Concessionaire PWS - Rev. 3.docx

PERFORMANCE WORK STATEMENT

for

CONCESSIONAIRE SERVICES

at the

BEALE AFB COMMUNITY CENTER

4 November 2010

Requirement Overview:

1. Contractor will provide an espresso-based premium coffee bar and sandwich-based food operation (breakfast and lunch required) to authorized patrons at the Beale AFB, CA Community Center. The Contractor shall furnish all labor, supervision, tools, equipment, transportation, materials, and incidentals necessary to establish and operate the Concessionaire.

2. Hours of operation for a full coffee/breakfast/lunch operation are on weekdays (except federal holidays, local holidays, goal days and family days) between 0600 and 1500 (6 a.m. to 3 p.m.); the coffee bar will be available at a minimum between 0600 and 1030 (6 a.m. to 10:30 a.m.). Any changes to hours must be approved in advance by the Club Manager.

3. Menu items of the proposed food operation will complement the existing concessionaire; a menu of current offerings is attached for review.

4. Concessionaire operating space will be provided by Beale AFB within the Community Center; dimensions are approximately 44’ x 64’ and consist of a kitchen area, dining area with counter space for displaying products, and separate male and female restrooms for employees. Patron restrooms are provided in the Community Center common areas.

5. To operate, the Contractor will pay the Non-Appropriated Fund Instrumentality (NAFI) a sum equal to 15 percent (15%) of the concession’s monthly gross revenue. Fees due the NAFI will be based on the calendar month with the cutoff being close of business on the last day of the month.

6. Payment to the NAFI must be made by check by the fifth day of the following month.

7. Contract will be issued for a base period of 12 months with an additional four (4) option years which may be exercised at the discretion of the Government. In no event will the total contact period of performance exceed five (5) years and six (6) months.

The Concessionaire Must:

1. Be fully operational within 30 days of contract award.

2. Furnish, at its own expense, all trade fixtures, tools of the trade, and supplies required for performance of this Concessionaire contract.

3. Submit a listing of menu items and corresponding selling prices to the Contracting Officer as part of their response to solicitation; the final approved listing is considered a part of this agreement. Before beginning contract performance the item / price list must be placed in a conspicuous place for patrons to see.

4. Give the Club Manager two weeks advance notice of any menu and/or price changes.

5. At their own expense: obtain all permits; give all necessary notices; pay all license fees; and comply with all municipal, prefectural and national laws, rules, ordinances, and regulations, and any publication published by the military relating to public health, OSHA, or applicable to the business carried out under this agreement; and, assume sole liability for all national, state, and local taxes applicable to the property, income, and transactions of the Concessionaire.

6. Comply with all applicable laws pertaining to wages, workers’ compensation, equal opportunity, and so forth, as implemented by the Air Force directives and required by law.

7. Comply with all memoranda, bulletins and letters of instruction issued by or on behalf of the NAFI Manager, the Club Manager, and the Contracting Officer.

8. Keep the concession area clean, orderly, attractive, secure, and in a safe and sanitary condition to the satisfaction of the NAFI Manager and the Club Manager.

9. At their own expense, furnish suitable bags, “Sold” labels, etc., for securing a Customer’s purchase. If required, item packaging will be as approved by the Contracting Officer. All items sold will be marked to reflect the selling price.

10. Employ only persons who meet the health standards prescribed by law or regulations that pertain to the jobs for which they are hired, including those of the National Restaurant Association as well as base public health standards.

11. Furnish a sufficient number of trained employees for the efficient performance of this concessionaire contract. Contractor personnel must:

a. Meet the health and security standards prescribed by the applicable regulations.

b. Obtain installation passes, permits and security clearances, as applicable.

c. Give prompt and courteous treatment to authorized customers.

d. Be neatly dressed and meticulous in their personal grooming at all times.

12. Provide employees clean uniforms or, when uniforms are not required, ensure all clothing worn by employees is clean and in good condition at all times. A nametag for each employee is required to be worn.

13. Obtain liability insurance commensurate with the risks involved in contract performance and furnish proof of insurance to the Contracting Officer within 30 days of contract award. Please see Deliverables section 2(b) for coverage requirements.

14. Not leave cash on the premises during non-operational hours unless it is safeguarded in accordance with AFI 34-202, Protecting Non-Appropriated Fund Assets. Regulations are viewable at: http://www.e-publishing.af.mil/

15. Be responsible for paying all operating expenses not expressly undertaken by the NAFI.

16. Comply with the installation fire and safety regulations, and all applicable health and sanitation regulations.

17. Post or display on the premises any sign furnished by the Government.

18. Train and instruct employees in utility conservation practices.

Deliverables:

1. Within 10 calendar days after award - Concessionaire shall designate a Contract Manager and will submit their name and contact information in writing to the Contracting Officer. See Personnel / Employee Requirement section for more information.

2. Prior to beginning contract performance, annually thereafter:

a. Concessionaire will provide certifications from Military Public Health or ServSafe for all staff members who work with food and beverage products to the Contracting Officer. A copy of certifications will also be kept in a binder at the Concessionaire.

b. Proof of Sufficient Insurance - The NAFI is not liable for any non-government property or merchandise used by the Concessionaire against theft, fire, storm, flood and damage or destruction through any force of nature. Insurance coverage is required as follows:

i. Property damage liability - Amount insured shall be equal to the dollar value for all non-Government owned assets and merchandise contained in the facility to be covered against theft, fire, storm, flood, and damaed or distruction through any other force of nature.

ii. General liability - bodily injury liability insurance coverage written on the comprehensive form of policy of at least $500,000 per occurrence.

iii. Workers’ compensation and employer’s liability. Employer’s liability coverage of at least $100,000 shall be required, except in States with exclusive or monopolistic funds that do not permit workers’ compensation to be written by private carriers.

3. Concessionaire will keep a current list of personnel employed on this contract available on-site for Government inspection. This list shall include the dates of food service sanitation training.

4. Daily – The Concessionaire will prepare AF 1875, NAF Individual Cashier’s Report, which shows all income received daily, and will submit this form weekly to the Club’s cashier cage (see section 5). Contractor will attach register readings and register tapes in accordance with instructions from the NAFI accounting office. Register receipts will include all transactions, including any voids. Copies of AF 1875 shall be provided to the Concessionaire by the supporting NAFI accounting office. Any failure by the Concessionaire, its employees, or agents to enter all monies received on the AF 1875 will be cause for immediate cancellation of this contract as well as the basis for criminal action against the Concessionaire. Daily paperwork will be submitted through the Club cashier cage for verification; the Club will submit to NAFI accounting office.

5. Weekly --

a. Contractor will submit AF 1875s weekly, not later than 1000 (10:00 a.m.) Monday of the week following the prior weeks’ noted transactions. Failure to submit the weeks’ AF 1875s by the required day/time will result in an additional late payment charge of $20 to be due the Government.

b. Concessionaire will conduct a weekly inspection using AF 977, Food Facility Evaluation, to evaluate compliance with the food code according to the Military Public Health evaluation. Inspection results will be kept in a binder at the Concessionaire for review and inspection by the Government.

6. Failure to complete weekly facility inspections will result in:

a. First Offense – a verbal warning as well as written notification from the Club Manager to the Contracting Officer.

b. Second Offense – a written warning from the Club Manager to the Contractor; Club Manager will send a copy to the Contracting Officer for notification purposes.

c. Third Offense – an official warning letter will be issued from the Contracting Officer.

d. Fourth Offense and Beyond – consideration of performance deficiencies and possible contract termination.

7. Monthly – At the end of each month, or as specified by the Contracting Officer, the Contractor will prepare a signed settlement report showing the gross sales for the monthly period, the percent due the Government, and any additional NAFI fees due for that period. The format of the settlement report will be developed by the Contractor and available for submission in both hard copy and electronic copy using Microsoft Word or Excel; the Government may request revisions to the Contractor-developed form to provide additional information, as required for processing. Contractor will submit this report to the Government with payment of the fees due for that period.

8. Failure to meet the monthly payment deadline will result in additional charges to the Contractor which will be due the Government based on a tiered scale, as follows:

a. Payments made 1-5 days late will be assessed an additional $50 late payment charge, to be due by the Contractor at the time the monthly payment is made.

b. Payments made 6-15 days late will be assessed an additional $100 late payment charge, to be due by the Contractor at the time the monthly payment is made.

c. Payments made 16-30 days late will be assessed an additional $150 late payment charge, to be by the Contractor at the time the monthly payment is made.

d. Payments made 30 days or more late will be assessed an additional $200 late payment charge, to be paid by the Contractor at the time the monthly payment is made.

Excessive or repeated history of late payments may be considered grounds for contract termination.

Payments / Indebtedness:

1. The concessionaire will pay promptly all debts or remaining balances incurred in connection with the performance of the contract.

2. Any monies due and payable to the Government from the Concessionaire must be paid in full or will remain due until final payment.

3. A fee of $25 will be charged to the Contractor for any dishonored check received from the Contractor, except when their financial institution acknowledges the return to be the result of bank error or the return is the result of a Government error. This amount does not exceed the administrative amount normally charged other Government customers for dishonored checks. Payment of fee shall be made in cash, certified check, cashier’s check, or money order.

4. Internal Control of Charge Card Sales:

a. Concessionaire will establish internal control procedures consistent with provisions of this contract for a complete and accurate accounting of all transactions.

b. Concessionaire must accept, at a minimum, both VISA and MASTERCARD national charge cards for customer payment of purchases. Concessionaire is responsible for the payment of any fees, charge backs and other arranged costs levied by the charge-card-issuing companies.

c. The Contracting Officer, or designee, may conduct inspections considered necessary to ensure strict compliance by the Concessionaire with all provisions of this contract.

5. Air Force Auditor General personnel, or any person designated by the installation commander or NAFI, will have the right to inspect or audit the accounts and methods of internal control established by the Concessionaire, and to make such inspection or audits as may be considered necessary to ensure strict compliance by the Concessionaire with all provisions of this contract and with applicable Air Force instructions.

Concessionaire Personnel / Employee Requirements:

1. The Concessionaire shall keep a current list of personnel employed on this contract available for Government inspection. This list shall include the dates of food service sanitation training for food handlers.

2. All staff members who work with food and beverage products must receive training from Military Public Health or ServSafe before beginning performance under this contract. Certificates will be provided for all personnel prior to beginning work and annually thereafter. Copies of certificates shall be kept on-site.

3. The Concessionaire shall provide a Contract Manager or alternate who shall be responsible for ensuring contract performance as outlined within this Performance Work Statement, and who will act for the Concessionaire when the manager is absent. The name and contact information of this person(s) shall be designated in writing to the Contracting Officer within 10 calendar days after award of this contract and immediately after any changes during performance of the contract.

4. The Contract Manager or alternate shall have full authority to act for the Contractor on all matters relating to daily operations of this contract.

5. The Contract Manager or alternate shall be available during normal business hours, Monday-Friday 0800-1400 hours, and shall be available for phone consultation within 90 minutes of being contacted by Government personnel in order to discuss problem areas. Contract Manager or alternate must be available to meet on-site at Beale within two business days to discuss serious issues, when required.

6. The Contract Manager and all supervisors shall be qualified in food/beverage operations to perform this contract.

7. The Concessionaire shall ensure that all Concessionaire employees are supervised during contract operations.

8. Each Contractor employee shall possess the following pass/identification items:

a. Valid Contractor picture identification card for employees, issued by pass and ID.

b. All personnel who will be driving shall possess a valid driver’s license and insurance for any vehicle utilized on base. Vehicles and contents are subject to search by 9 SFS at all times.

9. Employment within this contract includes a ZERO TOLERANCE policy against drug and alcohol use. The consumption of or intoxication relating to the usage of, alcoholic beverages or illegal drugs by Concessionaire personnel is strictly forbidden while on duty. The Concessionaire shall immediately remove from duty any employee who is under the influence of alcohol or drugs. Any instance of drug or alcohol infractions may be reported to 9th Security Forces for further investigation.

10. Employees who deal directly with Customers will be required to effectively communicate in English. This requirement is strictly for the purpose of efficiently taking orders, preparing the correct food, and taking payments. Managers and supervisors will be required to read, write, and speak English.

11. Employees shall not loiter in any working or patron area. Upon completion of their assigned shifts, or after eating, employees shall promptly depart from the base unless they are otherwise eligible to use base facilities.

12. Concessionaire shall hire, supervise, direct the work of, discharge and determine compensation and other benefits of all personnel in the employ of the Concessionaire. Concessionaire shall be responsible for timely payment of all costs and expenses relating to all employees, including, but not limited to, all expenses relating to employee compensation, wages, bonuses, payroll or other taxes, social security, fringe benefits, workmen’s compensation, unemployment compensation, insurance (Group) and all federal, state, or local Government employee insurance or benefit programs of any kind that now or may later exist.

13. The Concessionaire shall not employ any person who is an employee of the United States Government if the employment of that person would create a conflict of interest, nor shall the Concessionaire employee any person who is an employee of the Department of the Air Force, either military or civilian, unless such person seeks and receives approval in accordance with DODD 5500.7, Joint Ethics Regulation. In addition, the Concessionaire shall not employee any person who is an employee of the Department of the Air Force is such employment would be contrary to the policies contained in AFI 64-106, Industrial Labor Relations Activities. All questions of “conflict of interest” shall be referred to the Contracting Officer.

14. The Concessionaire is cautioned that off duty active military personnel hired under this contract are always subject to permanent change of station (PCS), change in duty hours or deployment. Military Reservists and National Guard members may be subject to recall to active duty. The abrupt absence of these personnel could adversely affect the Concessionaire’s ability to perform. Their absence at any time shall not constitute an excuse for nonperformance under this contract.

Food Code / Inspections:

1. AFI 48-116, Food Safety Program Code, shall be followed. A copy of this regulation is viewable at: http://www.e-publishing.af.mil/

2. AF Form 977, Food Facility Evaluation, shall be used weekly to evaluate compliance with the food code according to the Military Public Health evaluation.

3. Food spoilage shall be disposed of in accordance with AFI 48-116, Food Safety Program Code.

4. The Concessionaire shall ensure that all foods are from approved sources in accordance with AFI 48-116, Food Safety and Inspection program. Presence of any unapproved food and beverage items on the premises will be cause for an unsatisfactory rating by Public Health.

5. Public Health has the authority to close any operation for noncompliance.

6. Public Health shall have the right to request any additional information required by Air Force regulations it may deem necessary at any time.

7. Public Health, Civil Engineering, Fire Safety, and Base Safety, in accordance with Federal Government regulations, may inspect the operation for health, safety sanitation or fire violations at any time. If the Concessionaire is found not to be in compliance with any regulation there may be cause for the facility to be shut down until the Concessionaire, when within the Concessionaire’s control, or Force Support Squadron, when within Government control, has remedied the problem. Any sanitary deficiencies shall require immediate correction.

Quality Control:

1. The Concessionaire must provide products to sell that are marketable and sufficient for use intended, and not “seconds” as the term is usually understood in the trade. As a minimum products will be equal to products provided by first quality commercial establishments. All items will be acceptable to the Club Manager, NAFI Manager, and the Contracting Officer, and will be suject to inspection and test for workmanship and quality at all times by the Contracting Officer or designee.

2. Any item found to have a latent defect(s) may be returned to the Concessionaire for replacement of refund as determined by the Contracting Officer, at the expense of the Concessionaire.

3. The Concessionaire agrees to adhere to the Government policy of “customer satisfaction guaranteed” and will be responsible for refunds to Customers due to customer dissatisfaction with an item or due to erroneous overcharges. All customer complaints, claims, and refunds will be resolved and made at the Concessionaire’s expense. Any disagreement that cannot be resolved between Concessionaire and the Customer will be referred to the Contracting Officer, whose decision will be final and not subject to the disputes clause. If Concessionaire fails to timely process complaints or claims and make refunds, the Government may settle customer complaints or claims and make such refunds, and charge the Concessionaire’s account.

4. The Concessionaire shall establish and maintain throughout the life of the contract, a documented system for responding to customer complaints and inspection infractions.

5. All complaints shall be reported to and coordinated with the Contracting Officer.

6. The Concessionaire shall be responsible for safeguarding all Federal Government property provided for Concessionaire use. At the close of each work period all Federal Government facilities, equipment and materials shall be secured.

7. In the event that facility keys are lost the Concessionaire will be required to pay the total cost of replacement to include re-keying of the facility. Lost keys should be reported immediately to the Club Manager.

Government Furnished Items / Property:

1. Government will provide concessionaire operating space within the Beale Community Center; dimensions are approximately 44’ x 64’ and consist of a kitchen area, dining area with counter space for displaying products, and separate male and female restrooms for employees.

2. Utilities: The Government will furnish sufficient quantities of space, heat, water, electricity, and plumbing to satisfy the normal needs of the Concessionaire for lighting, heating, drinking, sanitation, and the operation of suitable support equipment.

3. Contractor is required to provide their own equipment necessary for daily operations.

4. Other equipment provided by the Government:

a. 3 each booths with accompanying tables

b. 12 each 4-top tables

c. 3 each 6-top tables

d. 60 chairs

e. 6 each high-top tables

f. 18 each high-top chairs

g. 24 lights (tract lighting)

h. 1 refrigerator – Hotpoint 2-door

i. 1 stove – Hotpoint 4 burner

j. Ice Machine – Hoshizaki closed container

k. Three compartment sink and its attached shelves

l. 2 each 26” flat panel televisions – Sharp Aquos with wall-mounting brackets

m. Music system – includes Sony 5-disc changer, Sony receiver, Monster cable splitter, and 9 compact speakers

5. Prior to beginning performance under this award the Contractor will conduct a site walk-through to establish the condition of the facility prior to inhabiting. Photos will be taken by Government personnel to justify existing conditions, which the Contractor will review and sign to accept the condition as noted. Normal wear and tear over inhabitance is acceptable upon move-out however the Contractor will be charged for any damages made to the facility or Government-furnished property.

6. The NAFI will provide limited marketing needs to include promotion and advertisement of the Concessionaire’s grand opening, as well as continued limited publicity on the concessionaire’s normal daily operations thereafter. Contractor will submit advertising requests to the Club Manager for content review and approval of proposed distribution method. Once approved, the Club Manager will forward advertising requests to the NAFI Marketing office for dissemination.

The Concessionaire Must Not:

1. Sell or serve alcoholic beverages.

2. Represent or permit itself to be represented to the public as an agent or employee of the Government by the use of the name of the Government on letters, bills, signs, contracts, or by any other means. The Concessionaire, its agents, and employees are in no sense agents of the United States, the Government, the Commander of the installation within which the contract exists, or of any other entity having to do with the operations of the Government.

3. Sell, remove, or in any way alter any property that is owned by the Government, including Government-owned property used in the operation of the concession. Contractor will be financially responsible for any removal or sale of Government-owned property and will be charged to replace any items that are damaged beyond normal wear and tear, sold, or removed during the Contractor’s tenancy. Please see attached Government Furnished Property listing for items and replacement value.

4. Engage in or permit gambling or possession or use of any gambling device on the concession premises or elsewhere on the installation.

5. Sell, deal in, or otherwise possess or transfer any form of contraband or illegal substances such as weapons, intoxicating liquors, or narcotics while on the installation premises.

6. Loan money to or borrow money from customers or others, including Federal employees and military personnel.

7. Sell merchandise or services for anything other than United States currency, checks, or credit cards, unless authorized in writing by the Contracting Officer.

8. Sell merchandise or services on credit or a tab, for example if a Customer were to say “Sorry, I forgot my wallet, can I pay you for this next time?”

9. Give or offer preferential treatment to any officer or employee of the Government, including any gift, priviledge, special benefit, discount, or anything else of material or personal nature whereby the individual or employee would receive preferential treatment above those of the general public.

10. Make any alterations to Government furnished property or premises without prior approval from the Contracting Officer.

Contract Termination:

1. Contract termination refers to any end in contractual relationship, whether by Termination for Cause, or Default, Termination for Convenience, or termination due to contract expiration.

2. This agreement will be automatically terminated without penalty in the event that the NAFI, or base installation is liquidated.

3. Concessionaire will take the following actions upon termination:

a. Promptly settle its accounts with the Government, including payment in full of all amounts and fees due the Government; any money due the Government by the Contractor shall remain due and payable in the event of contract termination.

b. Yield the facilities and all government-furnished property.

c. Clean and leave premises in as good as order and condition as when received (damage due to acts of God and ordinary wear and tear excepted).

d. Surrender all installation passes, decals, and so forth.

e. Complete satisfactory settlement of all customer complaints and claims. Termination of the contract does not release the Concessionaire from the obligation to satisfactorily settle customer complaints and claims.

f. Promptly remove all Contractor-furnished trade fixtures, tools of the trade, and supplies. Upon failure to remove Contractor-owned property, the Contracting Officer may cause the property to be removed and stored in a warehouse at the Contractor’s expense. If the Contractor is indebted to the Government, the Contractor authorizes and empowers the NAFI to take possession of the property and dispose of it by public sale without notice, and out of the proceeds of sale, satisfy all costs and indebtedness to Government.

Additional Provisions:

1. The terms Concessionaire and Contractor are used synonymously within this document and mean the individual, partnership, corporation, or other entity which is a party to this contract and who is responsible for all actions and applicable regulations and performance there under.

2. Non-Waiver of Defaults: Any failure by the Government to enforce or require strict performance of any terms or conditions of this Concessionaire contract will not constitute a waiver, and will not affect or impair such terms and conditions in any way or effect the right of the Government at any time to avail itself of such remedies as it may have for breach or breaches of such terms and conditions.

3. No claim by the Concessionaire relating to this contract may be considered by the Contracting Officer unless such claim is submitted in writing to the Contracting Officer no later than 90 days after the effective date of termination or expiration of the Concessionaire contract. This clause does not extend the period for filing claims where specifically limited by another clause.

4. The Concessionaire shall indemnify, hold harmless, and defend the Government from and against any and all claims, demands, actions, debts, liabilities, and attorney’s fees arising out of, claimed on account of, or in any manner predicated upon loss or damage to the property of, the injury of, or the death of any and all persons whatsoever, in any manner caused or contributed to by the Concessionaire, the Concessionaire’s agents or employees, while in, upon, or about the military installation or while going to or departing from the intallation.

5. Premises: The assignment of space is revocable and is not construed as the creation of tenancy. Concessionaire is liable for any damage to or loss of the premises and Government-furnished property, or injury to persons resulting from acts or omissions of Concessionaire, its employees, or agents, whether or not covered by insurance.

a. Sublet of any part of the premises is not authorized. Use of the premises and Government-furnished property for any purpose other than those specifically set forth, or to permit any such unauthorized use of the premise by any of the Concessionaire’s agents, representatives, or employees is prohibited.

b. Concessionaire will not make any alterations in the facilities provided without prior authorization from the Contracting Officer. Failure to return premises and Government-furnished property in condition as received will result in replacement or repair to return premises or equipment to previous condition, at the cost of the Contractor.

6. Taxes: Where a state law imposes a sales tax on the sale of the item and/or service by the Concessionaire to the authorized customer, the sales tax will be separately stated from the sale price, added to the price in the price schedule, and collected from each customer.

a. Sales taxes which have been collected are excluded from the computation of gross receipts in the determination of the fee payable to the NAFI. The amount of taxes so excluded will not exceed the actual sum pauable to the state.

b. Where required by state law or regulation, Concesionaire shall obtain and conspicuously display the state sales tax permit.

Attachments:

1. Facility Map – 2 pages

2. Current Contractor Menu - T.J.’s Coffee and Deli – 1 page

3. Government Furnished Property Photos – 5 pages

4. AF IMT 1875 - NAF Individual Cashier’s Report – 1 page (to be submitted daily to the Club’s cashier cage; Club will forward to NAFI)

5. AF IMT Form 977 - Food Facility Evaluation – 2 pages (to be submitted weekly to the Club Manager)

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