Section B_Supplies and Service - Dirksen Ground Level Food Service.pdf

Section B – Supplies and/or Services and Price

B.1 Description of Services

The Architect of the Capitol (AOC), on behalf of the U.S. Senate, is seeking to enter into a concession type contract for daily food service operations in the Senate Dirksen Ground Level Food Service space (formerly American Grill), whereby the AOC will have no financial responsibility or liability. In exchange for the right to operate said operations, the AOC will receive a monthly commission from the Contractor paid on a percentage of gross receipts per Section B.5.

B.2 Scope of Services

The scope of services is restricted to the Senate Dirksen Ground Level food service space.

B.3 Period of Performance

The period of performance for this contract will be a two (2) two-year base period plus three (3) two-year option periods for a total period of performance of eight (8) years. Due to the anticipated construction, the base period may be shortened. Services are anticipated to commence December 31, 2025 and end December 30, 2033.

B.4 Gross Receipts

Gross Receipts, all receipts received for all services, provided under this Contract, including, without limitation, receipts from the sale of services and other income and is calculated on the total receipts.

B.5 Commissions

The goal is for the Senate to receive the best possible service/value commensurate with the proposal that is incorporated into and made a part of the Contract, and related financial, operational, and service considerations.

The Contractor at a minimum shall pay the Government a commission of 10% of gross receipts per calendar month for the base and option periods of the contract. The Contractor may propose a percentage above the minimum 10% per calendar month per the additional percentage of gross receipts provided for in Schedule B.5.1 below (Insert 0% in the block if 10% remains the minimum).

This payment may be waived at the sole discretion of the Contracting Officer (CO).

Schedule B.5.1 Commission Schedule

Performance Period Monthly Commission % Base Period 10%+____% Option Period 1 10%+___% Option Period 2 10%+___% Option Period 3 10%+___%

Section B.6 Contractor Investments

The AOC intends to renovate the Senate Dirksen ground level space (see Attachment J.6 for the assigned space) to accommodate the Contractor’s food service operation under the contract. Contractor investments or improvements shall be subject to the provisions of Section C.2.13.4.1 of the Statement of

Work (SOW). The total dollar amounts for the investments shall be made by the Contractor at the stated amount(s) in the schedule below. Note: All capital improvements and equipment remain the property of the AOC.

Schedule B.6.1 Contractor Investments

Base Period Option 1 Option 2 Option 3 Proposed Investment Amount

Section B.7 Menu of Items: Price and Portion Guide

The Contractor’s menu of items with the price and portion guide, upon acceptance by the AOC, shall be fixed for Year 1 of the base period and incorporated into the contract. Pricing for subsequent years for the menu of items: price and portion guide shall be subject to the price adjustment format and process in Section B.8.

Detailed product specifications for items provided below shall comply with the descriptions found in Section C.2.2 Food Quality Standards.

B.8 Price Adjustments

Price adjustments will be considered annually pursuant to the formula contained herein.

(a) The following material shall be submitted to the CO for consideration with the request for any price increase/decrease at least 60 days prior to the contract annual period:

(1) A copy of the Consumer Price Index (CPI) showing the percentage change upon which the adjustment is to be based;

(2) Documentation supporting the calculations of the appropriate formula noted below;

(3) A revised Price and Portion Guide for all adjusted products displaying current pricing, proposed revised pricing and the actual quantity of each sold.

(b) The AOC will approve all adjustments to the selling price of food and other products or services provided by the Contractor, on the business day after Martin Luther King, Jr. federal holiday of the contract anniversary period, based on the percent change (up or down) pursuant to the Bureau of Labor Statistics: Consumer Price Index Summary, Table A located in URL:

http://data.bls.gov/timeseries/CUSR0000SEFV, percent changes in CPI for All Urban Consumers (CPI- U): U.S. city average, Food Away from Home. The AOC will use a 12-month reference period, ending October. The Contractor’s failure to provide accurate and supported price adjustments will impact the start date of any price increase. The Contractor may not exceed the percentage increase on any individual item and percentage increase/decreases will be on a per-item basis.

The revised pricing will become the new base for calculations of the next price adjustment period. The increase/decrease shall go into effect after an accurate request is received, reviewed, and subsequently approved by the CO. If the Contractor fails to notify the CO of any price increase/decrease pursuant to the CPI, the CO will not approve a price adjustment for the current contract year. For further information on the calculations go to www.bls.gov). All Consumer Price Indexes used for this calculation are not seasonally adjusted.

http://data.bls.gov/timeseries/CUSR0000SEFV http://www.bls.gov/

The AOC will consider short term price increases on individual items based on significant changes in the marketplace, such as those seen during the COVID-19 pandemic or a natural disaster in a major food producing part of the nation that impacts product availability and the transportation infrastructure.

Temporary emergency price increases shall be supported by U.S. Bureau of Labor Statistics published data percentages and increases will be on a per item basis. Pricing will be subject to review and approval by the CO and will go into effect immediately upon approval. These emergency/temporary surcharges will be reviewed biweekly. When determined the emergency no longer exists, prices will return to the original price, directed by the CO. The Contractor shall post signage explaining to customers the reason for the temporary surcharge(s).

B.9 Facility and Construction Disclaimer

The Office of Attending Physicians (OAP) has identified certain Food and Drug Administration (FDA) code compliance upgrades that may be required for the unit to be occupied by a food contractor, dependent on that food contractor’s approved food service concept of operations. These code compliance upgrades include: a fresh food prep area with designated food sink; mop sink/station; chemical storage room;

employee personal storage; dry storage area; additional cold storage including freezer; and trash holding area. The AOC will contract with a third party to design and install any required upgrades identified by the OAP, pursuant to the food contractor’s approved food service concept of operations. Construction may take approximately 15 months to complete dependent on the necessary required upgrades. All offerors are advised to review the Dirksen Ground Floor Unit drawings, Attachment 6. The unit’s existing equipment and interior infrastructure will remain as-is and includes: the grill and associate exhaust hood; fryer and associated exhaust hood; fryer oil reclamation system; three-compartment sink; and hand sink. Although the infrastructure will remain in place, not all moveable equipment will stay in place. However, this equipment will still be available for use.

The AOC seeks various concepts for utilizing the Dirksen Ground Floor unit. Offerors proposed concepts must conform to the construction design and updates identified by the AOC in the unit drawing. Offerors are advised that existing space and infrastructure constraints may limit configuration options. Therefore, upon award of this contract, the AOC will coordinate the configuration of these items with the awardee within 60 days after award. Services resulting from this contract will not commence until all construction and inspections are complete. The AOC will provide a 90-day notice prior to the commencement of services. Consequently, the base period may not be a full two-year period as indicated in this RFP as the base period must end December 30, 2027.