Department of Airports Cynthia A. Nichol Director of Airports County of Sacramento County Executive Navdeep S. Gill 6900 Airport Boulevard • Sacramento, California 95837 • phone (916) 874-0719 • fax (916) 874-0636 • www.smf.aero October 23, 2018 Posted on SMF Website and Sent Via E-Mail To: Prospective Proposers From: Jennifer Simkins Airport Economic Development Specialist Sacramento County Department of Airports (Department) Subject: Addendum #2 – Automated Concessions Agreement Request For Proposals - Sacramento International Airport Addendum #2 to the Automated Concessions Agreement Request for Proposal (RFP) at Sacramento International Airport includes answers to questions received prior to and by the deadline as well as corrections and clarifications to the RFP. 1. Corrections and Clarifications to the RFP and Agreement a. The timeline is revised as follows: Revised Timeline: Mandatory Pre-Proposal Meeting: October 16, 2018 Questions Due by: October 18, 2018 at 2:00 p.m. PST Addenda Issued (if necessary): October 23, 2018 Proposals Due: November 13, 2018 by 2:00 p.m. PST Panel Evaluation of Proposals: Week of November 26 th Anticipated Board of Supervisors review/approval of selected proposer(s): January 29, 2019 b. Right to Negotiate on Page 17, Part 2, Section A of the RFP is revised as follows: Proposer acknowledges that the Selection Committee and the Department retain the right to negotiate any terms and/or conditions of the Agreement and to negotiate and recommend award of Automated Concessions in locations that differ from locations originally proposed prior to execution of the Agreement by the Board or the Director of Airports. The County reserves the right to negotiate Agreements with other companies outside of the RFP process, even if such companies did not participate in the RFP process. c. Proposal Submittal on Page 5, Part 1, Section B of the RFP is revised as follows: Submit one (1) clearly marked “Original” and four (4) copies, as well as an electronic version (flash drive or CD) of the proposal in a sealed envelope at the location and by the deadline stated on page 3.
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County of Sacramento 6900 Airport Boulevard • Sacramento, California 95837 • phone (916) 874-0719 • fax (916) 874-0636 • d. Agreement Section 2.03 Term is revised as follows:
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Department of Airports Cynthia A. Nichol Director of Airports
October 23, 2018 Posted on SMF Website and Sent Via E-Mail
To: Prospective Proposers
From: Jennifer Simkins
Airport Economic Development Specialist Sacramento County Department of Airports (Department)
Subject: Addendum #2 – Automated Concessions Agreement Request For Proposals - Sacramento International Airport
Addendum #2 to the Automated Concessions Agreement Request for Proposal (RFP) at Sacramento International Airport includes answers to questions received prior to and by the
deadline as well as corrections and clarifications to the RFP. 1. Corrections and Clarifications to the RFP and Agreement
a. The timeline is revised as follows: Revised Timeline:
Mandatory Pre-Proposal Meeting: October 16, 2018 Questions Due by: October 18, 2018 at 2:00 p.m. PST Addenda Issued (if necessary): October 23, 2018
Proposals Due: November 13, 2018 by 2:00 p.m. PST Panel Evaluation of Proposals: Week of November 26th
Anticipated Board of Supervisors review/approval of selected proposer(s): January 29, 2019
b. Right to Negotiate on Page 17, Part 2, Section A of the RFP is revised as follows:
Proposer acknowledges that the Selection Committee and the Department retain the right to negotiate any terms and/or conditions of the Agreement and to
negotiate and recommend award of Automated Concessions in locations that differ from locations originally proposed prior to execution of the Agreement by the Board or the Director of Airports. The County reserves the right to negotiate
Agreements with other companies outside of the RFP process, even if such companies did not participate in the RFP process.
c. Proposal Submittal on Page 5, Part 1, Section B of the RFP is revised as follows:
Submit one (1) clearly marked “Original” and four (4) copies, as well as an electronic version (flash drive or CD) of the proposal in a sealed envelope at
the location and by the deadline stated on page 3.
d. Agreement Section 2.03 Term is revised as follows: “The term of this Agreement shall be for a period of five (5) Lease Years
commencing on XXXXX, and terminating on XXXXX, hereinafter “Term” or “term”.” (Remainder of Section in Draft Agreement to be eliminated due to conflict with
Section 3.21)
e. Agreement Section 3.21 Early Termination by Concessionaire is revised to add: “e. Should Concessionaire experience a loss of brand rights, Concessionaire shall make every effort to procure a new brand or concept. In the event making such
efforts have failed, Early Termination may apply.
2. Questions received by the October 18, 2018 2:00 p.m. deadline and answers:
a. Question: Is there a requirement for Disadvantage Business Enterprise (DBE)
participation and is there a goal for each project?
Answer: No, DBE participation is not required and while the Department has an
overall goal of 7.9% participation, this goal is not required on each project.
b. Question: Why is there not a mandatory DBE goal?
Answer: The Department’s goal, approved by the FAA, is race-neutral and
therefore it is not required. The Airport is currently preparing the three-year goal.
The 2018 ACDBE goal was seven and nine-tenths percent (7.9%) of gross sales.
The Airport has not assigned an ACDBE requirement to each concession
agreement but encourages ACDBE participation. ACDBE participation is reported
to the FAA annually.
c. Question: Is there a preference for having an ACDBE participation in the
agreement and if so will that reflect in the evaluation of the proposals (Under Qualifications and experience?)? Answer: While the Department encourages all businesses certified as ACDBE to
propose, there is no preferential treatment in the evaluation of the proposals.
d. Question: On the schematics of the terminals and other areas with vending
machines it shows ATM's. Are ATM's part of this bid?
Answer: ATM’s are not part of this RFP. Locations identified for point of
reference only.
e. Question: What are the Airport’s current hours of operation?
Answer: Airport's hours of operation:
The public areas of Terminal A and Terminal B are open 24 hours a day. The concourses close 30 minutes after the last flight has landed. Although this
changes depending on flight schedules, it is currently between midnight and 1 a.m.
TSA checkpoint's hours of operation: The TSA security checkpoints open at 4 a.m. daily and close at 12:30 a.m.,
f. Question: Is it acceptable that the machines accept credit cards only?
Answer: Yes.
g. Question: Is high end candy allowed for the dessert locations?
Answer: Yes. Please keep in mind that the Department is interested in
receiving proposals for concepts and locations that the proposer deems to be the
best fit. All concepts proposed will be evaluated by the committee.
h. Question: Is there a required timeline for changing out product offerings?
Answer: Per the Agreement, Section 2.15, Concessionaire shall provide a
written request to the Director for each location no later than 30 calendar days
prior to the proposed change-out date for approval. Please include in your
proposal the anticipated/proposed timeline for the change out of products.
i. Question: Can product types be changed?
Answer: Per the Agreement, Section 2.12, all products must be approved by
the Director as to the type, quality and price throughout the term of the
Agreement and product changes must be submitted in written request per the
terms in Section 2.15.
j. Question: 2.04 B Percentage Rent (p.7) – Could the following language be added
to this section? “If the concepts are changed at either the County or
Concessionaire’s request, the Director shall approve the Percentage Rent for the
new concept.”
Answer: The proposed percentage rent for all concepts should be referenced in
the written request to add or change product types or concepts.
k. Question: Can you provide the revenue from the vending concessions and the
market share for each brand?
Answer: See Attachment 1.
l. Question: Please provide historical sales by location and concept – ideally you
can show recent sales by month for the past year. Answer: See Attachment 1.
m. Question: Please provide the current revenue share (RENT %) by concept or
category from the current operators.
Answer: See Attachment 1.
n. Question: Is there a minimum rent structure that the airport is looking for? Answer: The Department expects proposers to have performed research of other airports to determine industry standards for percentage fees.
ee. Question: Can you provide the acceptable delivery schedule?
Answer: Per Section 3.19 of the Agreement, Concessionaire will provide to the
Director the arrangements for all locations and it will be reviewed for approval.
Should the Director issue schedules, it will be provided at that time.
ff. Question: For employee breakrooms, can we please get the number of employees accessing breakrooms?
Answer: While there is no specific data available pertaining to employees accessing break rooms, it is estimated that County employee break rooms can be accessed by approximately 20-50 employees per day and Concession break rooms
can be accessed by approximately 40-100 employees per day.
gg. Question: Please confirm the date the FuelRod agreement expires Answer: The FuelRod Agreement expired July 31, 2018 and is currently in hold over.
hh. Question: Although we are two independent entities, for this RFP, if the award is
successful, we may form a Joint Venture for its operation. How then should we answer the Corporation Statement and the Joint Venture Statement as we would only create the Joint Venture if awarded?
Answer: Your answers should be complete, accurate and true to your situation at the time of proposing.
ii. Question: According to Agreement Article 1 Definitions of Gross Revenues, 1.09
d., if our current electronics concept receives fixed marketing funds by the various
electronics brands that are being sold inside the unit, is our concept required then to declare and remit those revenues in a pro-rata format to the airport?
Answer: Fixed marketing revenues should be included in Gross Revenue Receipts since it is a revenue source for the proposer.
jj. Question: Is there an age limit on how OLD the equipment may be? For example, is equipment over 7 years old from date of manufacture permitted for installation?
Answer: The year, make, model and appearance must meet the Directors approval. Machines must be newer than 7 years during the entire term of Agreement.
kk. Question: Agreement Section 2.01 General Scope of Services (p.6): Requires
24/7 being open, no downtime for maintenance, restocking and repair. Can this
language be modified to allow for reasonable downtime to allow for required
maintenance and replenishment?
Answer: Section 2.01 of the Automated Concession Agreement refers to the
Concessionaire operating their concession continuously, 24/7 through the term.
Section 2.09 requires Concessionaire to state what their proposed maintenance
schedule is within their proposal, therefore the section does not require