Food_Service_RFP_HAZY_2018_(final_for_post).pdf

Smithsonian Institution

Request for Proposal No. M-18000700-0000

For

Food Service Facility

At the

Steven F. Udvar-Hazy Center

National Air and Space Museum 14390 Air And Space Museum Pkwy, Chantilly, VA 20151

December 13, 2018

I. INTRODUCTION

A. About Smithsonian

The Smithsonian Institution is a non-profit trust instrumentality that was created by act of

Congress of the United States in 1846. The Smithsonian is the world’s largest museum and research complex consisting of 19 museums and galleries, the National Zoological

Park and nine research facilities. In 2017 30 million people from around the world visited the museums and the National Zoo; there were nearly 151 million visits to www.smithsonian.org. The total number of objects, works of art and specimens at the

Smithsonian is estimated at more than 145 million. The Smithsonian collections are the basis for research, exhibitions and public programs in the arts, history and culture, and the sciences. The Institution’s mission is the “increase and diffusion of knowledge.”

The Smithsonian’s statement of values and code of ethics require that Smithsonian’s revenue-generating activities support the Smithsonian mission and protect the

Smithsonian's reputation, integrity, and independence. Smithsonian’s revenue-generating activities must be consistent with the Smithsonian mission, culture, governance, and status as a trust instrumentality of the United States and a tax-exempt organization.

B. About Smithsonian Enterprises

Smithsonian Enterprises is a division of the Smithsonian Institution. Smithsonian

Enterprises operates retail, media, product development, licensing, travel, SmithsonianStore.com, and other services which promote the Smithsonian mission while generating an essential source of unrestricted funding for the Institution. By providing products and services that reflect the mission of the museums and research centers, Smithsonian Enterprises plays a critical role in advancing the Institution’s mission: the increase and diffusion of knowledge.

Smithsonian Enterprises’ Retail Group manages 13 restaurants with a variety of dining experiences; 2 IMAX theatres with 1.3 million annual attendees; simulators offering thrilling experiences to over 500,000 visitors; and 27 museum retail stores handling over

2.3 million annual transactions.

With over 7.3 million electronic messages marketing our various businesses, Smithsonian

Enterprises continues to grow and reach new consumers of every generation throughout the world.

C. About the Project. The Smithsonian Institution is seeking proposals for the management and operation of the food service facility located at the Steven F. Udvar-Hazy Center, National Air and Space Museum in Chantilly, VA (“UHC”). The restaurant, kitchen and related spaces within UHC are referred to herein as the “Facility”. The Smithsonian’s goal is to have a design plan in place for the remodel of the Facility and begin construction work on or about July 13, 2020, with food service operations to commence once the renovation is complete.

II. SCOPE OF WORK.

A. The successful offeror will be required to manage and operate the Facility, and provide high quality, reasonably priced, food and beverages in an efficient and courteous manner to Smithsonian visitors and employees, in accordance with the requirements set forth in the Sample Concession

Agreement, available via DropBox in Appendix 4 and incorporated by reference herein.

B. UHC’s unique needs and mission must be considered when developing the concept, offer, and pricing requested in Section IV below. Information on UHC’s goals, challenges and requirements is set forth in Section III. Additional information for UHC is located in the following Appendices, available via DropBox and incorporated by reference herein: Appendix 1 (Museum Visits), Appendix 2 (Food

Service Sales History), Appendix 3 (Pest Control and Utility Expenses). Overall, the Smithsonian seeks a firm that can demonstrate the following in its proposal:

1. Experience in high volume, efficient and safe food delivery;

2. Demonstrated ability to manage profitable operations;

3. Demonstrated expertise at all corporate levels of food service management;

4. Creative ideas and concepts aimed at increasing the per capita sale and total sales at the Facility;

5. Management and staff with the desire and initiative to constantly seek improvement in the visitor food service experience;

6. Commitment to superior customer experience, including the design of a space that is accessible for all guests;

7. A comprehensive menu development program with standardized recipes and seasonal updates;

8. An ongoing employee training program to guarantee expertise, hospitality, and pride in the product and the workplace;

9. The financial resources to support any proposed investments;

10. Ability to support the sustainability goals of UHC and the Institution;

11. Commitment to facility and equipment maintenance and repair at the highest level of operational efficiency;

12. Willingness to serve healthy menu options and options for customers with food allergies or sensitivities;

13. Partnership spirit to work with UHC/SE for programs, events, and promotions.

C. Type of Contract. The Smithsonian anticipates entering into a concession agreement substantially similar in form and content to the sample in Appendix 4 (Sample Concession Agreement) available via DropBox and incorporated by reference herein. Please read Appendix 4 carefully, as it contains information essential to the conduct of the operations. The Smithsonian will require a percentage of sales payable to the Smithsonian. Smithsonian Enterprises will be responsible for management of the contract with the selected offeror. The selected offeror will work directly with UHC on special event or catering services UHC/SE may request, as further detailed below.

D. Contract Term. The Smithsonian anticipates a contract term of ten years from the date of the award with two (2) options (to be exercised at the Smithsonian’s sole discretion) to extend the agreement, each for an additional five-year period (each, an “Option Period”). Further details appear in

Appendix 4 including early termination provisions.

E. Changes to Facility. The Smithsonian reserves the right to change, alter, modify or close the Facility as needed to meet market conditions or to otherwise improve it, or to accommodate any construction, restoration or repair activities, government policy, or as otherwise deemed appropriate by the Smithsonian. To the extent possible, Smithsonian shall give the successful offeror reasonable advance notice, if possible, to arrange for any such closing or interruption and will use all reasonable efforts to complete any changes in a manner which minimizes disruption to the food service operations.

Smithsonian shall not be responsible or liable for any loss of revenues including but not limited to losses due to such a closing or interruption.

F. Catering. UHC may request that the successful offeror provide catering services for events and meetings. Offerors are on notice that catering services are not exclusive, and the Smithsonian reserves the right to select or have third party users of the UHC Facility select caterers of their own for social functions or special events. If UHC selects the successful offeror to provide catering services for an event or meeting, a separate contract will be executed specifically for those catering services. Smithsonian requires offerors to provide catering services for in house meetings at discounted rates.

G. Vending. Vending is excluded from the scope of services in this RFP.

H. Product Exclusivity. Smithsonian has granted the Coca-Cola Company "exclusive pouring rights" for all public beverage sales in the majority of Smithsonian facilities on the National Mall in Washington, D.C. and UHC. As a condition of the Concession Agreement, the successful offeror may be required to follow the restrictions as to beverage brand and type as contained in the Smithsonian's pouring rights agreement. Smithsonian reserves the right to change the company (name brand) to whom it grants pouring rights and the terms of its pouring rights agreement, and the successful offeror shall change brands when and if directed to do so by Smithsonian.

I. Branding. The Smithsonian will consider proposals for a Facility that is either branded or non-branded.

J. Non-Exclusivity. Offerors are on notice that the obligations of the Concession

Agreement are non-exclusive and concern only the specified Facility detailed herein.

K. Additional Food Service Locations and/or Mobile Carts. The Smithsonian reserves the right to contract with any other individual or entity to provide or manage a food service facility and/or mobile cart(s) of any kind at any location at UHC. Notwithstanding the foregoing, the Smithsonian will give the successful offeror a right of first refusal during the Term to operate or manage new food service facilities and/or mobile carts at UHC (“New Initiatives”), in accordance with the terms in Appendix 4.

Mobile carts, where agreed upon, will be provided by the successful offeror and the successful offeror will operate them according to an agreed upon schedule.

L. Pre-Opening. The successful offeror is responsible for all startup costs, including but not limited to menu development, menu tasting, training, and inventory. Pre-opening expenditures are not subject to buy back protection in the event of termination.

M. Required Investment.

1. Start-Up. The successful offeror shall be required to provide all necessary investment for start-up, including but not limited to investment to support its concepts, service wares, small wares, loose kitchen equipment, and any other investment required to develop sales projected by the successful offeror. The successful offeror shall also provide all necessary investments to improve efficiency, guest flow, or other operating challenges and observed on the Facility tour (any such proposed improvements are subject to advance Smithsonian approval).

2. Capital Investment. The successful offeror shall provide a capital investment to fund the complete renovation and build-out of the Facility. The Smithsonian seeks investment proposals to cover all or most of the renovation/build-out amount. The Smithsonian will consider two different capital investment options, as set forth below in order of preference.

Investment Option 1: The selected offeror funds the project in its entirety and is responsible for the design and renovation/build-out of the Facility. The selected offeror procures and provides all furnishings, fixtures and equipment

(“FF&E”). The selected offeror owns all FF&E and is responsible for all maintenance and replacement costs. The selected offeror removes all FF&E at the conclusion of the contract term. Under Investment Option 1, the Smithsonian anticipates entering into a design and build agreement with the selected offeror for the design and renovation/buildout of the Facility. The selected offeror shall manage and account for the funds it contributes towards the project, shall contract with its own contractors for performing the work, and shall incorporate certain terms and conditions into those contracts (refer to Contractor Terms and

Conditions in the Dropbox). Such terms include, but are not limited to, compliance with the Davis-Bacon Act, 40 U.S.C. §3141 et. seq. 2002), listing the

Smithsonian Institution and the Metropolitan Washington Airport Authority as

“Additional Insureds” on all design and construction contracts, inclusion of

Smithsonian requirements for construction contractors to provide industry-standard warranties for all completed construction work, and incorporation of

Smithsonian special conditions for A/E and construction projects.

Investment Option 2: The selected offeror funds the project in its entirety. The

Smithsonian is responsible for the design and renovation/build-out of the

Facility, with the selected offeror’s input. The selected offeror procures and provides all FF&E. The selected offeror owns all FF&E and is responsible for all maintenance and replacement costs. The selected offeror removes all FF&E at the conclusion of the contract term.

Regardless of which Investment Option is selected, offerors are on notice that the

Facility design and all renovation/modifications must comply with the

Smithsonian design and construction review and approval process coordinated by

Smithsonian Facilities (refer to the Smithsonian Facilities Architect-Engineer

Information Center online at http://www.sifacilities.si.edu/ae_center/index.asp for additional information). A copy of this directive is available in the Dropbox.

The scope of work, architect/engineering firm, general contractor, Facility design, drawings and specifications, and associated budget are subject to the mutual agreement of the parties, and the contract for design services must require that the architect design to the agreed upon budget. In addition, UHC is built on land owned and managed by the Metropolitan Washington Airport Authority

(MWAA) and subject to MWAA’s oversight. Planning and construction of the

Facility, whether designed and managed by the successful offeror or the

Smithsonian, will require adherence to an extensive approval process by the

MWAA. Offerors responding to the RFP must understand that both the

Smithsonian and MWAA have design and construction requirements that must be met for this project.

3. Key Money Investment. The successful offeror shall provide investment to support Smithsonian’s discretionary programs. This investment is anticipated to be paid to the Smithsonian in fixed annual installments.

4. Advertising. The successful offeror shall provide investment to support comprehensive Facility marketing and advertising programs (both external and internal to the museums) in conjunction with the Smithsonian that will attract and drive customers to the Facility.

N. Reporting and Data Sharing. The successful offeror shall adhere to Smithsonian reporting requirements (as set forth in Appendix 4) and provide reports in a time frame and manner acceptable to Smithsonian. The successful offeror shall work with Smithsonian to provide automated daily food sales reporting and/or regular data dumps or downloads.

O. Parking. Offerors are on notice that parking will be provided at no cost for the successful offeror’s employees stationed at UHC.

http://www.sifacilities.si.edu/ae_center/index.asp

P. Services and supplies. The successful offeror shall provide the following services and supplies. In addition, the successful offeror shall provide all item(s) not specifically listed herein and/or in the Sample Concession Agreement that may be necessary to meet the successful offeror’s obligations.

1. Successful Offeror. Services and supplies furnished by the successful offeror shall include but are not limited to:

a. All food, beverages;

b. Adequate staffing and management to effectively manage the food service operation;

c. Sanitation in all food service areas and required cleaning supplies;

d. Point of Sale Systems (including computers that are attached thereto, automated credit-card readers, cash counting equipment, and wireless point of sale capability at all satellite locations such as mobile carts, and any

Smithsonian-approved self-service check-out stations);

e. Computers/software that are not cash register related;

f. Electricity, gas, water, sewage, and HVAC costs (through reimbursement to

Smithsonian details of which are in Appendix 4);

g. Extermination services costs (through reimbursement to Smithsonian details of which are in Appendix 4);

h. Grease storage management and disposal;

i. Inter-unit communication devices, (e.g. walkie talkies, intercoms, or two-way radios and telephones, if necessary);

j. Laundry and linens;

k. Equipment maintenance and repairs/replacements;

l. Office equipment and supplies;

m. Promotions and marketing efforts for the operation, subject to Smithsonian approval;

n. Service ware, stainless steel, plates and glassware (successful offeror will not offer any beverages in single use plastic containers; Grab-and-go food packaging will be subject to Smithsonian review and approval);

o. Signs and menu board, to be approved by the Smithsonian;

p. Small wares, including non-disposable plates and utensils, bowls and glasses;

q. If the Facility is not serviced by a dishwasher, the selected offeror must provide compostable service ware (forks, knives, spoons, plates, straws, etc.)

and such compostable service ware must meet Smithsonian-established standards. Plastic straws are not permitted for use in the Facility.

r. Smithsonian staff and public accommodations for young children and individuals with disabilities;

s. Telephone and facsimile;

t. Transition mats;

u. Trash removal and recycling;

v. Uniforms;

w. Vehicles required to support the operations;

x. Cost of grease duct cleaning will be the successful offeror’s responsibility.

Ducts will be cleaned a minimum of four (4) times per calendar year initially

(cleaning frequency will then be evaluated by Smithsonian based on condition to set frequency for future years). Video scoping of cleaned ducts will be required after each cleaning. Whether or not the successful offeror will be responsible for the grease duct cleaning contract (in addition to the cost) is still to be determined. Grease duct cleaning will be required to meet

Smithsonian standards established in accordance with Fire Code NFPA 96

(National Fire Protection Association).

y. Cost of jetting drain lines and grease trap maintenance will be the successful offeror’s responsibility. Whether or not the successful offeror will be responsible for the drain line jetting and grease trap maintenance contracts

(in addition to the cost) is still to be determined.

z. Successful offeror will be required to participate in the UHC recycling program for cardboard (UHC loading dock includes an area where cardboard is deposited/staged for pick up by a UHC contractor).

aa. If the Smithsonian provides adequate space for composting, the successful offeror will be required to participate in a Smithsonian-approved composting program.

2. Smithsonian. The Smithsonian will provide only the following:

a. Electricity, gas, water, sewage, chilled water, steam and HVAC (usage costs to be reimbursed by the successful offeror); and

b. Extermination services (costs to be reimbursed by the successful offeror).

c. As set forth in Section II.P.1.x and II.P.1.y above, grease duct cleaning, drain line jetting, and grease trap maintenance are services that may be provided by

Smithsonian (to be determined by Smithsonian), with costs to be reimbursed by the successful offeror.

d. Extermination services (costs to be reimbursed by successful offeror)

Any item not mentioned herein is the sole responsibility of the successful offeror.

Offerors are on notice that the Smithsonian will not pay for or subsidize the successful offeror’s employee meal programs at any location.

Q. Technology and Privacy Requirements

1. PCI Compliance / Tokenization

a) Offeror must provide documents which demonstrate that its system meets PCI Compliance requirements listed below and in Appendix 4.

b) Any applicable software application must be on and stay on the Visa PA-

DSS list of validated applications for the duration of the contract term (or, if PCI compliance requirements change during the course of the contract term, vendor must stay compliant and on whatever standard list replaces Visa PA-DDS).

c) The selected offeror must be on and stay on the Visa Global Registry of

Valid Service Providers for the duration of the contract term and is responsible for recertifying every 12 months. If the selected offeror’s PCI compliance status changes and the offeror is no longer PCI compliant, Smithsonian Enterprises must be notified in writing immediately. The selected offeror must provide

Smithsonian Enterprises with a copy of the annual PCI certification report produced by the Qualified Security Assessor.

2. Privacy

a) In addition to PCI compliance, selected offeror must be able to work within any additional guidelines set forth by Smithsonian Privacy Office

(including privacy and security standards as set forth in Appendix 4, Sample

Contract), as well as standard industry best practices regarding privacy issues.

b) The Smithsonian Technical Review Board (“TRB”) must approve selected offeror and its proposed systems for security, privacy, and accessibility.

(Approval requires adherence to standard industry best practices and applicable

Federal guidelines.)

R. The successful offeror shall comply with all applicable federal, state (including the District of

Columbia), and local equal opportunity, wage and tax laws covering its employees; shall be responsible for its labor relations with any trade or union representing its employees; and shall be responsible for resolving all disputes between itself and its employees or any union representing such employees.

S. Transitions of Incumbent Staff. The successful offeror shall use best efforts to provide employment opportunities to any qualified workers displaced due to the award of a contract pursuant to this RFP.

III. UHC BACKGROUND AND GOALS.

Overall Food Service Goal: The overriding objective for food service is to satisfy the diverse needs and tastes of visitors and staff and be sourced as fresh and local as possible. Options for those with allergies or sensitivities are important as is excellent customer service. The successful offeror must be able to serve the UHC’s group sales business which serves groups from 30 – 200. This is a growth area for the museum and food offerings must be high quality and at a reasonable price point. In house catering for daytime events or lunches is desired, and the museum may request that the successful offeror bid on special events and evening catering. The successful offeror should support the UHC’s drive for sustainability along with established recycling programs. Note that the Smithsonian will ban the sale of beverages in single use plastic bottles. Offerors must take this into account when preparing their proposals. While understanding the need to feed the masses, the restaurant operator is expected to make the overall dining experience positive and rewarding. Offerings should be innovative and service should be welcoming. The Facility is expected to be open at all hours when UHC is open to the public, 9:30 am to 5:30 pm.

The Facility will consist of approximately 9,989 square feet of indoor public space located on the main level of UHC. The seating area is 6,729 square feet. Drawings of the space are available in the Dropbox.

Depending on the design and the space required for the back-of-house area, the seating area depicted on the drawings may be reduced slightly from what is depicted on the drawings.

IV. PROPOSAL PREPARATION INSTRUCTIONS AND CONDITIONS.

A. General Instructions and Conditions.

1. The purpose of this RFP is to provide interested parties with sufficient information to enable them to prepare and submit proposals for consideration by the Smithsonian. This RFP is being issued to companies interested in assuming operation of the Facility as described in these documents.

Your proposal should only address the services described herein.

2. The Smithsonian reserves the right to enter into negotiations with any or all companies at its discretion and based upon the best interests of the Smithsonian.

3. The Smithsonian is not responsible for paying any proposal preparation costs or any other costs associated with a response to this request. This RFP does not obligate the Smithsonian to enter into any agreement, nor shall it be construed as authorization for companies to proceed with any work directly or indirectly related hereto.

4. All information and materials submitted in response to this RFP for consideration by the Smithsonian will become the Smithsonian’s property and will be returned only at the Smithsonian’s discretion.

5. Submission Process. Offerors will provide two (2) originals of the proposal along with two (2) thumb drives of the proposal. These materials must be submitted via courier in sealed envelopes or packages addressed to the office specified below, by 2:00 P.M. E.S.T. on or before

February 13, 2019, with the subject matter of the RFP and the name and address of the company clearly identified on the packaging. Materials sent via email, fax or to any other address will not be considered.

a. Proposals shall be sent to:

Susan Engelhardt

Office of Contracting & Personal Property Management

Smithsonian Institution

2011 Crystal Drive, Suite 350

Arlington, VA 22202

b. Questions. All substantive and administrative questions about this RFP must be submitted in writing by email to the attention of Susan Engelhardt at engelhardts@si.edu. Questions must be submitted by 5:00 P.M. E.S.T. on January 16, 2019 in order to ensure a response. Questions and Smithsonian responses having an impact on this RFP will be issued to all offerors in the form of an amendment.

c. Unnecessarily elaborate brochures or other presentations beyond those sufficient to present a complete and effective response to the solicitation are not desired and may be construed as an indication of offeror’s lack of cost consciousness.

To this end, elaborate artwork, expensive paper and bindings, and expensive visual and other presentation aids are neither necessary nor desired. The documents must not be submitted with spiral binding.

d. If a weather event interrupts Smithsonian operations so that proposals cannot be received at the Smithsonian Office of Contracting by 2:00 PM Eastern on

February 13, 2019, the time specified for receipt of proposals will be deemed to be extended to 2:00 PM Eastern on the first business day on which Smithsonian operations resume. Operating status of the Smithsonian Institution can be determined by viewing the

Office of Personnel Management website (Operating Status for federal government offices in the Washington, DC area), at www.opm.gov.

6. Smithsonian reserves the unconditional right to cancel this RFP or to terminate negotiations at any time without cost or liability of Smithsonian. Participation in this RFP or any resulting contract constitutes an affirmative waiver by participants of any claim to proposal preparation costs. Interested offerors should note that this is not a solicitation for a federal contract and is therefore not governed by federal procurement procedures.

7. The Smithsonian reserves the right to reject any and all proposals received as a result of this request. Noncompliance with the instructions and conditions of this RFP may result in disqualification of your proposal. The Smithsonian may refuse to consider any proposal received after the exact date and time specified for receipt.

8. Facility Tour. Offerors are invited (on a voluntary basis) to participate in an on-site

“guided” tour of the Facilities in Dulles, Virginia, on Tuesday, January 8, 2019. The tour will last approximately one hour. The purpose of the tour is to familiarize offerors with the Facility and to provide an opportunity for questions regarding the Facility. Photography will be allowed in the seating area only, not back-of-house. Smithsonian staff will not answer RFP-related questions during the Facility tour, only generic questions about the Facility space. All RFP-related questions must be submitted in writing per the procedures detailed above. Interested firms must submit notification of intent to attend. The notification must be submitted via email by 2:00 P.M. on Friday, January 4, 2019 to the attention of Susan

Engelhardt at engelhardts@si.edu. Tours are limited to three (3) attendees per company. Facility tours will be scheduled on a first come, first served basis. The Smithsonian will attempt to schedule firms at their preferred start times on January 8th to the extent possible.

9. Tastings and Site Visits; Oral Presentations. At Smithsonian’s option, offerors in the competitive range will be expected to provide a tasting and accommodate site tours of existing facilities under offeror’s management during early March 2019. In addition, at Smithsonian’s discretion, mailto:engelhardts@si.edu http://www.opm.gov/ mailto:engelhardts@si.edu offerors in the competitive range may be invited to meet with Smithsonian representatives in person or over the telephone in Washington D.C. during early March 2019 to discuss their proposals and answer questions. The oral presentation may be scheduled to take place on the same date/at the same location as the tasting and site visit. Travel and per diem for any such meeting will be the responsibility of each company.

10. Companies are hereby placed on notice that the only persons authorized to conduct discussions and/or make commitments on behalf of the Smithsonian regarding this RFP and all matters incident hereto are the President of Smithsonian Enterprises and designated representatives from

Smithsonian Enterprises and the Office of Contracting & Personal Property Management.

11. Additional information in the form of several Appendices to the RFP is provided via DropBox. Please send an email to Susan Engelhardt at the email address provided below to request an invite link to the DropBox.

B. Proposal Requirements. The Smithsonian’s requirements and expectations are set forth herein. Offerors should provide proposal submissions demonstrating a clear understanding of the issues and requirements associated with this RFP. Information in the proposal shall be organized in accordance with the major categories of information requested and shall contain appropriate detail, as described herein below. Proposals must specifically include the following:

Part 1: Business, Legal and Financial Terms

1. Pro Forma Statements. Please provide pro forma statements for a three (3) year period. The pro forma statements must contain the following:

a. Detailed sales projections by month. Sales projections should be supported by reference to the per capita sale currently experienced at other cultural institutions where your firm operates food and beverage service or at other similar outlets. Catering sales must be excluded from pro forma statements.

b. A statement of proposed concession fees as described in the Sample

Concessions Agreement, all start up and direct costs, overhead and administrative fees, check averages, and customer counts. Please provide proposed concession fees with, and without, proposed capital investment amounts.

c. A description of the accounting system that will apply to this account, with samples of reports that will be available or provided to the Smithsonian, consistent with Smithsonian reporting requirements. All reports must conform to the Smithsonian’s fiscal year which shall refer to the accounting period of twelve months, beginning on the Sunday falling between September 26 and October 2 and ending on the Saturday falling between September 25 and October 1 of the following calendar year. The Smithsonian follows a “4-4-5” accounting period in which each quarter of the fiscal year is divided into three monthly periods as follows: four weeks in the first “month” of the quarter; four weeks in the second

“month” of the quarter; and five weeks in the third “month” of the quarter

(except for the last fiscal month, which always runs to the end of the fiscal year, regardless of the number of weeks).

d. A reasonably detailed statement of the proposed total capital investment offer for UHC. Investment should cover the total cost of renovation, upgrading, improving and/or remodeling the existing food service space (front and back of house) and carts/kiosks, including the total costs of design, construction, permits, and refurbishment of the kitchen, serving and dining areas, and FF&E. Offerors may propose on either or both of the investment options. Offerors must clearly identify in their proposal which capital investment option(s) they are proposing.

Proposed investment offer must be detailed in major categories, with anticipated schedule. Your capital investment budget must include a detailed breakout of all start-up and pre-opening expenses (including corporate overhead, staff, or related charges, petty cash, change funds, and working capital). In addition, your capital investment budget must include a contingency dollar amount based on your experience with similar large, complex food service operations. Offerors must demonstrate the financial resources to support any proposed investments. The offeror agrees that the extent and nature of any proposed capital investment (under any Investment Option) and scheduling of same shall be mutually agreed upon with the Smithsonian.

e. A reasonably detailed statement of proposed Key Investment offer. The

Smithsonian reserves the right to allocate Key Investment funds as it sees fit.

Offerors must demonstrate the financial resources to support any proposed investments.

f. A reasonably detailed statement of proposed Advertising investment offer. The Advertising investment funds will be allocated in a manner that is mutually agreed by Smithsonian and the successful offeror. Offerors must demonstrate the financial resources to support any proposed investments.

2. Confirm your investment proposal is consistent with the Smithsonian’s architect/engineering and construction guidelines detailed in Appendices 6 and 7, including

Smithsonian and MWAA review and approval processes, construction and related requirements.

3. An explanation of any exceptions or deviations your company will require with respect to Appendix 4 (Sample Concession Contract), attached. Exceptions will not automatically cause a proposal to be deemed unacceptable. However, exceptions not providing obvious benefit to the Smithsonian Institution may result in rejection of a proposal as unacceptable.

4. A statement from your company certifying that there is no material litigation, either pending or threatened, or any contractual or business relationship involving your company or any of its principals, shareholders, partners, officers, or employees which would prevent or limit your company from providing any services described in this RFP, or would hinder your company’s ability to achieve fully the stated objectives and an affirmative statement that your company is responsible and able to conduct business in the District of Columbia and throughout the United States. To be provided as a signed, certified document with your proposal.

5. Representations and Certifications of Offeror. Please complete the

Representations and Certifications form, attached hereto in Appendix 7, and sign and return with your proposal.

6. Insurance. Insurance certificates evidencing that your firm can meet the insurance requirements set forth in Appendix 4 (Sample Concession Contract) and Appendix 6

(Smithsonian Required Contractor Terms and Conditions).

Part II: Technical Information

1. Cafe and Menu Concepts.

a. Please provide general concept and sample menus, setting forth a description (where appropriate) of each menu item. Menus should be consistent with the Facility goals outlined above and should demonstrate a willingness to serve healthy menu options and options for customers with food allergies and sensitivities. Detail proposed physical upgrades, décor enhancements, or other proposed changes to the food service outlets.

b. Provide an appendix that contains a complete price and portion book to include portion size, food costs, and selling prices to be implemented at the

Facility. Provide estimates of price increase strategies over the Agreement term.

Offerors must be able to demonstrate a comprehensive menu development program with standardized recipes and seasonal updates. Confirm that your company will not include products in single use bottles as part of your product offering.

c. Describe your proposed plan for merchandising menu items and any other merchandise items to be sold at the Facility.

d. Describe what food will be prepared from a non-Smithsonian commissary. Specify exactly what foods will be prepared or transported from a commissary, how often they will be delivered, and how far the commissary is from UHC.

e. Explain your organization’s policy for the disposition of leftover food.

f. Provide sample design suggestions for non-disposable flatware, cutlery and rack mounted menus consistent with the existing operations and your concepts. All designs will be subject to Smithsonian approval.

2. Event and Meeting Catering

a. Provide sample priced menus for box lunches and dinners.

b. Provide priced internal conference catering menu.

c. Provide a narrative explaining your catering expertise and experience.

3. Management and Implementation.

a. Implementation. Describe the manner in which you propose to implement the cafe and menu concepts proposed. Provide a proposed timeline from contract award, to transition, including renovation timeline (award anticipated in mid-

2019 with construction anticipated to begin mid-2020).

b. Organization. Please provide the proposed organization chart for the

Smithsonian account and Facility café staffing chart. All such charts should include job descriptions for each position, the designation and resumes for the proposed manager and chef. Provide in detail the names and titles of support staff that shall be involved during the transition and implementation and include the duties that each staff person will fulfill. Describe incentives offered to retain good employees. Note Smithsonian will ask to interview key personnel including

District Management and General Manager. Please take note of security requirements detailed in Appendix 4 (Sample Concession Agreement). This section must also include what in-house capabilities your company has versus what will be outsourced. For any capabilities that would be outsourced, please identify the vendors proposed for outsourcing.

c. Corporate Oversight. Detail how frequently corporate level visitation will occur at the Facility. Detail the frequency of marketing meetings, operations review, and strategy meetings, taking into account the requirements in Appendix

4. Specify who in your firm will be involved in providing corporate oversight for the Smithsonian account. Offerors must demonstrate expertise at all corporate levels of food service management.

d. Marketing. Explain in detail, with examples, the marketing programs that will be used to ensure the success and profitability of the Facility. Offerors must demonstrate a partnership spirit to work with UHC for programs, events and promotions.

e. Utilization of Small Business Concerns. Demonstrate commitment to assure that maximum practicable opportunity is provided to small business concerns, small disadvantaged business concerns, women-owned small business concerns, Historically Underutilized Business zone (HUB Zone) small business concerns and service disabled veteran-owned small business concerns ("SDBs") to participate in the performance of this Agreement, whether through an ongoing joint venture, joint teaming arrangement, a creative and innovative subcontracting plan or otherwise.

f. Diversity/Non-Discrimination. Demonstrate policies that prohibit discrimination on the basis of race, color, sex (including sexual harassment), national origin, religion, age, and disability. Also, describe any actions such as recruitment strategies, training programs, and affirmative action plans that your organization has initiated, proposed or will maintain in order to uphold its commitment to workforce diversity.

g. Accessibility. Demonstrate means for compliance with statutes involving accessibility for people with disabilities including, but not limited to, the

Americans with Disabilities Act ("ADA"), for patrons and staff. Further demonstrate staff training involving reasonable accommodations and maintenance of accessible facilities and items such as menus, ads, and sign layout.

h. Facility and Equipment Maintenance. Offerors must demonstrate a commitment to facility and equipment maintenance and repair at the highest level of operational efficiency. Detail policies, procedures and practices that proactively ensure the highest quality care and maintenance of Smithsonian owned equipment and facilities including but not limited to daily handling, regularly scheduled preventative maintenance, including record keeping thereof and client communications protocols in the event of equipment failure or damage to a facility.

i. Transition of Incumbent Staff. Offerors must indicate whether and to what extent they will consider and retain incumbent staff.

4. Contractor's Technical, Financial and Corporate Resources. Please provide the following:

a. Offices. Include location of corporate headquarters and all corporate regional office(s). Identify state of incorporation. If not a corporation, explain organizational structure and legal status.

b. Sales and Profits. Include gross sales and profits during 2013-2017, as well as financial statements for the last three years. Attach audited annual reports for the last three years.

c. Business Types. Describe all categories of business in which your organization is involved including food service and all other types of business, as well as the percentage of total corporate sales and profits for years 2013-2017 which are derived from the food service business (es). List all food service accounts that exceed $1 million in sales per year.

d. Current Experience. Offerors must demonstrate experience in high volume, efficient food delivery and the ability to manage profitable operations. Describe three (3) comparable (size, volume, cultural institution) food service facilities that your organization currently operates. Provide a narrative of accomplishments at these comparable accounts. Detail your firm’s current catering sales volume in the Washington DC area and address how your reputation and expertise might allow your firm to capture some portion of special event catering at UHC.

e. References. Provide the company name and address, contact name, telephone number and email address of a minimum of three (3) relevant client contracts that Smithsonian may contact for reference and evaluation purposes.

References provided should demonstrate performance similar in scope and scale to the project described herein. Please indicate whether your firm has lost any clients within a cultural institution within the calendar years 2014 – 2018 (to date) and, if so, explain why.

f. Account Evaluation. Describe evaluation programs that will be used to monitor the Smithsonian account and how these programs will provide timely feedback and result in adjustments to the management and operations at the

Facility. Such programs may include, but are not limited to, sample customer satisfaction surveys and related computer generated programs. Please provide the frequency with which said programs will be implemented and provide samples of such programs currently used by your firm.

g. Corporate Resources. Describe the corporate resources, if any, that will be made available to the Smithsonian for this account on a regular basis for consulting on items such as, but not limited to, promotion ideas, design ideas, and marketing assistance. Describe type of consultation expertise, projected consultation frequency, consultation product, and the interface with on-site management team(s).

h. Cleaning, HACCP, and Sanitation Practices. Please describe the cleaning and sanitation practices that will be utilized at the Facility. Manuals may be included as appendices, however, a summary statement demonstrating corporate commitment in addition to expected outcomes is required. Address frequency of items such as heavy cleaning, re-lamping and a carpet maintenance program.

Describe your Hazard Analysis and Critical Control Points (HACCP) program and safety programs.

i. Environmental Awareness. Offerors must demonstrate an ability to support the sustainability goals of the Smithsonian. Describe your company’s approach to supporting the Smithsonian’s sustainability and composting programs, taking into account the requirements in Appendix 4. Include methods such as source reduction, reuse and recycling. Also address topics such as food waste, cardboard, mixed paper, plastics, and conservation of energy and water.

Describe your sustainability reporting structure.

j. Training Practices and Mystery Shopping. Offerors must demonstrate a commitment to superior customer service experience and an on-going training program to guarantee expertise, hospitality, and pride in the product and the workplace. Management and staff should have the desire and initiative to constantly seek improvement in the visitor food service experience. Describe any and all training practices that will be utilized at the Facility. Manuals may be included, however a summary statement demonstrating corporate commitment in addition to expected outcomes is required. Describe mystery shopping programs that will be utilized.

k. Responsiveness; Communication. Describe how you will ensure all

Smithsonian concerns are addressed in a timely and effective manner. Describe chain of communication, response protocol, and amount of time required to respond to Smithsonian inquiries or concerns.

l. Performance Benchmarks. Smithsonian is interested in implementing certain performance and revenue benchmarks in the agreement, and will periodically assess contractor performance through regular review of established metrics. Failure to meet benchmarks or adhere to certain contract terms will result in the assessment of penalties. For example, a penalty may be assessed for unauthorized late opening or early closure of outlets. Repeated failures may result in contract termination. Describe proposed benchmarks and metrics, and associated penalties for failure to meet those benchmarks.

V. EVALUATION CRITERIA.

Subject to the discretion of the Smithsonian, any company may be selected who is deemed responsible, whose proposal conforms to the requirements in all of the RFP documents, and is judged, based on the evaluation criteria below, to represent the best value to the Smithsonian. The Smithsonian will not select a company whose proposal is determined to be unacceptable to the Smithsonian. Proposals will be evaluated against the following factors:

A. Business Legal and Financial Terms, including Pro Forma Statement and Financial

Return to Smithsonian. Pro forma statement must illustrate ability to increase sales and financial return to Smithsonian, percentage return offered and investment evaluation. The investment proposal will be reviewed against the Smithsonian guidelines and requirements provided as a part of this RFP.

B. Cafe and Menu Concepts. Innovation of cafe and menu concepts including consistency with UHC goals, value and variety including seasonal variety, and concepts that address challenges and opportunities observed on the Facility tour, and that are aimed at increasing the per capita sale and total sales at the Facility.

C. Management and Implementation. Proposed implementation and operating plans/approach, consistent with the requirements of this RFP, including local and corporate staffing, staff experience, staffing schedules, training practices, customer service standards and practices, marketing, accessibility, commitment to workforce diversity and utilization of SDBs, cleaning, sanitation, and environmental awareness program(s).

D. Qualifications and Experience. Offeror’s corporate resources, reputation, experience and quality of current facility operations; evidence of commitment to the Smithsonian account, account evaluation procedures and methods.

E. Past Performance. Past Performance of your company (e.g., compliance with contract requirements, quality of products/services provided, timeliness of performance, cost control, business relations). The Smithsonian may use past performance information obtained from other than the references identified by the offeror.

All evaluation factors other than the Business, Financial and Legal Terms factor, when combined, are more important than the Business, Financial and Legal Terms factor. The Smithsonian reserves the right in all cases to be the sole judge determining whether a company meets the evaluation criteria.

VI. DEADLINES

Notification of

Intent to Attend

Facility Tours: Due via email to engelhardts@si.edu by 2:00 PM E.S.T. on January 4, 2019

Facility Tours: Will be held on January 8, 2019.

Questions Due: All substantive and administrative questions about this RFP must be submitted in writing by email to the attention of Susan Engelhardt at engelhardts@si.edu.

Questions must be submitted by 5:00 P.M. E.S.T. on January 16, 2019 in order to ensure a response.

Proposals Due: Two (2) originals of the proposal along with two (2) thumb drives of the proposal must be submitted via courier in sealed envelopes or packages addressed to the office specified above by 2:00 P.M. E.S.T. on or before February 13, 2019.

Tastings & Site Visits: Tastings and site visits are anticipated to be scheduled at offeror’s location during early March 2019.

Oral Presentations: Meetings are anticipated to be scheduled for one hour in Washington, D.C. or via teleconference during early March 2019.

VII. APPENDICES (available via DropBox)

Appendix 1 – Museum Visits

Appendix 2 – Restaurant/Café Sales History

Appendix 3 - Two-Year History of Utility and Pest Control Expenses

Appendix 4 – Sample Concession Agreement

Appendix 5 – Photos of loading dock; drawings of Facility space;

Appendix 6 – Smithsonian Required Contractor Terms and Conditions (includes several attachments:

Project Overview; Special-Cond-for-AE Services; Category 1 Projects; MWAA Guidelines for Issuance of a Certificate of Occupancy; Application for MWAA Construction Permit; various inspection checklists: building code, plumbing, electrical, gas line, wall framing & drywall, listed assemblies, mechanical, sprinkler,hood system; Architect and Engineers of Record; and Permit Checklist)

Appendix 7 – Representations and Certifications of…