An RFP issued by the Guam International Airport is asking for catering proposals to operate over 16 000 square feet of space.
The requests for proposal to operate the lucrative food-and-beverage concessions were released on Nov. 29 with a final deadline for submissions tentatively set for Dec. 31.
“The Guam International Airport Authority under the guidance of the board of directors is pursuing another milestone in its endeavor to positively contribute to the overall improvement and return of island’s economy by issuing this request for proposals ” Jesse Q. Torres executive manager at the airport told the Journal. “With 15 available locations the authority offers all interested and qualified individuals and firms valuable and profit-making spaces to serve over 1 million travelers and other users of the airport.”
He said the airport’s search for new concessionaires does not limit the ability of any single operator from winning a contract for several or all food-and-beverage locations that are available for consideration. “Like other international airports worldwide we have announced this food-and-beverage request for proposal with one goal in mind — to achieve a high standard of customer satisfaction and excellence in food-and-beverage concession in the air terminal while optimizing revenue for the authority ” Torres said.
In fiscal 2004 ending Sept. 30 airport food-and-beverage gross sales topped $4.4 million with nearly 1.3 million passengers visiting Guam. This represented a gross sale per enplaned passenger of $3.51.
A state-of-the-market report prepared by GIAA and included in the RFP package showed monthly flights from the 12 airlines landing and departing totaled 2 059 with a combined seat availability of 374 268.
Gross retail sales for airport concessions for the 1 253 101 enplaned passengers in fiscal 2004 totaled $34.38 million or $27.44 per person. According to Airport Book 2001 GIAA ranked 53rd in concession performance worldwide with $30.76 million in retail gross sales for the 1.72 million passengers enplaned spending an average of $17.93.
Airport management has developed a minimum percentage rent formula based upon gross annual sales. The fees are based upon 15% of food and non-alcoholic beverages; 20% of alcoholic beverages; and 22.5% of merchandise sales.
A draft of the concession agreement included in the RFP package stated that firms successful in being selected for one or all of the spaces will be required to man operations seven days a week 24 hours a day.
A proposal guarantee of $5 000 is required for each proposal for each of the 15 available locations. This is to ensure the bidder will not withdraw proposals for a period of 90 days after the scheduled closing time for receipt of proposals.
Torres said each concession space should be integrated “aesthetically functionally and operationally” into the overall architectural and design scheme of the terminal/concourse in which the assigned site is located.
Up for grabs are spaces in both the secured and unsecured areas of the airport. Currently there are seven concession areas in the secured food court occupying 2 962 square feet; an undeveloped 1 910-square-foot space in the secured west concourse; 4 020 square feet in the secured mid-concourse; and 235 square feet in the secured east concourse. The airport is also asking for proposals for the non-secured travelers lounge area occupied by Shirley’s Restaurant and the All American Sports Pub with four areas totaling 3 360 square feet.
Each proposer must provide proof of having at least three years of continuous successful experience within the last five years in the ownership and operation of a food and beverage service or similar business with annual gross revenues of not less than $100 000. Each must provide documented evidence demonstrating the ability to fund the proposed project.
Airport authority staff will evaluate each proposal submitted through the following criteria: management and operations plan 20 points; operator experience/financial strength 20 points; facility design/architectural plans/capital investment 20 points; proposed brands/concepts 20 points; and financial return to GIAA and menu/pricing 20 points.
Each proposal must describe the concepts or brands proposed and how these will meet or exceed the desired services the airport wishes to achieve. This includes the rationale and justification for selecting the proposed concepts and how they will enhance the overall concession program appeal to the traveling public complement the existing concession offerings and provide incremental revenue.
The evaluation committee also wanted a complete listing of menu items products and services to be offered for sale at the facilities. This included elaboration on the adequacy of menu for lunch dinner and breakfast customers and the method of menu item preparation -whether individually prepared or partially pre-made and finished to customer orders.
Bidders should price menu items no higher than the highest price charged for similar items at off-airport establishments in the area. A day-to-day facility maintenance and janitorial plan must be presented detailing cleaning schedules.
A detailed description of the initial capital investment to be made for improvements and the actual amounts to be invested by improvement type (fixed improvements trade fixtures professional fees etc.) was requested. GIAA is mandating new equipment fixtures and furniture for each proposed facility. A capital plan that indicates the sources and uses of funding for the purchase or lease of equipment installation working capital and other start-up costs is also required.
Upon evaluation airport staff will present recommendations to management and the board of directors for action including any authority to award a concession agreement.
“The award or multiple awards will be given to the most responsible and responsive proposer who best meets the requirements as set forth in the RFP package ” Torres said. “The authority welcomes and encourages all F & B entities to participate in this RFP and wishes everyone the best of luck.” MBJ