ADDENDUM NO. 7 - Flychicago



Friday, February 17, 2017ADDENDUM NO. 7ForREQUEST FOR PROPOSALSForFOR BRANDED HOTEL OPERATOR MANAGEMENT SERVICES AT CHICAGO O’HARE INTERNATIONAL AIRPORT HOTELSThe following changes and/or revisions are incorporated into the above referenced RFP Document as noted. All other provisions and requirements as originally set forth remain in force and are binding. THE RESPONDENT MUST ACKNOWLEDGE RECEIPT OF THE ADDENDUM IN THE COVER LETTER SUBMITTED WITH THEIR PROPOSALS.SECTION I: QUESTIONS AND ANSWERS/CLARIFICATIONSPlease note that this SECTION I of Addendum No. 7 addresses all questions submitted on or before Monday, February 6, 2017 at 12:00 p.m. CST that have not been answered in previously issued Addenda. The following written responses supersede any oral responses given during the Webinar hosted by the CDA on February 1, 2017 on the subject of compliance and the Hotel Operator’s relationship with other CDA contractors (the “Webinar”). Do Technical Assistance Services include assisting and advising CDA on developing the RFP for the Design-Build (“DB”)/Design-Bid-Build (“DBB”) and managing that RFP process with them?The Hotel Operator’s services may include reviewing and advising CDA as to the Scope of Services of the bid documents for the Design Build and Design Bid Build solicitations, however, the CDA will be responsible for developing the RFP and managing the selection process for those projects. Do you have to provide Schedule B to the MBE/WBE Special Conditions if the MBE/WBE partner is not a joint venture?Schedule B to the MBE/WBE Special Conditions does not need to be submitted as part of respondent’s proposal in cases where MBE/WBE participation is based on subconsultant or other partnering agreements and MBE/WBEs are not joint venture partners with the respondent.The RFP states that the Technical Assistance Services include providing interior design services. Is that correct?Technical Assistance Services are outlined on page 15 of the RFP. These services include acting as an owner's representative on CDA's behalf, and in close coordination with CDA, to provide design review and construction review during the programming, design, and construction of both the renovation of the Existing Hotel (“Existing Hotel Project”) and construction of the New Hotel (the “New Hotel Project”) (together the “Hotel Projects”). Operator’s team may include interior designers and architects to act as consultants to ensure that the Hotel Projects adhere to Operator’s brand standards and the completed Hotels reflect Operator’s vision for its brand. The selected Operator will also be responsible for procurement, delivery, warehousing, and installation of the Furniture, Fixtures, & Equipment (“FF&E”)/Operating Supplies & Equipment (“OS&E”), as outlined on page 15 and 16 of the RFP. The CDA will purchase the necessary FF&E and OS&E.If there is not a formal legal joint venture relationship with an MBE/WBE versus a partnership in some form of consulting arrangement, does Schedule B need to be provided?Schedule B to the MBE/WBE Special Conditions does not need to be submitted as part of respondent’s proposal in cases where MBE/WBE participation is based on subconsultant or other partnering agreements and MBE/WBEs are not joint venture partners with the respondent.How long does it take to get certified with the ACDBE through the City of Chicago? The CDA is not a certifying agency and therefore cannot guarantee a time frame for processing ACDBE applications. However, the CDA believes that there is ample time for firms to apply for, and receive ACDBE certification prior to the submission and approval of Hotel Operator’s final ACDBE Compliance Plan. What is the process for applying for ACDBE certification?Interested firms may apply through the City of Chicago or other certifying agencies in accordance with the eligibility standards of the U.S. Department of Transportation (USDOT) Regulation 49 CFR Part 26 and 23 and the processes established under IL UCP. Please go to for more information on certification with the City of Chicago. What if the process to get certified does not meet CDA’s deadline for this RFP? Respondents do not need to provide the names of ACDBE partners in the response to the RFP. The City expects each Respondent’s Compliance Plan to address ACDBE participation by outlining in great detail, the types of concession participation that the Respondent plans on providing in each Hotel and minimum number of concessions and concession locations it would provide for the Hotel Projects as a whole. Final ACDBE compliance plans will need to be submitted on a specified date still to be determined at a time when the Technical Services/Pre-Opening Services portion of the work is complete or near complete and the Design Build/ Design Bid Build portion of the Hotels is well underway. Is the ACDBE Conference Call presentation available for download? Yes. It has been posted to the data room. How does the concessionaire that operates the food and beverage (“F&B”) concept receive payment? The Operator and the concessionaire will enter into a concessions and leasehold agreement that will identify compensation terms to CDA which will include Minimum Annual Guarantee, percentage rent, and contingency fees. The concessionaire profit will be generated from sales, less percentage of sales owed to CDA, cost of goods sold, and general and administrative expenses. Will the Operator provide the capital for build out of the F&B concept, or does the CDA provide the capital?F&B restaurants that will become part of the Hotel will be the responsibility of the owner/operator of the restaurant. The CDA, together with the Hotel Operator will allocate space within the building, based on the development plans, to allow build out of the space. The capital investment in food & beverage (“F&B”) build-out will likely depend on the operating and/or leasing structure for the F&B space. Typically, F&B operated by the Operator would require an investment by CDA as the Hotel owner. If the Operator sub-leases space to a concessionaire, that concessionaire will be responsible for the build-out of the concession space. F&B concessions space is eligible for ACDBE participation regardless of who operates the concept, the Hotel Operator or sublessee, as long as all ACDBE requirements are met. In the event that a tenant is required to build-out of F&B space, these activities will likely fall under FF&E and OS&E as defined in the RFP, which would then be subject to MBE/WBE requirements, and not ACDBE requirements and should be proposed in the Hotel Operator’s Operations Plan and Compliance Plan.At the airport, does HMS host come up with the capital for build out of F&B space? Yes. Airports generally require a concessionaire to invest capital in all of the concession spaces leased to that concessionaire.Will we be able to submit additional questions after we receive this presentation? Yes. Additional questions regarding the subject matter covered by the Webinar were allowed to be submitted until Monday, February 6, 2017 at 12:00 p.m. CST. CDA noted that ACDBE partners do not necessarily have to be certified by the RFP due date. Will you include an addendum that clarifies this point? Please see Addendum No. 2 to the RFP for information regarding necessary content to meet the submission requirements for compliance. Regarding the ACDBE forms, may Respondents list potential ACDBE partners without a specific name?Yes. ACDBE partners that are not intended to be part of a joint venture would be listed out by type of service they will be providing. The City expects each Respondent’s Compliance Plan to address ACDBE participation by outlining in great detail, the types of concession participation that the Respondent plans on providing in each Hotel and minimum number of concessions and concession locations it would provide for the Hotel Projects as a whole. Joint venture partners, if any, must be identified at the time of response. The RFP provides direction regarding specific categories where ACDBE might be provided. Please see Section IX. Submission Requirements, B. Content, Tab 5 Compliance Plan as set forth in Addendum No. 2 to the RFP for further information. During any of the Scope of Services prior to Ongoing Management and Operations, will the Operator recommend MBE/WBE contractors to CDA? OR will CDA provide its own contractors for these services? For example, will the Operator provide interior design services in addition to CDA’s interior design contractor?The Operator will not recommend MBE/WBEs for the CDA to use, instead the Operator will use MBE/WBE subcontractors, suppliers, joint venture partners etc. to perform services required pursuant to the Technical Services Agreement. The CDA envisions that the Operator’s team may include interior designers and architects to act as consultants to ensure that the Hotel Projects adhere to Operator’s brand standards and the completed Hotels reflect Operator’s vision for its brand. It is possible however, that full interior design services (as opposed to interior design consulting services) will be provided by the Operator as part of the Technical and Pre-Opening Services for the Hotels. For this reason, the CDA has requested that pricing for full interior design services be included in the responses to the RFP. The Operator is encouraged, as part of its compliance plan, to use MBE/WBE designers and architects as consultants to advise CDA regarding its brand and implementation of its standards therefor.For the purposes of calculating ACDBE credit, would the revenue from an ACDBE-operated concession count as credit, or would the fee the ACDBE pays to the Operator count as credit?The calculation will be based on the % of revenues attributed to the certified ACDBE firm. Based on the RFP, the Hotel project in its totality considered a concession. Therefore, for any revenue generated by any component of the operation, in which a certified ACDBE entity is the owner, joint venture partner or subtenant, a percentage (consistent with ownership %) of the revenues generated by that operation (not rents) will be counted towards the goal.Is CDA expecting Respondents to propose a team of designers that meet the MBE/WBE goals as part of the Technical Assistance Services? Or will the DB/DBB RFP address the interior design services (distinct from the architectural components)?The CDA envisions that the Operator’s team may include interior designers and architects to act as consultants to ensure that the Hotel Projects adhere to Operator’s brand standards and the completed Hotels reflect Operator’s vision for its brand. It is possible however, that full interior design services (as opposed to interior design consulting services) will be provided by the Operator as part of the Technical and Pre-Opening Services for the Hotels. For this reason, the CDA has requested that pricing for full interior design services be included in the responses to the RFP. The Operator is encouraged, as part of its compliance plan, to use MBE/WBE designers and architects as consultants to advise CDA regarding its brand and implementation of its standards.When will financial statements be provided for the existing building?Financial statements have been uploaded to the data room. For the possibility of joint-venture, is there a list of companies that have requested this RFP?Please refer to the list of Attendees to the Pre-Proposal Conference posted in the data room. The second to last slide in the presentation indicated that MBE/WBE involved in selected Operator’s Technical Assistance Services Team cannot be considered for the teaming of the DB/DBB RFP, is this correct?Yes. Regarding the historical revenue/expenses from the 860 Room Hilton. Please clarify that the Rent Payments Column is the Rent payment that Hilton had to make to the City for the use of the land and not a “rent Roll-up” from all the revenue generating leases within the hotel. Yes. The Rent Payments Column is the Rent payment that Hilton made to the City.Please confirm it is CDA’s intent to have the Interior Design Services for both Hotels (not base-building / core &shell architectural/engineering services) be included as part of the Technical Services scope of work for this RFP. Despite the previous references to interior design services in the RFP and RFP Addendum #1 (see below and highlighted in yellow), on the Webinar Call ( on Wed 2/1/17), there was confusing information providing during the call. RFP Addendum No 1 (dated 12/5/16)SECTION II: QUESTIONS AND ANSWERS/CLARIFICATIONS3.?????? Is interior design and furniture design in the Operator’s Contract or in the DB or DBB?CDA intends the furniture design to be part of the Operator’s scope and an area where MBE/WBE participation could be obtained for the project.? For purposes of respondents’ proposals, both the furniture and interior design services should be included.? However, the CDA reserves the right to allocate the interior design responsibilities to the DB or DBB at a later time. 6.?????? Is the FF&E design/purchase part of the Operator’s Contract or part of the DB/DBB contract?This is part of the Operator’s scope and an area where MBE/WBE participation could be obtained for the project.? For purposes of respondents’ proposals, these services should be included. REQUEST FOR PROPOSALS (dated 11/9/16)VII. Scope of Management ServicesB. Purchasing and Installation of FF&E/OS&EThe selected Operator, in conjunction with the interior designer, will be responsible for preparing specifications and procuring all FF&E/OS&E that is not included in the scope of the DB or DBB team’s, or teams’, work.Yes. The CDA envisions that the Operator’s team may include interior designers and architects to act as consultants to ensure that the Hotel Projects adhere to Operator’s brand standards and the completed Hotels reflect Operator’s vision for its brand. It is possible however, that full interior design services (as opposed to interior design consulting services) will be provided by the Operator as part of the Technical and Pre-Opening Services for the Hotels. For this reason, the CDA has requested that pricing for full interior design services be included in the responses to the RFP.Can the O’Hare 2021 Capital Plan and Sustainable Airport Manual, as referenced in the RFP, be posted in the RFP Data Room (there still are not listed there) or provide instruction as to where to get these documents online?The Sustainable Airport Manual may be downloaded here: O’Hare 2021 Capital Plan is not relevant to preparing a Hotel Operator proposal and will not be provided to respondents. Per the content reviewed during the webinar, via the Technical Assistance Services it was suggested the MBE/WBE requirements could be satisfied. However, it was also stated there would be a separate RFP for the design services once a management team is selected. Can you please clarify how the CDA foresees design services supporting a management team's submittal for the current RFP and how design services will possibly be required via a future RFP? Technical Assistance Services are outlined on page 15 of the RFP. These services include acting as an owner's representative on CDA's behalf, and in close coordination with CDA, to provide design review and construction review during the programming, design, and construction of both the renovation of the Existing Hotel (“Existing Hotel Project”) and construction of the New Hotel (the “New Hotel Project”) (together the “Hotel Projects”). The CDA envisions that the Operator’s team may include interior designers and architects to act as consultants to ensure that the Hotel Projects adhere to Operator’s brand standards and the completed Hotels reflect Operator’s vision for its brand. It is possible however, that full interior design services (as opposed to interior design consulting services) will be provided by the Operator as part of the Technical and Pre-Opening Services for the Hotels. For this reason, the CDA has requested that pricing for full interior design services be included in the responses to the RFP. The selected Operator will also be responsible for procurement, delivery, warehousing, and installation of the Furniture, Fixtures, & Equipment (“FF&E”)/Operating Supplies & Equipment (“OS&E”), as outlined on page 15 and 16 of the RFP. The CDA will purchase the necessary FF&E and OS&E.The Technical Assistance Services, including with Purchasing and Installation of Furniture, Fixtures, & Equipment (“FF&E”)/Operating Supplies & Equipment (“OS&E”), Pre-Opening Services, are separate and distinct from the Design Build or Design Bid Build services, which CDA will procure separately.Do all Respondents have to sign a Labor Peace Agreement?All Operator Respondents and the identified partners and subtenants to the Operator of the Hotel concession must complete and submit acknowledgements of the Labor Peace Agreement regulatory requirement (Exhibit F) at the time of Proposal. Entities claiming the small business exemption should submit Exhibit G in lieu of Exhibit F. Failure to provide either Exhibit F or Exhibit G for respondent and all applicable partners and subtenants may result in the proposal being deemed non-responsive. The Labor Peace Agreement requirement does not apply to partners, subcontractors or subconsultants who will only be providing Technical and Pre-Opening Services. *** ................
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