Florence Regional Airport

Request for Proposal (RFP)

______Fixed Base Operator (FBO) Services

ADDENDUM NO. ONE (I)

REQUEST FOR PROPOSALS (RFP)

FIXED BASE OPERATOR (FBO) SERVICES

FLORENCE REGIONAL AIRPORT(FLO)

FLORENCE, SC

OCTOBER 16, 2015

From:Florence Regional Airport Authority (Authority)

2100 Terminal Drive

Florence, SC 29506

This Addendum is hereby made a part of the RFP documents for the above referenced project. All other requirements of the original RFP shall remain in effect in their respective order. Offerers are to acknowledge receipt of this addendum by inserting its number and date in the proposal form.

PROPOSAL

  1. AMEND “TITLE PAGE” PROJECT SCHEDULE:

Submittal of Written Questions: October 9, 2015

  1. AMEND “SECTION I, PARAGRAPH 1, BACKGROUND AND GENERAL INFORMATON”to include:

FLO is owned by the Pee Dee Regional Airport District, not Authority. The Authority is the governing body, but the District is the public body that owns the airport.

  1. AMEND “SECTION I, PARAGRAPH 7, Non-Mandatory Pre-proposal Conference” to read:

Attendance at the pre-proposal conference is not mandatory for the submission of proposals; however, the Authority will not entertain questions after October 9, 2015.

  1. AMEND “SECTION I, PARAGRAPH 9, Clarification of Instructions or Requirements” to read:

If any prospective Proposer has questions about these solicitation documents, the prospective Proposer should direct such questions in writing to the Authority representative whose name appears on the face of this solicitation no later than 5:00 p.m. EDT on October 9, 2015.

  1. AMEND “SECTION II, Insurance Certification, sub-paragraph a.” to read:
  1. $5,000,000 Comprehensive General Liability
  2. Medical Expense Limit (Any one Person) $5,000
  3. Personal & Advertising Injury Aggregate Limit $5,000,000
  4. Products/Completed Operations Aggregate Limit $5,000,000
  5. Pollution Liability -- $1,000,000 per loss
  6. Hangarkeeper’s Coverage -- $1,000,000 each aircraft limit/$2,000,000 million each loss limit
  1. AMEND“APPENDIX B, PARAGRAPH 2, Use of Leased Premises” to reflect thatthe Authority desires that either the selected offerer provide Aircraft Airframe and Engine Maintenance and Repair services directly or through a third party provider of maintenance services upon prior approval of the Authority.
  2. AMEND “APPENDIX B, PARAGRAPH 2, Use of Leased Premises” to reflect thatthe Authority desires that either the selected offerer provide Aircraft Charter Services directly or through a third party provider of charter services upon prior approval of the Authority.
  3. AMEND “APPENDIX B, PARAGRAPH 6, Hours of Operation” to reflect thatthe selected offerer shall be continually open for business and provide aircraft fueling and line services for a minimum of 14hours a day, seven days a week, except as when necessitated by business or emergency conditions.
  1. AMEND “APPENDIX B, PARAGRAPH 7, Aircraft Airframe and Engine Maintenance and Repair Service Standards”to reflect thatthe Authority desires that either the selected offerer provide Aircraft Airframe and Engine Maintenance and Repair services directly or through a third party provider of maintenance services upon prior approval of the Authority.
  2. AMEND “APPENDIX B, PARAGRAPH 7, Aircraft Airframe and Engine Maintenance and Repair Service Standards”bydeleting:

“Should Lessee conduct turboprop and/or turbine Aircraft Maintenance, it shall be properly certified as a 14 CFR Part 145 Certified Repair Station.”

  1. AMEND“APPENDIX B, PARAGRAPH 15, Maintenance and Repair” to reflect that:

Lessee shall be solely responsible at its own cost and expense, for performing all maintenance, repair and replacement of the HVAC, electrical, lighting, interior finishes, and fixtures and is required to keep the leased premises in good, safe and sanitary condition.

  1. AMEND “APPENDIX B, PARAGRAPH 20,Insurance”to read:
  1. $5,000,000 Comprehensive General Liability
  2. Medical Expense Limit (Any one Person) $5,000
  3. Personal & Advertising Injury Aggregate Limit $5,000,000
  4. Products/Completed Operations Aggregate Limit $5,000,000
  5. Pollution Liability -- $1,000,000 per loss
  6. Hangarkeeper’s Coverage -- $1,000,000 each aircraft limit/$2,000,000 each loss limit

PRE-PROPOSAL CONFERENCE

A non-mandatory pre-proposal conference for the FLO FBO project was held on October 7, 2015 at 1:00 p.m. EDT. The purpose of this meeting was to provide prospective offerers the opportunity to tour the proposed leasehold area/facilities, be provided details on the Authority’s desire to contract FBO services to a private sector entity, and submit questions regarding the Request for Proposals. An attendance list is attached hereto and made a part of this Addendum. This meeting was convened by Mr. Chuck Henderson, A.A.E., Airport Director, at 1:00 p.m. in the Florence Aviation Lobby. Mr. Henderson welcomed all to FLO and expressed his gratitude for the interest and participation in the meeting. Mr. Henderson introduced Mr. Bryan Elliott, A.A.E, of Delta Airport Consultants, Inc. who reviewed the following items from Section I of the RFP document:

  1. Scope of the Project (Sections I.I. and I.II. of the Proposal Documents)
  2. Duties of the successful offerer (Section I.III. of the Proposal Documents)
  3. Forms to be submitted in response to the Authority’s RFP (Section I.IV.2. of the Proposal Documents)
  4. Proposal Guarantee requirements (Sections I.IV.3-4. of the Proposal Documents)
  5. Instructions for submittal of Proposals (Sections I.IV.5., and I.V.1., I.V.7., and I.V.9. of the Proposal Documents)
  6. The Authority’s criteria for evaluation of submitted Proposals(Section I.VI. of the Proposal Documents)

In response to inquiries from Pre-Proposal Conference attendees, the following documents have been (or will shortly be) posted under the “Doing Business with Us” Tab of the FLO website:

  1. September 2015 Hangar Occupancy List
  2. Aviation Fuel Sales Summary
  3. FLO Fuel Farm Assessment Summary Report
  4. August 2015 Florence Aviation Income Statement
  5. Current Airport Layout Plan
  6. Inventory of Current Authority-owned equipment for Florence Aviation
  7. Copy of Airline Fueling Agreement
  8. Copy of Fuel Purchase Contract with AvFuel

PRE-PROPOSAL CONFERENCE QUESTIONS/ANSWERS

The following responses are provided to questions raised during the Pre-Proposal Conference:

  1. A schedule of current leases for hangar, tiedown, shadeport, and ramp areas has been posted to the Business Opportunities Page on the FLO website.
  2. The Authority adjusted lease rates approximately one year ago. The adjustment was based on then current rates and the regional average for similar-sized hangars.
  3. A copy of the current FLO Airport Layout Plan is (will soon be) posted under the “Doing Business with Us’ Tab of the FLO website.
  4. The current Proposal documents require the selected offerer to assume the leasehold area in an “as-is” condition and to be responsible for all maintenance of the buildings. The Authority proposes to amend this requirement and maintain responsibility for the ‘building envelope’ (roof, exterior walls, walk-through doors, exterior lighting and hangar doors) while the selected offererwill maintain all of the building’s various systems – HVAC, electrical, lighting, interior fixtures and finishes.
  5. FLO does not have adopted Minimum Standards in place at this time. It is the goal of the Airport Director to submit draft Minimum Standards to the Authority Board for adoption within the next six months. It is not the intent of the Authority to adopt Minimum Standards that are less than the requirements to be established through award of a lease and operating agreement resulting from this RFP. The selected offerer is expected to meet the then current adopted Standards at the time their lease is renegotiated or renewed.
  6. Sikes Aviation provides aircraft flight instruction at FLO. There are no other Operators currently authorized by the Authority to provide commercial aeronautical services to the public at FLO.
  7. The Authority is not aware of noise complaints or other operating issues expressed by those residing near FLO.
  8. A copy of Florence Aviation’s current year financial statement has been posted under the “Doing Business with Us” Tab of the FLO website.
  9. In response to questions related to the condition and age of the FLO Fuel Farm, the Authority has posted a Summary of a 2015 Assessment of this facility under the “Doing Business with Us” Tab of the FLO website.
  10. Approximate Hangar Door dimensions for current aircraft hangars are as follows (length x height):
  1. Main Maintenance/FBO Hangar: two doors measuring 60’ x 20’
  2. Community Hangar adjacent to the FBO: 60’ x 16’
  3. Leased Hangar immediately north of the FBO apron: 60’ x 18’
  4. World War II Hangar: 80’ x 16’
  1. Aircraft Rescue and Firefighting (ARFF) Services are currently available 20 hours per day (0500 – 0100).
  2. Aircraft hangars are not heated.
  3. Installation of branding and signage is permitted pursuant to Appendix B, Paragraph 10 of the RFP documents: Mandatory Terms & Conditions for FBO Lease & Operating Agreement.
  4. The Authority is to negotiate the sale/transfer of its equipment and supplies to the selected offerer. An inventory of this equipment has been posted under the “Doing Business with Us” Tab of the FLO website.
  5. The selected offerer is expected to maintain the grounds and grass within the leasehold area (see Exhibit 1 of the RFP documents).
  6. The lease with Pee Dee Electric Cooperative expires in 2016. It is expected the Authority will enter into a lease extension with this entity and this lease will not be included in the FBO agreement/leasehold area.
  7. It is expected the selected offerer will provide fuel and on-call maintenance services to the airline(s) serving FLO.
  8. The Authority’s into-plane fee for American Airlines is $0.60/gallon.
  9. The Authority currently leases all aircraft fuel trucks from AvFuel.
  10. The Authority does not currently have a Department of Defense Fuel Contract.
  11. The Authority has a five year contract with AvFuel; it was executed in October,2014.
  12. The Authority anticipates constructing a new General Aviation Terminal Building sometime within the next five years. Should this facility be constructed, the Authority anticipates that the selected offerer will manage and operate this facility on its behalf.
  13. Current Authority employees assigned to Florence Aviation could transition to employment with the selected offerer. Current staffing levels for this operation include: 3 full-time and 2 part-time line employees, 1 full-time aircraft mechanic, and 1 full-time office manager. Line personnel are cross-trained as customer service desk representatives. The Authority has 1-2 line personnel on duty during mid-day and 3 at shift change. One part-time position is solely responsible for after-hour callouts. Employee fringe benefits include: medical insurance, state retirement, and annual leave. Peak times of day are 1100-1400 and NASCAR races at Darlington create peak demand during the year.
  14. Unless damaged by the selected offerer, the Authority would not expect the selected offerer to fund and/or construct the strengthening, overlaying, and or repairing of pavement within the leasehold area. The Authority does expect the selected offerer to re-mark tiedowns, crackseal, clean fuel spills, and control weeds in these surfaces.
  15. Utilities for all buildings within the leasehold area are to be the responsibility of the selected offerer. Posted to the FLO website is a Year-to-Date August 2015 Profit & Loss Statement for the three primary lines of business at the FBO (Line services, aircraft maintenance and hangars) with a utility expense allocation for each line.
  16. The Air Traffic Control Tower (ATCT) operates daily from 0630 – 2200.
  17. In May of each year, the FAA conducts its annual 14 CFR Part 139 inspection of FLO. A review of past inspection reports reveals no fuel-farm equipment-related discrepancies. The Airport was previously written-up when the inspector observed that a fueler parked a fueling vehicle too close to a building.
  18. The Authority is willing to allow the selected offerer to complete its own fuel farm inspection and analysis prior to the commencement date of a use and operating agreement. If contamination is discovered as the result of this inspection, the Authority will hold selected offerer harmless from such contamination. The Airport will pursue remediation of any contamination/contaminants discovered as a result of inspection and analysis.
  19. It is not necessary for offerers to submit engineered drawings for the fuel farm replacement or upgrade project as part of their responses to this RFP.
  20. The Authority currently benchmarks other nearby airports to determine fuel pricing. It is expected the selected offerer will set its pricing at competitive market rates.

POST PRE-PROPOSAL CONFERENCE QUESTIONS/ANSWERS

The following questions were received following the October 7, 2015 Pre-Proposal Conference:

  1. Over the past 3 years, what is the annual average occupancy rate for the T and corporate hangers by year?

Response: 2013: 78.9 percent; 2014: 82.1 percent; and 2015 84.6 percent

  1. Will the offerer be bound to the current fuel contract between the Authority and AvFuel?If so, please provide the details of that contract.

Response: It is not the intent or desire of the Authority to bind the future FBO the current fuel agreement. The selected offerer is free to obtain its fuel from Avfuel if it desires to do so.

  1. Prior to the proposal submission date, will the Authority provide a list of its owned and leased equipment and ground support equipment?

Response: Yes. To be posted to the Authority’s website under the “Doing Business with Us” Tab.

  1. Will the Authority owned equipment be offered for sale or use to the offerer?

Response: Yes.

  1. Will the offerer be bound to the Authority equipment leases?

Response: No.

  1. Please provide lease or purchase costs for the Authority equipment.

Response: The Authority will negotiate in good faith with the selected offerer for the sale of Authority-owned equipment.

  1. Please clarify the current Airline fuel sales agreement. Is the selected offerer compensated for the price of fuel and flow rate?Will selected offerer or Authority negotiate future Airline fuel sales?

Response: The Authority recently revised its fuel handling agreement with the Material Services Company (MSC) which brokers the fuel for American Airlines at FLO. A copy of this agreement will be posted to the FLO Website under the “Doing Business With Us’ tab. It is neither the intention nor desire of the Authority to involve itself in future fuel negotiations.

  1. Please clarify the responsibility of the Lessee for the appearance and maintenance of the physical structures such as tarmac, HVAC, roof, plumbing, hangar doors, etc.

Response: The Authority proposes to maintain the ‘building envelope’ (roof, exterior walls, walk-through doors, exterior lighting and hangar doors) while the selected offerer maintains all of the building’s various systems – HVAC, electrical, lighting, interior fixtures and finishes. The Authority recognizes the financial ramifications of this arrangement and is open to alternative arrangements.

  1. Would you provide the fuel sales to the airlines for YTD 2015?

Response: The 2015 Airline Fuel Sales are now posted under the “Doing Business with Us” Tab of the FLO website.

  1. Does the Authority have a preference as to whether the fuel farm is repaired or replaced? When was it constructed? How old are the tanks presently on site? Have there been any upgrades? Has the ground water been tested for contamination?

Response: No preference, but the Authority recognizes the financial ramifications of either alternative. The Fuel Farm was comstructed in 1986 , the current tanks are originals and there have been no significant upgrades or repairs made to the fuel farm since original construction. There have not been tests performed for ground water contamination and no reason to complete such inspections due to spills, etc.

  1. Will the Authority define expectations as to repairs and maintenance? It seems there needs to be a maximum limit on the amount of repairs any tenant would be expected to pay, particularly since the fixed assets are to be assumed in “as is” condition.

Response: The Authority proposes to maintain the ‘building envelope’ (roof, exterior walls, walk-through doors, exterior lighting and hangar doors) while the selected offerer is to maintain all of the building’s various systems – HVAC, electrical, lighting, interior fixtures and finishes. The Authority recognizes the financial ramifications of this arrangement and is open to alternative arrangements.

  1. In item 2b of Mandatory Terms…, it appears the Authority will require the successful proposer to provide charter services. Please state if that is correct.

Response: It is the desire of the Authority to have charter services available to the public and provided directly by the selected offerer or through sub-contract with a specialized operator upon prior approval of the Authority.

  1. It appears the Authority will require the FBO to operate a maintenance shop. Is that correct? Does it have to be an FAA repair station?

Response: The Authority desires that either the selected offerer provide maintenance services or it arranges to have a third party provider of maintenance services on the field upon prior approval of the Authority. The minimum level of service would match the existing level of maintenance services currently being provided on the airport; minor airframe and power plant repairs, routine maintenance, call-out airline maintenance and emergency aircraft recovery/removal as needed. The maintenance shop need not be an FAA repair station if it can provide this level of services.

  1. Please provide a historical cost of utilities by each meter/location for which the cost should be included in the proposal.

Response: Posted to the FLO website is a Year-to-Date August 2015 Profit & Loss Statement for the three primary lines of business at the FBO (line services, aircraft maintenance and hangars) with a utility expense allocation for each line.

  1. The RFP references requiring audited financial statements. Please confirm if that is the case or would you accept a compilation or review? If so, would you require footnote disclosures?

Response: The Authority will accept financial statements prepared by selected offerers’ Chief Financial Officer. Statements are to include foot note disclosures. It is expected that the selected offerer will provide financial statements prepared by an independent certified public accountant prior to award of a lease and operating agreement.