Tourism Development Act Applicant Financial Reviews

The Commonwealth of Kentucky's Tourism, Arts & Heritage Cabinet is conducting a Request for Proposal (RFP) to procure personal service consulting contracts for evaluating Kentucky Tourism Development Act (KTDA) applications. The Cabinet anticipates awarding up to three contracts to qualified vendors who will provide comprehensive economic and fiscal impact analysis services for tourism development projects seeking state incentives. The scope of work requires consultants to review applicant information, conduct statistical and financial analyses, prepare occupancy studies for lodging facilities within a 50-mile radius of proposed projects, analyze net positive fiscal impacts while considering competing projects, perform site visits at project initiation, and present findings at public Kentucky Tourism Development Finance Authority meetings either in person or via video conferencing. Deliverables include multiple report drafts addressing statutory compliance under KRS 148.851 and 148.853, with typical analysis timelines of six to eight weeks for initial drafts and two draft iterations before final issuance. Required qualifications include demonstrated expertise in economic and fiscal impact analysis, financial analysis, and the tourism industry. Technical proposals will be evaluated on a maximum of 250 points, comprising qualifications (25 points), previous experience with similar projects and sample reports (40 points), detailed work plan and methodology for a hypothetical full-service hotel project (100 points), and budget detail with hourly rates and reimbursable expenses (35 points), with potential additional oral presentation points up to 50 points if required of top-ranked vendors. The RFP was released February 23, 2026, with a mandatory offeror's conference held March 26, 2026 via Zoom; written questions were due by March 4, 2026; and technical proposals were due by 3:30 PM Eastern on April 22, 2026. The initial contract term runs from July 1, 2026 through June 30, 2028, with renewal options for up to two additional two-year periods subject to approval by the Secretary of the Finance and Administration Cabinet and the Legislative Research Commission's Government Contract Review Committee.

Kentucky resident bidders are eligible for reciprocal preferences of 5-15 percent of maximum points, and qualified bidders including nonprofits serving individuals with severe disabilities may receive similar preferences; additionally, Kentucky Correctional Industries receives a 20 percent preference if claiming qualified bidder status. No incumbent vendor is identified, as this RFP represents a transition from the current single-vendor structure to a multi-vendor arrangement. All vendors must maintain Commercial General Liability Insurance of at least $1,000,000 per occurrence and $2,000,000 aggregate, as well as Professional Liability Insurance of $1,000,000 per claim. Cost proposals are not evaluated separately; instead, consulting fees are determined on a project-by-project basis after preliminary application approval, with all costs charged directly to KTDA applicants and transferred to the Cabinet as a pass-through payment per statute. Neither the Commonwealth nor the Cabinet bears responsibility for consultant study costs, and work will not commence until the applicant provides funds to cover estimated costs. All authorized reimbursable expenses, including travel costs for site visits and data acquisition, are reimbursed on an out-of-pocket basis only, with vendors required to maintain supporting documentation. Based on historical data from 2021-2025, consultants reviewed an average of two lodging facility projects, four tourism attraction projects, and two combination projects annually, though specific budget ranges or award values are not disclosed in the RFP documents.