Institute of Concessions | Cohort 2 Mock RFP Practice

Request For Proposal (RFP)

#2024-09

High Performance International Airport (HPI)

Food/Beverage/Retail
Concessions Opportunities

RFP Issued: June 7, 2024

Questions Due: June 14, 2024
Proposals Due: June 20, 2024
Oral Presentations: June 25, 2024
Table of Contents

Introduction and Background ..................................................................................................................................... 1

Information on Available Locations ......................................................................................................................... 2
ACDBE Goals and Requirements ............................................................................................................................ 4
Proposal Process and Instructions .......................................................................................................................... 5
Oral Presentation Preparation ................................................................................................................................... 6
Evaluation Criteria .......................................................................................................................................................... 6
Required Forms............................................................................................................................................................... 7
Contract Terms and Provisions.............................................................................................................................. 11
Exhibit 1 – Terminal Map........................................................................................................................................... 14
Introduction and Background
Airport Profile
High Performance International Airport (HPI) has been serving the New York/New Jersey area
for over 50 years. It is composed of five terminals which serve local, regional, and international
passengers. It boasts over 13 million annual enplanements, with an average of 2.6 million
annual enplanements per terminal. One-third of enplanements are for international destinations;
one-third for origin-to-destination domestic destinations and one-third represent connecting
flights. Enplanement and sales have increased 6% annually over the past 2 years and are
forecasted to be nearly 15 million total passengers by 2025.

Airport Concessions Objectives

HPI’s concessions program seeks to build on its successful history of satisfying passenger
needs by curating concessions offerings that are different from what may have been traditionally
contemplated by passengers; reflective of ever-changing passenger diversity and
demographics.

Passenger Profiles
Based on passenger surveys, 63% of passengers are US nationals; with 20% of those residing
in the New York City region. The majority of origin-to-destination passengers arrive at the
airport between one and two hours prior to their flight and the majority of connecting passengers
have between 45 and 60 minutes between flights. The average annual income of the majority
of the passengers is $200,000.

Enplanements per Terminal

The following table provides the most current annual enplanements and airlines per terminal.

Table 1 – Enplanements Per Terminal

Terminal 1 2 3 4 5
Airlines Jet Blue Alaska Air Canda Air Jamaica British Air
Spirit American Hawaiian Air Aero Mexico Korean Air
Southwest United Lufthansa Caribbean Air KLM
Frontier Delta Cape Air Aviana Brazil Aero Lingus
Argentinas
Enplanements 2.8M 2.9M 2M 3.2M 2.4M

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Information on Available Locations
Each team can propose on one of the concepts described below.

Table 2 – Available Locations

Terminal Concept/Use Clause Square Projected Term Minimum Percent Minimum
Footage Annual Length Annual Rent Investment
Sales Years Guarantee Requirement
(MAG) for Design
and
Construction
1/#102 Quick Service Restaurant 1,000 $3 M 10 $250,000 • 15% - $900/sq ft
A/Coffee, tea, and adjacent items over $1M
such as smoothies, baked goods, • 18% -
sandwiches, salads, and pre- over
packaged snack foods; branded $1.5M
apparel; packaged coffee and
tea; and other related item
2/#229 Quick Service Restaurant B/ 1,300 $4M 10 $350,000 • 18% - over $900/sq ft
Grab-and-Go market featuring $2.5M
local and regional brands and • 20% -
products over
$3.7M
3/#312 Restaurant Bar A/Destination 2,200 $7.5 M 10 $350,000 • 20% - $1,000/sq ft
restaurant and bar with local and $1.7M
regional flavors • 22% -
over $3M
4/#403 Restaurant Bar B/ Locally- 3,600 $5 M 10 $650,000 • 20% $1,000/sq ft
themed sports or ethnic-inspired over
location $1.7M
• 22% over
$3M
5/#516 Specialty Retail Merchandise/ 750 $2.5M 7 $250,000 • 15% over $1,000/sq ft
Destination NYC store featuring $1.4M

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 Terminal Concept/Use Clause Square Projected Term Minimum Percent Minimum
Footage Annual Length Annual Rent Investment
Sales Years Guarantee Requirement
(MAG) for Design
and
Construction
locally-curated and culturally- • 18% over
inspired packaged food and retail $1.9M
merchandise offerings, along with
other travel essentials

Additional Information on Minimum Annual Guarantee, Percent Rent, and Minimum Investment Requirements
The information above represents the Airport’s expectations. Higher or lower amounts for minimum annual guarantee, percent rent,
and/or minimum investment can be proposed but must be justified.

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ACDBE Goals and Requirements
NOTE: All participants in the Institute of Concessions that have started their Airport Concession
Disadvantaged Business Enterprise (ACDBE) application should present themselves in this
solicitation as a certified ACDBE. Please note that for an actual solicitation, you must be fully
certified at the time of proposal submission to make this assertion.

Concessions agreements are subject to the requirements of the U.S. Department of

Transportation's ACDBE regulations, 49 CFR part 23. The concessionaire or contractor agrees
that it will not discriminate against any business owner because of the owner's race, color,
national origin, or sex in connection with the award or performance of any concession
agreement, management contract, or subcontract, purchase or lease agreement, or other
agreement covered by 49 CFR part 23.

The concessionaire or contractor agrees to include the above statements in any subsequent
concession agreement or contract covered by 49 CFR part 23, that it enters and cause those
businesses to similarly include the statements in further agreements.

Credit towards established ACDBE goals will be given in the following manners, so long as it
can be demonstrated that the ACDBE participation equals the efforts, risks, and rewards of the
percentage proposed:
• A joint venture between one or more ACDBEs and a non-ACDBE
• A joint venture between ACDBEs
• A license or franchise agreement with one or more ACDBEs
• A license or franchise agreement between ACDBE(s) and a brand or licensee

The following ACDBE goals have been established:

Table 2 – ACDBE Goals

Terminal/Space # ACDBE
Goal
1/#102 25%
2/#229 25%
3/#312 20%
4/#403 20%
5/#516 30%

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Proposal Process and Instructions
Table 3 – Proposal Dates
Activity Due
Date
Release Request for Proposals (RFP) to 6/7/24
prospective bidders
Pre-proposal meeting 6/13/24
Final date to submit questions on the RFP 6/14/24
Responses to submitted questions 6/17/24
Written proposals due 6/20/24
Oral presentations 6/25/24
Evaluations provided to respondents 7/10/24

Questions Regarding the RFP

All questions related to the RFP must be submitted via email to
clejeune@lejeuneandassociates.com by close of business June 14, 2024. Answers to
questions will be provided by June 17, 2024 to all parties expressing an interest in the RFP.

Proposal Development
Each team is to provide a proposal for ONE concept following the format and instructions below.
The total page limit of each proposal is 10 pages for Items 1 through 6. There is no page limit
for the Attachments.

1. Signed Proposer Information Form (Use Form 1 provided in the Required Forms section
of the RFP)
2. Concept/Brands/Offerings for Identified Space
a. High-level overview of the concept
b. Details on:
i. Menu items and/or merchandise offered
ii. Look and feel of the space and/or design
iii. Furniture, fixtures, and equipment and placement
3. Customer Service/Management/Operations Plan
a. Staffing/recruitment/training approach
b. Customer loyalty program
c. Innovative use of technology/touchless service
d. Approach to promotional/seasonal offerings
4. Experience of the Team
a. Overall organizational structure
b. Roles of each firm
c. Management team operational experience and success
5. ACDBE Participation (Use Form 2 provided in the Required Forms section of the RFP)
a. ACDBE participants and the nature and percentage of their participation
b. If the established goal cannot be attained, the good faith efforts used to reach the
stated goal

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 6. Financial Proposal (Use Form 3 provided in the Required Forms section of the RFP)
a. Acceptance of Minimum Annual Guarantee (MAG) and Percent Rent State in
Table 1, OR
b. Best and final proposed MAG and Percent Rent

Required Proposal Attachments

a. One creative representation, such as
o Menu, consisting of all day parts (breakfast, lunch, dinner)
o Merchandizing plan/Branding
o Concept Design/Layout/Furnishings/Overall Feel and Sense of Place
o Innovative/Automated Operational Characteristics
b. Short bios of each firm on the team
c. Oral presentation PowerPoint

Oral Presentation Preparation

Each team is to develop a PowerPoint presentation to be presented on June 25, 2024. The
presentation should provide a summary of the team’s technical proposal and should not include
any elements of the financial proposal. A copy of the powerpoint presentation is to be included
in the proposal as noted above and does not count towards the page limit.

Each team’s oral presentation is limited to 30 minutes, which will be followed by up to 15

minutes of questions from the evaluation panel.

Evaluation Criteria
Criteria Points
Signed Proposer Information Form (complete and sign Form 1) N/A – completed and signed
form required
Concept/Brands/Offerings for Identified Space 25
Customer Service/ Management/Operations Plan 20
Experience of the Team 20
Financial Proposal (complete and sign Form 3) 10
Creative Representation 15
Oral Presentation 10
ACDBE Participation (complete and sign Form 2) N/A – requirement to meet the
stated ACDBE goal or provide
documentation of good faith
efforts to meet it

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Required Forms

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 Form 1 - Proposer Information Form
Solicitation

Number RFP #2024-09

Title Concessions For High Performance International Airport (HPI)

Offer

Firm Name

Name and Title of

Primary Point of
Contact (POC)
POC Phone
Number and Email
Space Select Only One
Terminal 1/#102
Terminal 2/#229
Terminal 3/#312
Terminal 4/#403
Terminal 5/ #516

Name of Firms
Included in Offer

Name and Title of

Authorized
Signatory
Signature

Date

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 Form 2 - ACDBE Information Form
Solicitation

Number RFP #2024-09

Title Concessions For High Performance International Airport (HPI)

Goal

Number Select One

25% ACDBE Goal Terminal 1/#102
25% ACDBE Goal Terminal 2/#229
20% ACDBE Goal Terminal 3/#312
20% ACDBE Goal Terminal 4/#403
30% ACDBE Goal Terminal 5/#516

Total Amount (%)

of ACDBE
Proposed
Details of ACDBE Name of ACDBE Role % of
Participation Participation

If Total ACDBE Percentage is Less Than the Applicable Goal, Complete This Section

Efforts taken to
attain the goal

Name and Title of

Authorized
Signatory
Signature/Date

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 Form 3 - Financial Proposal
Solicitation

Number RFP #2024-09

Title Concessions For High Performance International Airport (HPI)

Complete either Acknowledgement of Proposal Financial Requirements or Best and Final

Alternative Financial Proposal
Acknowledgement of Proposal Financial Requirements

Financial Offer Select One

Terminal 1#102: MAG = $250,000; Percent Rent = 15% over $1M and
18% over $1.5M; Investment = $900/sq ft
Terminal 2/#229: MAG = $350,000; Percent Rent = 18% over $2.5M
and 20% over $3.7M; Investment = $900/sq ft
Terminal 3/#312: MAG = $350,000; Percent Rent = 20% from $1.7M
and 22% over $3M; Investment = $1,000/sq ft
Terminal 4/#403: MAG = $650,000; Percent Rent = 20% over $1.7M
and 22% over $3M; Investment = $1,000/sq ft
Terminal 5/#516: MAG = $250,000; Percent Rent = 15% over $1.4M
and 18% over $1.9M; Investment = $1,000/sq ft

Best and Final Alternative Financial Proposal

Space Select One

Terminal 1/#102
Terminal 2/#229
Terminal 3/#312
Terminal 4/#403
Terminal 5/#516

Financial Offer Element Proposed Best Justification

and Final Offer
Minimum Annual
Guarantee
Percentage Rent
Capital Investment
(per square foot)

Name and Title of

Authorized
Signatory
Signature/Date

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Contract Terms and Provisions
The following are standard terms and conditions applicable to all available locations. These
terms and conditions should be reviewed carefully in conjunction with concepts proposed and
acceptance of, or revised proposal for, each respondent’s financial proposal.

RENT
COMMENCEMENT: Rent shall commence the earlier of Earlier of 1) 180 days following
possession (triggered by full execution of the lease but not to occur before
final approval of construction documents as long as tenant has reasonably
met deadlines and submissions) or 2) tenant open for business

COMMON Tenant shall pay to the Airport, as an annual charge, Tenant’s pro rata share
FACILITIES of the Airport’s operating costs. The FY2024 estimated charges, at 100%
CHARGES: occupancy, are listed below. These rates are adjusted annually.

Common Area Maintenance (CAM): $50.00/psf annually

Inclusive of:
Customer Service Charge
Trash Removal
Distribution & Delivery
Food court CAM ($15.00 psf. Non-Food Court tenants do not have
to pay this)

REAL ESTATE Tenant shall pay its pro rata share of real estate taxes payable by the
TAXES: Airport.

AIRPORT
ADVERTISING/ The contribution to the Annual Fund is $5,000 per year, per location (paid
PROMOTIONAL monthly and increased at 3% annually).
FUND:

STORE HOURS: Tenant shall open 45 minutes before the first flight and remain open 30
minutes after the last flight has departed, or as approved by MP.

STREET PRICING: Tenant will comply with street pricing by offering prices in the airport similar
to what consumers/passengers would find for the same items at similar
locations outside the Airport.

CREDIT CARD
ACCEPTANCE: Tenant warrants and expressly agrees to accept three (3) major credit/debit
cards.

MINIMUM WAGE The lease is subject to Minimum Wage Law. Tenant hereby agrees to meet
LAW: and abide by all city and state laws, rules and regulations pertaining thereto.
If Tenant employs more than five (5) people, Tenant shall provide its covered
employees (persons who perform work for Tenant that arises directly out of
the lease) with the minimum wage standard and minimum benefits standard.

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PREVAILING
WAGE: The Tenant is subject to prevailing wage requirements applicable to covered
airport service employees. (Current prevailing wage is $18/hour.)

SECURITY 3 months of rent in the form of a line of credit or cash

DEPOSIT:

DISPLACED New Tenants must interview for new employees from the displaced worker
WORKER POOL: pool and follow the policies and procedures of the Displaced Worker
Program.

TENANT Tenant, at its own cost and expense, shall remodel the premises and provide
CONSTRUCTION: all finish work, which shall be in accordance with plans to be submitted to
Airport and approved by Airport. The construction shall be in accordance
with all rules, regulations, and criteria of the Airport, and governmental and
municipal authorities. Tenant shall cause its contractors to deliver to Airport
payment and performance bonds, for completion of 100% of the work and
for payment of 100% of the cost of the work.

PLAN Plans and specifications for Tenant’s Work, including the type of materials
REVIEW/TENANT to be used by Tenant in the Premises, must be set forth in detail and
COORDINATION: submitted to Airport for written approval immediately upon execution of the
lease. Tenant shall reimburse the Airport for plan review and tenant
construction costs at the nominal rate of $15,000.00).

REFURBISHMENT: Any lease 7 years or greater will be required to do a mid-term

refurbishment equal to 10% of initial minimum investment.

PREMISES: Tenant agrees to accept premises in “as is” condition.

EMPLOYEE Tenant shall, at Tenant’s sole cost and expense, offer at least one of the
DISCOUNT: following discounts to any Airport employee who provides proper employee
identification: a discount of at least fifteen (15%) off the normal non-sale or
non-promotional prices for food and non-alcoholic beverages. Retail
merchandise offers may vary.
INSURANCE: Tenant, at all times and at its own cost, and in forms and amounts approved
by Airport, shall maintain commercial general liability insurance, “causes of
loss special” property insurance, worker’s compensation insurance,
comprehensive automobile liability and boiler and machinery insurance, and
such other insurance as Airport may require.

STORAGE: Per a separate agreement

UTILITIES: Payment of the utilities will be the Tenant’s responsibility.

ASSIGNMENT/ Tenant shall not assign the lease or sublet all or any part of the Premises
SUBLETTING: without written approval from the Airport.

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TENANT REPAIRS: All repairs to the Premises or any installations, equipment or facilities
therein, other than those repairs expressly required to be made by Airport
pursuant to the lease, shall be made by Tenant at its expense. Without
limiting the generality of the foregoing, Tenant will maintain and keep the
interior of the Premises, together with all electrical, plumbing and other
mechanical installations therein and the heating, ventilating, ductwork, and
air-conditioning system in the Premises, the gas, electrical, telephone, hot
and cold water, fire sprinkler, condensate, roof drainage, and sanitary and
domestic waste utility branch lines that are solely for the use of by Tenant
or located within the Premises, in good order and repair and will make all
replacements from time to time required thereto at its expense. During the
term of the lease, Tenant shall, at Tenant’s expense, repaint, refurbish, and
remodel the Premises and any part and portion thereof to assure that the
same are kept in a first-class, tenantable, and attractive condition throughout
the Term.

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Exhibit 1 – Terminal Map

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