High Performance International Airport

HPI

Request For Proposal (RFP)

#2023-09

Food/Beverage/Retail
Concessions Opportunities

RFP Issued: November 6, 2023

Questions Due: November 10, 2023
Written Proposals Due: November 27, 2023
Oral Presentations: November 28, 2023
Table of Contents

Introduction and Background ............................................................................................................................... 1

Information on Available Locations .................................................................................................................... 1

ACDBE Goals and Requirements .......................................................................................................................... 1

Proposal Process and Instructions ....................................................................................................................... 2

Questions Regarding the RFP ............................................................................................................................... 2

Written Proposal Development ............................................................................................................................ 2

Required Proposal Attachments .......................................................................................................................... 3

Oral Presentation Preparation .............................................................................................................................. 3

Evaluation Criteria..................................................................................................................................................... 4

Required Forms ......................................................................................................................................................... 5

Contract Terms and Provisions ............................................................................................................................. 9

Introduction and Background

Airport Profile
High Performance International Airport (HPI) has been serving the New York/New Jersey area for
over 50 years. It is composed of five terminals which serve local, regional, and international
passengers. It boasts over 13 million annual enplanements, with an average of 2.6 million annual
enplanements per terminal. One-third of enplanements are for international destinations; one-third
for origin-to-destination domestic destinations and one-third represent connecting
flights. Enplanement and sales have increased 6% annually over the past 2 years and are forecasted
to be nearly 15 million total passengers by 2025.

Central to HPI’s mission is the provision of excellent customer service and guest experience, for each
part of a passenger’s journey. This includes creating excitement and delight in the food and shops
program. Beyond customer service, this drives the airport to provide a range and excellence in
choice while at our airport that meets the needs and profiles of our passengers.

Airport Concessions Objectives

HPI’s concessions program seeks to build on its successful history of satisfying passenger needs by
curating concessions offerings that are different from what may have been traditionally
contemplated by passengers, reflective of ever-changing passenger diversity and demographics.

Passenger Profiles
Based on passenger surveys, 63% of passengers are US nationals; with 20% of those residing in the
New York City region. Of importance is the increase in international destinations, as detailed in Table
1 below. The majority of origin-to-destination passengers arrive at the airport between one and two
hours prior to their flight and the majority of connecting passengers have between 45 and 60
minutes between flights. The average annual income of the majority of the passengers is $200,000.

Enplanements per Terminal

The following table provides the most current annual enplanements and airlines per terminal.

Table 1 – Enplanements Per Terminal

Terminal 1 2 3 4 5
Airlines Jet Blue Alaska Air Canda Air Jamaica British Air
Spirit American Hawaiian Aero Korean Air
Southwest United Air Mexico KLM
Frontier Delta Lufthansa Caribbean Aero
Cape Air Air Lingus
Aviana Argentinas
Brazil

Enplanements 2.8M 2.9M 2M 3.2M 2.4M

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Information on Available Locations
Each team can propose on one of the concepts described below.

Table 2 – Available Locations

Terminal Concept/Use Clause Square Projected Term Minimum Percent Rent Minimum
Footage Annual Length Annual Investment
Sales Years Guarantee Requirement
(MAG) for Design
and
Construction
1/#102 Quick Service Restaurant 1,000 $3M 10 $250,000 • 15% - over $1M $900/sq ft
A/Coffee, tea, and adjacent • 18% - over $1.5M
items such as smoothies,
baked goods, sandwiches,
salads, and pre-packaged
snack foods; branded apparel;
packaged coffee and tea; and
other related items
2/#229 Quick Service Restaurant B/ 1,300 $4M 10 $350,000 • 18% - over $2.5M $900/sq ft
Grab-and-Go market featuring • 20% - over $3.7M
local and regional brands and
products

3/#312 Restaurant Bar A/Destination 2,200 $7.5M 10 $350,000 • 20% - $1.7M $1,000/sq ft
restaurant and bar with local • 22% - over $3M
and regional flavors

4/#403 Restaurant Bar B/ Locally 3,600 $5M 10 $650,000 • 20% over $1.7M $1,000/sq ft
themed sports or ethnic- • 22% over $3M
inspired location

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 Terminal Concept/Use Clause Square Projected Term Minimum Percent Rent Minimum
Footage Annual Length Annual Investment
Sales Years Guarantee Requirement
(MAG) for Design
and
Construction
5/#516 Specialty Retail 750 $2.5M 7 $250,000 • 15% over $1.4M $1,000/sq ft
Merchandise/ • 18% over $1.9M
Destination NYC store featuring
locally-curated and culturally-
inspired packaged food and
retail merchandise offerings,
along with other travel
essentials

Additional Information on Minimum Annual Guarantee, Percent Rent, and Minimum Investment
Requirements
The information above represents the Airport’s expectations. Higher or lower amounts for minimum annual guarantee, percent
rent, and/or minimum investment can be proposed but must be justified.

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ACDBE Goals and Requirements

NOTE: All participants in the Institute of Concessions that have started their Airport
Concession Disadvantaged Business Enterprise (ACDBE) application should present
themselves in this solicitation as a certified ACDBE. Please note that for an actual
solicitation, you must be fully certified at the time of proposal submission to make
this assertion.

Concessions agreements are subject to the requirements of the U.S. Department of

Transportation's ACDBE regulations, 49 CFR part 23. The concessionaire or
contractor agrees that it will not discriminate against any business owner because
of the owner's race, color, national origin, or sex in connection with the award or
performance of any concession agreement, management contract, or subcontract,
purchase or lease agreement, or other agreement covered by 49 CFR part 23.

The concessionaire or contractor agrees to include the above statements in any

subsequent concession agreement or contract covered by 49 CFR part 23, that it
enters and cause those businesses to similarly include the statements in further
agreements.

Credit towards established ACDBE goals will be given in the following manners, so
long as it can be demonstrated that the ACDBE participation equals the efforts,
risks, and rewards of the percentage proposed:
• A joint venture between one or more ACDBEs and a non-ACDBE
• A joint venture between ACDBEs
• A license or franchise agreement with one or more ACDBEs
• A license or franchise agreement between ACDBE(s) and a brand or licensee

The following ACDBE goals have been established:

Table 2 – ACDBE Goals

Terminal/Space # ACDBE Goal

1/#102 25%
2/#229 25%
3/#312 20%
4/#403 20%
5/#516 30%

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Proposal Process and Instructions

Table 3 – Proposal Dates

Activity Due Date

Release Request for Proposals (RFP) to 11/06/23

prospective bidders
Pre-proposal meeting 11/07/23
Final date to submit questions on the RFP 11/10/23

Responses to submitted questions 11/13/23

Written proposals due 11/27/23
Oral presentations 11/28/23
Evaluations provided to respondents 12/08/23

Questions Regarding the RFP

All questions related to the RFP must be submitted via email to
clejeune@lejeuneandassociates.com and cc to dirose@panynj.gov by close of
business November 10, 2023. Answers to questions will be provided by November
13, 2023 to all parties expressing an interest in the RFP.

Written Proposal Development

Each team is to provide a proposal for ONE concept following the format and
instructions below. The total page limit of each proposal is 10 pages for Items 1
through 6. There is no page limit for the Attachments.

1. Signed Proposer Information Form (Use Form 1 provided in the Required

Forms section of the RFP)
2. Concept/Brands/Offerings for Identified Space
a. High-level overview of the concept
b. Details on:
i. Menu items and/or merchandise offered
ii. Look and feel of the space and/or design
iii. Furniture, fixtures, and equipment and placement
3. Customer Service/Management/Operations Plan
a. Staffing/recruitment/training approach
b. Customer loyalty program
c. Innovative use of technology/touchless service
d. Approach to promotional/seasonal offerings
4. Experience of the Team

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 a. Overall organizational structure
b. Roles of each firm
c. Management team operational experience and success
5. ACDBE Participation (Use Form 2 provided in the Required Forms section of
the RFP)
a. ACDBE participants and the nature and percentage of their
participation
b. If the established goal cannot be attained, the good faith efforts used
to reach the stated goal
6. Financial Proposal (Use Form 3 provided in the Required Forms section of the
RFP)
a. Acceptance of Minimum Annual Guarantee (MAG) and Percent Rent
State in Table 1, OR
b. Best and final proposed MAG and Percent Rent

Required Proposal Attachments

a. One creative representation, such as
o Menu, consisting of all day parts (breakfast, lunch, dinner)
o Merchandizing plan/Branding
o Concept Design/Layout/Furnishings/Overall Feel and Sense of
Place
o Innovative/Automated Operational Characteristics
b. Short bios of each firm on the team
c. Oral presentation PowerPoint

Oral Presentation Preparation

Each team is to develop a PowerPoint presentation to be presented on November
28, 2023. The presentation should provide a summary of the team’s technical
proposal and should not include any elements of the financial proposal. A copy of
the PowerPoint presentation is to be included in the proposal as noted above and
does not count towards the page limit.

Each team’s oral presentation is limited to 30 minutes, which will be followed by up

to 15 minutes of questions from the evaluation panel.

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Evaluation Criteria
Criteria Points
Signed Proposer Information Form (complete and sign N/A – completed and
Form 1) signed form required
Concept/Brands/Offerings for Identified Space 25
Customer Service/ Management/Operations Plan 20
Experience of the Team 20
Financial Proposal (complete and sign Form 3) 10
Creative Representation 15
Oral Presentation 10
ACDBE Participation (complete and sign Form 2) N/A – requirement to meet
the stated ACDBE goal or
provide documentation of
good faith efforts to meet it

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Required Forms

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Form 1 - Proposer Information Form

Solicitation
Number RFP #2023-09
Title Concessions For High Performance International Airport (HPI)

Offer
Firm Name

Name and
Title of
Primary Point
of Contact
(POC)
POC Phone
Number and
Email
Space Select Only One
 Terminal 1/#102
 Terminal 2/#229
 Terminal 3/#312
 Terminal 4/#403
 Terminal 5/ #516

Name of Firms
Included in
Offer

Name and
Title of
Authorized
Signatory
Signature

Date

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Form 2 - ACDBE Information Form

Solicitation
Number RFP #2023-09
Title Concessions For High Performance International Airport (HPI)

Goal
Number Select One
 25% ACDBE Goal Terminal 1/#102
 25% ACDBE Goal Terminal 2/#229
 20% ACDBE Goal Terminal 3/#312
 20% ACDBE Goal Terminal 4/#403
 30% ACDBE Goal Terminal 5/#516

Total Amount
(%) of ACDBE
Proposed
Details of Name of ACDBE Role % of
ACDBE Participation
Participation

If Total ACDBE Percentage is Less Than the Applicable Goal,

Complete This Section
Efforts taken
to attain the
goal

Name and
Title of
Authorized
Signatory
Signature/
Date

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 Form 3 - Financial Proposal
Solicitation
Number RFP #2023-09
Title Concessions For High Performance International Airport (HPI)
Complete either Acknowledgement of Proposal Financial Requirements or
Best and Final Alternative Financial Proposal
Acknowledgement of Proposal Financial Requirements
Financial Offer Select One
 Terminal 1#102: MAG = $250,000; Percent Rent = 15%
over $1M and 18% over $1.5M; Investment = $900/sq/ft
 Terminal 2/#229: MAG = $350,000; Percent Rent = 18%
over $2.5M and 20% over $3.7M; Investment = $900/sq/ft
 Terminal 3/#312: MAG = $350,000; Percent Rent = 20%
from $1.7M and 22% over $3M; Investment = $1,000/sq/ft
 Terminal 4/#403: MAG = $650,000; Percent Rent = 20%
over $1.7M and 22% over $3M; Investment = $1,000/sq/ft
 Terminal 5/#516: MAG = $250,000; Percent Rent = 15%
over $1.4M and 18% over $1.9M; Investment = $1,000/sqft

Best and Final Alternative Financial Proposal

Space Select One
 Terminal 1/#102
 Terminal 2/#229
 Terminal 3/#312
 Terminal 4/#403
 Terminal 5/#516

Financial Offer Element Proposed Best Justification

and Final Offer
Minimum
Annual
Guarantee
Percentage Rent
Capital
Investment (per
square foot)

Name and Title

of Authorized
Signatory
Signature/Date

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Contract Terms and Provisions

The following are standard terms and conditions applicable to all available locations.
These terms and conditions should be reviewed carefully in conjunction with
concepts proposed and acceptance of, or revised proposal for, each respondent’s
financial proposal.

RENT
COMMENCEMENT: Rent shall commence the earlier of Earlier of 1) 180 days
following possession (triggered by full execution of the lease
but not to occur before final approval of construction
documents as long as tenant has reasonably met deadlines and
submissions) or 2) tenant open for business

COMMON Tenant shall pay to the Airport, as an annual charge, Tenant’s

FACILITIES pro rata share of the Airport’s operating costs. The FY2023
estimated charges, at 100% occupancy, are listed below.
CHARGES:
These rates are adjusted annually.

Common Area Maintenance (CAM): $50.00/psf annually

Inclusive of:
Customer Service Charge
Trash Removal
Distribution & Delivery
Food court CAM ($15.00 psf. Non-Food Court tenants do
not have to pay this)

REAL ESTATE Tenant shall pay its pro rata share of real estate taxes payable
TAXES: by the Airport.

AIRPORT
ADVERTISING/ The contribution to the Annual Fund is $5,000 per year, per
location (paid monthly and increased at 3% annually).
PROMOTIONAL
FUND:

STORE HOURS: Tenant shall open 45 minutes before the first flight and remain
open 30 minutes after the last flight has departed, or as
approved by MP.

STREET PRICING: Tenant will comply with street pricing by offering prices in the
airport similar to what consumers/passengers would find for
the same items at similar locations outside the Airport.

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CREDIT CARD Tenant warrants and expressly agrees to accept three (3)
ACCEPTANCE: major credit/debit cards.

MINIMUM WAGE The lease is subject to Minimum Wage Law. Tenant hereby
LAW: agrees to meet and abide by all city and state laws, rules and
regulations pertaining thereto. If Tenant employs more than
five (5) people, Tenant shall provide its covered employees
(persons who perform work for Tenant that arises directly out
of the lease) with the minimum wage standard and minimum
benefits standard.

PREVAILING The Tenant is subject to prevailing wage requirements

WAGE: applicable to covered airport service employees. (Current
prevailing wage is $18/hour.)

SECURITY 3 months of rent in the form of a line of credit or cash

DEPOSIT:

DISPLACED New Tenants must interview for new employees from the
WORKER POOL: displaced worker pool and follow the policies and procedures of
the Displaced Worker Program.

TENANT Tenant, at its own cost and expense, shall remodel the
CONSTRUCTION: premises and provide all finish work, which shall be in
accordance with plans to be submitted to Airport and approved
by Airport. The construction shall be in accordance with all
rules, regulations, and criteria of the Airport, and governmental
and municipal authorities. Tenant shall cause its contractors to
deliver to Airport payment and performance bonds, for
completion of 100% of the work and for payment of 100% of
the cost of the work.

PLAN Plans and specifications for Tenant’s Work, including the type
REVIEW/TENANT of materials to be used by Tenant in the Premises, must be set
forth in detail and submitted to Airport for written approval
COORDINATION: immediately upon execution of the lease. Tenant shall
reimburse the Airport for plan review and tenant construction
costs at the nominal rate of $15,000.00).

REFURBISHMENT: Any lease 7 years or greater will be required to do a mid-term

refurbishment equal to 10% of initial minimum investment.

PREMISES: Tenant agrees to accept premises in “as is” condition.

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EMPLOYEE
Tenant shall, at Tenant’s sole cost and expense, offer at least
DISCOUNT: one of the following discounts to any Airport employee who
provides proper employee identification: a discount of at least
fifteen (15%) off the normal non-sale or non-promotional
prices for food and non-alcoholic beverages. Retail
merchandise offers may vary.

INSURANCE: Tenant, at all times and at its own cost, and in forms and
amounts approved by Airport, shall maintain commercial
general liability insurance, “causes of loss special” property
insurance, worker’s compensation insurance, comprehensive
automobile liability and boiler and machinery insurance, and
such other insurance as Airport may require.

STORAGE: Per a separate agreement

UTILITIES: Payment of the utilities will be the Tenant’s responsibility.

ASSIGNMENT/ Tenant shall not assign the lease or sublet all or any part of the
SUBLETTING: Premises without written approval from the Airport.

TENANT REPAIRS: All repairs to the Premises or any installations, equipment or

facilities therein, other than those repairs expressly required to
be made by Airport pursuant to the lease, shall be made by
Tenant at its expense. Without limiting the generality of the
foregoing, Tenant will maintain and keep the interior of the
Premises, together with all electrical, plumbing and other
mechanical installations therein and the heating, ventilating,
ductwork, and air-conditioning system in the Premises, the gas,
electrical, telephone, hot and cold water, fire sprinkler,
condensate, roof drainage, and sanitary and domestic waste
utility branch lines that are solely for the use of by Tenant or
located within the Premises, in good order and repair and will
make all replacements from time to time required thereto at its
expense. During the term of the lease, Tenant shall, at
Tenant’s expense, repaint, refurbish, and remodel the Premises
and any part and portion thereof to assure that the same are
kept in a first-class, tenantable, and attractive condition
throughout the Term.

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