greenville-spartanburg international airport · company announcements 2015- 2020. nearly 400...
TRANSCRIPT
Greenville-Spartanburg International Airport
August 17, 2020
RFP Pre-Proposal Conference – Food & Beverage Concessions Management & Operating Services
www.gspairport.com
Introductions
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Commercial Business Department
Scott C. Carr, A.A.E.VP – Commercial Business & [email protected]
Carlos Ruiz, A.A.E.Director – Commercial [email protected]
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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 Income: $50,296 (2019)
Source: Upstate SC Alliance
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Why GSP and the Upstate?
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• Superior Infrastructure: One of the nation’s most productive workforces
• International Hub: The North American location of choice for global companies
• Diverse Economy: World-wide recognition as a center for advanced manufacturing
• Institutions 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 anPresident/CEO who is responsible for the administration and management of the District/Airport and over 220 full-time staff.
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Greenville-Spartanburg International 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.
• FIS 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,
other)• $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 International Cities
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Passenger Traffic at GSP 2020 vs 2019
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0
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
Tota
l Pas
seng
ers
Passenger traffic was on 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
%G
SP
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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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In-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.
• In 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:– Initial 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 Identified as Operating Expenses.
– Incentive Fee – Percentage of Net Income (Proposal Form – Annual Percentage Fee Covering All 10 Years)
– Net Income
• All Revenue Received From Food, Beverage, and Merchandise Sales Not Including Staff Gratuities LESS:
– Amortization of any District Capital Investments (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, Ingredients, 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
• Internet & 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 Incurred with Respect to the Operation of the Restaurants
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Concept & CRDF Locations
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SOUTH CARGO BUILDINGCRDF – 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-In 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 CONSCESSIONS MANAGEMENT”
• Interviews 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 Information
• 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 on other contracts;
• Past evidence of an unsatisfactory record of maintaining brand standards outlined in franchisee agreements;
• If 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 Incomplete 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 FDIC and payable to the GREENVILLE-SPARTANBURG AIRPORT DISTRICT.
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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 Instructions and Requirements
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• 4.0 Proposal Instructions
• 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 Instructions 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 Instructions and Requirements
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• 4.1 Proposal Submittal Requirements
• Forms to be Completed and Included:
• 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, Ineligibility, 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