Request For Proposal
Request for Proposal
Delta Air Lines Wine Program
Delta One, First Class, and Main Cabin
2018-2019
Issued: Friday, July 28, 2017
Response Due: Friday, September 15, 2017
Wine Samples Due: Friday, September 22, 2017
Request for Proposal (RFP) Executive Summary
Delta Air Lines (Delta) is currently conducting a Request for Proposal (RFP) for our Wine in Delta One, First Class, and Main Cabin for the 2018-2019 Wine Program. You have been selected as a potential participant in this process.
Contained herein is an overview of the project, information on the current state and scope of requirements. Please review this information and respond to the RFP thoroughly in order for Delta to assess your responses.
Responses to this RFP shall follow the format and guidelines contained herein. Any misrepresentation of data discovered at a later date shall be grounds for Delta Air Lines to terminate any resultant contract or associated agreement for default.
Project Background and Scope
Delta One Wine Program (International – Business Class)
The Delta One Wine Program consists of a rotation of white wine, red wine, dessert wine, and port as well as pre-departure sparkling wine and onboard champagne. Andrea Robinson, Master Sommelier, chooses wine from different regions of the world such as Argentina, Australia, France, Germany, Chile, Italy, Portugal, Spain, US, etc.
The Delta One program will discontinue the premium wine program slotted for our high-value customers that fly to London and Paris. All Delta One Wines will be essential wines. Delta is looking to add tax-paid Champagne on Transcon market to match the Delta One Wine Program. The South American wines will be provisioned every 6 months versus every 3 months. In addition, Delta will request tax paid pricing on 10% of bonded wines up front so that Delta could utilize the wines in the domestic market after the 2018-2017 Wine Program ends.
First Class Wine Program (Domestic)
First Class wine program consists of one white wine and one red wine from California wineries. For the 2018-2019 First Class Wine Program, we will add other white and red wines. In June 2017, Delta launched sparkling wine 187 in First Class which will continue during the 2018-2019 Wine Program.
Main Cabin Wine Program (Domestic & International)
Economy Class wine program consists of a 1.5L bottle on international, 187ML in the domestic market, and 375ML on Transcon market (EATS menu). Sparkling wine was launched in Main Cabin (domestic) June 2017. Delta will continue sparkling wine in the 2018-2019 Wine Program and add sparkling wine on Main Cabin (international).
Delta is changing the Wine Program launch in 2018-2019 to start in the Summer (June – August) instead of Spring (March – May). Delta’s Wine program will start June 2018 and end May 2019.
RFP Requirements / Logistics
A separate Excel file, “Delta Wine Program 2018-19 Bid Sheet”, has been attached listing all the specifications for the Wine Program 2018-2019. Please pay particular attention to the specifications to ensure that your submissions meet these minimum standards.
The Delta Wine Program 2018-19 Bid Sheet is available for your use in submitting your Wine Bids, Discount, and Market Value Proposal. We request that you follow the format as it is created, with NO ALTERATIONS OR CHANGES. If you have any queries, please direct them to Yan Zhang at . Please ensure that each submission meets or exceeds our specific requirements such as bottle size, number of bottles required in a case, pricing (some .
Once you have completed the bid sheet, submit your bid sheet via e-mail to Yan Zhang at by 5:00 pm EST on Friday, September 15, 2017.
Each successful Supplier must provide Delta with a copy of their DHHS/FDA Registration certificate via e-mail immediately upon notification of their selection. We will not issue Purchase Orders until this form is received.
Some quantities have been quoted in a range. Once initial selections are made and final negotiations complete, we will commit to a minimum and maximum order quantity.
Please submit 2 (two) samples of each bid submission by Friday, September 22, 2017. Send samples to:
Lani Gustafson
Strategic Sourcing Manager
Supply Chain Management
1010 Delta Blvd.
Department 917
Atlanta, Georgia, 30354
Office 404-715-7430
Each sample bottle (shiners are not acceptable) must have a LABEL containing four (4) key elements:
1. Name of the company submitting (winery, broker, etc.)
2. Specification number that is associated with the sample found on the bid sheet
3. Name of the wine exactly as you have it submitted in the Excel spreadsheet
4. Price per case in USD (Refer to Bid Sheet for Case Size and Bottle Size)
5. Volume Availability
These labels MUST be placed on the back of the bottle, NOT the front.
All samples must be shipped in standard shipping containers that allow the bottles to be protected and in a STANDING position – NOT layered. Do not pack bottles individually or loose.
Delta does not and will not accept any responsibility to facilitate or have facilitated the clearance of any submission(s) through U.S. Customs. All samples will need to be cleared through customs by the submitting winery. All fees are the responsibility of the submitter (broker or winery). Delta is not an importer. If Delta is requested to import samples, the wine samples will be returned to the shipper and the supplier will be eliminated from the bid process.
It is required that all imported wines will need the U.S. wine labels that follow the guidelines of the Alcohol and Tobacco Tax and Trade Bureau for distribution in the U.S.
Also, note that Supplier must quote all Delta products two ways: “Tax Exempt – EXW Winery” and “Tax Paid for Local Distributor”. Note that Delta will request tax paid pricing on 10% of bonded wines up front.
After you submit the “pre-down selects” that Delta has requested. Each Supplier is also able to quote up to 10 additional wines per specification.
We have included more specifications than we intend to award – not all specifications will be awarded in the Wine Program 2018-2019.
Selection & Implementation Process
Delta is releasing this RFP on Friday, July 28, 2017. Potential Suppliers will be evaluated on their responses in accordance with Delta’s pre-determined selection criteria.
Upon review of the responses, additional questions may be required of both parties. Additional negotiations may occur to secure the best competitive value for Delta and its participants. Each supplier needs to be aggressive in its pricing and Delta will use the 2017 program as a bench mark.
Once all phases of the process are completed, Delta will make final selections and notify successful and non-successful Suppliers in that order. Purchase orders will be generated at the appropriate time, and prior to the required delivery or order period.
Selection Criteria
Delta will evaluate responses on the basis of the following criteria (not necessarily prioritized and includes, but not limited to):
1. Aggressive per case pricing since we are leveraging the wine program for all cabins (Delta One, First Class, and Main Cabin)
2. Volume discount based on the share of total Delta wine spend (See attached bid sheet)
3. Comprehension of Delta’s Brand and the attributes and vision for our onboard Wine Program
4. Quality that meets or exceeds the detailed criteria set forth in the specifications.
5. Add market value other than case price i.e. Marketing Activations, Flight Attendant’s Training, Menu’s, etc. (See attached bid sheet)
6. Agree to provide Delta 20 complimentary cases (tax-paid) of each product selected to be used during the 12-month program
7. Supplier Diversity suppliers are part of the selection process. A diversity supplier must be a certified woman-owned, minority-owned, and small business
8. Ability to meet product delivery deadlines
Election Not to Submit Proposal
In the event you elect not to proceed with submission of a proposal to Delta, please inform us of your decision via e-mail to Lani Gustafson at .
RFP Questions, Inquiries and Clarifications
All questions or requests for clarification concerning this RFP must be submitted via e-mail to Lani Gustafson @ before 5:00 pm EST Friday, August 25, 2017.
Every attempt will be made to answer all inquiries from each Supplier in a complete and concise manner. To ensure consistent interpretation of the RFP, the written answers will be made available to all Suppliers. All information which would identify the inquiring Supplier will be removed.
Each Supplier has a duty to inquire about and clarify any RFP issues that the Supplier does not fully understand which may be interpreted in more than one way. Delta shall have no obligation to correct, nor bear any responsibility for errors (whether by commission or omission), ambiguity, or inconsistency in this RFP. If any Supplier is aware of or believes that the RFP contains such an error, it is the Supplier's responsibility to promptly notify Delta in writing.
By submitting a proposal, the Supplier represents that they have read and clearly understand this Request for Proposal and they are capable of providing the required services on the agreed implementation date. The contents of any submitted proposal will be considered an offer to contract by the Supplier.
Proposal Preparation and Format
Suppliers must submit their responses and samples in strict accordance with all requirements of the RFP. Deviations, clarifications, and/or exemptions must be clearly identified and listed separately as alternative items for Delta’s consideration. FAILURE TO COMPLY WILL ELIMINATE A SUPPLIER’S RESPONSE FROM CONSIDERATION.
DELTA MUST RECEIVE YOUR COMPLETE PROPOSAL BY 5:00 pm EST on FRIDAY, September 15, 2017. RESPONSE MUST BE SUBMITTED VIA E-MAIL TO YAN ZHANG AT .
Successful Suppliers will be required to provide up to tax-paid 20 cases of their product(s), at no cost to Delta, for the promotion of Delta’s 2018-2019 Wine and Champagne Program.
Supplemental Information
Unless supplemental oral commentary is specifically requested by Delta, oral communications outside the scope of the procedures detailed in this RFP will not be considered in connection with your proposal.
Non-Disclosure
This RFP contains information that is Proprietary to Delta and its subsidiaries. No part of this RFP may be reproduced, in whole or in part, unless specifically required for the Supplier’s internal use in responding to this RFP. Disclosure or distribution without the express written consent of Delta and its subsidiaries is strictly prohibited.
The Supplier will regard and preserve as confidential all information obtained from any source as a result of this RFP. It is for proposal purposes only and is not to be disclosed or used for any other purpose. Delta reserves the right to request the return or the destruction of any of the material contained in this RFP document. Information received in response to this RFP will be held in strict confidence and not disclosed to any party other than Delta without the express written consent of said Supplier.
Right to Change/Modification of Proposal
This RFP is not an offer to contract but represents a definition of our requirements. Your preparation and submission of a response do not commit Delta or its subsidiaries to award the business to any Supplier even if all of our requirements are met. Delta and its subsidiaries reserve the right to amend, supplement, withdraw or otherwise modify our requirements in whole or in part and seek additional Suppliers to submit bids. We also reserve the right to accept or reject any or all responses to the RFP and to enter into discussions and/or negotiations with more than one qualified Supplier at the same time should the action be in the best interest of Delta and its subsidiaries. In no event will Delta or its subsidiaries be responsible for any costs associated with the preparation of your proposal. All responses to this RFP will become the property of Delta and its subsidiaries.
Terms of Responding
Responding to this RFP constitutes acceptance by Supplier of all terms and conditions printed in this document unless otherwise noted. All respondents to this RFP must agree to the terms and conditions listed herein.
Effective Term of Proposal
Following the date of submission of the proposal, and prior to contract award, the terms and conditions of the offers shall be binding upon the Supplier for a period of one hundred and eighty (180) days.
Delta reserves the right, in its sole discretion, to contract with a single Supplier or multiple Suppliers based on the overall impact of the Suppliers’ proposals or on any other evaluation criterion. Only the execution of a definite, binding agreement(s) will obligate Delta in accordance with the terms and conditions contained in such agreement(s). For the purposes of this initiative, the agreement would be the issuance of a Purchase Order.
Supplier Diversity
Delta and its subsidiaries are committed to the development and utilization of small, minority and women-owned businesses. Delta recognizes the critical role of small business in the overall strength of the U.S. economy and ultimately to Delta stakeholders. Therefore, to the extent applicable, the Supplier agrees to include the provisions under FAR 52.219-8, “Utilization of Small Business Concerns and Small Disadvantaged Business Concerns,” in all subcontracts which offer further subcontracting opportunities. All subcontractors, except small business concerns, that receive subcontracts in excess of $500,000 ($1,000,000 for construction) must adopt and comply with a plan similar to the plan required by FAR 52.219-9, “Small Business and Small Disadvantaged Business Subcontracting Plan.” (FAR 19.704 (a) (4).
Binding Proposal Acknowledgment
It will be assumed that all representations made in your proposal will be binding and that your organization has agreed to all the requirements of the RFP unless specifically stated otherwise.
Review Rights
Proposals submitted might be reviewed and evaluated by any person(s) at the discretion of Delta, including employees or contract workers within Delta and any third party or independent consultants retained by Delta now or in the future.
We reserve the right to accept or reject any or all responses to this RFP and to enter into discussion and/or negotiations with one or more qualified Suppliers at the same time, if such action is in the best interest of Delta.