Institute of Concessions

Leasing/Procurement
Process
LeJeune and Associates
About LeJeune and
Associates, LLC
Established in 2013
Principals - Clarence LeJeune and Melwood Hannah
More that 50 years of combined retail and property
management experience
Concessions management partners for
• Philadelphia International Airport
• Boston Logan International Airport
• Washington Reagan National Airport
• Dulles International Airport
DBE/ACDBE/MBE Certifications
• Pennsylvania • Massachusetts • Tennessee
• Florida • New Jersey • Texas
• Georgia • New York • Wisconsin
• Illinois • California • Arizona
• Virginia • Maryland • Oklahoma
• Louisiana

NAICS Codes:
• 531312 – Nonresidential Property Managers
• 541611 – Administrative Management and General Management Consulting Services
• 611430 – Professional and Management Development Training
• 561210 – Facilities Support Services
• 541614 – Process, Physical Distribution and Logistics Consulting
• 541613 – Marketing Consulting Services
Industry
Expertise
Airports
Urban Mixed-Use Retail
Traditional Retail
Office Space
Facilities Management
Partnering
with Airports
Celebrating Success
• LeJeune and Associates celebrated 20 years of
Marketplace PHL at the Philadelphia International
Airport in 2018, and represented PHL’s merchants
in PHL’s first-ever virtual Annual Report.
Creating Award-Winning Concessions
• At the March 2020 Airport Experience News
(AXN) Annual Conference Awards ceremony,
Clarence LeJeune’s and Melwood Hannah’s
efforts in airport excellence received recognition
through awards in five categories, including Large
Airport with Best Overall Program, Best Local-
Inspired Restaurant, and Best New Restaurant.
Partnering
with Airports Continued
Enhancing Communications
• The firm has been featured by Philadelphia
International Airport’s CEO Chellie Cameron in
her podcasts and videos; sharing their paths in
the aviation industry, giving insight on race in
America, and offering advice to those starting
their own career journey.
Enhancing
Businesses
Sharing Business Insight
• LeJeune and Associates has been proud to
participate in Philadelphia International Airport’s
annual Business Opportunity Forum, encouraging
businesses to take part in the concessions
program and supporting the airport’s inclusion
goals.
Identifying and Developing Diverse Businesses
• Clarence LeJeune welcomes Ben’s Chili Bowl to
Washington Reagan National Airport. Ben’s not
only serves delicious, authentic American food,
but is also a national treasure and historical
legend in its own right. At four airports, the firm
leads the concessions efforts in ACDBE
participation; routinely exceeded goals and
Enhancing
Businesses Continued
Highlighting Diversity Contributions
• Sharing insight with Chellie Cameron, CEO of
Philadelphia International Airport, and Hezekiah
Harris, President of CMTS, Clarence LeJeune
participated on the "What's Diversity Got to Do
With It?" panel at the Conference of Minority
Transportation Officials (COMTO) National
Conference.
Supporting
the Community
Inspiring Youth
• LeJeune and Associates participated in this
entrepreneurship hackathon creating economic
opportunity for communities of color. Whether it’s
participating in local job fairs or inspiring youth to
become entrepreneurs, the firm focuses on
impacting youths in underserved communities.
Supporting Our Troops
• LeJeune and Associates honors the service and
sacrifices of the members of our armed forces and
their families. It has been the firm’s honor to
facilitate the opening of the USO’s state-of-the-art
facility at the Philadelphia International Airport and
support the Annual USO/PHL Celebrity Golf
Outing.
Supporting
the Community Continued
Helping Families in Need
• LeJeune and Associates participates in the Annual
Ronald McDonald House Plane Pull fundraiser,
which supports families of seriously ill children
while they are undergoing treatment. In just one
year, the firm’s efforts helped raise nearly
$170,000 for the organization at this event.
Introductions
Name
Company Name
Type of Business
Number of Years in Business
Why are You Interested in Airports?
Session
Overview
What We Will Cover Today
Concessions Planning Overview

Requests for Proposals

Strategies for Increasing Local and Diverse Business Participation

The Evaluation Process

Experience from Wins and Losses

 Concessions
Planning Overview
How Do I Get My Business Into an Airport?
Most opportunities are competitive, requiring that you:
• Meet a particular, identified need of the airport’s concessions program (merchandizing strategy)
• Provide a certain service or product that is unique and/or different
• Have the capacity to compete against other firms
• Have a successful track record of owning and/or managing a business
• Be ready and willing to go through a competitive bid process
• Be selected
• Perform if successful

In many cases, you are asked to respond to a Request For Proposals (aka RFP)
What Drives Opportunities?
Airport re-development Renewals/expirations
• New space becomes available • Locations that are nearing the end
• Terminal expansion of their lease term
• Re-purpose space for concessions • Possible re-captures driving by
passenger behavior
Re-merchandizing strategies • Ownership changes
• Airline/terminal changes or additions
• Enhance the guest experience Need to achieve Airport’s diversity goals

The reason for an opportunity can impact how

you find out about it, prepare for it, and win it.
Who Are You
Proposing To? Direct with the
Airport

Approaches used Through a

for leases and development or
subleases management firm

With Airlines
What are the Priorities?
Priorities and objectives can differ depending on who you are proposing to and their
current objectives
• Guest experience
• Local/regional brands
• Diversity
• Revenue generation
Key Competitive Objectives to Keep in Mind
Concept Financial Investment
• How will you meet the identified need? • Highly competitive markets
• What distinguishes you from others? drive high market rents.
• Does your concept create a sense of place? • Can you meet the minimum
• Do you have a track record of delivering this lease-required cost for build
concept? out?

Design
• Is it appealing/creative/innovative?
• Does your concept fit in the space available?
• Does it meet other airport requirements?
• Can you deliver an on-time construction
schedule?
BREAK
 Requests for
Proposals (RFP)
Requests for Proposals
- The Typical Practice
RFPs typically require proposers to provide
written technical and financial proposals
Typical Elements in RFPs
• Minimum Qualifications
• Financial Considerations
• Evaluation Criteria
May also require an oral presentation after
written proposals are reviewed
How Do I Prepare For an RFP Release?

Dissect the RFP Do your Develop a Line up key

requirements research timeline partners
 Dissecting an RFP
Read the entire document, looking for:
• Technical requirements
• Financial requirements
• Diversity requirements
• Evaluation criteria
• Administrative requirements
• Airport requirements for proposal submission
• Lease terms

Dissect the RFP

requirements
 Dissecting an RFP’s Technical and
Financial Requirements
Technical requirements and information such as: Diverse business inclusion
• Concept details or parameters • ACDBE Goal
• Minimum experience and qualification criteria • Local Business Goal

Financial Requirements
• Minimum financial strength of team
• Minimum rent
• Minimum investment

Dissect the RFP

requirements
 Dissecting an RFP’s Administrative
Requirements
Administrative Requirements
• Pre-proposal meetings • Documents that need to be notarized or attached
• Q&A • Such as financial statements
• Addenda • Renderings/menus/merchandising plan
• Deadlines • Format/page limits/other criteria of the proposal
document to be submitted
• Evaluation criteria
• Often expressed as percentages or points
• Method of submittal (hard copy, electronic, portals)

Dissect the RFP

requirements
 Dissecting an RFP’s Standard Lease
Requirements
Understand how standard lease requirements will
impact your technical and financial proposals
• Workforce and labor requirements • Construction
• Hours of operation • Design/permit requirements
• Security requirements • Time requirements for
• Employee discounts construction completion
• Breakfast, lunch, dinner menu items (for food • Other issues (union workers,
locations) bonding, insurance)
• Barricades, hours/conditions
permitted for construction
• Requirements for mid-term
refurbishment
• Street Pricing
Dissect the RFP
requirements
Do Your Research
Gather available airport data Review information related to store location
• Size • Available sales data and current use of
• Sales location
• Enplanements • Characteristics of the terminal
• Dominant airlines/hubs • Airline carriers
• New initiatives • Passenger characteristics
• Passenger survey data or statistics • Other adjacent concepts
Conduct local area research on brands
Visit the airport

Do your
research
Develop a Timeline for Proposal Development
Include Deadlines and Responsibilities For

Pre-proposal meeting/site visit Producing impactful marketing pieces

Review of addenda
• Addenda can change the RFP
Obtaining commitment of partners
• Including diverse business partners
Writing technical proposal
Developing financial proposal
• Renderings
• Photographs
Conducting multiple levels of QA/QC review
Performing final review and grading
your proposal
Shipping/submitting the proposal for
on-time delivery
• Think about weather/technology glitches

Develop a
timeline
 Get Commitments from Key Partners

Legal Design /
Accounting
Architecture

Brand /
Licensing Management Other Team
Agreements Team Members

Line up key
partners
Evaluation
Criteria
Proposal
Evaluation Criteria
Criteria vary from proposal to proposal
Points/percentages assigned to evaluation
criteria vary
Proposal should be written to:
• Exactly meet the minimum criteria and
requirements
• Maximize points available for each criteria
Effective practice is to have someone not involved
in writing proposal score the proposal according
to the evaluation criteria
Typical Evaluation Criteria

Operator
Use and Capital
Store Design Experience and
Concept Investment
Success

Financial
ACDBE Economics
strength of
Participation (Rent)
operator
Additional Potential Evaluation Criteria

Customer
Creativity / Employee
Experience Sustainability
Innovation Engagement
/ Operations

Diversity of
Community
ACDBE Technology
Engagement
Participation
Sample Evaluation Criteria - #1
Proposed Concept 40 points

Design and Capital Investment 25 points

Customer Service/Quality Control 15 points

Business Plan 10 points

Revenue (MAG/Percent Rent) 10 points

Total 100 points

ACDBE participation pass/fail for good faith efforts

Sample Evaluation Criteria - #2
Customer Service/Mgmt./Operations Plan 20 points

Local Participation 15 points

Concept Development and Menu 15 points

Design and Innovation 15 points

Background and Experience 15 points

Compensation to Airport 10 points

Transition Plan 10 points

Total 100 points

Sample Evaluation Criteria - #3
Experience 33.3%
Overall experience as operator
Experience operating at high volume
Financial Ability to Perform 33.3%
Ability to Fund Construction
Firm Financial Health
Brands 33.3%
Consistent with preferred concept
Innovative and cutting-edge brands
Local brands preference
Ability to operate brands
Total 100
BREAK
Finding Diverse
Businesses
Finding Local and Diverse Businesses
Methods commonly used for airport concessions:
• State Unified Certification Program (UCP) Database
• Contains list of certified diverse businesses
• Learn more about getting on this list on Oct 10th ACDBE session
• Local diverse chambers of commerce or business organizations
• Visiting local/regional area for stores/shops/restaurants

Partners need to demonstrate a skill and experience that adds to team and
makes the proposal stronger.

If you are a local, diverse business, know how to be found and

demonstrate how you add technical and financial value.
 Lessons Learned
from Wins and Losses
Experience From
Wins and Losses

“If you win, that’s when the

work begins. If you lose, that’s
when the learning happens.”
Closing Thoughts
In your proposal, be clear about how you:
• Meet expectations and requirements, and
• Are better than the rest of proposers
Writing proposals can take significant time and resources
Be realistic about the timeline after bid submission
• Even if you win, it could be 10-14 months before make your first sale
Be mindful of what you are signing up for
• High cost of entry
• High market rents
• Extended hours
• High customer service demands
• Holidays/weather days are normal days of operation
Don’t over-promise – if you win, you will have to perform
Questions