NWCA Response to Questions RFP F_B.pdf

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Attached to
Food & Beverage Experience Request for Proposals
Solicitation number
R23-003SY
Issued by
Denver County, Denver City, Colorado

About this file

This document is a Response to Questions document issued by the National Western Center Authority (NWCA) on October 10, 2023, related to a Request for Proposals (RFP R23-003SY) for Food & Beverage Experience Services & Supplies. The RFP seeks a qualified provider to manage food and beverage operations across multiple facilities including the Equestrian Center, Legacy, and Livestock Center, with a planned work commencement date of March 2024 and the Livestock Center slated for completion in the 4th quarter of 2025. The document provides detailed responses to 20 proposer questions covering operational details, financial scenarios, facility specifics, and expectations for the food and beverage service provider.

The RFP includes four financial scenarios to be completed by proposers, with NWCA requesting a flat percentage for food and beverage sales across all facilities. Proposers are expected to provide comprehensive financial submissions, including perspectives on FF&E purchases and capital investments. The document indicates that NWCA will manage facility operations, with the selected provider responsible for delivering food and beverage services ranging from concessions to catering across various venues. The RFP has a goal of 35% LSDMWBE (Local, Small, Disadvantaged, Minority, Women-owned Business Enterprise) utilization, and the proforma financial projections are based on projected attendance across multiple center locations and are not tied to union labor standards.

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RESPONSE TO QUESTIONS

RELATED TO RFP

Response Issued: October 10, 2023

R23-003SY

Food & Beverage Experience Services & Supplies

National Western Center Authority

Contact

Jessica Koenig, Manager of Contracts & Procurements 4701 Marion Street, Suite 401

Denver, CO 80212 303.775.3322 j.koenig@nationalwesterncenter.com

Responses to Proposer Questions – Issued October 10, 2023

Thank you for your questions related to the Food and Beverage Experience Services and Supplies RFP for the National Western Center. We have consolidated questions and responses into one document so that all potential proposers may have access to the information.

# Proposer Question NWC Response

How long will the development of the Livestock Center take? Will a work commencement date of March 2024 allow for input on design and modifications?

The Livestock Center is slated for completion in the 4th quarter of 2025, and Stock Show 2026. Yes, a commencement date of March 2024 will allow for input on design and modifications.

2 Please confirm that all proposers have to submit all four financial scenarios

Yes, that is correct. Attachment G, the proposer submission form should be completed in its entirety.

For Financial Scenario 1 within Attachment G, can you confirm that the percentage paid to NWCA can vary by sales category or building? I.e. Alcohol at X% and Food sales at Y%?

NWCA is requesting a flat percentage for all food and beverage sales for all facilities. If you would like to propose different percentages, you can do so under financial scenario 4 of Attachment G.

Financial Scenario 1: Can you please provide additional context around what the intent is for the Supplies that NWCA provides in this section?

In order for the future agreement to meet the requirements of the safe harbor of a qualified management agreement, and if a revenue share financial scenario is selected, NWCA is required to bear the cost of supplies. NWCA is allowing proposers to define their interpretation of supplies that NWCA would bear the cost for on Attachment G.

Do proforma sales projections include sales tax and service/administrative charges of any kind?

No, the proforma sales projections do not include sales tax and service/administrative charges of any kind

Does the NWCA proforma financial statement assume that union labor will be required for the food and beverage operations?

No, the proforma numbers are based on nonunion industry standards

Will proposer’s financial submissions be evaluated against the proforma financial statement included as Attachment E?

No, proposer’s financial submission will not be evaluated against the proforma.

Does NWCA have a strong preference for the proposer purchasing FF&E or providing a capital investment?

No, NWCA is open to either the proposer purchasing FF&E or providing capital investment, or a combination of the two.

P&L for 2018, 2019, 2020, 2021, 2022, 2023 with breakdown by category (ex.

food, beer, liquor, etc.) as well as revenue source (ex. concessions, catering)

Please see Attachment E, the proforma.

Please provide P&L projections for years 2024-2026

Please see Attachment E, the proforma.

The current number of service locations for concessions and catering

Please see Attachment D, Maps and Facilities.

LSDMWBE utilization percentage against target for current and preceding 3 years

Per the RFP, the goal is 35%. NWCA did not have a food and beverage operator in the past three years so the requested data does not exist.

Please provide a list of all current local vendors/partners and a summary of products sourced from them. Please include all LSDMWBE vendors.

Please see the following link as a resource of LSDMWBE vendors:

https://denver.mwdbe.com

What operational support is currently provided to the F&B provider by the venue? Is there a fee associated with these services?

This will need to be determined and is subject to negotiation and mutual agreement. At this time, NWCA has limited operational support available for the food and beverage operator.

Attachment E references financial models, which appear to be geared towards point-of-sale transactions. What is the expectation for non-point-of-sale transactions, such as catered events contracted and sold to a client as an event?

The revenue for food and beverage services provided at a catered event or other event inclusive concessions would be included in gross receipts and used in the calculation of proposals as outlined in Section 4. Financial Model Scenarios and submitted in Attachment G.

Are you able to identify the specific plan for each building and identify what type of food service is needed in each building? Such as bar, point-of-sale, and event catering.

Equestrian Center – Concessions stands with grilled and fried items, concession fare, snacks, fountain soda, packed, and draft beers. Portables with package snacks and drinks. Point of sale at each concession and portable locations.

Legacy – Premium club spaces with ala carte menu kitchen, full service bars, catering, and event offering throughout venue. Point of sale at each bar and the restaurant location.

Livestock Center - Concessions with grilled and fried items, concession fare, snacks, fountain soda, packed, and draft beers.

Portables with package snacks and drinks. Premium clubs and suites. Small restaurant venue. Full service bars. Catering offerings throughout area and exhibition center.

https://denver.mwdbe.com/

Attachment E - What are you basing the proforma numbers on? Does this include events and if so, where do these numbers come from? Is this for the full year or heavily concentrated in January during the stock show?

Proforma numbers are based on projected attendance for the Equestrian Center, Legacy, Livestock Center, Triangle, SYEC & Yards.

In the Proforma, music, entertainment and marketing are mentioned. Will the food and beverage provider be responsible for managing these areas?

No.

Based on the Scenarios, it appears that the company will report to the NWCA who will manage the operation. Can you explain what your expectations are of the contracted food service provider? It does not appear that there is a scenario where the food and beverage provider would have autonomy to manage the operation and pay a commission to the NWCA. Is this correct?

NWCA will manage the operation of the facilities. NWCA’s expectations are that the operator will provide food and beverage services for the facilities for everything from concessions to catering for a variety of different events. In Attachment G, proposers may suggest a financial scenario not previously contemplated under financial scenario 4.

During the Stock Show, will the selected provider manage the food carts outside of the National Western Center?

Yes, in the facilities detailed in Attachment D.

Responses to Proposer Questions – Issued October 10, 2023

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