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Membership Sales and Operations of “Latitude” Lounge at DFW AirportPre-Proposal ConferenceApril 8, 2019

Membership Sales and Operations of “Latitude” Lounge at DFW Airport

Pre-Proposal Conference Agenda

Project Overview

• Megan Bozarth, AVP Customer Experience

ACDBE Requirements

• Tamela Lee, Business Diversity and Development

Risk Management: Insurance Requirements

• Mark Young, Risk Analyst

Procurement Overview / Timing

• Suzanne DeVasher, Sr. Contract Administrator

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Project Overview

Megan BozarthAVP Customer Experience

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Click to add textClick to add text

Click to add textTravel. Transformed.

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Mission

We provide an exceptional

airport experience for our

customers and connect our

community to the world.

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

9

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Current Situation

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Customer Experience Framework

11 Radius Customer Experience Insights, February 2019

Customer Experience can be understood as the sum total of customers’ responses to the realities of

the Airport Environment. These responses are driven by customers’ underlying needs inside of the

Airport.

Realities

Touchpoints of the

experience that

customers interact with

Core Needs

Underlying Needs

from Experience

Act as a filter that

affects response

Responses

What customers think

and feel because of

the realities and their

needs

Decisions/Actions

Thoughts/Feelings

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

12 Radius Customer Experience Insights, February 2019

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Insights: Core Needs and Responses

13

Customers thoughts and actions

are dominated by self-perpetuating

negative feelings like stress,

frustration, and anxiety.

Radius Customer Experience Insights, February 2019

The air travel process can lead to

an environment defined by a

series of barriers and obstacles to

get through, rather than the unique

value that could be fundamental to

a meaningful experience.

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Existing Lounges

Airline Specific Lounges

• American Airlines Admirals Club A24, B3, C20, E22 (Coming

Soon)

• American Airlines Premium Lounge D36

• American Airlines Flagship Lounge D23 (Coming Soon)

• Delta Sky Club E10

• The United Club E6

Shared Airline Lounge

• International Lounges (Korean, Lufthansa, etc.) D22

Independent Lounges

• The Centurion Lounge D12

• The Club at DFW D25

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Lounge Overcrowding

Available to:

• Non-coach cabin passengers

• Airline premium passengers

• Credit card members

• Third party club purchases

• Day passes

Introducing a new airport lounge concept

- a club not associated with an airline or credit card –

located in Terminal D at DFW International Airport.

At 9000 square feet and reservations required,

the space provides guests entry into a serene and spacious club where

guests can stretch out, relax and refresh before a flight, or on a layover.

Staff will welcome guests with genuine Texas hospitality,

with the aim of truly taking care of you.

No request is too big or too small.

DALLAS FORT WORTH

INTERNATIONAL AIRPORT

LOUNGE CONCEPT

+ Reservations required

+ Serene and spacious

+ 9000 sq feet

+ Relax and refresh

+ Not associated with airline or credit cardLounge Market Research, April, 2018

Latitude Lounge

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

As part of the development of a new, world-class

lounge in Terminal D (i.e., the international terminal),

Dallas/Fort Worth International Airport Board (DFW)

is seeking a highly collaborative partner to operate

the lounge at the highest standard of service and

provide a truly differentiated experience.

• Accessible to members only

• Reservations required to ensure no overcrowding

• 9,000 square feet

• Maximum occupancy <100 guests at one time

Latitude Lounge

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

ENTRY

LOUNGE

PRIVATE SUITE

SPA

CORRIDOR

RESTING PODS

INFORMAL DINING

BAR

FORMAL DINING

Lounge Operator Scope of Work

Meeting Name & Date (Optional)29

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

DFW Airport Responsibilities:

DFW will hire the general manager, assistant manager, and the concierge positions. These positions

will be DFW Board employees. These positions will office and be present daily in the lounge. The

general manager and assistant managers will be responsible for overseeing the lounge operator

contract and the overall operation of the entire lounge and its guests.

DFW is also responsible for:

• Naming rights and branding of Lounge

• Design and construction of lounge

• All furniture, fixtures and equipment (FF&E)

• Online reservation system

• Repairs and maintenance related to the structural integrity of the lounge, PAVE, fire alarm, fire

suppression, fire extinguishers

• Utilities, Real estate insurance, Rent

• Infrastructure technology

• Furnishings and art

• Final selection of proposed food and beverage

• Kitchen and major appliances

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Lounge Operator Responsibilities:

The Lounge Operator will be responsible for:

• All labor to operate food and beverage and the spa / showers

• Materials, custodial, and maintenance (preventative, routine, repair)

• Staffing responsibilities (prescreening, hiring, training, benefits, administrative matters)

• Appointing a Kitchen Manager / Chef de Cuisine

• Customer Service

• Maintain all minimum service requirements

Service levels are expected to be on par with that of a world-class, luxury hotel / lounge

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Memberships and Sales Scope of Work

32

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

The Membership and Sales Team will be responsible for the following:

• Develop and implement a sales and marketing strategy to reach DFW’s revenue and membership

goals.

• Define and implement sales strategy and tactics to approach, pitch and target customers.

• Identify and secure potential clients for personal and/or corporate memberships for the lounge.

• Provide data and analytics to DFW Staff to determine the best sales and membership models.

• Create and maintain positive client service touchpoints to expand and extend relationships.

• Create innovative ways to increase customers that achieve DFW objectives for usage of the lounge and

revenue targets.

• Hire and train sales personnel to understand the unique offerings of the DFW Lounge.

• Develop and maintain a database to capture sales records, sales meetings, sales calls, new sales,

closed sales, follow-up activities, etc.

• Provide marketing collateral for review and approval as required by DFW Airport staff.

• Provide a virtual office for sales team.

• Develop digital sales platforms to process memberships, including initiation fees and/or dues.

ACDBE Requirements

Tamela LeeBusiness Diversity and Development

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Tamela Lee

Vice President of Business Diversity and Development

Airport Concessions Disadvantaged Business Enterprise (ACDBE) Program

Airport ConcessionsEnterpriseDisadvantaged (ACDBE) ProgramOverview• ACDBE Program required by Federal Regulation

• Objective: Ensure full and fair access to concession opportunities for all

business and in particular for ACDBE business

• Valuable consideration in the awarding of a Concession Agreement

• ACDBE requirement is pass/fail and must be met for a proposal to be reviewed and

considered by the selection committee

• Responsive – Proposal compliant with

requirements; further consideration by

Selection Committee

• Non-Responsive – Proposal fails to meet

the requirements; no further consideration

by the Selection Committee

Airport Concession Business Enterprise Program

36

Lounge Concession Services

Contract-specific goals are be based on scope

of work, location of work, and availability of

certified firms for the scope of work15% MBE Goal

TYPES OF SERVICES:

Airport Concessions Disadvantaged Enterprise(ACDBE) Program

• The ACDBE goal for this solicitation is a percentage of purchases for goods and services.

• Option for typically meeting an ACDBE goal:

• 100% ACDBE owner-equity participation

• Percentage Owner-Equity Participation by way of asublease, management, operating, franchise or jointventure agreement or partnerships

• Percentage of total purchases for all good andservices awarded to ACDBE certified firms

• Other legal arrangement

ACDBE Program

• Concessions

• Hotel Services

• Car Rentals

• Other Goods and

Services

Key ACDBE Program Points

38

Certification

ACDBE certificates are due at

time of bid/proposal

submission

Relevant Market Area

No Local Geographic

Preference

Pass/Fail

Proposals failing to meet the

requirements receive no further

consideration by the Selection

Committee

Good Faith

Efforts

Stringent documentation

requirements due at time of

bid/proposal submission

Contract-

Specific Goals

A percentage of contract value;

prime self-performance counts

towards goal

ACDBE Certif ication

39

Certification not required to do business with DFW.

HOWEVER, if claiming ACDBE credit, certification is required

State of TX HUB, SBE, WBE, DBE and out-of-state certificates are not acceptable

!

Certificates due at

time of

submission

Certificates must

state ACDBE

Commodity codes

must be relevant to

scope of work

Commitment to ACDBE

Participation Form

Identify commitment

to meeting and/or

exceeding the

ACDBE Goal

Sample Certificate

Does certification match

Program goal?

Do the commodity codes

cover your proposed scope

of work?

Good Faith Efforts (GFE)

42

Requirements

• Non-certified firms must meet the goal or demonstrate GFE to achieve goal

• GFE required only if the ACDBE goal is not met or only partially achieved

• GFE should not be considered a template, checklist or quantitative formula

• DFW will evaluate the GFE on quality, quantity, and intensity of the different kinds

of efforts that the bidder/proposer made prior to proposal submission

All factors outlined and support documentation are required

Lack of support documentation will deem the Proposer non-responsive

Pro forma efforts are not considered good faith efforts

!

Approved Certifying Entit ies

43

NORTH CENTRAL TX REGIONAL

CERTIFICATION AGENCY 624 Six Flags Drive, Suite 100

Arlington, TX 76011

(817) 640-0606 or www.nctrca.org(Processing timeframe: 60 – 90)

U.S. Department of Transportation

(Approved Unified Certification

Program)125 E. 11th Street

Austin, TX 78701

(800) 558-9368 or www.txdot.gov(Processing timeframe: 60-90 days)

DFW D/S/M/WBE Online Directory

www.dfw.diversitysoftware.com

Federal Aviation Administration DBE/ACDBE

Directory (dbE-Connect)

https://faa/dbesystem.com/FrontEnd/VendorSearchPublic.asp?TN=faa&XID=4059

Identifying Prospective MBE Partners

44

DFW’s Directory is not a ‘certification database’.

It is a listing of certified firms that have

expressed an interest in doing business with

DFW or are currently doing business with DFW

!

• Pre-Bid/Pre-Proposal Sign In Sheet

• Minority Chambers

• Advocacy Organizations

• Certification Agencies

Non-Compliance with ACDBE Program

45

The DFW Board may exercise any of following remedies:

*These remedies are in addition to any other remedies available to the Board under this Contract or at law or in equity

WITHHOLDING FUNDS payable under this

Contract, including, but not

limited to, funds payable

for work self-performed by

the Contractor or

applicable retainage

TEMPORARILY

SUSPENDINGat no cost to DFW,

Contractor’s performance

under the Agreement /

Contract

TERMINATION OF

THE AGREEMENT/

CONTRACT

SUSPENSION/

DEBARMENTin accordance with

applicable law, of the

Contractor from

participating in any

solicitations issued by

DFW for severity of breach

of Contract

A DCB

Common Submission Errors

46

• Submit Out of State certificates. Must receive interstate certification with

NCTRCA

• Use GFE plan as a checklist and fail to submit support documentation

DO

DO

NO

T• Sign all required documents

• Submit required/correct ACDBE certificates for all identified ACDBE firms

• Respond to all RFP Evaluation Criteria questions

• Provide certificates for all identified ACDBEs

Contact Information

48

Danielle Thompson

ACDBE, DBE & TRIP Program

972-973-5504

dthompson@dfwairport.com

Cheryll Jeter

MBE, M/WBE & SBE Programs

972-973-5502

cjeter@dfwairport.com

Bennie Miller Jr

SBE Program

972-973-5510

bmiller@dfwairport.com

Ricardo Cardoza Adriana Hinojsa

Business Specialist Business SpecialistBusiness Diversity Manager

Business Specialist Diversity Compliance Specialist

General: bddd@dfwairport.com or 972-973-5500

MBE, M/WBE Programs – 3rd Party Contracts

SBE Program – ITS

972-973-4603

rcardoza@dfwairport.com

B2Gnow

972-973-5507

ahinojosa@dfwairport.com

Thank You

Risk Management / Insurance Requirements

Mark YoungRisk Analyst

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

WAIVER OF SUBROGATIONInsurers shall have no right of recovery or subrogation against the Board or other parties listed above

INDEMNIFICATION AND HOLD HARMLESSContractor covets and agrees to fully indemnify and hold harmless the parties listed above

A.M. BEST RATINGAuthorized by the Texas State Board of Insurance minimum rating of “A-” “VII”

Insurance Requirements

51

ADDITIONAL INSURED ENDORSEMENT

provision refers to the Board of Directors of the DFW International Airport Board and includes:

Board’s

OfficersDirectors Representatives Employees

Dallas and

Fort WorthAgents

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Prior to the execution of the Contract, insurance agent(s), broker(s), or insurers(s) must:

Coverage Notif ication

52

Email: dfwcoi@dfwairport.com

FAX: (972) 973-5651

PROVIDE

EVIDENCE

Provide evidence of insurance

in the form of certificate via

email or fax

Keep certificate current for the

entire period liable for your product

and/or work, but not less than the

warranty period of our Contract

KEEP

CURRENT

DFW Airport will verify coverage

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Responsibil i ty for Subcontractors

53

CoveragePROVIDE INSURANCE FOR SUBS

by designating the subcontractor as an

additional insured by a blanket

additional insured endorsement, or by

specific endorsement

Liability

Contractor shall assume all

liability for those subcontractors

who do not meet the insurance

requirements

Compliance

REQUIRE

SUBS TO PROVIDE

and maintain the

insurance coverage

required herein

Air Operations Area

Contractor shall not be granted

access to the AOA without

verification of insurance

coverage as required

A B

Contractor shall verify subs are

continually in compliance with

all contractual insurance

requirements

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Insurance Coverage

54

COVERAGE TYPES MINIMUM COVERAGE AMOUNT

Worker’s Compensation Texas Statutory Coverage

Employer’s Liability Insurance $500,000 each accident

$500,000 each disease, each employee

$500,000 each disease policy limit

Commercial General LiabilityLimit Any One Occurrence

Damage to Rented Premises

Personal and Advertising Injury

Policy Aggregate

Products and Completed Ops

Business Automobile Liability

Combined Single Limit for Each Accident

$1,000,000

$100,000

$1,000,000

$2,000,000

$2,000,000 aggregate

$500,000

Additional Limits in Secure/AOA

Excess Liability

Limit Any One Occurrence and Aggregate

$10,000,000

Additional Coverages Required

Professional Liability Insurance

Cyber Security Liability Insurance

$1,000,000

$1,000,000

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Procurement Overview / Timing

Suzanne DeVasherSr. Contract Administrator

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

APRIL

24th

Proposal

Due Date

5YEARS

Contract

Term

56

2:00 p.m.

(Central Time)

No email solicitations

accepted

5-year period

Options to renew for two

(2) additional one (1) year

periods

Solici tat ion Highl ights:Lounge Operator

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

APRIL

24th

Proposal

Due Date

3YEARS

Contract

Term

57

2:00 p.m.

(Central Time)

No email solicitations

accepted

3-year period

Solici tat ion Highl ights:Membership Sales

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

• Online supplier registration and collaboration

• Receive solicitation notices

• View payment status

• Receive orders

iSupplier Capabil i t ies

58

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

iSupplier Registration

59

EXISTINGDFW SUPPLIER

NEWDFW SUPPLIER

Ensure your company’s information

including contact email address, is

up-to-date

• Go to: dfwairport.com/procurement

• Select Tab [Supplier

Registration]

• Within [New Supplier

Registration] section, select

[Supplier Registration]

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Solicitation Specifications

60

LAW COMPLIANCE

Procurement Process Managed in Accordance with Texas Government

Code, Chapter 252 and Code 2254

Proposals will not be publicly opened

PUBLISHING

Advertised two consecutive Sundays in local papers:

• Dallas Morning News Legal Notice Section

• Fort Worth Star Telegram Legal Notice Section

Solicitation, Amendments, and Clarifications posted at:

(www.dfwairport.com/business/solicitations)

Proposals must be received at the location on the date and at the time specified on the

cover page of the Solicitation!Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Solicitation Process

61

Proposals will be evaluated

on the SOW requirements

and “Evaluation Criteria”

Section of the RFP

Evaluation Committee

will recommend the

Contract Award(s) to

PMM VP for approval

Upon approval, the Contract

Award request is presented

at the next DFW Board of

Directors Meeting, which

occurs the first Thursday of

each month

EVALUATION

APPROVAL

BOARD REVIEW

LIMITED NOTICE

TO PROCEED

FULL NOTICE

TO PROCEED

After award, and receipt of

documents, a Limited Notice

To Proceed may be issued

Once the Contract is

executed, the Full Notice To

Proceed along with an

Executed Contract issued

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

1Proposal Instructions and Requirements

Solicitation Documents

62

2

3

4 Proposal Response Forms

General/Special Contract

Provisions

Specification/Scope of Work

5 Proposal Pricing Excel File

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

Submission Key Details

63

DELIVERY ADDRESSDFW Airport Headquarters

2400 Aviation Drive, 1st Floor

Procurement & Materials Management Department

DFW Airport, Texas 75261

QUESTIONSContact Suzanne DeVasher

Email: jdevasher@dfwairport.com

Subject: Questions Regarding RFP No. 8005295

All questions must be sent in writing before April 16th, 2019

Questions received after April 16th

at 4:00 pm CT will not be considered!

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

• Follow all proposal preparation instructions

Submission Checklist

64

Place limitations or otherwise “condition” the proposal

• Double-check to make sure all forms are correctly completed thoroughly and accurately

• Make sure all required documentation is submitted

• Respond exactly to what the proposal requests

• Extend all unit prices, double-check all figures (unit prices prevail)

DO

DO

NO

T

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

65

DEADLINE FOR PROPOSAL SUBMITTAL8005295 Membership Sales and Operations of “Latitude” Lounge at

DFW Airport

April 24, 2019 at

2:00 p.m. (CT)

Pre-Proposal Conference for Solicitation No. 8005295

Procurement and Materials Management (PMM)

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