Questions and Answers to Project Documents — Business Opportunities
PROJECT:  1-22 C East Sub Core 1 Quick Serve Restaurant
NUMBER:  201952037-00

Current as of:  2/23/2020
 
Question Number  1:   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  2:   How can I confirm if I am pre-registered for the Mandatory Pre-Proposal and the optional Self-Guided tour?
    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. Http://business.flydenver.com/bizops/proprfp.asp
Question Number  3:   Is it permitted for this location to have a bar with either a full (distilled) or limited (fermented) alcohol offering?
    Answer:   Alcohol sales are permitted at this location, provided that they can be consumed within the premises only. Proposers must ensure that their operation, queuing, and seating all fit within the premises.
Question Number  4:   Is it permitted for this location to offer bottled/canned beer, bottled/canned wine, and bottled/canned cocktails?
    Answer:   Alcohol sales are permitted at this location, provided that they can be consumed within the premises only. Proposers must ensure that their operation, queuing, and seating all fit within the premises.
Question Number  5:   We build with durable/high-quality materials and maintain our spaces well. Would we be expected to make a significant reinvestment 3.5 years after our initial capital investment? Please elaborate on how the airport approaches refurbishment investments and timing of work.
    Answer:   DEN expects spaces to consistently be maintained in a First Class manner, and the mid-term refurbishment is intended to address those larger issues not done through regular maintenance. For the purposes of this procurement, plan on 15% of actual spend in the pro forma in year 3. DEN will work with the successful proposer to review the mid-term refurbishment amount and schedule prior to contract execution.
Question Number  6:   Will POC drawings and Concession Design Guidelines, similar to what was released for the September gate extension location RFPs, also be provided for this location?
    Answer:   No, DEN does not expect to release any additional design guidelines or documents for this location.
Question Number  7:   What are the airport’s plans for the locations around this QSR location? When does Woody Creek expire and will that location remain an F&B space? When is the coffee kiosk expected to open and what type of food will the kiosk be allowed to serve?
    Answer:   As noted in the Scope of Work Document, this space will not be available for buildout until late 2021, which is after the coffee kiosk is expected to be completed. Coffee kiosks are limited to small food items like baked goods, pre-packaged prepared foods, and snack items. DEN expects the Woody Creek location to remain an F&B space.
Question Number  8:   Why is this QSR lease only 7 years? What are the airport’s plans for the space following its expiration?
    Answer:   DEN's typical term for Quick Serve Restuarants is 7 years.
Question Number  9:   There are certain costs to all parties to establish a JV entity and subsequently file taxes. Considering many of the JVs proposing may not even be awarded, the parties (including ACDBE’s) will incur these formation costs and then have to subsequently dissolve the entity. We request that it be allowed to propose with a slated JV to be formed upon award, with the requirement that each partner’s currently formed entity is in good standing.
    Answer:   Joint Venture Agreement, Operating Agreement or other formation/controlling documents must be signed and effective at time of submission.
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:   Would the airport consider expanding the size of the renderings to 11X17, in addition to the floor plan.
    Answer:   No, all pages other than the floorplan must be sized for 8.5" x 11".
Question Number  13:   10 pages is a tight fit to introduce a brand, demonstrate its appeal to the DEN traveler and answer the specific questions in the RFP. Would you consider opening it up to a max of 12 pages?
    Answer:   DEN will not be adjusting the page limits.
Question Number  14:   If the proposer meets the ACDBE requirement through a JV, do they need to submit the form on page 15 of the proposal forms? (the form does not have a title, but asks for the name of the concession/vendor firms and the goods they will provide). If the answer is yes, how would the airport describe how they would like the respondent to describe the goods and services and calculate the value of the ACDBE’s contribution?
    Answer:   Yes, the proposer must complete and submit page 15. Please note that the ACDBE forms have been revised and addressed in Addendum 1. In the section asking for the “Description of Goods and Services or work to be performed by ACDBE firm,” the ACDBE's roles and responsibilities in the JV should be outlined. Responses to the section requesting the "estimated dollar value" of the "goods and services or work described above" should reflect the ACDBE's partnership equity in the JV.
Question Number  15:   Can DEN provide food court charge, cam charge, storage room charges?
    Answer:   There are no food court or common maintenance service fees for this location. 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  16:   Can we provide fast food with bar?
    Answer:   Please see the answer to questions 3 and 4. Alcohol sales are permitted at this location, provided that they can be consumed within the premises only. Proposers must ensure that their operation, queuing, and seating all fit within the premises.
Question Number  17:   Is venting possible in this location?
    Answer:   Yes.
Question Number  18:   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  19:   Does this space already tie to a grease trap?
    Answer:   No.
Question Number  20:   Can this location sell alcohol?
    Answer:   Please see the answer to questions 3 and 4. Alcohol sales are permitted at this location, provided that they can be consumed within the premises only. Proposers must ensure that their operation, queuing, and seating all fit within the premises.
Question Number  21:   Can this location have seating?
    Answer:   Yes, the premises may incorporate seating.
Question Number  22:   Will the airport consider dual branding in this location?
    Answer:   DEN is looking for a single quick serve restaurant concept. Proposers may propose any branding they wish.
Question Number  23:   When does Woody Creek expire?
    Answer:   The contract is currently expired. DEN expects the Woody Creek location to remain an F&B space.
Question Number  24:   What concepts are going into the concourse expansion area?
    Answer:   DEN is currently evaluating Proposals for these areas and has not selected the concepts for the concourse expansion areas.
Question Number  25:   Can a hood be installed?
    Answer:   Yes.
Question Number  26:   Will the airport allow a high-volume QSR concept that is open 6 days per week for this opportunity?
    Answer:   DEN will allow a 6 day per week QSR to be proposed for this opportunity.
Question Number  27:   Can the airport clarify the last day for questions? Is it 12/13 or 12/19?
    Answer:   As clarified in Addendum No. 1, written questions were due by 2:00 p.m. Denver Time on December 19, 2019.
Question Number  28:   What will be construction cost per sqft?
    Answer:   The Anticipated Minimum Capital Investment for this location is $550 per square foot, as defined in the Key Business Terms.
Question Number  29:   "Funding Source Letter - Would you please confirm…do you wish to have both a letter to confirm the bank is willing to extend debt and a letter to confirm cash on hand to invest as equity? Or just the former? "
    Answer:   Funding Source Letters must confirm both the extension of debt and cash on hand to invest as equity.
Question Number  30:   Does the proposer’s Certificate of Insurance need to be included in the submission, or is submission by email to prior to the submission deadline sufficient?”
    Answer:   Insurance certificates are just a reference for the set insurance requirements that the awarded proposer must ultimately obtain. Insurance certificates are not required at the time of proposal submission.
Question Number  31:   What is the credit line you are looking for and limit?
    Answer:   "Per the Minimum Requirements: Financial Capability: Proposing entities must demonstrate the proposer’s ability to fund the capital investment and undertake the obligations and operation in this opportunity. Proposers' capital funding source(s) must be greater than their proposed Capital Investment as submitted on Capital Investments and Finding Form. "
Question Number  32:   Can I bid as full dining restaurant?
    Answer:   Proposals must follow the Concept Description provided in the Request for Proposal, which calls for a quick service restaurant.
Question Number  33:   If I’m working on two projects do I need a line of credit for one, or two different line of credits. Do you have a preferred bank for the line of credit?
    Answer:   A separate loan or line of credit should be obtained for each proposal submitted. There is no preferred financial institution list.
Question Number  34:   Can I bid as casual dining with full-service bar?
    Answer:   Proposals must follow the Concept Description provided in the Request for Proposal, which calls for a quick service restaurant. Alcohol sales are permitted, as answered in questions 3, 4, 16, and 20.
Question Number  35:   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  36:   Would it be possible to get either CAD Drawings or higher resolution PDFs of the spaces. The Appendix A pdf is low resolution and challenging to work with.
    Answer:   No, base building drawings will be made available to the successful proposer.
Question Number  37:   What is the current rent for a comparable at DEN?
    Answer:   Recent QSR contracts had percentage fee rents of 16% and 17%.
Question Number  38:   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  39:   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  40:   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  41:   Regarding the proforma, can depreciation extend beyond the term of the Concession Agreement?
    Answer:   No.
Question Number  42:   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: https://www.denvergov.org/content/denvergov/en/denver-department-of-finance/our-divisions/assessor.html
Question Number  43:   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  44:   What is the current cost of employee parking passes?
    Answer:   Employee parking passes are $36 per month.
Question Number  45:   On Page 5 of Attachment 1, Part 2 Proposer Information Form, item 9. Brand Portfolio Affidavit addresses “the right to operate and sell specialty merchandise and/or goods and/or services”. The second paragraph addresses “privileges to operate particular brands”. Please clarify if you’d like proposers to disclose exclusive relationships to sell goods and/or services, or is the intent here to disclose all exclusive arrangements to license and operate particular restaurant brands, or both? Or ?? Please elaborate.
    Answer:   Proposers should disclose both relationships to sell goods and/or services AND arrangements to license and/or operate brands.
Question Number  46:   It has been confirmed that venting for a hood is possible for this location. Please confirm if a type 1 hood is allowed and can DEN identify the route the exhaust is extracted out the space? Will the exterior penetration point be located on the roof? Please confirm who will be responsible for this expense.
    Answer:   A type 1 hood is acceptable, provided it can be installed per applicable codes and DEN Design Standards Manual requirements. The proposer's design team will need to determine the route of the exhaust duct. The entire mezzanine is occupied, thus it is unlikely there will be an acceptable duct route to the roof. The successful proposer is responsible for the complete design and buildout, and all associated costs.
Question Number  47:   Can DEN identify the point of connection for all utilities including grease trap and natural gas?
    Answer:   Utility tie-in points are anticipated to be within 100' of the space. DEN will work with the successful proposer's design team to identify exact tie-in locations.
Question Number  48:   What is located directly beneath the space?
    Answer:   Beneath this space is a vehicle drive lane, with a lay-in ceiling. The successful proposer shall field verify the site conditions.
Question Number  49:   Are there any design and constructability constraints that the future tenant should be aware of? Example, shortage of power on the concourse.
    Answer:   Not that DEN is aware of. The successful proposer shall field verify the site conditions.
Question Number  50:   Would we be able to submit one proposal with a proposed concept, as well as an alternate concept for the same space?
    Answer:   Proposers are limited to one concept per proposal. However, proposers may submit multiple proposals if they wish.
Question Number  51:   "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: https://www.faa.gov/about/office_org/headquarters_offices/acr/bus_ent_program/media/jvguidefinal508.pdf.
Question Number  52:   Can you please provide me where I can find the Pro Forma?
    Answer:   The link for the Pro Forma can be found under Part D RFP Details, V. Attachment 1, Proposal Forms, Part 9 : http://business.flydenver.com/bizops/documents/proForma_2.xlsx
Question Number  53:   Do we need a security deposit on lease?
    Answer:   Per the Sample Agreement and Concessions Handbook, DEN requires a Surety for Performance for the full term of the Agreement. Please review the Agreement (especially section XVI) and the Handbook (especially section 12.04) for details regarding the Surety.
Question Number  54:   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:   We do not certify Joint Ventures. Each company would use their individual certifications to count toward their participation goal.
Question Number  55:   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.
Question Number  56:   If available, please provide any Architectural, Mechanical and Electrical drawings of existing facilities. Receiving these will allow us to better understand existing conditions and infrastructure and develop our capital investment figures and designs accordingly.
    Answer:   Base building drawings will be provided to the successful proposer.
Question Number  57:   Is the airport planning any changes to the airport interior architecture? If so, please share those plans and vision.
    Answer:   No significant changes are anticipated.
Question Number  58:   What are the existing services and utilities to the space? If these are currently being offering, please advise if they can be upgraded and provide a utility and services matrix, if available.
    Answer:   The space will be designed and built by the successful proposer's team. Utilities can be upgraded as allowed by the DEN Design Standards Manuals (DSMs). All DSMs can be found in the Business Requirements- Buisness Services/ Airport Guidelines & Policies section of the flydenver.com site. http://business.flydenver.com/bizops/bizRequirements.asp
Question Number  59:   What is the existing ventilation capacity in the space and what are the requirements for tempered make up air, both contributed Terminal and outside air.
    Answer:   Please review the DEN Mechanical Design Standards Manual for capacities and requirements. All DSMs can be found in the Business Requirements- Buisness Services/ Airport Guidelines & Policies section of the flydenver.com site. http://business.flydenver.com/bizops/bizRequirements.asp
Question Number  60:   Are the existing security gates to be removed and replaced with the typical sliding glass details? If applicable.
    Answer:   All existing construction will be removed by the successful proposer. All designs will be submitted to the DEN Design Review Committee (DRC) for review and approval.
Question Number  61:   Are there new design specifications and proposed renderings for this space? If available, please provide.
    Answer:   No, none are available.
Question Number  62:   In a previous RFP, additional space was available for development of a kitchen and/or storage space. Will separate back-of-house areas be available for similar use for this space? If so, please provide details.
    Answer:   There is no additional space included with this procurement. However, off-site storage or prep space may be available for lease separately.