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Addendum

CITY OF DALLAS

Business Development & Procurement Services


www.bids.dallascityhall.org
1500 Marilla Street, Room 3FN
Dallas, Texas 75201-6390

Addendum No. 3
(RFP BT1101)

Date: 3.14.11

Request For Proposal Number: BT1101


Proposal Title: Develop, Operate, & Manage Food & Beverage Concessions
at Dallas Love Field Airport

Proposal Due Date and Time: The due date has changed from May 4th to May 18th at 2:00 p.m.

Love Field Food & Beverage and Retail Proposal Q&A


Note: Documents 13 through 13F are part of Addendum 3

Set 1

1. Is construction labor required to be union?


Answer: No

2. Will all questions asked be addressed in writing?


Answer: Yes. If you do not see your question addressed, please send email to
mario.alvarado@dallascityhall.com

3. Will respondents receive credit for MWBE if money is spent on capital improvement or
only counting operations side?
Answer: Pursuant to 49 CFR Part 23, the amount of utilization towards meeting MWBE
and ACDBE requirements is in operations only. Utilization of MWBE for construction is
encouraged and will be accounted for in the evaluation of meaningful participation criteria.

4. Will every public question be made public and answered?


Answer: Yes

5. Do you have a date set when questions will be answered?


Answer: Questions will be answered as quickly as possible and posted as Addendums on
the city’s procurement website, www.bids.dallascityhall.org .

6. Can you provide criteria for determining the value of the packages?
Answer: The criteria included several weighted factors, however the exact methodology is
part of the evaluation process and will not be released until recommendations for award
are given to the Dallas City Council.

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7. Food concepts are narrow in the RFP; will you open up consideration to have other
items?
Answer: The City has adopted a recommended merchandising program for the benefit of
the airport and its passengers. The City will consider variations to the plan if it is in the
best interest of the City. Please refer to Section IV, subsection E.

8. On retail packages there are six individual packages. Will the City consider combining
packages and will packages be contingent on other packages?
Answer: The packages will not be combined or changed for the remainder of this RFP.
Contingent proposals will not be considered. Proposers can submit on as many or as few
packages as they desire, but each package will be evaluated independently from each
other. The evaluation process will determine the most advantageous proposal for each
package separately.

9. Are there any estimates of current utility charges?


Answer: Concessions package is in the new building, there is no historical data.

10. Is it fair to say utilities will be stubbed to the location?


Answer: Yes. Utilities as well as communication connections will be available at or near
each package space, the proposer will be responsible for building out in the concession
space.

11. Does the incumbent(s) have to go through the proposal process?


Answer: The incumbents are not required to submit a proposal as part of the RFP
process, however any matching proposal as part of the Right of First Refusal process will
be required to submit all elements required in the RFP to verify it meets or exceeds the
most advantageous proposal.

12. If an interested party has exceptions, should the exceptions be submitted before the
proposal closes?
Answer: Please refer to Section V. subsection M. Please bear in mind that the minimum
requirements stated in the RFP have been established to provide fair and equitable
competition, and any deviation from those minimums must be agreed to in advance by the
City and apply to all proposers.

13. Am I correct when putting together a proposal, which I estimate to cost $15K—do I lose
it at the Right of First Refusal?
Answer: The City has made every effort to inform interested parties of the process being
used to evaluate and eventually recommend award of the Love Field Airport concessions
contracts and therefore, interested parties should submit their proposal(s) being fully
informed of the process. The City will bear no responsibility for the costs associated with
submitting a proposal whether it is awarded or not. As part of this RFP process the
incumbents will have a right of First Refusal for up to 27% of the respective concessions;
the incumbent has two options, one which is not required 1) submit a proposal in an effort
to achieve 27% through the proposal process or 2) the incumbent will be given the
opportunity through a lottery process to randomly select packages to select up to 27%. In
this process the incumbent must meet or exceed the most advantageous proposal. If a
package is drawn in the lottery and the incumbent meets or exceeds the most
advantageous proposal, the incumbent will be awarded the package.

14. I don’t see performance guarantee bond of 50% of the MAG? See Page 21
Performance Operational Standard.
Answer: The requirement for a performance guarantee is set forth in Section 3,
subsection K of the RFP

15. Will Quick Service Restaurant have a venting system?


Answer: No, the venting installation is the responsibility of the operator/proposer.
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16. Will the City give those who are not incumbents time to get all “our ducks in a row” for
the Lottery process?
Answer: The City will allow adequate time for all proposers to prepare and submit a
proposal. The schedules and deadlines will be posted on the City’s procurement website,
www.bids.dallascityhall.org ; any changes to the proposal will be posted and notified via the
addendum process. Interested parties are strongly encouraged to visit this website daily to
ensure they’ve obtained the latest information related to this proposal process.

17. If I take the value of the MAGs and divide it into that package will that result be for each
unit or package?
Answer: The criteria included several weighted factors, however the exact methodology is
part of the evaluation process and will not be released until recommendations for award
are given to the Dallas City Council.

18. Will criteria for each bid and evaluation be conducted before the lottery process or after
the lottery process?
Answer: Before the lottery process.

19. On right of 1st refusal, it appears this is right of last refusal—will this be more
appropriate?
Answer: It is a right of First Refusal; please refer to section II, page 15, and subsection J,
“Incumbent’s Right of First Refusal for details of this process.

20. Does the incumbent(s) have to bid through the lottery process for 27%?
Answer: Although the incumbents are permitted, the incumbents are not required to
submit a proposal under the RFP process to have a right of first refusal to acquire the right
to operate up to 27% of the overall value of the respective concessions in the new Airport
terminal building.

21. Do they have to bid over if the right of 1st refusal goes away?
Answer: The Dallas City Council has awarded the incumbents the right of first refusal and
although the incumbents are permitted, they are not required to submit a proposal; please
refer to section II, page 15, subsection J, “Incumbent’s Right of First Refusal for details of
this process. This aspect of the proposal requirements will not change. If the incumbents
submit proposals and are selected as the most advantageous proposers for a package, it
reduces the amount submitted to the lottery and the right of first refusal. If they do not
meet or exceed the proposal selected in the lottery under the right of first refusal, the
amount of the package is deducted from the 27% subject to the right of first refusal.

22. Can you clarify the number of packages any one proposer can win?
Answer: There is no limit to the number of packages any one proposer can be selected as
the most advantageous proposer. However, the incumbents still have the right of first
refusal to 27% if they meet or exceed the most advantageous proposal(s).

23. Cost of distribution of product; is this based on sales/square footage?


Answer: Since the costs for the central receiving facility has not yet been determined, the
cost distribution methodology has not been determined. However, the City will make the
cost distribution methodology available and it will be based on appropriate costs incurred
only for the concession activities it supports.

24. How can we see cost of distribution of product as an expense?


Answer: See answer to question #23

25. Minimum MAG for each package; how flexible is the City on lowering the minimum
MAGs?
Answer: The City has established what it believes are fair MAGs based on industry data,
future growth and activity of the airport, and accounting for inflation. Please note that many
of these values represent future dollars for a new terminal with heavy use. The City will not
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consider lowering the MAG.

26. If one is bidding on multiple packages do you bid separately on each package or can
you bid once or do you have different pages for each submission proposal?
Answer: Because we have a recommended merchandising plan with each package
requiring different requirements, a submission is required for each package.

27. Same for renderings for every space?


Answer: See answer to question #26

28. What is the process on Quick Service Restaurant percent? Is this a mistake?
Answer: The City has established what it believes are fair MAGs based on industry data,
future growth and activity of the airport, and accounting for inflation. It is not a mistake,
proposers are not required to propose on any package, if a proposer does not believe the
MAG is achievable, they should not bid. MAG’s proposed below the minimum will not be
considered.

29. Will you provide existing sales for the past two years? Will you provide sales
information related to all the areas?
Answer: Yes. Sales information will be posted as a separate addendum document.

30. Can you provide historical sales for the current spaces?
Answer: Yes. Sales information will be posted as a separate addendum document.

31. Is this a commissary or go to the dock to pick up items? or Will it be delivered to the
dock? or Do you have to go get the items?
Answer: The operation of the Central Receiving Facility has not been fully determined by
the City at this time. It is anticipated that deliveries from the Central Receiving Facility to
the loading dock in the terminal will be handled by a third-party operator. Concessionaires
will be responsible for their merchandise once it is delivered to the loading dock in the
terminal. Please note that the City reserves the right to modify the operations of
distribution services and the Central Receiving Facility at any time without notice or liability.

32. How will storage be allocated or is that something being proposed?


Answer: Storage space in the central facility will be allocated according to operation
areas. The central receiving facility is beginning the design phase and there will be some
opportunity for awarded concessionaires to have input into the design of the facility and the
allocation of space. It is anticipated that deliveries from the Central Receiving Facility to
the loading dock in the terminal will be handled by a third-party operator. Concessionaires
will be responsible for their merchandise once it is delivered to the loading dock in the
terminal. Please note that the City reserves the right to modify the operations of
distribution services and the Central Receiving Facility at any time without notice or liability

33. Will storage be on site?


Answer: There is some storage in terminal building not enough for operating.

34. Is that land side or air side?


Answer: The central receiving facility will be landside. Once designed, security
procedures will be established to move supplies through airside to the terminal.

35. Does new terminal have gas?


Answer: Yes

36. Clarify intent on retail spaces news/gifts are you looking for specific concept?
Answer: The greater specifics a proposal has in meeting the City’s goal of the theme
established, the greater the City will be able to evaluate that proposal and score it
accordingly.
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37. RFP states current square foot is 27K and it will increase by 70%, where is extra space
coming from?
Answer: Total area for food courts plus a public section. Area reserved for future
growth.

38. Is it anticipated that all current locations will go away or stay after 2015?
Answer: Yes, all current locations will be demolished as part of the modernization
program.

39. Can you share where the new gates will be for AA and Continental?
Answer: The 4 gates on the south side of the west wing of the terminal are designated for
American and Continental. See attached map showing the area. Gate assignments may
only be changed by the mutual agreement of the City and the affected airlines.

40. Will sign in sheets be posted prior to the questions?


Answer: Yes, they will be posted as an addendum on the City’s procurement website.

41. Can you clarify mid term refurbishment regarding units; there over 8 years, RFP states
they are $55 per unit?
Answer: Please refer to Page 20-21 of the RFP, Primary term will begin when the interim
term ends.

42. How many years would it be for the term in the proposal?
Answer: please refer to Section III, subsection B for terms.

43. Proposals due May 4th then what happens?


Answer: After proposals are submitted, they will go through a chain of custody, then each
proposer will be announced during a “public bid opening” process, thereafter, proposals will
be distributed to evaluating committee. The proposals will be scored and the most
advantageous proposers are determined. The lottery process will be conducted ( if
necessary), incumbents are given first right of refusal (if necessary), incumbent proposals
are evaluated as part of first right of refusal(if necessary), recommendations are made to
Dallas City Council, and City Council makes award.

44. After process, will it go back to City Council for approval?


Answer: Please refer to answer to question #43 in set 1 questions.

45. On lottery aspect at which point do you know what process is for your spot?
Answer: The final lottery process will be posted as an addendum on the City’s
procurement website.

46. Can you define who the incumbent/s are? Will it be made public? What happens if
incumbent changes in the process?
Answer: The incumbents are defined as the entities that have the current concession
contracts. It is public information. If any of the incumbent members propose as part of
another entity, that entity has no right of first refusal. The City will post the incumbent
contracts as part of this addendum.

47. If the current concessionaire wins and incumbent is awarded then what?
Answer: No concessionaire has won anything prior to final award by the Dallas City
Council. All aspects before that are considered negotiations on the part of the City to
achieve the most advantageous proposal for the City.

48. Any thought given to awarding 27% to incumbents now?


Answer: No, the City has established a criteria and subsequent solicitation process to
promote a competitive environment and at this point does not intend to change this
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process.

49. What if the incumbent decides to partner with someone and uses their 27%, can this
add another 27%?
Answer: Any and all other proposers will be evaluated equally according to the criteria.
The right of first refusal of up to 27% is available only to the current incumbents as their
current business structure.

50. Will the actual lottery be held in a public forum?


Answer: Yes

51. Clarify, will incumbents have to bid? How do you evaluate their concept that you use to
evaluate?
Answer: Please refer to answers to questions#11, 20 & 21 in set 1 questions..

52. Can you comment on how the Lottery system will work?
Answer: Please see answer to question #45 above.

Set 2

1. If square footage allows, can bidders propose two different snack options (co-brand) for
the various snack opportunities being offered?
Answer: As stated in (pg. 29) Section IV, subsection E of the RFP, respondents may propose
alternative uses for any one or more of the offered locations for consideration by the
Evaluation Committee. The City reserves the right to select any such alternative use if such
selection is deemed to be in the City’s best interest.

2. Will there be gas available in the new terminal for food and beverage concessions?
Answer: Yes

3. Can senior management provide the required experience requirement rather than
ownership alone?
Answer: The evaluation criteria allows for experience to be submitted in the form of senior
management, partnerships, joint ventures, and existing firms.

4. Must the 3 years of restaurant operations be as of the date of the submittal of the RFP or
prior to the date of opening?
Answer: Respondent experience used to meet the minimum requirements of the RFP must
have been achieved as of the Due Date of the RFP.

5. May we receive a copy of the final details of the agreement with prior concessionaires?
Answer: The requested information will be posted as an additional addendum document.

Set 3

1. Has city estimated pricing for employee parking?


Answer: Currently employee parking is $30.00 per month per employee. and the rate is
established by City ordinance and fees are set based on industry surveys. Employee
parking for concessionaires, with activities within the terminal, will be surface parking
behind the new ticketing wing and adjacent to the terminal (not in the parking garages).

2. Given increase in traffic is projected at 32%, Concession space is increasing 72%,


shouldn't one assume some decrease in sales per sq. ft.; how does city rationalize it's
numbers.
Answer: The City anticipates a substantial increase in concession sales due to a number of
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factors including, but not limited to, an increase in concessions program area to be more
consistent with industry standards, a wider variety of retail and food service options, and an
anticipated increase in passenger enplanements following elimination of all Wright
Amendment restrictions in October 2014. Due to planned enhancements to the
concession program – including the award of concession contracts under this RFP - the
City anticipates that concession sales will increase at a rate in excess of either the rate of
increase in passenger enplanements or concessions area.

3. Quite frankly, process is heavily weighted toward incumbent(s).


Why not allow them to pick locations and award them spots up front. Remaining parties
would then know available sites and bid accordingly. As it is now, incumbents can outbid
new entrees. If so, will part of his/her increase be used to reimburse losing party?
Answer: The process for awarding space to the incumbents will fall within the parameters set
by the City. The goal of the RFP process is to establish a competitive environment and to
determine the most competitive and advantageous proposal to the City. Incumbents are
not guaranteed any space, as they have to meet or exceed any most advantageous
proposal as part of their right of first refusal. The City has made every effort to inform
interested parties of the process being used to evaluate and eventually recommend award
of the Love Field Airport concessions contracts and therefore, interested parties should
submit their proposal(s) being fully informed of the process. The City will bear no
responsibility for the costs associated with submitting a proposal whether it is awarded or
not.

4. Does the City have a charge for concessionaire employee parking and if so, what is it?
Answer: Please refer to answer to question # 1 (set 3 questions).

5. How does the City project that enplanements will increase by approximately 32%
between 2010 (3,998,271) and 2015 (5,261,000) when utilizing the same number of total
gates and with Southwest being one of the industry leaders in on-time scheduling? (RFP
Page 7)
Answer: The enplanement projection for 2015 was prepared by the City, Southwest Airlines,
and consultants as part of the LFMP planning and is based upon numerous factors
including, but not limited to, population and demographic characteristics of the Dallas
metropolitan area, national economic conditions, airport capacity, and the anticipated effect
of the elimination of remaining Wright Amendment restrictions in October 2014. The City
does not guarantee that the projected level of enplanements will be achieved at the airport
and is not liable should the projected level of enplanements fail to occur.

6. If enplanements are projected to increase 32% between 2010 and 2015 and Food and
Beverage Concessions will be increasing by 70% in size, will sales/square foot be
expected to decrease?
Answer: (RFP Page 7) Refer to question 2 response above (set 3 questions).

7. Where will the assigned Support Space be located?


Answer: Limited storage space will be located on the apron level of the new concourse.
Additional storage space will be available in the Central Receiving Facility. The distribution
of space is not know at this time and will depend on how many concessionaires are
selected and their various brand requirements. Space needs will be discussed as part of
the final negotiations with the selected concessionaire. There will be adequate space for
needs within the Central receiving facility.

8. Since the RFP Issue Date was delayed, will the RFP Due Date be adjusted
accordingly?
Answer: (RFP Page 10) The RFP due date will be revised from May 4th to May 18th.

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9. How is the term “similar” defined as it relates to experience in the food and beverage
industry? In other words, if we have had long term successful experience in the casual
dining industry, but it is in a Seafood concept, and we bid on a casual Tex-Mex concept or
a QSR Seafood food concept, will we be considered to have experience?
Answer: The Evaluation Committees, established in accordance with Section II(H) of the
RFP, will determine whether a respondent meets the minimum qualification standards of
the RFP. For food and beverage experience, “similarity” generally applies to the service
style of previous experience, although other factors such as number of establishments and
overall scope of business will also be considered by the Committee.

10. What percentage values have been assigned to each of the different food and
beverage concession Packages of which the incumbent is guaranteed 27%?
Answer: (RFP Page 16) Neither the methodology nor the values assigned to the packages
will be released. The City along with its consultant used weighted criteria of several factors
to assign values to each of the packages. The values were established specifically for the
implementation of the Right of First Refusal. The actual values for all packages, which
incumbents must match if selected through the Right of First Refusal process, will be
established through the request for proposal process.

11. The incumbent is offered the “First Right of Refusal” in selecting up to 27% of the value
of the Packages so as the “First Right of Refusal” term implies, shouldn’t the incumbent
select his Packages “first” and then identify which Packages are unavailable rather than
using a “Last Right of Refusal” lottery system?
Answer: The right of first refusal requires the incumbent meet or exceed the most
advantageous proposal(s) up to 27% of the total value only if they are not selected as a
winning proposal on any package by their own submittal. The incumbent has the right to
meet or exceed the package proposals under the lottery and only if they decline or do not
meet or exceed the most advantageous proposal, then the package will be awarded to the
original proposal submitter.

12. Since the incumbent has a guaranteed opportunity on 27% of the value of the
packages, even those that he does not win outright, will the City reimburse the bidders for
the cost of creating Proposals wherein the incumbent can outbid by utilizing the lottery
system?
Answer: Please refer to answer to question #3 (set 3 questions).

13. How much will the Food Court Janitorial Service Fee be calculated/square foot of
space?
Answer: Food court janitorial costs have not been determined at this time.

14. How much is the Central Receiving Fee?


Answer: The fee for central receiving services has not been determined at this time.

15. Why is there no markup over Street price allowed?


Answer: The City has decided as a service to its customers that competitive affordable pricing
is critical in continuing to drive use and enjoyment of Dallas Love Field.

16. Some of the Food and Beverage Concession Packages are labeled as “Branded”,
please define Branded?
Answer: “Branded” means a generally recognized, single merchandise or food service
concept with multiple locations operating under a common trade name and generally
consistent trade dress, operating standards, advertising, and merchandise mix or menu. In
addition, branded concepts are usually controlled by a single entity and operated by
franchisees, licensees, or directly by the controlling entity.

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17. Since there is a precedent to have two concepts within one location (Package #1), can
two different, but complimentary concepts be located within Package #4?
Answer: The packaging of concessions locations was developed by the City to create the
best value for the City in consideration of expected sales, tenant investment, operating
costs, and other factors. The composition of the packages will not be modified at this time.
However, as stated in (pg. 29) Section E of the RFP, respondents may propose alternative
uses for any one or more of the offered locations for consideration by the Evaluation
Committee. The City reserves the right to select any such alternative use if such selection
is deemed to be in the City’s best interest.

18. Why does Package #2 have a very good prime location combined w/ 2 non-prime
locations when Package #3 , which has a similar prime location, not have any other
locations combined w/ it? Can you take one of the non-prime locations in Package #2 and
combine it w/ Package #3?
Answer: Please refer to response to question 17 above (set 3 questions).

19. Why is Package #3, which is a prime location in terms of size and proximity to gates
show a lower Minimal Annual Guarantee than the much smaller and less prime Packages
#9 - #12?
Answer: Minimum acceptable MAGs were established by the City for each location and
package in consideration of expected sales, tenant investment, operating costs, and other
factors.

20. When will TABC deliver an opinion on whether the “food court” Packages (#9-#14) can
offer beer and wine?
Answer: The City has not asked TABC for an opinion on the sale of alcoholic beverages at
food court locations as it is not anticipated that alcohol will be served in the food courts.
However, if a respondent can demonstrate that it meets all criteria specified by TABC in
order to obtain a license, and the sale of alcoholic beverages is germane to the proposed
concept, then the inclusion of beer and/or wine sales within the food court area would be
considered by the City.

21. Attachment D, “Terminal Floor Plans”, indicates that ‘Locations, concepts and areas are
subject to change.”, is it possible that as an example Package #3, which is identified as
Traditional Tex-Mex can be available for other concepts?
Answer: The City has determined a merchandising plan for the concessions program that it
believes will best meet the City’s goals. Insomuch as the terminal is not yet constructed,
the locations and areas of the offered concession spaces may change during construction.
Moreover, the City also reserves the right to modify, at its discretion, the merchandising of
any space in the concessions program if such modification is deemed to be in the City’s
best interest. As stated in Section E of the RFP, respondents may also propose alternative
uses for any one or more of the offered locations for consideration by the Evaluation
Committee. The City reserves the right to select any such alternative use if such selection
is deemed to be in the City’s best interest.

22. Will the Food and Beverage Concessions have gas for cooking?
Answer: Yes

23. If we are awarded a Package and our ownership structure is a Limited Liability
Company (LLC), can we later create a Limited Partnership w/ our LLC being the General
Partner wherein the LLC would have full control and transfer ownership?
Answer: Assignment and change of ownership will be governed by Section 18 (pg. 34) of the
Form Contract (Attachment A to the RFP).

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24. What part of the terminal will the gates be for American, Continental and/or other
airline(s)?
Answer: The 4 gates on the south side of the west wing of the terminal are designated for
American and Continental. See attached map showing the area. Gate assignments may
only be changed by the mutual agreement of the City and the affected airlines.

25. The incumbent has a guaranteed opportunity on 27% of the value of the packages. I
would like to know how the 27% is calculated. If it is based on the MAG, I’ve noticed that
all of the packages that are determined to sell alcohol conveniently total 27%. Could you
address this please?
Answer: Please refer to response to question 10 above (set 3 questions).

26. I don’t understand why the location in package #2 on the wing is not equally valued
with its mirror location in package #3. I understand that it is packaged with two other
locations of lesser value. Can’t each space be valued separately, then given a total value
MAG.
Answer: Please refer to response to question 17 above (set 3 questions).

27. What is the charge for concessionaire employee parking and where will it be located?
Answer: Please refer to response to question 1 above (set 3 questions).

28. Where will the assigned Storage/Support Space be located? What will be the delivery
charges?
Answer: Please refer to response to questions 7 and 14 above (set 3 questions).

29. The RFP Issue Date was delayed. Will the RFP Proposal Due Date be adjusted?
Answer: Please refer to response to question 8 above (set 3 questions).

30. What is meant by the term “similar” as it relates to experience in the restaurant industry? If
our group as a whole has long term documented experience in various areas of the
industry and we bid with a concept as a Joint Venture or Franchise that we have no current
experience with, will we still be considered to have experience?

Answer: See response to question 9 above.

31. How does the City project a 32% increase in enplanements in 2010 (3,998,271) to the
estimate in 2015 (5,261,000)? Are the new 737 models that Southwest will be using
driving these numbers? Will American and Continental be using larger planes?

Answer: Please refer to response to question 2 above (set 3 questions). The type of aircraft
that any operator might use is unknown by the City and is at the discretion of the operator.

32. If enplanements are projected to increase 32% between 2010 and 2015, how can sales
per square foot be expected to increase when the total concession space has doubled?
Answer: Please refer to response to question 2 above (set 3 questions).

33. If the incumbent truly has the right of first refusal to choose up to 27% of the “value” of the
packages, why hasn’t the incumbent already selected those packages? As investors, we are
wasting our money developing packages for bids that the incumbent has already been
awarded.
Answer: Please refer to response to questions 3 & 11 above (set 3 questions).

34. Why is there no 10 to 20% markup over Street pricing?


Answer: Please refer to response to question 15 above (set 3 questions).

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35. I have two strong concepts that could fit in the central location. Can two different concepts
be located within Package #1 or #4?
Answer: Please refer to response to questions 17 & 21 above (set 3 questions).

36. Will TABC allow “food court” Packages (#9-#14) to offer beer and wine?
Answer: Please refer to response to question 20 above (set 3 questions).

37. Where will the gates be for American, Continental and/or other airline(s) be located?
Drawings show West wing. Can we definitely define at this time?
Answer: See response to question 24 above.

38. Attachment D, “Terminal Floor Plans”, indicates that ‘Locations, concepts and areas are
subject to change.”, is it possible for any of these defined spaces to be changed? Example:
Package #3 is identified as Traditional Tex-Mex. Can it be made available for other concepts?
Answer: Please refer to response to question 21 above (set 3 questions).

39. Will gas be available for cooking equipment? I have a local concept that would like to do a
Joint Venture in Love Field, but one of their requirements is for gas equipment. I understand
that DFW is adding gas to their terminals as they move forward with remodels starting with
Terminal A.
Answer: Yes

40. Does the City have a charge for concessionaire worker parking and if so, what is it?
Answer: Please refer to response to question 1 above (set 3 questions).

41. How does the City project that enplanements will increase by approximately 32% between
2010 (3,998,271) and 2015 (5,261,000) when utilizing the same number of total gates and with
Southwest being one of the industry leaders in on-time scheduling? (RFP Page 7)
Answer: Please refer to response to question 2 above (set 3 questions).

42. If enplanements are projected to increase 32% between 2010 and 2015 and Food and
Beverage Concessions will be increasing by 70% in size, will sales/square foot be expected to
decrease?
Answer: Please refer to response to question 2 above (set 3 questions).

43. Where will the assigned Support Space be located at?


Answer: Please refer to response to question 7 above (set 3 questions).

44. Since the RFP Issue Date was delayed, will the RFP Due Date be adjusted for that
reason?
Answer: Please refer to response to question 8 above (set 3 questions).

45. How is the term “comparable” defined as it relates to experience in the food and beverage
industry? In other words, if we have had long term successful experience in the casual dining
industry, but it is in a Seafood concept, and we bid on a causal Tex-Mex concept or a QSR
Seafood food concept, will we be considered to have experience?
Answer: Please refer to response to question 9 above (set 3 questions).

46. What percentage values have been assigned to each of the different food and beverage
concession Packages of which the incumbent is guaranteed 27%?
Answer: Please refer to response to question 10 above (set 3 questions).

47. The incumbent is offered the “First Right of Refusal” in selecting up to 27% of the value of
the Packages so as the “First Right of Refusal” term implies, shouldn’t the incumbent select his
Packages “first” and then identify which Packages are unavailable rather than using a “Last
Right of Refusal” lottery system?
Answer: Please refer to response to questions 3 &11 above (set 3 questions).

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48. Since the incumbent has a guaranteed opportunity on 27% of the value of the packages,
even those that he does not win outright, will the City reimburse the bidders for the cost of
creating Proposals wherein the incumbent can outbid by utilizing the lottery system?
Answer: Please refer to response to question 3 above (set 3 questions).

49. How much will the Food Court Janitorial Service Fee be calculated/square foot of space?
Answer: Please refer to response to question 13 above (set 3 questions).

50. How much is the Central Receiving Fee


Answer: Please refer to response to question 14 above (set 3 questions).

51. Why is there no markup over Street price allowed?


Answer: Please refer to response to question 15 above (set 3 questions).

52. Some of the Food and Beverage Concession Packages are labeled as “Branded”, please
define Branded?
Answer: Please refer to response to question 16 above (set 3 questions).

53. Since there is a precedent to have two concepts within one location (Package #1), can two
different, but complimentary concepts be located within Package #4?
Answer: Please refer to response to question 17 above (set 3 questions).

54. Why does Package #2 have a very good prime location combined w/ 2 non-prime locations
when Package #3 , which has a similar prime location, not have any other locations combined
w/ it? Can you take one of the non-prime locations in Package #2 and combine it w/ Package
#3?
Answer: Please refer to response to question 19 above (set 3 questions).

55. Why is Package #3, which is a prime location in terms of size and proximity to gates show
a lower Minimal Annual Guarantee than the much smaller and less prime Packages #9 - #12?
Answer: Please refer to response to question 19 above (set 3 questions).

56. When will TABC deliver an opinion on whether the “food court” Packages (#9-#14) can
offer beer and wine?
Answer: Please refer to response to question 20 above (set 3 questions).

57. Attachment D, “Terminal Floor Plans”, indicates that ‘Locations, concepts and areas are
subject to change.”, is it possible that as an example Package #3, which is identified as
Traditional Tex-Mex can be available for other concepts?
Answer: Please refer to response to question 21 above (set 3 questions).

58. Will the Food and Beverage Concessions have gas for cooking?
Answer: Yes.

59. If we are awarded a Package and our ownership structure is a Limited Liability Company
(LLC), can we later create a Limited Partnership w/ our LLC being the General Partner wherein
the LLC would have full control and transfer ownership?
Answer: Please refer to response to question 23 above (set 3 questions).

60. What part of the terminal will the gates be for American, Continental and/or other airline(s)?
Answer: Please refer to response to question 24 above (set 3 questions).

61. Since the RFP Issue Date was delayed, is there any chance that the RFP Due Date be
adjusted accordingly?
Answer: Please refer to response to question 8 above (set 3 questions).

62. How is the value determined in regard to the 27% that is guaranteed to the incumbent?
Answer: Please refer to the request for proposal specification, page 15, subsection J
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“Incumbents Right of First Refusal”.

63. Is there a preliminary estimate of the Central Receiving Fee?


Answer: Please refer to response to question 14 above (set 3 questions).

64. Is there a preliminary estimate of the Janitorial charges for the food court area?
Answer: Please refer to response to question 13 above (set 3 questions).

65. Is there a charge for employee parking and if so is there a preliminary estimate of the cost?
Answer: Please refer to response to question 1 above (set 3 questions).

66. The MAG calculation for Package 2 on a square footage basis looks extremely low. It is
understood that there is a mix of prime locations with non-prime locations included in that
package but the value of what I would consider to be more prime locations (the spaces inside
security) is not reflected in the low MAG for the spaces combined. If the incumbent is awarded
his 27% based on this low MAG it will not accurately reflect the value of the spaces thus giving
him more than 27% of the value.
Answer: The determination of minimum acceptable MAG and value for purposes of the
incumbent’s Right of First Refusal are based on different factors. MAG is not part of the
determination of value.

67. In the RFP, it states that you would like to see 3 references from landlords with
regards to concession operations. My question is: If we only have two, should we stop the
RFP process, since we don’t meet the minimum requirement here?

Answer: The minimums have been stipulated in the RFP, however proposers not meeting
the minimum on a certain category may demonstrate substantially similar qualifications.

68. Would there be a conflict of interest to use the architect that has produced the design
guidelines for the Dallas Love Field Airport to help with preparing our design work and
build‐out design/construction?

Answer: Yes.

69. Are there shared tenant services for telecommunication/data networking? For example,
centralized intra‐terminal and inter‐terminal fiber optic backbone infrastructure available for
tenant use. If so what are the specifications and terms?

Answer: These have not been finalized, however adequate telecommunications access
will be provided at locations throughout the terminal.

70. What are the specifications/regulations regarding telecommunications/data network


cabling?

Answer: These have not been finalized, however adequate telecommunications access
will be provided at locations throughout the terminal.

71. What are the specifications/regulations regarding tenant wireless solutions such as dish
antennas and wireless access points?

Answer: These have not been finalized, however adequate telecommunications access
will be provided at locations throughout the terminal.

72. Are there schematics of the network pathways (available cable trays,
telecommunication closets, horizontal and vertical raceways) available for tenant use?

Answer: Not as of this date.

73. In the electronic copies of the proposals, can we include videos?


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Answer: Yes

74. Are all kiosks (in specific C2452 & C2653) required to supply their own independent
electric metering?

Answer: No

75. Are concessionaires permitted to bid packages contingent upon winning other
packages?

Answer: No, contingent proposals will not be considered.

76. Please provide historical revenues by concept so bidders can understand demographic
base. Please provide monthly revenues for at least one historical year so bidders can
understand seasonality of location.

Answer: Current revenues will be posted as a separate addendum document.

77. How many gates are currently in use at existing terminal in which the airport has 3.998
MM enplanements? Please provide detailed explanation for how airport arrived at
enplanement estimate of 5.261 MM in 2015.

Answer: There are current 19 gates in operation. The enplanement estimate has been
determined through the input of several factors including the City’s consultant and the
airlines based on current activity and estimated activity.

78. Please provide an estimate of utility charges currently incurred at existing terminal so
bidders can understand magnitude of expenses to expect.

Answer: All facilities have not been constructed, there is no estimate of utility costs.

79. Please provide further details and estimates regarding the center receiving facility.
What will be used as the baseline to determine allocations to the various concessionaires?
Also, please describe how this process will work.

Answer: This facility is currently under design. Successful proposers will have input into
the final design of the facility. The final configuration has not been determined.

80. How much space is available on‐terminal for storage/commissary and how will that
space be allocated between the various packages? Does the airport anticipate not
having enough storage/commissary space within the terminal to satisfy all
concessionaires? Does the airport anticipate concessionaires needing to secure
additional off‐terminal space?
Answer: The City is constructing a central receiving facility which will have adequate
storage. The storage space will be available in this facility. There will be limited
storage in the terminal. Please refer to Set 3 question 7 response.

81. The RFP states that the interim term will begin after the 20th passenger boarding gate
is usable for commercial service. Please clarify if this means “usable” or “in‐use” by an
airline.
Answer: Please refer to the RFP, page 20, subsection C, the primary term begins at this
point, not the interim term.

82. Can proposers get access to ACAD drawings of the spaces?


Answer: The RFP included drawings of each space. More detailed drawings inclusive of
mechanical, electrical, and plumbing design will be available to after the most
advantageous proposer is determined. All utilities necessary will be readily available at
each location according to the defined merchandising plan.

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83. Will the tenant be responsible for both design and build‐out costs of shared seating
areas in proposed Food courts? If so, how will this be sub‐divided between the 6
tenants sharing the Food Court seating?
Answer: No

84. Is it true that the finalist on any given RFP will be randomly drawn as in a lottery? Not
considering experience and years in business, etc?
Answer: No. The City will determine the most advantageous proposal for each package.

85. Are shoeshine services part of this RFP? When does the current shoeshine operator
contract expire?
Answer: Shoe shine services are not part of this RFP process. The primary term of the
current shoe shine contract expires 1/31/2012. There are three (3) one year extension
options beyond 1/31/2012.

If you have any further questions, please contract Mario Alvarado directly at
214.243.2127.

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