Section B - Senate Food and Related Services - 3 APR.pdf

Section B – Supplies and/or Services and Prices

B.1 Description of Services

The Architect of the Capitol (AOC), on behalf of the U.S. Senate, is seeking to enter into a commission-plus-fixed-fee contract for daily food service operations, vending operations, catering, and other services, whereby the AOC will have limited financial responsibility and liability. All of the performance and financial risks shall fall on the contractor.

The Contractor shall pay the AOC a commission based on a percentage of total gross receipts of all operations per month, per the schedules in Section B.5.1. Monthly certification of statements must be provided per Section C.5.18.3 Income Statements. Annual statements must be certified by an external, independent third-party accounting firm and distributed to the COR within thirty

(30) calendar days after each calendar year-end date.

The AOC shall pay a fixed fee, and the contractor shall pay a commission to the AOC based on a percentage of gross receipts from all operations, as stated in Schedule B.5.1.

B.2 Scope of Services

Provision of food services and operation of food service venues identified in this contract are exclusive to the awardee as set forth in the primary operations contained herein. Primary food service operations encompass food services in one (1) fine dining executive dining room, one (1) cafeteria, one (1) carryout facility, one (1) 24/7 convenience store, one (1) coffee shop, vending operations, catering and/or other related services.

The Contractor will maintain continuity of services, without interruption, throughout the entire term of the contract. These services and contracts are not exclusive. The AOC, at its own discretion or as directed by the Senate, may add or award contracts for services, facilities and operations throughout the Senate Office Buildings, including but not limited to services, facilities and operations that directly compete with the food service units covered by the contracts below.

In addition to the market basket set forth in Attachment J.14 – Market Basket and Price and Portion Guide, the contractor will provide an updated Price and Portion Guide in Attachment J.14 – Market Basket and Price and Portion Guide and annually thereafter, pursuant to Section B.7 - Pricing.

Included in this contract are the following food venues:

• Capitol Building Room SB-10

• Dirksen Office Building Room SDB-RE

• Catering Services (throughout Senate spaces)

• Dirksen Office Building Room SDB-R7

• Capitol Building S-110

• Capitol Building Room S-112A

• Vending (throughout Senate spaces, USCP Headquarters)

B.3 Period of Performance

The period of performance will begin on the commencement of food services and full operations on or about December 31, 2027. After award of the contract and upon meeting with the Contracting Officer at the Kick-off meeting, per Section C.5.19 Contract Transition Plan: Phase- In and Phase-Out Plans, there is a mobilization/phase-in period through December 31, 2027. The period of performance consists of four (4) program operational years beginning with the first program operational year commencing on December 31, 2027, and ending on December 30, 2031.

The Government may elect to exercise two (2) four-year program operational periods for a total of twelve (12) program operational years. The Architect of the Capitol will reserve the right to extend services up to six months from December 31, 2039, to June 30, 2040 pursuant to FAR 52.217-8.

B.4 Gross Receipts

Gross Receipts shall be maintained in accordance with Section C.5.18.2 - Books and Records in the Statement of Work (SOW) and submitted to the AOC as stated in Attachment J.11 - Deliverables.

Gross Receipts are defined as all receipts received for all food service venues, awarded under this Contract, including, without limitation to, all receipts from the sale of services and other income, i.e., retail, vending, catering, fees, rebates, special incentives, discounts, returns, etc.

B.5 Concessions Structures

The Contractor shall provide all supporting documentation to support all gross receipts and expenses/claims as required in Section C.5.18 - Administrative Requirements of the SOW. The AOC reserves the right to audit all financial submissions to ensure commissions paid to the AOC are true and accurate and comply with the contract terms. The AOC will determine the reasonableness and accuracy of supporting documentation. Any submission deemed excessive, unreasonable (what a prudent person would pay), unallowable, or wasteful will be rejected by the

AOC.

B.5.1 Food Service Structure – Fixed Fee Plus Commission Schedule Under this structure, the Contractor shall pay the AOC a commission, and the AOC shall pay the Contractor the monthly fee as set forth in the Schedule below. The Contractor may choose not to propose a monthly fee. If the Contractor incurs a loss under the operating conditions outlined in the SOW and/or otherwise for reasons not attributable to a Government contract action under the Changes clause, the Contractor shall absorb such deficit or loss, and the Government shall not be liable.

A fixed‑fee adjustment shall only be considered when the Government directs a change that materially increases or decreases the Contractor’s level of effort, including but not limited to (1) significant adjustments or amendments to required staffing; (2) expansion of required operating hours; (3) introduction of new food service venues or service concepts not included in Section C;

(4) mandated menu offerings requiring new production processes, equipment, or specialized labor;

or (5) other changes directed by the Government under the Changes clause that exceed the scope of routine operational management; and the Government’s direction does not have a demonstrable positive impact on or result in a material increase to revenue.

Schedule B.5.1a Monthly Fixed Fee plus Commission Schedule

Schedule B.5.1a Monthly Commission % on all Gross Monthly Receipts Monthly Fixed Fee (Optional)

B as e

Year 1 Year 2 Year 3 Year 4

O pt io n

Pe rio d 1 Year 5

Year 6 Year 7 Year 8

O pt io n

Pe rio d 2 Year 9

Year 10 Year 11 Year 12

FA

R

.2

-8

6 Months

B.6 Capital Investments

The AOC is providing the space in “as-is” condition. Any proposed improvement shall be subject to the provisions of Section C.5.14.2 - Capital Investments of the SOW. If improvements are proposed, the total dollars shall be made by the contractor at the stated amount(s) in the schedule below.

Schedule B.6.1 Contractor Capital Investments for Improvements and Renovations

Schedule B.6.1 Proposed Investment Amount

B as e

Year 1 Year 2 Year 3 Year 4

O pt io n

Pe rio d 1 Year 5

Year 6 Year 7 Year 8

O pt io n

Pe rio d 2 Year 9

Year 10 Year 11 Year 12

Months

B.7 Pricing

As stated in SOW Section C.5.9 - Pricing, the contract will reflect the menu items and the food/beverage program that the Contractor will provide and the prices that the Contractor will charge for those items and that program. All pricing and accompanying information will be incorporated as an attachment to the contract and may not be changed without the COR's written approval.

Further information regarding pricing is described in this Section.

B.7.1 Price Adjustments

The contractor may submit a price adjustment proposal to the AOC (1) on an annual basis for all venues except the SDR and Catering, after the end of the most recent fiscal year (September 30) and no later than October 31st, or (2) in the event of extraordinary circumstances such as those seen during the COVID-19 pandemic, natural disaster, or other unforeseen event in a major food producing region that impacts product availability and the transportation infrastructure. The AOC will approve or disapprove all adjustments to the selling price of food and other products or services provided by the Contractor in the Attachment J.14 Market Basket and Price and Portion Guide on or shortly after a 30-day review period by the AOC after receipt. The contractor shall submit all related requests based on the percent change (up or down) pursuant to the Bureau of Labor Statistics: Consumer Price Index (CPI) Summary–Table A located in URL:

https://www.bls.gov/news.release/cpi.nr0.htm. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city average, Food Away from Home.

The AOC will use the un-adjusted 12-month reference period of CPI – Food Away from Home data ending the most recent September for annual price adjustment proposals. Price adjustments are capped at the CPI and percentage increases/decreases will be on a per-item basis. The Contractor’s failure to provide accurate and supported price adjustments will impact the start date of any price adjustments. Price adjustments shall go into effect within fourteen (14) calendar days after written notice of acceptance by the CO. The Contractor shall not exceed the mutually agreed upon price adjustments on any individual item.

Extraordinary circumstances must be well documented and clearly reflected in market price trends and resulting price increases must be expected to remain beyond a single season. The AOC at its sole discretion, may use any readily available Government or industry data, forecasts, estimates or indexes, including but not limited to the most recent published CPI – Food Away from Home data.

Price adjustments shall go into effect within fourteen (14) calendar days after written notice of acceptance by the CO. The AOC may require future downward price adjustments if market conditions change upon cessation of the extraordinary circumstances or alternate material sources are identified.

The SDR and Catering menus and pricing will be adjusted twice annually as stated in Sections C.4.7.2.7 - SDR Menu Pricing and C.4.8.7 - Catering Prices. The SDR and Catering menu items will not be subject to CPI adjustments. AOC will conduct a local market analysis of the market basket items listed in J.14 - Market Basket and Price and Portion Guide and all other menu items for the SDR and Catering to the greatest extent practicable before a price adjustment request is approved by the CO. All menu prices must be equal or below menu prices at similarly suited Washington D.C. area fine dining establishments and catering businesses.

The Contractor must show a cost build-up to include formulas clearly demonstrating how they derived at individual item markups per J.14 - Market Basket and Price and Portion Guide for all venues. The Contractor will not make any price adjustments or changes without prior written approval from the CO. Whenever unique conditions result in unusual cost increases to the Contractor, the COR will consider price adjustments at other times during the year.

B.7.2 Changes to Existing Menu Prices and Food/Beverage Programs

Any recommendations that the Contractor submits to the COR for changes to existing menu items, the food/beverage program, or the price for any menu item or any part of the food/beverage program must include a full rationale for each proposed change. All requests for any price increase/decrease must be submitted to the COR at least 60 days prior to the contract annual period.

Note: the COR does not have approval authority for changes to prices and programs. The CO will provide written approval via a bi-lateral modification to the contract of any change to the menu and food/beverage program pricing or offerings.

B.7.3 Pricing for New Items, Specials, Promotions

If the Contractor submits any new proposed menu items, specials, promotions and or food/beverage programs outside the annual price review period, it shall be submitted to the COR for review by the AOC and a decision from the If the CO provides written approval the Contractor may, implement changes within fourteen (14) calendar days after the CO written approval date.

B.7.4 Price Display

The Contractor must display all prices at each food service facility and online menus, if applicable.

If table service is provided, pricing shall be displayed on handheld and/or digital menus. Menu prices and portions will be an attachment to the Contract, and such prices will be set and established pursuant to Section C.5.10 Marketing and Displays.

B.7.5 Refunds Each location must have up-to-date contact information for customers to report problems and obtain refunds for lost money. The Contractor will clearly position up-to-date contact information at each register and vending machine. The Contractor shall respond to refund inquiries within one

(1) business day during normal hours of operation. The Contractor must provide a refund policy and procedure for review and approval by the COR no later than forty-five (45) calendar days after contract award.

B.7.6 Cancellation Fee

If the AOC cancels the contract during a performance period outlined below, the Contractor will receive the cancellation fee shown below for the respective year in which the contract was canceled. The contract will be cancelled by March 31 of any performance year if funding can not be established. The cancellation ceiling for this contract is $250,000.00. No cancellation fee will be issued if the Government does not exercise an option period.

Schedule B.7.6 Proposed Cancellation Fee

B as e

Year 1 $0.00 Year 2 Year 3 Year 4

O pt io n

Pe rio d 1 Year 5

Year 6

Year 7

Year 8

O pt io n

Pe rio d 2 Year 9

Year 10

Year 11

Year 12

6 Months $0.00