Questions and Answers to Project Documents — Business Opportunities
PROJECT:  1-16 B Center West Snack Kiosk
NUMBER:  201952064-00

Current as of:  2/23/2020
Question Number  1:   Can you please confirm that it is acceptable to contact the DEN Commerce Hub (via in-person meetings, phone and email) during the RFP process to discuss the ACDBE and SBEC programs and related certification process?
    Answer:   Yes, it is acceptable to contact the DEN commerce Hub during this period to discuss questions directly related to certifications. However, we are not permitted to discuss any questions related to the RFPs.
Question Number  2:   Can you please confirm that it is acceptable to contact the DSBO (via in-person meetings, phone and email) during the RFP process to discuss the ACDBE and SBEC programs and related certification process?
    Answer:   The ACDBE program is owned and administered by the DEN Commerce Hub. They are also handling all SBEC applications directly related to airport concession opportunities. It is acceptable to contact the DEN Commerce Hub during this period to discuss questions related to certifications. However, we are not permitted to discuss any questions related to the RFPs.
Question Number  3:   It is our understanding that the DSBO no longer handles ACDBE certification.  Can you please confirm that our understanding is accurate and that DEN Commerce Hub is now handling all ACDBE and SBEC certifications?
    Answer:   Yes, the ACDBE program is owned and administered by the DEN Commerce Hub. They are also handling all SBEC applications that are directly related to airport concession opportunities.
Question Number  4:   What is the assigned ACDBE goal for RFP 201952064 (B Center West - Snack Kiosk)?
    Answer:   There is a 100% SBEC goal for this opportunity. There is no ACDBE goal.
Question Number  5:   Can I respond for more than one RFP or for all from the above (SBEC Opportunities)?
    Answer:   Yes, subject to DEN's Concentration of Ownership restrictions contained in the DEN Concession Policy.
Question Number  6:   If yes, should I submit separate RFP for each project or customize one RFP with RFP numbers followed by the project name?
    Answer:   You must submit separate responses for each RFP.
Question Number  7:   What is requirement for Joint venturing or subcontracting requirement with none SBE firms to work with my ACDBE/DBE/MWBE/SBE firm, S-Corp? This question is will help me to meet minimum years of experience Required.
    Answer:   Question was withdrawn by submitter.
Question Number  8:   Any differences between SBE vs SBEC certified business?
    Answer:   They are different certifications with different requirements. SBEs are small businesses that compete primarily for construction and professional design contracts. SBECs or Small Business Enterprise Concessions are small businesses providing airport concessionaire services. SBEC requirements are 1.) US Citizen or lawful permanent resident 2.) Small, for-profit business 3.) Sustained business activity in the trade or profession described in the certification application for a minimum of six (6) months prior to the date of application 4.) 3-year average gross receipts of less than $8M 5.) Personal Net Worth less than $1.32M for 51% of company ownership, excluding primary residence and value of company applying for certification.
Question Number  9:   How do we know if we are pre-registered for Pre-proposal Conference before dead line?
    Answer:   DEN will post the registration for the Mandatory Pre-Proposal list, if the attendee was not able to pre-register by November 14th a blank sign-in sheet form will be available at the door for on-site registration. DEN will also post a list of individuals that registered for the Self-Guided Site Tour, excluding the attendees that did not provide their Drivers License or Passport information at the time of registering. Attendees that did not pre-register for the self-guided tour and do not have a DEN badge will not be allowed on the self-guided tour unless the attendees are flying in the day of and are already on the Concourses. The following documents can be found at the below link under Incidentals.
Question Number  10:   Where can I pick up my temporary badge for the optional site tour visit if I pre-registered?
    Answer:   In Part A Introduction Request for Proposals (RFP) page 6, it references “Badges can be picked up at the Airport Office Building starting at 8:30 a.m., in order to gain access to locations beyond security. Event staff will be located at each in-line location to assist proposers in gaining access to the back of the house operations. Kiosk locations will be clearly marked. Event staff is not there to answer questions, please take this time to formulate and write down your questions to be presented at the Pre-Proposal Conference. Please note any answers to questions not in writing and posted to the website are considered unofficial and have no merit".
Question Number  11:   Can the city confirm that the page limits that were changed in the Phase 1 Q&A with regard to the 2 pages allotted for menus (not counted against the page limit) and the subgle 11x17 floor plan allowed in the Phase 1 submission are also changes that apply to the current proposal documents?
    Answer:   Please see the page limits and page sizes detailed in Part D, Section III-2 of the RFP document for details.
Question Number  12:   Will the airport consider making these SBEC opportunities 7 year terms in line with the other standard DEN Snack/Coffee/Quick-Serve contracts? Each of these opportunities will still require a substantial investment and it’s very hard to justify for a 5 year contract.
    Answer:   These opportunities have a 5 year term following DEN's Concession Policy for kiosks.
Question Number  13:   We are interested in submitting our qualifications for the 12 RFPs for DEN Concessions Program. Do we need to send you a proposal for each of the 12 projects?
    Answer:   Yes, if a proposer intends to submit on all 12 RFPS they will be required to submit individual proposals for each of the 12 RFPs.
Question Number  14:   Can you please confirm all the available utilities for each location, (i.e. plumbing, wastewater, grease, electric, data, etc.) and if the airport or concessionaire is responsible for bringing such utilities to each location? Regarding utilities, are there any capacity limitations that proposers should consider?
    Answer:   Base building drawings will be made available to the successful proposer. Power, water, and sewer connections are all anticipated to be within 100' of the project location, though this will need to be confirmed by the successful proposer's design team. The successful proposer is responsible for extending all utilities to the space. The DEN Design Standards Manuals (DSMs) are available on the DEN website. These DSMs will identify allowable utility usage.
Question Number  15:   What is the current rent for a comparable kiosk/space at DIA?
    Answer:   Recent coffee kiosks had rents ranging from 16% to 18% of gross annual receipts.
Question Number  16:   How much is the onsite storage per square foot?
    Answer:   As listed in the Key Business Terms, storage space cost is currently $12.00 per square foot per year, is not included in the Privilege Fee, and is subject to change.
Question Number  17:   How much insurance do you or your delivery company need to carry to make deliveries to the airport?
    Answer:   Business Automobile Liability insurance coverage in the amount of $1,000,000 is required for all owned, non-owned, and hired vehicles assigned to or used in the performance of any commercial operations at DEN. If any such vehicle will require unescorted airside access, $10,000,000 in liability coverage is required.
Question Number  18:   Is there a detailed list of items that is allowed that will not require a vent? Without naming my product, if I contact the City of Denver fire marshal, will they be able to direct me if my product needs a vent? Is there a rule of thumb of what type of snacks would or would not need a vent?
    Answer:   Any operation that generates grease, steam, or odors that migrate beyond the footprint of the space would require venting. DEN cannot speak for what DFD will allow, or what direction/information they may provide.
Question Number  19:   Can deliveries be made at anytime or are there specific times that they need to be made? Is there 24 hour access to the airport for owners?
    Answer:   Deliveries can be made at any time as long as they follow DEN Security policies, which are subject to change. Delivieries are not possible during low visibility operations , snow, and de-icing when service roads are closed.
Question Number  20:   Can I incorporate a vending machine into the design of kiosk, e.g. in the queuing area?
    Answer:   Concessionaires may not install vending machines in any part of their Premises.
Question Number  21:   Are dishwashers allowed in the kiosk?
    Answer:   Ventless dishwashers are allowed.
Question Number  22:   During the site visit, we were told the location’s square footage and positioning might change. Can you confirm that this accurate? If so, what is the new square footage and positioning?
    Answer:   A revised Exhibit A is included with Addenda 1.
Question Number  23:   Will the shoeshine stand continue to operate in its current location once the Snack Kiosk is operational?
    Answer:   The shoeshine stand will continue to operate, but the exact location may change.
Question Number  24:   Does the airport have a preference on the directional flow of the queuing line, i.e. towards the center core, gates, restrooms, etc.?
    Answer:   Queue should be configured to minimize impact to traffic.
Question Number  25:   Is the airport requiring SBEC firms to bringing all plumbing, including grease lines, to the location, or is the airport doing this for small businesses?
    Answer:   The selected proposer is responsible for all construction, including extending utilities to the premises.
Question Number  26:   Is there an offsite, concourse location available for storing the hot water tank?
    Answer:   These concession opportunities are not currently paired with remote storage space. Storage space can be made available, though it will require buildout by the successful proposer, and may not be close enough for a remote water heater.
Question Number  27:   Is the airport requiring SBEC firms to construct life-safety (sprinklers, etc.) for this location, or is the airport doing this for small businesses?
    Answer:   The selected proposer is responsible for all construction of the premises, including life-safety systems.
Question Number  28:   Is offsite wet and dry storage available for this location?
    Answer:   Storage is available under a separate lease to the successful proposer. As listed in the Key Business Terms, storage space cost is currently $12.00 per square foot per year, is not included in the Privilege Fee, and is subject to change. The specific location of the storage is not available at this time.
Question Number  29:   Will the operating hours mirror the current RMU program? If not, what are the operating hours for this location?
    Answer:   Required opening hours are specified in the Key Business Terms section of the document and will change over time as flight schedules change. Current scheduled first/last flights can be found in the Concourse Profiles in Part B of the RFP.
Question Number  30:   Why are smoothies restricted?
    Answer:   There is a nearby concessionaire already providing smoothies. DEN believes it is best for this opportunity to focus on other menu items.
Question Number  31:   During the pre-proposal meeting it was stated that this location has an attractive return on investment for small businesses. What is the airport anticipating it will cost to construct this space?
    Answer:   The Anticipated Minimum Capital Investment for this location is $750 per square foot, as defined in the Key Business Terms.
Question Number  32:   Can you use a self-branded location that isn’t on the streets?
    Answer:   There are no specific brand requirements in this Request for Proposal.
Question Number  33:   Also, the concept we are looking into uses a hoodless oven, I know that the RFP states no ovens but what if a hood is not needed?
    Answer:   The design and construction needs to comply with code, Design Standards Manuals (DSMs), and the DEN Standard Performance specifications. No activities may be performed that emit steam, heat, odors, smoke, etc. from the space.
Question Number  34:   Will the airport consider extending the deadline for the proposals?
    Answer:   No, proposals are due by 2:00 p.m. January 22, 2020.
Question Number  35:   Regarding the surety in the proforma, is that line item the cost to maintain the MAG surety for the term of the agreement?
    Answer:   Correct, this should be the estimated cost to maintain the MAG surety as required under the agreement.
Question Number  36:   Regarding the proforma, can you explain what “paper & packaging/menu” includes?
    Answer:   "Paper and packaging" refers to the cost for shipping any sold merchandise to customers. The "menu" category would be the cost of producing menus.
Question Number  37:   Regarding the proforma, why is “airport employee discount and promo” consider an operating cost? Our POS accounts for these types of discounts in the sales portion of the proforma.
    Answer:   Correct, this type of cost relates to Cost of Goods Sold. Currently it is shown on Other Operating Costs for this report to show the estimated cost.
Question Number  38:   Regarding the proforma, can depreciation extend beyond the term of the Concession Agreement?
    Answer:   No.
Question Number  39:   How are property taxes assessed? Where can proposers find property tax information?
    Answer:   Taxes are assessed based upon the actual value of property. The actual value of the property is calculated by using one of three different approaches (market, income and cost approach). Once the actual value is determined it is then multiplied by the assessment rate to derive the assessed value. The assessed value is then multiplied by the mill levy to arrive at the property tax due amount. Property tax information can be found via the following website link:
Question Number  40:   Should the “personal financial statement” follow the same methodology as the ACDBE program? For example, are proposers to include primary residence in the personal financial statement?
    Answer:   No. As required under Attachment 1, Part 10 Disclosure of Legal and Administrative Proceedings and Financial Condition, if the proposer is an individual, the following documents must be submitted: Federal income tax returns for the past three (3) years, a personal financial statement, and a Bank Reference.
Question Number  41:   What is the current cost of employee parking passes?
    Answer:   Employee parking passes are $36 per month.
Question Number  42:   "Questions based off of Addendum No.1: Is the Bank Reference Letter separate from the Funding Source Letter? From the response in Addendum, it seems each partner needs to provide a bank reference letter. Ideally, each partner would provide a Funding Source letter. However, if the Prime submitted a funding letter supporting all of Capital Investment, that would meet the threshold for compliance?"
    Answer:   The Bank Reference Letter is the same as the Funding Source Letter. Although submission of a single Funding Source Letter by the Prime or another individual partner would suffice for the proposal process, federal regulations and contract requirements governing ACDBE participation would require each partner in the JV to contribute capital and provide proof thereof. Please see the Federal Aviation Administration's ACDBE Joint Venture Guidance at:
Question Number  43:   Can you please define “smoothie”?
    Answer:   DEN has no standard definition for "smoothie" but would generally expect it to be a blended drink containing fruit and/or vegetables or similar offering. However, this description should not limit proposer's proposals.
Question Number  44:   If an already certified ACDBE company and company that is currently in the process of becoming certified come together in the form of a joint venture to bid on an RFP, do they need to form a new entity, or can they use both company names to propose?
    Answer:   Because joint ventures among different companies are not certified as ACDBEs, both company names would be used for the proposal. Please note that all companies responding to this opportunity must be SBEC-certified.
Question Number  45:   When completing the required forms, are the forms completed by each company in the JV or does the JV complete the forms?
    Answer:   Please reference Part D RFP Details, IV. Attachment 1, Proposal Forms and Addendum No.1 for clarification on Part 8 Funding Source Letters.