REQUEST FOR PROPOSALS (RFP)
FOR
CONCESSION OPPORTUNITY
DIRECT FOOD & BEVERAGE/SPECIALTY RETAIL – CONCOURSE B
CONTROL No. S04-054
ADDENDUM No. 1
ISSUE DATE: 4/07/04
DUE DATE: 5/11/04 AT 4:00 PM Local Time
THIS ADDENDUM MUST BE ACKNOWLEDGED ON THE PROPOSAL FORM IN THE RFP
Addendum #1 Page 1 of 7
Modifications, clarifications and answers to questions submitted in writing are being provided for the abovereferenced RFP as indicated below:
MODIFICATIONS:
1. REPLACE pages 6, 7 and 9 of the RFP with the attached revised pages.
CLARIFICATIONS:
1. The successful Proposer will be responsible for operating both locations listed in this RFP. Proposers must submit a proposal for both locations as identified in the RFP.
2. Clarification on the construction dates:
a. Concourse B construction began in January 2004 and is anticipated to be completed by February 2005.
b. Construction for Concourse C is scheduled to begin in May 2004 and is anticipated to be completed by July 2006.
ANSWERS TO SUBMITTED QUESTIONS:
1. Are there any projections available concerning passenger traffic for Concourse B when all 17 gates are in use?
A. Aside from the information provided in the Proposal, Northwest Airlines provided that they will be purchasing 10 new CRJ aircraft that will be used on Concourse B. This would increase enplanements by approximately 140,000. Note: Neither the Authority, airlines nor their consultants warrant that the enplanement projections will be met in the future.
2. If not, are there any projections of the number of anticipated "turns" per day per gate on Concourse B when all 17 gates are in use?
A. The possibility exists that Delta Airlines will be moving to the McNamara Terminal. If so, it would occupy three (3) gates at the B concourse. The Year 2003 enplanement figures for Delta Airlines out of the LC Smith Terminal was 366,520.
3. Please provide projected enplanements figures for these new gates.
A. See response to Question number 1.
4. What type of aircraft is slated to use the gates on Concourse B?
A. The type of aircraft using or slated to use concourse B are: RF (50 seats); CRJ (50 seats); EMD-145 (50 seats); Boeing 737 (124 seats)
5. Is there an elevation or rendering of the concourse in the area of the concessions that is available?
A. No
6. Are the LODs of the concession spaces available electronically?
A. Yes. To obtain a copy of the LODs electronically, please contact Wayne Sieloff at 734-247-7371 to obtain a copy.
7. Is a scale drawing of the entire Concourse B available?
A. No. However, an overall drawing of the Concourse B expansion is available. Please contact Wayne Sieloff at 734-247-7371 to obtain a copy.
8. In addition to the concessions that are currently on Concourse B and the two (2) locations in this RFP, is there any additional concession space planned at this time that will be added to Concourse B?
A. There are no plans at this time but the Authority reserves the right to add concession opportunities if and when warranted.
9. Are gross revenues by location available for the concessions in Concourse B & C? If not available by location, are they available by concourse by major category (i.e., by Food/Nonalcoholic Beverage, Alcohol, News/Gift and Specialty Retail)?
A. Attachment 1 of this addendum provides revenues by concourse by major category. See attached chart.
10. Does a Bookstore count as Specialty Retail?
A. A bookstore does not count as a specialty retail for the purposes of this proposal.
11. In the Irish Pub, may food that is greater than "bar snacks and appetizers" be served, subject to Authority approval, as long as its preparation does not include a grill and a fryer? (We would recommend that it does since a wider selection of food choices will lead to greater customer satisfaction and greater revenues for the Authority and the concessionaire).
A. The Proposal allows for a grill or a fryer as long as specifications for side venting are followed. However, the Proposal states that there is a food court nearby and the Proposer needs to keep that in mind when developing the menu. The Proposal also refers to bar food that is consistent with the concept; it does not limit it to appetizers or snacks. All menus are subject to Authority approval.
WAYNE COUNTY AIRPORT AUTHORITY REVISED Page 6 of 48
REQUEST FOR PROPOSALS SO4-054
1. Airport Enplanements
In 2002, the Airport was the 17th busiest in the world and 10th busiest in the nation, handling over 32.4 million passengers[1]. The Airport serves as a major connecting passenger hub in the route system of Northwest Airlines and its code share partners KLM-Royal Dutch Airlines (“KLM”), Continental Airlines, and Northwest Airlink flights operated by Mesaba Aviation and Pinnacle Airlines (both being commuter operators).
In Operating Year (“OY”) 2002, 16.21 million passengers were enplaned at the Airport. Total Airport enplanements are projected to increase at an average annual growth rate of 3.1% through 2008, according to the Authority’s financial consultant, Booz, Allen & Hamilton.[2]
*Forecast reflects current conditions.
Airline Market Share: In 2003, McNamara Terminal signature airlines (Northwest/KLM, Continental, and Northwest Airlink) accounted for 79.8% of total enplaned passengers at the Airport.
Airline / Total Enplanements / %Northwest* / 10,816,473 / 66.7%
Continental / 309,868 / 1.9%
Pinnacle / 893,555 / 5.5%
Mesaba / 1,039,742 / 6.4%
All Other / 3,297,282 / 19.5%
Total / 16,356,920 / 100.0%
*Northwest and KLM enplanement and market share figures are combined.
WAYNE COUNTY AIRPORT AUTHORITY REVISED Page 7 of 48
REQUEST FOR PROPOSALS SO4-054
Distribution of Passenger Traffic
Proposers are expected to review the data provided in Attachments B, C and D, which indicate the typical distribution of departing flights by hour, day of week and month, respectively, for Northwest and KLM combined.
International Passenger Traffic
A strong international passenger segment has led the growth in passenger traffic at the Airport. The number of international passenger enplanements at the Airport has steadily increased year over year with the exception of 2002 and 2003 when enplanements were adversely affected by the events of 9/11, SARS, and the Middle Eastern wars. The share of total enplanements attributed to international passengers increased from 4.7% in OY 1987 to 10% of total enplanements in OY 2001. Now, International traffic is steadily returning as indicated by the 1,305,680 passengers (8.0% of total enplanements) in OY 2003.
2. Overview of New McNamara Terminal Enplanements
The McNamara Terminal accommodates the majority of the passengers traveling through the Detroit Metro Airport serving all Northwest Airlines, KLM, Lufthansa, Continental, and Mesaba. Of the total 14.1 million projected McNamara enplanements in year 2005, 12.1 million (86%) are expected to be domestic and 2.0 million (14%) are expected to be international passengers. The McNamara Terminal is expected to continue to serve as a significant connecting hub for Northwest Airlines and its code share partners. Projected FY 2005 McNamara enplanements are provided below:
In the year 2005, approximately 28,000,000 total passengers (enplaning and deplaning) are expected to use the McNamara Terminal.1 Of this amount, approximately 50%, or 14.1 million are expected to be enplaning (departing) passengers.[2]
WAYNE COUNTY AIRPORT AUTHORITY REVISED Page 9 of 48
REQUEST FOR PROPOSALS SO4-054
HISTORICAL SALES DATA FOR CURRENT CONCESSIONS
Historical sales data for the existing Airport concessions program is provided below. It is important to keep in mind that there were significant limitations and constraints with the previous concessions program. That program was under-sized for the level of passenger traffic, resulting in overcrowding and missed opportunities. With greater square footage available, both gross sales and revenues to the Authority are expected to increase significantly at the new McNamara Terminal.
Total Airport Concession Sales
(2001, 2002, 2003)
2003 Actual McNamara Terminal Sales Data: 12 Months – (1/01/03 – 12/31/03)
Program / Sales / Sales/EnplanementMcNamara F&B / $40,329,980 / $3.08
McNamara Retail / $29,276,564 / $2.24
McNamara Duty Free * / $8,303,139 / $7.25
McNamara Enplanements - Total / 13,160,774
McNamara Enplanements – Int’l / 1,143,734
* Duty Free Sales/Enplanements are based McNamara International passengers only
ATTACHMENT 1
CONCOURSE B & C
Concession Revenues
ConcourseConcession / Annual Sales
2003 (CY) / Total Sales
2/24/02-12/31/03
I. Concourse B
Food & Beverage / $2,703,242 / $5,235,320
Retail / $1,000,422 / $1,944,080
Sub Total Concourse B / $3,703,664 / $7,179,400
II. Concourse C
Food & Beverage / $466,310 / $807,019
Retail / $1,103,026 / $1,946,582
Sub Total Concourse C / $1,569,336 / $2,753,601
Total B & C / $5,273,000 / $9,933,001
THIS ADDENDUM MUST BE ACKNOWLEDGED ON THE PROPOSAL FORM IN THE RFP
Addendum #1 Page 1 of 7
[1] Airport’s Council International, Worldwide Traffic Report
[2] Neither the Authority, Northwest Airlines, nor their consultants warrant that these enplanement projections will be met in the future.
[2]1 Neither the Authority, Northwest Airlines, nor their consultants warrant that these enplanement projections will be met in the future.
2 The primary market for concessions is enplaning (departing) passengers versus deplaning passengers. Enplanement projections include both connecting passengers and those originating in Detroit.