REQUEST FOR PROPOSAL (RFP)

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1 REQUEST FOR PROPOSAL (RFP) RFP Number: Purpose of RFP: RFP Description: Department: R1321-Amended Exclusive Beverage Supplier The City of Lawrence seeks to retain the services of a qualified vendor to serve as the Exclusive Beverage Supplier of cold, non-alcoholic beverages for both vending and fountain operations at all locations owned and operated, controlled, or utilized by the Lawrence Parks and Recreation Department including all other areas that may become operational during the term of the resulting Agreement. Lawrence Parks and Recreation Department Contacts: Jimmy Gibbs, Site Visit: Available upon Request Copy Requirements: 1 original and 3 Copies Due Date & Time: Friday, October 25, 2013, 5:00 p.m. Submit To Address: Lawrence Parks and Recreation Department Exclusive Beverage Supplier 1141 Massachusetts St Lawrence, Kansas 66044

2 REQUEST FOR PROPOSAL Proposals are being requested from soft drink vendors to be exclusive suppliers of an assortment of cold, non-alcoholic beverages for both vending machine and fountain operations at all Lawrence Parks and Recreation Department locations for a period of five (5) years. Proposal must include pricing schedules for all bottled, can and fountain beverages. Proposals due: 5:00 p.m. Friday, October 25, 2013 Submit to: Lawrence Parks and Recreation Department Exclusive Beverage Supplier RFP 1141 Massachusetts St Lawrence, Kansas City Contact/Site Visits: Department information and/or site visits can be arranged by contacting: Jimmy Gibbs (785) I. PURPOSE: The purpose of this Request for Proposal (RFP) is to secure a contractual agreement with a successful vendor for exclusive operation and pouring rights including associated vending machines, fountain machines and refrigerated merchandisers at various designated City-owned facilities and parks, at its sole expense, in exchange for compensation to the City, at no cost to the City. II. CONTRACT PERIOD: The selected vendor will provide the City with contracted services for a five-year (5) period. The chosen proposal would be effective January 1, III. OVERVIEW: Under this RFP, the City seeks to grant comprehensive rights to the successful cold beverage supplier. The contract will provide for the exclusive sale and distribution of specific cold beverages at designated City-owned and managed facilities, golf courses, swimming pools, parks and all other locations operated, controlled, or utilized by the Lawrence Parks and Recreation Department including all other areas that may become operational during the term of the resulting Agreement. Currently, the City has an agreement with a third-party food and beverage service provider (Hy- Vee) that expires December 31, The City is receiving F&B Service proposals that will coincide with this RFP and resulting agreement. At any time the City should enter into such agreement, F&B Service vendors shall be bound through their agreements to use the current and future vendors for cold drinks for the City. City of Lawrence Parks and Recreation Page 2 of 10

3 Product categories included in this exclusive right may include: Carbonated soft drinks Non-carbonated soft drinks Juice and juice drinks Ready to drink tea and coffee Isotonic sports drinks Bottled Water This contract additionally grants opportunities for promotional marketing, including the use of the City logo, at the designated City-owned and managed facilities and parks, and the right for the cold beverage supplier to sell and distribute any introductory products on designated sites throughout the term of the agreement. The contract granting such rights will not include the right to sell, distribute, or promote alcoholic beverages (including non-alcoholic beer), milk, public water, hot coffee, hot tea, or fresh squeezed juice. The City will contractually retain the right to negotiate an exclusive sales agreement for the sale of particular beverages at all Park and Recreation owned and managed facilities in such event the beverage supplier does not sell a comparable product or if the beverage is not specifically covered by the resulting contract. This contract does not include exclusive sales rights for concessions at any other City-owned buildings or properties. Designated City-owned and managed facilities and parks covered in this contract shall include: (please see Section X Facility Descriptions and Locations ) Vending Machines and Product: East Lawrence Recreation Center Holcom Park Recreation Center South Park Recreation Center Eagle Bend Golf Course Community Building Indoor Aquatic Center South Park Wading Pool Centennial Park Skate Park Recreation Center at Rock Chalk Park (summer 2014) Clinton Lake Youth Sports Complex Clinton Lake Adult Sports Complex Holcom Park Sports Complex Fountain Operations-including bottled beverages (Concession Stands): Eagle Bend Golf Course Outdoor Aquatic Center Clinton Lake Youth Sports Complex Clinton Lake Adult Sports Complex Holcom Park Sports Complex IV. REQUEST FOR PROPOSAL GENERAL PROVISIONS This RFP is an invitation to submit a written proposal and does not commit the City in any way to enter into an agreement for beverage services. The City reserves the right to: Reject any or all proposals with or without cause, and without obligation to indicate a reason for the rejection. Cancel the proposal process entirely. Modify the selection procedure, the scope of the proposed contract or service arrangement, minimum requirements, or the required responses. Negotiate with any, all or none of the respondents to the RFP. City of Lawrence Parks and Recreation Page 3 of 10

4 The City may award the contract based on the proposal deemed most advantageous to the City. The vendor awarded the agreement must be able to provide the services described in the RFP. All costs incurred in the preparation of the RFP are the sole responsibility of the vendor. The successful responder will be required to enter into a contractual agreement with the City. If the Vendor fails to perform any covenant or condition herein required, the City shall be entitled to terminate the resulting contract or agreement by providing the Vendor with written notice. The Director of Parks and Recreation may at his or her discretion, provide notice to the vendor of the violation or sub-standard performance and provide the Vendor an opportunity to cure the default. If in the opinion of the Director a satisfactory correction of the violation or the substandard performance is not completed within fourteen (14) calendar days, the resulting contract or agreement shall terminate. The Vendor shall not transfer, assign or pledge the resulting contract or agreement to another without the prior written consent of the City. V. INSTRUCTIONS FOR SUBMITTAL Proposals must be submitted no later than 5:00 p.m. on Friday, October 25, One original and three (3) copies of the proposal should be submitted by mail or hand-delivered in a sealed package to: Lawrence Parks and Recreation Department Exclusive Beverage Supplier RFP 1141 Massachusetts St Lawrence, Kansas Proposals should be organized in the order in which the requirements are presented in the RFP and should reference corresponding section and/or paragraph numbers of the RFP. VI. SPECIFIC REQUIREMENTS OF PROPOSALS A. Compensation for Exclusivity. A minimum annual revenue/income guaranteed to be paid to the City for the exclusive right to supply cold drink beverages for concessions and vending machines located in facilities and parks listed above. This revenue/income guarantee shall be unconditional and independent of the performance of the cold beverage operation and will be paid to the City annually for each year for the first five years (see section XI Options for Support ). B. Nutritional Standards. The Vendor shall offer a variety of items and will be required to meet the Lawrence Parks and Recreation Nutritional Standards (see Section XII Nutritional Standards for Vending and Concessions ) at each vending machine and concession stand. C. Vending Commissions. A commission on gross sales of all seasonal and 12-month vending machines products. The Vendor will describe options and commission schedules for self-service by our chosen F&B operator, or full-service through the Vendor. D. Concession Products. List of products and a price for each product to be resold in the concessions and vending machines located at facilities and parks listed above (includes fountain, cans and bottles). An available product price list AND minimum case order requirements should also be included in the proposal. The following product prices should be included: small bag-in-box, large bag-in-box, 12 ounce cans, 20 ounce plastic bottles and other sizes as determined by the Vendor. City of Lawrence Parks and Recreation Page 4 of 10

5 E. Concession Equipment. Vendor shall provide and install a six-product, bag-in-box fountain beverage machine for use at each of the concession areas at Lawrence Outdoor Aquatic Center, Eagle Bend Golf Course, Clinton Lake Youth Sports Complex, Clinton Lake Adult Sports Complex and Holcom Park Sports Complex. F. Vending/Merchandising Equipment. Vendor shall provide at least one new or likenew vending machine or necessary equipment for the vending service area at each of the facilities listed in section III Overview. All vending machines shall use recyclable plastic bottles or aluminum cans. Equipment deemed necessary for operation as well as the specifications must be indentified in the Vendor s proposal. G. 12-Month Vending Machine Product Selection. For the term of the resulting agreement, the City shall have, at its sole discretion, final approval of the selection and volume of products dispensed through the vending machines. Vendor shall provide an itemized list of vending machines by location and shall state how many products will be available for selection through each machine at the location. Vendor shall also provide a list of products that will be available through the machines. H. Seasonal Vending Machine Product Selection. The seasonal vending machines located in the various City facilities and parks should provide a combination of soda, water, and sports drinks. Vendor shall state how many products will be available for selection through the machine and provide a list of products that are available through the machine. I. 12-Month Vending Machine Schedule. All 12-month vending machines are expected to be installed within fifteen (15) working days of the commencement of the resulting agreement. Provide a proposed time table for all stages of the installation, including product delivery. J. Seasonal Vending Machine Schedule. All seasonal vending machines are expected to be installed not later than April 15 of each year and removed no earlier than October 1 of each year unless otherwise noted in resulting contract agreement. Provide a proposed time table for all stages of installation, including product delivery. K. Vending Machine Maintenance. Regular maintenance shall include a minimum weekly restocking of product in the machines. Failure to stock on a weekly basis in vending machines is cause for termination of this contract. Vendor shall provide a restocking schedule and statement of commitment for addressing under-stocked, missed deliveries, malfunctioning and defective equipment. L. Reporting. Proposed product volume accounting system and method of quarterly product volume reporting to the City should be included in the proposal. Monthly sales reports shall be provided to a City designee. This report should detail the amount of product sold in the vending machines as well as the percentage amount of sales through the vending machines that will be returned to the City. Monthly sales reports shall also include information regarding customer satisfaction with the products and machine service. Vendors shall include a written statement detailing how customer satisfaction will be measured and evaluated for improvements in service. Please include a sample monthly sales report in your proposal. M. Vending Refunds. The Vendor will be responsible for providing a refund program, which includes a prominent decal on each piece of seasonal vending equipment providing customer refund information. For 12-month vending machines, the Vendor will agree to keep a cash return fund at the front desk of each facility for refunding on-site machines. City of Lawrence Parks and Recreation Page 5 of 10

6 Vendor shall check the fund balance, collect receipts, and receive maintenance requests with weekly restock service. N. Marketing Support. Marketing support is an important aspect to the success of these services. Therefore, the successful Vendor will work with the LPRD Marketing division to develop a successful marketing support program. At a minimum, a list of coolers, pointof-sales materials, menu and/or video display boards shall be provided with the proposal. Any marketing support programs developed will be subject to final approval from the City. O. Concession Equipment Installation Schedule. All installation related work at the defined concession stand areas is expected to be completed by March 1 of any calendar year: exceptions include The Lawrence Recreation Center at Rock Chalk Park, estimated opening Summer 2014 and the Lawrence Outdoor Aquatic Center which shall be completed by May 15. Provide a proposed time table, in calendar days for all stages of the installation, including product delivery. P. References. Each proposal shall include a list of three references from other governmental agencies, including qualifications and particulars of service, delivery and repair records. Q. Contact Information. Primary contact information of sales representative(s) who will be assigned to this account. R. Proposal must be valid for 120 calendar days from the deadline for submission. S. Other considerations not listed above that would be included as part of submitted proposal. VII. EVALUATION CRITERIA Your proposal may be evaluated based on the following: Financial benefit to the City as outlined in the proposal. Ability to meet a minimum fee and commission structure. Ability to meet minimum nutritional standards in each vending machine and concession location. Vendor must demonstrate ability to provide timely service seven days a week year round. Vendor must provide trained personnel to service the machines. Vendor must provide references to verify ability to provide comparable services in the operation of similar facilities. Vendor must provide a competitive price list of products to be resold. Vendor must provide a comprehensive list of equipment and point-of-sales materials to be supplied. Vendor must provide safe and sanitary new or like-new machines that meet industry standards. Vendor must maintain an approved inventory and accounting system and provide a monthly summary of product supplied and sold by location. Ability to meet insurance requirements. Proposal must be complete and submitted by deadline indicated on cover sheet. City of Lawrence Parks and Recreation Page 6 of 10

7 VIII. SPECIAL CONDITIONS A. The successful Vendor will keep all vending and concessions fully supplied with respect to all cans, bottles, syrups, carbonation and all other necessary supplies to allow the City and the Food & Beverage supplier to maximize sales. The Vendor will also be committed to quickly responding to issues related to the reliability of their equipment. B. The final product line sold on City-owned and managed property will be the decision of the City with the advice of the successful Vendor. The City reserves the right to make additions, deletions or other modifications relative to product offerings provided that these modifications do not violate the exclusive nature of the Contract. C. A commission-based vending program is required as part of this Contract. Commission payments are required on a monthly basis (at a minimum) and must be itemized by machine location, units sold, retail price, total cash collected, and commission amount. D. The City shall not be held responsible for physical damage as a result of accident, vandalism, theft, loss of electric power, power spike, or Act-of-God while on City premises. The City will provide an adequate electric outlet for each vending machine and assume the cost of electricity consumed. E. Proof of insurance coverage in amount, types and with insurers acceptable to the City is required for: Workers Compensation Comprehensive General Liability ($1,000,000 or greater) Comprehensive Automobile Liability Product Liability Fire and theft insurance The successful Vendor will be required to provide indemnification and insurance in forms, coverage, and amounts acceptable to the City. The City, its officers, employees and volunteers must be named as additional insured on the certificate of insurance upon execution of a contract. The Vendor must comply with all applicable federal, state, and local laws, rules and regulations. F. The contract entered into by the parties shall include the Request for Proposal including all modifications thereof, the proposal submitted by the Vendor, along with the Contract agreement, all of which shall be referred to collectively as the Contract Documents. G. The new recreation center and adjacent city park land, estimated to open summer 2014, at this time shall be known as the Lawrence Recreation Center at Rock Chalk Park. This RFP and any corresponding contracts, agreements, notations or references, whether written, spoken or implied will only refer to this building as such. This facility is wholly owned and operated by the City of Lawrence, Kansas and is not in any way associated with the University of Kansas, Kansas Jayhawks, KU Athletics or KU Endowment. IX. DEPARTMENT HISTORY The Lawrence Parks and Recreation Department, established in 1946, provides a variety of services related to the fields of parks and recreation including: aquatics, recreation instruction, adult sports, youth sports, nature and wildlife education, special events, special populations, recreation facilities operations, hike/bike trails, forestry, cemeteries, landscaping in Downtown Lawrence and other public space, golf course management, as well as other quality of life programs and facilities. In 2012, Lawrence Parks and Recreation had approximately 770,000 visitors to department facilities and programs. City of Lawrence Parks and Recreation Page 7 of 10

8 In 1996, the department created the Wee Folks Scholarship Fund, providing scholarships for area youth to participate in recreational activities and programs and to never turn a child away, for the inability to pay. In the first ten years of the scholarship program over $150,000 in scholarships were awarded to children to participate in the department s programs and activities. X. FACILITY DESCRIPTIONS AND LOCATIONS Lawrence Recreation Center at Rock Chalk Park, 101 George Williams Way This 180,000 square foot facility is scheduled to open in June of The facility consists of eight (8) full size basketball courts, sixteen (16) volleyball courts, a 240 ft. by 90 ft. indoor turf area, a gymnastics facility, a fitness/dance/aerobics room, an indoor walking/jogging track, 2 meeting rooms and weight and cardio rooms. Outdoor amenities include lighted tennis courts and a 5K running trail. The facility will be used for various Lawrence Parks and Recreation Youth and Adult leagues and programs as well as hosting large regional and national tournaments an estimated 30 weekends per year. Clinton Lake Adult Softball Complex (CLSC), 1352 E Road Consists of four (4) softball diamonds, a children s playground, ten (10) softball/baseball batting cages and concession facilities. The fields are used primarily by Parks and Recreation leagues but do host numerous tournaments throughout the season. Walk in cooler/storage unit is available at this site. Estimated yearly attendance at CLSC is 97,500 people. This number includes both spectators and participants. Operation dates: April-October. Operating hours: Based upon schedule to be announced. Clinton Lake Youth Sports Complex (YSC), 1035 N Road Includes eight (8) playing fields for youth baseball and softball, five (5) playing fields for youth football and fifteen (15) soccer fields. This facility is used by the City of Lawrence, Parks and Recreation Department and other non-profit organizations such as Sporty Kaw Valley Soccer Association and Lawrence Youth Football. Estimated yearly attendance at CLYSC is 110,000 people. This number includes both spectators and participants. CLYSC operation dates: March-October. Operating hours: Based upon schedule to be announced. Holcom Park Athletic Complex (HPSC) excluding Holcom Recreation Center, 2601 W. 25th Street- Consists of six (6) playing fields three fields are used by both youth and adults for baseball and softball. Estimated yearly attendance at HPSC is 65,000 people. This number includes both spectators and participants. Operation dates: April-October. Operating hours: Based upon schedule to be announced. Lawrence Indoor Aquatic Center (LIAC), 4706 Overland Drive- Located adjacent to Free State High School. This facility features a 50-meter Olympic competition pool and a separate family pool with waterslides; children play features, meeting rooms, shower/locker rooms and a café-style food and beverage area. Facility operation dates: Year around. Average annual attendance: 115,000. Food and Beverage contract would be for swim meets only. The Indoor Aquatic Center hosts an average of 10 large swim meets per year, each lasting 2-3 days. Average swim meet swimmers PLUS spectators. Lawrence Outdoor Aquatic Center (LOAC), 727 Kentucky Street- Features a 50 meter pool, zero-depth entry, double water slides, sunshade structures, and family changing areas. Facility operation dates: Memorial Day weekend through Labor Day. Average annual attendance: 90,000. Facility operating Hours: Daily 1:00 p.m. to 8:45 p.m., weather permitting. Minimum food and beverage hours: M-F 1:00 p.m. to 7:00 p.m., Sa-Su 1:00 p.m. to 8:00 p.m. The food & beverage operator could, at his or her option, operate additional hours (opening earlier for swimming lessons or staying later for parties). City of Lawrence Parks and Recreation Page 8 of 10

9 XI. OPTIONS FOR SUPPORT Lawrence Parks and Recreation suggests vendor support of department services. Please provide a variety of monetary or product options for us to consider in accepting a bid from your company. Past contracts have provided sponsorship of golf tournaments, scoreboards, activities guide advertising, a permanent concession structure, product donation, and annual monetary donations. Any other options for support may include, but are not limited to: Commission rates for each vending product category. Commission should be stated as a percentage of gross sales without deduction of any costs by the supplier including but not limited to, applicable taxes. Funds designated in support of Parks and Recreation s Wee Folks Scholarship Fund. Programs Lawrence Parks and Recreation Department offers over 450 classes, programs and activity each season. In an effort to keep prices affordable, Lawrence Parks and Recreation seeks sponsorships to offset the cost to the public. Many special events, like Daddy/Daughter Date Night, Breakfast with Santa, the Pooch Plunge, fun runs, the summer concert series, youth sports leagues, art classes, etc., have received in-kind support from businesses and organizations within the community through monetary means or through material donations. Facilities Equipment The department seeks support for semi-permanent, logoed equipment including umbrellas, tables, benches, scoreboards, shade structures, wind screens and window clings at swimming pools, outdoor concession stands and tennis courts. Tournaments Lawrence Parks and Recreation Department s Eagle Bend Golf Course and Learning Center is the site of many community tournaments. In past contracts, the beverage supplier has held tournaments at Eagle Bend. Other tournament support could be through donation of product or naming rights to tournaments hosted by the department in support of its scholarship fund or other projects, like state association (Kansas Recreation and Park Association) hosted tournaments and City sponsored tournaments. Advertising Lawrence Parks and Recreation Department s Marketing Division produces an Activities Guide twice yearly, listing all programs/activities/classes offered by the department. We seek individual advertisements to full underwriting to cover printing costs. There is also hole sponsorship opportunity available on the course at Eagle Bend Golf Course. Volunteer Recognition Lawrence Parks and Recreation Department recognizes its vast amount of volunteers on a bi-annual basis. In the past, the department has received support from local businesses providing them a gift for their services. XII. NUTRITIONAL STANDARDS FOR VENDING AND CONCESSIONS In the interest of public health the Lawrence Parks & Recreation Department has created the following product placement requirements, pricing components and nutrition standards. The implementation of this policy will promote good nutrition and create a positive environment to foster healthy eating habits for the community, staff, and others who use Lawrence Parks and Recreation facilities. City of Lawrence Parks and Recreation Page 9 of 10

10 Vending Machines and Concession Stands: A. A minimum of 50% of all food and beverage items offered shall meet the nutritional standards listed below. B. The price of the products meeting the nutritional standards listed below shall be equal to or less than the comparable products that do not meet the nutritional standards. C. Products which meet the nutritional standards listed below shall be grouped together and shall be placed in the center rows or in the far left rows of the machines for easy viewing and selection. D. All prepackaged products shall be offered in regular-sized single-serving packages. E. Concessions: Vendors shall offer at least one fresh fruit or vegetable. Beverages Meeting the Nutritional Standard: A. Plain water, flavored waters, diet drinks, and sports drinks limited to 40 calories total or less per container and 200 milligrams total or less of sodium per container. B. Milk or flavored milk, 1% or fat free, including lactose-free, soy or nut beverages, with 200 calories total or less, limited to a maximum 12-ounce container size. C. 100% Fruit juice or fruit juice combined with water or carbonated water and with no added caloric sweeteners, limited to a maximum 12-ounce container size. D. 100% vegetable juice with no added caloric sweeteners, and 200 milligrams of sodium total or less per container, limited to a maximum container size of 12 oz. Vending and Concession Food Standards A. Snack and entrée food items that meet the nutritional standards offered shall meet all the following criteria for each individual package (not listed serving size) or as prepared. An entrée is defined as a food generally regarded as being the primary food in a meal, including all sides provided as part of the entrée. Non entrée concession items such as side dishes are defined by snack standards, if not provided as part of the entrée. B. Calories: Snacks: 200 calories total or less; Entrées: 400 calories total or less. C. Fat: Total calories from fat may not exceed 35 percent, except for packages that contain 100% nuts or seeds; and low-fat or reduced-fat cheese. D. Saturated Fat: No more than 10% of calories from saturated fat except for packages that contain 100% nuts or seeds; and low-fat or reduced-fat cheese. E. Trans Fat: 0 grams trans fat F. Sugar: No more than 35 percent by weight, with the exception of: (1) fruits and vegetables that do not contain added sweeteners or fat; or (2) yogurt that contains no more than 30 grams of total sugars per 8-ounce container (and adjusted proportionally for smaller containers). G. Sodium: Snacks: No more than 200 mg of sodium per serving for snacks and non entrée concession items; Entrees: No more than 480 mg of sodium per serving. Support for Standards Dietary Guidelines for Americans (DGA) are made to guide healthful eating patterns, and these guidelines were referenced in the development of the standards. 1. Model standards from NANA (the National Alliance for Nutrition and Activity); GSA (Government Services Administration) Federal Concessions and Vending Operation, (Proposed) Smart Snacks in School, along with other standards also were used identifying the language. This will help to develop consistency in these or other standards that may be developed or revised in the future. NANA, an alliance of 400 health organizations such as the Academy of Nutrition and Dietetics and the American Heart Association, was the source of the majority of the guideline language. 2. There are several exceptions to the NANA model in these standards. These exceptions are considered a necessary part of implementing these first-ever standards given changing expectations of consumers and evolving vendor products. The exceptions here include: More liberal beverage guidelines. NANA standards call for 100% of beverages in vending machines to meet the prescribed standard. The inclusion of candy bars and other foods of minimal nutrition value. City of Lawrence Parks and Recreation Page 10 of 10

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