REQUEST FOR PROPOSALS TO LEASE, DEVELOP AND OPERATE CONCESSIONS AT IQALUIT INTERNATIONAL AIRPORT DECEMBER 18 2014 Nunavut Airport Services Ltd. Request for Proposals Nunavut Airport Services Ltd. (“NASL”) invites the submission of proposals to lease, develop, and operate Food and Beverage and Retail Concessions at Iqaluit International Airport (the “Airport”). NASL is the authorized agent of the Government of Nunavut (“the GN”) for purposes of selecting and administering concession lease agreements for the Iqaluit International Airport. Proposals prepared in accordance with the instructions stated in this Request for Proposals (“RFP”) will be received by NASL until: 3:00 p.m. CST on March 20, 2015 Sealed proposals shall be delivered to: Nunavut Airport Services Ltd. Room 201 2000 Wellington Ave. Winnipeg, MB R3H 1C2 Attention: Ms Mary Ellen McDonald Late proposals will not be considered for selection and will be returned to the proponent unopened. NASL is not responsible for late or misdirected delivery of proposals. Please keep in mind that proposals sent from outside of Canada will be processed through customs, which may delay transmission. One signed original and one copy of the proposal shall be submitted in a sealed envelope or container. Please also include one copy of the proposal on either a flash drive or DVD. Each envelope or container must be clearly marked on the outside with the notation “Request for Proposals - Concessions.” Proponent’s name and address must be on the outside of the envelope or container. No responses will be accepted after the stated deadline. The Request for Proposals packet may be downloaded from NASL’S website at www.wasco.ca NASL is offering two distinct opportunities to develop, operate and manage concessions at the Airport. Proponents may submit proposals for one or both of the concessions. NASL will award the offered concession options to the qualified and responsible proponent who offers the best overall proposal for each package in consideration of the Selection Criteria. However NASL retains the discretion to award both packages to any one proponent. NASL’s primary objectives for the concessions program are as follows: o o o o o Provide quality customer service Provide quality, variety and unique products suited to the market Introduce and maintain value for money and competitive value pricing Provide well known international and local brands Maximize sales and optimize revenues NASL has specific goals which it expects the successful proponent to achieve, as follows: o o Develop attractive, well-appointed, interior and exterior displays that are striking, stimulate optimum sales and meet the requirements of the Tenant Design and Construction Guideline. Develop a merchandise mix that appeals to and satisfies the 2 Nunavut Airport Services Ltd. o Request for Proposals changing wants, needs, and desires of the full spectrum of the market with distinct Iqaluit/Nunavut offerings. Create an ongoing market research/customer satisfaction program that will keep the concessionaire and NASL informed about current market trends and customer preferences. NASL is not precluded from negotiating with the selected proponent(s) to modify proposals to best suit the needs of NASL and the GN. NASL also reserves the right to reject proposals from proponents that have pending litigation or claims with NASL or the GN, or if such proposal includes a proposed subcontractor, subtenant or supplier that has pending litigation or claims with NASL or the GN, if NASL determines, in its sole discretion, such litigation or claims may adversely affect the ability of the parties to work efficiently and effectively under any of the contracts contemplated by this RFP, or for any other reason as determined by NASL. As it is the purpose of NASL to obtain a proposal most suitable to the interests of NASL and the GN, NASL reserves the right to waive any irregularity or insufficiency in any proposal submitted, to waive any informalities, technicalities or omissions, and to accept the proposal(s) deemed most favourable to the interest of NASL. NASL has the right not to accept any proposal. 3 Nunavut Airport Services Ltd. Request for Proposals 1.0 Project Background and Concessions Program ........................................ 6 1.1 Historical Concession Activity............................................................... 10 1.2 Iqaluit International Airport Redevelopment Project ............ 10 2.0 Submission, Selection and Contracting Procedures ....................... 11 2.1 Schedule ................................................................................................................... 11 2.2 Proposal Due Date and Time ........................................................................ 11 2.3 Minimum Qualifications .................................................................................. 11 2.4 Pre-Proposal Conference ............................................................................... 12 2.5 Questions ................................................................................................................. 13 2.6 Submission of Multiple Proposals .......................................................... 13 2.7 Proposal Withdrawal ......................................................................................... 14 2.8 NASL’s Right to Cancel, Reject or Reissue RFP........................... 14 2.9 Award and Rejection ......................................................................................... 14 2.10 Evaluation Procedure................................................................................... 15 2.11 Consent to Investigation ......................................................................... 15 2.12 Proponent Interview ..................................................................................... 15 2.13 Execution of Concession Agreement ................................................... 15 2.14 Selection Criteria ....................................................................................... 16 2.15 Proponent’s Cost of Proposal Preparation................................... 18 2.16 Ownership ............................................................................................................. 18 2.17 Representation by Brokers....................................................................... 18 2.18 Confidentiality............................................................................................... 18 2.19 Interpretation of RFP ................................................................................ 18 2.20 Disclaimer........................................................................................................... 18 2.21 Use of Request for Proposal .................................................................. 19 3.0 Scope and Conditions of the Offered Concessions .......................... 20 3.1 Overview ................................................................................................................... 20 3.2 Premises ................................................................................................................... 20 3.3 Description of Packages ............................................................................... 20 3.4 Capital Investment and Improvements................................................... 21 3.5 Condition of Premises .................................................................................... 22 3.6 Term of Concession Agreement ................................................................... 22 3.7 Late Opening Fees .............................................................................................. 22 3.8 Compensation to NASL....................................................................................... 22 3.9 Required Compliance ......................................................................................... 23 3.10 Personnel Background Checks .................................................................. 23 3.11 Exclusivity ........................................................................................................ 24 3.12 Value Pricing ................................................................................................... 24 3.13 Hours of Operation ....................................................................................... 24 3.14 Official Languages ....................................................................................... 24 3.15 Insurance Coverage, Release and Indemnification .................. 25 3.16 Performance Bond ............................................................................................ 25 3.17 Performance Standards ................................................................................ 25 4.0 Merchandising Plan and Concepts ................................................................ 26 4.1 Recommended Merchandising Plan............................................................... 26 5.0 Proposal Format and Instructions .............................................................. 28 Exhibit A Passenger Profile ...................................................................................... 34 APPENDIX 1 ............................................................................................................................... 48 AIR TERMINAL BUILDING PROFORMA DRAWING ...................................................... 48 APPENDIX 2 ............................................................................................................................... 49 4 Nunavut Airport Services Ltd. Request for Proposals FORM OF CONCESSION AGREEMENT ............................................................................. 49 APPENDIX 3............................................................................................................................... 78 TENANT DESIGN & CONSTRUCTION GUIDELINE ....................................................... 78 APPENDIX 4............................................................................................................................... 79 REQUIRED PROPOSAL FORMS ........................................................................................... 79 Form 1 ....................................................................................................................................... 79 Business Information Statement ............................................................................................... 79 Form 2 Proposal Affidavit ........................................................................................................ 88 Form 3 Form of References ...................................................................................................... 92 Form 4 Experience Statement ................................................................................................... 93 Form 5 Financial Information Statement .................................................................................. 96 Form 6 Compensation to NASL ............................................................................................... 99 Form 7 Projected Sales, Rent, Net Income, and Cash Flow ................................................... 100 Form 8 Capital Investment and Financing Plan...................................................................... 101 APPENDIX 5............................................................................................................................. 102 SUPPLY CHAIN SECURITY PROGRAM ........................................................................... 102 APPENDIX 6 – Proposal Evaluation ........................................................................ 107 5 Nunavut Airport Services Ltd. 1.0 PROJECT BACKGROUND AND Request for Proposals CONCESSIONS PROGRAM In 2011 the GN commissioned a functional space program for a proposed new Airport Terminal Building (ATB) at Iqaluit International Airport. The current terminal facilities at the Airport face significant space deficiencies which result in unacceptable levels of service, severe congestion during peak periods, and delays. This facility has exceeded its design capacity and must be replaced with an expanded modern facility. Under the terms of a Project Agreement with Arctic Infrastructure Partners, NASL is to operate the existing ATB until mid-2017 when NASL will take over operations of a newly constructed ATB based on the functional program as outlined below. In addressing the existing and future needs of air travelers, an ATB is required which meets the functional and regulatory requirements of its stakeholders, including the air transportation industry, the Canadian Air Transport Security Authority (CATSA) and the Canada Border Services Agency (CBSA). As well, an ATB must provide a level of service and amenity to the traveling public as would be expected for the capital of Nunavut. The ATB is the primary interface between the aircraft and the ground-based passenger processing functions. The ATB includes facilities for the processing of passengers and their baggage, as well as providing passenger amenities, air carrier/airport administration functions and support facilities. The terminal building will serve primarily those passengers whose trips begin or end in Iqaluit. These are described as ‘origin/destination’ passengers. However, approximately 15% of the current passengers use Iqaluit as a point at which to transfer to flights for onward destinations. These are described as ‘connecting’ passengers. The ATB will meet the functional requirements for both origin/destination passengers as well as connecting passengers. Air service from Iqaluit to remote Nunavut communities does not require CATSA pre-board security screening. Flights to southern destinations, such as Ottawa or Montreal, do require pre-board security screening. The ATB will accommodate the functionality to support both screened and non-screened air service and will provide appropriate security measures as required by Transport Canada to separate these two streams of passengers. Iqaluit Airport as of June 2014 includes limited seasonal international service with flights to Nuuk, Greenland utilizing Bombardier Dash 8-200 aircraft. The Airport Master Plan prepared for Iqaluit Airport suggests that international tourism in the future may also generate flights from Europe operating Boeing 767300 aircraft with seating for 250 passengers. Although this may occur on an ad-hoc basis, unless this size of flight operates regularly, it is unlikely that the CBSA will provide the local staff or resources to fully accommodate such operations. A more likely future scenario is that sustained international air service will be established between Iqaluit and Greenland, operating regional aircraft of 75 seats or less. Therefore, assuming a typical peak period load factor of 80%, the ATB shall be designed 6 Nunavut Airport Services Ltd. Request for Proposals to accommodate a peak hour international arrival of approximately 60 passengers. The Airport is deemed as an alternate airport on Polar routes, and on occasion aircraft divert to the airport because of mechanical or medical emergency reasons. Occurrences where passengers must deplane the aircraft are rare and for that reason the ATB, including CBSA facilities, will not be specifically designed to accommodate these types of demands. At present the Airport is served primarily by two air carriers (Canadian North and First Air) which provide daily non-stop jet service to southern Canada as well as turboprop service to remote communities within Nunavut. In addition, the air carriers also provide jet service three times a week to Yellowknife via Rankin Inlet. In the recent past, Iqaluit has also been served on a seasonal basis by Air Canada. A number of the jet operations and most of the turboprop operations to/from Iqaluit utilize aircraft which are capable of simultaneously accommodating both cargo and passengers. These ‘combi’ type aircraft are typical of northern air operations. The Boeing 737-200 aircraft which are currently used by Canadian North and First Air are approaching 40 years of age and are currently being replaced by newer 737 models in both configurations, full passenger and combi. Many of the air carriers operating into northern Canada are beginning to utilize ‘passenger only’ aircraft into the larger northern communities. These aircraft have passenger capacities which range from approximately 100 to 150 seats. Similarly, in the future it is likely that air carriers will upgrade their current turboprop fleet of aircraft. Current regional aircraft types include the Bombardier Dash 8-100, ATR 42 and ATR 72-100. In the future it is likely these aircraft will continue to operate and will be supplemented with newer, larger models such as the Dash 8-300, Dash 8-Q400 and ATR 72-200. Passenger activity forecasts were prepared in 2006 as part of the Iqaluit International Airport Master Plan and have not been updated. Table 1-1 describes the low, medium and high passenger activity forecasts as well as provides historical passenger activity. It should be noted that the historical passenger activity for the years 2008 and 2010 exceeds the low/medium/high forecasts provided in the Airport Master Plan for the same time period. Given that the Iqaluit projects an annual growth rate of 2.87% to the year 2030 and that the growth of passenger activity generally reflects the growth in the population of the community, it is anticipated that future growth in passenger activity will likely be reflected by the ‘medium to high’ forecast scenarios presented in Table 1-1. Table 1-1 Historical Enplanement Activity (calendar years) 7 Nunavut Airport Services Ltd. Request for Proposals Table 0-1 Passenger Activity Forecast (Annual Passengers) Year 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031** 2032** Historical 64,018 70,669 70,157 59,000 64,000 63,000 66,509 70,017 72,362 68,193 78,574 83,355 87,861 97,436 100,038 107,240 102,388 109,317 110,512 113,130 116,184 Not Recorded 128,645 Low Medium High 114,226 115,486 116,814 118,157 119,516 120,891 122,281 123,687 125,110 127,337 129,603 131,910 134,258 136,648 139,517 142,447 145,439 148,493 151,611 154,795 158,046 161,365 164,753 168,213 171,578 175,010 114,226 115,486 117,819 120,199 122,627 125,104 127,631 130,209 132,839 136,014 139,265 142,593 146,001 150,192 154,502 158,936 163,498 168,190 173,017 177,983 183,091 188,346 193,751 199,312 205,032 210,917 114,226 115,486 118,639 121,878 125,205 128,623 132,134 135,742 139,447 144,314 149,351 154,563 159,957 165,540 171,185 177,022 183,059 189,301 195,756 202,431 209,334 216,472 223,854 231,488 239,359 247,497 Source: Master Plan, Iqaluit International Airport, LPS AVIA, January 2011, and Stats Canada **Extrapolated data Note that no assurance can be given as to the levels of aviation activity that will be achieved at the Airport in the future. Future traffic at the Airport is sensitive to a variety of factors including, but not limited to: 1) growth in population and economy of the area served by the Airport, 2) national and international economic conditions, 3) air carrier economics and air fares, 4) the availability and price of aviation fuel, 5) air carrier service and route networks, 6) the capacity of the air traffic control system, and 7) the capacity of the airport/airways system. At present, passenger activity is characterized by a single peak period which occurs at mid-day. This is illustrated in Figure 11. 8 Nunavut Airport Services Ltd. Request for Proposals Existing Peak Demand 300 250 Seats 200 150 Peak Hour Arrivals Seats 100 Peak Hour Departure Seats 50 5:00 6:30 8:00 9:30 11:00 12:30 14:00 15:30 17:00 18:30 20:00 21:30 23:00 0:30 0 Time Figure 1 - 1 Flight arrivals from the south coincide with arrivals from the remote communities. This schedule allows passengers the ability to travel from the south to the northern remote communities in one day, and conversely allows passengers to travel from the remote communities to the south in a single day. In discussions with the air carriers they stated that it is unlikely that they will deviate significantly from this schedule in the future. Air carriers also indicated that to accommodate future increases in passenger activity it is likely that they would increase the seating capacity during the peak period as well as add frequency. Given the importance of the current flight schedule in accommodating same day travel, in the future it is likely that demand during the peak hour will likely increase. The two major air carriers currently serving Iqaluit are slowly converting their older 737-200 aircraft to newer generation Boeing 737 models such as the 300, 400, and 500 series. Newer generation aircraft continue to be configured in both fill passenger and combi format. Similarly, turboprop aircraft currently serving remote communities will likely be configured to accommodate additional passengers and less cargo as passenger demand grows. Given these assumptions and a 20 year planning horizon, the future peak hour passenger activity could resemble Figure 1-2. 9 Nunavut Airport Services Ltd. Request for Proposals 450 400 350 300 250 200 150 100 50 0 Peak Hour Arrival Seats Peak Departure Hour Seats 5:00 6:30 8:00 9:30 11:00 12:30 14:00 15:30 17:00 18:30 20:00 21:30 23:00 0:30 Seats Potential Peak Demand Time Figure 1 – 2 Assuming a planning day load factor of 80%, the planning peak hour arrivals demand could be approximately 326 passengers. Of this, approximately 260 passengers would be from screened flights and 66 passengers from non-screened flights. Similarly, the planning peak hour departures demand could be approximately 328 passengers. Of this, approximately 260 passengers would be for screened flights and 68 passengers for non-screened flights. The ATB design accommodates these peak hour demand assumptions. 1.1 Historical Concession Activity The existing concessions program at the Airport is located presecurity and is comprised of a combined snack bar and gift shop. 1.2 Iqaluit International Airport Redevelopment Project Airport Redevelopment Program at a glance: Specifications Airport Terminal Building size: Approximately 9,935 m² Surface parking lot, approximately100 stalls Airside construction: resurfaced runway, apron and repositioned taxiways: Approximately 400,000m2 Combined Services Building (CSB) Approximately 5,274m2 Highlights of Project schedule: May, 2014 – construction work on new air terminal building begins July 21, 2014 – NASL assumes operations at Iqaluit September, 2016 – power on in the new air terminal building August 9, 2017 – new air terminal building open to the public 10 Nunavut Airport Services Ltd. Request for Proposals 2.0 SUBMISSION, SELECTION 2.1 AND CONTRACTING PROCEDURES Schedule NASL has adopted the following tentative schedule for the submission of proposals; the selection, award and contracting of concessions; and the commencement of concession operations under this RFP: December 18, 2014 Release of RFP Janaury 15, 2015 Pre-proposal conference February 4,2015 Deadline for written questions March 20,2015 Proposal Due Date April 13-17,2015 Anticipated interviews with shortlisted proponents April 25-30,2015 Submission to GN for approval May 1-15,2015 Contracting October 15-31,2015 Tenant Design, Review, and Approval by GN February 28, 2017 Turnover of New Terminal concession spaces To Proponent for Fit-up August 9, 2017 Opening of New Terminal The schedule is subject to change without liability to NASL. Changes will be communicated to proponents. 2.2 Proposal Due Date and Time One signed original, one copy of submitted proposal and one copy of the proposal on flash drive or DVD must be received by NASL at the address specified herein no later than 3:00 p.m. CST on March 20 ,2015 (the “Proposal Due Date”). Late proposals will not be considered and will be returned to the proponent unopened. NASL is not responsible for late or misdirected delivery of proposals. No oral, facsimile, telephone or email proposals will be accepted. 2.3 Minimum Qualifications NASL has established the following minimum qualifications that a proponent must meet in order to be considered a qualified proponent: Financial Capability The proponent, including joint venture partners as appropriate and proposed subtenants, if any, must provide evidence of its ability to finance and undertake the monetary commitments required to successfully develop, construct, and operate the proposed concessions. Generally, this means that the proponent, including proposed subtenants separately, must have a) total capitalization greater than the sum of proposed investment and a working capital allowance equal to three months of projected sales, and b) a capital structure for the proposed concession generally comparable to the proponent’s overall capital structure. 11 Nunavut Airport Services Ltd. Request for Proposals Experience – Proponents The proponent, including joint venture partners as appropriate, must provide evidence that it has the necessary experience and capacity to fulfill the scope and conditions of the offered concessions (“Scope and Conditions of the Offered Concession”). At a minimum, the proponent must have at least three years of continuous experience, within the last five years, in the ownership, development, management, and/or operation of a concession that is acceptable to NASL and similar to that which is contemplated under this RFP. Generally, this means that the business by which experience is claimed must be similar food service or retailing concept(s) to the proposed concept(s). Experience – On-Site Management Proponent must provide evidence that its on-site management has the necessary experience to operate the proposed concessions. At a minimum, proposed on-site management personnel must have at least three years of continuous experience within the last five years, in the management and operation of a concession business that is acceptable to NASL and similar to that which is contemplated under this RFP. Generally, this means that the businesses by which experience is claimed must be (1) in the case of food & beverage concepts, a similar foodservice business; (2) in the case of retail concepts, a retail business; and (3) in all cases, proposed on-site management personnel should have at least three years’ experience in the management of similar operations. Proponent should demonstrate ongoing capability to manage turnover in personnel typical of a remote location so that experienced staff can be maintained beyond the initial opening date. Outstanding Claims The proponent must not be in default or arrearage under any previous or existing contract(s) with NASL or any political subdivision of the GN. Conflict of Interest No employee or official of NASL or any political subdivision of the GN may have any direct or indirect interest in the proponent, including, but not limited to, any joint venture partners or subtenants of the proponent. Inuit Beneficiaries Preference will be given to Inuit beneficiaries. Please see Appendix 6 for additional details on proposal evaluation. 2.4 Pre-Proposal Conference A pre-proposal conference will be held at 10:00 a.m. CST on January 15 2015 at the following location: The Frobisher Inn 505 Astro Hill (867) 979-2222 Iqaluit NU The purpose of this conference will be to discuss the requirements and objectives of the RFP and to clarify contractual issues and 12 Nunavut Airport Services Ltd. Request for Proposals questions. Representatives of NASL and the GN will be available to answer questions. NASL encourages potential proponents to submit questions in writing (in accordance with the instructions in “Questions”) prior to the Pre-Proposal Conference. NASL reminds prospective proponents and others that presentations, discussions, announcements, and verbal answers to questions offered at the PreProposal Conference are not considered authoritative and, therefore, should not be relied upon in the preparation of responses to this RFP. All questions asked at the conference, as well as those submitted prior to the conference, and the answers thereto, will be reduced to writing and distributed to all known RFP recipients and posted on the NASL’s website in the form of an addendum. Please RSVP to Mary Ellen McDonald by email at [email protected] no later than January 7, 2015 and indicate the number of people in your firm that will be attending the Pre-Proposal Conference. All interested parties are strongly encouraged to attend. 2.5 Questions Proponents having questions about this RFP must submit them in writing to the address below: Mary Ellen McDonald Director Corporate Development Nunavut Airport Services Ltd. 201 Administration Building 2000 Wellington Avenue Winnipeg, MB R3H 1C2 Facsimile 204-813-6041 Email: [email protected] All questions regarding the RFP must be submitted by February 4 2015. Please note NASL will not answer any questions verbally, except at the Pre-Proposal Conference. 2.6 Submission of Multiple Proposals The concession opportunity offered by this RFP has been divided into two packages, which are described in further detail on Table 3 (“Scope and Conditions of the Offered Concessions”): Table 3 Concession Packages Package Description Food & Beverage: Package A – Café, including kitchen, seating and storage Retail Concessions: Package B – Gift Shop, including shop and storage 13 Sq. Metres 165m2 73m2 Nunavut Airport Services Ltd. Request for Proposals Proponents may submit proposals for any one or more of the offered packages in any combination. However, NASL will have the discretion to award packages to one or more proponents as it deems, in its sole discretion, to be in the best interest of NASL and the Airport. No proponent shall submit more than one proposal for any of the offered packages. Collusion among proponents or the submission of more than one proposal under different names by any firm or individual shall be cause for rejection of all such proposals without consideration. 2.7 Proposal Withdrawal A proponent may withdraw proposals by written request prior to the Proposal Due Date and time stated. Such withdrawal does not preclude the submission of another timely proposal. After the Proposal Due Date and time, no proponent will be permitted to withdraw its proposal. The submission of a proposal will constitute a valid offer subject to acceptance by NASL for a period of 120 calendar days following the Proposal Due Date. 2.8 NASL’s Right to Cancel, Reject or Reissue RFP NASL reserves the right to reject any or all proposals and to invite new proposals, or take such other course of action as NASL deems appropriate at NASL’s sole and absolute discretion. NASL reserves the right to: • Waive any informality, technicality, proposal or proposing procedure. • Reject any or all proposals. • Reject any portion or portions of a proposal. • Reject proposals on the basis of proponent’s past performance, financial capabilities, completed schedule, and compliance with Federal, Territorial, and Municipal legislation. • Reissue the RFP with or without modification. • Specify approximate quantities in the RFP. • Modify the locations and sizes of the offered space. • Negotiate all proposal elements with any proponent. 2.9 or omission in any Award and Rejection It is NASL’s intent to award the concessions offered by this RFP to the qualified and responsible proponent who offers the best overall proposal for each package in consideration of the Selection Criteria (“Selection Criteria”), consistent with the Terms and Conditions of this RFP. It is the sole discretion of NASL to decide which proposal is the most suitable. NASL is not required to select the proposal with the highest proposed Percentage Fee Rate(s) or the highest projected compensation to NASL (as described “Compensation to NASL”). 14 Nunavut Airport Services Ltd. Request for Proposals Any one or more of the following, among others, may be considered sufficient for the rejection of any proponent’s proposal, regardless of such proponent’s qualifications in respect to the Selection Criteria: • Evidence of collusion among proponents. • Non-responsibility, as determined by NASL in its sole judgment, as shown by past work, references or other relevant factors. • Default on any existing obligation to NASL or including debt contract, as surety or otherwise. • Submission of a proposal that is incomplete, conditional, ambiguous, obscure or that contains alterations or irregularities of any kind. • Submission of a concession concept deemed by NASL, in its sole judgment, to be inconsistent with the goals and objectives of the concessions program, including its merchandising plan. the GN, 2.10 Evaluation Procedure All proposals submitted in a timely manner will be reviewed by an evaluation committee which will review proposals for completeness and conformance with the minimum qualifications, and award selection criteria points to each proposal based on Selection Criteria stated herein. Further guidance is provided in Appendix 6. 2.11 Consent to Investigation NASL’s determination as to whether a proponent is qualified and responsible will be based on information provided by the proponent in its proposal, interviews (if applicable) and other sources deemed to be valid and reliable by NASL. A concession will not be awarded until all investigations of the proponent’s business experience, financial responsibility, and character are completed to NASL’s and the GN’s satisfaction. By submitting a proposal, the proponent consents to any such investigations and agrees to cooperate therewith. 2.12 Proponent Interview Proponents may be invited to one or more interviews with NASL to discuss specific issues related to their proposals. Invited proponents will be given notice of the time and date of their interviews at the appropriate time. 2.13 Execution of Concession Agreement Upon notification of intent to award by NASL and prior to submittal to the GN, a selected proponent must execute and deliver to NASL a Concession Agreement (“Concession Agreement”). The Concession Agreement will be substantially similar to the Form of Concession Agreement attached hereto (Appendix 2), will incorporate provisions of this RFP and the selected proponent’s proposal, but may include amended or other terms and conditions as negotiated by NASL and the selected proponent. In addition to the partially 15 Nunavut Airport Services Ltd. Request for Proposals executed Concession Agreement, the selected proponent must deliver evidence of insurance, as described in the Concession Agreement. NASL’s Managing Director will act as agent for the GN, with the GN being the signatory to the Concession Agreement. If a selected proponent fails to execute a Concession Agreement within 30 calendar days after notification of intent to award, NASL reserves the right to withdraw the selection and reject the proposal, on written notification to the selected proponent. No rights, claims, interests, or liability shall arise from any failure to successfully negotiate or fully execute a Concession Agreement with any proponent, including a selected proponent. 2.14 Selection Criteria The criteria listed below (Table 4) will be considered in the evaluation of proposals together with any other criteria that the Committee deems appropriate. No one criteria or combination of criteria will be used to control the selection of the best overall proposal. 16 Nunavut Airport Services Ltd. Request for Proposals Table 4 Selection Criteria Weighting Experience and Qualifications – Individual Proponent The purpose of this criterion is to determine the ability of an individual proponent to deliver and operate the proposed concessions based on an assessment of their prior experience in Iqaluit and Nunavut and other airports or similar venues. This criterion includes an evaluation of the proponent’s experience with the proposed concepts, identified management team, and professional references. The evaluation under this criterion will apply to the proponent/subtenant and all constituent entities of the proponent/subtenant. Concept and Theme Development This criterion considers the nature and variety of proposed facilities including merchandising, inclusion of Nunavut concepts, themes and products, innovation and visual presentation. This criterion includes an evaluation of the breadth and depth of product offerings and fit with the merchandising plan. Design and Quality of Improvements This criterion considers the physical design and construction of the proposed gift shop and cafe including innovation and creativity of concepts, quality of materials, floor plans, circulation and queuing, quality of graphics and signage, use of the design control zone and the inclusion of Nunavut themes. Management and Operations Plan This criterion considers assessment of customer service including staffing levels in the gift shop and cafe, management support, logistics, training and customer service programs. This criterion also evaluates facility maintenance schedules, staff uniforms, inventory and cash controls, and security policies. Compensation to NASL This criterion considers the overall return to NASL. Inuit Content 10 This criterion considers the ownership of the proponent, the level of engagement of local resources as suppliers to the operation and Inuit beneficiaries as employees Inuit Labour Inuit Firms 20 10 25 20 10% 5% The Committee will also consider the past performance of the proponent, and their constituent individuals or entities as applicable, on other contracts with NASL or other related entities in terms of quality of work and compliance with the terms and conditions of those agreements. The Committee may solicit from government agencies or any other available sources, relevant information concerning the proponent’s record of past performance. 17 Nunavut Airport Services Ltd. Request for Proposals 2.15 Proponent’s Cost of Proposal Preparation All costs directly or indirectly related to preparation of a response to this RFP, or any interview required to supplement and/or clarify a proposal that may be required by NASL, shall be the sole responsibility, and shall be borne by the proponent. 2.16 Ownership All proposals and supplementary material will become the property of NASL. 2.17 Representation by Brokers NASL will not be responsible for any fees, expenses, or commissions for brokers or their agents. Communications by or between officers and employees of NASL and any potential or actual proponent broker or agent are not to be construed as an agreement to pay, nor will NASL pay any such fees, expenses or commissions. Proponent must hold NASL harmless from any claims, demands, actions, or judgments in connection with any such broker fees, expenses, or commissions. 2.18 Confidentiality All proposals submitted in response to this RFP will remain confidential until award of the Concession Agreements. NASL shall use its best efforts to keep confidential all proposals received from proponents. The material contained in the successful proposal(s) may be incorporated into the contract. Technical or commercial material included in the proposal may be disclosed, either in accordance with law or as required under NASL’s Contract with the GN. Information pertaining to NASL obtained by the proponent as a result of participation in this project is confidential and must not be disclosed without written authorization from NASL. In addition, proponents agree to keep any disclosed information regarding airport operations, security, property matters and financial affairs confidential. Proponents may, at NASL’s discretion, be required to enter into a confidentiality and non-disclosure agreement. 2.19 Interpretation of RFP Any clarification or interpretation or change to this RFP by NASL will be made in a written addendum distributed by email to all known recipients of the RFP and posted on NASL’s web site. Further, NASL advises prospective proponents to not rely on any explanation, clarification, interpretation, or approval made or given in any manner except by written addendum. Any such statements made by representatives of NASL at the Pre-Proposal Conference will be reduced to writing and included in an addendum. 2.20 Disclaimer The information contained in this RFP, attachments, exhibits, and appendices hereto, and any addendum that may be issued, is provided to assist prospective proponents in the preparation of proposals. Proponents should satisfy themselves by personal investigation or such other means as they may think necessary as to the conditions affecting the offered concessions. The information shown herein has been obtained from sources thought to be reliable, but NASL and its officers, employees, agents and contractors, are not liable 18 Nunavut Airport Services Ltd. Request for Proposals for the accuracy of the information or its use by prospective proponents. 2.21 Use of Request for Proposal This document, or any portion thereof, may not be used for any purpose other than the submission of proposals. 19 Nunavut Airport Services Ltd. 3.0 SCOPE 3.1 AND CONDITIONS Request for Proposals OF THE OFFERED CONCESSIONS Overview The following summarizes some of the key terms and conditions of the offered concessions that are to be incorporated in the Concession Agreement. This summary is not intended to be a complete description of the Concession Agreement. Prospective proponents are advised to thoroughly review the Form of Concession Agreement attached hereto (Appendix 2) to gain an understanding of NASL’s expectations regarding the development and operations of the offered concessions. In the event of a conflict between the Concession Agreement and this RFP, the terms of the Concession Agreement prevail. 3.2 Premises The concession locations to be leased to the selected proponents comprise approximately 238 square meters of space in 2 locations (“Premises”) in the non-secure or “ground side” area of the Airport. A merchandise plan showing the planned concession facilities is attached as Exhibit B. Proponents may submit proposals for one or both of the offered packages. However, NASL will have the discretion to award packages to one or more proponents as it deems, in its sole discretion, to be in the best interest of NASL and the Airport. The locations and areas are based on current construction plans and are subject to change without liability to NASL. 3.3 Description of Packages Through the use of architectural design features, high interior volume, lighting and other elements, the public concourse is designed to have a spatial feeling of prominence and grandness appropriate for the scale of building and its significance within Iqaluit and Nunavut. The public concourse includes space and feature walls which allow for the display of major artworks and/or tourism displays. The design of the space and feature walls includes provision for power data to support dynamic media displays. Ten percent (10%) of interior public space walls are considered feature walls for this purpose. Separate landside entrance vestibules to the public concourse are provided for both passenger departure and arrival functions. The ‘departures’ entry vestibule is located in close proximity to the passenger check-in function. The ‘arrivals’ entry vestibule is located in close proximity to the baggage claim function. Adjacent to the entry vestibules the appropriate use of glazing provides views from the public concourse to the curb. Public seating areas is located near baggage claim for meters/greeters awaiting the arrival of passengers and near the access point to pre-board security screening for those departing passengers wishing to remain in the non-sterile area of the terminal building. The ATB also is an informal place of congregation for the local community and provisions are being made to accommodate space for small groups of people gathered together. Seating for approximately 15% of the planning peak hour passenger 20 Nunavut Airport Services Ltd. Request for Proposals demand (both arrivals and departures) is accommodated in the public concourse. Some of this seating requirement is provided through seating associated with food and beverage concessions. Retail concessions include revenue generating functions that serve the traveling public, well-wishers and airport employees. Concessions in the public areas include a sit-down food and beverage concession and news/gift shop. The food and beverage concession area is designed to support a full service kitchen including appliances for food frying. The ATB design has the flexibility to accommodate the future expansion of retail concession space as warranted by increases in passenger activity and consumer demand. Retail concessions are located adjacent to major pedestrian flows and have good exposure to the public but should not impede the functionality or operation of the ATB. Food and beverage concessions are located where they can be accessed by the general public and have direct views of arriving passengers. Food and beverage, sit down concession (package A) is estimated to be 165 m2 while the new/gift shop (package B) is estimated to be 73 m2. See Appendix 1 for drawing of air terminal indicating the location of the two packages. 3.4 building space Capital Investment and Improvements The Concession Agreement will include a provision that the minimum total capital investment in facilities (to include leasehold improvements; fixtures, furnishings and equipment; and design and engineering costs, not to exceed 15% of construction costs) will be at least 90% of the amount specified in the concessionaire’s proposal. The concessionaire shall pay to NASL as additional rent the amount of any shortfall. NASL requires a minimum average capital investment as follows: Food & Beverage: $3,065 CAD per square meter Retail Concession: $2,745 CAD per square meter In addition to the minimum initial capital investment, NASL requires concessionaires to refurbish and/or re-concept each location at the midpoint of the Term. NASL has established a minimum average refurbishment/re-concepting expenditure of $1,500 CAD per square meter. The scope and extent of necessary renovation, remodeling, upgrade, redecorating and/or re-concepting for each Facility shall be jointly determined by NASL and Concessionaire. Concessionaires will be required to engage and compensate Stantec (1088C Noble House, Iqaluit, Nunavut X0A 0H0) to provide design and project management services, including coordination with the base building contractor, in order to meet opening date deadlines. NASL will not provide reimbursement to the 21 Nunavut Airport Services Ltd. concessionaire for these coordination services. 3.5 Request for Proposals design and project management and Condition of Premises Concessionaires will receive Premises in a condition consistent with the terms of the Tenant Design and Construction Guidelines (Appendix 3). All improvements will be the responsibility of the concessionaire and will be subject to the Tenant Design Criteria. NASL reserves the right to review and approve all improvements and subsequent changes to the Premises including, but not limited to, the initial design and construction of leasehold improvements and furnishings, fixtures and equipment as well as later changes related to refurbishment and/or remerchandising of the Premises. All improvements must conform to the requirements of the Concession Agreement and Tenant Design and Construction Guidelines and also comply with all Territorial, Municipal and Federal laws and regulations and industry standards in all respects. 3.6 Term of Concession Agreement Each of the Concession Agreements will become effective and binding on the date of its signature by the NASL (the “Effective Date”). The Term for all concessionaires will be for ten (10) years and will begin on the day the Terminal opens to passengers for airline activity (but not less than 180 days following delivery of the Premises to a concessionaire). NASL will reserve the right to conform lease terms, in its sole discretion, in order to achieve coterminous expiration dates with the concessions agreement. However, the Term of the Agreement will not be less than the terms stated in this subsection, except as will be provided in the cancellation and termination provisions of the Concession Agreement. 3.7 Late Opening Fees NASL will require each concession location included in the Premises to be substantially improved and open for business as of the opening of the Terminal. If a particular location is not open for business when required, then NASL may assess Late Opening Fees at the rate of $1,000 per day per location until the location is open to the public for business, as a genuine pre-estimate of damages. 3.8 Compensation to NASL Concession Fee In consideration of the rights and privileges to be granted to the concessionaires by NASL, the concessionaires will pay to NASL on an annual basis, a concession fee equal to: 1) the Percentage Fee; or 2) Minimum Annual Guaranteed Fee, whichever is greater: Minimum Annual Guaranteed Fee NASL has established a Minimum Annual Guaranteed Fee (“MAG”) for the first year of the Term for each concession package as follows: 22 Nunavut Airport Services Ltd. Request for Proposals Package Food & Beverage MAG per square meter $540/ m2 Retail $410/ m2 The MAG will commence on the first day of the Term and be payable in equal monthly installments throughout the Term of the Concession Agreement. Beginning on the first day of the second year of the Term, MAG will be set at 85% of the prior year gross rent paid to NASL, but never less than the first year MAG. Percentage Fee Calculation and payment of the Percentage Fee will commence on the date the concessionaire begins retail or food service operations in any portion of the Premises. The proponent must propose a Percentage Fee Rate(s) for the Term by location, product category and/or revenue levels, as desired. Payment and Reconciliation of MAG and Percentage Fee The Concession Fee is earned by NASL on an annual basis. The concessionaire pays the MAG in equal monthly installments throughout the Term of the Concession Agreement. Beginning on the fifteenth day of the second month of the Term, and continuing through the end of the Term, the concessionaire must report sales and calculated Percentage Fee for the prior month; the concessionaire must also pay to NASL the amount, if any, by which Percentage Fee for the prior month exceeds the MAG previously paid for that month. Within 75 days after the end of the lease year, the MAG and Percentage Fee paid will be reconciled as described in the Form of Concession Agreement. 3.9 Required Compliance Concessionaire must comply with the applicable provisions of any Federal, Municipal, and/or Territorial occupational safety and health codes, electrical and building codes, food service codes, and all other applicable laws, regulations, ordinances, codes, and rules of any governmental entities that have jurisdiction. All licenses and permits required to operate the concession shall be obtained by the concessionaire at its own expense, and shall be maintained in full force and effect throughout the Term of the Concession Agreement. The concessionaire agrees to defend and indemnify NASL against all losses, expenses, and damages arising from violation of any of the above laws, regulations, ordinances, codes, and rules. The concessionaire must comply with the Supply Chain Security Program in place at the airport at all times. (See Appendix 5) 3.10 Personnel Background Checks Concessionaires shall be responsible for conducting background checks for each employee working or requiring access that is beyond the security checkpoint or as may be required by the Canadian Air Transport Security Authority (“CATSA”) or NASL. It is understood that the requirements of CATSA or NASL regarding security matters may change from time to time and concessionaires shall comply with 23 Nunavut Airport Services Ltd. Request for Proposals all such requirements. Any fines paid by NASL for security violation by a concessionaire shall be reimbursed to NASL by the concessionaire. 3.11 Exclusivity NASL will not enter into an exclusive Concession Agreement with any concessionaire. At any time during the Term of the Concession Agreement, NASL, at its own discretion, may enter into other agreements with other entities or individuals for food or retail concepts similar to those of the concessionaire. It is understood and agreed that nothing herein is to be construed to grant or authorize the granting of an exclusive right to an individual concessionaire. 3.12 Value Pricing NASL desires value pricing by concessionaires at the Airport. Accordingly, NASL has established a pricing policy generally as follows: • Products sold by the concessionaire shall not exceed the prices charged for equivalent or similar items in comparable off-Airport locations (excluding special promotional items) within the Iqaluit area. Comparable off-Airport locations will be determined by NASL, in consultation with the concessionaire, and may change throughout the Term as determined necessary by NASL. The following venues are excluded as comparable locations: concessions located in civic sporting facilities, amusement and entertainment venues and hotels. • Prior to the opening of each facility, and semi-annually thereafter throughout the Term of the Concession Agreement, the concessionaire shall submit to NASL a market basket survey of prices at the agreed comparable off-Airport locations. Failure to comply with the value pricing policy may result in fines, as described in “Performance Standards.” 3.13 Hours of Operation Concessionaire will open each concession location every day during such hours as stated in its Concession Agreement. Generally, stores are to be open to serve the first through the last scheduled departing flight, but NASL may require other hours. At the discretion of NASL, concessionaires may be required to extend their hours from time to time to accommodate passengers from flights that are delayed. Failure to open a location during agreed hours shall be cause for assessment of fees, as described in “Performance Standards.” 3.14 Official Languages The concessionaire shall display or make available to the public in all four official languages – Inuktitut, Inuinnaqtun, French and English – all printed material including signs, notices, menus, and other information in connection with the concession operation, as set forth in the Concession Agreement. 24 Nunavut Airport Services Ltd. Request for Proposals 3.15 Insurance Coverage, Release and Indemnification The concessionaire shall provide and maintain certain insurance in full force and effect at all times during the Term of the Concession Agreement and shall release and indemnify NASL, all as described in the Concession Agreement. 3.16 Performance Bond The concessionaire, without expense to NASL, shall provide to NASL from the Effective Date through the expiration of the Term, a performance bond in an amount equal to 50% of the MAG as described in the attached Form of Concession Agreement (Appendix 2). 3.17 Performance Standards NASL desires to provide the traveling public, employees and other airport users the highest level of customer service and product quality. Accordingly, NASL has established various performance standards as will be specified in the Concession Agreement. NASL reasonably believes that failure by a concessionaire to adhere to the performance standards will result in significant inconvenience to the traveling public, employees and other airport users, adversely affect the overall concessions business at the Airport and reduce the amount of revenue to be paid to NASL. Consequently, NASL may assess fees in the following amounts for various failures to comply (Table 6). Table 6 Performance Standard Fees Failure to Comply Fee Required merchandise not available $500 per day Premises unclean, garbage not picked up $500 per day Signage policy infraction $50 per incident Pricing policy infraction (following two notices) $100 per occurrence Market Basket Survey is reported after the required deadline $100 per day Delivery and vendor access infractions $100 per occurrence Operating Hours infraction $100 first occurrence; $250 second occurrence; $500 third occurrence; $1,000 per occurrence thereafter Inadequate Staffing $100 first occurrence; $250 second occurrence; $500 third occurrence; $1,000 per occurrence thereafter 25 Nunavut Airport Services Ltd. 4.0 MERCHANDISING PLAN 4.1 AND Request for Proposals CONCEPTS Recommended Merchandising Plan NASL has adopted a recommended merchandising plan for the concessions program at the Airport (Table 7). Proponents are encouraged to propose a merchandising plan that is generally consistent with the recommended merchandising plan. However, NASL encourages creativity by proponents and will consider variations to the recommended merchandising plan. NASL reserves the right to reject concepts which it deems, in its sole judgment, to vary significantly from the recommended merchandising plan or to be inappropriate for the Airport. Table 7 Recommended Merchandise Concepts m2 Merchandise Concept 165 Landmark Café/Snack The menu should include a variety of freshly prepared light entrees such as sandwiches, salads, soups, wraps, and similar items. Fresh baked items could also be offered including a variety of cookies, pastries, bagels, muffins, brownies, and similar items. Beverages should include a variety of non-alcoholic beverages such as juices, water, soft drinks, and made to order coffee drinks. A take-out window should also be available so that passengers are able to purchase freshly prepared foods to go. These products should be of the highest quality and packaged for convenience. ID/Location Food & Beverage Groundside 26 Nunavut Airport Services Ltd. ID/Location Request for Proposals m2 Merchandise Concept 73 News/Convenience/Specialty Provide travelers with an extensive mix of reading materials, sundries, travel accessories, and souvenirs. Only convenience prepackaged food items and beverages (candy, snacks, canned/bottled beverages, etc.) may be offered at this location. Retail Package Groundside This location should offer specialty merchandise in a separate and distinct merchandise zone within the facility, occupying no less than [*] square meters. Specialty merchandise should focus on one or more distinct concepts, as shown in the suggested concept list below. These concepts are intended to provide examples of the type of merchandise that may be offered, but are guidelines only. NASL encourages creativity by proponent in terms of concept(s) and layout of the space. However, NASL reserves the right to reject proposed concepts which it deems, in its sole judgment, to be inconsistent with the overall merchandising plan for the Airport or inappropriate for the Airport. Suggested Specialty Concepts: o o o o o o o o o o o o o o o o o o Art/Museum Merchandise Accessories Body Care/Cosmetics Business/Computer Accessories Candy/Chocolate/Nuts – sold by bulk Casual Apparel Children’s Apparel/Toys Electronics/Gadgets Entertainment Theme Jewelry/Watches Leather Goods Packaged Foods Spa Retail Sports Theme Stationery/Office Supplies Sunglasses Travel Accessories Iqaluit/Nunavut Themed Because of the unique culture of the Iqaluit area, NASL will consider regional gifts and souvenir concepts that focus on the unique aspects of Iqaluit and/or the Nunavut area. 27 Nunavut Airport Services Ltd. 5.0 PROPOSAL FORMAT AND Request for Proposals INSTRUCTIONS The proposal must include all of the following items and documents organized and tabulated in the requested order. A proponent may submit proposals for one or more of the offered packages in any combination under a single cover. Proponent must include all of the tabs in its proposal and indicate “NO PROPOSAL” in the corresponding sections for any package for which the proponent is not proposing. Proposals are to be prepared in such a way as to provide a straight forward, concise delineation of capabilities to satisfy the requirements of this RFP. Expensive bindings, coloured displays, and promotional materials are not necessary or encouraged (except as requested in the proposal instructions). Emphasis should be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements and on completeness and clarity of content. One signed original and one copy and one electronic copy of the proposal on flash drive or DVD shall be submitted on or before the Proposal Due Date and time. Proposals shall be organized and tabulated in the following order. Required proposal forms, where necessary, are attached to this RFP in Appendix 4 One signed original and one copy of the proposal shall be submitted in a sealed envelope or container. Please also include one copy of the proposal on either a flash drive or DVD. 1) Transmittal Letter 2) Executive Summary 3) Business Information Form 4) Executed Proposal Affidavit 5) Opinion of Legal Counsel 6) Business and Financial References 7) Experience and Qualifications Statement 8) Financial Statements 9) Methods of Management and Operation 10) Food & Beverage Store Concept and Design Compensation to NASL Projected Sales/Net Income and Cash Flow Capital Investment and Financing Plan 11) Retail Store Concept and Design Compensation to NASL Projected Sales/Net Income and Cash Flow Capital Investment and Financing Plan 28 Nunavut Airport Services Ltd. Request for Proposals 12) Other Information 13) Exceptions Tab 1) Transmittal Letter Each proponent must indicate the package(s) being proposed on and a return mailing address, contact person, telephone/fax numbers and email address as well as any pertinent facts or details of the proposal that the proponent desires to emphasize. The transmittal letter must be signed by an officer or other individual who has authority to bind the proponent. Tab 2) Executive Summary Each proponent must include an executive summary of no more than five pages that briefly summarizes the qualifications, experience, proposed packages, capital investment plan, and financial projections. Tab 3) Business Information Form Each proponent must furnish all information required in form of Form 1 (Appendix 4), and must be submitted with the proposal in the format requested. Statements must be complete and accurate. Information which is incomplete, conditional, ambiguous, obscure, or which contains alterations not called for, or irregularities of any kind, may be cause for the rejection of a proposal. By submission of a proposal, the proponent acknowledges and agrees that NASL has the right to make any inquiry or investigation that NASL deems appropriate to substantiate or supplement information contained in this business form and authorizes the release of any and all information sought in such inquiry or investigation to NASL. The proponent agrees to promptly execute any consents or authorizations required by NASL to enable NASL to conduct its inquiry or investigation. Tab 4) Executed Proposal Affidavit Proponent must include an executed Proposal Affidavit in Form 2 of (Appendix 4) to acknowledge that a) the proponent has received all sections and material comprising this RFP; b) the proposal is based upon all of the terms and conditions set forth in this RFP; and c) the proponent specifically agrees to provide concession services in the manner set forth in the proposal. Alterations, additions, and/or modifications to the form of affidavit will not be accepted and will be cause for rejection of the proposal. Tab 5) Opinion of Legal Counsel The proponent should provide an opinion from legal counsel stating, after due inquiry, whether or not litigation is pending or contemplated that could affect the proponent’s ability to undertake its proposal. Tab 6) References The proponent must list three current relevant contacts. These references must be the proponent’s primary contacts for day-today issues at the Airport, shopping center, etc. The concessions 29 Nunavut Airport Services Ltd. Request for Proposals operated by the proponent at these locations must be similar to those being proposed by the proponent. The proponent should use the format shown in Form 3 (Appendix 4) for each reference. If the proponent does not have three current airport/landlord contacts, then financial and/or related business references should be provided. Tab 7) Experience and Qualifications Statement The proponent should explain in detail the number of years and extent of the proponent’s experience, with special emphasis upon prior experience with the operation and management of concession facilities at airports, major transportation centers, shopping centers, or other relevant environments. The proponent should identify and provide resumes and details on the relevant experience of persons who will be directly involved in the management of this concession including, specifically, the on-site general manager. This section of the proposal should include, but is not limited to the following and be presented on Form 4 (Appendix 4): • Names of stores operated by the proponent in the prior five years and pictures of facilities • Description of concession concept(s) • History of the proponent’s concession experience • Three years sales history • Other information that supports the proponent’s experience as it pertains to the Proposal Tab 8) retail Financial Statements The proponent must submit to NASL the financial statements, prepared in accordance with International Financial Reporting Standards or Generally Accepted Accounting Principles, for NASL to determine, in its sole discretion, the proponent’s financial capability to undertake the concession(s) contemplated by this RFP as proposed by the proponent. Generally, this means the proponent must submit for itself, any significant constituent entity and parent entity (if any), a Balance Sheet, Income Statement, and Statement of Cash Flows (including footnote disclosures, if appropriate) for the current fiscal year-to-date, and the most recent three complete fiscal years. If available, financial statements audited or certified by Licensed Public Accountant should be submitted; otherwise, a notarized statement certifying the accuracy of the financial information and signed by an officer of the proposing entity must accompany the financial information. NASL reserves the right to obtain, at no cost to the proponent, financial and credit reports on the proponent and its partners, affiliates and subtenants, if any, to facilitate its financial evaluation of the proposal. Tab 9) Methods of Management and Operation Describe the specific plan for operation and the services that will be provided. Include the following: 30 Nunavut Airport Services Ltd. 1) Request for Proposals Staffing Plan Staffing plan is to include the number of management and non-management employees and the shifts to cover the operating hours for each location. 2) Customer Service Philosophy and Programs A description of the proponent’s goals with regard to customer service including examples of customer service surveys and the proposed customer service survey program’s frequency of use, data analysis methodology, and sample summary reports. Marketing programs Employee training programs Employee Policy Manual 3) Merchandise Logistics Delivery schedule of new goods Replenishment of on-site stock 4) Facility Maintenance Plan Policy for maintenance and repairs Frequency of cleaning and garbage disposal Replacement carpeting 5) of equipment, displays, fixtures, and Other Policies and Practices Inventory and cash controls including a description of proposed cash control system and make and model of cash register or point of sale equipment Security programs Tabs 10 – 11) Concessions Development Proposals For each of the offered concessions packages for which the proponent wishes to submit a proposal, please include the following information. This information should be provided for each package. If the proponent is choosing to not submit a proposal for any one of the offered packages, please include a page marked “No Proposal” under the appropriate tab. a) Store Concept and Design The proponent should submit the following information for each permanent location in sufficient detail to clearly define the proposed store. This information should include the following detailed descriptions: 1) Concession concept and theme including, as appropriate, a discussion of its relation to the Iqaluit area. 2) Proposed concession categories price range for each category. 3) Sources of merchandise, products, and supplies identifying in particular those items generally identified with Iqaluit. 31 and the approximate Nunavut Airport Services Ltd. Request for Proposals 4) Narrative description of the proposed capital improvements to be made to the space including seating areas (as appropriate), the dominant design theme and a discussion of its relation to the Iqaluit area. 5) Preliminary plans in sufficient detail to allow evaluation of the quality and design of the proposed tenant improvements including: • Layout and space plans of the facility showing points of sales, fixture layout, expected queuing and other pertinent features. • Renderings of the store that include the interior and exterior views of the facility and show the overall design of the space, general colour scheme, and fixtures. • Descriptions and photographs that demonstrate the quality of the various materials to be used within the store. (Proponents are not required to submit materials boards, but may submit ONE set of the material boards at their discretion.) • Renderings of proposed signage and graphics. interior and exterior All designs must conform to the Airport’s design standards as set forth in the Tenant Design and Construction Guideline. The proponent should identify its architectural team, specifying prior experience in the design of retail facilities (including resumes and project experience) with photographs of sample projects attached. b) Compensation to NASL State the Percentage Fee Rate(s) that the proponent proposes to pay for each year of the Concession Agreement, or portion thereof, to be applied to gross revenues. If the proponent wishes to propose multiple Percentage Fee Rates for either multiple concession categories or multiple revenue tiers, then the definition of the various categories or tiers, as applicable, must be clearly stated. Use the format provided on Form 6 (Appendix 4). c) Projected Sales / Net Income and Cash Flow Provide a good faith estimate of the expected annual gross revenue, cost of goods sold, other direct expenses, general and administrative expenses, net income, and cash flow to be derived from the proposed operations over the Term for each location. If the proponent proposes multiple merchandise categories, then the projection of gross revenue must include a projection for each merchandise category. Use the format provided on Form 7 (Appendix 4). d) Capital Investment and Financing Plan Provide a detailed cost estimate for the proposed improvements and other start-up costs. The proponent should specify the source of funds (cash, bank loan, etc.) for the capital improvements and 32 Nunavut Airport Services Ltd. Request for Proposals start-up costs for each location. 8 (Appendix 4). Use the format provided on Form Tab 12) Other Information The proponent should provide any other information that it believes would be helpful in evaluating the proponent’s ability to successfully develop and operate the concession. Tab 13) Exceptions Proponent should note any exceptions to the Draft Form of Concession Agreement and include proposed wording for each exception. NASL will consider any such exceptions in its evaluation of the proponent’s proposal, but is not obligated to accept any such exceptions or proposed modifications. If the selected proponent and NASL are unable to resolve any exceptions to the mutual satisfaction of both parties, NASL reserves the right to reject the selected proponent’s proposal and award the concession to another proponent. 33 Nunavut Airport Services Ltd. Request for Proposals EXHIBIT A PASSENGER PROFILE In 2011, Iqaluit (City) had a population of 6,699, representing a percentage change of 8.3% from 2006. This compares to the national average growth of 5.9%. Land area is 52.50 square kilometres with a population density of 127.6 persons per square kilometre. This compares to the territorial land area of 1,877,787.62 square kilometres with a population density of 0.0 persons per square kilometre. In 2011, Iqaluit (City) had 2,367 private dwellings occupied by usual residents. The change in private dwellings occupied by usual residents from 2006 was 14.1%. For Canada as a whole, the number of private dwellings occupied by usual residents increased 7.1%. Population and dwelling counts Iqaluit (City) – Neighbouring census subdivisions Census subdivision (CSD) name CSD type Baffin, Unorganized, Nvt. Population 2011 2006 % change 5 5 0.0 NO Table 1 Iqaluit (City) – Neighbouring census subdivisions, population change, 2006 to 2011 Nunavut – Census subdivisions with 5,000-plus population with the highest population growth Census subdivision (CSD) name Iqaluit CSD type CY Population 2011 2006 % change 6,699 6,184 8.3 Table 2 Nunavut – Census subdivisions with 5,000-plus population with the highest population growth, population change, 2006 to 2011 Age and sex Iqaluit – Age distribution 34 Nunavut Airport Services Ltd. Request for Proposals Chart C description: Iqaluit – Population by broad age groups Age groups 0 to 14 Both sexes Males Females 23.9% 23.8% 24.1% 15 to 64 73.7% 73.4% 73.9% 65 and over 2.5% 2.9% 2.0% Table 3 Iqaluit – Age distributions by broad age groups and sex, 2011 Census In 2011, the percentage of the population aged 65 and over in Iqaluit was 2.5%, compared with a national percentage of 14.8%. The percentage of the working age population (15 to 64) was 73.7% and the percentage of children aged 0 to 14 was 23.9%. In comparison, the national percentages were 68.5% for the population aged 15 to 64 and 16.7% for the population aged 0 to 14. Iqaluit – Population by broad age groups and sex Broad age groups by sex Population 2011 2006 change % change Both sexes Total 0 to 14 6,700 6,180 520 8.4 1,600 1,560 40 2.6 15 to 64 4,935 4,500 435 9.7 130 35 26.9 65 and over 165 Males Total 0 to 14 3,400 810 3,175 780 225 30 7.1 3.8 15 to 64 2,495 2,335 160 6.9 40 66.7 65 and over 100 60 Females 35 Nunavut Airport Services Ltd. Request for Proposals Total 3,300 3,005 295 9.8 0 to 14 795 780 15 1.9 15 to 64 2,440 2,160 280 13.0 65 and over 65 65 0 0.0 Table 5 Iqaluit – Population by broad age groups, sex and population change between 2006 and 2011, 2006 to 2011 censuses 36 Nunavut Airport Services Ltd. Request for Proposals Iqaluit – Population by five-year age groups and sex Chart D description: Iqaluit – Population by five-year age groups and sex Age groups Total - Age groups Both sexes Males Females 6,700 3,400 3,300 0 to 4 years 615 315 295 5 to 9 years 535 265 270 10 to 14 years 455 230 225 15 to 19 years 20 to 24 years 515 560 280 280 240 275 25 to 29 years 660 325 340 30 to 34 years 670 315 355 35 to 39 years 40 to 44 years 495 500 260 240 235 255 45 to 49 years 475 230 245 50 to 54 years 475 265 210 55 to 59 years 355 170 180 60 to 64 years 65 to 69 years 235 80 130 55 105 25 70 to 74 years 40 25 15 75 to 79 years 20 15 15 80 to 84 years 85 years and over 15 5 0 5 10 0 Median age 30.1 30.2 30.0 Table 6 Iqaluit – Population by five-year age groups and sex, 2011 Census 37 Nunavut Airport Services Ltd. Request for Proposals Iqaluit – Median age2 of the population Chart E description: Canada, Nunavut and Iqaluit – Median age, 2006 and 2011 censuses In 2011, the median age in Iqaluit was 30.1 years. In comparison, the median age of Nunavut was 24.1 years. Median age 2006 2011 Canada 39.5 40.6 Nunavut 23.1 24.1 Iqaluit, CY 28.8 30.1 Table 7 Canada, Nunavut and Iqaluit – Median age, 2006 and 2011 censuses Families and households In 2011, the number of census families3 in Iqaluit was 1,720, which represents a change of 12.1% from 2006. This compares to a growth rate for Canada of 5.5% over the same period. In Iqaluit, 40.1% of census families were married couples in 2011, while 36.0% were common-law-couples and 23.3% were loneparent families. 38 Nunavut Airport Services Ltd. Request for Proposals Chart F description: Iqaluit – Census families by family structure Iqaluit – Family structure Total Geograph familie ic name s Canada Marriedcouple families number % Common-lawcouple families number % % Lone-parent change, families census familie number % s, 2006 to 2011 9,389,6 6,293,9 67. 1,567,9 16. 1,527,8 16. 95 50 0 05 7 40 3 5.5 Nunavut 7,780 3,035 39. 0 2,545 32. 7 2,195 28. 2 10.5 Iqaluit 1,720 690 40. 1 620 36. 0 400 23. 3 12.1 Table 8 Canada, Nunavut, CSD of Iqaluit, and neighbouring census subdivisions – Distribution of census families by family structure, 2011 Census Iqaluit – Presence of children within couple families Among couples (married and common-law) in the census subdivision of Iqaluit, 61.6% were couples with children aged 24 and under at home. In comparison, as a whole, 46.9% of couples in Canada had children aged 24 and under at home. Presence of children within couple families * Children aged 24 and under at home Married couples with children * 405 Married couples without children * 290 Common-law-couples with children * 410 Common-law-couples without children * 215 39 Nunavut Airport Services Ltd. Request for Proposals Iqaluit – Marital status Chart H description: Iqaluit – Marital status In Iqaluit, 53.3% of the total population aged 15 and over were either married (28.8%) or living with a commonlaw partner (24.4%). The remaining 46.7% were not married and not living with a common-law partner, including those who were single (nevermarried), separated, divorced or widowed. Note: Percentages may not total 100 percent due to random rounding. Marital status Total - Population 15 years and over Married or living with a common-law partner Married (and not separated) Living common-law Iqaluit, CY number 5,100 % Nunavut number % Canada number % 100.0 21,480 100.0 27,869,345 100.0 2,720 53.3 11,480 53.4 16,084,490 57.7 1,470 28.8 6,385 29.7 12,941,965 46.4 1,245 24.4 5,095 23.7 3,142,525 2,380 46.7 1,995 39.1 Separated Divorced 100 205 2.0 4.0 350 405 1.6 1.9 698,245 1,686,035 2.5 6.0 Widowed 85 1.7 600 2.8 1,584,525 5.7 Not married and not living with a commonlaw partner Single (never legally married) 10,000 46.6 11,784,855 42.3 8,645 40.2 7,816,045 Table 9 Canada, Nunavut, Iqaluit – Population 15 years and older by marital status, 2011 Census 40 11.3 28.0 Nunavut Airport Services Ltd. Request for Proposals 41 Nunavut Airport Services Ltd. Request for Proposals Iqaluit – Types of private households There were 2,370 private households4 in Iqaluit in 2011, a change of 14.5% from 2006. Of these, 31.6% of households were comprised of couples with children aged 24 and under at home, a change of 6.4% compared with five years earlier. Household type Total private households Iqaluit, CY number % Nunavut number % Canada number % 2,370 100.0 8,660 100.0 13,320,615 100.0 Couple-family households with children aged 24 and under at home 750 31.6 3,470 40.1 3,524,915 26.5 Couple-family households without children aged 24 and under at home 450 19.0 1,040 12.0 3,935,540 29.5 Lone-parent family households 305 12.9 1,325 15.3 1,375,450 10.3 One-person households 620 26.2 1,575 18.2 3,673,310 27.6 Multiple family households 105 4.4 920 10.6 268,060 2.0 Other households 140 5.9 330 3.8 543,340 4.1 Table 10 Canada, Nunavut, Iqaluit – Distribution of households by household type, 2011 Census Iqaluit – Structural type of dwelling In Iqaluit, 28.5% of private households lived in single-detached houses and 6.3% lived in apartments in buildings that have five or more storeys. The rest lived in other types of dwelling structures. Structural type of dwelling Total - Structural type of dwelling Iqaluit, CY number % Nunavut number % Canada number % 2,365 100.0 8,660 100.0 13,320,615 100.0 Single-detached house Semi-detached house 675 195 28.5 8.2 4,440 845 51.3 9.8 7,329,150 646,240 55.0 4.9 Row house 585 24.7 2,235 25.8 791,600 5.9 Apartment, building that has five or more storeys 150 6.3 155 1.8 1,234,770 9.3 42 Nunavut Airport Services Ltd. Request for Proposals Apartment, building that has fewer than five storeys 740 31.3 845 9.8 2,397,555 18.0 Apartment, duplex 15 0.6 130 1.5 704,485 5.3 Other single-attached house 5 0.2 10 0.1 33,310 0.3 Movable dwelling 0 0.0 10 0.1 183,510 1.4 Table 11 Canada, Nunavut, Iqaluit – Distribution of private households by structural type of dwelling, 2011 Census Language Iqaluit – Mother tongue Chart J description: Iqaluit – Mother tongue and language spoken most often at home Note: Counts for mother tongue as well as those for language spoken most often at home include single responses only. In Iqaluit, 44.0% of the population reported English only as mother tongue, 4.8% reported French only, and 49.8% reported a non-official language only, in 2011. In comparison, the provincial / territorial percentages were 28.1% for English only, 1.4% for French only and 69.5% for only non-official languages. In 2011, 67.0% of the population spoke only English most often at home, 2.9% spoke only French and 29.3% spoke only a nonofficial language. In comparison, the provincial / territorial percentages were 45.5% for only English, 0.8% for only French and 53.0% for only a non-official language. Selected languages Mother tongue number % 43 Language spoken most often at home number % Nunavut Airport Services Ltd. Request for Proposals Total 6,620 100.0 6,620 100.0 English 2,915 44.0 4,435 67.0 French 315 4.8 195 2.9 Non-official language 3,300 49.8 1,940 29.3 Multiple responses 90 1.4 50 0.8 Table 12 Iqaluit – Mother tongue and language spoken most often at home, 2011 Census Mother-tongue retention (in percentage) Mother tongue Complete Total retention; retention; language spoken at language spoken home at least on a most often at regular basis home Partial retention; language spoken at home on a regular basis Note: Counts for mother tongue and home language include single response of a language as well as multiple responses of a language with English and/or French. English 99.0 96.2 2.8 French 75.4 53.8 21.5 Nonofficial language 89.8 55.2 34.6 Table 13 Iqaluit – Mother-tongue retention, 2011 Census Iqaluit, CY – Non-official languages In Iqaluit, the three most common mother tongues were Inuktitut (46.6%), Tagalog (Pilipino, Filipino) (0.8%) and German (0.3%), in 2011. In comparison, the most common mother tongues at the provincial / territorial level were Inuktitut (67.8%), Inuinnaqtun (0.9%) and Tagalog (Pilipino, Filipino) (0.3%). 44 Nunavut Airport Services Ltd. Request for Proposals Percentage of nonPercentage of official language total population mother-tongue population Note: Counts for mother tongue and home language include single response of a language as well as multiple responses of a language with English and/or French. Inuktitut 3,085 91.1 46.6 Tagalog (Pilipino, 50 1.5 0.8 Filipino) German 20 0.6 0.3 Mother tongue Number Spanish 15 0.4 0.2 Arabic 15 0.4 0.2 Hindi 15 0.4 0.2 Table 14 Iqaluit – The most common non-official-language mother tongues, 2011 Census 45 Nunavut Airport Services Ltd. Request for Proposals Iqaluit – Bilingualism Age groups Total English Mother tongue French Non-official language Note: Counts for mother tongue include single responses only. Consequently, the total excludes multiple responses. Total 12.8 15.1 92.1 3.2 0 to 19 7.8 11.0 77.8 1.8 20 to 44 13.9 17.3 93.1 3.2 45 to 64 17.6 65 and over 9.7 16.9 11.1 95.8 100.0 4.4 5.0 Table 15 Iqaluit – Rate of English-French bilingualism by mother tongue and age groups, 2011 Census Knowledge of official languages Number Percentage Total 6,615 100.0 English only 5,625 85.0 French only English and French 20 840 0.3 12.7 Neither English nor French 130 2.0 Table 16 Iqaluit – Knowledge of official languages, 2011 Census Note(s): 1. Iqaluit (Nunavut) – This census subdivision has the following data quality indicators (commonly referred to as data quality flags): Data quality index showing a global non response rate higher than or equal to 5% but lower than 10%. 2. Median age: Age 'x' that divides a population in two groups of the same population size, one group being older than age 'x' and the other group being younger than age 'x'. 3. Census family: Refers to a married couple (with or without children), a common-law couple (with or without children) or a lone parent family. 4. Household, private: Refers to a person or a group of persons (other than foreign residents) who occupy a private dwelling and do not have a usual place of residence elsewhere in Canada. 5. Household type: Refers to the basic division of private households into family and non-family households. Family household refers to a household that contains at least one census family, that is, a married couple with or without children, or a couple living in common-law with or without children or a lone parent living with one or more children. 6. Couple-family households with children: Refers to couple households with at least one child aged 24 and under. 46 Nunavut Airport Services Ltd. Request for Proposals 7. Couple-family households without children: Refers to couple households without children aged 24 and under. Includes couple households with all children aged 25 and over. 8. Lone-parent-family households: Refers to all lone-parent family households regardless of age of children. 9. Multiple-family households: Refers to a household in which two or more census families (with or without additional persons) occupy the same private dwelling. 10. Other households: Refers to two or more people who share a private dwelling, but who do not constitute a census family. 11. Other single-attached house: A single dwelling that is attached to another building and that does not fall into any of the other categories, such as a single dwelling attached to a non-residential structure (e.g., a store or a church) or occasionally to another residential structure (e.g., an apartment building). 12. Movable dwelling includes mobile homes and other movable dwellings such as houseboats and railroad cars. 13. Mother-tongue retention: Retention refers to the situation where people speak their mother tongue at home. Retention is defined as 'complete' when the mother tongue is the language spoken most often and 'partial' when it is spoken on a regular basis but not most often. The (complete or partial) retention rate refers to the proportion of the population with a given mother tongue that speaks that language at home most often or on a regular basis. The retention rate provides an indication of a group's linguistic vitality, particularly the importance of transmitting languages between generations. Source: Statistics Canada. 2012. Focus on Geography Series, 2011 Census. Statistics Canada Catalogue no. 98-310-XWE2011004. Ottawa, Ontario. Analytical products, 2011 Census. Last updated October 24, 2012. 47 Nunavut Airport Services Ltd. Request for Proposals APPENDIX 1 AIR TERMINAL BUILDING PROFORMA DRAWING A separate PDF file is available for full scale viewing. 48 1 Drawing requirements for Concession RFP South East Side-Protected Zone: North East Side-Public Zone: North West Side-Public Zone: Submittal of ACAD drawing files shall be in AutoCAD Release 2007 or higher. Drawings to be standard size A1 format to scale with dimensions. Drawing submittals shall conform to the following metric measurements: a) b) c) d) e) Key plans: 1:500. Floor plans, reflected ceiling plans, interior elevations, sections and details: 1:50. Electrical and mechanical drawings: 1:50. Flow diagrams: 1:100. Storefronts, signage, logos and lettering in elevation, section or detail: 1:25. Nunavut Airport Services Ltd. Request for Proposals APPENDIX 2 FORM OF CONCESSION AGREEMENT NO.: LONG TERMLEASE RESTAURANT / CONCESSION / GIFT-SHOP LEASE CUSTOMER NO.: FILE NO.: LEASE BETWEEN: GOVERNMENT OF NUNAVUT AND NAME OF LESSEE DATE OF LEASE (YY-MM-DD): Date SPACE AND RIGHTS DEMISED: _______square metres of space (the “Premises”), located in the Air Terminal Building (the “ATB”) at the Iqaluit International Airport Airport, at Iqaluit in Nunavut, exclusive space as shown outlined in red and non-exclusive space as shown outlined in green on the drawing attached hereto as Schedule “A”. BEGINNING OF TERM (YY-MM-DD): LENGTH OF TERM: Date _________ years RENTAL: See Payment Clause 49 Nunavut Airport Services Ltd. Request for Proposals NOTES: 50 Nunavut Airport Services Ltd. Request for Proposals CONTENTS ARTICLE 1 - DEFINITIONS .......................................................................................... 53 ARTICLE 2 - PURPOSE ............................................................................................... 54 ARTICLE 3 – TERM ...................................................................................................... 54 3.01 LENGTH OF TERM ..................................................................................... 54 3.02 OVERHOLDING TENANCY ........................................................................ 54 3.03 CANCELLATION ......................................................................................... 54 3.04 SURRENDER OF PREMISES .................................................................... 54 3.05 RENEWAL................................................................................................... 55 ARTICLE 4 - RENT ....................................................................................................... 55 4.01 RENT........................................................................................................... 55 4.02 PAYMENT OF RENT .................................................................................. 57 4.03 INTEREST ON RENT IN DEFAULT ............................................................ 57 4.04 RENT REVIEW ........................................................................................... 57 ARTICLE 5 – LEASED PREMISES, SERVICES, IMPROVEMENTS & CONDUCT OF BUSINESS .................................................................................................................... 57 5.01 “AS IS” CONDITION .................................................................................... 57 5.02 ACCESS...................................................................................................... 58 5.03 SERVICES TO THE PREMISES................................................................. 59 5.04 SUSPENTION OF SERVICES .................................................................... 59 5.05 REASONABLE USE .................................................................................... 60 5.06 NUISANCE .................................................................................................. 60 5.07 ENVIRONMENTAL PROTECTION ............................................................. 60 5.08 FIRE PREVENTION .................................................................................... 61 5.09 POLICING AND SECURITY........................................................................ 62 5.10 SIGNAGE AND DISPLAYS ......................................................................... 62 5.11 DRAINAGE AND DISCHARGE OF MATERIAL .......................................... 62 5.12 REPAIR OF DAMAGE................................................................................. 63 5.13 ALTERATIONS AND UTILITY SERVICES.................................................. 63 5.14 PAYMENT OF TAXES ................................................................................ 64 5.15 COMPLIANCE............................................................................................. 64 5.16 SMOKE FREE WORKPLACE ..................................................................... 64 5.17 PRODUCTS OFFERED FOR SALE BY THE LESSEE ............................... 64 5.18 PRICING ..................................................................................................... 65 5.19 OBJECTIONABLE GOODS ........................................................................ 65 5.20 CREDIT CARDS ......................................................................................... 65 5.21 AMERICAN CURRENCY ............................................................................ 65 5.22 HOURS OF OPERATION ........................................................................... 66 5.23 PERSONNEL .............................................................................................. 66 5.24 OPERATION OF VENDING MACHINE(S) .................................................. 66 5.25 PARKING ........................................................................................................ ARTICLE 6 - ASSIGNMENT ......................................................................................... 66 6.01 PRIOR CONSENT REQUIRED................................................................... 66 6.02 LESSOR’S ASSIGNMENT .......................................................................... 67 6.03 LESSEE’S CONSENT ................................................................................. 67 6.04 TRANSFER OF PREMISES........................................................................ 67 ARTICLE 7 - LIABILITY AND INDEMNITY ................................................................... 67 7.01 CLAIM OR DEMAND .................................................................................. 67 7.02 INDEMNITY................................................................................................. 68 ARTICLE 8 - INSURANCE ............................................................................................ 68 8.01 COMMERCIAL GENERAL LIABILITY INSURANCE ................................... 68 8.02 PROPERTY INSURANCE........................................................................... 68 8.03 EVIDENCE OF INSURANCE ...................................................................... 68 8.04 POLICIES .................................................................................................... 69 ARTICLE 9 - DEFAULT AND RE-ENTRY ..................................................................... 70 9.01 DEFAULT AND RE-ENTRY ........................................................................ 70 9.02 DISTRESS .................................................................................................. 71 51 Nunavut Airport Services Ltd. Request for Proposals ARTICLE 10 - GENERAL .............................................................................................. 71 10.01 HEADINGS ................................................................................................ 71 10.02 DIFFERENCES ......................................................................................... 71 10.03 EFFECT OF THE LEASE .......................................................................... 71 10.04 GENDER NEUTRAL.................................................................................. 71 10.05 PROVISIONS SEPARATELY VALID .......... Error! Bookmark not defined. 10.06 WAIVER NEGATED .................................... Error! Bookmark not defined. 10.07 NO IMPLIED OBLIGATIONS....................... Error! Bookmark not defined. 10.08 ENTIRE AGREEMENT ................................ Error! Bookmark not defined. 10.09 COSTS .......................................................................................................... 10.10 REGISTRATIONS ......................................................................................... ARTICLE 11 - NOTICES ................................................. Error! Bookmark not defined. EXECUTION OF LEASE ................................................. Error! Bookmark not defined. SCHEDULE “A” ............................................................... Error! Bookmark not defined. SCHEDULE “B” ............................................................... Error! Bookmark not defined. APPENDIX “A” ................................................................ Error! Bookmark not defined. 52 Nunavut Airport Services Ltd. Request for Proposals THIS LEASE made this_______ day of _________________, 20__. BETWEEN: GOVERNMENT OF NUNAVUT, as represented by the Minister of Economic Development and Transportation through its authorized agent, Nunavut Airport Services Ltd., (NASL) agent only for the purposes of administering the lease and for no other purpose whatsoever (hereinafter called the “Lessor”), OF THE FIRST PART; AND Name of Lessee (hereinafter called the “Lessee”), OF THE SECOND PART. The Lessor, in consideration of the rents, covenants, provisos and conditions hereinafter reserved and contained, has demised and leased, and, by this Lease, leases to the Lessee: CERTAIN SPACE (the “Premises”) in the Lessor’s Air Terminal Building (the “Building”) erected at the Iqaluit International Airport (the “Airport”), in Nunavut; and located as shown outlined in red on drawing number ______ dated _______, and attached hereto as Schedule “A”. TOGETHER WITH the right and privilege to operate and maintain a [food and beverage facility and/or gift shop] on the Premises and offer for sale those items or products normally offered for sale by a food and beverage facility and gift shop as further detailed in clause 5.17 hereof. [AND TOGETHER WITH the first right of refusal to provide, install, operate and maintain vending machines in the Building accordance with Clause 5.24 hereof. ] AND the Parties agree as follows: ARTICLE 1 - DEFINITIONS 1.01 “Airport Manager” means NASL who is holding the position or acting in the capacity of the manager of the Airport, during the currency of the Lease; 1.02 “Director” means that person holding the position of Director, Iqaluit International Airport of the Department of Economic Development and Transportation of the Government of Nunavut or any successor or authorized representative thereof, or such person duly appointed to act in that behalf. 53 Nunavut Airport Services Ltd. Request for Proposals 1.03 “Environmental Protection Statutes” means all applicable laws, by-laws, regulations, standards or orders from time to time in force relating to environmental matters, the generation, use, handling, storage, disposal and transportation of any substance and the protection of the environment generally. ARTICLE 2 - PURPOSE The Premises shall be used for the operation of the Lessee’s [food and beverage facility and gift shop], and for no other purpose or purposes whatsoever. The operation of the concession will be in accordance with the Lessee’s submission to NASL’s Request for Proposals to Lease, Develop and Operate Concessions at Iqaluit International Airport (the RFP), known as the Operational Proposal. The Operational Proposal is attached to this Lease as Appendix A. ARTICLE 3 – TERM 3.01 LENGTH OF TERM The Lessee shall have and hold the Premises as of, from and after the ___ day of _________ (the “Commencement Date”) for a term or period of _________ (__) years (the “Term”) and then to be fully complete and ended, renewable as hereinafter provided. 3.02 OVERHOLDING TENANCY If the Lessee shall hold over after the expiration of the Term hereby granted and if the Lessor shall accept rent, the new tenancy thereby created shall be a tenancy at will and not a tenancy from year to year, and the Lessee shall pay as rent during the time of such occupancy a rent to be determined at the discretion of the Lessor, and shall be subject to the covenants and conditions herein contained so far as the same are applicable to a tenancy at will. 3.03 CANCELLATION If by reason of fire, flood, lightning, earthquake, impact of aircraft, explosion, or acts of god, the airport, the Building or the Premises shall, at any time during the Term hereby granted, be destroyed or so damaged as to render any of them unfit for use or occupancy, this Lease may thereupon, by notice in writing from either party given to the other party within thirty (30) days from the date the Airport, the Building or the Premises so become unfit for occupancy, be declared terminated from the happening of any such event. 3.04 SURRENDER OF PREMISES (1) At the expiration or sooner determination of this Lease, subject to the provisions of Article 9.01 hereof, the Lessee shall peaceably surrender and yield the Premises to the Lessor, in a condition reasonably satisfactory to the Lessor. (2) If directed by the Lessor, the Lessee shall remove all fixtures from the 54 Nunavut Airport Services Ltd. Request for Proposals Premises and shall also, to the satisfaction of the Lessor, repair all damage and injury occasioned to the Premises, the Building or the Airport by reason of such removal or in the performance thereof, but the Lessee shall not, by reason of any action taken or things performed or required under this Article, be entitled to any compensation whatsoever. 3.05 (3) Unless agreed to by both parties, the Lessee shall remove from the Premises all chattels, goods, supplies, articles, equipment, materials, effects or things brought or placed by the Lessee on the Premises, and shall also, to the satisfaction of the Lessor, repair all and every damage and injury occasioned to the Premises, the Building, or the Airport by reason of such removal or in the performance thereof, but the Lessee shall not, by reason of any action taken or things performed or required under this Article, be entitled to any compensation whatsoever. Unless required by the Lessor, no chattels, goods, supplies, articles, equipment, materials, effects or things belonging to the Lessee shall be removed from the Premises until all monies due or about to become due under this Lease are fully paid. (4) If the Lessee does not comply with the requirements of paragraphs 3.04 (1), (2) and (3) hereof, the Lessor may, at its option, remove at the risk of and at the cost and expense of the Lessee, the fixtures, or the chattels, goods, supplies, articles, equipment, materials, effects or things from the Premises and the Lessee shall reimburse the Lessor forthwith upon receipt of appropriate accounts therefor and for any storage charges which may have been or will be incurred by the Lessor as a result of such removal. Where not removed by the Lessee, the Lessor may consider the fixtures, chattels, goods, supplies, articles, equipment, materials, effects or things brought or placed by the Lessee on the Premises to be abandoned, and take title thereto in the name of the Lessor. RENEWAL If, at the expiration of the Term, the Lessee shall desire a renewal of the Lease for a further term up to but not exceeding a period of five (5) years, then the Lessee shall, at least six (6) months prior to the expiration of the Term of the Lease, provide the Lessor with written notice indicating the duration of the renewal term or period requested. The Lessor may grant such renewal, upon the terms and conditions of this Lease and for a rent determined in accordance with Article 4, provided that the Lessee has, during the Term hereof, complied with the terms and conditions of this Lease. ARTICLE 4 - RENT 4.01 RENT The Lessee shall pay during the currency of the Lease to the Lessor for the time being, in lawful money of Canada the following rent (the “Rent”): [Select one of the two following options – 1) being fixed annual rent and 2) being % rent with a minimum annual guarantee: 1) For the period commencing on the ___day of ______, 20___, and ending on the 55 Nunavut Airport Services Ltd. Request for Proposals ____ day of _____, 20____, the sum of DOLLAR AND CENTS AMOUNT IN CAPS ($XXXX.XX), plus GST, payable in advance in equal monthly installments of DOLLAR AND CENTS AMOUNT IN CAPS ($XXXX.XX) each, plus GST, commencing on the ___ day of ____, 20__, and continuing on the first day of each and every month thereafter. 2) a) the percentage of annual Gross Revenue for each location comprising the Leased Premises as outlined below (the “Percentage Rent”) OR Room Number xxx Concession Name xxx Percentage Rent (expressed as a percentage of gross revenue) xxx b) the Minimum Annual Guaranteed (“MAG”) rent, whichever is greater for all of the locations comprising the Leased Premises on an aggregate basis: The Minimum Annual Guaranteed Rent (“MAG”) during the first Lease Year of the Term is xxx Dollars ($XXX.XX). Commencing on the Commencement Date and thereafter during the Term, payment of the MAG shall be made in twelve (12) monthly installments, with the first installment payable by the Lessee to the Lessor on or before the Commencement Date and on or before the first day of each month thereafter during the Term. If the Commencement Date is not the first day of a calendar month then the Lessee shall, on the Commencement Date, pay rent for the partial period of the month in which the Commencement Date occurs at a per diem rate which shall be one three hundred and sixty-fifth (1/325) of the MAG rent. Beginning on the first day of the second Lease Year of the Term, the MAG will be set at eighty-five percent (85%) of the previous Lease Year’s gross rent paid to Landlord, but never less than the MAG for the first Lease Year. This procedure for setting the MAG rent will continue for each subsequent Lease Year. Payment of the Percentage Rent by the Lessee shall be in monthly installments, due and payable within fifteen (15) days after the last day of each month during the Term, in amounts, if any, by which the percentage of the Lessee’s Gross Revenue for the prior month exceeds the amount of MAG rent paid on the 1ST day of such prior month.] 56 Nunavut Airport Services Ltd. Request for Proposals AND payment of the Rent shall be made by the Lessee without prior demand by the Lessor, to the Government of Nunavut, payable to its representative, Nunavut Airport Services Ltd., and delivered to: Services Director Nunavut Airport Services Ltd. Iqaluit International Airport P.O. Box 1859 Iqaluit, NU X0A 0H0 4.02 PAYMENT OF RENT The Lessee shall pay the Rent herein reserved at the time and in the manner in the Lease set forth, without notice or any abatement or deduction whatsoever. 4.03 INTEREST ON RENT IN DEFAULT Without waiving any other right of action of the Lessor in the event of default of payment of the Rent hereunder, if the Lessee is delinquent in making the payments required hereunder, the Lessee shall pay interest thereon, retroactive from the date any such amount is due and payable until paid. In order to reflect prevailing interest rates, the Lessor may review and adjust the interest rate from time to time. 4.04 RENT REVIEW (1) The Lessor shall review and revise the Rent annually in accordance with the Lessor’s policy for the determination of air terminal building space rental rates, as amended from time to time, and such revised Rent (hereinafter referred to as “Revised Annual Rent”) shall become effective as of, from and after the next ensuing anniversary of the commencement date of the Lease (hereinafter referred to as the “Rent Review Date”). (2) The Lessor shall, at least ninety (90) days prior to the Rent Review Date, provide the Lessee with written notice of the Revised Annual Rent payable as of, from and after the Rent Review Date next ensuing. (3) Any failure of the Lessor to give written notice of the Revised Annual Rent in accordance with the time frame set out in paragraph 4.04 (2) hereof shall not render void the right of the Lessor to review and revise the Rent in accordance with paragraph 4.04 (1) hereof, provided that the Lessee is given the proper notice as set out in paragraph 4.04 (2) hereof, prior to the effective date of such Revised Annual Rent. ARTICLE 5 – LEASED PREMISES, SERVICES, IMPROVEMENTS & CONDUCT OF BUSINESS 5.01 FIXTURING PERIOD The Lessee shall take possession of each portion of the Leased Premises on the 57 Nunavut Airport Services Ltd. Request for Proposals Delivery Date. The Lessor, in co-operation with the base building general contractor, shall use its best efforts to establish a Delivery Date not less than ninety (90) days prior to Commencement Date. From and after the Deliver Date, the Lessee shall prepare the Leased Premises for its intended use, in accordance with this Lease and the Operational Proposal. No rent shall be payable from the Delivery Date to the Commencement Date. The Lessee agrees to enter into a contract with Stantec for the provision of design, engineering, project management and site coordination at its cost. 5.02 “AS IS” CONDITION (1) The Lessee accepts the Premises in an “as is” condition, and any improvements made to the Premises by the Lessee at any time during the currency of this Lease, to make the Premises suitable for the operations of the Lessee hereunder, shall be at the risk, cost and expense of the Lessee, except and subject as in this Lease otherwise provided for, and to the satisfaction of the Lessor. (2) The Lessee acknowledges and agrees that: (a) the Lessee has fully inspected and is familiar with the physical attributes and condition of the Premises; and (b) the Lessor and any person for whom the Lessor might be responsible in law have not made any representation or given any warranty of any kind respecting the Premises or the services or utilities serving the Premises; and (c) the taking of possession of all or any part of the Premises by the Lessee shall be prima facie evidence against the Lessee that all undertakings, if any, of the Lessor with respect to the Premises or the services and utilities serving the Premises have been fully satisfied and performed by the Lessor. 5.03 IMPROVEMENTS (1) All improvements shall comply with the Tenant Design and Construction Guideline. The Lessee agrees to comply with and to cause its contractors and sub-contractors to comply with the Tenant Design and Construction Guideline in addition to the other requirements of this Lease. (2) The minimum total initial capital investment to be made by the Lessee in the Premises from the Delivery Date to the Commencement Date shall be no less than the minimum average capital investment required to construct, furnish, and equip, at its sole cost, pursuant to NASL’s Request for Proposal (RFP) and the Lessee’s submission in response to the RFP. (3) The minimum total initial capital investment in the Premises including leasehold improvement, fixtures, furnishing, equipment, and design and engineering costs, will be at least 90% of the amount specified in the Operational Proposal. Design and engineering costs are not to exceed fifteen percent (15%) of construction costs. If the capital investment is less than ninety percent (90%) of the amount specified in the Operational Proposal, the Lessee shall pay the amount of the shortfall to NASL as additional rent. (4) In addition to the foregoing, the Lessor requires the Lessee to refurbish 58 Nunavut Airport Services Ltd. Request for Proposals and/or reconcept each portion of the Leased Premises at the midpoint of the Term. A minimum average refurbishment/reconcepting expenditure of Six Hundred Fifty ($650.00) Dollars CDN per square metre has been established. The scope and extent of necessary renovation, remodeling, upgrade, redecorating and/or reconcepting for the Leased Premises shall be jointly determined by the Lessor and the Lessee. The mid-Term refurbishment costs shall not include financing costs, interest, inventory, or intra-company charges related to construction and shall be spent without additional consideration or privileges and without extension of the Term. (5) The Lessee shall not undertake any decoration to the Leased Premises until plans for decoration have been approved by the Lessor. (6) The Lessor shall not be required to provide any materials or to do any work to or in respect of the Premises. (7) The Lessee shall provide and carry out, in accordance with the Tenant Design and Construction Guideline, at its expense, all equipment and work required to be provided or performed in order to render the Premises complete and suitable to open for business. 5.04 ACCESS 5.05 5.06 (1) The Lessor, its officers, servants or agents, shall upon reasonable written notice to the Lessee, have full and free access for inspection purposes during normal business hours and in the presence of the Lessee or a representative of the Lessee to any and every part of the Premises; it being expressly understood and agreed, however, that in cases of emergency, as determined by the Airport Manager, the Lessor, its officers, servants, or agents shall at all times and for all purposes have full and free access to the Premises. (2) Subject to the provisions of this Lease, the Lessee shall have the right of ingress and egress through the Building and over the Airport roadways subject to rules and regulations as may be given by the Airport Manager from time to time. SERVICES TO THE PREMISES (1) The services and utilities to be provided by the Lessor in respect of the Premises will be in accordance with Schedule “B” hereof. The cost and expenses for such services and utilities shall be assumed by the parties as set out therein. (2) The Lessee shall be responsible, at the cost and expense of the Lessee, for making arrangements for all utilities and services not supplied by the Lessor, provided, however, that the plans and specifications for installation or provision thereof must be approved by the Lessor. SUSPENSION OF SERVICES Without limiting or restricting the generality of the provisions of Article 7.01 hereof, 59 Nunavut Airport Services Ltd. Request for Proposals the Lessee shall have no claim of any kind, nor bring any action or suit or petition against the Lessor or any of its officers, servants or agents for any damage which the Lessee may sustain by reason of any suspension, interruption or discontinuance, in whole or part from whatever cause arising in services supplied by or on behalf of the Lessor, unless shown to be caused by the negligence of the Lessor or its officers, servants or agents while acting within the scope of their duties or employment. 5.07 REASONABLE USE The Lessee shall not, during the currency of the Lease, do, suffer nor permit to be done any act or thing which may impair, damage or injure the Premises or the Building or any part thereof, beyond the damage occasioned by reasonable use, and shall, at the cost and expense of the Lessee, repair and renew in a good, sufficient and workmanlike manner all portions of the Premises and the Building which my at any time by the Lessee be damaged (ordinary wear and tear only excepted) and in the event of the failure on the part of the Lessee to so repair and renew, the Lessee shall indemnify and save harmless the Lessor from all damages, costs and expenses suffered or incurred by the Lessor by reason of such impairment, damage or injury to the extent the Lessee is liable for the same in law, such payment to be made forthwith upon receipt of appropriate accounts therefore. 5.08 NUISANCE The Lessee shall not do, suffer or permit to be done any act or thing upon or above the Premises which is or would constitute a nuisance to the occupiers of any space adjoining or in the vicinity of the Premises or to the public generally, or which causes or may cause interference with the navigation of aircraft. 5.09 ENVIRONMENTAL PROTECTION The Lessee shall abide by all Environmental Protection Statutes and guidelines. The Lessee shall at its own cost and expense: (a) immediately give written notice to the Lessor of the occurrence of any event in or on the Premises, the Building or the Airport of which it becomes aware respecting any failure of the Lessee or any person for whom the Lessee is responsible in law to comply with any Environmental Protection Statutes; (b) immediately notify the Lessor if any government authority issues a notice, directive or order (collectively referred to as "Order") to the Lessee for any activity which the government authority constitutes as a breach of any Environmental Protection Statutes; (c) if requested by the Lessor, give the Lessor from time to time written notice of the extent and nature of the Lessee’s compliance with an Order, any Environmental Protection Statutes and this Article; (d) promptly perform any work which will result in conformity and compliance with an Order, any Environmental Protection Statutes and this Article; (e) promptly cease any activity which fails to comply with any Order, Environmental Protection Statutes, or this Article; and 60 Nunavut Airport Services Ltd. (f) Request for Proposals if requested by the Lessor, obtain a written document in a form satisfactory to the Lessor, acting reasonably, from an independent consultant approved by the Lessor verifying that any activity required by subsection (d) above has been performed, or that any activity contemplated by subsection (e) above has ceased. (g) If any governmental authority having jurisdiction requires the clean-up of any substance held, released, spilled, leaked, abandoned, flowing onto or into or placed upon the Premises, adjacent premises, or any adjacent land, air or water or released into the Premises, the Building, the Airport or the environment as a result of any use or occupancy by the Lessee or those for whom the Lessee is responsible in law, then the Lessee shall, at its own expense, prepare all necessary studies, plans and proposals and submit the same to the Lessor for approval, which shall not be unreasonably withheld, provide all bonds and other security required by governmental authorities having jurisdiction, carry out the work required, and shall keep the Lessor fully informed and provide to the Lessor full information with respect to proposed plans and comply with the Lessor’s reasonable requirements with respect to such plans. The Lessee shall abide by all Environmental Protection Statutes and guidelines. The Lessee shall at its own cost and expense: (h)immediately give written notice to the Lessor of the occurrence of any event in or on the Premises, the Building or the Airport of which it becomes aware respecting any failure of the Lessee or any person for whom the Lessee is responsible in law to comply with any Environmental Protection Statutes; (i)immediately notify the Lessor if any government authority issues a notice, directive or order (collectively referred to as "Order") to the Lessee for any activity which the government authority constitutes as a breach of any Environmental Protection Statutes; (j)if requested by the Lessor, give the Lessor from time to time written notice of the extent and nature of the Lessee’s compliance with an Order, any Environmental Protection Statutes and this Article; (k)promptly perform any work which will result in conformity and compliance with an Order, any Environmental Protection Statutes and this Article; (l)promptly cease any activity which fails to comply with any Order, Environmental Protection Statutes, or this Article; and (m)if requested by the Lessor, obtain a written document in a form satisfactory to the Lessor, acting reasonably, from an independent consultant approved by the Lessor verifying that any activity required by subsection (d) above has been performed, or 61 Nunavut Airport Services Ltd. Request for Proposals that any activity contemplated by subsection (e) above has ceased. (n) If any governmental authority having jurisdiction requires the clean-up of any substance held, released, spilled, leaked, abandoned, flowing onto or into or placed upon the Premises, adjacent premises, or any adjacent land, air or water or released into the Premises, the Building, the Airport or the environment as a result of any use or occupancy by the Lessee or those for whom the Lessee is responsible in law, then the Lessee shall, at its own expense, prepare all necessary studies, plans and proposals and submit the same to the Lessor for approval, which shall not be unreasonably withheld, provide all bonds and other security required by governmental authorities having jurisdiction, carry out the work required, and shall keep the Lessor fully informed and provide to the Lessor full information with respect to proposed plans and comply with the Lessor’s reasonable requirements with respect to such plans. 5.10 FIRE PREVENTION The Lessee shall, at its sole cost, take all precautions to prevent fire from occurring on or about the Premises and shall observe and comply with all laws, regulations, directives in force at the Airport, and with all instructions given from time to time by the Airport Manager respecting fires, extinguishing of fires and fire prevention. 5.11 POLICING AND SECURITY The Lessor shall not be responsible for providing policing to nor security of the Premises. 5.12 5.13 SIGNAGE AND DISPLAYS (1) The Airport Manager reserves the right to rule upon displays and advertising signs within the Premises, and the Lessee shall conform to the aesthetic standards of the Building and any direction which may be given to the Lessee by the Airport Manager from time to time. (2) The Lessee shall not construct, erect, place or install, within the Building, or in any portion of the Premises which is open or accessible to the public, any advertising, directional or informational sign, poster or display, electrical or otherwise, without first obtaining the consent, in writing, of the Airport Manager, such consent not to be unreasonably withheld. DRAINAGE AND DISCHARGE OF MATERIAL The Lessee shall not discharge, cause or permit to be discharged or howsoever to pass into the waste water and sewage facilities in the Building, or onto the Airport or elsewhere any deleterious material or noxious, contaminated or poisonous substances, it being expressly understood and agreed that in the event of discharge or escape of such substances or materials, all costs and expenses incurred in the prompt clean-up of the same shall be the sole responsibility of the Lessee, and such clean-up shall be to the satisfaction of the Airport Manager. 62 Nunavut Airport Services Ltd. 5.14 Request for Proposals REPAIR OF DAMAGE If, at any time or times hereafter, any damage or injury (ordinary wear and tear only excepted) should be occasioned to the Premises, or any part thereof, or to the Building or any other works of the Lessor on the Airport by reason of or on account of the operations of the Lessee hereunder or any action taken or things done or maintained by virtue thereof, then, and in every such case, the Lessee shall, within a reasonable time upon notice thereof from the Lessor given in writing, repair, rebuild and restore the same in good, sufficient and workmanlike manner. In the event of failure on the part of the Lessee to so repair the Lessor may, at its option, repair such damage or injury in which case the Lessee shall repay and reimburse the Lessor for all costs and expenses connected therewith or incidental thereto to the extent the Lessee is liable for the same in law plus such additional charge as may be applicable in accordance with the practices of the Lessor for administration and overhead and such payment or reimbursement shall be made forthwith upon receipt by the Lessee of appropriate accounts therefore from the Lessor. In the event of failure on the part of the Lessee to repair such damage or injury and in the event of non-repair by the Lessor, the Lessee shall remain liable to the Lessor for the amount of such damage or injury to the extent the Lessee is liable therefor in law and payment of such amount shall be made by the Lessee to the Lessor forthwith, upon receipt by the Lessee of appropriate accounts therefore from the Lessor. 5.15 ALTERATIONS AND UTILITY SERVICES (1) The Lessee shall not make any alterations to the Premises, nor construct, erect or install any improvements or fixtures on or about the Premises without first obtaining the written approval of the Lessor or its designated representative, such approval not to be unreasonably withheld, of plans showing the design and nature of such alteration, construction, erection or installation and their proposed location, and all such alterations, improvements or fixtures shall be constructed, erected or installed and thereafter maintained by and at the sole cost and expense of the Lessee. (2) The Lessee shall not make any alterations or improvements to nor install any fixtures in the Premises, prior to making application for and receiving an approved Facility Alteration Permit, duly executed by or on behalf of the Lessor, such consent and approval not to be unreasonably withheld. Upon receipt of the approved Facility Alteration Permit, the Lessee agrees to construct the improvements at the Lessee’s cost, in accordance with the requirements, terms and conditions specified in the Facility Alteration Permit, and thereafter maintain the improvements to the reasonable satisfaction of the Lessor. (3) If, at any time during the Term of the Lease, the Lessee defaults in its obligation of maintaining the Premises and any alterations, improvements or fixtures in accordance with the provisions of the Lease, the Lessor may give written notice to the Lessee specifying the respect in which such maintenance is deficient. If, within thirty (30) days from the giving of such notice, the default specified has not been remedied or if the nature of such default reasonably required more than thirty (30) days to remedy and make right, and the Lessee has not commenced, or, having commenced, is not diligently completing the remedying of such default, or if such maintenance or remedy work is not of a type satisfactory to the Lessor, then the Lessor 63 Nunavut Airport Services Ltd. Request for Proposals may enter into the Premises and perform such maintenance, at the sole cost and expense of the Lessee, plus such maintenance during the Term of Lease. 5.16 5.17 5.18 PAYMENT OF TAXES (1) The Lessee shall pay or cause to be paid all rates, taxes and assessments, of whatsoever description, that may at any time during the currency of the Lease be lawfully imposed and become due and payable upon or in respect of the Premises or any part thereof. (2) The Lessee shall pay any business tax, value added tax, multi-stage sales tax, sales tax, goods and services tax or any other tax lawfully imposed on any rent receivable by the Lessor hereunder, by any governmental or other taxing authority having jurisdiction, whether known as business transfer tax, value added tax, goods and services tax, or by any other name. COMPLIANCE (1) The Lessee shall in all respects abide by and comply with all laws, rules, regulations, guidelines and by-laws of the Federal Government, Territorial Government, or any other governing body whatsoever having jurisdiction. (2) The Lessee shall abide by and comply with all regulations and directives relative to the efficient management and operation of the Airport, including but not limited to regulations and directives regarding sanitation, smoking and security, and to all directions given by the Airport Manager from time to time. SMOKE FREE WORKPLACE The Lessee shall maintain the Premises as a smoke free workplace, and shall not, at any time, permit smoking of tobacco or any other substances whatsoever on the Premises. 5.19 PRODUCTS OFFERED FOR SALE BY THE LESSEE (1) The exclusive right to operate a food and beverage facility and gift shop as granted to the Lessee hereunder shall include the exclusive right and privilege to offer for sale in the Building those items or products which would normally be associated with a food and beverage facility and gift shop operation, including but not limited to northern arts and crafts and souvenirs, including carving, prints, paintings, wall hanging, dolls, clothing and footwear; food and beverage items including coffee, pop, juice, sandwiches, hamburgers and related fast food products, chips, chocolate bars and related snack food items; magazines and newspapers, tobacco products and sundry items. (2) The rights and privileges hereby granted do not include the right to offer for sale any alcoholic beverages, flight meals or snacks, or catering services whatsoever. (3) The Lessee shall ensure that its stock and supply of items or products 64 Nunavut Airport Services Ltd. Request for Proposals offered for sale in accordance with the rights and privileges hereby granted is ample to meet the needs of the traveling public and is of sufficient quantity to fully stock the Premises at all times. Should the Lessee fail to provide an item or product which it has the exclusive right to offer for sale in the Building, after notice provided in accordance with Article 11 hereof, then the Lessor may grant such right and privilege to another party in order to ensure that the needs of the traveling public are, in the opinion of the Airport Manager, being met. (4) 5.20 5.21 The Lessee shall operate and maintain the concession and related services in a first class manner, and shall offer for sale merchandise of high quality and furnish and maintain a standard of service at least equal to that of comparable establishments providing similar services and merchandise in the vicinity of the Airport. PRICING (1) The Lessee shall ensure that the pricing of products and services offered for sale in accordance with the rights and privileges hereby granted are comparable to those of comparable establishments offering similar products and services for sale in vicinity of the Airport. (2) Prior to the commencement of this Lease, the Lessee shall submit to the Airport Manager a schedule of merchandise prices to be in effect on the commencement date of this Lease. Thereafter, the Lessee shall provide the Airport Manager with a schedule of merchandise pricing on a semiannual basis. OBJECTIONABLE GOODS The Lessee shall not by itself nor by any person or persons acting for it, or with its permission, in upon or about the Premises, or any part thereof, bring, keep, sell, store, offer for sale, give away or otherwise use, handle, distribute or dispose of any merchandise, goods, materials, effects, or things which may, for any reason, be deemed objectionable by the Airport Manager. 5.22 CREDIT CARDS The Lessee shall accept a minimum of two (2) major credit cards in payment for goods and services hereunder, in accordance with directives as may be given from time to time by the Airport Manager. 5.23 AMERICAN CURRENCY (1) The Lessee shall accept American currency in payment for goods or services hereunder. (2) The Lessee shall inform the public of the exchange rate granted by displaying signs indicating the exchange rate in a prominent location within the Premises. 65 Nunavut Airport Services Ltd. 5.24 5.25 Request for Proposals HOURS OF OPERATION (1) Premises are to be open to serve the first through the last scheduled departing flight, but NASL may require other hours. At the discretion of NASL, the Lessee may be required to extend their hours from time to time to accommodate passengers from flights that are delayed. (2) The Lessee shall post its normal hours of operation in a prominent location on the Premises. PERSONNEL The Lessee shall engage suitable personnel to efficiently provide and maintain the required standard of service and such personnel shall be properly groomed and attired, all to the satisfaction of the Airport Manager. 5.26 OPERATION OF VENDING MACHINE(S) (1) If the Airport Manager at any time determines that vending machines should be installed in any area of the Building in order to provide service to the traveling public during hours when the Lessee’s food and beverage facility and gift shop is closed, then the Lessee shall be offered the opportunity to provide, install and maintain and operate such machines at such rent as stipulated under the Nunavut Airport Market Rates. Vending machines shall be of the nature and type, and located within the Building, as may be determined by the Airport Manager. (2) The Lessee shall ensure that any vending machines are well stocked at all times. (3) The Lessee shall ensure that any repairs to its vending machines that may be required are conducted on a priority basis and within a reasonable time frame, as determined by the Airport Manager, and that any vending machines shall be kept in a clean and well maintained condition at all times. 5.27 PARKING If the Lessor institutes a parking policy and imposes parking fees, the Lessee shall pay for the parking of automobiles and other motorized vehicles of its employees at the rates imposed from time to time for employee parking. Parking of automobiles and other motorized vehicles shall be in such location as may be designated by the Lessor. ARTICLE 6 - ASSIGNMENT 6.01 PRIOR CONSENT REQUIRED The Lessee shall not make any assignment of this Lease, nor any transfer or sublease of the whole or any portion of the Premises demised or leased hereunder, or the rights and privileges granted hereunder, without obtaining the prior consent in writing of the Lessor. 66 Nunavut Airport Services Ltd. 6.02 Request for Proposals LESSOR’S ASSIGNMENT It is specifically understood and agreed that the Lessor shall be entitled to assign, mortgage, hypothecate or encumber its rights under the Lease, or its wider rights to the Premises, the Building and the Airport, in whole or in part, and upon such assignment, mortgage, hypothec or encumbrance being executed by the Lessor, and notice thereof being given by or on behalf of the Lessor to the Lessee, the Lease shall be subordinated and subjected to the assignment, mortgage, hypothec or encumbrance. 6.03 6.04 LESSEE’S CONSENT (1) The Lessee agrees that it will, whenever reasonably required by the Lessor or the assignee, mortgagee, hypothecary or other secured creditor, consent to and become a party to any instrument or instruments permitting an assignment, mortgage, hypothec or other encumbrance to be placed on the Premises, wherein the operations under the Lease are carried out, in order to formally subordinate the Lease to the assignment, mortgage, hypothec or other encumbrance. However, no subordination by the Lessor shall have the effect of permitting the holder of any assignment, mortgage, hypothec or other encumbrance to disturb the Lessee in its performance of the operations under the Lease or to increase its rental payments as stipulated in the Lease, so long as the Lessee shall comply with all the terms, conditions and obligations contained in the Lease. (2) It is expressly understood and agreed that the Lessor’s right to assign, mortgage, hypothecate or encumber its rights under the Lease shall not in any way prejudice the leasehold interest of the Lessee, or the Lessee’s rights and ability to assign, mortgage, hypothecate or otherwise encumber its leasehold interests granted pursuant to the Lease. TRANSFER OF PREMISES The Lessee recognizes the Lessor’s right to transfer the Premises subject to the terms and conditions of the Lease. ARTICLE 7 - LIABILITY AND INDEMNITY 7.01 CLAIM OR DEMAND The Lessee shall not have any claim or demand against the Lessor or any of its officers, servants or agents for detriment, damage, accident or injury, of any nature whatsoever or howsoever caused to the Premises, or to any person or property, including any structures, improvements, fixtures, equipment, materials, supplies, motor or other vehicles, fixtures and articles, effects and things erected, brought, placed, made or being on or about the Premises unless such damage or injury is due to the negligence of any officer, servant or agent of the Lessor while acting within the scope of their duties or employment. 67 Nunavut Airport Services Ltd. 7.02 Request for Proposals INDEMNITY The Lessee shall at all times indemnify and save harmless the Lessor or any of its officers, servants or agents from and against all claims and demands, loss, costs, damages, actions, suits or other proceedings by whomsoever made, brought or prosecuted, in any manner based upon, occasioned by or attributable to the execution of the Lease, or any action taken or things done or maintained by virtue hereof, or the exercise in any manner of rights arising hereunder, except claims for damage resulting from the negligence of any officer, servant or agent of the Lessor while acting within the scope of their duties or employment. ARTICLE 8 - INSURANCE 8.01 COMMERCIAL GENERAL LIABILITY INSURANCE The Lessee shall place and at all times maintain during the currency of this Lease, commercial general liability insurance with limits of not less than TWO MILLION DOLLARS ($2,000,000.00) inclusive per occurrence for bodily injury, death and damage to or loss of use of property arising out of any of the operations of the Lessee under the Lease, or of any of the acts or omissions of the Lessee or any of his agents, employees or servants; such insurance shall be with a company or companies acceptable to the Lessor and all policies for such insurance shall be in an amount and in a form satisfactory to the Lessor. 8.02 PROPERTY INSURANCE The Lessee shall place and shall at all times maintain during the currency of this Lease, insurance against fire and extended coverage with respect to any improvements, buildings or structures situated, constructed, brought or placed upon the Premises by the Lessee during the Term of the Lease, and any renewals hereof and all policies for such insurance shall be in an amount and in a form satisfactory to the Lessor and be in an amount not less than the full insurable value of the improvements, buildings or structures situated, constructed, brought or placed upon the Premises by the Lessee. 8.03 EVIDENCE OF INSURANCE The Lessee shall submit to the Lessor one of the following documents as evidence of insurance: (a) the insurance policy or policies; (b) certified copies thereof; (c) a Certificate of Insurance; or (d) an affidavit from its insurance company confirming that proper insurance coverage is in place; and any renewals, or changes thereof. 68 Nunavut Airport Services Ltd. 8.04 Request for Proposals POLICIES The Lessee shall not do or omit to do or suffer anything to be done or omitted to be done on the Premises which will in any way impair or invalidate such insurance policy or policies. (1) Every policy shall contain a provision that thirty (30) days written notice of cancellation shall be given to the Lessor. (2) Every policy shall be in a form and with insurance companies satisfactory to the Lessor. (3) Every policy shall expressly name the Lessor as an additional insured. 69 Nunavut Airport Services Ltd. Request for Proposals ARTICLE 9 - DEFAULT AND RE-ENTRY 9.01 DEFAULT AND RE-ENTRY (1) It is expressly agreed that: (a) if the Lessee shall be in default in the payment of Rent or amounts collectable hereunder as Rent, whether lawfully demanded or not, and such default shall continue for a period of thirty (30) days after the Rent has become due and payable; (b) if the Lessee shall be in default of any of its covenants or Leases hereunder (other than its covenant to pay rent or amounts collectable hereunder as rent) and such default shall continue for a period of thirty (30) days (or such longer period as may be reasonably necessary to cure such default considering the nature thereof) after written notice by the Lessor to the Lessee specifying with reasonable particularity the nature of such default and requiring the same to be remedied; (c) if the default set out in the notice given to the Lessee by the Lessor pursuant to paragraph (b) reasonably requires more time to cure than the thirty (30) day period referred to in that paragraph and the Lessee has not commenced remedying or curing the same within the thirty (30) day period or fails to diligently complete the same within a reasonable time; or (d) if the Lessee makes an assignment for the benefit of creditors, or makes an assignment or has a receiving order made against it under the Bankruptcy and Insolvency Act, or becoming bankrupt or insolvent makes application for relief under the provisions of any statute now or hereafter in force concerning bankrupt or insolvent debtors, or any action whatsoever, legislative or otherwise shall be taken with a view to the winding-up, dissolution or liquidation of the Lessee; then the current month's rent together with the rent for the three months next ensuing shall immediately become due and payable, and at the option of the Lessor the Term hereby granted shall become forfeited and void, and the Lessor may without notice or any form of legal process whatsoever forthwith re-enter upon the Premises, buildings or any part thereof in the name of the whole and repossess and enjoy the same as of its former estate. (2) Forfeiture of the Lease by the Lessee shall be wholly without prejudice to the right of the Lessor to recover arrears of rent or damages for any antecedent breach of covenant on the part of the Lessee, and notwithstanding any such forfeiture the Lessor may subsequently recover from the Lessee damages for loss of rent suffered by reason of the Lease having been determined prior to the end of the Term of the Lease as set out herein and this Article and the rights hereunder shall survive the termination of the Lease whether by act of the parties or by operation of law. 70 Nunavut Airport Services Ltd. 9.02 Request for Proposals DISTRESS The Lessor shall be entitled distraint on the goods, chattels, and inventory of the Lessee on the Premises as may be proscribed by law from time to time. ARTICLE 10 - GENERAL 10.01 HEADINGS Any note appearing as a heading in the Lease has been inserted for convenience and reference only and of itself cannot define, limit or expand the scope or meaning of the Lease or any of its provisions. 10.02 DIFFERENCES All matters or differences arising between the Lessor and the Lessee in any matter connected with or arising out of the Lease whether as to interpretation or otherwise, shall be determined by the Lessor but without prejudice to any recourse available to the Lessee at law. 10.03 EFFECT OF THE LEASE The Lease and everything herein contained shall inure to the benefit of and be binding upon the successors and assigns, as the case may be, of each of the parties hereto, subject to granting of consent by the Lessor as provided herein to any assignment, transfer or sub-lease of the Lease. 10.04 GENDER NEUTRAL Where there is a male, female or corporate party, the provisions hereof shall be read with all grammatical changes to gender and number required by the context and all covenants and obligations shall be deemed joint and several. 10.05 Nunavummi Nangminiqaqtunik Ikajuuti (NNI) Bid Adjustment (a) Where a lease is won as a result of an NNI Bid Adjustment, the agreed rent will remain in force only as long as the lease is owned and managed by a company that is on the Nunavut Firm Registry or the Inuit Firm Registry. Should the lease be transferred to a firm that does not qualify for either list, the value of the lease will be adjusted to the lowest bid amount prior to the NNI bid adjustment. (b) Any firm that wins a lease as a result of an NNI bid adjustment must report annually confirming their continued eligibility and confirming that there have been no substantive changes in ownership. Failure to do so would result in the lease being adjusted as above. (c) Where a lease is won as a result of an NNI Bid Adjustment, the Lessee claiming NNI Incentives and no longer meeting the Inuit content level claimed in their proposal will incur penalties commensurate with the bid adjustments applied 71 Nunavut Airport Services Ltd. Request for Proposals to evaluate their proposal in an amount equal to 50 percent of the calculated bid adjustment. (d) Inuit Labour and Inuit Firms will continue to be monitored separately over the term of the lease 10.06 PROVISIONS SEPARATELY VALID If any covenant, obligation, agreement, term or condition of this Lease, or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of the Lease or the application of such covenant, obligation, agreement, term or condition to persons or circumstances other than those in respect of which it is held invalid or unenforceable, shall not be affected thereby and each covenant, obligation, agreement, term or condition of the Lease shall be separately valid and enforceable to the fullest extent permitted by law. 10.07 WAIVER NEGATED The failure by the Lessor or its authorized representative, as the case may be, to require the fulfillment of the obligations, or to exercise any rights herein contained shall not constitute a waiver, a renunciation or a surrender of those obligations or rights or any other. 10.08 NO IMPLIED OBLIGATIONS No implied terms or obligations of any kind by or on behalf of the Lessor shall arise from anything in this Lease and the express covenants and agreements herein contained and made by the Lessor are the only covenants and agreements upon which any rights against the Lessor may be founded. 10.09 ENTIRE AGREEMENT The Lease shall be deemed to constitute the entire agreement between the Lessor and the Lessee with respect to the subject matter hereof and shall supersede all previous negotiations, representations, and documents in relation hereto made by any party to the Lease. 10.10 COSTS If and whenever the Lessor incurs any costs arising out of anything to be done to accommodate any request of the Lessee, all such costs shall be reimbursed by the Lessee upon receipt of an invoice therefor. 10.10 REGISTRATIONS The Lessee shall not do nor permit anything to be done, which would result in a charge, lien, encumbrance or other claim or registration, including any workers’ compensation levies, against the Airport, except with the prior written consent of the Lessor, and the Lessee shall cause any such charge, lien, encumbrance or registration to be discharged or vacated within sixty (60) days of receiving notice of registration, provided that such discharge or vacating shall not prevent the Lessee or anyone holding any such interest from contesting any liability to a third party for any claim or the validity of any charge, lien, encumbrance or registration so discharged or vacated. 72 Nunavut Airport Services Ltd. Request for Proposals ARTICLE 11 - NOTICES Whenever, in the Lease, it is required that notice or demand be given or served by either party of the Lease to or on the other, such notice or demand will be in writing and will be validly given or sufficiently communicated if forwarded by courier, registered mail, priority post mail, telegram, telex, or telephonic facsimile as follows: To the Lessor: Director, Iqaluit International Airport Department of Economic Development Transportation Government of Nunavut P.O. Box 1000, Station 720 Iqaluit, Nunavut X0A 0H0 Facsimile: (867) 979-6985 Services Director Nunavut Airport Services Ltd. Iqaluit International Airport P.O. Box 1859 Iqaluit, Nunavut X0A 0H0 Facsimile: To the Lessee: Lessee Name Lessee Mailing Address Facsimile: 73 & Nunavut Airport Services Ltd. Request for Proposals Such addresses may be changed from time to time by either party giving notice as above provided. If any question arises as to whether any notice was or was not communicated by one party to the other, it shall be deemed to have been effectively communicated or given on the day facsimile confirmation is received by the sender, if sent by facsimile, or if mailed on the day it is received or on the Fourteenth (14th) day after it was mailed or sent, whichever is the earlier. EXECUTION OF LEASE IN WITNESS WHEREOF the parties hereto have executed the Lease on the day and year first above written. SIGNED, and DELIVERED by Lessor in the presence of ) ) ) ) Witness ) for the Government of Nunavut SIGNED, and DELIVERED by Lessee in the presence of ) ) ) ) Witness ) for Lessee Print Name ____________________________ Position ____________________________ 74 Nunavut Airport Services Ltd. Request for Proposals SCHEDULE “A” DRAWING 75 Nunavut Airport Services Ltd. Request for Proposals SCHEDULE “B” SERVICES TO THE PREMISES (1) ELECTRICITY The Lessee shall supply electrical energy to the Premises for general lighting purposes and operation of electrical equipment with a demand load of less than 1.5 kilowatts. The cost of such energy shall be reflected in the rental rates for the space comprising the Premises. The cost for the supply of energy for electrical equipment with a demand load of 1.5 kilowatts or greater shall be borne by the Lessee and is not included in the space rental rates. The cost of such energy will be determined by the Lessor based on the estimated usage of the electrical equipment multiplied by a flat rate and the Lessor shall invoice the Lessee for such cost. Where the demand load of the Lessee’s electrical equipment is 10 kilowatts or greater, the Lessor may require the Lessee to install, at the cost of the Lessee, an electrical meter to record the electrical energy consumption of such electrical equipment. In order to facilitate the Lessor’s calculation of consumption, the Lessee shall supply the Lessor with manufacturer’s specifications or product information indicating the electrical consumption of each electrical appliance or each piece of electrical equipment operated by the Lessee on the Premises. (2) HEATING The Lessor shall provide normal space heating in the Premises and the cost of such heat shall be reflected in the rental rates for the space comprising the Premises. (3) AIR CONDITIONING Where the Building is equipped with a central air conditioning system, the Lessor shall provide normal air conditioning to the Premises. The cost of such air conditioning shall be reflected in the rental rates for the space comprising the Premises. (4) OTHER SERVICES The following additional services shall not be provided in respect of the Premises and the cost of such services shall not be reflected in the rental rates for the space comprising the Premises: a) Janitorial services to all areas of the Premises b) Garbage removal 76 APPENDIX “A” PROPOSAL TO OPERATE A RESTAURANT / CONCESSION / GIFT-SHOP (INCLUDING OPERATING PLAN) Nunavut Airport Services Ltd. Request for Proposals APPENDIX 3 TENANT DESIGN & CONSTRUCTION GUIDELINE 78 TENANT DESIGN AND CONSTRUCTION GUIDELINES FOR IQALUIT INTERNATIONAL AIRPORT Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut DEFINITIONS AND ABBREVIATIONS Airport Authority – Nunavut Airport Services Ltd. (NASL) ATB - Air Terminal Building Airside - Airside is the secured portion of the airport, which may include outdoor/airfield areas as well as areas within airport buildings located post security (after the Security Checkpoint). Base Building Drawings – The base building drawings are drawings provided by the Lessor that documents existing base building condition and planning information pertaining to the Leasehold. Closure Line - Closure Line refers to the storefront entrance door (i.e., sliding, rolling, swing type) location. Concourse - Concourse refers to the main public corridor within the air terminal building providing passenger access to aircraft gates. Concourses are always located past the passenger Security Checkpoints. Deficiency List - Deficiency List refers to the construction items to be repaired, replaced and/or completed in the Leasehold. Demising Wall - Is the common wall separating a Leasehold from an adjoining space. Refer to the appropriate building codes for rating information. Demising Cap - refers to the architectural trim piece provided at the mall face of a Demising Wall. The Demising Cap is a trim element between Storefronts and is provided as part of the base building. Design Control Zone – Area established by the Lessor within the Leasehold within which the Lessor shall approve all Tenant finishes, materials, light fixtures, fittings, signage, displays and lighting elements. Development Plans – The Development Plans are the detailed design and construction documents prepared by the Tenant’s Architect or Engineer of Record and submitted by the Tenant as part of the Facility Alteration Permit application and building permit process. This includes all relevant drawings, specifications for the proposed project including Architectural design drawings, finishes and samples, detailed engineering drawings with all relevant sections, elevations, plans and construction details. Facilities Specialist – Reference to the NASL Facilities Specialist or assigned Engineering staff designated to assist Tenant through the facility development process. Facility Alteration Permit – Airport Construction Permit issued by NASL. Permit process in place to approve, track, monitor and record Tenant Leasehold construction and ensure that it meets the NASL standards Appendix 3 November 2014 2 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Field Verification - Field verification refers to the process whereby the Tenant or Tenant’s Architect and/or Engineers of record as well as Contractor physically confirm the dimensions and existing condition of the Leasehold, including the vertical height(s), prior to start of design and at completion of construction. Groundside - Groundside is the unsecured portion of the airport, which may include outdoor areas such as curb front or public roadways as well as areas within airport buildings located pre-security checkpoint. Lessor – Government of Nunavut, as represented by the Minister of Economic Development and Transportation through its authorized agent, Nunavut Airport Services Ltd., agent only for the purposes of administering the lease. Lease - Lease is the agreement between the Tenant and the Government of Nunavut. Where there is a conflict between the Lease and the Tenant Design and Construction Manual language, the language in the Lease shall prevail. Leasehold - The area of the building leased by the Lessor to the Tenant as defined in the Lease Agreement and Lease Outline Drawing (LOD) Lease Line - The Lease Line is the boundary of the floor area of the Leasehold. The Lease Line generally occurs at the exterior of the storefront demising wall and the centerline of the demising wall(s) between spaces. Lease Outline Drawing (LOD) - The Lease Outline Drawing of the Leasehold shows the Lease Line. In addition to the geometrical configuration of the Leasehold, dimensions and floor area will also be indicated on the Lease Outline Drawing. The Tenant is responsible for field verifying the dimensions as well as the floor area. Merchandising Plan - The comprehensive written plan provided by Retail Tenant defining product mix, product price points, product display strategies, store layout, store design features and revenue projections. Passenger Hold-room - Boarding Lounge/Hold-room refers to the rooms located adjacent to an aircraft gate containing seating for passengers to use while waiting to board a flight. Storefront - Front face of the Leasehold. A Storefront design may either be open or enclosed. When the Leasehold has more than one exposure to the Concourse the storefront refers to all facades. This may include portions of the Demising Wall that separates the leasehold from the concourse and/or a public lobby. Tenant - The Tenant is the Lessee of the Leasehold. The Lessee may be a person or a legal entity. YFB – Is the International Air Transport Association airport code for Iqaluit International Airport. Appendix 3 November 2014 3 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Contents 1 INTRODUCTION ..................................................................................................................... 6 2 ATB Renderings-Interior Concept ........................................................................................... 7 3 Concession Floor Plans ........................................................................................................... 8 4 Application and Submission Requirements ........................................................................... 10 5 4.1 General Requirements................................................................................................... 10 4.2 Design and Construction Document Submission .......................................................... 10 4.3 Base Building Drawings ................................................................................................. 13 4.4 Submission Review and Approval ................................................................................. 13 4.5 Base Building Modifications ........................................................................................... 13 Architectural & Structural Standards ..................................................................................... 14 5.1 Design Criteria ............................................................................................................... 14 5.2 General Requirements................................................................................................... 15 5.3 Architectural ................................................................................................................... 15 5.4 Base Building Structural ................................................................................................ 20 5.5 Acoustics ....................................................................................................................... 20 5.6 Signage .......................................................................................................................... 20 5.7 Menu Board Criteria (Food and Beverage Units) .......................................................... 22 5.8 Food Storage and Waste Handling ............................................................................... 23 5.9 Sustainable Design Criteria ........................................................................................... 23 5.10 6 7 Universal Design Guidelines ..................................................................................... 23 Mechanical Standards ........................................................................................................... 23 6.1 Heating, Ventilating and Air Conditioning (HVAC) Systems.......................................... 23 6.2 Plumbing Systems ......................................................................................................... 25 6.3 Sprinklers & Fire Protection ........................................................................................... 26 6.4 Exhaust and Odour ........................................................................................................ 27 6.5 Thermostats and Controls ............................................................................................. 28 6.6 Grease Interceptors ....................................................................................................... 28 6.7 Permits ........................................................................................................................... 28 6.8 Inspections ..................................................................................................................... 28 Electrical Standards ............................................................................................................... 28 7.1 General Requirements................................................................................................... 28 7.2 Electrical Service ........................................................................................................... 29 7.3 Fire Alarm Systems ....................................................................................................... 30 7.4 Emergency and Exit Lighting ......................................................................................... 30 7.5 Lighting .......................................................................................................................... 31 7.6 Metering ......................................................................................................................... 31 7.7 Permits ........................................................................................................................... 32 7.8 Inspections ..................................................................................................................... 32 Appendix 3 November 2014 4 Tenant Design and Construction Guidelines Iqaluit International Airport 8 9 Government of Nunavut Telecommunication Standards .............................................................................................. 32 8.1 IT Voice and Data Services ........................................................................................... 32 8.2 Security, CCTV and Access Control Systems ............................................................... 33 Construction Rules and Procedures ...................................................................................... 34 9.1 Working on Airport Property .......................................................................................... 34 9.2 Safety and Security........................................................................................................ 34 9.3 Construction Rules and Procedures .............................................................................. 35 9.4 Design Modifications During Construction..................................................................... 36 9.5 Occupancy Permit ......................................................................................................... 36 10 Project Closeout ................................................................................................................ 37 10.1 General Information ................................................................................................... 37 10.2 Inspection and Declaration ........................................................................................ 37 10.3 Project Closeout Manual............................................................................................ 37 10.4 Operation and Maintenance Manuals ........................................................................ 38 10.5 As-Built Record Drawings .......................................................................................... 40 Appendix 3 November 2014 5 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 1 INTRODUCTION The Iqaluit International Airport Project has been initiated to maintain the Airport’s current role as the gateway to Nunavut, a hub for regional services and technical / staging stop for military, emergency, exploration and development. The key project objectives are to improve the overall passenger experience, as well as the operational efficiency and safety. The new Air Terminal building will provide a strong architectural presence and distinctive cultural character with an appropriate reflection of Nunavut values and culture, commensurate with the airport’s dual role as critical transportation infrastructure and as an important community meeting space in the Capital, and this Tenant Design and Construction Guideline is intended to ensure consistent and complementary designs for concession areas. The building will provide sustainable, energy efficient systems and materials that recognize the full life cycle of the building and its operations, and accommodate passengers of various abilities. Furnishings in the public areas have been selected for both their durability and for compatibility with the life and culture of the north. Typical hold-room bench seating is combined with organic shaped soft seating elements; the Meet and Greet area is highlighted with several large freeform seating elements reminiscent of rock or ice formations. The fabric and finishes are all of an institutional grade that will and require a minimum of maintenance and enable them to withstand the intensive use of an airport facility. The interior colours are founded in the local environment: blues from the sky and ice, greens from the plants and northern lights, yellow and gold from the art and the light, and neutrals from the earth, the rock and the weathered wood. Wood finishes are used selectively as highlights throughout the public areas. Patterns of ice, drifting snow and northern lights are reflected in the glazing and carpet patterns, and the new design provides a finished ceiling, reflecting the soft curve of the roof – focusing on the spatial volumes and catching the soft gradations of light and shade. Nunavut art is also expected to be a major feature of the new airport. Tenants will be required to provide Design and Construction Plans that respect the following criteria: • To create design solutions including service counters, display cases and circulation pathways within the Leasehold that place users first • To provide designs in public view areas that will complement the architectural qualities of adjoining public space, as well as adjoining facades • To plan premises that are functionally efficient and maximize in-unit storage Key information provided in this manual includes: • Requirements and procedures for making design submittals, permit applications and the development approval process • Design technical requirements • Design intent of the Retail and Concessions Program • Universal design guidelines • Tenant’s interface with governmental agencies • Construction procedures, access, and restrictions • As-Built documentation and Project closeout requirements Appendix 3 November 2014 6 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 2 ATB Renderings-Interior Concept Appendix 3 November 2014 7 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 3 Concession Floor Plans South East Side-Protected Zone: Appendix 3 November 2014 8 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut North East Side-Public Zone: North West Side-Public Zone: Appendix 3 November 2014 9 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 4 Application and Submission Requirements 4.1 General Requirements The Tenant submission shall include , detailed drawings, specification and supporting documentation for the leasehold development. Each submission will be reviewed on its’ individual merit and in the context of the immediate environment of the Tenant Leasehold. NASL reserves the right to require changes to, or reject elements of the proposed Leasehold development in whole or in part. All submissions shall include two (2) black line drawing sets and one set of electronic files. Submission shall include copies of all reports, construction specifications, and material samples boards. Additionally Architectural renderings may be required and shall be submitted at the Lessor’s request. Submittal of ACAD drawing files shall be in AutoCAD Release 2007 or higher. Drawings to be standard size A1 format to scale with dimensions. Drawing submittals shall conform to the following metric measurements: a) Key plans: 1:500. b) Floor plans, reflected ceiling plans, interior elevations, sections and details: 1:50. c) Electrical and mechanical drawings: 1:50. d) Flow diagrams: 1:100. e) Storefronts, signage, logos and lettering in elevation, section or detail: 1:25. Submitted one hard copy of Construction specifications, design reports or other written supporting documentation detailing the scope of work. Material samples and architectural renderings to be submitted on standard 280 mm x 430 mm (11” x 17”) size boards. Construction schedule shall be provided with submission in bar chart format indicating all major elements and construction milestone dates. Submitted Design and Construction Documents shall be signed and sealed by the Tenant’s Architect and Engineer(s) of record. 4.2 Design and Construction Document Submission Tenants are required to submit, if applicable, the following Leasehold development design and construction documents. Architectural a) Key Plan showing location of the Leasehold within the building. b) Fully dimensioned Architectural Floor Plan indicating partitions, type of construction, placement of fixtures, counters, displays, furnishings and floor Appendix 3 November 2014 10 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut pattern(s), and washroom location, if applicable. c) Structural, Mechanical, Plumbing, Electrical and Telecommunications Design Drawings (including single line diagrams) and base building modifications, if required. d) Fully dimensioned interior and exterior wall elevations, sections and details necessary for construction. Include the Interior and exterior elevations (of all Leasehold walls) indicating materials and finishes, as well as signage and/or logo. e) Fully dimensioned sections and construction details necessary for construction. f) Fully dimensioned storefront wall elevation and section showing storefront design including graphics, signage, materials and finishes. Storefront wall elevation and section showing storefront design including graphics, signage, materials and finishes. (If requested by the Lessor, provide a colored perspective drawing of the premises with signage, as viewed from the passenger’s perspective in the concourse.) g) Millwork – fully dimensioned sections and elevations of all counters and display cases indicating materials and finishes. h) Reflected ceiling plan(s) showing ceiling materials, various heights, location and type of all light fixtures, diffusers, grilles, sprinkler heads, emergency exit signage (if applicable), smoke detectors, fire alarms, etc. Provide fixture cut-sheets of all proposed lighting fixtures, diffusers, grilles, sprinkler heads, fire alarms, smoke detectors, etc. Include manufacturer’s name, catalogue number, catalogue cut, lamp types, mounting bracket/support apparatus. i) Room finish, colour, door and hardware schedules. j) Fixture and equipment schedules. k) Furniture layout, Room finishes and door and hardware schedules. l) Sample board of proposed materials, colours, finishes and furnishings for all areas open to public view. Colour photos of fixtures and furnishings are acceptable; however, physical samples of materials and finishes are required. m) Technical Specifications. n) Details of securing the Leasehold when closed. o) Signage – sections, elevations and related details, along with technical information. For Sign, logo and lettering; provide fully dimensioned elevations of the overhead exterior sign(s) and flag sign(s) depicting letter style and size, and note all colours and materials. This submission shall also include signage and/or logos on the interior walls of the Leasehold. p) Temporary Construction Hoarding and dust control plans. q) Customer circulation (flow) diagram within Leasehold. r) Merchandising Plan (Retail) s) A Design Report for Leasehold shall include statement of design objectives and design attributes, systems performance criteria, supply/demand load calculations for electrical and mechanical services, hydraulic calculations for fire sprinkler system, structural analysis/confirmation of any point loads for equipment installed on floor or suspended from ceiling structure, code compliance analysis for fire exits, universal design compliance analysis, etc. Structural a) Drawings and specifications for proposed structural elements including Tenant fitup point loads imposed on the base building structure. b) Drawings indicating size and location of floor, ceiling structure and/or roof penetrations. c) Base building modifications, if required. Appendix 3 November 2014 11 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Heating, Ventilation and Air Conditioning a) Floor plan background drawing showing fan coil or Variable Air Volume (VAV) units, all ductwork, locations of grilles and/or diffusers, thermostats, etc. and single line diagrams. b) Heat gain/loss calculations. c) Make-up air requirements (calculations and/or drawings). d) Verification of CFC/HFC/Halon free systems. e) Technical specifications and fixture cut sheets f) Base building modifications, if required. Plumbing a) Floor Plan background drawing showing all plumbing, including water supply lines, floor drains, traps/clean-outs, shutoff valves, backflow preventers, etc. b) Riser diagrams. c) Venting. d) Hot water tank location, sizing, and technical information. d) Technical specifications. e) Base building modifications, if required. Fire Protection, Sprinklers and Alarms a) Sprinkler distribution changes, head layout and hydraulic calculations (if applicable). b) Fire extinguisher locations. c) Smoke detectors (show on architectural reflected ceiling plan). d) Emergency evacuation speakers, pull stations and fire alarm wiring. e) Heat/smoke baffles (if applicable). f) All other life safety devices complete with system tie-in and interlock information. g) Emergency lighting. h) Technical specifications. i) Base building modifications, if required. Electrical a) Floor Plan background drawing showing single line electrical distribution layout, receptacles, light switches, light fixture locations, electrical panels, service hook- up location, size and type of transformer, (if required), etc. b) Fixture schedule showing quantity and watts for each fixture. c) Special lighting, (i.e., signs, logo, etc.). d) Exit lights. e) Emergency lighting. f) Light fixture cut-sheets. g) Calculations of electrical demand and connected loads in table on drawing. h) Security system (if applicable). i) Equipment schedule on drawing. j) Technical specifications. k) Base building modifications, if required. Telecommunications a) IT, Voice and Data Services, Security Systems, b) Variable messaging signage, public display screens, monitors or televisions. c) Cabling diagrams. Appendix 3 November 2014 12 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut d) CCTV Camera placement. e) Technical specifications. f) Equipment schedule to be included on drawings. 4.3 Base Building Drawings Base Building drawings shall be provided by NASL for specific Tenant Leasehold, drawings can be requested through NASL. Drawings shall include: a) Key Plan showing the location of the Tenant’s Leasehold in the building. b) Architectural floor plan and, if applicable, reflected ceiling plan of the Leasehold. c) Structural, Mechanical, Electrical, Plumbing and Sprinkler Plans of the Leasehold. (if available) d) Elevations and additional details that the Lessor selects as applicable to the Leasehold. The Tenant is responsible for field verifying existing site conditions and the accuracy of all drawings provided. 4.4 Submission Review and Approval NASL and the Government of Nunavut will review design and construction document submissions for Tenant Leaseholds on the basis of merit and in consideration of conformance with requirements contained in this manual, completeness, quality of design and project documentation, and appropriateness in the context of the immediate environment of the Tenant Leasehold. The Lessor reserve the right to require changes to the design, as deemed necessary, or reject elements of the proposed development plan in whole or in part, at its sole discretion. The review and approval of the submission shall not be deemed to certify that the Tenant’s documents comply with all applicable legal requirements and shall not relieve the Tenant of the responsibility to verify all job conditions include code requirements, and without limitation, dimensions, locations of utilities, lease lines, expansion joints and required clearances, etc. 4.5 Base Building Modifications Should mechanical and/or electrical design loads exceed base building services provided to Tenant Leasehold, additional capacity or servicing can be requested of NASL. On agreement to a Tenant’s request for additional mechanical, electrical or telecommunication services, NASL shall, at the Tenant’s expense, obtain design and construction services to provide the additional services as agreed. The Tenant shall be responsible for all costs incurred by the owner for base building modifications, additions or deletions including all related design, administration and construction costs. The Tenant’s contractors shall not be permitted to perform work outside of the Leasehold without the prior express written permission of NASL. Appendix 3 November 2014 13 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 5 Architectural & Structural Standards 5.1 Design Criteria MISSION STATEMENT FOR RETAIL AND FOOD AND BEVERAGE FACILITIES: NASL recognizes that retail and food and beverage facilities in the ATB will be pivotal in creating positive impressions for visitors to Iqaluit, as well as local frequent fliers. In view of this, NASL will carefully evaluate Tenant design proposals/submittals to ensure that the ATB will showcase world-class service delivery of retail and food and beverage facilities. The ATB shall present the best mix of local, national and international concepts. To accomplish its mission, NASL intends to encourage creative concepts that are evocative of Iqaluit and Nunavut in a subtle and sophisticated manner. The design of Leasehold storefronts and concession spaces shall strike a balance between variety and consistency. Variety in this context means that NASL welcomes creativity and diversity of Tenant designs, while understanding the requirements of brand identity. Consistency refers to the requirement for Tenant leasehold designs to complement the ATB architecture. Further, the design of all concession spaces must be respectful of customer needs, as well as Universal Design principles. Tenants are encouraged to provide leading edge contemporary design solutions that capture the “essence” and feel of Iqaluit and Nunavut without resorting to a literal “theme park” approach. Tenants are also encouraged to explore the creative use of brands or sub brands, colours, forms, materials and other media. Tenant Leasehold developments shall satisfy the following design criteria: a) To create top quality, cutting-edge designs consistent with the terminal architecture. Concepts and materials used in concessions should be the same level of quality to those found in the ATB. b) To create concessions that will be distinctive, memorable and uniquely designed for this terminal. c) To creatively plan concessions that provides passenger convenience and quality service. Interior layout shall be operationally efficient and maximize in-unit storage. d) Exterior demising walls of leasehold shall be compatible with adjoining facades. e) Signage on exterior demising walls fronting public space shall conform to standards contained in this manual. A total store design concept must be developed. A total store image coordinates storefront and interior design with the store’s merchandizing plan. Tenants shall provide a consistent image, signage and finishes package for the entire Leasehold. This requirement is also applicable to tenants having multiple “subtenants” such as a food court, representing more than one brand or concept in a single Leasehold. Design Control Zone a) A design control zone is illustrated on the storefront condition drawings in the appendices. Except where shown otherwise, this zone typically extends 1200 mm inboard of the Lease Line from floor to ceiling. b) Within the design control zone a minimum ceiling height of 3040 mm is required and the ceiling shall be constructed of drywall or other contiguous hard surface material. Appendix 3 November 2014 14 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut c) Lighting within the design control zone shall comply with the fixture types described in this manual. d) Tenant’s floor shall transition flush to the base building floor along the Lease Line using a stainless steel transition strip (Schluter or similar). 5.2 General Requirements This section contains key facility design and technical requirements for use in development of Tenant Leasehold. Key points are as follows: The ATB is classified as noncombustible by the National Building Code with requisite flame spread ratings and smoke development classification of materials. Documentation demonstrating compliance with these requirements shall be provided by the Tenant if and when requested by NASL. A copy of the Code Summary for the base building ATB will be provided upon request. Tenant Leasehold shall utilize high quality building materials and workmanship, comparable to the base building. Merchandizing plans shall not generate a customer queue that crosses the lease line or allow “self-serving” from the concourse side of the storefront. Any transition in floor level shall not exceed two percent (2%) slope and shall only occur within Tenant Leasehold. Base building Tenant space demising walls are not designed to support wall mounted plumbing fixtures or other concentrated equipment loads; therefore, adequate structural reinforcement must be provided for such items when provided in Tenant Leasehold. Base building Tenant space demising walls are not insulated; therefore, if acoustical privacy is required within Tenant Leasehold, insulation must be provided as part of the Works. Base building services are physically located in some Tenant Leasehold space (i.e., duct shafts with fire rated enclosures, base building services passing through the ceiling, etc.). Access panels for servicing by the Lessor shall be part of the Works. Access door(s) shall have fire-resistant rating dependent on the requirements for each enclosure. Location of the access door(s) must be suitable for the Lessor’s maintenance needs. Typically, building services are terminated at the perimeter of a Tenant Leasehold (in the ceiling). Connection of Tenant Leasehold services to the base building services shall be at the Tenant’s expense. 5.3 Architectural General Design Information for Air Terminal Building a) Concrete and/or steel superstructure, with or without metal deck, depending on location. b) Exposed structure above Tenant Leasehold. c) Finished ceiling above open Tenant Leasehold. Appendix 3 November 2014 15 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut d) Flat concrete floor with smooth finish to receive Tenant’s floor finish. Additional preparation of the surface may be required by the Tenant. e) Tenant Leasehold demising walls, where provided in the base building, will be drywall on metal studs. Drywall will be taped, filled, sanded and have a primer coat of paint on it up to 3040 mm above the floor, or to the underside of structure above, depending upon location. f) Storefront bulkheads are provided in some locations only. Field verify locations shown on base building drawings. g) Storefront pier/demising cap at each demising wall or column fronting public space. General Design Guidelines for Tenant Leasehold Finishes and Materials a) Tenant Leasehold shall be completely fitted-up, including partitions (including storefront, where applicable), ceiling, lighting, fire protection systems, mechanical and electrical distribution and related equipment, doors and hardware, flooring, painting and/or wall coverings, millwork, furniture, signage, etc. b) Finishes shall be installed on demising walls and/or soffits that are visible from common-use public areas, at the Tenant’s expense. c) All materials shall be new and workmanship shall be of high quality. All Finishes shall be durable and long lasting, d) All millwork and casework in public and passenger processing areas shall be constructed to AWMAC Premium Grade standards and specifications, except that back of house millwork to conform to AWMAC Custom Grade standards and specifications. e) Display cases shall be made of approved materials and shall be internally illuminated. Pedestal and/or freestanding display cases are acceptable only within Tenant Leasehold. f) Countertops shall be fabricated from solid or otherwise seamless materials; e.g., solid surface material (Corian or similar), glass, solid or edge banded wood, formed metal, stone/marble, artisan finished concrete, etc. Plastic laminate countertops will not be permitted. g) Plastic laminate is not permitted between 0 and 355 mm above finish floor. h) Food preparation areas are required to have impervious nonslip flooring materials. Acceptable Materials within the Leasehold a) Glass – etched (sealed), sandblasted (sealed), tinted, clear and glass block. b) Wood – natural, stained, painted. c) Metals – factory painted, stainless steel, bronze, copper, brass, anodized or factory painted aluminum, or perforated. d) Tile – high quality glazed and unglazed thin-set wall and floor tiles are acceptable. e) Natural stones – marble, granite, slate and limestone. f) Plastic laminates – solid colours are preferred. Decorative patterns and wood grained plastic laminate will be evaluated on a case-by-case basis. g) Solid surfacing materials – e.g., Corian or similar. h) Lighting (refer to Sections 7.5). Appendix 3 November 2014 16 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Unacceptable Materials within the Leasehold The materials listed below shall not be acceptable as part of the design for a storefront or leasehold: a) Artificial versions of stone, marble, tile, wood or other natural materials. b) Brick or simulated brick. c) Indoor/outdoor carpet. d) Any material that would constitute a fire and/or public hazard. e) Any material that, in the Lessor’s opinion, is low quality, nondurable and/or difficult to maintain. f) Fluorescent paint. g) Vinyl tile or sheet vinyl within the sales area. h) Pegboard on walls or fixture systems. i) Metal linear ceiling systems. j) Acoustic tile ceilings k) Exposed ductwork, conduits, pipes and other mechanical and electrical equipment in any area within public view. l) Security alarm tape on storefront windows. m) Any material used in a manner that exposes the unfinished edge of the material when used on casework, millwork, counters etc. (e.g. plastic laminate). Ceiling Construction and Access Refer to base building drawings for specific details. a) Ceilings in Tenant Leasehold may be constructed of concealed spine mineral fissure tile, drywall, plaster, or other materials subject to approval. Exposed grid suspended ceilings in areas exposed to public view will be limited to 14 mm ‘T’ installed in a 610 mm x 610 mm configuration. Back of house locations may use 610 mm x 1200 mm grid. Colour of grid and tile shall match. Suspended ceiling tile must be finely textured with at least a tegular edge. b) Combustible materials are not allowed in ceiling. c) Ceiling design shall incorporate access to all Lessor and/or Tenant equipment requiring inspection and maintenance. Tenant’s consultants shall determine the required sizes and locations of access panels. d) The minimum ceiling height allowed in areas of public/passenger occupancy is 3040 mm above finished floor, unless restricted by existing conditions or when approved by NASL for localized design effect. Storefronts a) General Requirements i) The Tenant’s storefront design shall typically be open with a security grille closure. T h e visible merchandising design shall incorporate individuality and creativity, which will contribute interest and character to the overall airport retail environment. ii) Display pedestals or free-standing storefront elements are acceptable, providing they are within the leasehold and adhere to the parameters set forth in this manual. iii) No surfaces or projections interfering with, or hazardous to, pedestrian traffic may be part of the design. Appendix 3 November 2014 17 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut iv) Merchandising plans shall be designed so that points of sale do not generate a customer queue that crosses the Lease Line. Tenants wishing to use stanchions for queue control shall use the following manufactured specialty item: • Lavi Industries ‘Beltrac’ with satin finish, black cap and tape • Alternates permitted only when pre-approved by NASL. b) Closure Types The following closure types are acceptable: i) ii) iii) iv) v) Appendix 3 November 2014 Horizontally Sliding Screens: Screens shall stack within enclosures to conceal from public view when in open position. Door pocket closure panels are to be equipped with touch latch or a recessed lock. Ceiling tracks shall be fully recessed. Lead and trailing posts are to be equipped with top and bottom locks keyed to NASL standards Surface mounted striker posts are not permissible. Screen curtains shall be constructed of ~ 150mm wide modules with top and bottom aluminum plates linked together by a continuous aluminum hinge and be glazed with clear polycarbonate panel. The polycarbonate panels shall be ~ 140mm wide and 1.6mm thick and panel shall be entirely recessed in the aluminum hinge throughout its full height. Aluminum finish shall be brushed clear anodized. Acceptable folding screen shall be MobiFlex Impact. Alternates including Dynamic Closures Prestige or Metro Door Visionguard will be considered upon request. Shop drawings must be submitted for review and approval. Rolling overhead grilles: grilles shall have straight lattice curtain pattern with horizontal rods at 50 mm on centre and vertical rods at 225 mm on centre. Finish being #4 stainless steel or clear anodized aluminum finish. Grilles shall be motorized and have a lock keyed to Lessor standards and an electric safety edge and interlock switch. Acrylic or glass grille infill panels are not acceptable. Acceptable types of grilles include Series 671 by Overhead Door, or other manufacturer’s model in similar pattern and dimensions. Grille and/or housing shall be independently laterally supported and shall not be supported directly form the base building structure. Hollow-metal (steel) doors and frames for non-public areas and fire-rated hollow-metal (steel) doors and frames in walls forming required fire separations. Swinging frameless glass doors with top and bottom rail or patch pivots and with safety glass and polished stainless steel trim and hardware. Swinging frameless glass doors with top and bottom rail or patch pivots and with safety glass and polished stainless steel trim and hardware. Sliding glass doors with safety glass and polished stainless steel trim and hardware. When open, these shall be stored in an enclosed space(s) concealed to the passerby. In the case where showcases extend beyond the Leasehold entrance closure, sliding doors may be stacked behind the showcase and used as the back of the showcase during business hours. 18 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut vi) Wood closures, trim and fittings at Leasehold entrance are subject to the code limitations applicable to noncombustible buildings. Finish subject to the approval of NASL. vii) Sliding, folding or overhead closures shall be complete with emergency exit man doors where required by code. viii) Closures shall be complete with emergency exit man doors where required by code. `ix) Closure positions shall be located as indicated on the schematic plans and sections in this manual. Cylinder locks in all leasehold closures and interior partition doors shall be supplied and installed by Security Lock and Safe Ltd. at the Tenant’s expense. The standard cylinder type is CY415N mortise cylinder manufactured by Abloy. All cylinders shall also be keyed to match the base building master keying system. c) Alternate Closed Storefront Design i) ii) iii) iv) v) Typically, the Tenant’s storefront is to be located on the Closure Line. All storefront entrance doors shall be located behind this line within the Leasehold. Storefronts shall create a “show window” design with a distinct entrance and large display windows. The minimum acceptable width of any storefront entrance is 1830 mm. A minimum of 70% of the storefront, measured in clear storefront opening area, shall be glazing. The maximum use of clear frameless glass as a storefront material is encouraged. Edges of joints for frameless glazed storefronts shall be ground, polished and sealed with clear silicone sealant. Acceptable Closure Types The following closure types are acceptable at closed storefront applications: • Solid-core swing or sliding doors are acceptable. • Swinging frameless glass doors with top and bottom rails or patch pivots. • Sliding glass doors – when open, these shall be stored in an enclosed space(s) (or pockets) concealed to passersby. In the case where showcases extend beyond the store closure, sliding doors may be stacked behind the showcase and used at the back of the showcase during business hours. • Sliding of grilles as defined above. • Wood storefront closures, trim and fittings are subject to code restrictions for noncombustible buildings. Finish subject to NASL approval. Interior Window Treatment Interior window treatments within the ATB are designed for a consistency when viewing the façade from the exterior. Any interior windows treatments must be submitted for review and approved by NASL prior to installation. Appendix 3 November 2014 19 Tenant Design and Construction Guidelines Iqaluit International Airport 5.4 Government of Nunavut Base Building Structural Structural modifications to the base building shall generally not be considered. Roof-mounted antenna, receivers or satellite receiving dish antenna, if required, must be pre-approved by NASL prior to installation. All antenna shall be mounted in location designated by NASL on roof top antenna mounting rails designed for such equipment. 5.5 Acoustics Tenant Leaseholds featuring background music must take precautions to ensure sound and/or vibration will not be transmitted to adjoining Tenant Leasehold, both vertically and horizontally. Acoustic baffling may be required in partitions and ceilings. Also, speakers may need to be housed in sound-attenuating enclosures. Speaker system operation in Tenant Leasehold shall not interfere with the base building public address system or shall be automatically cancelled during announcements on building public address system. Sound systems are not allowed in Tenant kiosks. Locations and output directions of loudspeakers located within Tenant Leasehold shall be shown on submission drawings. Demising walls in Tenant Leaseholds have a minimum rating of STC 48. Higher STC ratings may be required and shall be provided by the Tenant for certain Leaseholds due to noise/sound generation. Sound systems in Tenant Leasehold shall be interlocked with the base building fire alarm system, which will terminate operation upon signal from the fire alarm. Interface work shall be carried out by NASL at the Tenant’s expense. 5.6 Signage Sign faces on exterior signs shall be designed as an integral part of the storefront design with letter size and location appropriately scaled and proportioned to the overall storefront design. All signage must be professionally designed and fabricated. Designs shall be detailed and included with FAP submission. Design-build signage services will not be accepted. All store identification designs shall receive written approval from the Lessor prior to fabrication. An illuminated overhead sign box above the storefront entrance may be installed at the Tenant’s expense. A non-illuminated flag sign projecting 90 degrees from the “exterior bulkhead” of the Leasehold may be provided at the Tenant’s expense. Signage locations within Tenant Leasehold are subject to NASL approval. Appendix 3 November 2014 20 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Logo and/or characters shall project no more than 100 mm from the face of walls and/or storefront enclosing Tenant Leasehold sign zone. Tenant signage on exterior of storefront shall be limited to business name and logo only. Tag lines, bylines or advertising slogans are not allowed. All signage that contains language shall be in four languages: Inuktitut, Inuinnaqtun, English, and French, using translations into Inuinnaqtun provided by GN. Guidance for language requirements in territorial institutions can be found in The Official Languages Act, and in the Inuit Language Protection Act Within Design Control Zone, illuminated signs shall conform to following specifications: a) Text is limited to individual letters/logo only and should be pin mounted or suspended with a concealed mounting system. b) Tag lines, bylines or advertising slogans are not permitted. c) Tenant Leasehold having corner storefront opening may request one (1) sign per elevation. d) Metal face, metal return. e) Pushed through acrylic, internally illuminated characters in a metal-faced background. f) Metal channel with halo lighting. g) Glass: i) Painted, silk-screened, gold/silver leaf, applied to inside surface of glass. ii) Raised or etched letters and/or logo applied to glass or solid storefront in metallic finish (i.e., brass, bronze, copper or stainless steel). iii) Raised or etched letters and/or logo applied to glass or solid storefront using solid colour letters (i.e., lacquered or vinyl coated). iv) Suspended neon behind glass, forming letters or logo. Neon must be easily readable and protected from public contact. Flag signage is limited to the following types. Text is limited to face-illuminated individual letters/logo only and shall be pin-mounted with a projection from the blade not exceeding 75 mm. Lettering and/or logo shall be applied to both sides of the sign: a) Solid metal letters/logo; e.g., copper, stainless steel, aluminum. b) Solid plastic letters/logo. Inside Tenant Leasehold illuminated and non-illuminated signage shall conform to following specifications: a) Engraved, etched or sandblasted in granite, marble or stone. b) Wood carved, routed, laser cut, painted with raised or etched letters and/or logo. c) Artisan’s plaque made of copper, stainless steel, aluminum or wood (with approved finish). d) Graphics on any glass or solid panel may be in gold leaf, pressure sensitive vinyl or other method of attachment. Appendix 3 November 2014 21 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut The following signage elements or components are prohibited: a) Permanent promotional signs of any type, or registered trademark other than those owned by the Tenant. b) “Box” signs or “suitcase” signs. c) Handwritten signs. d) Signage on exterior of ATB. e) Free standing stanchion signs beyond Tenant Lease line. f) Simple painted signs. g) Nonsolid raised plastic letters. h) Exposed conduit, tubing, raceways, ballasts, transformers or other equipment. i) Labels or other identification (including sign manufacturer’s label and/or trademark) are not allowed on exposed surface of signs, except any required by code. Any such labels shall be displayed in an inconspicuous location. Decals for credit cards and hours of operation must be posted in public view. Decals shall be clustered in an area not exceed 12” x 12” (300 mm x 300 mm), which shall be shown in Final Design Submission. The area shall be remote from other signage provided in Tenant Leasehold. Edge or back-lit translucent signs and front-lighted opaque signs shall not produce visible brightness/luminance exceeding 200 foot-lamberts. Illuminated letters and logos (reverse channel letters, neon, etc.) shall not produce visible brightness/luminance exceeding 250 foot-lamberts. Access must be provided within Tenant Leasehold for servicing of illuminated sign(s) mounted on exterior walls and/or storefront. Electrical service for illuminated signage shall come from electrical panel within Tenant Leasehold. 5.7 Menu Board Criteria (Food and Beverage Units) All menu boards must be professionally designed and fabricated, and subject to NASL prior approval. NASL encourages the display of ready-to-serve foods and the serving counter. Under no circumstances will the Tenant be permitted to display other signs, advertising or displays such as are often made available from food or beverage suppliers. Beverage dispensing units may not bear any advertisements for the beverage companies, nor may they be incorporated into the menu boards. Menu boards shall be externally illuminated. White, backlit Plexiglas will not be permitted. Backlit or internally illuminated menu boards will not be permitted except for photographs of food items. All permanent information must be painted, silk-screened, etched or applied to any of the following materials: a) Metal – neutral, painted or anodized b) Wood – natural or painted c) Plastic laminate Appendix 3 November 2014 22 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut d) Glass – clear, translucent or painted Changeable information may be displayed using vinyl, die-cut numerals or letters, chalkboards, etc. Changeable menu boards available through food and beverage advertising product suppliers are prohibited and may not be used. The Tenant must submit menu board design for NASL review and approval. Menu board selections and detailing will be reviewed by NASL on an individual basis. 5.8 Food Storage and Waste Handling Garbage compaction and/or refrigeration equipment must be installed in the Leasehold by the Tenant if perishable items are handled or if required by applicable governing laws, codes, and/or regulations. 5.9 Sustainable Design Criteria The Iqaluit Airport is designed to achieve LEED Certification. Proposed Tenant designs will be evalulated for consistency with base building sustainable design criteria as established by the design professionals. 5.10 Universal Design Guidelines Universal Design concepts should be applied to all retail Tenant Leaseholds 6 Mechanical Standards 6.1 Heating, Ventilating and Air Conditioning (HVAC) Systems General Requirements Refer to base building drawings for specific details of base building configuration. a) Tenant Leasehold will include appropriately sized access panels for servicing equipment concealed within ceilings or walls. b) Ceilings above enclosed Tenant Leasehold may be used as return air plenum. c) Works shall include additional heating or cooling for enclosed Tenant Leasehold, if required. d) HVAC noise levels in an enclosed Tenant Leasehold shall not exceed noise criteria (NC) 35, which is the rating for private offices. e) All penetrations around pipes, conduits, ducts, etc. between levels and through other fire and smoke separations required by code must be sealed against water, smoke, and flame penetration using fire-stop materials listed by an accredited testing agency. Shop drawings for the proposed fire stop product and methodology shall be submitted to the Lessor for review and approval prior to installation. Appendix 3 November 2014 23 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Tenant Areas – Retail Classification – HVAC Systems a) Retail classification areas are defined as areas used for public retail sales and/or services. Public or private food services (including preparation) are not allowed under this classification. b) Works by Tenant shall include supply and installation of the following: i) Supply air, return air, exhaust distribution ductwork, ceiling diffusers, balancing dampers, registers, grilles, ceiling fire stop flaps, fire dampers, smoke detector, pilot light, and any other code required equipment. ii) 600 mm x 600 mm minimum size access panel(s) for servicing filters, base building equipment and Tenant Leasehold equipment. iii) Balancing of HVAC systems within Tenant Leasehold by a certified airbalancing contractor approved by NASL, at the Tenant’s expense. A copy of the report shall be submitted to NASL. iv) 25 mm foil faced duct wrap insulation for supply air ductwork. v) Any new/additional HVAC services not provided as part of the base building that may be requested for Tenant Leasehold. vi) Any HVAC base building system work for Tenant Leasehold shall be carried out by NASL at the Tenant’s expense. Tenant Areas – Food Service Classification – HVAC Systems a) Food service classification areas are defined as an area used for public food and beverage services and the preparation thereof. b) Design and construction of food service facilities shall comply with all standards and regulations of governmental authorities having jurisdiction; in particular NFPA 96. c) Works by the Tenant shall include supply and installation of the following: i) All distribution ductwork including diffusers, grilles, balancing dampers, etc. ii) 600 mm x 600 mm minimum size access panel(s) for servicing filters, base building equipment and Tenant Leasehold equipment. iii) Balancing of HVAC systems within Tenant Leasehold by a certified air- balancing contractor approved by NASL at the Tenant’s expense. A copy of the report shall be submitted to NASL. iv) Supply air, return air, sanitary exhaust distribution ductwork, ceiling diffusers, registers, grilles, ceiling fire stop flaps, fire dampers, smoke detectors, pilot light, and any other code required equipment. v) 25 mm foil faced duct wrap insulation for supply air ductwork. vi) Ultra-violet kitchen exhaust hood system complete with integral fire protection system. vii) Makeup air for commercial kitchen exhaust hood is provided from base building ambient air. Rooftop mounted independent makeup air units are not allowed. NASL will charge Tenant for ambient building makeup air based on operating time of kitchen exhaust hood system, calculated from the building automation Appendix 3 November 2014 24 Tenant Design and Construction Guidelines Iqaluit International Airport viii) ix) x) 6.2 Government of Nunavut system. Exhaust systems shall be designed and constructed in accordance with all applicable codes. Any new/additional HVAC services not provided as part of the base building that may be requested for Tenant Leasehold. Such work outside the Leasehold shall will be performed by NASL at the Tenant’s expense. Any HVAC base building system work for Tenant Leasehold shall be carried out by NASL at the Tenant’s expense. All ductwork installed within Tenant Leasehold shall be colourcoded and labeled to match base building standards. Plumbing Systems General Requirements a) Tenant Leasehold can connect to base building utilities including cold water, sanitary and storm sewers, as well as vent stacks. b) Works by Tenant shall include branch plumbing lines, all plumbing fixtures, grease interceptors, hot water heaters (electric only), and gas meters. c) Public washrooms can be used by Tenant staff. d) Domestic water lines within Tenant Leasehold shall be insulated with a minimum of 13 mm fiberglass insulation and vapor barrier. e) Copper piping shall be types ‘K’ or ‘L’. All vent stacks shall be DWV copper or cast iron. Plastic piping is not allowed. f) Hot water tank pan and relief valve shall be piped to a floor drain within Tenant Leasehold. Floor drain supply and installation shall be included in Tenant Works. g) Under no circumstances shall Tenant’s contractor(s) install additional plumbing through floor. Connection(s) to under-floor plumbing services and/or other plumbing work outside the boundaries of a Tenant’s leasehold shall be done by NASL at the Tenant’s expense. h) All penetrations around pipes, conduits, ducts, etc. between levels through other fire and smoke separations required by code must be sealed against water, smoke, and flame penetration using fire-stop materials listed by an accredited testing agency. The Tenant’s contractor shall provide shop drawings for the proposed fire stop product and methodology for review and approval by the Lessor prior to undertaking work. i) Connections to base building domestic water lines shall be installed with backflow prevention valves, where required by code. j) All piping installed within Tenant Leasehold shall be colour-coded and labeled to match base building standards. Retail Classification – Plumbing Systems a) Retail classification areas are defined as areas used for public retail sales and/or services. Public or private food services or preparation are not allowed under this classification. b) Retail areas are provided with the following roughed-in plumbing services: i) A drainage line either capped-off below the floor, or roughedin to the surface of the floor. ii) A domestic cold water supply line valved-off and capped-off, Appendix 3 November 2014 25 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut typically located in ceiling void at the perimeter of Tenant Leasehold or below floor. iii) A plumbing vent line capped-off, typically located in ceiling void at perimeter of Tenant Leasehold. c) Works by the Tenant shall include supply and installation of the following: i) All domestic water distribution plumbing, all waste drainage and vent plumbing. ii) Condensate drain for each heat pump. iii) Domestic hot water heaters (electric only), as required. iv) Plumbing fixtures and backflow preventers. Food Service Classification – Plumbing Systems Refer to base building drawings for specific details of base building configuration. a) Food service classification areas are defined as an area used for public food and beverage services and the preparation thereof. b) Food service areas are provided with the following roughed-in plumbing services: i) A drainage line either capped-off below the floor, or roughed in to the surface of the floor. ii) A domestic cold water supply line valved-off and capped-off, typically located in ceiling void at the perimeter of Tenant Leasehold or below floor. iii) A plumbing vent stack capped-off, typically in ceiling void at the perimeter of Tenant Leasehold. c) Works by Tenant shall include supply and installation of the following: i) All domestic water distribution plumbing, all waste drainage and vent plumbing. ii) Condensate drain for each heat pump. iii) Domestic hot water heaters (electric only), as required. v) For a food service Tenant Leasehold in an open area without access to a ceiling void, a sanitary vent cap-off is located below the floor for installing an island vent system for connection of the sanitary vent in accordance with applicable code requirements. vi) Tenant Leasehold with drainage from food and beverage operations will be required to install grease interceptors, which shall be mounted above the floor. vi) Plumbing fixtures and backflow preventers. . 6.3 Sprinklers & Fire Protection Base building system includes sprinkler mains, branch lines, and sprinkler heads in grid layout to cover all public and Tenant spaces in accordance with code requirements. Modifications to the base building sprinkler system to add and/or change sprinkler head locations for Tenant Leasehold, as well as testing and verification, shall be at the Tenant’s expense. The Tenant’s fire protection system design shall comply with all fire regulations stipulated in the National Fire Code of Canada and the National Building Code, latest version. Appendix 3 November 2014 26 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut All sprinkler system work shall be in accordance with applicable bylaws, including requirements of the latest edition of NFPA 13. All sprinkler heads in public/passenger areas shall be recessed. Fire extinguishers shall be provided in Tenant Leasehold, as required by code, and in accordance with NFPA 10, latest version. All life safety devices within Tenant Leasehold shall comply with applicable code(s). Tie- in of Tenant Leasehold fire suppression system to the base building fire alarm system will be performed by NASL at the Tenant’s expense. Location of Fire Prevention Control Panel (if any) in Tenant Leasehold shall be indicated on electrical floor plan drawing. Fire protection equipment/systems provided in Tenant leasehold shall be the same equipment and components used in the base building. 6.4 Exhaust and Odour Refer to base building drawings for specific details of base building configuration. Proposed locations of exhaust systems for Tenant Leaseholds shall be included in design submissions. Objectionable odours shall be mechanically exhausted to prevent release into building interior space, as well as short-circuiting into fresh air vents. Exhaust systems may be required to incorporate activated charcoal filter(s) or other similar device, requiring ongoing maintenance. Works for food service Tenant Leasehold shall include kitchen exhaust ducts, exhaust hoods, and kitchen equipment. Tenant to install and maintain Ultra-violet kitchen exhaust hood system and provide maintenance records for NASL inspection. All kitchen exhaust systems shall conform to NFPA 96. Where required, exhaust capacity shall not exceed fresh air supplied to Tenant Leasehold. Air handling equipment for Tenant Leasehold shall not, under any circumstances, exhaust air into the building’s interior space. No exhausting will be allowed from freestanding island kiosks. All exhausting will be horizontal. No rotating ventilators or exhaust hoods will be allowed on the roof. Where necessary provision of HVAC outside of the Tenant’s space shall be supplied and installed by the NASL, at Tenant’s expense. Kitchen exhaust fans shall be cleaned by the Tenant on a regular basis in accordance with NFPA guidelines. Appendix 3 November 2014 27 Tenant Design and Construction Guidelines Iqaluit International Airport 6.5 Government of Nunavut Thermostats and Controls Any approved computer automated control connections shall be completed by a NASL approved contractor at the Tenant’s expense with equipment of the same type and manufacturer as the base building systems. 6.6 Grease Interceptors Grease interceptors are to be at minimum inspected weekly and cleaned monthly. All cleaning shall be performed by qualified personnel during afterhours. In accordance with City of Iqaluit Sewer By-law Tenants shall ensure that maintenance activities for an oil, grease or sediment interceptor are performed regularly and the records kept for 12 months following the date of maintenance .The records shall be maintained at the Leasehold and made available for review by NASL upon request. 6.7 Permits Obtain from the City of Iqaluit all necessary permits, at the Tenant’s expense. 6.8 Inspections Upon completion of Leasehold construction and mechanical installations, the Tenant shall provide NASL with copy of Certificate of Inspection. The Tenant shall provide access to Leasehold for inspection by City of Iqaluit inspectors and NASL maintenance personnel. 7 Electrical Standards 7.1 General Requirements Electrical work must not be carried out on energized equipment. Shut down requests for Base Building services are to be submitted to NASL a minimum of 72hrs in advance. All electrical materials, products and electrical work performed in Tenant Leasehold shall comply with all applicable codes. All wiring must be installed in rigid metal conduit or EMT and as required by code, except as indicated herein. All conduit and wiring shall be concealed from public view. Power transformers are to be located in enclosed rooms and provided with vibration isolating bases. Tenant shall supply and install all electrical equipment for Tenant Leasehold including check meters, disconnect switches, transformers, splitter boxes, panel boards, wiring, rigid metal conduit or EMT, lighting and related power distribution, etc. This shall include connection to or relocation of distribution panel and related conduits, branch wiring, panel breakers, outlets, Connections to mechanical equipment controls such as heat pumps, etc., if required. Appendix 3 November 2014 28 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Tenant shall supply and install all electrical equipment and cabling for all washroom equipment within Tenant Leasehold, including hot water heater(electric only), baseboard heater (if provided), and lighting. All wiring for lighting, power, fire alarm, telephone, data and television within walls and ceiling spaces shall be installed in rigid metal conduit or EMT. Exposed wiring (not in conduit) may be accepted only for telephone/data/television in ceiling spaces, if permitted by code. All electrical equipment, materials and devices shall be new, CSA/ULC approved or equivalent. Electrical equipment and devices are to be CEMA or NEMA rated. All wiring shall be copper. Branch wiring shall be #12 gauge (minimum) solid stranded for #8 or larger. BX cable may be used in partition walls with no horizontal runs around corners (of walls) and in ceilings for drops (maximum 3 m) from junction boxes to light fixtures. Daisy chaining with BX wires between light fixtures shall not be permitted. Each circuit shall be provided with its own ground conductor installed in rigid metal conduit or EMT. Exposed cabling shall be FT4 rated and be supported by proprietary cable supports. The use of tie wraps will not be allowed unless approved by NASL for this purpose. Where the Tenant is installing nonlinear loads with “switch mode power supplies” in electronic equipment (such as appliances, computers, printers, etc.) separate neutrals conductors are to be provided for each circuit. A balanced electrical load must be provided in all three phases of the distribution system to within 5%. All equipment and light fixtures shall be energy efficient. Electrical hardware such as switchgear for roll down grilles shall not be visible from public areas. Installation of electronic security system at the entrance(s) to Tenant Leasehold shall not obstruct access. Electrical capacity for cooking equipment will not be provided unless it can be provisioned within the allowable service size provided to Tenant Leasehold. Redundant, unused and/or abandoned wiring, cabling, conduit and equipment shall be removed from the Leasehold by the Tenant, unless otherwise instructed by NASL. Non corrosive permanent barriers and/or a ½ inch air space shall be provided between dissimilar metals (such as at copper and galvanized conduits or supports.). 7.2 Electrical Service Refer to base building drawings for specific details of base building configuration. Appendix 3 November 2014 29 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Electrical power requirements shall be requested for Tenant Leasehold during design process. Service provision or additions to existing services to leasehold if approved by NASL shall be completed at the Tenant’s expense. Electric service for life safety systems and building protection systems is supported by base building emergency generators. Electrical service for these systems will be maintained to Tenant Leasehold during hydro power outage providing compounding failures do not occur in other power distribution systems connected to emergency generators. 7.3 Fire Alarm Systems Tenant Leasehold fire prevention system(s) shall be connected to base building fire alarm system and comply with all codes. NASL shall connect Tenant Leasehold “dry contacts” to base building fire alarm system and complete additional programming and modifications at the Tenant’s expense. Exhaust fans in Tenant Leasehold must be interlocked and interfaced with the base building fire alarm system by NASL at the Tenant’s expense. Works by Tenant shall include all additional fire alarm evacuation speakers, detection devices, break glass pull stations and all associated testing and verification required by code. All added components are to be the same type as base building fire alarm system components. Tenant contractors must be pre-approved by NASL. All life safety devices within Tenant Leasehold shall comply with applicable code(s). Tie- in of Tenant Leasehold fire suppression system to the base building fire alarm system will be performed by NASL at the Tenant’s expense. Location of Fire Prevention Control Panel (if any) in Tenant Leasehold shall be indicated on electrical floor plan drawing. All fire alarm wiring within walls and ceiling spaces shall be installed in rigid metal conduit or electrical metal tubing (EMT). Fire protection equipment/systems provided in Tenant leasehold shall be the same equipment and components used in the base building. 7.4 Emergency and Exit Lighting Base building emergency and exit lighting meets National Building Code requirement for an open space. Electric service to Tenant Leasehold is supported by building emergency generating system, which supplies emergency lighting. Tenant shall supply and install additional emergency and exit lighting within Leasehold to meet National Building Code requirements. Additional exit lighting components shall match the base building components. Appendix 3 November 2014 30 Tenant Design and Construction Guidelines Iqaluit International Airport 7.5 Government of Nunavut Lighting In order to keep the electrical and AC loads within allowable Tenants service loads, Tenants are encouraged to use low voltage lighting and other energy efficient fixtures. Stores with merchandise display(s), either freestanding or in a display window, shall adhere to and/or incorporate the following: a) b) c) d) e) f) g) High quality quartz halogen and/or LED specifically designed for retail application illumination within the storefront display area. Within the Leasehold, if floor lamps (incandescent or fluorescent) are used, the Tenant must shield these fixtures with a baffle designed to shield the lamps from the concourse/lobby at eye level height of 1650 mm, unless otherwise approved. NASL reserves the right to adjust such baffles after installation is complete. Energy efficient LED signage is encouraged within the Leasehold in lieu of neon. Neon will only be considered where the Tenant demonstrates that a particular brand image or desired atmosphere is dependent on the proposed neon. The use of neon is at the discretion of the Lessor. For other merchandising uses, such as cafes, bars and/or other uses that require a specific mood type lighting to create the desired atmosphere, approval of the design concept and fixtures must be obtained from the Lessor. Where tenancies are open to above, low voltage lighting will be required. Tenant lighting may be installed inside the Leasehold only, except for signage lighting as approved by the Lessor. The Tenant shall be responsible for the installation and connection of all exit lights in accordance with code requirements. All exit lights shall match the building standard specification. Luminaire ballasts to be low noise electronic type. Maximum voltage for lighting shall be 120 V, unless otherwise approved by NASL. The following lighting types will not be accepted: a) Exposed or undiffused tube fluorescent or H.I.D. lamps in any areas visible to passengers or public. b) Sodium or mercury vapor lamps of any type. c) Exposed or undiffused fluorescent lamps in areas visible to passengers or public. d) Incandescent lighting Except as indicated above, the Tenant shall provide: a) All lighting fixtures, lamps and related equipment. b) All additional emergency lighting and additional exit lights required by theTenant’s design. 7.6 Metering Refer to base building drawings for specific details of base building configuration. Meter maintenance and repairs will be performed by NASL at the Tenant’s expense. Appendix 3 November 2014 31 Tenant Design and Construction Guidelines Iqaluit International Airport 7.7 Government of Nunavut Permits Obtain from the City of Iqaluit all necessary permits, at the Tenant’s expense. 7.8 Inspections Upon completion of Leasehold construction and electrical installation work, the Tenant shall provide NASL with copy of Certificate of Inspection. The Tenant shall provide access to Leasehold for inspection by City of Iqaluit inspectors and NASL maintenance personnel. 8 Telecommunication Standards 8.1 IT Voice and Data Services The voice and data services to Tenant Leasehold space are categorized as: a) IT Infrastructure. IT Services. b) IT infrastructure refers to the physical conduit, cables and termination panels supplied and installed in the base building. IT infrastructure is owned by NASL. IT infrastructure distributes and transports IT services throughout NASL controlled spaces within the base building. IT infrastructure does not distribute or transport IT services within a Tenant Leasehold space. IT services refers to the data and voice signals carried by the IT infrastructure. Examples of IT services are data transport service, Internet transport service, telephone services, and cable television service. Refer to base building drawings for specific details of base building configuration. Upon Tenant request, NASL will provide an upgraded IT infrastructure and Tenant Demarcation as necessary to support the IT service requirements of the Tenant. Generally, the upgraded IT infrastructure will include a single wall mounted Tenant Demarcation cable termination enclosure located within the Tenant Leasehold space at a location to be agreed between the Lessor and the Tenant, and connected by appropriate copper and/or fibre-optic cabling to the base building telecommunications infrastructure. Modification or additional service related to the IT systems shall be made by NASL at the Tenant’s expense. Tenants or their agents are not permitted to install any IT infrastructure or any other data or voice cabling outside of their Leasehold. Tenants are not permitted to run cabling outside their Leasehold area. If there is a need to run cable from one leasehold space to another, NASL provides data transport services. Tenants are not permitted to operate Wi-Fi equipment without the direct permission of the NASL. Where horizontal cabling is run in the ceiling void, it shall be neatly dressed and supported. Acceptable cable pathways in the ceiling are conduit, cable tray, and Appendix 3 November 2014 32 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Caddy CableCat J-Hooks. Cabling shall not be run unsupported in the ceiling void. All cabling paths must be approved by NASL prior to installation. Where conduit or cable tray is placed in the ceiling void, it shall be supported independently, run parallel or perpendicular to building grid lines and shall be run so as not to obstruct access to base building mechanical equipment access points. Where Caddy CableCat J-Hooks are used, the cabling path shall run parallel or perpendicular to building grid lines. J-hooks shall be fastened to structural elements in ceiling void. J-hooks shall not be attached to electrical conduit, T-bar pencil rods, or other nonstructural elements. The Tenant will be provided with a matrix of approved colour-coding of all building system elements within Tenant Leasehold including all wiring and conduit. Additional IT system elements provided in Tenant Leasehold, if any, shall match the base building system colours. Work shall adhere to all EIA/TIA 568 and EIA/TIA 569 standards. 8.2 Security, CCTV and Access Control Systems Access Control a) Tenant provided independent system. Access control card readers, locks and related devices may be applied to interior partition doors to suit design requirements. b) Access control, if desired to form a part of the base building access control system, shall be supplied and installed Tenant’s expense by NASL, at the. Intrusion Detection a) Within Tenant Leasehold, installation of passive volumetric motion detectors is allowed. Radiating devices such as ultrasonic motion detectors are not allowed. b) Foil type glass breakage sensors are not allowed for glazed surfaces including doors, windows or demising partitions. For these applications, only passive acoustic glass break sensors are allowed. c) Doors, windows or sliding partitions may be equipped with surface mounted magnetic contact devices or may be equipped with concealed magnetic contacts of a diameter no greater than 25 mm. All wiring shall be concealed. Where surface run of wiring is necessary for a limited distance to connect moveable components to a fixed surface, such wiring shall be protects in a flexible metal sleeve. d) Intrusion detection control keypads shall be located inside the tenant leasehold and shall not be visible from outside the leasehold space. CCTV a) Works for Tenant Leasehold can include procurement and installation of a proprietary system including CCTV cameras, mounts, monitors, and related devices. For such a system, no interconnection with base building CCTV system(s) will be allowed. Appendix 3 November 2014 33 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut b) Works for Tenant Leasehold can include procurement of a CCTV system compatible with base building CCTV system, If approved the installation shall be by completed NASL or NASL approved contractor at the Tenant’s expense. c) CCTV cameras and drive mechanisms shall operate only on an extra low voltage (less than 30V) electrical supply. Security Wiring a) All wiring and installations shall conform to applicable building and fire codes. b) Wiring shall be installed parallel to building gridlines. c) Work shall conform to all other wiring and installation requirements described in this manual. d) Security system elements provided in Tenant Leasehold, if any, shall match the base building system colours. 9 Construction Rules and Procedures 9.1 Working on Airport Property Tenant’s representatives, design team and contractor shall recognize that their Work is being conducted in an environment contiguous with an operating airport, the functioning of which may not be disrupted for any reason. NASL reserves the right to stop the Tenant’s Work at any time and for any reason NASL deems necessary to maintain the operations, standards or requirements of the airport. 9.2 Safety and Security A safe, secure and healthy workplace shall be maintained at all times during construction. This applies to construction and public safety related to the work to be performed by the Tenant’s contractor. The Tenant and its contractor(s) have sole and complete responsibility for safety while working in the ATB. A safety representative or delegate shall be on-site at all times. The Tenant and its contractor(s) shall comply with all health and safety requirements or standards stipulated by the Federal Government, Nunavut, City of Iqaluit, and NASL. The Tenant contractors and employees will be subject to and must conform to NASL safety and security requirements while on site. Security of Tenant Leasehold during construction shall be the sole responsibility of the Tenant. NASL will not be liable for any loss or damage, including theft of building materials, equipment, supplies, fixtures, etc. Tenant representatives, design team and contractors who will be working within the airport’s security restricted areas are required to be escorted by a Security Escort, at Appendix 3 November 2014 34 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut the Tenants expense, and/or obtain a Restricted Area Identification Card (RAIC). Procedural information for obtaining a RAIC may be obtained from the Airport Pass Office. 9.3 Construction Rules and Procedures a) All construction work at the Airport shall be performed by skilled workers using new material, to the highest standards and best construction practice. b) Workmanship on Tenant Leasehold may be inspected by NASL staff at any time. c) The Tenant’s contractor shall adhere to rules and regulations of the NASL, which have been established to promote safe and timely completion of projects. d) The Tenant’s contractor shall comply with the Nunavut Workplace Safety and Health Act and Regulations. e) The Tenant’s contractor shall comply with the requirements of NASL Environmental procedures and all applicable environmental laws. f) Noise and dust control shall be maintained for to normal airport operations Construction Hoarding a) Prior to commencing work the Tenant shall provide temporary construction hoarding to isolate the Leasehold from public or shared common areas during construction. The hoarding shall remain in place until removal is approved by NASL at completion of Leasehold construction works. b) All hoarding designs shall be submitted to NASL for approval. Protection of Existing Conditions a) The Tenant’s contractor shall protect all existing conditions. Any damage will be repaired by either the Tenant’s contractor or by NASL at the Tenant’s expense. c) The Tenant’s contractor may not work or store material in any part of the building other than the Tenant Leasehold without prior written approval from NASL. Wasting Handling a) Waste handling shall conform to the rules and regulations of NASL. b) Airport Waste bins or dumpsters shall not be used for construction trash/debris disposal. The Tenant is responsible for providing completely enclosed garbage containers and recyclable waste containers and for ensuring that its contractor removes all garbage and debris from the Leasehold on a daily basis and places it in the Tenant’s waste containers. c) All debris removal must be legally disposed of as set forth be territorial, municipal and provincial standards and/or ordinances. Under no circumstances will any dumping on airport property be allowed. d) The Tenant’s contractors will be required to remove all construction debris and waste on a daily basis. Appendix 3 November 2014 35 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut Storage of Materials a) All materials must be stored in the Tenant Leasehold within the limits of Temporary Construction Hoarding, and/or in areas agreed by NASL. Unless specifically authorized, materials shall not be held or stored outside Tenant Leasehold. b) No Hazardous Materials may be stored on job site or on airport property. Construction Site Maintenance a) Construction site must be kept in broom clean condition at all times. b) Painting with noxious or hazardous materials should be avoided wherever possible or be scheduled outside of normal working hours. The Tenant’s contractor shall effectively seal off work area when over spray (from painting) may occur and whenever dust is generated. c) Upon completion of Work, storage sites and work areas shall be cleaned by the Tenant’s contractor. Work on Tenant Leasehold in Base Building a) The Tenant’s contractor shall coordinate work activities with the NASL so as not to impede, hinder, or delay Airport Operations or other contractors working on site. Testing and Verification Requirements a) The Tenant’s contractor must obtain prior permission from NASL before testing plumbing, gas and fire protection systems (excluding the sprinkler system). The Tenant will be responsible for any damage resulting from such tests. b) Except where noted herein, the Tenant’s contractor shall provide functional testing and verification that shall demonstrate each system is operating according to the Contract Documents. Functional testing shall bring the system(s) from a state of individual completion to full dynamic operation. Additionally, during the testing process, areas of deficient performance shall be identified and corrected, thereby improving the operation and function of the system(s). 9.4 Design Modifications During Construction Subsequent to NASL’s final design approval, design changes envisioned for a Tenant’s Leasehold must be resubmitted to NASL. Design/contract document revisions must be reviewed and approved by NASL in writing prior to implementation. 9.5 Occupancy Permit The Tenant shall be responsible for obtaining a City of Iqaluit Occupancy Permit for Leasehold. Copy of Occupancy Permit shall be submitted to NASL prior to commencing business operations in Leasehold. Appendix 3 November 2014 36 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 10 Project Closeout 10.1 General Information This section contains information pertaining to project closeout of Tenant work, including: a) b) d) e) Inspection and Declaration Project Closeout Manual Operation and Maintenance Manuals As-built Record Drawings 10.2 Inspection and Declaration Tenant contractor’s inspection: The Tenant’s Architect and Engineers of record, contractor and subcontractors shall conduct an inspection of the Work, identify deficiencies and defects, and repair as required to conform to the contract documents. The Tenant shall notify NASL in writing of satisfactory completion of the Tenant contractor’s inspection and corrections that were deemed necessary have been made. Request that NASL inspect the Work. NASL shall inspect the Work to identify obvious defects or deficiencies. If defects or deficiencies are noted, NASL shall provide a list to the Tenant. Upon Substantial Performance of the Tenant Leasehold, the Tenant shall deliver to NASL written confirmation of inspections, along with a Statutory Declaration confirming that there are no liens pertaining to the Works, Worker’s Compensation Claims, or other encumbrances pertaining to the Work. Further, the Tenant shall provide evidence that all accounts for work, services, materials and equipment have been paid in full. Occupancy shall not occur until this documentation has been delivered to NASL. 10.3 Project Closeout Manual The following project documentation shall be included in the Project Closeout Manual: a) b) c) d) e) f) g) h) i) j) k) Contract Drawings. Specifications. Addenda. Change Orders and other modifications to the contract. Reviewed shop drawings, product data, and samples. Field test records. Inspection certificates. Manufacturer’s certificates. City of Iqaluit Building permit(s) City of Iqaluit Occupancy permit. Final site survey certificates, certifying that completed Works are conformance or nonconformance with the contract documents. l) Deficiency list (and deficiency list closeout verification). m) Design Report n) Operations and Maintenance Manuals Appendix 3 November 2014 in 37 Tenant Design and Construction Guidelines Iqaluit International Airport o) Government of Nunavut As-Built Record Drawings Project closeout manual shall include final design report signed and sealed by Engineer and/or Architect of record for project, the design report shall include: a) b) c) d) e) f) g) h) i) j) Statement to confirm design objectives and design attributes. Statement to confirm compliance with NASL design guidelines. Statement to confirm compliance with Universal Design standards. System performance criteria, if applicable. Code compliance analyses, including, but not limited to: i) Fire exits. Travel distance to fire exits. ii) iii) Fire protection systems. iv) Fire separation. Fire alarm system. v) vi) Fire detection. vii) Emergency and exit lighting. viii) Emergency power. ix) Building materials, including flame spread and smoke rating. x) HVAC and plumbing systems, if applicable. Capacity/demand analyses (calculations) for mechanical and electrical design. Structural analyses for point loads of equipment installed on the floor and/or suspended from the ceiling structure, if applicable. IT voice and data services. Security systems. Public address systems The Project Closeout Manual submission shall be submitted to NASL in hard copy and electronic format. Submit of three (3) hard copies and electronic version on CD. 10.4 Operation and Maintenance Manuals a) Prior to Substantial Performance of the Work, submit to NASL, three (3) final copies of Operation and Maintenance Manuals in English. b) Note in the document the type, source and quality of products provided. c) Typewritten text: as required to supplement product data. Provide logical sequence of instructions for each procedure, incorporating manufacturer’s instructions. d) Along with the hard copies of the manuals that are submitted to NASL, submit an electronic version of the manual on CD. Operation and Maintenance Manuals Content a) Product Data i) Building products, applied materials, and finishes: include product data, with catalogue number, size, composition, and colour and texture designations. Provide information for reordering custom manufactured products. b) Equipment and Systems Appendix 3 November 2014 38 Tenant Design and Construction Guidelines Iqaluit International Airport i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) Government of Nunavut For each item of equipment and each system, include the description of the unit or system and component parts. Give function, normal operation characteristics, and limiting conditions. Include performance curves with engineering data and tests, and complete nomenclature and commercial number of replaceable parts. Panel board circuit directories: provide electrical service characteristics, controls, and communications. Include installed colour-coded wiring diagrams. Operating procedures: include start-up, break-in, and routine normal operating instructions and sequences. Also, include regulation, control, stopping, shutdown, and emergency instructions and include summer, winter, and any special operating instructions. Maintenance requirements: include routine procedures and guide for trouble-shooting: disassembly, repair, and reassembly instructions; and alignment, adjusting, balancing, and checking instructions. Provide servicing and lubrication schedule, as well as a list of the lubricants to be used. Include manufacturer’s printed operation and maintenance instructions. Include sequence of operation from the controls manufacturer. Provide installed control diagrams from the controls manufacturer. Provide charts of valve tag numbers with location and function of each valve, keyed to flow and control diagrams. Include Testing and Balancing Reports. The Tenant’s contractor shall submit a data sheet in a format as required by NASL for each piece of maintainable equipment and building material, including, but not limited to: 1) General equipment/material information including manufacturer’s name, model, drawing reference number, warranty start and expiry dates, installed date, vendor name, brief description; and 2) Particular equipment information for the following, including, but not limited to electrical equipment including motors, circuit breakers, transformers and other maintainable apparatus, mechanical equipment including pumps, valves, heat exchangers, diffusers, heating/cooling coils, filters, heat exchanger, heat pumps, fire dampers, actuators, etc. The Tenant’s contractor shall submit the equipment/material data sheet information noted above in a Microsoft® Excel® spreadsheet. Provide a summary of warranty expiry dates for all equipment and systems. c) Other Documents i) List of all mechanical and electrical equipment, including manufacturers’ names, model numbers and installer, as well as the installation date. ii) Manufacturer’s certifications, inspection certifications, field test records that are required by individual construction specification sections. Appendix 3 November 2014 39 Tenant Design and Construction Guidelines Iqaluit International Airport Government of Nunavut 10.5 As-Built Record Drawings Regardless of the scope of the project or work, all modifications or alterations must be documented on As-built record drawings for the Leasehold construction. Tenants shall submit at the end of the construction period and within the time period specified by the Lease, As-built record drawings to NASL documenting complete as-constructed condition of the Leasehold. If the required as-built documentation is not received by NASL within the specified time frame, NASL shall employ engineering/architectural firm to complete as-built drawings at the Tenant’s expense. Tenant contractor shall record as-built record information concurrently with construction progress by red line markup on a set of black line opaque drawings. a) Contractor shall not conceal work until required information is recorded. b) Legibly mark each item to record actual construction locations on Construction and Shop Drawings, including: i) Measured locations of internal utilities and appurtenances, referenced to visible and accessible features of construction. ii) Field changes of dimension and detail. iii) Details not on original Construction or Shop Drawings. iv) References to related shop drawings and modifications. v) Tenant’s contractor shall label each sheet with notations including ‘Record Drawings Complete’ with a signature and date. c) Legibly mark each construction specifications item to record as-built construction conditions, including: i) Manufacturer, trade name, and catalogue number of each product actually installed, particularly optional items and substitute items. ii) Changes made by addenda, change orders and field instructions. iii) Other documents: manufacturer’s certifications, inspection certifications, field test records that are required by individual specification sections. Tenants are responsible to ensure that the Architect(s) and Engineer(s) of record, including; Architectural, Structural, Electrical and Mechanical (if applicable), who are responsible for the Tenant’s construction documents, perform a final inspection of the work and attest in sign off that the project has been constructed in conformance with the construction documents, code requirements, and that all equipment and systems are operating as designed and specified. Tenants are responsible for submittal to NASL of as-built drawings for the completed work. As-built drawings shall be signed and sealed by the Tenant’s Architect and/or Engineer of record. Drawings shall record in electronic format the final as-built conditions as verified by site inspection and Tenant contractor record drawing markups. a) As-built record drawings submittal shall include one copy hard copy paper format (size A1 preferred) to scale and both original electronic digital (.dwg) format AutoCAD Release 2010 or newer and .pdf format on CD. b) Drawings will be reviewed by NASL for accuracy. Drawing errors, if any, shall be corrected by the Tenant at the Tenant’s expense. Appendix 3 November 2014 40 Nunavut Airport Services Ltd. Request for Proposals APPENDIX 4 REQUIRED PROPOSAL FORMS Form 1 Business Information Statement Instruction: Provide the following information for the entity or individual completing this Statement (the “Reporting Entity”). A. Basic Information: 1. Name of Reporting Entity completing this form: 2. Relationship of Reporting Entity to Proponent: B. Reporting Entity Information 1. Principal Office Address: 2. Telephone and Facsimile Numbers: 3. E-Mail Address: 4. Contact Person’s Name/Title: 79 Nunavut Airport Services Ltd. Request for Proposals 5. Form of Reporting Entity Corporation {skip to Section B} Partnership {skip to Section C} Joint Venture {skip to Section D} Limited Liability Company Limited Liability Partnership Individual {skip to Section E} {skip to Section F} {skip to Section G} C. If Reporting Entity is a corporation, please answer the following: 1. When incorporated? 2. Is the corporation incorporated in Nunavut? Yes {skip to Question C5} No 3. Is the corporation registered and in good standing to do business in Nunavut? Yes When: _______________ No 4. Name, address and phone number of registered local agent. 5. Attach Certificate of Authority to transact business in Nunavut. 6. The corporation is: Public Private 80 Nunavut Airport Services Ltd. Request for Proposals Continued on next page 81 Nunavut Airport Services Ltd. Request for Proposals 7. Provide the name, title, and address of each director, officer, and shareholder owning 5% or more of the corporation’s common stock (use additional pages as necessary). Principal Business Director's Name Address Affiliation (Other than Proponent's Directorship) Officer's Name Address Position Principal Shareholder Address Percent Owned Additional Instruction: if any shareholder owning 5% of the common stock is not an individual, that business entity must also submit a Business Information Statement. Skip to Section G 82 Nunavut Airport Services Ltd. Request for Proposals D. If Reporting Entity is a partnership, please answer the following: 1. Date of organization? 2. Type of partnership? General partnership Limited partnership 3. Is partnership registered to carry on business in Nunavut? Yes No 4. Has the partnership done business in Nunavut? Yes When? Where? No 5. Attach a copy of the partnership agreement. If the partnership agreement does not set forth the duties and obligations of each partner with respect to the business of the partnership, provide a statement indicating such. 6. Provide the name, address, and partnership share of each partner (use additional pages as necessary). Partner's Name Address Percentage Share Additional Instruction: if any partner is not an individual, that business entity must also submit a Business Information Statement. 83 Nunavut Airport Services Ltd. Request for Proposals Skip to Section G 84 Nunavut Airport Services Ltd. Request for Proposals E. If Reporting Entity is a joint venture, please answer the following: 1. Date of organization? 2. Is joint venture registered to carry on business in Nunavut? Yes No 3. Has the joint venture done business in Nunavut? Yes When? Where? No 4. Attach a copy of the joint venture agreement. If a joint venture agreement does not exist, or if the joint venture agreement does not set forth the duties and obligations of each partner with respect to the business of the joint venture, provide a sworn statement signed by all joint venturers setting forth the duties and obligations of each joint venturer with respect to the business of this joint venture. Percentages of ownership and distribution of profits in the venture shall be provided. A description of arrangements in the event of dissolution and termination of the venture shall be supplied. 5. Provide the name, address, and ownership share of each joint venturer (use additional pages as necessary). Joint Venturer's Name Address Percentage Share Additional Instruction: if any joint venturer is not an individual, that business entity must also submit a Business Information Statement. Skip to Section G 85 Nunavut Airport Services Ltd. Request for Proposals F. If Reporting Entity is a Limited Liability Company (“LLC”), please answer the following: 1. Date of organization? 2. Are LLC Articles of Organization recorded? Yes Date No 3. Has the LLC done business in Nunavut? Yes When? Where? No 4. Provide a copy of the LLC Articles of Organization. 5. Provide a copy of the LLC Management or Operating Agreement 6. Provide the name, address, and ownership share of each LLC member having a membership interest of 5% or more (use additional pages as necessary). Name Address Percentage Share Additional Instruction: if any LLC member listed above is not an individual, that business entity must also submit a Business Information Statement. Skip to Section G 86 Nunavut Airport Services Ltd. Request for Proposals G. If Reporting Entity is a Limited Liability Partnership (“LLP”), please answer the following: 1. Date of organization? 2. Are the LLP Articles of Organization recorded? Yes Date No 3. Has the LLP done business in Nunavut? Yes When? Where? No 4. Provide a copy of the LLP Articles of Organization. 5. Provide a copy of the LLP Management or Operating Agreement 6. Provide the name, address, and ownership share of each LLP member having a membership interest of 5% or more (use additional pages as necessary). Name Address Percentage Share Additional Instruction: if any LLP member listed above is not an individual, that business entity must also submit a Business Information Statement. 87 Nunavut Airport Services Ltd. Request for Proposals Form 2 Proposal Affidavit Instruction: Proponent must submit an executed and notarized Proposal Affidavit in the form that follows. In particular, duly authorized officials of the Proponent must personally execute the original copy of its Proposal Affidavit as instructed herein. NASL will not accept a Proposal Affidavit that contains modifications, additions, and/or deletions from the form that follows. Failure to provide a properly executed and notarized Proposal Affidavit will be deemed an incomplete proposal and will result in a determination of non-responsiveness and disqualification of Proponent from further consideration. 88 Proposal Affidavit BY THE SUBMITTAL OF ITS PROPOSAL HEREWITH, ____{enter complete and proper name of responding entity or individual}___ (“Proponent”) AGREES AND WARRANTS: Proponent hereby submits to Nunavut Airport Services Ltd. (NASL) the Proposal enclosed, to lease, develop, operate and manage Concessions at Iqaluit International Airport (“Airport”) based upon all terms and conditions set forth in the NASL Request for Proposal (“RFP”) dated ---------, as amended by one or more addenda, receipt of which is hereby acknowledged. Proponent intends that Government of Nunavut (the GN) and NASL rely on the Proponent’s submitted information and the representation that Proponent has the capability to successfully undertake and complete the responsibilities and obligations contained in the Proposal and the Concession Lease Agreement (“Agreement”) to be executed by the GN and Proponent awarded the concession, and Proponent understands the NASL and the GN will so rely. Respondent further specifically agrees hereby to provide goods and services in the manner set forth in the Proposal, as amended by anything contained in the Agreement. Proponent acknowledges that NASL has the right to make any further inquiry that it deems appropriate to substantiate or supplement information supplied by the Proponent. Proponent acknowledges that Proponent has read and fully understands all the provisions and conditions set forth in the RFP and considers its proposal to be feasible. Proponent has the capability to successfully undertake and complete the responsibilities and obligations contained in the Proposal. Proponent acknowledges that NASL and the GN reserve the right to reject any and all proposals, to withdraw the RFP, to reissue the RFP, to enter into negotiations with any and all proponents, and to accept those proposals which in its judgment will provide the best overall level of service to the traveling public and other users of the airport. Proponent solely will bear all costs incurred by Proponent in connection with the preparation and submission of this Proposal and with Proponent’s costs associated with any negotiations with NASL. Under no circumstances shall NASL or the GN be responsible for any costs associated with Proponent’s submittal or negotiations of any agreement with the GN. Proponent warrants that: 1) Proponent has not in any manner directly or indirectly, conspired with any person to compete unfairly or compromise the competitive nature of the RFP process; 2) the contents of this Proposal as to rent, terms or conditions have not been communicated by the undersigned nor by any employee or agent to any other person engaged in this type of business, prior to the official opening of this Proposal; and 3) Proponent has not entered into an “exclusive” arrangement with any subtenant prior to award; and 4) has not engaged in any activities in restraint of trade in connection with this RFP. Respondent further represents and warrants that no director of NASL nor any employee, director or officer of NASL has received or shall receive any financial benefit, either directly or indirectly, arising out of the Agreements to be awarded under this RFP. 89 Proponent further represents and warrants that neither Proponent, any of its owners, officer, employees or agents, nor any individual or entity engaged on its behalf, has discussed the RFP, the Proposal or any of the matters herein, verbally or in writing, either directly or indirectly, with any director of NASL or any officer or employee of NASL except as may be allowed under the terms and conditions of the RFP or at the public forum open to all prospective proponents. Proponent further represents and warrant: 1) that the Proposal enclosed is not made in the interest of, or on behalf of, any undisclosed person, partnership, company or association, organization or corporation; 2) that said Proposal is genuine and not collusive or sham; 3) that Proponent has not directly or indirectly induced or solicited any other interested part to put in a false or sham Proposal, and has not directly or indirectly colluded, conspired, connived, or agreed with any interested party, or anyone else, to put in a sham Proposal, or that anyone shall refrain from submitting a Proposal; 4) that Proponent has not, in any manner directly or indirectly sought by agreement, communication or conference with anyone to fix the price of said Proposal or the Proposal of any other interested party, or to fix any overhead, profit or cost element of such Proposal, or the Proposal of any other interested party, or to secure any advantage against NASL; 5) that all statements contained herein in said Proposal are true; 6) that said Proposal or any breakdown thereof, or the contents thereof, or divulged information therein, or data relative thereto, was not paid for, nor was there agreement to pay, directly or indirectly any money or other valuable consideration for assistance, or aid rendered, or to be rendered in procuring, or attempting to procure said Proposal; and 7) that Proponent will not pay or agree to pay, directly or indirectly any money or other valuable consideration, to any corporation, partnership, company, association or organization, or to any member or agent thereof, or to any other individual for aid or assistance in securing the Agreement above referred to in the event the same is awarded. Name of Proponent (Legal Name): _________________________________________ Signature of Authorized Person: _________________________________________ Title: _________________________________________ Business Address of Proponent: _________________________________________ _________________________________________ Business Phone Number: _________________________________________ Date: _________________________________________ City of _________________ Province/Territory of __________________ Signed and sworn before me this ___ day of _____________________, 200_. Notary Signature: __________________________________________ My Commission Expires: __________________________________________ 90 Affix Seal City of _________________ Province/Territory of __________________ Acknowledged before me by _____________________ (name) as ____________________(title) of _____________________(company) this ____ (day) of _________________, 200_. Notary Signature: __________________________________________ My Commission Expires: __________________________________________ Affix Seal 91 Form 3 Form of References Instruction: Use the following format below for each of the required airport/landlord references. Proponent must list three business references and three financial references related to its business operations during the past three years. REFERENCE NO. __ Name: Title: Firm: Address: Telephone: Email: Nature and magnitude of association (including years): 92 Form 4 Experience Statement Instruction: Provide the following information for the entity or individual completing this Statement (the “Reporting Entity”). Use additional sheets as necessary. A. Basic Information: 1. Name of Reporting Entity completing this form: 2. Relationship of Reporting Entity to Proponent: B. Reporting Entity Experience and Qualifications 1. Is the Reporting Entity currently engaged in an airport concession business? Yes How Long? {Skip to Question A3} No 2. Are the principal owner(s) and/or manager(s) of the Reporting Entity currently engaged in an airport concession business? Yes No 3. Attach resumes of the principal owner(s) and manager(s) of the Reporting Entity including, specifically, the individual who will be the primary contact to NASL for contract and Concession matters and the individual(s) who will be primarily responsible for the day-to-day operations of the Concession. Continued on next page 93 C. Operating History 1. Furnish the names of concession facilities operated in the past three years; a description of each concept; the number of total employees for each facility; if the facility was operated at an airport; and name of airport (if applicable). 2. Attach photographs of the interior and exterior of any existing concession facilities or other similar facilities. 3. Furnish any other additional information that will indicate your concession experience as it pertains to the proposed concession. 4. Provide the following sales information for all related businesses: Total Gross Sales Airport 2013 2012 2011 Non-Airport 2013 2012 2011 Number of Facilities Total Square Meters Sales / Square Meters _____________ _____________ _____________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ _____________ _____________ _____________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ 5. Provide the following sales information for specific businesses that directly related to the concepts included in the proposed concession. Concept-Related Total Gross Sales Airport 2013 2012 2011 Non-Airport 2013 2012 2011 Number of Facilities Total Square Meters Sales / Square Meters _____________ _____________ _____________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ _____________ _____________ _____________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ ______________ Continued on next page 94 D. Contract History 1. Have any agreement held by the Reporting Entity or any principal owner(s) of the Reporting Entity, for the operation of an airport concession ever been canceled? Yes {Attach a separate sheet providing information about all such contract cancellations including, but not limited to, date of cancellation, contracting parties, contract value and term, and reason for cancellation.} No 95 Form 5 Financial Information Statement Instruction: Provide the following information for the entity or individual completing this Statement (the “Reporting Entity”). . A. Basic Information: 1. Name of Reporting Entity completing this form: 2. Relationship of Reporting Entity to Proponent: B. Surety Information 1. Has Reporting Entity, or any entity in which Reporting Entity’s principal owner(s) have had an ownership interest, ever had a bond or surety canceled or forfeited? Yes {Attach a separate sheet providing the name of bonding company, date, amount of bond and reason for such cancellation or forfeiture for each such cancellation or forfeiture.} No C. Bankruptcy Information 1. Has Reporting Entity or any entity in which Reporting Entity’s principal owner(s) have had an ownership interest been declared bankrupt? Yes {Attach a separate sheet providing the date of filing, court of jurisdiction, amount of assets and liabilities, bankruptcy type and resolution or current status for each such filing.} No D. Bank References 1. Provide the names, addresses and phone numbers of the Reporting Entity’s primary bank and a contact person. Continued on Next Page 96 E. Financial Statements 1. Is Reporting Entity an individual? Yes {Skip to Section F} No 2. Attach financial statements of the Reporting Entity as follows: Current Fiscal-Year-to-Date Balance Sheet, Income Statement, and Statement of Cash Flow prepared in accordance with generally accepted accounting principles. If the year-to-date financial statements are not audited by an independent Certified Public Accountant, a notarized statement, certifying the accuracy of the financial information, signed by the Chief Financial Officer of the Reporting Entity, must accompany the financial information. Footnote disclosures must accompany the submitted year-to-date financial statements. Three Most Recent Fiscal Year Balance Sheets, Income Statements, and Statements of Cash Flow for each full year of operations, prepared in accordance with generally accepted accounting principles and audited by an independent Certified Public Accountant. Footnote disclosures must accompany the submitted financial statements. (Special Note: If the Reporting Entity is the Proponent, then the requested financial statements must be audited by an independent Certified Public Accountant. If the Reporting Entity is a sublessee, and the requested financial statements are not audited by an independent Certified Public Accountant, then a notarized statement, certifying the accuracy of the financial information, signed by the Chief Executive Officer of the Reporting Entity may be substituted for audited statements.) 3. Is Reporting Entity a partnership, joint venture, LLC or LLP? Yes {submit Financial Information Statement for each partner, joint venturer or LLC or LLP member} No 4. Is Reporting Entity relying on an affiliated entity’s financial resources to meet the financial requirements of this RFP? Yes {Skip to Section G} No {Skip to Section H} F. Financial Statements for Individuals 1. Attach the three most recent personal tax returns (including all business-related schedules) and a current statement of net worth. G. Financial Statements for Affiliated Entities 1. Attach financial statements of the affiliated entity as follows: Current Fiscal-Year-to-Date Balance Sheet, Income Statement, and Statement of Cash Flow prepared in accordance with generally accepted accounting principles. If the year-to-date financial statements are not audited by an independent Certified Public Accountant, a notarized statement, certifying the accuracy of the financial information, signed by the Chief Financial Officer of the affiliated entity, must accompany the financial information. Footnote disclosures must accompany the submitted year-to-date financial statements. Three Most Recent Fiscal Year Balance Sheets, Income Statements, and Statements of Cash Flow for each full year of operations, prepared in accordance with generally accepted accounting principles and audited by an independent Certified Public 97 Accountant. Footnote disclosures must accompany the submitted financial statements. (Special Note: If the Reporting Entity is the Proponent, then the affiliated entity’s financial statements must be audited by an independent Certified Public Accountant. If the Reporting Entity is a sublessee, and the affiliated entity’s financial statements are not audited by an independent Certified Public Accountant, then a notarized statement, certifying the accuracy of the financial information, signed by the Chief Executive Officer of the Reporting Entity may be substituted for audited statements.) 2. Attach a description of the relationship between affiliated entity and the Reporting Entity including, but not limited to, the percentage of ownership and management structure. 3. Attach a resolution of the affiliated entity authorizing the Reporting Entity to rely on its financial resources. H. Subsequent Events 1. Has the Reporting Entity entered into any substantial contracts and/or contingent liabilities subsequent to the date of the most recent audited financial statements? Yes {Please attach a statement describing the nature of the contracts and/or contingent liabilities including, but not limited to, the monetary amounts of any commitments or liabilities assumed and the source(s) of funding to meet these obligations.} No {Finished with form} 98 Form 6 Compensation to NASL List in the spaces provided below, the Percentage Fee Rate(s) that you propose to pay NASL during the Term by category, revenue tiers, and/or location, if applicable. Use additional sheets as necessary. Proposed Percentage Fee Rate(s) In the space below, please enter the proposed Percentage Fee Rate(s) for each category and/or revenue tiers (if applicable) Category / Revenue Tiers Percentage Fee Rate If awarded the concession, the proposed fee structure will be incorporated into the Agreement as follows: The concessionaire will pay to NASL on a monthly basis, the greater of the Minimum Annual Guaranteed Fee or the Percentage Fee equal to the greater of one-twelfth of the MAG or the sum of the Percentage Fees for each category/revenue tier. 99 Form 7 Projected Sales, Rent, Net Income, and Cash Flow For each concept proposed, please provide a projection of sales, rent and other expenses, net income and cash flow for the concession for each year of the term. Also provide a summary of financial projections by location and unit. Proponents must indicate pertinent assumptions, including assumptions that were used to develop gross sales projections. Use the following format: Unit: ______________________________________________________________ Location:___________________________________________________________ Concept Name _____________________________________________________ Category Provide for each year of term Gross Sales Less: Costs of Goods Sold Equals: Gross Profits Operating Expenses: Rent Salaries/Wages/Benefits Utilities and Telephone Maintenance/Cleaning/Supplies Insurance Marketing/Advertising Franchise Fees General & Administration Interest Depreciation and Amortization Other (Please Specify) Total Expenses Net Income Add: Depreciation and Amortization Equals: Cash Flow from Operations Beginning Cash Balance Add: Cash Flow from Operations Less: Debt Service (Principal Only) Less: Capital Expenditures Equals: Ending Cash Balance Assumptions: 100 Form 8 Capital Investment and Financing Plan Instruction: Provide the initial capital investment and sources of funds Proponent proposes to invest in each concession location. If accepted by NASL, this investment amount will be incorporated into the Concession Agreement by and between the GN and Proponent (as Concessionaire). Please note that NASL has established a minimally acceptable initial investment as follows for each concession: Food & Beverage: $3,065 CAD per square metre Retail Concession: $2,745 CAD per square metre Further note that the Concession Agreement will provide for payment to NASL of the deficit, if any, between actual and proposed capital investment. Capital Investment Plan Capital Investment A. Architectural & Engineering Fees $ _____________________ B. Leasehold Improvements $ _____________________ C. Furnishing, Fixtures and Equipment $ _____________________ D. Other (please specify) $ _____________________ E. Total Investment $ _____________________ Financing Sources A. Debt (by source) $ _____________________ B. Equity (by source) $ _____________________ C. Total Investment $ _____________________ 101 APPENDIX 5 SUPPLY CHAIN SECURITY PROGRAM Title Permanent Interim Original Revision Supply Chain Security Program Effective Date: TBD Effective to: Indefinite Policy Number TBD Last Reviewed January 30, 2014 Supersedes: N/A Revision Date: January 30, 2014 Reviewed by Catherine Kloepfer Policy Owner Associate Services Director, Iqaluit International Airport Review Schedule Annual - October Approved by Managing Director, NASL Document Control # TBD Scope: (List all functional areas this Policy/Procedure applies to) 1. Associate Services Director 2. Security Staff 3. Security Supervisor 4. Security Operations Centre 5. Airport Tenants 1. Introduction 1.1. Purpose / Objective To ensure that goods made available to passengers in sterile areas have not been altered or tampered with and do not pose a threat to civil aviation. Note: The goods referred to in this document include all goods entering the sterile passenger areas, not just liquids, gels and aerosols. 1.2. Background The ‘Supply-Chain Security Program’ consists of the following legislated requirements: ‘Stock Security Program’ 6. (1) The operator of an aerodrome must not permit liquids, aerosols or gels to be made available to persons in a sterile area unless the operator establishes, implements and maintains a stock security program for all stock that contains liquids, aerosols or gels and that is intended to be made available to persons in the sterile area. (2) The program must include the following requirements: (a) the stock must be packaged or must be in a sealed container; (b) the stock packaging and containers must be inspected to ensure that they have not been altered or tampered with; (c) stock packaging and containers that appear to have been altered or tampered with must be inspected to ensure that the stock does not pose a threat to aviation security; (d) the stock must be accompanied by appropriate documentation; (e) the stock must be delivered in accordance with procedures established by the operator of the aerodrome; and (j) no unauthorized person must have access to the stock between the time at which it is delivered to the aerodrome and the time at which it is made available to persons in sterile areas. 102 ‘Supply Chain Security Program’ 7. (I) The operator of an aerodrome must not permit liquids, aerosols or gels to be made available to persons in a sterile area unless the operator establishes, implements and maintains a supply-chain security program for goods that are intended to be made available to persons in the sterile area. (2) The program must include the following requirements: a) The goods must be accepted only from suppliers that state that they have prevented unauthorized access to those goods; b) The goods must be accepted in accordance with procedures established by the operator of the aerodrome; c) no unauthorized person must have access to the goods between the time at which they are accepted and the time at which they are made available to persons in a sterile area; d) the goods must not be accepted unless they are accompanied by appropriate documentation and unless the number and type of the goods matches the number and type of goods set out in that documentation; e) the goods must be accepted or handled only by persons who are aware of the program and its procedures; f) the goods must be inspected before they are brought into a sterile area to ensure that they have not been altered or tampered with; and g) goods that appear to have been altered or tampered with must be subjected to additional measures to ensure that they do not pose a threat to aviation security. (3) The program must also include a description of the manner in which the operator of the aerodrome will ensure that the program and its procedures are implemented. 1.3. Definitions TC – Transport Canada Security Coordinator – Security Supervisor SOC – Security Operations Centre RCMP – Royal Canadian Mounted Police NASL – Nunavut Airport Services Ltd. 2. Policy 2.1. General This document provides an overview of the Supply Chain Security program and outlines the responsibilities of those responsible for its delivery. 2.2. Suppliers of Goods All companies supplying goods destined for airport sterile areas must provide a letter, on company letterhead, that they have prevented unauthorized access to those goods. 2.3. Delivery of Goods to the Airport: Tenants receiving goods for resale in the sterile area must receive and accept goods at the loading dock or otherwise approved areas. If applicable, these other areas are indicated in the company’s specific supply chain security plan. Goods shall not be left unattended on the loading dock or at anytime en route to the lock up area. This includes all goods that are destined for the sterile areas. 2.4. Storage of Goods: 103 Goods must be stored in a controlled, secure area with authorized access only. Tenants must identify authorized personnel – handlers of goods and delivery persons. Key control records must be kept for the Tenants’ designated storage room(s), locked cages, etc. Storage area(s) must be locked at all times when unattended. Storing of goods in corridors/hallways or out in the open is not permitted. 2.5. Inspection and Movement of Goods to the Sterile Passenger Lounge: The Tenant shall accept, inspect and deliver goods, verify documentation, and performs duties as outlined in the procedures section of this document. 2.6. Secondary Inspection of Goods upon entry to the Sterile Passenger Lounge: When the cart enters the sterile area, Security will conduct random checks on the goods being delivered to ensure to ensure proper procedures are being adhered to. These random thorough inspections will be carried out on a daily basis as described in the procedures section of this document. 2.7. Training of Staff handling Goods Each Tenant is responsible to provide training to their employees that accept or handle goods destined for sterile areas. The training is to include details of the supply chain security program (legislated requirements) as well as the company’s supply chain security plan so they have a complete understanding of their responsibilities. Records are to be maintained for all staff trained under this program. Training records are subject to inspection by NASL or TC at any time. 2.8. Key Records Records must be kept indicating who has keys or access to keys for the secure storage rooms and secure carts. 2.9. Supply Chain Security Plan All Tenants must document their processes and procedures explaining how they will ensure compliance with this program in the form of a Tenant Supply Chain Security Plan. The Tenant Security Plan is to be updated and NASL promptly advised whenever any processes, procedures, suppliers or staff is changed. A copy of each such plan is to be provided to NASL whenever changes are made. 2.10. Exceptions Exceptions to the above may be made to accommodate certain circumstances and will be reflected in individual Tenant Supply Chain Security Plans. 2.11. Audit Procedures 104 a) NASL may, at their discretion: ° Inspect the Tenant’s processes, documentation, or deliveries at any time to ensure compliance with these procedures, ° Suspend or revoke the delivery of goods into the airport passenger sterile areas for failure to abide by any of the provisions stated in this document. b) Transport Canada may also, at their discretion, inspect or test any portion of the Supply Chain Security Program to ensure compliance with the applicable security measures. 3. Procedures 3.1. Role of the Associate Services Director The Asociate Services Director is responsible for the overall airport Supply Chain Security Program. The Associate Services Director shall: • • • 3.2. At least once a year, review the program and institute any necessary changes. Monitor compliance with the program Take corrective action as required when issues arise. Role of Tenant All Tenants receiving goods destined for sterile passenger areas shall abide by all provisions of their specific Tenant Supply Chain Security Plan. The Tenant shall: • Accept all goods for their operations in the airport sterile areas. • Check the approved suppliers list to ensure the supplier is authorized to deliver goods to the airport. • Check the documentation to ensure the number and type of goods in the shipment match the number and type of goods set out in the documentation. • Accept only goods that are packaged or in sealed containers. • Inspect the goods to ensure they have not been altered or tampered with. • Refuse any goods that are found to be altered or tampered with. • Advise NASL or Security of any discrepancies for follow up with the Tenant or supplier. • Immediately transport the goods to the Tenant’s secure storage room or retail outlet as applicable. • If delivering directly to the retail outlet, notify Security that a delivery is being made prior to entering the sterile area. 3.3. Role of Security Upon being advised that goods are being delivered to a Tenant’s retail outlet in the sterile area Security will conduct random secondary inspections as follows: • Inspections will be done in accordance with Transport Canada Security regulations and the airport security plan. Inspections may be conducted at the Tenant’s retail outlet if 105 • • • • • • 3.4. necessary. They should not, however, be conducted in public areas. Inspect the secure carts to ensure the lock is in place and secure. Inspect the goods and documentation to ensure the number and type of goods in the shipment match the number and type of goods set out in the documentation. Deny any goods that are not packaged or in sealed containers. Inspect the goods to ensure they have not been altered or tampered with. Promptly report to the Security Supervisor any issues pertaining to the inspection i.e. products altered or tampered with, prohibited or suspicious items found, etc. Keep a copy of the documentation and complete the required log sheet. Role of Security Supervisor The Security Supervisor shall: • • 3.5. Monitor security staff to ensure they are following the provisions of this plan. Take the appropriate corrective action when advised of any issues pertaining to the Supply Chain Security Program i.e. goods left unattended, products altered or tampered with, prohibited or suspicious items found, etc. and advise the Services Director accordingly. Role of SOC The SOC Operator shall: • • Advise the appropriate security personnel of all deliveries being made to the sterile area. Closely monitor the CCTV cameras and report any issues observed i.e. goods left unattended, persons attempting to circumvent the supply chain process, to the Security Supervisor. 4. Contingencies If an inspection of goods destined for a sterile passenger area reveals items have been altered or tampered with or unauthorized goods are discovered in the shipment, the Associate Services Director shall be advised and take the necessary corrective action. 4.1. This could include: • • • • • Refusing a particular item entry into the sterile area, Notifying a Tenant of goods left unattended, Refusing to allow a delivery driver access to the airport due to non compliance with delivery procedures, Notifying RCMP and TC if an issue involves a suspicious circumstance, threat to civil aviation or as required by legislation, Implementing emergency procedures as required. 5. Supporting Documentation 5.1. • • • • The following documents are pertinent to this policy: Aerodrome Security Measures, Sections 6 & 7 Airport Emergency Procedures Manual List of Tenants Providing Goods to Sterile Area Supply Chain Program, Suppliers of Goods Form 106 APPENDIX 6 – PROPOSAL EVALUATION 107 Nunavut Airport Services Ltd. Request for Proposals Appendix 6: Proposal Evaluation Proposal Evaluation When an alternative is proposed regarding any specific requirement, it will be evaluated to ensure that the desired results will be achieved. Proponents should be aware that certain mandatory requirements may have been set out in the Request for Proposal. Proposals that fail to provide these requirements shall be deemed not responsive and will not be evaluated. Evaluation Criteria The evaluation team will utilize the following criteria to evaluate each proposal. Points awarded will be consistent with the Points Rating Legend on the Proposal Rating Schedule. Points awarded will be confidential and no details will be released to any of the other proponents. Each proposal will be evaluated using the following criteria: 10% - Experience and Qualifications – Individual Proponent; 20% - Concept and Theme Development; 10% - Design and Quality of Improvements; 25% - Management and Operations Plan; 20% - Compensation to NASL (NNI adjusted for Nunavut, Inuit and Local Content prior to rating); 15% - Inuit Content (10% for Inuit Employment and 5% for use of Inuit Firms) Nunavummi Nangminiqaqtunik Ikajuuti (NNI Policy) One of the priorities of the GN is to ensure that Inuit, Local, and Nunavut businesses supply materials, equipment and services, and that Inuit, Local and Nunavut labour are used to the fullest extent practical on any GN contract. Therefore the NNI Policy applies to this Request for Proposals. To receive the benefits of this Policy, proponents must identify cost components for Inuit and Nunavut content including the names of any subcontractors, suppliers, and the residency of project team members or other labour proposed to carry out the work. Consideration will also be given for the proponent’s Inuit Firm or Nunavut Business status. Prior to rating, proposed compensation to NASL may be adjusted in accordance with the NNI Policy for the amount of work to be done by Inuit, Nunavut and Local businesses and residents. Cost components must be clear; therefore, proponents are encouraged to complete and submit the NNI Incentives Application Form. Instructions are provided to guide proponents on what level of detail to include. Also refer to the Instructions to Proponents for more information. Failure to complete and submit this form with appropriate detail will result in a denial of NNI adjustments. For greater certainty, the evaluation committee reserves the right to make adjustments to a proposal following the closing date in accordance with the NNI Policy by taking into account any information obtained from the Nunavut Business Registry maintained by the NNI Secretariat and the Inuit Firm Registry maintained by NTI. If the evaluation committee determines that a proposal should or should not receive a bid adjustment pursuant to the NNI Policy, it can adjust the evaluation and scoring of a proposal accordingly. NASL and the GN will use the NNI Incentives Application to monitor Inuit and Nunavut Content during the term of the Lease. Any Proponent claiming NNI Incentives will be required to update this report for NASL on a monthly basis. Following the acceptance of the proposal and signing of a Lease, a Proponent claiming NNI Incentives and no longer meeting the Inuit content level claimed in their proposal, will incur penalties commensurate with the bid adjustments applied to evaluate their proposal in an amount equal to 50 percent of the calculated bid adjustment. Note that Inuit Labour and Inuit Firms will continue to be monitored separately over the term of the lease. Nunavut Airport Services Ltd. Request for Proposals Proposal Response Guidelines The following are guidelines meant to assist proponents in responding to this RFP and will be utilized in evaluating each submission. They are not meant to limit or restrict proposals. Proponents should take care to comply with any mandatory proposal requirements set out herein. Mandatory proposal requirements are preceded by terms such as “proponents must”, “proponents shall” or “proponents will”. Note: Mandatory proposal requirements are not the same thing as contractual obligations. A contractual obligation is something that must be done under the contract that is expected to result from this RFP. Proposals will not be rejected for failing to demonstrate compliance with contractual obligations. Contractual obligations are identified by terms such as “Lessee must”, “Lessee is required to”, “Lessee shall”, etc. Inuit Content In compliance with Article 24 of the Nunavut Land Claims Agreement (NLCA) and the NNI Policy, the GN and NASL will provide consideration for Inuit Content. Accordingly, proponents are encouraged maximize business relationships with Inuit Firm sub-contractors and suppliers and hire Inuit workers to work on the project. All information should be provided in detail in the attached NNI Incentives Application Form. Inuit Content is the dollar value of goods and services provided by an Inuit Firm, and the dollar value of Inuit Employment in carrying out the work, including Inuit employees from an Inuit or non-Inuit Firm. An Inuit Firm is a company that is approved by Nunavut Tunngavik Inc. (NTI) and included in the Inuit Firms Database which is available online at www.inuitfirms.com. An Inuk is any person included in the Inuit Enrolment List under the NLCA Article 35, or anyone entitled to be enrolled under that article. Approximately one (1) point will be awarded for each 10% of work to be done by Inuit Firms where this information has been substantiated in the proposal. Likewise, proponents will be awarded approximately one (1) point for each 10% of work that will be done by Inuit workers where the names and dollar values are provided. For example, 8% would be 0.8 points, and 32% would be 3.2 In order to determine the percentage of work associated with Inuit Firms and Inuit Employment, the following variables are required: - Total Proposal Price Total Labour Costs Inuit Labour Costs Total Goods & Services (excluding labour) Inuit Goods & Services Costs (excluding labour) Failure to provide this level of detail in your proposal pricing will result in the evaluation committee not being able to determine Inuit Content percentage levels to award points appropriately. Nunavut Airport Services Ltd. Request for Proposals PROPOSAL RATING SCHEDULE Item 1 Unit Points Awarded (A) Rating Criteria Assigned Weight (B) 10 2 Experience and Qualifications – Individual Proponent Concept and Theme Development 3 Design and Quality of Improvements 10 4 Management and Operations Plan 25 5 Compensation to NASL 20 6 Inuit Content Total Points (A) x (B) = (C) 20 Inuit Labour 10 Inuit Firms 5 TOTAL: PROPOSER: Comments: Committee Member: Date: LEGEND: RATING POINTS: A – Evaluation Points Awarded B – W eighting Factor C – Sub-Total W eighted Score (A times B) Poor Fair Good Excellent 0 - 3 points 4 - 6 points 7 - 8 points 9 - 10 points Nunavut Airport Services Ltd. Request for Proposals NNI Incentives Application Form The following information MUST be provided by proponents wishing to receive any bid adjustments permitted under the NNI Policy. If the information is not provided or is incomplete, bid adjustments will NOT be granted. Values provided in this form must be substantiated by the information provided in the proposal. It will be necessary to provide the names of all proposed team members along with their location of residence. Place a check mark in the column where you wish to receive the adjustment. The Evaluation Committee will use the GN and NTI Registries to verify the status of sub-contractors and suppliers. If it is determined that a proposal should or should not receive a bid adjustment pursuant to the NNI Policy, the Evaluation Committee can adjust the evaluation and scoring of a proposal accordingly. Proponent’s Name I. Employment/Labour/Payroll – Include administrative/operational expenses in payroll values). Name & Location of Worker (or proposed new hires) Labour Cost Nunavut (7%) Inuit (7%) Local (7%) Other (0%) $ $ $ $ $ Total Value of Labour $ Value of Inuit Labour $ II. Proponent/Sub-Contractor Amounts – Miscellaneous Expenses including Travel Estimates Name & Location of Proponent or SubContractor and Nature of Services Unit Costs Nunavut (7%) Inuit (7%) Local (7%) Other (0%) $ $ $ $ $ Total Goods & Services (excluding labour) $ Inuit Goods & Services (excluding labour) $ Total Proposal Value $ Note: This information is required in order to apply NNI adjustments. Instructions for completing this form are on the following page. If more space is needed, photocopy and reuse this form. NNI Adjustment Application Form Instructions The following guidelines are given to assist proponents in applying for NNI adjustments: I. Employment/Labour (Payroll Expenses): This section is for the labour of both the proponent and any sub-contractors. The work being done by the employees who don’t live in Nunavut doesn’t qualify for an adjustment. Any portion of payroll dollars for the work that will be done by Nunavut Residents does qualify (Nunavut 7%). If the Nunavut Residents are also Inuit, they qualify for the additional Inuit adjustment (7%). If the Inuit employees are not Nunavut Residents, they do not get the Nunavut adjustment; they only get the Inuit adjustment (7%). If the Nunavut Residents are also local to the benefiting community, then they qualify for the additional Local adjustment (7%). If the Inuit employees are Local Nunavut Residents, they get the full 21% adjustment. Inuit employees who are not Nunavut Residents don’t qualify for Local adjustments. II. Other/Miscellaneous Expenses/Sub-Contractors: This section is for both the Proponent and any Sub-Contractors. Some of the work may have to be done by another contractor. This is referred to as a ‘sub-contract’. If any other services required for the completion of the contract will be provided by the proponent or any other business, it must be identified here. If the proponent or other company is a Nunavut Business, then they will get the Nunavut adjustment (7%). If they are listed in the NTI Inuit Firms database, then they will get the Inuit adjustment (7%). If the company is listed in both databases, they get both adjustments. If they are also located in the benefitting community, then they get the additional Local adjustment (7%). If the sub-contractor is not on either the NNI or NTI List, it does not qualify for a bid adjustment of any kind. Application of NNI & NTI Adjustments: Adjustments are applied to the sub-total dollar values associated with each listed component and subcontractor or supplier according to their registration status. Accordingly, the Evaluation Committee will check the NNI and NTI databases to verify that the sub-contractor or supplier listed is actually registered and adjustments will be given according to the registered status. For Example, if the proponent indicates that a company is both a Nunavut Business and an Inuit Firm by placing check marks in the ‘Nunavut’ and ‘Inuit’ columns, and the Evaluation Committee determines that the company is included on the NNI Registry but is not included on the NTI Inuit Firms Listing, then the Nunavut adjustment will be allowed and the Inuit adjustment will be denied. Proponents are hereby reminded that registration in the NNI and NTI registries requires annual updates, therefore, proponents are encouraged to check the NNI and NTI websites to verify the status of any subcontractors and suppliers they propose in carrying out the work. Proponents should also ensure that their own information is up to date. Total Labour Value: is the total of all of the individual team members assigned to tasks in the project and listed in each row. Total Goods and Services Value: is the value of the proponent’s own involvement, as well as the involvement of other subcontractors and suppliers with the labour values excluded. The Evaluation Committee will use this information to apply any pricing adjustments you may be entitled to under the NNI Policy. The websites will be used to verify the information provided for proponents, subcontractors and suppliers. This scenario is for a solution of services where a small amount of goods may be required to deliver the service. Instead, a substantial amount of labour is required to complete the contract and the costs for any materials necessary for delivering the service are ancillary, and therefore included in the Proponent’s Administration or General Expenses line item in the bid. For this example, we are using the hypothetical value of $1,000,000 dollars for the proposed total contract price from a company called Local Inuit Nunavut Company (LINC). The contract price is arrived at based on the volume of work to be completed. Note this value was chosen for this example only and is not based on any real prices or a specific volume. It is for illustrative purposes only. Total Proposal Price of Local Inuit Nunavut Company (LINC): A $ 1,000,000 The proposal is further broken down to separate the Proponent and sub-contractor labour values from the non-labour portion of the services, and for the purposes of applying bid adjustments, the status of each company is verified. Total Proposal Price of LINC Labour Component LINC Labour $ 1,000,000 Payroll Cost $ 200,000 LINC Labour Sub-Contractor A Labour Worker Status Inuit, Nunavut, Local (Local Inuit are Nunavummiut) Non-Inuit, Nunavut based, not Local Not-Inuit, Not-Nunavut, (Montreal) Other Services Components LINC Materials Sub Contractor A Sub Contractor B Firm Status Inuit, Nunavut, Local Not Inuit, yes Nunavut, yes Local Yes Inuit, not Nunavut, yes Local Other Service Component Costs $ 200,000 $ 100,000 $ 100,000 $ 300,000 $ 100,000 For the Proponent Company: Local Inuit Nunavut Company (LINC) Inuit ownership – Included on the NTI Inuit Firms Registry – Yes Inuit Nunavut based and owned – Included on the GN NNI Secretariat Nunavut Business Registry – Yes Nunavut NTI or NNI Registered and based in the community where the Services are required – Yes Local For the Sub-Contractor “A” No Inuit ownership – Not on NTI Inuit Firm Registry – Not Inuit Nunavut based and owned – Included on the GN NNI Secretariat Nunavut Business Registry – Yes Nunavut NNI Registered and based in the community where the Services are required – Yes Local For the Sub-Contractor “B” Inuit ownership – Included on the NTI Inuit Firms Registry – Yes Inuit Nunavut based & owned but NOT listed on the GN NNI Secretariat Nunavut Business Registry – Not Nunavut NTI Registered and based in the community where the Services are required – Yes Local This example is given to illustrate two things: 1) 2) How Bid Adjustments are Applied; and How Inuit Content (Labour and Firms) is evaluated 1) How the Bid Adjustments are Applied Calculate Allowable NNI Adjustments to Determine NNI Adjusted Bid Price (2-Part Step): Table I. This analysis is based on the Proponent’s identified workforce, and workers to be used by its subs. Proponents must indicate in their bids the dollar value estimates for workers and indicate if they are Inuit or not, if they are working in Nunavut or not, and which community they’re based in. This level of detail is needed to accurately calculate adjustments. For each value component and status category of labour, the value of the labour will be multiplied by the total allowable adjustment percentage factor. Estimated Labour/Payroll Expenditures Breakdown Table Value of Nunavut Total Value of Inuit Local Other Employers and Labour Labour Residents Residents Residents Residents Adjustment Adjustment Forces 7% 7% 7% 0% ($) (%) ($ x %) LINC: Inuit based in service community (Local Inuit are considered Nunavummiut LINC: Nunavut workers based outside service area (not LCA beneficiaries) Sub-Contractor A: NonInuit & not working in Nunavut (not Inuit or Nunavut) $200,000 □ 21% $ 42,000 $300,000 □ □ □ 7% $ 21,000 $100,000 □ □ □ 0% $ 0.00 Total Estimated Labour Total Estimated Inuit Labour $600,000 $200,000 Value of Adjustments on Total Labour ($42,000 + $21,000) =B$ 63,000 Table II. This analysis is based on the Proponent’s identified Value of Services to be provided by the Proponent and Sub-Contractors. Bidder must have provided all ‘Own Forces’ amounts and Name(s) and Dollar Values of all intended Sub-Contractors in their bid. To calculate the adjustments, multiply the Value of Services by the Total Adjustment Percentage factor. Other Services (Excluding Payroll Estimates) Fees/Price Breakdown Nunavut Total Value of Other Value of Inuit Contractors Names & Businesses Local Adjustment Services Adjustment Firms Business Line Items % 7% 7% ($) 7% 0% ($ x %) LINC: Materials & Administration (Nunavut, Inuit & Local) Sub-Contractor A: Specific Services (Nunavut and local, but not Inuit) Sub-Contractor B: Specific Services (Inuit and Local, not Nunavut) $200,000 □ 21% $ 42,000 $100,000 □ □ 14% $ 14,000 $100,000 □ □ 14% $ 14,000 Total of Other Services Inuit Portion of Total Other S i $400,000 $300,000 Value of Adjustments on Other Services excluding Labour ($42K + $14K + $14K) = C $ 70,000 To determine the Total Value of Adjustments, add the total adjustments under the Payroll Breakdown Table (B) and the total adjustments from under the Other Services table (C) to find the Total Value of Adjustments: ($63,000 + $70,000) = D $ 133,000 2) How Inuit Content (Labour and Firms) would be Evaluated Labour Component: In order for Proponents to maximize points available for Inuit Labour, the will need to clearly outline their estimates for labour required to deliver the contract. This will include the value of the labour directly engaged by the Proponent company, and the value of labour provided by sub-contractors. Proponents should also be sure to identify the beneficiary status and location of the workers (i.e., Inuit or not, based in Nunavut (this will determine Local adjustments). The GN or NASL may request a description of the job title and the value of the labour to deliver the service to that Area; however this information should be included somewhere in the proposal submission. Other Expenses Component: nd The 2 pricing breakdown table provided is provided for the Proponent to identify other expenses and who they’re being provided by. This includes all of the other components and costs of delivering the service, including any sub-contracted services, supplies, fuel, administrative costs, overhead, profit margin, hotels, insurance, advertising, transportation costs, maintenance, depreciation, etc. For the purposes of providing pricing, Proponents should present their pricing in a format similar to the table provided. Costs or components that are internal to the Contractor such as profit margin, insurance, overhead etc., should be listed under the Proponent’s name and will be considered as ‘own forces’. Other components that may be broken out and identified as Inuit and or Nunavut and or Local companies should be listed separately. If the services are being delivered by a Local Inuit or Nunavut firm, they should be listed separately. Proposal Scores and Inuit Content: From the RFP document, Table 4, we see that the Inuit Content Rating Criterion includes Inuit Employment (10%) and Inuit Firms (5%). From the information proponents submit, we will complete the scores for Inuit Employment, Inuit Firms and the Bid Adjustment. How Inuit Labour Content is Evaluated: To determine the score for Inuit Labour, the Evaluation Committee will award points for the percentage of payroll dollars that is outlined as Inuit Labour. In this example, the total value of Inuit Labour is $200,000. The total value of all labour is $600,000. Therefore the score for Inuit Labour is calculated as follows: Inuit labour Score Inuit Labour score = $ Inuit labour / $Total Labour = $200,000 / $600,000 = .33 = 3.3/10 How Inuit Firms Content is Evaluated: To determine the score for Inuit Firms, approximately 1 point will be awarded for each 10% of Inuit Content to be provided for delivering the contract in comparison to the total overall proposal value for the contract. This includes Inuit Labour. In our example, the total value of Other Services (Supplies/Materials, Contractor or Sub- Contractor) is $400,000, and the total value of proposed labour is $600,000. This is a total overall proposes contract value of $1,000.000. The Inuit portion of the Total Labour component on Table 1 is $200,000, and the Inuit Portion of the Other Services component on Table 2 is $300,000. This makes the total Inuit Content $500,000: ($200,000 for LINC Inuit Labour + $100,000 for Sub-Contractor B Labour + $200,000 for LINC Materials & Admin, etc.) Accordingly, from our example the proponent LINC would score the following: Inuit Firm Score Inuit Firm score = $Total Inuit Content / $Total Contract Value = $500,000 / $1,000,000 = .5 = 2.5/5 Bid Adjustments - In terms of NNI Adjustments, our Example Company LINC would have achieved the following adjustments (as illustrated above): Bid Adjustment Rate = $Total Adjustments / $Total Contract Value = $133,000 / $1,000,000 = .133 = 13.3% Rent The Bid Adjustment rate will be applied to the Minimum Annual Guaranteed Rent for the first year in evaluation of the Compensation to NASL. The proponent with the maximum overall return to NASL, after bid adjustments are applied receives a score of 10/10. The next highest bid after adjustment, receives a score relative to the best score. 108
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