HUDSON RIVER PARK TRUST CONTRACT NO. / RFP# L4837 REQUESTS for PROPOSALS Non-Alcoholic Beverage Vending Concession and Branding/Sponsorship Opportunity
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HUDSON RIVER PARK TRUST CONTRACT NO. / RFP# L4837 REQUESTS FOR PROPOSALS Non-Alcoholic Beverage Vending Concession and Branding/Sponsorship Opportunity Description: Hudson River Park Trust, a New York State Public Benefit Corporation is seeking proposals from experienced and qualified vendors for an indoor/outdoor concession for non- alcoholic beverages and optional snacks in various locations within the Park. Selection Criteria: The Trust will base its selection upon the following criteria: 35% Proposed Fee Schedule (Vending Machine Rental Fee, Monthly Commission Rate, Rebates), along with ability to make all proposed payments based upon soundness of business concept and financial strength of respondent. 25% Branding and Sponsorship Fee, quality and creativity of proposed branding and sponsorship support plans. 15% Respondent’s prior experience, reputation, organizational and business capability. 12.5% Quality of the proposed operational plan, including the quality of the proposed vending machines, the proposed maintenance plan for the vending machines and the customer service plan. 12.5% Variety and pricing for proposed products. You may obtain full RFP documents by the following means: (1) Hudson River Park Trust Website: https://www.hudsonriverpark.org/ (2) NYSCR - https://www.nyscr.ny.gov (3) In Person- Directly from the Hudson River Park Trust office located at 353 West St, Pier 40, Rm. 201, N.Y., N.Y. 10014 – Tom Lindon Anticipated Contract Term: 5 Years Optional Pre-proposal Meeting: August 25, 2017, 11:30 A.M. Submission Deadline: September 18, 2017, 3:00 P.M. Submit To: Hudson River Park Trust 353 West Street, Pier 40, 2nd Floor, New York, NY 10014 Attention: Tom Lindon, VP of Marketing and Events Request for Proposals For Non-Alcoholic Beverage Vending Concession and Branding/Sponsorship Opportunity in Hudson River Park RFP# L4837 RFP Release Date: August 14, 2017 Submission Deadline: September 18, 2017 at 3:00 PM Premises: Up to 24 vending machine locations within Hudson River Park as depicted in Appendix 4. The Premises is offered in “as-is” condition Permitted Use: Vending, Branding and Sponsorship Opportunities as detailed herein Term: Five (5) years Fees: Annual fixed vending machine location rental fee, and a branding and sponsorship fee, each with annual escalations, plus commissions and rebates as detailed in Section IV herein Security Deposit: $10,000.00 Submission Deadline: September 18, 2017 at 3:00 PM I. Introduction Hudson River Park (the “Park”) is the nation’s longest riverfront park and one of the largest open spaces in Manhattan, receiving more than 17 million visits per year. Since construction began in 1998, the Park has transformed the west side of Manhattan with unprecedented waterfront access, playgrounds and recreational space, beautiful gardens, lawns, and athletic facilities, creating a world-class public amenity, with year-round programs and activities. 2 A partnership with the Hudson River Park Trust (the “Trust”) is available that encompasses a business arrangement in which both the selected respondent (“Concessionaire”) to this Request for Proposals (“RFP”) and the Trust benefit from the sale of identified goods, as well as brand advertising and sponsorship activation. The core business arrangement provides the opportunity to sell beverages and snacks in multiple vending machine locations along the Park’s four-mile footprint. The Trust provides the following data as reference for potential sales revenue: • Average annual case volume sold through the vending machines in the park during each of the last three years: 3,000+ Additionally, the vending machines provide the opportunity to place product logos on the front of the vending machine or place other messaging specific to the brand or the Park, as well as consumer engagement with the millions of health and fitness enthusiasts who play on the athletic fields, basketball and tennis courts and skate parks; bikers, walkers and runners; water sports participants, and patrons who frequent the park to relax and take in the beautiful scenery. Sponsorship provides opportunities for significant exposure, as well as connections to the Park community through advertising and promotion of your brand across the Park’s eclectic event offerings; supporting the Park’s premier public programs in environmental, educational and service areas; and employee engagement with unique volunteer and recreation experiences. II. The Opportunity The Trust seeks submissions to this RFP from experienced and qualified vendors for an indoor/outdoor concession for non-alcoholic beverages and optional snacks in various locations within the Park. Concessionaire will supply, stock, manage and maintain vending machines at up to 24 Trust- approved locations throughout the Park in accordance with the terms and conditions set forth in this RFP and the concession agreement to be subsequently entered into between the Trust and Concessionaire (“Concession Agreement”). The Concessionaire shall cater to regular Park patrons, event attendees, tourists and Trust staff with products sold through vending machines owned and stocked by Concessionaire. As requested, the Concessionaire shall also sell products directly to event promoters of Trust-produced in-house events. The Concessionaire may sell its products to Trust tenants that sell and/or serve beverages for resale to customers who patronize tenant restaurants, stationary and mobile concession locations in the Park. A list of the current tenants of the Trust is set forth in Appendix 7. III. Components of Concession and Sponsorship Agreement (a) Product Sales The Concessionaire shall have the right to place vending machines at up to 24 locations. The right applies to machines providing carbonated beverages, water, sports and fitness drinks, 3 energy drinks and iced tea located throughout the Park as depicted in Appendix 4. An exclusive right to place vending machines at each of the 24 locations may be proposed. (b) Branding and Sponsorship The Concessionaire has the opportunity to propose its brand/product messaging at vending machines and to participate in Park–produced events serving the general public. Each year, the Trust produces dozens of free fitness, family, dance, music, educational and other events which together serve more than 100,000 people annually. Concessionaire also has the opportunity to propose brand specific activations and special events within the Park. Depending on the proposed level of sponsorship, concessionaire may receive recognition through Trust-produced marketing and promotion collateral including printed materials and on the Trust’s website and on Trust-maintained social media channels. Depending on the proposed level of sponsorship, rights and opportunities may include: • Designation as the exclusive beverage sponsor for certain specified Trust events • Designation as the exclusive beverage sponsor for all Trust events • Product promotion as the “Official Beverage” in designated areas of the Park • Product promotion as the “Official Beverage” at certain specified Trust events • Creative Corporate Social Responsibility (CSR) programming that includes employee and community engagement designed to showcase environmental stewardship through initiatives that include conservation of the river estuary ecology, urban greening and sustainability, investing in environmental education for NYC youth and special events The Trust will review submitted branding and sponsorship plans and will evaluate the proposals to determine branding opportunities, promotional rights and opportunities for marketing activation at events that are proportional to the Concessionaire’s proposed fees to the Trust for such opportunities. For more information on Branding and Sponsorship Opportunities, including audience and visitor profile, please see Appendix 5. IV. Fees a) Vending Machine Location Rental Fees Concessionaire shall pay the Trust an annual fixed vending machine location rental fee (the “Vending Machine Location Rental Fee”) commensurate with case volume data, with 3% minimum annual escalations payable within 60 days of the execution of the Concession Agreement with subsequent installations due on the anniversary date after each year remaining in the term of the Concession Agreement. The Trust will look favorably at responses that recognize the potential revenue, and high sales volume that these sites provide. 4 b) Commissions Concessionaire shall pay the Trust a monthly commission rate (the “Monthly Commission Rate”) for products sold from Concessionaire’s vending machines. Commissions shall be paid based upon cash collected after deducting taxes, deposits, recycling fees, and other reasonable charges. c) Rebates The Trust’s third-party producers of in-house Park events may elect to sell beverages. If such an election is made, in-house Park event producers will purchase products from the Concessionaire for sale at events throughout the Term. These events may attract attendance of up to 12,000 guests during the busy spring/summer season. The Concessionaire shall provide pricing to the third-party event producers for purchases of its products, with annual increases limited to 4%. Concessionaire shall thereafter pay the Trust a rebate for each product (e.g., $3.00 per case) as indicated in the Concessionaire’s proposed fee schedule (the “Fee Schedule”), set forth in Appendix 6. d) Sponsorship Fees While sponsorship investment is not a core requirement of this RFP, proposals that do include an annual fixed branding and sponsorship