Addendum No. 1 Acknowledgement of Receipt

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1 Department of Aviation Airport Office Building 8500 Peña Blvd., 8 th Floor Room 8810 Denver, Colorado October 1, 2015 ALL PROSPECTIVE PROPOSERS FOR DENVER INTERNATIONAL AIRPORT REQUEST FOR PROPOSALS FOOD AND BEVERAGE CONCESSION HOTEL AND TRANSIT CENTER RESTAURANT, HOTEL AND TRANSIT CENTER CONVENIENCE, CONCOURSE B AND CONCOURSE C RE: ADDENDUM NO. 1 Attached for your information is Addendum No. 1 to the Request for Proposals for the Food and Beverage concession opportunity, Hotel and Transit Center Restaurant, Hotel and Transit Center Convenience, Concourse B and Concourse C at Denver International Airport. Please include the attached Addendum No. 1 Acknowledgement of Receipt with your proposal. Proposals that do not include this acknowledgement may be rejected. Addendum No. 1 includes: Acknowledgement of Receipt Addendum No Page 2 Corrections/Revisions... Page 3 Additional Inrofmation... Page 3 Sincerely, Gerard Stafford Project Manager 1

2 DENVER INTERNATIONAL AIRPORT REQUEST FOR PROPOSALS FOOD AND BEVERAGE CONCESSION HOTEL AND TRANSIT CENTER RESTAURANT, HOTEL AND TRANSIT CENTER CONVENIENCE, CONCOURSE B AND CONCOURSE C ADDENDUM NO. 1 ACKNOWLEDGEMENT OF RECEIPT I hereby certify that I have received and read Addendum No. 1 to Request for Proposals Food and Beverage concession opportunity, Hotel and Transit Center Restaurant, Hotel and Transit Center Convenience, Concourse B and Concourse C at Denver International Airport, dated September 1, I am attaching this acknowledgement to my proposal. DATE: SIGNATURE OF PROPOSER: If an individual: Doing business as: By: If a partnership: Doing business as: By: If a corporation: Doing business as: By: Title: NOTE: THIS STATEMENT MUST BE ATTACHED TO EACH PROPOSAL AND RETURNED NO LATER THAN 2 PM, OCTOBER 8, DENVER INTERNATIONAL AIRPORT REQUEST FOR PROPOSALS FOOD AND BEVERAGE CONCESSION 2

3 HOTEL AND TRANSIT CENTER RESTAURANT, HOTEL AND TRANSIT CENTER CONVENIENCE, CONCOURSE B AND CONCOURSE C ADDENDUM NO. 1 CORRECTIONS/REVISIONS: FOOD AND BEVERAGE CONESSION REQUEST FOR PROPOSALS This addendum acknowledges that questions number 1-108, submitted through September 22, 2015 have been answered and posted at the following link: 1. Page 11, H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION Concession Location Merchandising Plan Concession Location Area (Sq. Ft.) HTC Restaurant Casual Dining / Bar HTC 1 7,750 HTC Convenience Branded Coffee / Convenience HTC 2 1,262 Concourse B Casual Dining / Bar R E18-S5-1 3,573 Concourse C Casual Dining / Bar R E19-S5-1 2,327 Total Package 14,912 H. CONCESSION OPPORTUNITY, DESCRIPTION & INFORMATION Concession Location Merchandising Plan Concession Location Area (Sq. Ft.) HTC Restaurant Casual Dining / Bar HTC 1 9,531 HTC Convenience Branded Coffee / Convenience HTC 2 1,262 Concourse B Casual Dining / Bar R E18-S5-1 3,749 Concourse C Casual Dining / Bar R E19-S5-1 2,327 Total Package 16,869 3

4 2. Page STRENGTH OF THE PROPOSED CONCEPT AND DESIGN 3. STRENGTH OF THE PROPOSED CONCEPT AND DESIGN (This section can contain up to 40 pages.) 3. STRENGTH OF THE PROPOSED CONCEPT AND DESIGN (This section can contain up to 60 pages.) 3. Page 49. C. ACDBE PARTICIPATION c. ACDBE participation. Describe how you intend to meet of how you made a good faith effort to meet the City s ACDBE participation goal for this RFP, and for each ACDBE, provide a complete description the nature of their participation, and their experience and qualifications. (If the ACDBE goal established is 25% in Section I, Paragraph O ACDBE REQUIREMENTS, this subsection may be omitted; however, the City encourages ACDBE participation through other means.) c. ACDBE participation. Describe how you intend to meet of how you made a good faith effort to meet the City s ACDBE participation goal for this RFP, and for each ACDBE, provide a complete description the nature of their participation, and their experience and qualifications. (If the ACDBE goal established is 0% in Section I, Paragraph O ACDBE REQUIREMENTS, this subsection may be omitted; however, the City encourages ACDBE participation through other means.) 4. Page REQUIRED FORMS 76. Required Forms a. Proposal Checklist and Attachment A (This form completed and executed) b. Proposer Questionnaire (Complete and execute using form provided) 1. Attach financial information as required in Part 4 Financial information c. ACDBE and M/W/S/BE Participation and Commitment Forms 1. Diversity and Inclusiveness in City Solicitations Information Request Form d. Percentage Fee Rate e. Brand Portfolio Affidavit (Complete and execute using form provided) 4

5 f. Evidence of Licensing or Franchising Authority Include a letter from the brand owner stating that the proposer will be authorized to operate using the brand. (Further evidence will be required prior to execution of the concession agreement). g. Capital Investments and Funding h. Proposal Surety Letter of Credit or Proposal Bond (complete and attach using form provided) i. Addenda Acknowledgment Sheets j. Proposal Documents k. Sample Concession Agreement l. Concentration Policy 7. Required Forms a. Proposal Checklist and Attachment A (This form completed and executed) b. Proposer Questionnaire (Complete and execute using form provided) 2. Attach financial information as required in Part 4 Financial information c. ACDBE and M/W/S/BE Participation and Commitment Forms 1. Diversity and Inclusiveness in City Solicitations Information Request Form d. Percentage Fee Rate e. Brand Portfolio Affidavit (Complete and execute using form provided) f. Evidence of Licensing or Franchising Authority Include a letter from the brand owner stating that the proposer will be authorized to operate using the brand. (Further evidence will be required prior to execution of the concession agreement). g. Capital Investments and Funding h. Proposal Surety Letter of Credit or Proposal Bond (complete and attach using form provided) i. Addenda Acknowledgment Sheets j. Proposal Documents k. Sample Concession Agreement & Concession Policy l. Financial Pro Forma 5. Page 62. ATTACHMENT A TO REQUIRED FORM C DUE AT TIME OF PROPOSAL ACDBE Letter of Intent E_Lol.pdf ACDBE Letter of Intent E_LoI.pdf 5

6 6. Page 68. REQUIRED FORM H : PROPOSAL SURETY Each proposer shall submit to the City with its proposal, a Proposal Surety, payable to the City and County of Denver, in the amount of ten thousand dollars ($25,000), in one of the following forms: Each proposer shall submit to the City with its proposal, a Proposal Surety, payable to the City and County of Denver, in the amount of twenty five thousand dollars ($25,000), in one of the following forms: 7. Page 48. BUSINESS AND FINANCING PLAN, b. Financial Pro Forma Note: The Economic Pro Forma for this opportunity has been updated with a revision date of October 1, 2015 and can be downloaded at the following link: 6

ADDITIONS: FOOD AND BEVERAGE CONESSION REQUEST FOR PROPOSALS Concentration of ownership For the avoidance of doubt, in accordance with the DEN Concessions Policy, December 17, 2014, the Chart of

7 ADDITIONS: FOOD AND BEVERAGE CONESSION REQUEST FOR PROPOSALS Concentration of ownership For the avoidance of doubt, in accordance with the DEN Concessions Policy, December 17, 2014, the Chart of Ownership relevant to this solicitation is the chart of ownership in effect on October 8, 2015, when proposals are due AIRLINE TRAFFIC DATA In 2014 Denver International Airport had a total of 53,472,514 passengers (this includes enplaned and deplaned passengers). The graphic below shows total enplanements and deplanements by month through Consistently, January, February, April and November are DEN s slowest months while June, July and August are the busiest months. Source: Denver International Airport traffic statistics DEN has a strong market where passengers begin or end their trip in Denver, however connecting passenger make up an important piece of Denver s traffic. Connecting passengers make up approximately 40 percent of all traffic on average, while 60 percent start or end their trip at DEN. Exposure to departing passengers is a key driver of concession performance. The graphics below illustrate the distribution of passengers (O&D and connecting) by concourse for calendar year

8 Departing Passengers by Area (2014) 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - Terminal Concourse A Concourse B Concourse C Source: Denver International Airport traffic statistics Passenger Distribution by Concourse (2014) 100% 80% 44% 60% 60% 70% 75% 40% 56% 20% 40% 30% 25% 0% Total DEN Concourse A Concourse B Concourse C Connecting O&D Source: Denver International Airport traffic statistics The number of connecting passengers varies by concourse, primarily due to the dominant carriers on each concourse. Frontier Airlines operates from Concourse A, United from Concourse B, and Southwest from Concourse C; these are DEN's three largest carriers and each has a unique connecting passenger ratio that impacts traffic by concourse. On the following page is a chart of historical annual passenger totals that Denver International Airport has had from 1995 to Total passenger traffic increased over 70 percent in this timeframe since the airport opened in ,000,000 Denver International Airport Annual Passenger Traffic ,472,514 50,000,000 Passengers 45,000,000 40,000,000 35,000,000 30,000,000 Source: Denver International Airport traffic statistics 8

How to do Business with McCarran International Airport Welcome to Session 1 Introduction to the Concessions Program and Upcoming Concession

How to do Business with McCarran International Airport Welcome to Session 1 Introduction to the Concessions Program and Upcoming Concession Opportunities Introduction to McCarran s Concession Program Presented