Request_for_Proposals_-_SMF_Food_&_Beverage_Terminal_B_Pre-Security.pdf

SACRAMENTO COUNTY DEPARTMENT OF AIRPORTS

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Food & Beverage

Terminal B Pre-Security

November 22, 2024

Request for Proposals SMF Pre-Security Food & Beverage 2024

PREPARED BY

Sacramento County Department of Airports

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TABLE OF CONTENTS

SECTION 1: INTRODUCTION 2

Introduction 3

Mission and Vision 4

Pre-Security F&B Program goals 5

Timeline 6

SECTION 2: AIRPORT INFORMATION 7

Airport information 8

Airlines and service 11

SECTION 3: TERMS AND REQUIREMENTS 13

Business terms 14

Capital investment 20

Mid-term refurbishment 20

SECTION 5: OPERATING COSTS 21

Utilities, taxes, and insurance 22

Airport ID badging 23

Employee parking 23

SECTION 6: LEASING OPPORTUNITY 24

Package details 25

RFP program requirements 30

Effective period of proposals 34

Withdrawal of proposal 34

Communication 34

Submission requirements 35

Evaluation criteria 39

SECTION 7: DESIGN AND CONSTRUCTION 49

Design and construction 50

SECTION 8: DISCLAIMERS 52

SECTION 9: LIST OF ATTACHMENTS 55

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SECTION 1: INTRODUCTION

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INTRODUCTION

The Sacramento County Department of Airports (Department) invites qualified food and beverage (F&B) operators to submit proposals to operate a café and bar & restaurant at Sacramento International Airport (Airport) located pre-security within Terminal B. The Department desires to enter into a Food and Beverage Concession Agreement (Agreement) with an operator to remodel, operate, and maintain food and beverage services for Airport customers and employees.

The selected proposer will operate this location with concepts that reflect the region’s identity as “America’s Farm-to-Fork Capital”, while maintaining a Sacramento sense of place with local and/or regional branding, meeting the needs and preferences of customers at fair price points, offering a variety of options, and making the customer feel valued and appreciated. The selected proposer will work in parallel with the Department to uphold its mission and vision of being “the most loved airport” by “putting people at the center of every trip, every experience, every day”.

The selected proposer will work quickly to open these spaces to showcase local and regional beverages and dishes, supporting Farm-to-Fork practices and principles utilizing fresh, seasonal, and sustainable ingredients and products. The selected proposer will comply with the County’s environmental and sustainability goals, such as reducing waste, energy consumption, and greenhouse gas emissions.

This Request for Proposals (RFP) document provides the project details, requirements, criteria, timeline, and guidelines applicable to the preparation of a complete response.

We look forward to your proposals and working with you on this opportunity.

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MISSION AND VISION

Mission & Vision

Our Mission: Our Vision:

To put people at the center of every trip, every experience, every day.

To be the most loved airport.

SMF Values

Start with the Customer

Our passengers are our top priority and everything we do should help us in delivering an experience that makes them feel at home.

Make Something

Better Today

We refuse to settle for the way things are and see every day as an opportunity to improve.

Collaborate We are stronger together. We’re able to accomplish more for our customers and each other through shared goals and mutual support.

Be Transparent We communicate internally and externally with unwavering candor, honesty, and respect.

Own It

We are a team of doers. We take pride in what we do and we take responsibility for the opportunities placed before us.

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PRE-SECURITY F&B PROGRAM GOALS

The available pre-security food and beverage concession spaces in Terminal B at the Airport present a unique operating opportunity. Up for lease are two currently vacant spaces that were previously occupied by a café and a bar & restaurant.

Each space has its own front of house identity but are connected via back of house operations. The Department is seeking one operator that can successfully open both spaces and deliver high-quality, local food and beverage offerings to serve

Airport employees as well as traveling and non-traveling customers.

The Department is focused on achieving the following goals from the pre-security food and beverage locations:

• Affordable: These establishments cater primarily to airport employees and individuals dropping off or meeting passengers.

• Quick: Airport employees on break, travelers seeking a quick pre-security bite, and other guests will expect expedited service.

• Healthy and savory: Guests should enjoy a diverse selection of grab-n-go options, sharable bites and appetizers, breakfast, lunch, and dinner options.

• Local: Source high-quality ingredients and beverages from local suppliers when possible, promote seasonal or specialty menu choices, and offer rotating local beer, wine, and cocktail selections.

• Comfortable: Guests spending extra time in the café or bar & restaurant should feel welcome, comfortable, and enticed to return.

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TIMELINE

Activity Date Time

RFP Published November 22, 2024

Pre-Proposal Conference (optional) December 6, 2024 10:00am PST

Site Visit (optional) December 11, 2024 10:00am PST

Deadline for Questions January 10, 2025 4:00pm PST

Addenda Responses to Questions Posted January 17, 2025 4:00pm PST

Proposals Due February 21, 2025 4:00pm PST

The following events are reference placeholders only

Selection Committee Evaluation of Proposals

March 2025

Interview Finalists March 2025

Recommendation to Director March 2025

Recommendation to Board of Supervisors

May 2025

Agreement Executed, Design Review, Permitting & Construction May 2025 and beyond

The Department reserves the right to modify, at its sole and absolute discretion, this schedule and any specific time-of-day deadlines, including the selected proposer’s agreement start date.

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SECTION 2: AIRPORT

INFORMATION

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AIRPORT INFORMATION

Department Overview The Department is responsible for planning, developing, operating, and maintaining the airports that comprise the Sacramento County Airport System

(Airport System):

• Sacramento International Airport (SMF)—Commercial passenger traffic

• Mather Airport (MHR) —Air cargo and general aviation

• Executive Airport (SAC)—General aviation

• Franklin Field (F72) —General aviation and training activities

The Airport System is a self-supporting, enterprise fund of the County that is not supported by the County’s General Fund. No local tax dollars are used to fund or operate the Department’s airports. Airport tenant and user rents, fees, and charges support the operating and capital budgets for the Airport System.

The Food and Beverage Program contributes to the financial sustainability of the

Airport System, as it generates revenue from Airport tenant and user rents, fees, and charges.

General Information SMF opened in 1967 with one runway and five carriers. The Airport now occupies nearly 6,000 acres, has two widely spaced parallel runways, and offers more than

140 daily nonstop flights on 13 domestic and international carriers to 41+ destinations. The Airport’s economic impact on the area is approximately $4 billion per year. The Federal Aviation Administration (FAA) ranked the Airport as the 40th busiest airport in the United States based on enplanements in 2019 and 37th in 2023 (preliminary ranking). Approximately 5,000 people are employed at the Airport.

The Airport is served by Interstate 5 and Highway 99 and is located approximately 12 miles from downtown Sacramento – just 15 freeway minutes to the capital of

California and the hub of government and commerce within the Greater Sacramento Region. Located adjacent to the Airport is Metro Air Park, consisting of 1,300+ acres of fully entitled and zoned commercial, industrial, manufacturing, distribution, office, and R&D space.

The Airport, classified as a medium air traffic hub by the FAA, is the primary commercial airport facility serving Sacramento County and its seven neighboring counties. The Airport primarily serves origin-destination passengers and draws passengers from a 15-county outlying area that comprises a secondary air service

57 9 area. In 2023, an estimated 95% of enplaned passengers were origin-destination passengers. (Source: Airline Data, Inc.)

Terminal Facilities and Services Two airline terminals (Terminal A and Terminal B) provide a total of 32 jet-level boarding gates. Both terminals offer post-security coffee, newsstand, specialty retail, and food and beverage concession services. Terminal A has a pre-security coffee concession and Terminal B offers pre-security coffee, news, and specialty retail services.

Wi-Fi Internet access is available to the public free of charge throughout both terminals. Language services for non-English speakers, accessible accommodations and services, including AIRA (a visual interpretation service for the visually impaired) are provided throughout the terminals.

The Airport provides nursing lounges and pet relief areas post-security in both terminals as well as courtesy phones, vending machines, and pre- and post-security ATMs in both terminals. Across the Airport, passengers and visitors can view art collections from internationally renowned artists.

Ground Transportation

Ground transportation at the Airport includes:

• Taxis: Sacramento Independent Taxi Owners Association (SITOA)

• Rental car companies: There are three on-airport rental car companies operating a total of 12 brands.

• Transportation network carriers: Uber, Lyft, and Wingz

• Peer-to-peer car share: Turo

• Inter-terminal shuttle service to various Airport locations such as terminals, parking, and the consolidated rental car facility

• Regional Transit and Yolobus buses provide daily public transit service to and from surrounding communities and the Airport.

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Concessions

Spaces

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AIRLINES AND SERVICE

The Airport averaged 153 departing flights per day, enabling 6.5 million passengers to reach their destination in 2023 from Terminals A and B. Total 2023 enplanements equated to 93% of 2019 enplanements.

Terminal B Airlines and Market Share The following table lists airlines currently operating out of Terminal B. The airline locations at the Airport are subject to change at any time prior to award of the concession agreement, and at any time during the agreement terms.

Airline Domestic/International Market Share %

AeroMexico International 1%

Alaska Airlines Domestic/International 6%

Frontier Domestic 1%

Hawaiian Airlines Domestic 3%

Horizon Air Domestic 2%

Jet Blue Domestic/International 2%

Southwest Domestic/International 79%

Spirit Domestic 4%

Volaris International 3%

Sources: 2023 calendar year airline reported enplanements solely for Terminal B; Sacramento County Department of Airports

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Catchment Area

Note: Includes zip codes with SMF share of nonstop flight markets equal to or greater than 40% or closest to SMF Source: Campbell-Hill Catchment Area Study 2022

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SECTION 3: TERMS AND

REQUIREMENTS

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BUSINESS TERMS

A. Term

The agreement term is ten (10) years.

B. Percentage Rent The selected proposer will pay a percentage of monthly gross revenue as

Rent in the amount of five percent for food and beverage sales and 16% for any retail sales beginning on the first day the first concession unit is open for business at the Airport, extending through the first six full months of operations. Beginning on first day of the seventh full month the selected proposer will pay a percentage of monthly gross revenue as Rent in the amount of 10% for food and beverage and 16% for any retail sales.

C. Participation in Airport-wide Programs If implemented by the Department, the selected proposer will be required to participate in any relevant airport-wide systems, applications, or programs, including, but not limited to, loyalty programs or mobile ordering systems for food and beverage purchases. The Department expects to implement an ongoing customer service review program that may require concessionaire inclusion of a QR code or similar on customer receipts, or placement of survey information at the customer service stations. Cooperation with such programs is required.

D. Hours of Operation

To support the Airport’s Mission “To put people at the center of every trip, every experience, every day”, concession operations must be open to the public seven days a week. Hours may vary with flight schedules, holidays, and customer demand. The hours of operation for the café will cover early mornings into the afternoon and the bar & restaurant will be open for lunch to late evenings, or as customer demand dictates. The Director of Airports shall have the authority to modify hours of operation for these operations.

E. Support Space

Support space for the selected proposer is available to lease in Terminal B.

The Director of Airports shall have the authority to assign support space to the selected proposer for office and/or storage uses directly related to Airport operations. The support space is located on the ground level of

Terminal B, on an as-available basis.

Support space will be leased in as-is condition. As further described in the

Agreement, the selected proposer will be responsible for constructing, at its expense, storage, office space, and other desired tenant improvements, including any reduction in pre-established size of space, in its leased support

57 15 space to meet its needs. Any such tenant improvements are subject to the Department’s prior written approval and shall be completed in accordance with the concession agreement.

Support space will be available at the then-current rate at the time of concession agreement award. The rate at RFP issuance is $48.08 per square foot annually ($4.00676 per square foot per month) and on each July 1 during the Term hereof, as well as during any holdover period, the annual rate per square foot shall increase by three percent each July 1st. While the selected proposer is not obligated to rent support space, the Director of Airports may, at their sole discretion, require the leasing of support space if the selected proposer is unable to keep its equipment, goods, and supplies within the leased premises.

F. General Requirements The selected proposer shall have a non-exclusive right to install appropriate improvements in accordance with the Agreement (Appendix 5). The selected proposer will be required to plan, design, build-out, maintain, manage, staff, and stock, at its sole cost, in accordance with the Agreement.

Design, furnishings, fixtures, equipment, and finish materials for all tenant improvements must be approved by the County through an established review and approval process prior to construction and installation. All products and services provided and/or sold must receive the County’s prior written approval.

G. Common Area Maintenance (CAM) Fee In addition to Percentage Rent and the MAP fee, Concessionaire shall pay a

CAM charge to the County in the amount of three-tenths percent (0.3%) of Gross Revenues for maintenance of back-of-house concession, food court seating areas for maintenance of common seating, break, and locker areas.

The CAM charge is payable monthly with the Percentage Rent payment.

Concessionaire acknowledges and agrees that, from time to time, the County may need to increase Concessionaire’s CAM charge based upon cost recovery calculations and shall do so upon thirty (30) days prior written notice to Concessionaire. However, at no time shall the CAM charge be more than one percent (1.0%) of Gross Revenues.

H. Merchant Association Program (MAP) Fee

In addition to Percentage Rent, Concessionaire shall pay an annual MAP fee in the amount of three-tenths percent (0.3%) of Gross Revenues to market and promote the Airport concessions to the community and traveling public, maintaining concessions customer satisfaction surveys and any other reasonable and necessary expenses related to the benefit and promotion of the Airport concessions program as approved by the Director. The MAP fee

57 16 shall be payable monthly with the Percentage Rent payment.

Concessionaire acknowledges and agrees that, from time to time, the

County may need to increase Concessionaire’s MAP fee based on cost recovery calculations and shall do so upon thirty (30) days prior written notice to Concessionaire. However, at no time shall the MAP fee be more than six-tenths percent (0.6%) of Gross Revenues.

I. Waste Collection Fee The selected proposer shall dispose of all garbage, food waste, solid waste, recyclables, and other refuse in containers designated by the County in assigned common areas. The selected proposer shall not place or leave or permit to be placed or left in any part of the common areas: garbage, food waste, solid waste, recyclables, and other refuse unless otherwise authorized by the County to do so.

The selected proposer will be required to adhere to the standards and procedures set forth in the Department’s Waste Management Policy

(Appendix 6).

The Department may, at any time, institute a waste disposal program and may thereafter require the selected proposer to pay a trash removal fee to be determined by the Department based on cost recovery calculations.

Selected proposer will be required to purchase and maintain their own waste removal compactor bins.

J. No Tenant Improvements Allowance

County funds for tenant improvements are not available for the concession program.

K. Sales Reporting The selected proposer will be required to provide detailed weekly, monthly, and annual sales and number of transactions reports throughout the term of the Agreement. The Department requires that the selected proposer utilize a computerized reporting system designed to generate timely sales, transactions, and rent reports. Selected proposer shall cooperate fully with the implementation of sales, transactions, and rent reporting requirements as more fully described in the Agreement.

L. Airport Food and Beverage Pricing Policy

The Department will require the use of Fair Market Pricing described below:

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Fair Market Pricing Policy The Department’s Food and Beverage Program aims to provide a variety of high-quality, diverse, and sustainable options for customers at reasonable prices. The Department recognizes that different types of food and beverage products have different costs, profit margins, and customer demand, and that Airport concession customers may benefit from menus crafted specifically for the airport environment.

A fair market menu should be priced in a way that customers on a budget can find items that provide value at an affordable price, while providing items that customers would consider fair for a pre-security airport environment. A fair market menu may include a highly compelling employee meal plan or include discounted meal packages for employees.

Under the Fair Market Pricing Policy, the Department will allow concessionaire to set prices consistent with the following guidelines:

Required:

Affordability: Concessionaire should offer items that are fairly priced providing value, variety, and convenience, such as value meals, smaller sizes, special deals, daily specials, or happy hour offers. Some value items may be offered through short term offers, but affordable and value focused items should at all times be available to customers.

It is important that value items be of high quality and attractive to customers opting for these options.

Optional:

Diverse: Concessionaire should offer a balanced mix of food and beverage products that cater to different customer cultural backgrounds, preferences, and needs including, but not limited to vegetarian, vegan, kosher, halal and gluten-free as well as options for health-conscious diets and various cultural backgrounds.

Creative: Concessionaires should adjust their offerings and prices based on seasonality, availability, and demand. They should also consider creating special limited time offers and promotions, create special dining packages, or offer drink and food pairings.

Concessionaire will be required to submit to the Department, on an annual basis, a written review of pricing and menu items describing how the pricing and menu meets customer needs. The written review should consider customer feedback and overall customer satisfaction ratings. The

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Department may conduct additional market research and benchmarking to compare the prices and quality of food and beverage products at the Airport with those at comparable airports and local markets. The Department may also conduct customer satisfaction surveys to measure the impact of the pricing policy on the overall Airport experience. If said survey concludes that any prices being charged by the concessionaire at the Airport are not in compliance with this Fair Market Pricing Policy, or that any service or commodities being offered by concessionaire are of too low quality, the Director of Airports shall then have the right to require price adjustments or improvement in quality of the concessionaire’s service. Upon receipt of written notice from the Director of Airports, the concessionaire shall thereafter charge the appropriate prices or improve quality as directed by the Director of Airports.

This policy is intended to promote a fair, competitive, and sustainable food and beverage program at the Airport that benefits concessionaires, customers, and employees.

M. Delivery Information The selected proposer will be responsible for delivery of their products and supplies. There is one dock area located landside at Terminal B for receiving and subsequent distribution of goods to storage areas and concession locations in the terminal. The Department, from time to time, may issue terminal delivery procedures that best allow for the safe movement of delivery vehicles at the Airport. The Department may issue schedules of acceptable delivery times, locations, and points of access, and vehicle size restrictions by written notice. Please be aware that the Airport central warehouse is not currently available for concession deliveries.

Requirements for security screening of employees and goods are established by the Department of Homeland Security and may be changed from time to time. Concessionaires shall be responsible for complying with existing and future requirements as well as any costs associated with such compliance, including, without limitation, future funding of a centralized receiving program.

The Airport operates under the security direction of the Transportation Security Administration (TSA). TSA has in the past issued operational bulletins and restrictions upon notice that can impact concession operations.

The Department is obligated to comply with these restrictions. The

Department will communicate new restrictions and TSA-mandated procedures with concessionaires as necessary and will work to ensure concession operations are minimally impacted.

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The Department plans to develop a Centralized Receiving and Distribution Center (CRDC) that will serve as a single point of entry for all vehicles and persons with product deliveries to the Airport’s secured areas. The CRDC will help the Department comply with federal regulations contained in 49

CFR §1542 that require screening and inspection of vehicles and persons entering secured areas. The CRDC will be funded by a user fee charged to concessionaires to cover the CRDC’s operation costs. The user fee will be determined by the Department in consultation with the concessionaires and other stakeholders. Should the Department determine that pre-security concessions businesses will not be required to utilize the CRDC, these businesses will be notified by the

Director of Airports of their exemption from CRDC user fees.

N. ACDBE Status The Department encourages all businesses, including those owned and controlled by one or more socially and economically disadvantaged individuals that can provide the desired product or service, to submit a proposal. If you are currently certified as an Airport Concessions

Disadvantaged Business Enterprise (ACDBE), please include a copy of your ACDBE certification letter along with your proposal. Certification may happen at any time prior to award of an agreement; however, ACDBE status will not be considered in evaluating and scoring proposals. This information will be used for ACDBE utilization tracking purposes only.

If you are a business owned and controlled by one or more socially and economically disadvantaged individuals and you are not currently certified as an ACDBE firm, but you wish to receive information on how to become certified, please contact the State of California, Department of Transportation, Civil Rights Program at either (916) 324-1700 or (866) 810-

6346. You may also visit their website at http://www.dot.ca.gov/hq/bep/index.htm.

http://www.dot.ca.gov/hq/bep/index.htm

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CAPITAL INVESTMENT

The selected proposer will be responsible for providing all capital investment for construction, operation and maintenance of the spaces awarded, including but not limited to furniture, fixtures, and equipment and must follow the standards in the

Department’s Tenant Design Manual, Concourses A & B, attached as Appendix 6, for material quality and concept designs. The selected proposer should be aware that the Airport is subject to high pedestrian traffic and intense daily use from passengers with luggage, which causes additional wear on furniture, fixtures and finishes. To ensure that the concession spaces are attractive, functional, and durable, the Department requires the use of high-quality material and finishes that can withstand the continual use and wear by customers. Additionally, the concession spaces must comply with all applicable requirements of the Americans with Disabilities Act (ADA).

The selected proposer will be required to document their construction, equipment, and repair costs and submit the final documentation to the Department within the time frame and in the format described in the Agreement.

Proposers are encouraged to seek experienced professional advice regarding the costs and challenges of tenant improvements at the Airport, and to familiarize themselves with applicable building and permitting requirements of the County.

MID-TERM REFURBISHMENT

A mid-term refurbishment is required by the Agreement and is a firm commitment to reinvest in the concessionaire’s spaces that includes replacement of worn and damaged furniture, fixtures, and finishes.

The mid-term refurbishment is not the same as ordinary or deferred maintenance, which is an ongoing requirement, but instead constitutes an additional capital investment by concessionaire to renew and replace worn surfaces. One mid-term refurbishment will be required and should be completed between years five and six following the opening date of the concession unit, or as otherwise negotiated with the Department.

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SECTION 5: OPERATING COSTS

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UTILITIES, TAXES, AND INSURANCE

Utilities The selected proposer, at its expense, must install individual utility meters where required by the Department. The selected proposer will be responsible for all utility costs (e.g., water, electricity, and communications) associated with its leased premises.

Taxes Any and all fees and charges of whatever character that may be levied, assessed, or charged by any governmental entity, including the County, shall be paid directly and in a timely manner by the selected proposer.

Minimum Insurance Requirements The selected proposer must maintain, throughout the term of the Agreement, insurance of the types and in the amounts prescribed in the Agreement. General liability shall be on an occurrence basis (as opposed to claims made basis).

Minimum limits and structures shall be:

Insurance type Minimum limit

General Aggregate $2,000,000

Products-Completed Operations

Aggregate $2,000,000

Personal and Advertising Injury $1,000,000

Each Occurrence $1,000,000

Fire Damage $100,000 (or replacement value of portion of building you lease, whichever is greater)

Liquor Liability $1,000,000

Automobile Liability $1,000,000 for landside vehicles;

$5,000,000 for airside vehicles

Workers’ Compensation Statutory requirements of the State of California.

Employer’s Liability $1,000,000

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Additional information regarding insurance requirements is provided in the draft Agreement (Appendix 5)

AIRPORT ID BADGING

All onsite Airport employees, whether they work pre- or post-security, are required to wear an Airport Identification (ID) badge. The current cost to obtain an Airport

ID badge from the Department is $42.00 per employee per annum. This rate is subject to change.

Airport ID badges are administered by the Airport Badging Office and require submittal of fingerprinting and background clearance. The process takes on average two to four weeks. Obtaining an Airport ID badge is a requirement for working onsite. The Airport Badging Office administers the training Airport ID badge training is administered by the Airport Badging Office and details requirements on properly utilizing an Airport ID badge. Security infractions or misuse of the Airport ID badge can result in revocation of the Airport ID badge.

This would result in the employee not being able to be onsite at the Airport.

Airport badging link: https://sacramento.aero/smf/about/airport-badging

EMPLOYEE PARKING

Employee parking is available for all onsite Airport employees for use while they are on duty at the Airport. The cost for employee parking is currently $15 per employee per month in employee parking lots. This rate is subject to change.

https://sacramento.aero/smf/about/airport-badging

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SECTION 6: LEASING

OPPORTUNITY

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PACKAGE DETAILS

This section provides details for the F&B leasing opportunity available at the

Airport; the Department’s concept, branding, buildout and/or improvement requests and preferences, requirements for each unit, and current buildout information relevant to the Department’s requested and/or preferred concepts.

The Department requires all concession employees who interact with customers to deliver excellent service that is fast, friendly, and efficient. Employees must be familiar with the brand, standards, values, policies, practices, and products of the concept where they are employed. Employees must maintain excellent customer service and professionalism when encountering periods of high demand and customers who are confused, flustered, or in a hurry due to the airport environment.

The Department expects these concepts to utilize technology to enhance the customer experience and operational efficiency of the unit. This may include, but is not limited to, mobile order and payment options, digital menu boards, tabletop tablets and self-service kiosks, and contactless payment options. Where the streetside equivalent concept utilizes a smartphone app, loyalty or rewards program, etc., the Airport concept should too. Additionally, proposers should utilize technology to enhance food safety, monitor food temperature, track inventory, reduce waste, and monitor concept performance.

Proposers are encouraged to use fresh, local ingredients and highlight

Sacramento’s Farm-to-Fork culture by connecting restaurants with nearby farms, suppliers, brewers, distillers, and wineries. Proposers should promote this connection within the restaurant and on menus where appropriate. Additionally, proposers should consider offering desirable, locally branded merchandise to further enhance the customer experience and generate revenue.

The Department is seeking local or regional brands for the specific pre-security location listed within this section. For purposes of this RFP, a “local brand” is defined as a restaurant that originated and is primarily operating in the

Sacramento Metropolitan Area. A “regional brand” is defined as a brand that does not fall within the Local brand definition but does not have locations throughout the West Coast, Midwest and East Coast of America.

The Department has defined two concession spaces identified by unit numbers in the table below as one individual package. The units are connected via shared back of house including kitchen, prep areas, dishwashing, and cold storages. The proposer must be aware of this unique feature and understand that the units cannot be separated in the current build configuration.

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The units were originally built as a café and bar & restaurant and will come with two walk-in cold storage units, one ice maker, countertops, undercounter refrigeration units and storage, tables, chairs, barstools, some kitchen equipment, and more. The equipment is provided “as is” without warranties or representations of any kind, whether express or implied. The Department does not guarantee the condition, functionality, adequacy, suitability, value, or performance of the equipment.

The Department’s expectation is that the selected proposer will work within the existing build structure of these units to expedite reopening and minimize upfront costs.

Unit New Concept Theme Square Feet Total Square

Feet

3252 Café 1,538

3345 Bar & Restaurant 1,191 3,754

3248/3344 Back of House 1,026

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Unit 3252 Café

Concept and Branding: Counter service local or regional branded café and/or deli serving coffee products and food items typically found in coffee shops, cafés, and delis to include breakfast and lunch dayparts.

Menu and Pricing: Hot and cold coffees and teas, breakfast sandwiches, burritos, baked goods, yogurt and fruits, muffins and bagels, freshly prepared sandwiches and salads, grab-and-go items, and snacks. Pricing should be affordable, inclusive, and reflect a fair market value equivalent to known and comparable streetside locations.

Unit 3345 Bar & Restaurant

Concept and Branding: Full service local or regional branded bar and restaurant offering classic and modern takes on dishes for lunch and dinner dayparts.

Menu and Pricing: Appetizers and bar bites, sandwiches, burgers, soups, salads, and more. In addition to a well-executed food menu, the Department requires an assortment of locally sourced beer, wine, and spirits as well as national brands.

Pricing should be affordable, inclusive, and reflect fair market value equivalent to known and comparable streetside locations.

Special Focus Areas for Both Concepts:

Order and wait time: Wait times should be at a minimum with a heavy focus on ticket time and expedited service. Airport employees, departing and arriving passengers, and other customers require quick and courteous service.

Buildout/Improvements: The existing spaces were constructed around 2011 but have been vacant since March 2020. The selected proposer will need to provide improvements and repairs such as paint, wallpaper, digital menu boards, furniture, fixtures, appliances, cooking equipment, refrigeration, beverage lines, and more.

Retail Components: Proposers are encouraged to integrate a retail component that offers locally branded merchandise to capture additional business. The retail component is optional and should only be proposed if it can be seamlessly incorporated within the concept without compromising the efficiency and attractiveness of the space.

Location & Customers: The units are located near the automated people mover before the security checkpoint in Terminal B near convenient sitting areas to the north and south of each unit, traditionally used by people waiting for arriving

57 29 passengers and central to heavy foot traffic from departing and arriving passengers. These units are also easily accessible to nearly 5,000 badged employees at the Airport.

The Airport requires proposers to create compelling menus with attractive prices to convert waiting passengers into customers. Proposers should market these concepts to encourage early arrivals, extended visits with drop-offs, and appeal to arriving passengers seeking a meal or beverage before their next destination.

Hours: The selected proposer can extend hours beyond the lunch daypart for the café and open the bar and restaurant earlier if business patterns necessitate additional service or at the Director’s written authority.

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RFP PROGRAM REQUIREMENTS

A. Airport Concession Disadvantaged Business Enterprise Program

(ACDBE)

The Department welcomes proposals from all businesses, including those owned and controlled by socially and economically disadvantaged individuals who can provide the desired product or service. If you are an Airport

Concession Disadvantaged Business Enterprise (ACDBE) certified by the State of California, please include a copy of your certification letter with your proposal. This will help the Department track its ACDBE participation.

The County does not discriminate based on race, color, sex, or national origin in the award or performance of this agreement. The requirements of 49 CFR Part 23 apply to this RFP. Airport businesses must make efforts to meet ACDBE goals by exploring all available options for direct ownership arrangements with ACDBEs. Joint ventures and other partnership arrangements with ACDBEs are acceptable if they comply with FAA guidance.

B. ACDBE Goal

The Department has an ACDBE race and gender-neutral goal of fifteen percent (15%) of total annual gross receipts of the Airport’s concessions program, excluding rental car operations. The proposer may submit Attachment G (Airport Concession Disadvantaged Business Enterprise

(ACDBE) Utilization Plan), if appropriate.

C. Small Business Goal The FAA is committed to providing maximum opportunities for small businesses in its own solicitations and in airport concession programs and the County Board of Supervisors (Board) approved Resolution No. 2021-

0522, which created a small business tenant lease category based on the

$56,420,000 revenue cap defined by the U.S. Department of Transportation and the FAA in 49 CFR part 23.33(a).

The Department has a Small Business goal of 30% for food and beverage concessions. If you think you may qualify as a Small Business, please ensure that this is indicated on Attachment B (Business Organization

Summary) by selecting the appropriate checkbox under the Small Business section to self-certify.

The small business application and certification process will help the Department track its success in attracting and retaining Small Business participation within the Department’s concession program.

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D. Optional Pre-Proposal Conference Proposers and/or their representatives are encouraged to attend the virtual

Pre-Proposal Conference. Interested proposers should register for the Pre- Proposal Conference by December 6, 2024, by 9:00 am PST and designate a single point of contact. Only authorized representatives of potential proposers may register on that proposer’s behalf.

Register for the virtual Pre-Proposal Conference through the OpenGov RFP website. The Department will keep a record of all parties who attend the

Pre-Proposal Conference, and it will be posted on the OpenGov RFP website

December 9, 2024.

The virtual Pre-Proposal Conference will be held on December 6, 2024, from 10:00am to 11:00 am. Meeting links will be sent to all proposers who have registered for the meeting.

The meeting will:

• Provide general information regarding RFP goals and RFP-specific details and timelines.

• Provide an overview of the OpenGov procurement system utilized for this RFP, site location, and usage guidelines.

• Provide information on how to submit formal requests for information and clarification regarding this RFP and its attachments.

• Provide an opportunity to ask general questions.

An in-person Airport tour opportunity will also be available after the virtual Pre-Proposal Conference. Email GladwillM@saccounty.gov to book an in-person Airport tour.

E. Submittal of Questions/Requests for Clarification Following the virtual Pre-Proposal Conference, the Department will receive and respond to questions or comments relating to provisions of the RFP and its attachments that are submitted in writing and received on or before the deadline specified on the RFP timeline. All questions must be submitted on the OpenGov RFP website for formal review and response. Oral questions, either in person or via recorded voicemail message, will not be accepted.

The Department will respond to all relevant questions submitted by the applicable deadline via addendum to the RFP which will be posted to the OpenGov RFP website and emailed to all prospective proposers on record as having attended the virtual Pre-Proposal Conference.

mailto:GladwillM@saccounty.gov

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The Department is not responsible for any explanation, clarification, interpretation or approval made or given in any manner except by written addendum.

It is the proposers’ responsibility to review all addenda available on the

OpenGov website. The Department’s failure to send such addenda via email to the respective proposer’s points of contact shall neither constitute a failure on the County’s part to notify nor serve as the basis for any protests challenging selections made under this RFP.

Addenda issued by the Department shall be considered a part of this RFP document and receipt of all Addenda issued must be acknowledged on the

Addenda Acknowledgement Form (Attachment A) and included with your proposal. Any proposer failing to sign the Addenda Acknowledgement Form may be deemed non-responsive and disqualified from further consideration.

F. Confidentiality of Records

The County will treat all information submitted in a proposal as available for public inspection once negotiations with the selected party have been completed. If copies of proposals are included with materials submitted to the Board, the County will make such documents available for public inspection once staff recommendations for award are approved by the

Board.

If a proposer believes protected data is included in its proposal, the proposer shall clearly identify the data and provide the legal basis in support of the asserted classification. Proposer must present such information separately as part of its proposal or type in bold red letters the term “CONFIDENTIAL” on that specific part or page of the proposal which proposer believes to be confidential. Classification of data as trade secret data will be determined pursuant to applicable law, and, accordingly, merely labeling data as “trade secret” does not necessarily make the data protected as such under any applicable law.

In order for the County to assert the confidentiality of any such information in the event a Public Records Act request is received, the proposer must request, execute and submit a County-prepared written agreement to defend and indemnify the County for any liability, costs and expenses incurred in asserting such confidentiality.

The final determination of whether the County will assert a proposer’s claim of confidentiality shall be at the sole discretion of the County. Any information determined to be non-confidential shall be considered a public

57 33 record. If the County determines that your information does not meet the criteria for confidentiality, you will be notified of the County’s intent to release the public record pursuant to any Public Records Act request.

The proposer agrees, as a condition of submitting its proposal, that the

County will not, as between the parties, be liable or accountable for any loss or damage, which may result from a breach of confidentiality related to the proposal. The proposer agrees to indemnify and hold the County, its officials, agents, and employees harmless from all claims arising out of, resulting from, or in any manner attributable to any violation of any provision of the California Public Records Act, including legal fees and disbursements paid or incurred to enforce this provision.

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EFFECTIVE PERIOD OF PROPOSALS

All proposals received by the Department shall remain valid for 180 calendar days after the proposal due date and may be extended upon mutual agreement by the

County and the relevant proposer.

WITHDRAWAL OF PROPOSAL

No proposal may be withdrawn without forfeiture of the proposal deposit after it has been submitted to the Department unless the proposer so requests in writing and such request is received by the Department before the proposal due date.

COMMUNICATION

Once the RFP is issued, proposer and their representatives, agents, and affiliates

(including prospective subtenants, joint venture partners, and their agents and representatives) are prohibited from contacting any County employee, Selection

Committee member, or other County representatives to discuss or ask questions about the contents of this RFP, the attached draft Agreement, the selection process; or to otherwise encourage or seek a specific result in connection with this

RFP. All questions shall be submitted in writing as described above. Inappropriate contacts may result in the proposer’s rejection or disqualification.

Notwithstanding the above, the Department’s representative may initiate communications with a proposer to obtain additional information or clarification needed for the Department to properly and accurately evaluate a proposal submitted in response to this RFP.

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SUBMISSION REQUIREMENTS

A. Submit a Complete Proposal

Proposer shall submit completed proposals as required by this RFP, including all completed mandatory forms as noted in the Proposal Attachments section, by the proposal due date and time specified on the RFP timeline section.

Proposals received after the specified time and date will be deemed non-responsive and automatically rejected from consideration.

Any proposals that exceed the page limit stipulated in the Proposal Page

Limits section will be deemed non-responsive and rejected from consideration.

B. Proposal Deposit The total proposal deposit amount required for the spaces is $5,000.

Proposer must provide an original proposal deposit in immediately available funds, in the form of a certified check, a cashier’s check, or a proposal bond that meets the County’s requirements. The proposal deposit must be received by the proposal submittal due date. Proposal deposits that are received after the proposal submittal due date will not be accepted and will be returned.

Proposal bonds may be submitted along with the proposal on OpenGov.

Alternatively, certified checks, cashier’s checks, and proposal bonds may be mailed to the address below and must be received within five business days of the proposal due date:

Commercial Development

Airport Concessions Sacramento County Department of Airports

Attn: Michael Gladwill 6900 Airport Boulevard

Sacramento, CA 95837-1109

All proposers who do not withdraw from the procurement process, except as specified in the Withdrawal of proposal section within this section, will have their proposal deposit returned promptly following the Board’s award of a concession agreement to the successful proposer. No other materials or documents will be returned under any circumstances. A proposer who withdraws their proposal after the proposal due date shall forfeit their proposal deposit.

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C. Proposal Format The proposal must be submitted digitally through the OpenGov portal in a

PDF format, with the exception of the pro forma document which should be submitted as a Microsoft® Excel® document.

Any proposal received after the scheduled proposal due date and time will not be considered and will be deemed non-responsive. The Department reserves the right to postpone or cancel the scheduled proposal due date and notice of such extension or cancellation shall be sent via addendum.

D. Exceptions, Deviations, and Alternatives

Proposer may not, after exhausting protest avenues, take exception or make deviations to any requirement of the RFP unless the Department specifically approves the deviation. If alternatives are proposed or exceptions to the draft Agreement are requested, the proposer must clearly identify such alternatives or exceptions in the proposal. The Department expressly reserves the right, in its sole and absolute discretion, to consider such alternatives or exceptions and to award an Agreement pursuant to this RFP based thereon if determined to be in the County’s best interests.

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Proposal Page Limits The proposal must not exceed the page limit indicated in the table below. Images, renders, plans, and menus do not count towards the page limit or to the size restriction. All other pages should be a standard 8.5 x 11 inches, with a font size no smaller than 11 points. Please use a standard font, such as Times New Roman, Arial, Calibri, or similar. Proposal shall be formatted as outlined below.

Proposal Maximum page limit

1. Proposer Evaluation

1.1.

Experience and Qualifications

5 pages

1.2. Financial Capability 3 pages

1.3.

Environmental

Sustainability

2 pages (Internal policy documents can be attached as an appendix and will not count towards the page limit.)

2. Concept Evaluation

2.1. Customer Service 3 pages per brand/storefront

2.2. Concept and Branding

3 pages per brand/storefront excluding renders, plans, and images

2.3. Concept Design

3 pages per brand/storefront excluding renders, plans, and images

2.4. Technology Use

1 page per brand/storefront excluding renders, plans, and images

2.5. Menu and Pricing

1 page per brand/storefront, excluding sample menus

2.6.

Management and Operations

3 pages per brand/storefront

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Proposal Attachments

Attachments to Proposal Return with

Proposal?

1.

Executed Addenda Acknowledgement Form (Attachment A)

Yes

2. Business Organization Statement (Attachment B) Yes

3. Business And Financial References (Attachment C) Yes

4. Declaration Of Non-Collusion (Attachment D) Yes

5. Labor Peace Policy (Attachment E) Yes

6.

Airport Concession Disadvantaged Business Enterprise

Joint Venture Information Form (Attachment F)

Only required if an

ACDBE proposer

7.

Pro-Forma Operating Statement(S) With Supporting

Assumptions (Attachment G) Yes

8. Project Cost Analysis Form (Attachment H) Yes

9.

Facility Build-Out Investment Proposal Form (Attachment I)

Yes

10.

Financial Statements and/or Balance Sheet and Income Statements

Yes

11. Proposal Deposit Yes

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EVALUATION CRITERIA

Evaluation Criteria All proposals meeting the minimum qualification requirements of this RFP will be reviewed, evaluated, and ranked to determine the highest scoring proposal. A

Selection Committee comprised of representatives from various airport and industry stakeholders, as determined by the…