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Orlando Foodservice Proposal Evaluation , Bob Carr Performing Arts Centre, and the Citrus Bowl Orlando Foodservice Proposal Evaluation SEEKING CITY COUNCIL APPROVAL • Approve the ranking for the foodservice at the Amway Center, Bob Carr Performing Arts Centre and Citrus Bowl. •Authorize the negotiation and execution of an agreement with the Top Ranked firm – Orlando Foodservice Partners. Orlando Foodservice Proposal Evaluation SCOPE AND TERMS •Part of Magic use agreement approved in December 2007 •Five (5) year term – plus a pre-opening period •Option - five (5) additional one year renewal terms •Commission contract vs. management contract Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW • RFP developed in conjunction with Chris Bigelow •Consultant to the Sports, Entertainment & Convention markets •30+ years of operational and financial analysis experience • Issued – November 17, 2009 • First Venues, non-construction related RFP Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW (cont) Key Dates • Community Meeting/B2B – October 27th 2009 • RFP Released – November 17th • Mandatory Pre-bid – December 1st • Proposals Due – January 7, 2010 Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW RFP Responses • Aramark Orlando Culinary Food Partners • Orlando Foodservice Partners • Ovations Foodservice • Service America Corp D/B/A Centerplate Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW Selection Committee 1. 2. 3. 4. 5. 6. 7. Michael Thompson, Deputy Director, Orlando Venues – Chair Frank Billingsley, Director, City’s Economic Development Department Ray Elwell, Deputy Chief Financial Officer Kevin Edmonds, Deputy CAO Scott Bowman, VP Franchise Relations, Orlando Magic Lucas Boyle, Director, Multi-Cultural Insights, Orlando Magic Bobby Bridges, Director of Premium Sales, Orlando Magic Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW Selection Committee Role: • Complete analysis of bid submittals –financial , operational & community impact • Providing a ranking to City Council • Selection Committee Received Proposals on Jan 8th • 1st meeting January 13th – short listed all 4 proposers for oral presentations • 2nd meeting – All day Jan. 20th Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW Overview of RFP Selection Criteria • Operating Plan • • • • • Proposed management team exp. Experience of proposer (emphasis on NBA venues) MWBE participation/Blueprint responsiveness Financial proposal & commission Capital Improvements (Bob Carr/Citrus Bowl) 20 points 20 15 20 23 2 Orlando Foodservice Proposal Evaluation INDUSTRY ANALYSIS Orlando Foodservice Proposal Evaluation COMMISSION VS. MANAGEMENT FEE METHOD • Highest Ranked Proposer – blended commission rate of 47% vs. current management fee of 40% • Greater return with less risk for City than Management Fee method where City is at greater risk & less reward Orlando Foodservice Proposal Evaluation BOB CARR PERFORMING ARTS CENTRE AND FLORIDA CITRUS BOWL • Offers best commission rates • Innovative capital investment program to the City for the Bob Carr Performing Arts Centre and Citrus Bowl • Resulting in needed revenue & improved fan experience • Benefit from OFP relationship with Wolfgang Puck to enhance the culinary experience at Bob Carr & Citrus Bowl Orlando Foodservice Proposal Evaluation PROGRAM HIGHLIGHTS • Joint Venture Partnership services more NBA/NHL arenas than other proposers – benchmark against the best for improved fan experience • Best use of technology with social media including iPhone in seat or advanced ordering • Highest proposed dollar amount to MWBE firms • Only proposer with a MBE as the Managing Partner • Only selecting prime company and some subcontractors • Many more opportunities remain Orlando Foodservice Proposal Evaluation FINANCIAL ANALYSIS Orlando Foodservice Proposal Evaluation AVERAGE ANNUAL SALES APPLIED TO ALL PROPOSERS Amway Center $16, 951,142 Citrus Bowl $1,558,038 Bob Carr Performing Arts Centre $690,846 Totals $19,200,026 RETURN TO THE CITY AND MAGIC OVER FIVE YEAR CONTRACT Amway Center Proposers Ranked by Return Amway Center Orlando Foodservice Partners $ 43,997,668 Aramark Culinary Partners $ 40,482,246 Service America D/B/A Centerplate $39, 176,722 Ovations $37,035,766 RETURN TO THE CITY OVER FIVE YEAR CONTRACT Citrus Bowl Proposers Ranked by Return Citrus Bowl Orlando Foodservice Partners $ 4,739,767 Aramark Culinary Partners $4,710,644 Service America D/B/A Centerplate $ 4,509,030 Ovations $3,710,523 RETURN TO THE CITY OVER FIVE YEAR CONTRACT Bob Carr Performing Arts Centre Proposers Ranked by Return Bob Carr Performing Arts Orlando Foodservice Partners $1,885,379 Service America D/B/A Centerplate $1,681,533 Aramark Culinary Partners $1,650,926 Ovations $919,346 TOTAL RETURN PAID OUT TO CITY AND MAGIC OVER FIVE YEAR CONTRACT Totals Orlando Foodservice Partners $ 50,622,814 Aramark Culinary Partners $ 46,843,816 Service America D/B/A Centerplate $ 45,367,285 Ovations $ 41,665,634 Capital Investment PROPOSERS Orlando Foodservice Partners Aramark Culinary Partners Service America D/B/A Centerplate Ovations Amway Center(Proposers were instructed that no investment was necessary at Amway Center) Citrus Bowl Bob Carr Performing Arts Centre Total Concessionaire Investment that becomes the Property of the City $ - $ 100,000 $ 100,000 $ 200,000 $- $ 50,000 $ 10,000 $ 60,000 $ 200,000 $ 225,000 $ 75,000 $ 500,000 $- $ 200,000 $ 50,000 $ 250,000 Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW – MWBE SCORING MWBE scoring breakdown – (20 points total) 1. MWBE Joint Venture – true joint ventures in ownership arrangements, partnerships • Maximum 12 points (9 for MBE & 3 for WBE) 2. Prior experience in utilizing MWBE firms at comparable venues (Max. 2 pts.) 3. Community Impact Plan – targeted at achieving the City’s Blueprint goals (Max. 6 pts) • Supporting MWBE’s • Provide training opportunities • Mentor/protégé Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW Overall Scoring • Each member scored each firm based on the points assigned to each category and developed a total • Then assigned a numeric ranking -1,2,3 or 4 to each firm based on total number of points -1 being highest, and 4 being the lowest. • Purchasing then aggregated the scores to determine the final rankings. Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW – FINAL RANKING Unanimous Ranking of top firm 1. 2. 3. 4. Orlando Foodservice Partners Aramark Orlando Culinary Partners, LLC Service America Corp D/B/A Centerplate Ovations Foodservices Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS NOTIFICATION: •Jan. 20th - Posted Final Ranking & Notice of Intended Action on Internet and Demandstar @ 4:45 p.m. •Jan. 27th - Deadline for Submission of Protests No protests received Orlando Foodservice Proposal Evaluation PROCUREMENT OVERVIEW PROCESS Highlights of the top ranked firm’s proposal include: Financial • Largest financial return/commission rates to the City • Levy is an estimated $850 million restaurant and contract foodservice company. Owned by the largest foodservice company in the world, Compass Group, a $14 billion company • Highest commission rates & innovative investment programs for Bob Carr Performing Arts Centre and Florida Citrus Bowl Orlando Foodservice Proposal Evaluation PROCUREMENT OVERVIEW PROCESS Highlights of the top ranked firm’s proposal (cont.): MWBE •Joint Venture with a local minority-owned company serving as the managing partner •Highest annual revenue to MWBE firms participating •As part of the BLUEPRINT and the Community Impact Plan, Orlando Foodservice Partners will fund a new community culinary and hospitality training program. Orlando Foodservice Proposal Evaluation PROCUREMENT PROCESS OVERVIEW Highlights of the top ranked firm’s proposal (cont.): Operating Experience •Currently serves more NBA and NHL arenas than any of the other applicants •Best plans for the use of technology to enhance sales (e.g. Social media, I-Phone ordering, etc.) Thank You