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7b_Attach D REQUEST FOR PROPOSALS FOR THE MANAGEMENT AND OPERATION OF ON-DEMAND TAXICAB AND FOR-HIRE VEHICLE SERVICES AT SEATTLE-TACOMA INTERNATIONAL AIRPORT RFP # 2016-ABD-1 ADDENDUM #3 Port of Seattle Seattle-Tacoma International Airport Airport Operations Pacific Highway South Seattle, WA REQUEST FOR PROPOSALS FOR THE MANAGEMENT AND OPERATION OF ON-DEMAND TAXICAB AND FOR-HIRE VEHICLE SERVICES AT SEATTLE-TACOMA INTERNATIONAL AIRPORT ADDENDUM #3 February 17, 2016 To All Prospective Proposers: I. Plan Holder List. The Port Procurement and Roster Management System (PRMS) has been updated to allow all registered users the ability to see the list of plan holders within the PRMS system. Previously, registered users were not able to see the list of plan holders. II. Pre-Proposal Meeting. 1. A copy of the PowerPoint Presentation utilized at the Pre-Proposal Meeting is attached to this Addendum #3. 2. A copy of the sign-in sheet from the Pre-Proposal Meeting is also attached to this Addendum #3. III. Answers to Questions Submitted: 1. Why dual licensed requirements? This is outright not right. Please see the answer to Question 1 in Addendum 2 regarding dual license requirements. 2. How are points awarded for technology? The two main areas within the RFP associated with technology include: a) Technology associated with trip data reporting, per Part II (Instructions), Section 2 (Qualifications), Item #5, will be evaluated as part of the Experience, Qualifications and References scoring criterion as listed in Part II (Instructions), Section 14 (Evaluation Criteria), Item Please also refer to the specific questions listed in Part III (Proposal Requirements), Item 2 b) Technology associated with customer feedback, per Part II (Instructions), Section 2 (Qualifications), Item #6 will be evaluated as part of the Customer Service scoring criterion, as listed in Part II (Instructions), Section 14 (Evaluation Criteria), Item Please also refer to the specific questions listed in Part III (Proposal Requirements), Item 4.G. 3. How will the Port measure market demand in the annual review of ratio between taxi and for-hire vehicles? For-hire will always say there is demand, Uber same, taxis, same? Is it in 5 minute guarantee? As part of its Proposal, each Proposer will set the initial ratio of taxicabs and for-hire vehicles in its fleet. Each proposer must also identify in detail how it intendes to make subsequent adjustments to fleet mix. That methodology must take account of the relative market demand between taxicabs and for-hire vehicles. The Port will evaluate each Proposer s methodology for determining market demand as part of the proposal review process. Specific questions associated with this evaluation can be found in Part III (Proposal Requirements), Item 4.H. 4. Single point of contact management structure: is there a recommended number of employees on-site, oversight, technology, manager, inspectors, etc.? Except as set forth in Section of the draft Concession Agreement, the Port has not established a minimum staffing level for this Proposal. 5. How will you manage 10,000 Uber drivers flooding airport which does not protect the RFP winner who may guarantee a minimum payment. While individual Proposers may offer a minimum annual guarantee (and potentially receive credit for offering one), neither the RFP nor the draft Concession Agreement require one. With respect to Transportation Network Companies (like Uber), the Port does not currently permit them to provide outbound service from the Airport. However, the Port is in negotiations with the Transporation Network Companies to find a way for them to do so. While the Port cannot make any guarantees around the precise structure of any agreement with the Transportation Network Companies, it is the Port s current intention to have them operate if an agreement can be reached under principal terms similar to those in outbound, on-demand Concession. This is expected to include provisions for specific pick-up locations and procedures, most likely on the 3rd floor of the garage in the ground transportation area. 6. What is Sea-Tac s concept of a method or procedure for deadhead calculation? Explain more about the plan to audit those trips. How will you score it? Please see Part III, Item 6.B. of the RFP (p. 15), which speaks specifically to this point: 3 Proposers must include information on how they will calculate the deadhead reduction plan addressed in [Item 6.A.] and what metrics will be used for such calculations. Proposer must describe what mechanism will be made available to Port staff to be able to audit and track the metrics and goals. 7. RFP says Port may award points for guaranteed payment/amount. Will points be awarded as a flat amount for highest? Or a gradient? The Port cannot answer this question without knowing the specific revenue proposals submitted in response to the RFP. The scoring for Part II, Section 14, Item 14.2 (Revenue to the Port) will be based on the elements required by Part III (Proposal Requirements), Item 5 (Revenue to the Port). The Port will consider guaranteed annual amounts and the specific per-trip amounts (including whether there are annual escalations and/or tiers for either) in light of both the Port s and Proposer s forecasted ridership. 8. Sea-Tac/Port has suggested points will be given to guaranteed minimum payment to maximize Port revenue. The fleet has been increased to 300 and wheelchair which will have a negative impact on individual driver income. How to you propose a successful sustainable family wage to balance these issues? The Port has limited the fleet size, in part, to help ensure that Drivers are committed to operating from the Airport and can achieve a reasonable income. The Port further expects the successful Proposer s fleet management processes will support these goals. 9. What data do the Port have to support the policy assumption that dual license vehicles reduce deadheading? Will you disclose that data to bidders, if it in fact does exist? Please see the answer to Question 1 in Addendum 2 regarding dual license requirements. 10. What percentage of airport-inbound trips currently carry passengers on an annual basis? Is this Port data or contractor data? The Port does not understand the question. The following chart shows the various modes of transportation utilized by enplaning passengers. 4 In addition, the deadhead reduction performance of the current outbound, on-demand concessionaire is set forth in response to Question 14, below. 11. Deadheading: a) 40% trips going to county? b) 98 cities are in county? c) Previous company how many % bring the customer back to airport? d) If be looked data that shows us for each airport car make 6-10 trips and waiting time be one hours for taxi? e) Bring back their trip they current company have data for deadheading? The Port does not understand the question. 12. Could you please send me, via a copy of the PowerPoint presentation from the pre-proposal conference meeting on Wednesday, February 10 regarding the Request for Proposals for the Management and Operation of On-Demand Taxi Cab and For-Hire Vehicle Services at Seattle- Tacoma International Airport (RFP #2016-ABD-1). Thanks in advance. Mark Gjurasic 5 The Port is providing the PowerPoint presentation to all plan holders. Please see Section II of this Addendum # In order to make a more informed bid, STITA asks whether the Port can provide the following additional information: The number of taxi trips with more than one passenger? The number of taxi trips with more than one passenger to a single location? The number of taxi trips that were shared by multiple people who were travelling to different hotels on the taxi route? The Port does not possess this information. 14. Is there any detail on the length of the trips from the airport such as the following information: The number of trips per year to downtown Seattle? The number of trips to Bellevue and the Eastside? The number of trips to Tacoma? The number of trips to locations north of downtown Seattle? The following chart shows the percentage of trips to various locations, based on eight months of data (June 2015-January 2016): 6 AREA % TOTAL TRIPS AREA % TOTAL TRIPS ADMIRAL 0.5% MONTLAKE 0.2% ALGONA 0.1% MUCKLESHOOT 0.1% AUBURN 0.1% N BEACON HILL 0.4% BALLARD 0.9% NEWCASTLE 0.5% BELLEVUE 4.9% NORTH DOWNTOWN 11.6% BLACK DIAMOND 0.0% NORTHGATE 0.2% BREMERTON 0.0% OAK H PT TOWNS 0.1% BROADVIEW 0.2% QUEEN ANNE 3.5% BURIEN 1.3% RAINIER BEACH 0.3% CAPITAL HILL 3.2% REDMOND 1.3% CATCH ALL 1.1% RENTON 1.5% CENTRAL DISTRIC 0.6% RICHMOND BEACH 0.1% COLUMBIA CITY 0.4% RIVERTON 1.0% CROSSROADS 1.0% ROOSEVELT 0.4% CROWN HILL 0.3% S BEACON HILL 0.2% DENNY REGRADE 2.1% SAMMAMISH 0.6% DES MOINES 0.8% SANDPOINT 0.8% DUVALL 0.1% SEATAC 8.7% EASTGATE 1.9% SHALLOW RAINIER 0.3% EASTLAKE 0.6% SHORELINE 0.1% ENUMCLAW 0.0% SKYKOMISH 0.0% EVERETT 0.2% SKYWAY 0.3% FAIRWOOD 0.7% Snoqualmie 0.0% FED WAY 0.3% SODO 1.7% FREMONT 0.8% SOUTH DOWNTOWN 9.6% GEORGETOWN 0.7% SOUTHCENTER 2.0% GREENLAKE 0.4% SOUTHPARK 0.7% GREENWOOD 0.3% STAR LAKE 0.2% INGLEWOOD 0.2% TACOMA 1.0% ISSAQUAH 0.2% TOTEM LAKE 0.4% KENT 1.1% TWIN LAKES 0.2% KENT EASTHILL 0.2% UNIVERSITY DIST 1.3% KIRKLAND 0.9% UPPER QUEEN ANN 0.9% LAKE CITY 0.3% VA HOSPITAL 0.0% LAKE FOREST PK 0.1% VASHON ISLAND 0.0% LAKE STEVENS 0.0% WALLINGFORD 1.1% LAKE UNION 2.7% WATERFRONT 2.2% LYNNWOOD 0.3% WEST SEATTLE 1.0% MADISON PARK 1.0% WESTWOOD 1.3% MAGNOLIA 1.1% WEYERHAUSER 0.1% MAPLE VALLEY 0.1% WHITE CENTER 0.6% MEDICAL AREA 1.7% WOODINVILLE 0.0% MERCER ISLAND 0.6% Subtotal 90.7% MILL CREEK 0.2% Unknown 9.3% 15. Why is there a requirement for dual licenses? Can you provide data regarding the Assuming the Port envisions that this requirement may reduce deadhead trips, is 7 there any data indicating that a dual license requirement will reduce deadhead trips? Performance of the current contract holder on deadhead reduction during the past 5 years? Please see the answer to Question 1 in Addendum 2 regarding dual license requirements. The deadhead reduction performance of the current outbound, on-demand concession is set forth in the following chart. Contract Year 1 Contract Year 2 Contract Year 3 Contract Year 4 Contract Year 5 Contract Total Outbound Trips 706, , , , ,472 3,910,463 Deadhead Trips 670, , , , ,164 3,679,677 Percentage of Deadhead Trips 94.9% 94.5% 95.5% 93.4% 92.7% 94.1% 16. On RFP Page 10, Section discusses the collusion issue. With regard to that issue, STITA has the following questions: Can the Port provide examples of dealings or interactions between potential bidders that are permitted and those that are prohibited? Is an exclusive Teaming Agreement that requires that a Proposer only submit a proposal as part of a team or joint venture a violation of Section and the referenced RCW provisions? The Port cannot provide potential proposers with an exhaustive list of examples. However, an agreement between two or more unrelated parties that only one of them would submit a bid, where the agreement was for the specific purpose of reducing competition, would violate these provisions. Likewise, an agreement between two or more unrelated parties to limit the amount of the per-trip fees each would propose would violate these requirements. As stated in the RFP, the Port is not seeking to limit the ways in which various market participants may combine their efforts to deliver a superior proposal. The Port is only concerned with discussions and arrangements that would violate Washington law. Given that the inquiry is necessarily fact specific, the Port is unwilling to provide an advance opinion regarding any particular discussions and/or arrangements. 17. Does the Port expect to permit TNC's to pick up passengers at the Airport during the potential term of the TAXI contract? Does the Port have any information regarding the TNC's that the Port will permit to stage at the Airport? Does the Port have an estimate or any data regarding the number of TNC trips from the Airport that are expected annually during the potential term of the Taxi contract? Please see the answer to Question 5, above. As noted, the Port is currently engaged in negotiations with Transportation Network Companies to allow for pick-up at the Airport. The Port is considering having the TNCs operate (active pick-ups) on the 3rd floor of the garage, similar to other pre-arranged and on-demand providers. In addition, the Port is considering allowing the TNCs to stage vehicles (driver/vehicle waiting for a pick-up 8 request) at the 160th St. holding lot. Port staff does not have any reliable data on TNC activity as they are not permitted to pick-up at the Airport and drop-off trips (which are allowed on Airport property) are not tracked at this time. 9 RFP #2016-ABD-1 For the Management and Operation of On- Demand Taxicabs and For-Hire Vehicle Services at Seattle-Tacoma International Airport 1 Agenda 1. Introduction 2. Historical Data of Sea-Tac Airport On-Demand Trips and Passengers 3. Goals of On-Demand Service at Sea-Tac Airport 4. Concession Highlights 5. Qualifications 6. Submittal Guidelines 7. Scoring Criteria 8. Evaluation Process 9. Protest Procedure 10. Exhibits of Operating and Staging Area 11. Schedule 12. Answers to Submitted Questions 13. Tour of Operating and Staging Area 2 Introduction Introduction of Port staff Reminder to sign-in if you haven t If you have questions, please write them on provided index cards and drop in box Other questions may be submitted through the Port s procurement site 3 Introduction Procurement and Roster Management System (PRMS) All proposers need to register on the Port s PRMS site in order to receive updates about this RFP Once you have created a login and have added your company to the system you should add your company to the Plan Holders list in PRMS Once on the Plan Holders list you will be able to ask questions (use the questions tab) and will receive updates when documents (Addenda) are added to the PRMS site for this RFP 4 Historical Data of Sea-Tac Airport On-Demand Trips and Passengers Taxi Trips (on-demand) 590, , , , , ,062 For-Hire Trips (pre-arranged)* 131,482 * 2015 represents first full year of Automatic Vehicle Identification (AVI) tagged For-Hire vehicles Taxi trips have grown 55% since start of previous concession agreement, or 9.3% on a compound annual basis For-Hire trips are included in the table above, however, they are on an exclusively pre-arranged basis and should be treated purely for informational purposes 5 Historical Data of Sea-Tac Airport On-Demand Trips and Passengers Annual Passengers (millions) Percentage Change 12.9% 4.9% 1.9% 1.9% 1.9% 1.9% 1.9% Airport passengers have grown 34% since start of previous concession in 2010, or 6.1% on a compound annual basis passengers are projections and the Port does not guarantee, or otherwise ensure, their accuracy 6 Goals of On-Demand Service 1. Provide convenient, efficient and safe transportation alternatives to the traveling public 2. Provide superior customer service 3. Maximize non-aeronautical revenue 4. Maintain excellent environmental standards 5. Leverage state of the art technology services to best serve users 6. Create opportunities for small and disadvantaged businesses 7 Concession Highlights 1. Concessionaire will implement a Port-approved initial allocation of Taxicabs and For-Hire Vehicles 2. Concessionaire will ensure that passengers wait no more than 5 minutes for an on-demand vehicle, this includes wheelchair passengers 3. Up to an additional fifty permits (beyond the 300) for wheelchair accessible vehicles may be issued 4. Proposals should include a deadhead reduction and trip efficiency plan 5. Concessionaire will be responsible for janitorial service, maintenance and general upkeep at the 160 th St. vehicle staging facility 6. Proposals should include the proposed implementation plan, including transition and fleet management 8 Qualifications 1. Registration with all appropriate regulatory bodies 2. Licensed to conduct and provide on-demand services directly or will contract providers for on-demand services 3. Must provide at least 300 dual licensed (Seattle and King County) vehicles for agreement Vehicles must consist of both taxicabs and for-hire vehicles In addition, an adequate number of wheelchair-accessible vehicles must be available to meet minimum service requirements 4. Fleet must meet Port green fleet requirements (45+ mpg or alternative fuel) by the commencement of agreement 5. Electronic reporting requirements 6. Customer service mechanism allowing for direct feedback to Port 9 Submittals Proposals due no later than 2 PM on March 1 (Tuesday) Proposer shall submit one hard copy proposal and may submit one electronic copy proposal (PDF format) on a USB drive prepared with complete answers, signed by an authorized official, enclosed in a sealed envelope properly addressed and must be either: Hand-delivered Mailed by certified or registered mail (acknowledged by receipt) Overnight courier All responses are limited to a maximum of 20 (8.5 x 11 ) pages double-sided Dividers not containing any substantive information or addenda sections do not count towards the 20 page limit, however addenda sections cannot exceed 10 pages Proposals must be accompanied by cashier s check, money order or surety bid bond payable to the Port of Seattle in the amount of $3,000 10 Locations for Proposal Delivery Drop-off (hand delivery): Port of Seattle Seattle-Tacoma International Airport Ground Transportation Booth Ground Transportation Plaza 3 rd floor plaza area of Airport parking facility Mail Port of Seattle Seattle-Tacoma International Airport Attn: Deborah Harrison Aviation Business Development International Boulevard Room A6012M Seattle, WA Scoring Criteria Criteria Customer Service All facets of customer experience including driver courtesy/conduct, training programs, use of advanced technology, etc. Revenue to the Port Evaluated on structure, including guaranteed and variable payments, as well as total amount to Port Experience, Qualifications and References Proposer must show experience in managing/operating taxi/for-hire vehicle services at airports or other high traffic public areas Deadhead Reduction & Trip Efficiency Plan Clearly articulate plan to reduce deadhead trips and commit to quarterly goals and describe how to measure against goals for audit purposes Financial Stability Proposer must demonstrate that it has financial capacity to meet requirements of agreement Total Points Possible 35 points 30 points 15 points 10 points 10 points 12 Evaluation Process The Port will initially evaluate each proposal to determine whether all qualifications are met Following the initial evaluation, remaining proposals will be further evaluated based on the evaluation criteria listed in RFP The Port reserves the right to interview Proposers, to ask for clarification or additional information and/or to investigate or conduct on-site visits of the place(s) of business if the Port determines this to be in its best interest 13 Protest Procedure Please see Exhibit 4 of the RFP document for protest procedures Compliance with the protest procedures is required to file any protest 14 Exhibit of Operating Area 15 Exhibit of Staging Area 16 Schedule Task Issuance of this RFP January 29, 2016 Date Pre-Proposal Conference February 10, 2016 Deadline for submittal of written questions Deadline for submittal of proposals February 12, 2016 March 1, 2016 Potential Interviews March 14-25, 2016 Anticipated award date of Agreement Anticipated commencement of Agreement April 4, 2016 July 1, 2016 The Port reserves the right to change any of the above dates, as it deems necessary in the Port s best interests. 17 Answers to Submitted Questions Question 1: I would like to ask a few questions to get clarification about the on-demand transportation R
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