Chicago OHare goes to bid
By Administrator |
Chicago O'Hare International Airport has issued a request for proposals document for the development and operation of a duty free retail concession covering four duty free stores in terminals 1, 2 and 3.
International departures from the Domestic Terminals totalled 3.5m in 2005, with 2.1m departing from Terminal 1, 0.2m from Terminal 2 and 1.2m from Terminal 3. Annual sales from the locations on offer were less than $11m in 2005.
A pre-proposal meeting is being held at the airport today and a key stipulation in the contract is that the operator must strive to achieve a Disadvantaged Business Enterprise (DBE) participation of at least 30%.
[Airports in the US request this purely to qualify for Federal Funding and it is one of the biggest impediments to profitability for an operator-Ed].
An annual minimum guarantee contract format is being offered. In its RFP the City of Chicago has an awards system offering points for meeting various criteria.
For experience and qualifications, based on an assessment of an operator's prior knowledge of Chicago O?Hare, Chicago Midway or other airports, O'Hare can award up to 75 points. Another 100 can be gained for a bidder's merchandising and concept plan and a further 50 for the design and construction of proposed stores.
An additional 75 points can be awarded for the management and operations plan and a whopping 200 points for the financial offer [i.e. if you bid the most money-Ed].
The date for submission of final proposals is December 7, 2006.
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