARLY BIRDSInfrequent, anxious travelers who find the airport travel experience stressful and filled with unexpected hassles. Flying is a means to get from Point A to Point B, a process they dread and wish they could get through as quickly as possible.
MEET OUR PASSENGERS
NARROWING INAll of the passenger segments fly through our airport and spend with us, so we must think strategically about who to target.
FOCUS INVESTMENT VALUE
We cannot be all things to all people – if we don’t focus, the brand and the experience we’re trying to create will become generic and diluted, and we’ll never become ‘known’ for anything.
We don’t have the financial and human resources to invest to meet the needs of all segments, so we need to prioritize our investment opportunities.
Some segments are more valuable than others—from a financial and advocacy perspective—and an investment in these segments will yield better returns than others.
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Based on current growth rates and segment spend levels, Elites and Explorers represent the greatest incremental revenue opportunities for DEN.
1 – Spend includes per trip spend on shopping and retail, F&B, services, and parking2 – Based on dollars spent and how often the segment travels through DEN
Source: Prophet 2014 Qualitative Traveler Study
EXPLORERS ELITES EXPERTS ESCAPISTS ASPIRERS EARLY BIRDS
Average DEN Per-Trip Spend1 $20.90 $30.50 $15.60 $11.80 $12.20 $8.97
# Travelers to Replace 1 Elite2 3 -- 5 6 7 12
PASSENGER SEGMENT VALUES
EXPLORERS ELITES
EXPERTS ESCAPISTS
ASPIRERS
EARLY BIRDS
PRIORITY TARGETS FOR STRATEGY &
GROWTH
REVENUE TARGETS
OPPORTUNISTIC TARGETS
DEN’S TARGET CUSTOMERS
CUSTOMER-FOCUSED GROWTH STRATEGY
GET TO KNOW ELITES AND EXPLORERS
MEET WILLIAM HE’S AN ELITE
AGE: 44-years-old
YEARLY INCOME: $132,000
FAMILY: Married with two kids
FAVORITE BRANDS: Tom Ford, Apple, Whole Foods
MEET LUCY SHE’S AN EXPLORER
AGE: 39-years-old
YEARLY INCOME: $84,000
FAMILY: Married with one kid
FAVORITE BRANDS: Airbnb, Anthropologie, Lululemon
Lucy is head of public relations for CorePower Yoga. She enjoys life to the fullest. Balancing a family and a career keeps her busy but she’s never too busy to meet new people. She enjoys traveling for business and leisure and is always eager to share unique and memorable moments on Instagram.
William is an executive for a booming tech start-up. His career is important and so is his family. He travels for work about once a month and travels almost as often with his loved ones. William is brand-driven and values status. He likes access to options that fit his needs for different types of travel.
SHARED DRIVERS OF SATISFACTION
OUR BRAND PRINCIPLESACCESSIBLE URBANISM
NATURALLY DYNAMIC
ENJOYABLY PRODUCTIVE
MODERN WEST SPIRIT
Only DEN effortlessly balances your everyday needs with your desire for delight. We combine our sophisticated sensibility with authentic Colorado style by offering retail, dining and service options that are both locally rooted and globally relevant.
SOPHISTICATEDMODERNENERGETICSYSTEMATIC
DEN is nothing if not iconic. With the majestic Rocky Mountains towering in view, we invite the region’s renowned outdoor beauty inside our walls through open, clean, airy environments and engaging moments that reflect Colorado’s natural vibrancy.
DEN helps you fly through your “must-dos” to get to your “want-to-dos” at the airport. We pair carefully curated spaces designed for both productivity and pleasure with efficient operations that reduce stress, save time and bring humanity back to the airport experience.
No airport is like DEN because no place is like the Colorado region. We bring our area’s relaxed way to life at every corner: warm welcomes, casual comforts, friendly faces and an atmosphere that embraces our active lifestyle and innovative, independent mindset.
VIBRANTMOVEMENTTEXTUREFLEXIBLE
INTUITIVESIMPLEFORM + FUNCTIONUNEXPECTED
INNOVATIVEAPPROACHABLECONTEMPORARYNATURAL
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TO THE TRAVELER, WE ARE ALL DEN.
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THE DEN CREED
WE ARE NOT WE ARE
Followers Innovators – striving to be among the top within the aviation industry
Unengaged and uninvolved Actively creating an elevated traveler experience.
Compromising Inspired to do better and think bigger.
Unpredictable Reliably efficient and dedicated to delighting.
Just another airport We are an experience, a destination, a gateway connecting business, culture, and people.
Employees with an “8 to 5” mindset A team with a “24/7” commitment, driven by passion, purpose, and pride.
LIVE LIFE.TRAVEL WELL.
DEN helps the traveler feel more
empowered to make the most of their time
and keep their lives moving during their
travel journey by offering options that
balance work and play and a unique
experience that embraces both global
sophistication and the beauty and
spirit of the modern West.
DEN DESIGN PRINCIPLES
EXPERIENCE PRINCIPLE: ACCESSIBLE URBANISM
EXPERIENCE PRINCIPLE: NATURALLY DYNAMIC
EXPERIENCE PRINCIPLE: ENJOYABLY PRODUCTIVE
EXPERIENCE PRINCIPLE: MODERN WEST
PROCUREMENT PROCESS
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RATIONALE FOR PROCUREMENT
• Provide "Best Value" to City of Denver and citizens
• Fair, competitive transparent (open) process that delivers best value
• Ensure those involved know “What We Want"
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EXECUTIVE ORDER 8B
Denver owes a duty to its citizens to exercise strong financial stewardship.
It is the policy of the City and County of Denver to maintain a fair, open
and competitive market for the goods and services it purchases.
This is not only important in order to maintain the quality of key
government services and to minimize costs, but also sets a high ethical
standard and promotes greater transparency.
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PROCUREMENT PHASESPL
ANN
ING Define Scope of
Work, determine budget and goals for the opportunity
FORE
CAST Provides the
community with notice of upcoming opportunity and lead time. (0-90 Days)
ADVE
RTIS
EMEN
T Opens the solicitation to bidding and proposals. Documents become available to the public. (0-60 Days)
SELE
CTIO
N Evaluates proposals, recommends a selection, and begins negotiation in preparation of awarding the agreement. (10-150 Days)
EXEC
UTI
ON Approves and
executes the agreement through obtaining signatures of all parties; distributes agreement to 2nd
Party. (10-28 Days)
PROCUREMENT PROCESS (20 – 328 DAYS)
THE OPPORTUNITY
CONCOURSE A INTERIM HOLD ROOM
KEY BUSINESS TERMS
EXHIBIT LOCATIONS A&B
General Conditions for the National or Regional Branded Multi-Unit Quick Service Restaurant with Bar • One concept must be a Farm to Table Market with Soup/Salad/Sandwich. • Second concept must be one of the following three categories; Made to Order BBQ, Made to Order Pizza/Italian,
or Made to Order Mexican. • All carry‐out menu items must be represented on and relevant to the restaurant’s menu and must be packaged in
high‐quality, easy‐to‐carry packaging that is consistent with City’s sustainability objectives. • Menu offerings should be of high quality and offer good value to the customers. Vegetarian, Kosher, Halal, gluten-free
and other dietary considerations should be included in menu. • Portion sizes should support good health. • Portion‐appropriate menu items for children should be available. • There should be at least two vegetarian options available other than a salad offering. • City encourages the use of local agricultural and food products when available. • City is developing a Sustainability Master Plan and encourages Proposer to incorporate sustainability practices
in its facility design and operations that are consistent with City’s objectives. • The space will not have the ability to be exhausted therefore all cooking must occur via alternative approved
methods or from an existing prep area. • Proposer is encouraged to obtain a Tavern Class Liquor License from the City and County of Denver Liquor
Licensing Division.
EXHIBIT LOCATION C
General Conditions for National or Regional Branded Travel Convenience Retail Package • All carry‐out menu items must be represented on and relevant to the restaurant’s menu and must be packaged in
high‐quality, easy‐to‐carry packaging that is consistent with City’s sustainability objectives. • Merchandise offerings should be of high quality and offer good value to the customers. • Foods should include Vegetarian, Kosher, Halal, gluten-free and other dietary considerations should be included in
menu. • Portion sizes should support good health. • Portion‐appropriate menu items for children should be available. • There should be at least two vegetarian options available other than a salad offering. • City encourages the use of local agricultural and food products when available. • City is developing a Sustainability Master Plan and encourages Proposer to incorporate sustainability practices in its
facility design and operations that are consistent with City’s objectives.
EXHIBIT LOCATION D
General Conditions for National or Regional Branded Bar with Small Plate Food package • Required Opening Date for Concept D will coincide with the opening date for the Phase 2 portion of the A Concourse
Interim Gate Facility which is projected to be 18 months after November 1, 2017. Possession of the concept location is expected to occur no less than 3 months prior to the Phase 2 opening date.
• All carry‐out menu items must be represented on and relevant to the restaurant’s menu and must be packaged in high‐quality, easy‐to‐carry packaging that is consistent with City’s sustainability objectives.
• Menu offerings should be of high quality and offer good value to the customers. Vegetarian, Kosher, Halal, gluten-free and other dietary considerations should be included in menu.
• Portion sizes should support good health. • Portion‐appropriate menu items for children should be available. • There should be at least two vegetarian options available other than a salad offering. • City encourages the use of local agricultural and food products when available. • City is developing a Sustainability Master Plan and encourages Proposer to incorporate sustainability practices in its
facility design and operations that are consistent with City’s objectives. • Concession space will not have the ability to be exhausted therefore all cooking must occur via alternative approved
methods or from an existing prep area. • Proposer is encouraged to obtain a Tavern Class Liquor License from the City and County of Denver Liquor Licensing
Division.
MINIMUM QUALIFICATIONS
DISCLOSURES
• Expedited Competitive Concessions Package Selection Process Requirement
• Term Related to Capital Investment Requirements
• Project Design / Construction Criteria Requirements
• Colorado Liquor License Requirement
SECTION I INSTRUCTIONS TO PROPOSERS
Before Submitting to PowerPoint ReviewSECTION I – INSTRUCTIONS TO PROPOSERS• Proposal requirements
• Proposal surety ($10,000)
• Confidentiality
• Due Diligence
• Brands/Franchise Licensing
• Privilege Fee
• Minimum Annual Privilege Fee (MAPF) and Percentage Fee
• Proposals submitted outside the set Percentage Fee Rate are non responsive
Before Submitting to PowerPoint ReviewSECTION I – INSTRUCTIONS TO PROPOSERS
• Minimum service and operating requirements• Service standards and staff training• Hours of operation (16 hours per day, every day of the year)• Management requirements• Deliveries• Maintenance structure and requirements• Rules and regulations• Liquidated damages • Surety
• “Value” Pricing
• 110% of street pricing
Before Submitting to PowerPoint ReviewSECTION I – INSTRUCTIONS TO PROPOSERS
• Award agreement(s)• Agreements must be signed and returned within 14 calendar days• Surety• Certificate of Insurance
• Fees• Badging• Licenses
Before Submitting to PowerPoint ReviewSECTION I – INSTRUCTIONS TO PROPOSERS
Insurance RequirementsCommercial comprehensive general liability $ 1,000,000 (each occurrence)
General aggregate limit $ 2,000,000
Operations aggregate limit $ 2,000,000
Liquor Liability $ 2,000,000
Personal & advertising injury $ 1,000,000
Fire damage legal (any one fire) $ 300,000
Worker’s compensation Statutory requirements
Business auto liability $ 1,000,000 (combined single limit)
Umbrella liability – area access $ 1,000,000 (non-airside)$ 9,000,000 (airside)
Network security & privacy liability $ 1,000,000 (per occurrence)$ 1,000,000 (aggregate covering claims)
Commercial Crime $ 1,000,000 (each occurrence)
Business Interruption Varies by concessionaire, must cover for direct and indirect loss of earnings.
Before Submitting to PowerPoint ReviewSECTION I – INSTRUCTIONS TO PROPOSERS• Process Integrity
• Section 1 (R) – Confidential Process• Inappropriate contact with City Officials/Evaluation Panel• Ethics and Financial Disclosure
• Questions and Comments• Must be submitted to the following address:
• [email protected] the RFP title and number in the subject line
• Guidelines and Policies• Guidelines and Policies applicable to this opportunity are found at:
• http://business.flydenver.com/bizops/proprfp.asp | Airport Guidelines and Policies | Denver Municipal Code
SECTION I – INSTRUCTIONS TO PROPOSERS
ACDBE PARTICIPATION AT DEN
Please refer to:49 C.F.R., Part 23
Before Submitting to PowerPoint ReviewACDBE GOALS
• ACDBE Participation Goal minimum of 33%
• MWBE Participation Goal minimum of 25%
***Goals are set as a percentage of gross concessions revenue,
and participation of any kind is calculated as such***
Before Submitting to PowerPoint ReviewACDBE COMPLIANCE
• Participation goals can be met by:
• Concession owner/operator ACDBE certified
• Non-certified owner obtaining goods and/or services from ACDBE certified firms
• Letters of Intent (LOI) with description and annual $ amount of goods/services must be submitted
• Agreements entered into by two or more firms• Joint ventures• Management agreements• Subleases, etc.
***ACDBEs are encouraged to work together to operate***
Before Submitting to PowerPoint ReviewACDBE COMPLIANCE
• Joint Ventures
For purposes of ACDBE participation, joint venture means an association of anACDBE firm and one or more other firms to carry out a single, for-profit businessenterprise, for which the parties combine their property, capital, efforts, skillsand knowledge, and in which the ACDBE is responsible for a distinct, clearlydefined portion of the work of the contract and whose shares in the capitalcontribution, control, management, risks, and profits of the joint venture arecommensurate with its ownership interest.
The Division of Small Business Opportunity considers any entity that iscomprised of an ACDBE and one or more other firms to be a joint venture even ifthe participants do not identify elsewhere as a joint venture. Joint ventureentitles are not certified as ACDBEs.
Before Submitting to PowerPoint ReviewACDBE COMPLIANCE• Joint Ventures used for credit must include:
• Joint Venture Affidavit• Joint Venture Eligibility Form• Joint Venture Agreement, Operating Agreement or other formation/controlling
documents• Must be signed and effective at time of submission• Control• Financial (capital contributions)• Proportion of risk/reward
• Detailed list of responsibilities for all partners
****Submit draft early for review.**** Changes can be made until March 31, 2017
**Refer to FAA JV Guidance**
ACDBE COMPLIANCE
• Special Arrangements
• Management Agreements
• Detailed description of duties to be performed by the ACDBE
• Compensation will be calculated as a percentage of Gross Receipts
• Signed agreement, effective at time of proposal, must be submitted with proposal
• Mixed Participation
• Mix and match from any/all categories
• ACDBEs should consider proposing together
Before Submitting to PowerPoint ReviewCERTIFICATION FOR COUNTING
• Must be ACDBE certified in the State of Colorado by proposal due date by either CDOT or the City & County of Denver (out of state firms must be certified in home state prior to applying for certification in CO)
• Certification application must be complete and evidenced by acknowledgment of DSBO staff by proposal due date, March 31, 2017
• Certification must be updated annually
• Participation counts through end of the original contract term even if the ACDBE firm graduates from program during the original term
• Participation ceases to count if revoked or de-certified for any other reason during the term of the contract
GOOD FAITH EFFORTS
• To be used only when all efforts to obtain full ACDBE participation have failed
• ‘Good Faith Effort Checklist’ (part of the ACDBE Commitment Form) must be completed and submitted with supporting documentation and evidence of all efforts made to obtain full participation
• Must work with DSBO office during process
DUE DATES
DUE WITH/AT TIME OF PROPOSAL:• ACDBE LOIs for all ACDBEs• DSBO acknowledgement of completed certification application
DUE BY MARCH 31, 2017:• ACDBE packet due March 31, 2017• ACDBE Commitment Form• ACDBE certification and letter• JV Package (if operating as such)• Fully executed agreement• JV Affidavit• JV Eligibility Form• Detailed list of responsibilities for each party• Fully executed management agreement (if applicable)
When should firms apply for certification?
When should I start looking for an ACDBE partner and/or supplier?
NOW!
Before Submitting to PowerPoint ReviewDSBO REFERENCES
http://business.flydenver.com/bizops/smallBus.asp
ACDBE Program Administrator ACDBE CertificationAmber Smith Mark White(303) 342-4358 (303) [email protected] [email protected]
49 C.F.R., Part 23:http://ecfr.gpoaccess.gov/cgi/t/text/text-
idx?c=ecfr&sid=b880432dedbe5f0d12a2409fe5535503&tpl=/ecfrbrowse/Title49/49cfr23_main_02.tpl
JV Guidance:
http://www.osdbu.dot.gov/documents/pdf/dbe/JointVentureGuidance-final.pdf
Before Submitting to PowerPoint ReviewTENANT FINISH
• MWBE Requirements
• 25% MWBE goal, a portion of which must be obtained through professional design
• MWBE Commitment Form must be submitted with proposal
• Successful proposer must contact DSBO within 15 days of notification to discuss MWBE requirements
PREVAILING WAGE Valerie Ramirez | Prevailing Wage Investigator Auditor's Office | Prevailing Wage Division303-342-2738 – Mon, Wed & Thurs720-913-5062 – [email protected]://www.denvergov.org/content/denvergov/en/denver-auditor.html
SECTION IIGENERAL INFORMATION
Before Submitting to PowerPoint ReviewSECTION II – GENERAL INFORMATION
• Evaluation of Proposals - Two step Process
1. Minimum Requirements and Completeness of Proposals verified
2. Evaluation Committee
• Short List determination made, if necessary
• Interviews, if necessary
• Recommendation to CEO
SECTION II – GENERAL INFORMATION
SECTION IIIPROPOSAL CONTENTS
Before Submitting to PowerPoint ReviewSECTION III - PROPOSAL CONTENTS
• Proposal must be organized in the following order:
• Cover letter
• Customer Experience Initiative
• Strength of the Proposed Concept and Design
• Experience and Qualifications
• Operations and Management Plan
• Business Plan
• Required forms
SECTION IVREQUIRED FORMS
Before Submitting to PowerPoint ReviewSECTION IV – REQUIRED FORMS• Proposal Checklist and Press Release Information• Proposer Questionnaire• ACDBE LOI and MWBE Commitment Form• Percentage Fee Rate• Brand Portfolio Affidavit• Evidence of Licensing or Franchising Authority• Capital Investments and Funding• Funding Source Sample Letter• Proposal Surety• Addenda Acknowledgement• Proposal Documents• Sample Concession Agreement and Concession Policy• Financial Pro Forma• Political Contributions and/or Donations Disclosure Certificate• Diversity and Inclusivity in City Solicitations• Certificate of Good Standing with the State of Colorado
All questions or communications related to this RFP must be submitted in writing and emailed to:
include the RFP name and number in the email subject line:
CONCOURSE A INTERIM HOLD ROOMRFP#: 201733381
QUESTIONS?
Before Submitting to PowerPoint ReviewPROPOSAL SUBMITTAL DATE, TIME AND PLACE
Proposals must be received and time stamped by 2:00 P.M. MST on FRIDAY, MARCH 31, 2017 to:
Peggi WatkinsDenver International Airport8500 Peña BoulevardAirport Office Building, Suite 8810Denver, Colorado 80249-6340
• One (1) original proposal, including required forms and financial information, and
• Three (3) USB flash drives containing:• An electronic copy of the Proposal consolidated into one PDF document,
and• An electronic version of the pro forma
http:business.flydenver.com/bizops/concessions.asp
QUESTIONS / CONTACT INFORMATION
Questions due by 2:00 PM MST March 20, 2017
Send your questions directly to: [email protected] the RFP name and number in the email subject line
RFP Q&A:
It is the Proposer’s responsibility to check for posted questions and answers at: http://business.flydenver.com/bizops/proprfp.asp
DSBO Contact Information
ACDBE Program AdministratorAmber Smith(303) [email protected]
ACDBE CertificationMark White(303) [email protected]
