Section_B_-_REV1.doc

RFP – 47PM0618R0010 (TCM)

Section B

PART I

Section B

Supplies or Services and Prices/Costs

SECTION B

SUPPLIES OR SERVICES AND PRICES/COSTS

B.1 General Information

a. The Contractor shall provide all management, supervision, labor, materials, supplies, and equipment (except as otherwise provided), and shall plan, schedule, coordinate and assure effective performance of all TCM services described herein.

b. The Government contemplates the award of a fixed price award fee contract with performance incentives and disincentives.

c. Minimum Revenue Guarantee For this solicitation, the term Minimum Revenue Guarantee (MRG) will be used to define the minimum amount of revenue that is required to be generated from the business/revenue streams for managing the ITC, and paid to the Government to enable the ITC to be financially viable. (Also referenced in Section C and Section J).

The MRG areas are:

Parking/Garage Operations

(Section B.2.3, Page 4)

Conference Room Rental

(Section B.2.4, Page 4-5)

License for Tenant Office Space

(Section B.2.5, Page 5)

License for Retail/Food Tenant Space

(Section B.2.6, Page 5-6) Food and Beverage Services

(Section B.2.7, Page 6-7) Ancillary Services

(Section B.2.8, Page 7-8)

d. Award Fee Pool

The maximum fee that is available to the Contractor to be earned for each evaluation period.

B.2

Pricing Tables:

B.2.1 FIRM FIXED PRICE

B.2.1.1 Base Period (Transition-In) (3 Months)

(Estimated Date: July 2018 through September 7, 2018)

B.2.1.2 Base Period 1(Implementation) (Year 1)

(Estimated Date: September 8 2018 through September 7, 2019)

B.2.1.3 Option Period 1 (Implementation) (Year 2)

(Estimated Date: September 8 2019 through September 7, 2020)

B.2.1.4 Option Period 1A (Transition Out) (Year 2)

(Estimated Date: September 8 2019 through September 7, 2020)

B.2.1.5 Option Period 1B (Contract Close-Out) (Year 2)

(Estimated Date: September 8 2020 through December 7, 2020)

B.2.1.6 Six Months Extension (FAR 52.217-8) (Implementation) (6 Months)

(Estimated Date: September 8 2020 through March 7, 2021)

B.2.2 Incentive and Disincentives for Performance

The Contractor will be eligible to receive an award fee for exceeding the Minimum Revenue Guarantees (MRG’s) set forth in the contract. An award fee pool will serve as an incentive for the Contractor’s performance to exceed the performance objectives set forth in the Award Fee Performance Evaluation Plan (See Attachment J.14). The Contractor will not receive an award fee unless the MRG’s set forth in the contract are exceeded and/or the performance objectives set forth in the contract are exceeded.

Additionally, the Contractor will be required to pay a dollar for dollar disincentive for any amount below the MRG. The disincentives are both, not receiving an award fee and the dollar for dollar payment to the Government for missing the MRG’s in the areas of:

Parking/Garage Operations

License for Retail/Food Tenant Space

Conference Room Rental

Food and Beverage Services

License for Tenant Office Space

Ancillary Services

B.2.3 MINIMUM REVENUE GUARANTEE TO BE PAID TO THE GOVERNMENT FOR PARKING/GARAGE OPERATIONS This is a Fixed Price CLIN with performance incentives and a performance disincentive for the Contractor’s failure to meet the Minimum Revenue Guarantee (MRG) for Parking/Garage Operations. The Government may award an award fee for exceeding the performance criteria set forth in the Award Fee Performance Plan for Parking/Garage Operations. The Contractor shall meet the MRG for Parking/Garage Operations to ensure that the International Trade Center (ITC) is able to remain a financially self-sustaining entity.

Should the Contractor not meet the MRG set forth below, then the Government shall impose a performance disincentive in the amount of each dollar that the Contractor falls below the MRG. (See Clause H.10 Minimum Revenue Guarantee). Should the TCM exceed the MRG set forth in this Section B.2.4, the Government may award an award fee for exceeding the MRG amount and exceeding the performance criteria as set forth in the Award Fee Performance Plan (See Attachment J.14).

The TCM shall not interpret these guarantee payments to be made in lieu of payments the Government owes the Offeror (in section B 2.1.2 - B.2.1.6). The revenue payments will be deposited daily into the government’s specified U.S. Treasury account.

B.2.3.1 Base Period (Implementation) (Year 1)

B.2.3.2 Option Period 1 (Implementation) (Year 2)

B.2.3.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.4 MINIMUM REVENUE GUARANTEE TO BE PAID TO THE GOVERNMENT FOR CONFERENCE ROOM RENTAL This is a Fixed Price CLIN with performance incentives and a performance disincentive for the contractor’s failure to meet the MRG for Conference Room Rental to be paid to the Government. The Government may award an award fee for exceeding the performance criteria set forth in the Award Fee Performance Plan for Conference Room Rental. The Contractor shall meet the MRG for Conference Room Rental to ensure that the International Trade Center (ITC) is able to remain a financially self-sustaining entity.

Should the Contractor not meet the MRG set forth below, then the Government shall impose a performance disincentive in the amount of each dollar that the Contractor falls below the MRG. (See Clause H.10 Meet Minimum Revenue Guarantee). Should the TCM exceed the Minimum Revenue Guarantee set forth in this Section B.2.4, the Government may award an award fee amount for exceeding the MRG amount and exceeding the performance criteria as set forth in the Award Fee Performance Plan (See Attachment J.14).

B.2.4.1 Base Period (Implementation) (Year 1)

B.2.4.2 Option Period 1 (Implementation) (Year 2)

B.2.4.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.5 MINIMUM REVENUE GUARANTEE TO BE PAID TO THE GOVERNMENT FOR LICENSE FOR TENANT OFFICE SPACE PAYMENTS This is a Fixed Price CLIN with performance incentives and a performance disincentive for the contractor’s failure to meet the MRG for Tenant Office Space License agreements to be paid to the Government. The Government may award an award fee for exceeding the performance criteria set forth in the Award Fee Performance Plan for Tenant Office Space Licenses payments. The Contractor shall meet and pay the MRG for Tenant Office Space License payments to ensure that the International Trade Center (ITC) is able to remain a financially viable entity.

Should the Contractor not meet the MRG set forth below, then the Government shall impose a performance disincentive in the amount of each dollar that the Contractor falls below the MRG. (See Clause H.10 Meet Minimum Revenue Guarantee). Should the TCM exceed the Minimum Revenue Guarantee set forth in this Section B.2.5, the Government may award an award fee amount for exceeding the MRG amount and exceeding the performance criteria as set forth in the Award Fee Performance Plan (See Attachment J.14).

B.2.5.1 Base Period (Implementation) (Year 1)

B.2.5.2 Option Period 1 (Implementation) (Year 2)

B.2.5.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.6 MINIMUM REVENUE GUARANTEE TO BE PAID TO THE GOVERNMENT FOR LICENSE FOR RETAIL/FOOD TENANT SPACE PAYMENTS This is a Fixed Price CLIN with performance incentives and a performance disincentive for the contractor’s failure to meet the MRG for Retail/Food Tenant Space License agreements to be paid to the Government. The Government may award an award fee for exceeding the performance criteria set forth in the Award Fee Performance Plan for Retail/Food Tenant Space License payments. The Contractor shall meet and pay the MRG for Retail/Food Tenant Space License payments to ensure that the International Trade Center (ITC) is able to remain a financially self-sustaining entity.

Should the Contractor not meet the MRG set forth below, then the Government shall impose a performance disincentive in the amount of each dollar that the Contractor falls below the MRG. (See Clause H.10 Meet Minimum Revenue Guarantee). Should the TCM exceed the minimum revenue guarantee set forth in this Section B.2.6, the Government may award an award fee amount for exceeding the MRG amount and exceeding the performance criteria as set forth in the Award Fee Performance Plan (See Attachment J.14) B.2.6.1 Base Period (Implementation) (Year 1)

B.2.6.2 Option Period 1 (Implementation) (Year 2)

B.2.6.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.7 MINIMUM REVENUE GUARANTEE TO BE PAID TO THE GOVERNMENT FOR FOOD/BEVERAGE OPERATION SERVICES This is a Fixed Price CLIN with performance incentives and a performance disincentive for the contractor’s failure to meet the Minimum Revenue Guarantee for Food/Beverage Operation Services to be paid to the Government. The Contractor shall provide all personnel, equipment (except as identified in the Government Provided Equipment List - See Attachment J.5 and Section C.4.3.1) tools, materials, supervision, and other items or services necessary to perform the management and operation of all Conference Center Food/Beverage and Ancillary Services thereto required by the contract at no cost to the Government. After payment to the Government of the percentage set forth below, the Contractor is entitled to all of the Food/Beverage payments collected from third parties as payment for performance under the contract. The Government’s liability for payment of all Conference Center Food/Beverages and Ancillary Services thereto under this contract is ‘zero.’

The Contractor shall meet the MRG for Food/Beverage operation services as set in Section B.2.6 to ensure that the International Trade Center (ITC) is able to remain a financially self-sustaining entity. The Contractor shall provide the Government seven percent (7%) of the Gross Receipts for Food/Beverage operation services including gross receipts above the MRG.

Should the Contractor not meet the MRG set forth below, then the Government shall impose a performance disincentive in the amount of each dollar that the Contractor falls below the Minimum Revenue Guaranteed. (See Clause H.10 Minimum Revenue Guarantee). Should the TCM exceed the MRG amount set forth in this Section B.2.6, the Government may award an award fee amount for exceeding the MRG amount and exceeding the performance criteria as set forth in the Award Fee Performance Plan (See Attachment J.14).

B.2.7.1 Base Period (Implementation) (Year 1)

B.2.7.2 Option Period 1 (Implementation) (Year 2)

B.2.7.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.8 MINIMUM REVENUE GUARANTEE TO BE PAID TO THE GOVERNMENT FOR ANCILLARY SERVICES This is a Fixed Price CLIN with performance incentives and a performance disincentive for the contractor’s failure to meet the Minimum Revenue Guarantee for Ancillary Services to be paid to the Government. The Contractor shall provide all personnel, equipment (except as identified in the Government Provided Equipment List - See Attachment J.5 and Section C.4.3.1) tools, materials, supervision, and other items or services necessary to perform the management and operation of all Ancillary Services thereto required by the contract at no cost to the Government. After payment to the Government of the percentage set forth below including above the MRG, the Contractor is entitled to all of the Ancillary Services payments collected from third parties as payment for performance under the contract. The Government’s liability for payment of and Ancillary Services thereto under this contract is ‘zero.’

The Contractor shall meet the MRG for Ancillary Services as set forth in Section B.2.7 to ensure that the International Trade Center (ITC) is able to remain a financially self-sustaining entity. The Contractor shall provide the Government fifty percent (50%) of the Net Receipts for Ancillary Services.

Should the Contractor not meet the MRG set forth below, then the Government shall impose a performance disincentive in the amount of each dollar that the Contractor falls below the Minimum Revenue Guaranteed. (See Clause H.10 Minimum Revenue Guarantee). Should the TCM exceed the MRG amount set forth in this Section B.2.7, the Government may award an award fee amount for exceeding the MRG amount and exceeding the performance criteria as set forth in the Award Fee Performance Plan (See Attachment J.14).

B.2.8.1 Base Period (Implementation) (Year 1)

B.2.8.2 Option Period 1 (Implementation) (Year 2)

B.2.8.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.9 AWARD FEE FOR ALL SERVICES SET FORTH IN SECTION C

The Government may provide an award fee for the contractor exceeding the performance criteria set forth in the Award Fee Performance Plan (See Attachment J.14) for all services set forth in Section C during each performance period. The Government will evaluate the contractor’s performance as set forth in the Award Fee Performance Plan.

B.2.9.1 Base Period (Implementation) (Year 1)

award)

B.2.9.2 Option Period 1 (Implementation) (Year 2)

B.2.9.3 Six Month Extension – FAR 52.217-8 (Implementation)

B.2.10 COMMISSION PERCENTAGES TO BE PAID BY THE GOVERNMENT

This is a Fixed Price CLIN. The Government shall pay the Contractor a broker commission for License Agreements for Office Space and Food/Retail Space as set forth below. The Commission percentages are considered an award fee based on the Contractor Licensing of

Office Space and Retail Space in the ITC. All Revenue for the License Agreements shall be paid immediately to the Government. The maximum commission to be paid the Contractor shall not exceed a License Agreement term of ten (10) years: (The Offerors shall propose the broker commission percentage that shall be constant through the contract).

B.2.10.1 OFFICE SPACES: Broker Commission based on percent of lease value as defined in Section C.

Base Period (Implementation) (Year 1)

B.2.10.2 RETAIL/FOOD SERVICE SPACES: Broker Commission based on

Percent of lease value as defined in Section C.

Base Period 1 (Implementation) (Year 1)

B.2.10.3 - OFFICE SPACES: Broker Commission based on percent of lease value as defined in Section C.

Option Period 1 (Implementation) (Year 2)

B.2.10.4 - RETAIL/FOOD SERVICE SPACES: Broker Commission based on

Percent of lease value as defined in Section C.

Option Period 1 (Implementation) (Year 2)

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