Terminal_3_Food_&_Beverage_Concessions_Operator_(Small_Business_Opportunity)_Micro_Restaurant_and_Mobile_Kiosk_(Addendum_#1_Revision).pdf

REVENUE CONTRACT SOLICITATION

AVN RCS-26-0047

TERMINAL 3 FOOD & BEVERAGE CONCESSIONS

OPERATOR (SMALL BUSINESS OPPORTUNITY)

MICRO RESTAURANT AND MOBILE KIOSK

City of Phoenix

Aviation

2485 E. Buckeye Rd.

Phoenix, AZ

85003

RELEASE DATE: May 22, 2026

DEADLINE FOR QUESTIONS: June 30, 2026

RESPONSE DEADLINE: July 31, 2026, 11:00 am

City of Phoenix

REVENUE CONTRACT SOLICITATION

AVN RCS-26-0047

Terminal 3 Food & Beverage Concessions Operator (Small

Business Opportunity) Micro Restaurant and Mobile Kiosk

1. Summary ............................................................................. Error! Bookmark not defined.

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5. Instructions .......................................................................... Error! Bookmark not defined.

6. Determination of Responsiveness and Responsibility and Evaluation . Error! Bookmark not defined.

7. General Terms and Conditions of the RCS .......................... Error! Bookmark not defined.

8. Special Terms and Conditions ............................................. Error! Bookmark not defined.

9. Defense and Indemnification ................................................ Error! Bookmark not defined.

10. Insurance Requirements .................................................. Error! Bookmark not defined.

Attachments:

A - 1 - A - T3 F&B Micro Resturant Mobile Kiosk - Draft Lease

B - 2 - B - Premise Map T3 FB Micro Restaurant

C - 3 - C - Premise Map Storage Space T3 FB Micro Restaurant

D - 4 - D - ACDBE-N RCS Clause - Pre-Award

E - 5 - E - ACDBE-N Lease Clause - Post-Award

F - 6 - F - EO1-200 ACDBE N Outreach Forms

G - 7 - G - EO2-200 ACDBE N Outreach Forms

H - 8 - H -EO3-200 ACDBE N Outreach Forms

I - 9 - I - Letter of Declaration (Equal Pay)

J - 10 - J - Affidavit

K - 11 - K - Letter of Credit

L - 12 - L - Cash Deposit for Performance Guarantee

M - 13 - M - Tenant Design Criteria

N - 14 - N - Concessions Op and Service Standards

Revenue Contract Solicitation #AVN RCS-26-0047 Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile Kiosk

O - 15 - O - Capital Investment

P - 16 - P - F&B Concept Description

Q - 17 - Q - Qualifications and Experience of On-site Manager

R - 18 - R - Business Experience of Respondent's F&B Concept Ops

S - 19 - S - Contact Info for Respondent

T - 20 - T - Exp of Respondent and Partners with Concept

U - 21 - U - Pro Forma Micro

V - 22 - V - Pro Forma - Mobile Kiosk

W - 23 - W - Assumptions for Micro Restaurant

X - 24 - X - Assumptions for Mobile Kiosk

Y - 25 - Y - Conflict of Interest and Transparency

Z - 26 - Z - Respondent References

AA - 27 - AA - Insurance Requirements

BB - 28 - BB - Supplemental Terms And Conditions To All Airport Agreements REV. 4.29.26

CC - 29 - CC - Compliance-With-Environmental-Laws-REV.-July 9, 2025

DD - 30 - DD - Micro Restaurant Equipment List and Value

EE - 31 - EE - Micro Restaurant and Mobile Kiosk Equipment List

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

1. Introduction

1.1. Contact Information

Cadle Collins

Aviation

Email: cadle.collins@phoenix.gov

Phone: (602) 273-2054

1.2. Schedule of Events

The City of Phoenix reserves the right to change dates, times, and locations, as necessary. The

City does not always hold a Pre-Offer Conference or Site Visit. All times in the Schedule of

Events are local Phoenix, AZ Time.

To request a reasonable accommodation or alternative format for any public meeting, please contact the Procurement Officer (Cadle Collins) at (602) 273-2054/Voice or 711/TTY, or cadle.collins@phoenix.gov, no later than two (2) weeks prior to the meeting.

Solicitation Issue Date: May 22, 2026

Pre-Offer Conference (Non-Mandatory): June 16, 2026, 10:00am

You may attend Virtual or In Person

**Please RSVP/Register for the meeting at:

https://cityofphoenix.webex.com/weblink/reg ister/r4d53d43b2b33fa2f13ac46339e8ba37 b

For any issues registering or signing into the

Pre-Offer Conference, please contact busopps.aviation@phoenix.gov or 602-273-

3390.

In Person:

Aviation Headquarters: 2485 E. Buckeye

Rd. Phoenix, AZ 85034

Site Walk : June 16, 2026, 11:00am

Written Inquiries Due Date: June 30, 2026, 3:00pm https://cityofphoenix.webex.com/weblink/register/r4d53d43b2b33fa2f13ac46339e8ba37b https://cityofphoenix.webex.com/weblink/register/r4d53d43b2b33fa2f13ac46339e8ba37b https://cityofphoenix.webex.com/weblink/register/r4d53d43b2b33fa2f13ac46339e8ba37b mailto:busopps.aviation@phoenix.gov

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

Offer Due Date: July 31, 2026, 11:00am

Join Online:

https://cityofphoenix.webex.com/cityofphoen ix/j.php?MTID=m02e74301abbcfc709339b8

5c1540cb6e

Join by phone

+1-415-655-0001 US Toll

Access code: 2345 877 5440

Evaluation: August and September 2026

Council Award : January 2027

**Please Note: Registration or RSVP to participate virtually in the Pre-Offer Conference is required to obtain the Pre-Offer Conference information. A Respondent who wishes to join the

Pre-Offer Conference virtually for this solicitation is required to register using the weblink or access code provided prior to the meeting. Upon completion of registration, the Pre-Offer

Conference information will be forwarded to the registered email address.

Non-Mandatory Pre-Offer Conference and Site Tour

Offerors may attend the Pre-Offer Conference at the date and time listed in the Schedule of

Events in this RCS document. Offerors may also attend the Site Tour. Offerors should register to attend by Tuesday, June 9, 2026, at 3:00 p.m. by emailing busopps.aviation@phoenix.gov.

and indicate the number of personnel attending. The Site Tour will include post-security areas at the Airport so all attendees will be subject to Transportation Security Administration (TSA) screening. Please bring a TSA-approved form of identification (e.g. state-issued driver’s license or U.S. passport).

1.3. Introduction

The City of Phoenix (City), Aviation Department (Aviation) is seeking Responses from qualified small businesses (as defined in Section 2.3 Food & Beverage General Standards and Concepts) in good standing to operate and manage a Food & Beverage (F&B) Micro Restaurant and a Mobile Kiosk concession with City provided equipment, as listed in Micro Restaurant and Mobile Kiosk

Equipment List, Attachment DD & EE, at two different Terminal 3 (T3) Pre-Security locations at

Phoenix Sky Harbor International Airport (PHX or Airport). The Successful Respondent will enter into a Concession Lease Agreement (Lease) with the City. The Draft Lease, Attachment A, wherein the

Premises that will be operated and managed by the Successful Respondent are identified. The

Premises Maps, Attachment B & C, will be operated and managed by the Successful Respondent.

There will be one Successful Respondent who will operate both the Micro Restaurant and Mobile

Kiosk concessions. City will not have more than one Successful Respondent for this Solicitation.

https://cityofphoenix.webex.com/cityofphoenix/j.php?MTID=m02e74301abbcfc709339b85c1540cb6e https://cityofphoenix.webex.com/cityofphoenix/j.php?MTID=m02e74301abbcfc709339b85c1540cb6e https://cityofphoenix.webex.com/cityofphoenix/j.php?MTID=m02e74301abbcfc709339b85c1540cb6e mailto:busopps.aviation@phoenix.gov

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

One (1) small business F&B concession contracting opportunity exists in this Revenue Contract

Solicitation (RCS). The available F&B space is:

A. Micro Restaurant (L-MR): 1,225 square feet (includes seating)

B. Mobile Kiosk (L-MK): 150 square feet

C. The City encourages competition in all of its solicitations. The City’s desired outcomes from this solicitation process are to:

1. Provide passengers with F&B experiences that authentically reflect the local community's culinary heritage, address Airport customer needs and preferences through innovative concepts and menu offerings, and reflect current trends over the term of the Lease.

2. Optimize sales and rental revenues over the term of the Lease.

3. Incorporate technology and innovative service concepts to enhance service offerings and the passenger experience in T3 pre-security locations.

4. Increase opportunities for local and small business participation.

5. Provide quality food and beverage offerings that showcase local brand concepts and create a welcoming experience for Airport customers.

6. Select Respondent, including their subtenant and/or joint venture partner(s) (if any), who have experience in the successful operation of F&B concepts.

7. Select Respondent based on the entire Response, not solely based on the highest projected gross sales and/or rental revenues.

8. Select Respondents based on a number of factors including Respondents’ ability to provide the highest quality customer service, goods, and convenience to the traveling public, while also providing a quality workplace for employees and demonstrating a commitment to sustainability, in addition to the expectation of rental revenues.

Selection will be based on the entire Response and the Evaluation Criteria and will not be solely based upon the highest financial return to the City. All Respondents must demonstrate not only food

& beverage concessions experience and financial capability, but also creativity in proposing the food concepts that will enhance the customer experience.

To support a quality, productive workplace for the airport concession workforce, it is important to the

City that the concessionaires offer affordable, high-quality health insurance, competitive wages, and safe working conditions.

1.4. Background

PHX is among the busiest airports in the United States, serving more than 142,000 passengers daily, with over 1,300 flights per day by 25 airlines with nonstop air service to over 140 destinations.

As passenger projections continue to grow, the Airport must expand its facilities and concession offerings to support passenger growth. A new six-gate concourse is currently under construction at T3, North 2 Concourse, and will begin operations in 2027. When this new concourse opens, passenger traffic in the existing T3 baggage claim area will increase. Currently, only one F&B unit operates in the baggage claim area, serving arriving passengers as well as family members and friends who meet them. The Mobile Kiosk will be added to this area to support current and

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile growing customer needs. The Airport's Security Badging Office has recently relocated to T3, Level 4. The proposed site for the Micro Restaurant is strategically positioned adjacent to this office, offering high visibility and convenient access to meal options for PHX staff. Additionally, the location is near the T3 parking garage entrance and sits directly along the main route used by arriving passengers heading to baggage claim. This placement ensures easy access and strong visibility for both travelers and the friends or family members meeting them.

Recent performance data support the need for expanded food options in T3. Since 2022, PHX has experienced a steady increase in both passenger enplanements and concession gross sales as PHX recovered from the pandemic. According to available data, T3 passenger enplanement numbers grew by 28% from 2022 to 2024, reaching 6,584,964 in 2024. This increase in passenger traffic boosted food and beverage concession sales, with gross sales increasing by 48% during the same period. In 2024, total concession for Terminal 3 reported gross sales generated over $87 million, demonstrating a strong post-pandemic recovery and increased passenger spending.

As PHX continues to focus on enhancing the passenger experience, these statistics underscore the positive correlation between rising enplanements and increased revenue from airport concessions. PHX is expected to experience an estimated 2.5% passenger growth, as new facilities, including a new concourse in T3 and additional dining options, are anticipated to be operational in the coming years.

T3 Gross Sales and T3 enplaned passengers by airline and calendar year are shown in the tables below.

TERMINAL 3 GROSS SALES

Category CY 2022 CY 2023 CY 2024

Food & Beverage $ 34,841,939 $ 49,387,091 $ 55,472,572

PEET'S COFFEE GROSS SALES DATA TERMINAL 3 - LEVEL ONE

CY 2022 2023 2024 TOTAL

SALES $ 491,718 $ 1,105,902 $ 1,500,783 $ 3,098,403

TERMINAL 3 ENPLANED PASSENGERS BY AIRLINE

AIRLINE CY 2022 CY 2023 CY 2024

Advanced Airlines 2,012 4,467 5,703 Air Canada 132,264 164,524 177,465 Alaska Airlines 725,970 768,017 777,471 Allegiant Airlines 45,255 58,392 62,657 Boutique Air 3,260 - - Breeze Airways 1,531 54,245 44,160 Contour Airlines 9,447 9,299 12,334 Delta Air Lines 1,628,335 1,836,447 1,870,472 Denver Air Connection

5,019 8,412 8,276

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

Frontier Airlines 706,130 1,288,731 1,444,256 Hawaiian Airlines 91,847 98,144 103,951 jetBlue Airways 158,155 132,304 133,487 Porter Airlines - - 10,324 Southern Airways Express

- 4,491 3,110

Spirit Airlines 204,764 303,079 188,195 Sun Country Air 131,865 136,958 145,825 United Airlines 1,301,836 1,463,438 1,597,278

TOTAL 5,147,690 6,330,948 6,584,964

More PHX statistics are available at https://www.skyharbor.com/About/Information/AirportStatistics.

The City makes no representation or warranties, expressed or implied, as to the accuracy, reliability, or relevancy of the statistical data. The Respondent assumes all risk associated with using the data, including its accuracy, reliability, relevance, and/or materiality to the formulation of its Response.

Airport Environment

The Airport environment presents unique operational challenges that differ significantly from those in shopping centers or street locations:

A. Time-Sensitive Customers

Airport customers have limited time to spend at food and beverage concessions and must be served promptly.

B. Year-Round Operations

Concession units must operate 365 days a year, with hours and staffing levels adjusted to reflect seasonal and daily fluctuations in passenger traffic.

C. Flight Delays and Flexibility

Airport-wide flight delays are not uncommon and may result from weather conditions locally or in other regions. Operations plans must be flexible enough to extend hours and accommodate increased demand during these periods.

D. Delivery Scheduling

Deliveries must occur during scheduled hours that do not conflict with peak passenger traffic times.

E. Non-Smoking Facility

The Airport is a smoke-free environment.

F. Customer Profile https://www.skyharbor.com/About/Information/AirportStatistics

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

Customers are primarily airline passengers traveling with carry-on luggage, baggage carts, and airport employees.

G. Employee Role

Each concession employee serves as an ambassador for the Airport. Comprehensive training is essential and should include familiarity with terminal areas.

1.5. Small Business Opportunity

The City of Phoenix defines small business firms as 1) Independent and for-profit business concerns, 2) Owned and controlled by one or more persons, 3) Personal Net Worth (PNW) of each owner(s) cannot exceed $2.047M, 4) Annual Gross Sales (averaged over the business’ previous 5 years) cannot exceed $56.42M.

1.6. Definitions

The following definitions apply to this Revenue Contract Solicitation (RCS). There are additional definitions in the attachments, exhibits and appendices. If there is a conflict between these definitions and the definitions in the attachments, exhibits and appendices then the definitions in the attachments, exhibits, and appendices govern those documents.

AGGRIEVED PARTY means a person or a business that intends a Response that alleges a mistake, impropriety or defect in the solicitation will harm the person or business.

AIRPORT means Phoenix Sky Harbor International Airport, Phoenix Deer Valley Airport and/or

Phoenix Goodyear Airport, in accordance with the context of the contract.

CONTRACT includes any and all City of Aviation Department contracts, subcontracts, agreements, leases, subleases, licenses, permits, concessions or other documents, however denominated that grant or convey a right or privilege on an Airport.

DAYS means calendar days, except as otherwise expressly provided in this RCS.

DISCUSSIONS means an exchange between the Procurement Officer and one or more

Respondents submitting Responses determined to be Reasonably Susceptible Responses.

EVALUATION CRITERIA The factors used by the City to evaluate proposals, statements of qualifications or responses. Examples of Evaluation Criteria may include such factors as: past performance; experience; references; financial, management and technical capability; quality and performance of goods or services; and price, cost or revenue in the case of Revenue

Contracts.

GOOD CAUSE means substantial grounds or evidence based upon facts not in dispute as determined by the Procurement Officer that the failure by an aggrieved party or a Respondent to submit a timely Response, protest or appeal was beyond its control due to misinformation relayed in writing by a city employee.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

JOINT VENTURE (JV) means an association between two or more persons, partnerships, corporations, or any combination thereof, formed to carry on a single business activity.

LEASE is a written agreement with the City to conduct business on City property.

REASONABLY SUSCEPTIBLE RESPONSE means a Response that, based on the evaluation criteria, has a substantial chance of resulting in a Lease award.

RESPONDENT/OFFEROR means an individual, partnership, JV, corporation or firm that submits a Response to the City to perform services requested by a RCS.

RESPONSE/OFFER means a written response to this Revenue Contract Solicitation.

RESPONSIBLE means to be fully capable of meeting all of the requirements of the solicitation, including possessing the capacity, operational and financial capability, and integrity to perform as contractually required.

RESPONSIVE means an offer or Response that on its face satisfies all material requirements of the solicitation.

REVENUE CONTRACT SOLICITATION (RCS) A solicitation for revenue contracts, including all amendments or supplements thereto.

SUBCONTRACTOR means an individual, partnership, JV, corporation or firm that holds a contract at any tier below the Lease, including a vendor under a purchase order.

SUBTENANT a person or entity that leases property from Respondent.

SUCCESSFUL RESPONDENT means an individual, corporation, firm or JV that has been selected by the City to perform services requested by a RCS.

1.7. Minimum Qualifications

Each Respondent must submit documentation in its Response to demonstrate it meets the required minimum qualifications and include all information requested in this section or the

Response will be rejected as non-responsive. The City of Aviation Department reserves the sole right to determine if Respondents meet the minimum qualifications.

A. The respondents must have a minimum of three (3) or more continuous years, in the last six (6) years of experience in the ownership, executive management, or operation of a

Food & Beverage business concept. Executive management is defined as the president, vice president, officer (including chief operating officer, chief executive officer, and chief financial officer), majority owner or stockholder, joint venture partner, managing partner, controlling partner, controlling owner or any individuals with authority to make decisions on behalf of an organization that will impact the overall direction of the organization. If

Respondent is a newly formed entity, Respondent must demonstrate that owners, which may include JV partners of Respondent, who, in the aggregate, own 51% or more of the entity each, satisfies this experience requirement.

B. Respondent must be a Small Business Firm, as that term is specified in Section 1.5.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

C. Respondent must include a Sustainability Program for the proposed concessions that is consistent with the goals of the Aviation Department’s Sustainability Management Plan

(SMP) and describes how the Respondent will assist Aviation in meeting its sustainability goals. Aviation’s goals are highlighted in the Aviation Department’s

Sustainability Focus (ASF) document available on Aviation’s website at https://www.skyharbor.com/about/Sustainability

Respondents who do not meet the minimum qualifications are encouraged to joint venture partner or sublease with more established firm(s).

1.8. Good Standing

Any Respondent and partners, if any, as defined in Section 1.22, Response Limitation to this

RCS, that currently contracts with the City must be in good standing for its Response to be considered responsive. For purposes of this RCS, good standing refers to compliance with all contractual provisions, including payment of financial obligations.

1.9. Small Business Outreach Requirements

A. Phoenix Sky Harbor International Airport has a national market for small business participation. The City has implemented outreach requirements for this

RCS and Lease. To facilitate this, the City requires outreach to small businesses.

Specifically, each Respondent must:

1. Identify small-business-participation opportunities, including Commercially Useful

Functions (CUF);

2. Actively solicit proposals from small businesses;

3. Evaluate small-business proposals; and

4. Communicate selection decisions to small businesses, including each rejection of a small-business proposal.

B. Successful Respondents must fulfill all required small business outreach requirements and submit all required outreach effort documentation at the time of submittal and on an annual basis.

C. To be considered for a Lease, each Respondent must conduct and document Small

Business Outreach Efforts in compliance with the Airport Concession Disadvantaged

Business Enterprise-Neutral (ACDBE-N) Concession Pre-Award RCS Clause

Attachment D and the USDOT 49 C.F.R. Part 23. Although there are no ACDBE or small business participation goals set for this lease, the City strongly encourages each

Respondent to utilize small businesses in its response. The Small Business Outreach forms, EO1-200 - Statement of Outreach Commitment, EO2-200 - Participants List and

Small Business Outreach Efforts, and EO3-200 - Small Business Utilization https://www.skyharbor.com/about/Sustainability

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

Commitment, marked in Attachment F, Attachment G, and Attachment H, are due at the time of submittal. The Successful Respondent must fulfill all required small business outreach requirements and submit all required outreach effort documentation on an annual basis in compliance with the ACDBE-N Concession Post-Award Lease

Clause Attachment E.

1.10. Equal Pay Requirements

In 2015, the Phoenix City Council amended Phoenix City Code Section IV, Article V, 18-21

Equal Opportunity Requirements, known as the Equal Pay Act, to define expectations of all lessees with the City. The Letter of Declaration, Attachment M, details the Equal Pay Act, as well as Federal and State provisions. As part of the Response for this RCS, Respondents are required to provide information on how they support, communicate, ensure, and comply with these requirements. Respondents are expected to be as detailed as possible.

1.11. Lease Term and Contractual Relationship

The information in this RCS is not intended to completely define the proposed contractual relationship to be entered into by the City and the Successful Respondent. The Lease terms may be amended at the sole discretion of the City at any time during the RCS process and/or prior to execution of the Lease.

The Lease will be effective upon the date of full execution by the City, including the countersignature of the Phoenix City Clerk (Effective Date). The Initial Term of the Lease will begin on the Effective Date and continue for three (3) months or until the date the Successful

Respondent begins operations on the Premises, whichever occurs first. The Primary Term of the

Lease will commence three (3) months from the Effective Date or on the date the Successful

Respondent begins operations of Micro Restaurant (L-MR) in the Premises, whichever occurs first.

The Primary Term of the Lease will be for three (3) years with two (2) one-year renewal options that may be exercised at the sole discretion of the Aviation Director.

Respondents are advised to read the Draft Lease included as Attachment A, to which the

Successful Respondent and its partners, if any, as defined in Section 2.19 - Response Limitation To

This RCS shall be bound. See Affidavit, Attachment J, Paragraph 12 of Assurances.

This RCS is for a non-exclusive Lease with the City. The City will not enter into an exclusive Lease with a Successful Respondent. At any time, the City has the right to award leases to other operators for F&B concessions in operation at the Airport and/or future F&B concessions that may be located within the existing locations or in later additions to locations throughout the Airport.

1.12. Execution of the Lease

The City will send the final Lease to the recommended Respondents after Phoenix City Council approves the Award Recommendation. Within 30 days from the date the Lease was sent, the recommended Respondent must sign and submit the final Lease to the City. The City may request

City Council approval to award the Lease to the next highest qualified Respondent in the event the

City does not receive the signed Lease and all other required documentation from the recommended

Respondent within 30 days. The Lease terms may be amended at the sole discretion of the City at any time during the RCS process and/or prior to execution.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

If the recommended Respondent is subject to regulation by the Arizona Corporation Commission

(ACC), it must be authorized to transact business in Arizona and be in good standing with the ACC at the time it signs the Lease.

1.13. Guarantee Instruments

Response Guarantee: Responses must be accompanied by a two-thousand-dollar ($2,000.00)

Response Guarantee in the form of a cashier’s check payable, without condition or restrictive endorsement, to the “City of Phoenix”. Each Respondent’s Response Guarantee must be submitted in a separate sealed envelope clearly marked “Response Guarantee”.

1. Response Guarantees submitted by unsuccessful Respondent, including Respondent whose submittals were deemed non-responsive, will be returned, without interest, immediately after formal award of the Lease has been made by the Phoenix City Council or after all responses have been rejected by the City.

2. The Response Guarantee of the Successful Respondent will be returned, without interest, immediately after the Successful Respondent has furnished the City with the Performance

Guarantee instruments and insurance policies required by the Lease. Should the Successful

Respondent fail to execute the Lease or furnish the Performance Guarantee instruments or insurance within 30 days from the date the Lease was sent, then the Successful Respondent’s

Response Guarantee will be forfeited as liquidated damages.

A. Performance Guarantee: Prior to the execution of the Lease, the Successful Respondent will be required to post and maintain with the City a Performance Guarantee in the form of a Letter of Credit (LOC) in the amount of nine thousand dollars ($9,000.00). The LOC shall be in the form provided in LOC Form, Attachment J. The Cash Deposit for

Performance Guarantee, Attachment K, shall be submitted in the form provided.

1. Adjustments to Performance Guarantee: City may increase the amount of the

Performance Guarantee by giving the Successful Respondent at least thirty (30) days prior notice of the amount of the increase. The amount of the Performance

Guarantee may be increased for any reason the City deems appropriate, including

(1) an increase of the Successful Respondent’s financial obligations under the

Lease, (2) Successful Respondent failure to pay any Percentage Rent, additional payment, or any other amount when due, or (3) Successful Respondent’s financial condition changes to the extent that City is concerned about Successful

Respondent’s ability to perform under the Lease. Successful Respondent shall pay to City the additional amount necessary to increase the Performance Guarantee upon notice from City.

2. Letter of Credit or Cash: If the Performance Guarantee is in the form of an irrevocable standby Letter of Credit (LOC), then the Successful Respondent shall use the City’s LOC form, attached hereto and marked LOC Form, Attachment J.

The LOC shall be issued by either: (1) a financial institution with counters in the

Phoenix metropolitan area at which the City may make draws on the LOC; or (2) a

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile financial institution with headquarters in the United States on which City may make telefacsimile draws. Unless City receives a written extension of the LOC in a form acceptable to City at least sixty (60) days before the end of the term of the LOC, City, without notice to Successful Respondent, may draw upon the full amount of the LOC and retain all proceeds as a cash performance guarantee. Any changes to the LOC required provisions must be approved in advance by the Aviation Director. If the

Performance Guarantee is in the form of cash, Successful Respondent shall deliver to City a completed Cash Deposit for Performance Guarantee, Attachment K, Form attached hereto.

3. Duty to Restore: The Performance Guarantee ensures the full and timely performance by Successful Respondent of all its obligations under the Lease and is security payment by Successful Respondent of all claims by City. City may draw on or make a claim against the Performance Guarantee if the Successful Respondent breaches or fails to perform under the Lease. If City draws on or makes a claim against the Performance Guarantee, then Successful Respondent, upon demand from City, shall replenish the Performance Guarantee to its previous amount within thirty (30) days of City’s draw or claim.

4. Return: After the expiration or earlier termination of the Lease, City will return the

Performance Guarantee to the Successful Respondent less any Fees, Additional

Payment, or any other amount due to City.

1.14. Pre-Offer Conference

Respondents are strongly encouraged to attend the Pre-Offer Conference. Respondent may attend in person at the Aviation Headquarters or virtually via WebEx. See Section 1.2 –

Schedule of Events for the date, time, address and meeting link.

To request a reasonable accommodation, please contact the Procurement Officer, no later than fourteen (14) calendar days prior to the date and time listed in the Schedule of Events.

The Respondent assumes all risk associated with using the information, including its accuracy, relevance, and/or materiality to the formulation of its Response.

1.15. Questions and Answers (Q&A) Process

Respondents are strongly encouraged to read this RCS in its entirety, including all attachments, exhibits, and appendices. Failure to read and/or understand any portion of this RCS shall not be cause for waiver of any portion of the RCS or subsequent Lease.

If Respondent discovers any mistakes, improprieties or defects, they should submit a report of any mistakes, improprieties, or defects in writing to the Procurement Officer no later than the question deadline listed in the Schedule of Events.

Respondents and their partners, if any, as defined in the Response Limitation to this RCS section, are encouraged to submit questions as a team rather than individually to avoid submitting repetitive questions, which will allow Aviation to answer all questions more efficiently.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

All questions about this RCS, including the Draft Lease, should be submitted in the City’s

Procurement Portal and must be received by the due date indicated in the Schedule of Events.

All written questions will be responded to in writing and available at the City's Procurement

Portal.

1.16. Addendum to the RCS

Aviation may amend this RCS before or after the solicitation deadline listed in the Schedule of

Events. Changes to this RCS will be in writing as an addendum and posted at the City's

Procurement Portal. Respondents are responsible for checking the website and reviewing all updates and postings.

Respondents may not rely on any statement by any City employee, consultant or official regarding this RCS unless the statement made is published as an addendum or confirmed in writing as part of the Q&A process.

1.17. Respondent Exceptions

The City will award the Lease on a fair and competitive basis and will not accept any changes to the material provisions or requirements of this RCS or Lease. Respondents that take exception to, add to, or subtract from any material provision or requirement of this RCS or Lease may be considered as attempting to change the provisions or requirements of this RCS to gain an unfair advantage over other Respondents. Responses including such exceptions or changes, or that are conditional, are subject to rejection as non-responsive Responses. Non-material exceptions or changes will only be considered if approved by the City during the Q&A process.

NO NEW EXCEPTIONS OR CHANGES TO THE RCS OR THE LEASE WILL BE

CONSIDERED AFTER THE Q&A PROCESS.

1.18. Airport Security

Individuals assigned to work at PHX as a result of this RCS must pass a fingerprint-based

Criminal History Records Check, pass a Federally-mandated Security Threat Assessment, and obtain an Aviation-issued security credential or badge.

Successful Respondents must comply with all airport security requirements. Visit:

https://www.skyharbor.com/airport-business/security-badging/ for current information and https://www.skyharbor.com/airport-business/phx-information/rules-regulations/ for current

Airport Rules and Regulations.

1.19. Exclusive Beverage Rights

The City reserves the right to enter into an exclusive beverage pouring rights agreement. The

City retains sole authority to solicit and execute product advertising and sponsorship agreements for non-alcoholic beverages, including but not limited to carbonated beverages, sports drinks, juices, and bottled water for display and sale at the Airport. .

Should the City elects to issue a solicitation for exclusive beverage pouring rights, the City will provide the Successful Respondent with a minimum of twelve (12) months advance written https://www.skyharbor.com/airport-business/security-badging/ https://www.skyharbor.com/airport-business/phx-information/rules-regulations/

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile notice prior to issuing such solicitation. Upon this written notice, the City agrees to engage with the Successful Respondent to gather input regarding operational considerations and implementation of exclusive beverage pouring rights provider. The Successful Respondent agrees to cooperate with and assist the City, as necessary, in implementing such exclusive agreements.

1.20. Consolidated Receiving and Distribution Center (CRDC)

The City reserves the right to develop, construct, and operate a Consolidated Receiving and

Distribution Center (CRDC) during the term of this Lease. The City agrees to provide the

Successful Respondent with advance written notice of its intent to develop a CRDC, a minimum of two (2) years prior to facility construction commencement, and written advance notice of its intent to solicit for CRDC logistics management service, a minimum of one (1) year prior to issuance of such solicitation. During the planning and development process, the City agrees to engage with the Successful Respondent to gather input on facility operational needs; however, the City shall retain final decision-making authority regarding all aspects of the CRDC development. If the City implements a CRDC operation, the Successful Respondent, along with the Successful Respondent’s joint venture partners, subcontractors, and authorized vendors, will be required to utilize this facility and all costs associated with CRDC operations will be allocated to the Successful Respondent in accordance with terms established by the City.

1.21. Commercial Delivery on the Airfield

Due to various height restrictions (13’) based on delivery locations, the City reserves the right to regulate and approve all commercial delivery vehicles to be used on the airfield. This includes the Successful Respondent and/or joint venture partner(s) and all of their authorized vendors.

Only badged drivers with the required airport insurance limits have to be escorted by concessionaire personnel when accessing the airfield or sterile areas. All products/equipment must be readily accessible for visual inspection by security team members at the gate for entry to the airfield.

1.22. Response Limitation to this RCS

Respondent may submit only one (1) Response for this RCS. Multiple Responses are prohibited. The following shall be deemed Multiple Responses.

o The City receives more than one (1) Response from a Respondent.

o The City receives one (1) Response from a Respondent and one (1) or more

Responses from any entity or person affiliated with the Respondent.

If Multiple Responses are received from a Respondent, all Responses from that Respondent shall be deemed non-responsive and rejected.

Respondent and an entity or person affiliated with the Respondent (partner) include:

o A parent and its subsidiary.

o A holding company and its constituent company.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile o Constituent companies of a single common holding company.

o Subsidiaries of a common parent.

o A limited liability company and a member or manager of the limited liability company.

o Limited liability companies with common members or managers.

o A partnership and one of its partners, or multiple partners in a single partnership.

o A person or entity proposing as a joint venture partner or joint venture, subtenant, licensee, or vendor on separate Responses.

o A person or entity proposing as a prime or sole Respondent also proposing as a joint venture partner, subtenant, licensee, or vendor on a separate Response.

o A person or entity proposing as a subtenant, licensee, or vendor on a separate

Response.

o Two or more Respondent where the president, vice president, officer (including chief operating officer, chief executive officer, and chief financial officer), agent, majority owner or stockholder, management employee, managing or controlling partner, or controlling owner of one Respondent is also the president, vice president, officer

(including chief operating officer, chief executive officer, and chief financial officer), agent, majority owner or stockholder, management employee, managing partner, or controlling owner of any other Respondent.

It is the intent of the City that this prohibition applies regardless of whether the affiliated person or entity submits a response independently or as a partner of a joint venture or other partnership.

The prohibition on Multiple Responses does not preclude a person or entity from participating on more than one Response as a subtenant, licensee or vendor only, or submitting a Response as a

Respondent and participating as a subtenant, licensee or vendor on a different Respondent’s team.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

2. Scope of Work

2.1. Food & Beverage Concept Requirements:

A. The Successful Respondent is to provide high-quality food and beverage services at

Phoenix Sky Harbor International Airport (PHX) Terminal 3 (T3) pre-security locations identified in the Premises. The goal is to establish a high-quality, innovative, and customer-friendly Micro Restaurant and a Mobile Kiosk that delivers authentic local food and beverage experiences that meet all regulatory and operational standards. The

Successful Respondent will be required to plan, maintain, manage, staff, and stock the

F&B concession locations, at its sole cost, in accordance with the Lease. The Successful

Respondent will enter into a Lease with the City. A draft of the Lease can be found in

Draft Lease, Attachment A, and a map of the Premises of the T3 F&B Micro

Restaurant and Mobile Kiosk can be found in Premises Map, Attachment B.

B. The Successful Respondent will be required to participate in any relevant airport-wide programs and initiatives, systems, or applications, including, but not limited to, customer loyalty programs, airport marketing programs, customer service experience programs, or mobile ordering systems for food and beverage purchases. The Successful Respondent will conduct operations in a professional, business-like manner so as not to disturb or be offensive to other tenants or patrons and will not provide or sell any additional services unless approved in writing by the Aviation Director. The Successful Respondent will not use or permit the use of leased space(s) for any activity not expressly permitted in the

Lease.

2.2. F&B Categories & Concession Spaces:

This section of the RCS contains a list of the F&B categories identified for this T3 solicitation.

Each category contains a description of the type of concept and menu items desired by the City.

In addition, the F&B category descriptions include the Store ID specifying the location of the concession space and square footage.

Respondent may not propose changes to the category descriptions or total square footage listed for each concession space. Respondents are required to propose a concept for the F&B categories in this solicitation.

F&B Categories & Spaces:

A. Micro Restaurant: 1,225 square feet (includes seating) in L-MR

B. Mobile Kiosk: 150 square feet in L-MK

C. F&B Operational Storage space: 210 square feet in L-

STOR:

Additional F&B operational storage space may be available during the term of the

Lease.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

2.3. F&B General Standards and Concepts:

The following general standards and concepts will be applied to the T3 Food & Beverage

Concessions.

A. The following general standards and concepts will be applied to the T3 F&B

Concessions.

1. The City desires each concession space to be used for maximizing customer service and revenues. The concept should offer only premium quality products, served quickly and efficiently in high-quality, sustainable packaging that is portable for air travel.

2. If appropriate to the concept, the space should have state-of-the-art projection and/or flat screen televisions featuring sports, special events and news programs all day long. Successful Respondent shall submit for Airport’s approval on any and all television programming packages to be used, or music to be played, within the

Premises, prior to the implementation of such programming or music. Successful

Respondent must also ensure that the captioning function is enabled on all televisions for any programming, live or prerecorded, shown within the Premises.

3. The layout of the concept space should work for different customers – open, friendly areas for people who want to connect with others while dining, and efficient service areas for quick grab-and-go ordering.

4. Successful Respondent shall ensure that the F&B concept spaces and services are compliant with the ADA, allowing all passengers to enjoy the concept spaces and services.

5. All areas of each concept space should be used for revenue-producing purposes, except for seating areas designated for customer comfort.

2.4. F&B Menu Expectations:

A. Micro Restaurant (L-MR): This unit operates on a smaller scale than a traditional casual dining restaurant, in terms of physical size and menu offerings. Aimed at providing both convenience and culinary delight, the Micro Restaurant offers fast-casual dining with quality food options. It is ideal for customers seeking a comfortable place to sit and eat, with menu choices for all tastes and dietary preferences. The concept should reflect an authentic local food and beverage experience.

The unit should offer a variety of beverages, including coffee, tea, and specialty options such as espresso, latte, cappuccino, and tea-based drinks. It may also offer additional beverage options, including alcoholic beverages, subject to appropriate licensing. Food offerings should include hot items like sandwiches, pizza, and chicken tenders; fresh selections such as salads, pastries, and parfaits; and a range of dietary choices, including

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile gluten-free, vegetarian, and vegan options. Convenient pre-packaged food items should also be available for sale in a to-go format. Successful Respondents are encouraged to use environmentally friendly packaging that is easy to dispose of.

The Micro Restaurant unit must offer breakfast, lunch, and dinner menus, as well as a separate children's menu. Breakfast service must be available until at least 10:30 a.m.

The children’s menu must be easily accessible to traveling families. All menus must offer a variety of food items at various price points, and should include healthy dietary options, such as gluten-free, vegetarian, and vegan choices.

Alcohol sales and consumption are limited to the Premises. The Successful Respondent must obtain appropriate liquor licenses to allow for the sale and consumption of alcohol at the designated Premises. Factory-sealed alcoholic beverages can be sold on the “to go” menu, but cannot be consumed on Airport premises, as long as such sales are permitted by law and the applicable liquor license. The sale and shipment of all liquor must comply with the appropriate liquor laws, including City ordinances of the State of Arizona laws, and the liquor laws of the state to which the shipments are made.

B. Mobile Kiosk (L-MK): The Mobile F&B Kiosk offers both convenience and quality refreshments. Located in the baggage claim area, it is ideal for customers waiting for luggage, greeting arriving passengers, or looking for a quick refreshment before leaving the terminal. The concept should provide a local coffee experience that customers recognize as a specialty coffee and tea company.

The unit must primarily offer coffee and tea, including coffee-based beverages like espresso, latte, and cappuccino, as well as tea-based drinks. The unit may also offer other non-alcoholic beverages and food items, such as pastries, parfaits, sandwiches, or salads. The unit may also include packaged and pre-packaged food items available for sale in a to-go format. The Successful Respondent is encouraged to use environmentally friendly packaging that is easy to dispose of.

The menu must offer a variety of price points for beverages and food items, if applicable.

If food is offered, the menu should include healthy dietary options, such as gluten-free, vegetarian, and vegan choices.

C. Successful Respondent must keep up with F&B trends and change menu offerings to reflect Airport customer needs and preferences. All changes to menu items and prices require prior written approval from the Aviation Director.

2.5. Ownership and Operation of Micro Restaurant, Mobile Kiosk and F&B Equipment

A. Ownership: The Micro Restaurant, Mobile Kiosk, and all associated equipment

(collectively, the F&B Micro Restaurant and Mobile Kiosk Equipment List, Attachment DD, will remain the exclusive property of PHX. The Successful Respondent acknowledges that it has no ownership rights in the kiosk equipment.

Title: Terminal 3 Food & Beverage Concessions Operator (Small Business Opportunity) Micro Restaurant and Mobile

B. Utilities: Successful Respondent is responsible for any necessary improvements or upgrades to utility service to the food service areas, and the cost of connecting any equipment or improvements to the utility services as well as any other changes the operator requests from the Premises.

C. Operation and Maintenance: The Successful Respondent shall operate the City-owned equipment in accordance with the terms of the Draft Lease, Attachment A, and any additional operational guidelines provided by the Airport. The Successful Respondent agrees to use the F&B Equipment solely for the purposes specified in this Agreement and to maintain the F&B Equipment in an attractive, inviting, and good working condition, subject to normal wear and tear. The Successful Respondent will comply with all applicable accessibility requirements in the Americans with Disabilities Act (ADA) and in all other federal, state, and local governmental laws and regulations.

D. Repairs and Maintenance: The Successful Respondent shall be responsible for promptly reporting any malfunction or damage to the Equipment to the Airport. The Successful

Respondent will be responsible for the cost of repairs for any damage to the Equipment.

Routine maintenance and repairs shall be the responsibility of the Successful

Respondent.

2.6. Concessionaire Standards and Operations:

A. The Successful Respondent…