Greenville-Spartanburg I nternational Airport RFP Pre-Proposal - - PowerPoint PPT Presentation

Greenville-Spartanburg I nternational Airport

August 17, 2020 RFP Pre-Proposal Conference – Food & Beverage Concessions Management & Operating Services

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I ntroductions

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Commercial Business Department

Scott C. Carr, A.A.E. VP – Commercial Business & Communications scarr@gspairport.com 864-848-6222 Carlos Ruiz, A.A.E. Director – Commercial Business cruiz@gspairport.com 868-848-6208

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Region Overview

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Upstate South Carolina

Population

• 10 County region: 1,499,762 (2019)
• State of South Carolina: 5,148,714 (2019)
• Key Cities within 100 miles: Asheville, Atlanta,

Charlotte, Columbia, & Knoxville

• Total households: 588,046 (2019)
• Total families: 1,201,575 (2019)

3-County MSA

• Average Household I ncome: $50,296 (2019)

Source: Upstate SC Alliance

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Why GSP and the Upstate?

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• Superior I nfrastructure: One of the nation’s

most productive workforces

• I nternational Hub: The North American

location of choice for global companies

• Diverse Economy: World-wide recognition as

a center for advanced manufacturing

• I nstitutions of Higher Learning - A Driving

Force: Top-ranked training programs for business and industry

• World-Class Quality of Life
• Outdoor Adventures for every taste

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More than 245 Headquarters in the Upstate

(Global, North American, National, & Regional)

Upstate Headquarter Facilities

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Companies are Moving to Upstate SC

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Company Announcements 2015-2020

Nearly 400 companies have announced relocations or expansions in the Upstate SC since 2015 resulting in 27,300 new jobs and $7.9 billion dollars of investment.

Source: Upstate SC Alliance

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People are Moving to the Region Too!

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New residents are flocking to the Upstate region to fill jobs created by companies that have announced relocations or expansions

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Greenville-Spartanburg Airport District Overview

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Airport District – Governance

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• The Airport District is governed by a six

member Commission with three members appointed by the legislative delegation of Greenville County and, three members appointed by the legislative delegation of Spartanburg County, all confirmed by the Governor.

• The Airport Commission is a policy board

with six meetings per year.

• The Airport District receives no local tax

dollars and is fully self-sustaining financially.

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Airport District – Governance

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• The Airport Commission employs an

President/ CEO who is responsible for the administration and management

• f the District/ Airport and over 220

full-time staff.

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Greenville-Spartanburg I nternational Airport Overview

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Airport Capabilities

• 13 Gates.
• 11,001 Foot Runway.
• Located on busy I -85 corridor between Atlanta &

Charlotte.

• Per-Turn Gate & Ticket Counters.
• Common Use Technology.
• Airport-operated fueling & ground handling staff.
• FI S Facility with US CBP on-site.
• Centralized TSA Checkpoint.

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13 Passenger Boarding Gates

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Airport Renovation - Project Wingspan

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• Total Project Cost:

$127 Million

• Funding Sources:
• $30 Million in Grants (FAA, TSA,
• ther)
• $97 Million Self-Funded by the

Airport Commission through cash reserves

• Project Completed with No Long-Term

Debt or Passenger Facility Charges.

• The Airport District receives no local

tax dollars and is fully self-sustaining financially.

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Airport Renovation - Project Wingspan

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Airport Renovation - Project Wingspan

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Concessions Enhancements

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Food, Beverage, & Retail Concessions Program

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Concessions Enhancements

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MAG Escape Lounge – Opened October 2018

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Concessions Enhancements

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MAG Escape Lounge – Opened October 2018

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Flight Line – Golden Session Pale Ale (GSPA)

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Concessions Enhancements

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Vino Volo MarketBar – Opened December 2019

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Concessions Enhancements

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Airport Revenue News – 2018 Best Concessions Program Design Winner! Other Nominees:

• Calgary International Airport
• Edmonton International Airport
• Louisville International Airport
• Portland International Airport

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Concessions Enhancements

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Airport Revenue News – 2019 Best Overall Concessions Program Winner! Other Nominees:

• Austin International Airport
• Dallas – Love Field
• Pittsburgh International Airport
• Raleigh-Durham International Airport

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Airport Passenger Traffic Overview

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GSP Has Nonstop Service to 19 Destinations

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Airline Market Share

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GSP Load Factors Average Over 80% - PreCovid

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80% Load Factor

87% 86% 86% 84% 84% 83% 83% 83% 83% 81% 81% 79% 78% 77% 75% 75% 73% 72% 72% 72% 67%

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Total Passenger Traffic

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Top 15 Domestic Cities

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Top 15 I nternational Cities

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Passenger Traffic at GSP 2020 vs 2019

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50,000 100,000 150,000 200,000 250,000 300,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 Total Passengers

Passenger traffic was

• n track to

exceed the record set in 2019 until March 11, 2020.

6.6% 8.7%

• 42.0%
• 88.4%
• 95.8%
• 78.4%

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Recovery is Not Consistent Across the Country

31.3% GSP

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100,000 300,000 500,000 700,000 900,000 1,100,000 1,300,000 1,500,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Note: Fiscal Year - July through June

Activity at GSP May Not Return to 2019 Levels until 2024

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FBO & Cargo Operations Overview

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FBO – Cerulean Aviation

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Started FBO Operations – January 1, 2017

• New Fuel Farm – 150,000 Gallon Jet

A Capacity

• Total Fuel Sales Up to Nearly 20

Million Gallons in 2019

• Construction of Over Nearly 50,000

Square Feet of New Hangar Space

• Master Plan for Construction of

Additional New Hangars Completed

• Renovation of Existing Hangar

Facilities Underway

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FBO – Cerulean Aviation

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I n-House Cargo Services

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• GSP’s Ability to efficiently handle cargo is resulting

in more routes to more places.

• Scheduled 747-400 Freighter Service to/ from

Frankfurt, Germany (HHN) is now offered 5-7 times weekly.

• I n CY 2019, cargo volume grew by 94% vs. 2014
• GSP has experience

handling unique freight shipments including the world’s largest equine airlift for the 2018 World Equestrian Games held in nearby Tryon, NC.

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Air Cargo Operations

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Existing Facility – 110,000 SF Warehouse

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New Cargo Facilities:

• Three B-747-800

Apron Parking Positions

• 10 Loading Docks

Available.

• 17-acre Cargo

Apron

• Opened on

September 9, 2019

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Air Cargo Activity

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RFP – Food & Beverage Concession Management & Operating Services Summary

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RFP Timeline

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Advertisement Date: August 3, 2020 Pre-Proposal Conference: August 17, 2020 at 1:30 p.m. Deadline for Questions: August 21, 2020 at 1:00 p.m. Question Responses: August 24, 2020 at 1:00 p.m.

Due Date & Time for Proposals: September 2, 2020 at 3:00 p.m.

Onsite Interviews: September 17 & 18, 2020 Airport Commission Meeting - Approval of Proposal Rankings September 28, 2020

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RFP Objective

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• Objective: Highly Qualified Company to Manage and Operate Five Concepts at

GSP in a first-class manner and best in class experience for GSP customers.

• Concepts:

* DC-3 Hot Dogs will be replaced for another QSR Concept

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Other Food & Beverage Concepts By Operator

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• Hudson Group:
• Paradies Lagardere:
• MAG USA:

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Agreement Term & Company Compensation

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• Agreement Term:

– I nitial Five (5) Year Term with a Five (5) Year Option. – Agreement Start Date: October 12, 2020 with Grand Hall Restaurants Opening No Later than December 1,

• 2020. One Exception is the Former DC3 Hot Dog Replacement Concept. Two Concourse Restaurants to Open

when Passenger Traffic Reaches 75% of Historical Levels (e.g. 2021).

• Company Compensation:

– Management Fee – Percentage of Gross Revenues (Proposal Form – Annual Percentage Fee by Agreement Year)

• Company's Cost in Assisting the District with Design & Construction Services.
• Company's General & Administrative Overhead.
• All Salaries & Other Compensation of Company, Company's Affiliates, and Company's Employees Above

the Onsite General Manager.

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Company Compensation

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• Company Compensation:

– Management Fee – Percentage of Gross Revenues

• Payroll Processing Fees.
• Company's Telephone, Mail, & Messenger Fees (Expect those that are a part of normal business).
• All Other Operating Expenses Except Those I dentified as Operating Expenses.

– I ncentive Fee – Percentage of Net I ncome (Proposal Form – Annual Percentage Fee Covering All 10 Years) – Net I ncome

• All Revenue Received From Food, Beverage, and Merchandise Sales Not I ncluding Staff Gratuities

LESS: – Amortization of any District Capital I nvestments (e.g. Replacement for the DC3 Hot Dog Concept) – Management Fee – Operating Expenses

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Operating Expenses

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• Operating Expenses:
• Employee Payroll
• Employee Benefits as Approved by the District
• Employee Recruiting & Training
• Food, I ngredients, Beverages, & Liquor
• Paper & Kitchen Supplies
• Replacement Dishes, Flatware, Glasses, etc.
• Kitchen Equipment Purchase & Maintenance
• Upgrades & Maintenance for the POS System
• Cleaning Supplies
• Employee Uniforms

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Operating Expenses

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• Operating Expenses:
• Telephone Service as Approved by the District
• I nternet & Cable TV Services for the Restaurants
• Utilities (FY 2020-21 – $0.40 PSF for Electric & Water. Natural Gas Billed Directly)
• Centralized Receiving & Distribution Facility Fees (FY 2020-21 – $42,197.61 Annual or $3,516.47 Month)
• Licenses & Permits Not Directly Purchased or Held by the District

– Chick-Fil-A License Agreement to be Held by Operator with All Others Held by the District » Any Franchise/ Royalty Fees – Alcohol Licenses to be Held by the Operator (District is still evaluating if it can have a concourse wide permit to allow consumption at the gates) – Armored Car & Other Cash Handling Expenses for the Restaurants – Other Costs & Expenses I ncurred with Respect to the Operation of the Restaurants

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Concept & CRDF Locations

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SOUTH CARGO BUILDING CRDF – BRADFORD AIRPORT LOGISTICS (NOTE: All Deliveries Go Through This Facility)

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Commissary/ Storage Locations & CRDF Services

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• Two Conditioned

Commissary/ Storage Locations Under Both Concourse A & B

• Bradford Airport Logistics Delivers

All Products to These Locations & Picks Up Any Outbound Materials (Covered Operating Expense)

• Bradford Removes All Used

Cooking Oil/ Grease at Each Restaurant Location Upon Request (Covered Operating Expenses)

• Three Walk-I n Coolers & Freezers

in Each Storage Location

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Gross Sales – Total for All Five Concepts

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$3,256,738.64 $4,500,348.00 $5,084,495.71 $935,251.00 $- $1,000,000.00 $2,000,000.00 $3,000,000.00 $4,000,000.00 $5,000,000.00 $6,000,000.00 2017 2018 2019 2020

F&B TOTAL GROSS SALES

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Gross Sales – Chick-fil-A

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$739,049.53 $1,194,393.18 $1,509,676.67 $309,690.36 $- $200,000.00 $400,000.00 $600,000.00 $800,000.00 $1,000,000.00 $1,200,000.00 $1,400,000.00 $1,600,000.00 2017 2018 2019 2020

CHICK-FIL-A TOTAL GROSS SALES

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Gross Sales – Former DC-3 Hot Dogs

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$65,340.39 $122,889.66 $114,479.36 $20,104.95 $- $20,000.00 $40,000.00 $60,000.00 $80,000.00 $100,000.00 $120,000.00 $140,000.00 2017 2018 2019 2020

DC-3 TOTAL GROSS SALES

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Gross Sales – RJ Rockers Flight Room

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$716,029.12 $466,476.15 $479,316.54 $86,856.85 $- $100,000.00 $200,000.00 $300,000.00 $400,000.00 $500,000.00 $600,000.00 $700,000.00 $800,000.00 2017 2018 2019 2020

RJ ROCKERS TOTAL GROSS SALES

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Gross Sales – Thomas Creek Grill

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$1,218,714.22 $717,693.70 $739,433.12 $127,621.50 $- $200,000.00 $400,000.00 $600,000.00 $800,000.00 $1,000,000.00 $1,200,000.00 $1,400,000.00 2017 2018 2019 2020

THOMAS CREEK TOTAL GROSS SALES

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Gross Sales – The Kitchen by Wolfgang Puck

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$517,605.38 $1,998,895.31 $2,241,590.02 $390,977.34 $- $500,000.00 $1,000,000.00 $1,500,000.00 $2,000,000.00 $2,500,000.00 2017 2018 2019 2020

WOLFGANG PUCK TOTAL GROSS SALES

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Request For Proposal (RFP)

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• 3.1.1 Submission of Proposals
• Sealed Proposals due on September 2, 2020 at 3:00 PM
• Airport Administrative Offices – 2000 GSP Drive, Suite 1, Greer, SC 29651
• Envelope must be marked in the lower left-hand corner as:

“PROPOSAL FOR FOOD & BEVERAGE CONSCESSI ONS MANAGEMENT”

• I nterviews will be held on September 17 and/ or 18, 2020
• 3.1.2 Basis for Award
• Complete and responsive proposal
• Most capable of managing and operating the concepts in a first-class manner
• Best overall benefit to the District

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Request For Proposal (RFP)

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• 3.1.3 Proposal Evaluation Criteria
• Company Background, Experience, and Financial I nformation
• Financial Proposal
• Ability to Maintain All Existing Concept Brands
• Proposed QSR Replacement Concept for DC-3 Hot Dogs
• Management, Organizational, Operations, Quality Control, Training Program, and

Transition Plans

• ACDBE Participation (Overall Goal: 26.7% )
• Exceptions to the RFP and Agreement

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Request For Proposal (RFP)

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• 3.1.4 Disqualification of Proposal
• A proposal is found to be non-responsive to any requirements of this RFP;
• Proposer is found to be not responsible during the evaluation process;
• Past evidence of an unsatisfactory record of integrity and business ethics while working
• n other contracts;
• Past evidence of an unsatisfactory record of maintaining brand standards outlined in

franchisee agreements;

• I f the Proposer is found to be debarred from participating on any public, local, state, or

federal contracts for similar services;

• Existence of unresolved claims, arrearage, or default resulting from participating on any

public, local, state, or federal contracts for similar services.

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Request For Proposal (RFP)

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• 3.1.5 I ncomplete Proposal
• Any proposal that is not prepared and submitted in accordance with the RFP

requirements.

• Any proposal that has any alterations, omission, addition, or any unauthorized

conditions, or provisions attached to the proposal may cause it to be incomplete.

• Any proposal that has any missing required documentation.
• 3.1.6 Proposal Security
• Each Proposal shall be accompanied with $10,000 in cash or cashier’s check or certified

check on a bank or trust company insured by FDI C and payable to the GREENVI LLE- SPARTANBURG AI RPORT DI STRI CT.

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Request For Proposal (RFP)

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• 3.1.7 Withdrawal of Proposal
• Proposer may withdraw its proposal prior to September 2, 2020 at 3:00 PM.
• Request to withdraw after opening requires a written evidence within 24 hours that a

clerical or mathematical mistake occurred in the Proposal.

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Proposal I nstructions and Requirements

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• 4.0 Proposal I nstructions
• Proposal limited to forty (40) pages, single sided, excluding transmittal letter, cover

page, table of contents, and required forms

• Six (6) hard copies – mailed or hand delivered
• One (1) electronic copy in PDF format sent to POC – Scott C. Carr via email
• Proposer may withdraw its proposal prior to September 2, 2020 at 3:00 PM.

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Proposal I nstructions and Requirements

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• 4.1 Proposal Submittal Requirements
• Transmittal Letter
• Management & Organizational Plan
• Operations & Quality Control Plan
• Transition Plan
• Training Program
• ACDBE Participation – Exhibit E (Overall Goal: 26.7% )
• Proposal Security – $10,000
• Exceptions – Form 5

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Proposal I nstructions and Requirements

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• 4.1 Proposal Submittal Requirements
• Forms to be Completed and I ncluded:
• Completed Eligibility Form – Form 1
• Proposal Form Completed and Signed – Form 2
• Completed Proposer’s Affidavit of Non-Collusion – Form 3
• Completed Certification Regarding Debarment, Suspension, I neligibility, and

Voluntary Exclusion Form – Form 4

• Completed Exceptions to the RFP Form – Form 5
• Completed Financial Proforma Form – Form 6

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Q&A and Facility Tour