RFP No C001 Fixed Base Operator, Dulles Airport. May 3, 2017

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1 RFP No C001 Fixed Base Operator, Dulles Airport May 3, 2017 Questions and Answers Notice: Questions may have been edited for clarity and relevance. 1. Question: RFP Section I.I. Is Jet Aviation Dulles, LLC (dba Jet Aviation) and IAD DC Holdings, LLC (dba Jet Aviation) one in the same? If different, please identify and provide a copy of the two different contracts each entity holds. This is a typo. The correct entity is Jet Aviation Dulles LLC. Updated language will be included in Amendment Three. 2. Question: RFP Section I.I. Please provide the gross receipts of Jet Aviation (and predecessor companies) for the same period. Please see table below: 3. Question: RFP Section III.C.1. Do all exhibits need to be on 8.5 by 11 paper? Exhibits can be on larger paper. 4. Question: RFP Section IV. Proposal Guarantee In addition to a certified check, cashier's check, money order, or irrevocable letter of credit, can the proposal guarantee of $50,000 be in the form of a performance bond? Yes. 5. Question: RFP Section VI.A. Are the Facility Fee and Landing Fees included in the MAG? No. Those are in addition to the MAG. Please refer to the Section IV.B of the RFP. Questions and Answers for RFP 6-17-C001 Page 1 of 7

2 6. Question: RFP Section VI.B. When will MWAA have the appraisal and Annual Facility Rent of the Premises complete? The Authority is in the process of hiring an appraiser, and hopes to have a completed appraisal within the next 90 days. 7. Question: RFP Section VII.A.1.c. With over 200 locations worldwide, provision of this information will use several pages of the 60-page limit. Is it possible to limit the identified FBO locations to domestic commercial service airports? The key comparable FBOs should be in the body of the response, but the entire listing of all FBOs can be included as an Exhibit (not included in the page limit). 8. Question: Contract Section 8.02 (A)(1) Insurance Products and Completed Operations coverage is provided by insurance companies in the aggregate and not per occurrence. This section requires Products-Completed Operations coverage be provided "per occurrence". Request this requirement be change to "aggregate" to maintain consistency with industry standards and availability of coverage. Updated language will be included in Amendment Three. Airport Liability (including vehicles/mobile equipment) Insurance shall be a limit of not less than Two Hundred Million Dollars ($200,000,000) per occurrence, with sublimits and aggregates where applicable. 9. Question: Who will be the evaluation and interview members of the IAD FBO RFP proposals? The Airports Authority does not identify members of the Technical Evaluation Panel. Members of the panel should not be contacted during the solicitation process. 10. Question: Does Signature share a portion of the FBOs revenues with the Dulles Jet Center for use of the Dulles Jet Center's aprons and hangars and associates fuel sales to Dulles Jet Center customers? Please refer Exhibit C SFS-Landow Ground Sublease Agreement, Article 25 FUEL PURCHASES and Article 26 AIRCRAFT PARKING AND AIRCRAFT STORAGE AND LANDING FEES. 11. Question: Since the rent for the leased premises will not be determined until after the IAD FBO RFP proposal due date, will there be a BAFO to consider the rent once determined? The Airports Authority will issue an amendment with the appraised value, if it is available in a timely manner. While it is anticipated that the appraisal will be complete before BAFOs are requested, if the appraisal is not completed before BAFOs are requested, the Airports Authority will provide an estimate based on a recent appraisal of similar airport property. 12. Question: Exhibit E indicates that the combined fuel volumes for the airport were exactly the same in 2014 and 2016 at 13,527,486 gallons. Can you confirm this is accurate? Updated table below and will be included in Amendment Three. Questions and Answers for RFP 6-17-C001 Page 2 of 7

3 13. Question: Regarding the retail sale of aviation fuel, is the 17% concession fee on retail fuel calculated on the sales price net of discounts or on the gross price prior to discounts? Please refer to Section 5.01 for the definition of Retail Sales of Aviation Fuel and Section 5.02 for the definition of Gross Receipts. 14. Question: Please confirm that the proposed year 1 annual facility rent amount will be provided to bidders prior to the deadline for submissions. See response to question #11 above. 15. Question: Please provide historic common area maintenance costs for the property. There are no common area maintenance costs assessed by the Authority. However, there are commercial area cost allocations for utilities assessed for the property. Additionally, there are commercial area cost allocations assessed for police, fire and roads/grounds assessed to the Corporate Hangar tenants. 16. Question: Please provide historic utility costs for the property. Utility costs for 2016 were $265, Question: Please provide last 12 months of concession reports for the facility. Attached. 18. Question: How much fuel was sold by the Corporate Hangar Premises? The Corporate Hangar Premises does not sell fuel. Any fueling of tenants of DJC on the premises must be sold by the FBO. 19. Question: Pg 42, (c) Fuel Revenue Sharing: Signature agrees that it shall pay to Sub lessee nine (9%) percent of Signature s Net Margin on all Fuel Gallons purchased by Corporate Hangar Premises-Based Aircraft to the airport. Are these gallons exempt from the Concession Fees? If no, can the 9% be deducted from the gross receipts? No, the payment to Sublessee of 9% of Net Margin on all Fuel Gallons purchased by Corporate Hangar Premises-Based Aircraft required by the Supplemental Agreement may not be deducted from Gross Receipts. Please refer to Section 5.01 of the Contract for the definition of Retail Sales of Aviation Fuel and Section 5.02 for a description of how Gross Receipts are to be calculated. 20. Question: Exhibit C (SFS and Landow Lease), Pg 5, 2.4 Proposed Date of Beneficial Occupancy. What is the Date of Beneficial Occupancy as stated on the Certificate of Occupancy? The Airports Authority extended the period of the DJC lease, to reflect the partial destruction of the corporate hangars and the period during which the hangars were unusable. The new termination date of the DJC lease is July 31, Question: Please confirm that Other Revenues in Exhibit E include Ground Handling Fees, deicing, and all other concession fees. Yes. 22. Question: How much general aviation de-icing was delivered at IAD in the past 12 months? This information is not reported to us and is unavailable. Questions and Answers for RFP 6-17-C001 Page 3 of 7

4 23. Question: Is there a designated de-icing zone? Is it communal? Who controls the flow of aircraft on the de-ice area? Can we deice on our own ramp? The FBOs are allowed to de-ice on their ramps, but: The Airports Authority prohibits the use of ethylene glycol based aircraft deicing fluids at Dulles Airport. The Airports Authority also prohibits the use of airfield pavement deicers containing urea at Dulles Airport. The FBO operators have to apply for an Aircraft Deicing Authorization each year (see attached Orders and Instructions IAD 5-2-2D for more information). The deicing must occur in designated areas on their ramps where deicing fluid runoff will not impact storm water drains. The FBO operators have to coordinate with Airport Operations and the Airports Authority s aircraft deicing fluid recovery contractor (Inland Technologies) before they begin deicing. There are designated deicing areas which are utilized by specified commercial airlines, but the designated deicing areas are not communal. The airlines and the FAA control the flow onto the designated deicing areas. 24. Question: How many aircraft are based at Signature IAD? How many operators? There are no aircraft based at Signature. Based aircraft are restricted to the Dulles Jet Center and there are approximately 30 subtenants. 25. Question: Is current maintenance operator under a contract that will be assumed by the operator that is awarded bid? The MRO is operated by TECHNICAir. There is no sublease that must be assumed. 26. Question: Please provide a list of all Assignment or Subleases that will be assumed by the operator that is awarded bid. Have there been any defaults or violations committed by the Subleases? Dulles Jet Center operates under a ground lease between Landow Aviation and Signature Flight Support. The successful offeror would assume assignment of that ground lease, as well as the Supplemental Agreement between Signature Flight Support and the Airports Authority for development and management of corporate hangar facilities. The ground lease is current and not in default. 27. Question: What are the reported maintenance revenues? Please refer to the monthly certified statements included in as attachments to this question and answer set. 28. Question: Are there any outstanding environmental issues that will be assumed by the operator that is awarded bid? Please provide any historical SWPPP violations or notices for the premises. A valve that serves the trench drain needs to be replaced and tested. Upon repair, the incumbent will conduct another test to ensure the trench drain system is leak proof. The oil water separator had issues that required repair. All repairs required by the Authority to the oil water separator have been made. 29. Question: Will the commercial valuation of the RFP property (rents) be available to the bidders in for time for use for the bid preparation? Please see response above to question #6. Questions and Answers for RFP 6-17-C001 Page 4 of 7

5 30. Question: What is the transition plan for the change of operators? How much lead time will be allowed for startup operations? The Airports Authority anticipates 4 to 6 weeks of transition between contract award notification and contract start date. 31. Question: Should we assume that all items in the terminal will be removed by the incumbent before the new lease takes effect? What fixtures will remain? The incumbent is required to leave fixed improvements, but is allowed to remove furniture, fixtures and operating equipment. 32. Question: What access to the facility will be made available to a new successful bidder to renovate/establish operations to allow for a seamless transition? Any renovations would have to be undertaken after the contract start date. The Airports Authority would assist in providing access for planning purposes only. 33. Question: Does the 2nd floor office space associated with the hangar have any use limitations? Please refer to ARTICLE 3, Section 3.01 Concession Rights Granted, Section 3.03 Primary and Optional Commercial Support Services and Section 3.04 Subleasing of the draft contract. A lease to a non-aviation company is not a permitted use of the premises. Any such use would require prior written approval of the Authority. 34. Question: If we were to lease the 2nd floor offices to a non-aviation company, and the company generated revenue for services that neither arrive nor depart the airport, would those revenues be subjected to percentage as an Other Gross Receipts, with the exception of office rent? A lease to a non-aviation company is not a permitted use of the premises. Any such use would require prior written approval of the Authority. 35. Question: Is it necessary for the newly formed partnership entity to be in existence when the RFP Submittal is made or can we form the appropriately qualified partnership entity once we have been informed that we are the selected proposer? Partnership can be formed upon contract award. 36. Question: If the Offeror has a partnership with a foreign company, what financial information should be submitted in lieu of tax return statements? Can the financial information be in foreign currency, or does it have to be in USD? Audited financials are in a foreign language. Would these financials be accepted? If not, what are acceptable alternative sources of financial ability? Offerors must submit the financial information and ability as enumerated in the RFP. All information must be provided in USD and in English. 37. Question: When will the monthly MAG payment be adjusted to represent the annual amount? Quarterly? Please refer to Section 5.01of the draft contract. The Minimum Annual Guarantee is adjusted annually on the anniversary of the contract start date based on the MAG bid by the selected Offeror for each contract year. Questions and Answers for RFP 6-17-C001 Page 5 of 7

6 38. Question: How was the proposed $11,000,000 minimum annual guarantee determined? Based on industry research and recent experience with comparable solicitations. 39. Question: Please provide an example of how the percentage fee on fuel would be calculated (taking into account federal, state, and local taxes)? Please define the difference in Retail Sale Gallons (all sales not within Put-Thru definition) and Put-Thru Gallons (from aircraft operator inventories). Are into plane (ITP) fees for buy-back fuel sales subject to concession fees? Please refer to Section 5.01 for the definition of Retail Sales of Aviation Fuel and Section 5.02 for the definition of Gross Receipts. There is no specific provision related to buy-back fuel. 40. Question: What are the current annual costs for utilities on the premises that are the responsibility of the operator? See response to question #16 above. 41. Question: Please list the historical annual repair and maintenance costs for the premises. The repair and maintenance costs are not required to be reported by the contractor to the Airports Authority, and are therefore not available. 42. Question: Are the current operator s employees represented by any labor organization and, if so, which bargaining unit? This information is not available. 43. Question: Please provide the personnel and staffing statistics (e.g. list the total number of managers, supervisors, staff members) of the incumbent. The information is not available. It is incumbent upon the Offerors to propose what it plans for staffing and management under its own operating plans. 44. Question: Is the successful FBO eligible to provide fuel and services to commercial/scheduled airlines? The FBO is not able to provide fueling and other services for scheduled commercial flights. The FBO may provide fueling and other services for chartered flights by commercial airlines. Please refer to Section 3.03G of the draft contract. 45. Question: Are there interior drawings/plans available for the facilities (FBO, Hangars)? Attached. 46. Question: Is there a minimum quantity for the service equipment required (fuel trucks, tugs, deice, etc.)? Please refer to section 3.11 of the draft contract for equipment requirements. 47. Question: What non-fbo operators or tenants on the airport currently possess airport authorized self-fueling permits? Each FBO is authorized to sell fuel to its customers and to tenants of the corporate hangars on their respective premises. Swissport Fueling and ASIG have into-plane fueling permits for Signatory and Non-Signatory Airlines in designated areas only. Questions and Answers for RFP 6-17-C001 Page 6 of 7

7 48. Question: Clarify if any landings are exempt from the landing fees, i.e. FBO s with internal charter departments or all tenants with approved leases, military aircraft, and government aircraft? Government owned or military aircraft are exempt from landing fees as per the Authority regulations. 49. Question: Please provide cleaning and maintenance records for the oil/water separators. The incumbent is responsible for maintenance records, this information is not available. 50. Question: When was the last major repair or resurfacing of the aircraft parking aprons? What is the expected remaining life? Last known slab replacement and rehabilitation of the AOA apron concrete and asphalt areas was around (Based on approved drawings). The concrete joints were resealed with hot pour sealant sometime around Average expected life of seals is 3-6 years. 51. Question: When was the last major repair or resurfacing of the vehicle parking lot? What is the expected remaining life? We do not have information as to when the pavement was last replaced. It is likely, judging from the current condition, that it is over 15 years old. The life expectancy of a well-designed, well-built and well-maintained asphalt parking lot ranges between 10 to 15 years. However, without proper maintenance, a parking lot will deteriorate significantly in as little as 5 to 7 years. The lot has exceeded its useful life. The failure rate will only compound as water and ice penetrates the sub surface. 52. Question: The sidewalk and curb on Windsock Dr at the driveway of the FBO is deteriorating. Who s responsible for maintaining and repairing the sidewalk? MWAA to maintain asphalt pathway and curb/gutter along Windsock Drive. 53. Question: Please provide a copy of the Authority s Design Manual in reference. The link to the Airports Authority Design Manual is as follows: Questions and Answers for RFP 6-17-C001 Page 7 of 7

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