Concession at Palms Book

Page 1 of 11 AN INVITATION TO BID MICHIGAN DEPARTMENT OF NATURAL RESOURCES PARKS AND RECREATION DIVISION Michigan State Park Concession Palms Book State Park Store and Food Truck Concession Bid Package Enclosures Section 1. Standard Bid Requirements Section 2. Specific Bid Information Section 3. Bid Forms • Bid Proposal Form • Concession Bidder Qualification Statement • Bank Statement of Credit Section 4. Sample Contract Page 2 of 11 SECTION 1, STANDARD BID REQUIREMENTS: Act 451, P.A. of 1994 authorizes the Director of the Department of Natural Resources to contract public service privileges in state parks. Through this authority, the Department desires to invoke the widest possible interest to obtain the most qualified and capable concession operator available. The Department is seeking a partner to operate the store concession at Palms Book State Park. As a new service, the Department is requesting that bidders consider the addition of a food truck in the parking area. The selected

partner will offer prepared and pre-packaged foods, beverages, ice cream, bagged ice, souvenirs, and clothing which advertises the park. Bids must be enclosed in sealed envelopes. Bid envelopes must be plainly marked on the outside, "Bid for Concession at Palms Book.” Other larger documents such as development plans must be enclosed and appropriately labeled. Only Sealed Bids properly addressed and identified can be accepted. This bid will be opened on December 7, 2021, at 2:00 p.m. Bid documents received after this date and time will not be accepted. Incomplete bids will not be accepted. Bids will be opened in the Roscommon Customer Service Center. You may either hand deliver your bid or mail it to: Roscommon Customer Service Center Attn: Concession and Lease Manager 8717 North Roscommon Road Roscommon, MI 48653 To bid on this concession, you must complete the following: 1. Submit bid prior to 2:00 p.m. on December 7, 2021 2. Bid Proposal Form 3. Concession Bidder Qualification Statement 4. Bid Guarantee Payment in the amount of $200 5. Bank Statement of Credit in the amount of $100,000 6. Firewood Questionnaire Statement 7. Sealed envelope and marked as “Bid for Concession at Palms Book” Page 3 of 11 Bidder Selection: The bids will be evaluated on previous business experience, financial stability and monetary compensation to be paid to the State. Personal interviews may be required to assist in evaluating each bidder's proposal and qualifications. If such interviews are required, bidders will be contacted to make arrangements. Each bidder may select one (1) additional representative to monitor the interview. General Bid Information: 1. Act 451, Public Acts of 1994, requires that the Director of the Department of Natural Resources shall provide that each concession is awarded at least every seven (7) years based upon extension, renegotiation or competitive bidding. 2. The bids will be evaluated on previous experience, financial ability and monetary payment to be paid to the State. 3. The successful bidder will be required to sign a contract. The terms and conditions stated in the enclosed sample contract are to be considered as requirements for this Invitation to Bid. Contractors must pay the Department a fee for the privilege of operating concessions. 4. It is recommended that applicants make a personal visit to the park and the concession facilities to determine the conditions to be encountered, plus any factors affecting the operation. In so doing, it is best to contact the Unit Supervisor or representative. 5. Bidders must accept all concession facilities in their present condition. Do not expect that the Department will perform any repairs or remodeling unless specifically stated in this Invitation to Bid. 6. The submission of a bid shall be deemed evidence that the bidder has carefully examined these instructions, the proposal form, and the sample contract terms and is fully aware of the responsibilities of the contractor. In addition, the bidder agrees to abide by all applicable laws relating to the operation of the concession if granted this concession contract. 7. Bids are to be made only on the basis of the Invitation to Bid. A bidder shall not be relieved of their bid because of mistakes. 8. Deviations from the specific terms, qualifications and requirements, as set forth in the Invitation to Bid are not permissible as a part of the bid. But, alternate or additional bids or suggested revisions, if any, may be submitted separately and apart from, but enclosed with, the proposal. Such alternate Page 4 of 11 proposals will be reviewed only as to their merit and potential benefits to the public and the Department and may or may not have a bearing in the selection of a bidder. 9. The Department of Natural Resources reserves the right to reject any or all bids. 10. Performance Bond: The bidder that is awarded a contract must provide the Department with a Performance Bond for the amount specified in the specific information and requirements for this concession sheet within ten (10) days of receipt of the contract award. Failure to do so will result in the forfeiture of the award. The bond guarantees that the bidder will perform all requirements and provisions in this Invitation to Bid. The Performance Bond will be due within 10 days of the Contract award. The Performance Bond for the Contract will be $5,000. Performance Bonds can be accepted in four different types. All types must be approved by the Department of Natural Resources, Parks and Recreation Division, and remain in effect for the entire contract term or be effective for the entire period of operation for each year of the contract. Bonds are to be mailed to: DNR, Parks and Recreation Division Roscommon Customer Service Center Attn: Concession and Lease Manager 8717 North Roscommon Road Roscommon, MI 48653 a) Surety Performance Bond is issued by a bonding company. This type of Bond shall be executed by a surety company authorized to do business in the State of Michigan. The Bond shall be payable to the State of Michigan. b) Cash Bond can be paid by check or money order made payable to the State of Michigan, or currency of the United States of America. c) Certificate of Deposit (CD) shall have a minimum maturity of one (1) year. Certificates must be negotiable and must be of a type that pays interest on maturity only. The State's Federal employee I.D. number (38-6001134) should be used on all certificates. The CD should be automatically renewable and must be registered as follows: Chief, Parks and Recreation Division Michigan Department of Natural Resources Page 5 of 11 d) Letter of Credit is issued by a bona fide financial institution. Letters shall have a minimum maturity of one (1) year. They must be registered as follows: Chief, Parks and Recreation Division, Michigan Department of Natural Resources. 11. Bid Guarantee: The Bid Proposal form must be accompanied by either a certified or cashier’s check on an open, solvent bank in the amount of $200. Guarantee of the three (3) highest bidders will be retained until the Department has awarded the contract. Guarantee payments of all other bidders will be returned within three weeks of the bid letting. If the successful bidder fails to provide a Performance Bond or open the concession on the date set by the Parks and Recreation Division, the guarantee payment shall be forfeited to the State. 12. Statement of Credit: The Statement of Credit reflects a conservative estimate of what it will cost to set up and begin operations. The Statement of Credit amount required for this contract shall be $10,000. To meet this requirement, the bidder must provide a certified document prepared by a licensed financial institution. Current concessionaires with at least 10 years of experience in Michigan State Parks and Recreation Areas are exempt from this requirement. 13. Selection Process: Prior to awarding a concession contract, the Department takes the following steps: a) Competitive bid letting b) Department internal review of submissions (including at a minimum, Concession and Lease Manager, Park Manager, and District Supervisor) c) Department may request a presentation from all bidders to gain clarification where questions arise d) Notification of selection (approximately two weeks between bid and notification) SECTION 2, SPECIFIC BID INFORMATION: Contract Requirements: 1. Liability Insurance (see Sample Contract Section XI.A.7.): General Aggregate: $2,000,000 Product Aggregate: $2,000,000 Personal Injury.......: $1,000,000 Occurrence............: $1,000,000 Fire Damage Limit: $ 500,000 2. Workers Compensation Insurance pursuant to Sample Contract Section XI.B. Page 6 of 11 3. A minimum Contract Fee of 9% of gross annual sales if the bidder assumes responsibilities of paying for a dumpster, collecting and disposing of waste from the Premises, and cleaning and maintaining the public restrooms pursuant to Sample Contract Section II.B. Should the bidder choose to not assume responsibilities listed above, the minimum Contract Fee shall be 10% of gross annual sales. General Information: Palms Book is an exciting side trip for visitors touring the Upper Peninsula. Known as one of Michigan's alluring natural attractions, the park is home to Kitch-iti-kipi or the “Big Spring.” It is Michigan's largest freshwater spring, spanning 200 feet across and 40 feet deep. The flow continues throughout the year at a constant 45 degrees Fahrenheit, gushing more than 10,000 gallons of water a minute from fissures in the underlying limestone. By means of a self-guided observation raft, visitors are guided to vantage points overlooking fascinating underwater features and fantasies. Ancient tree trunks, lime-encrusted branches and fat trout can be seen as they slip through crystal waters far below. Clouds of sand kept in constant motion by gushing waters create ever-changing shapes and forms – a challenge to the imagination. The self-guided observation raft and the trail leading to it are ADA-accessible. Year Concession Sales Annual Visitors 2016 $380,142 123,181 2017 $423,577 93,473 2018 $475,972 129,940 2019 $533,524 135,923 2020 $437,342 106,449 Concession Facilities: The concession building is approximately 1,600 square feet. Within the building is approximately 1,200 square feet of retail space, an employee restroom, an entrance way with shelving that is approximately 140 square feet, and a utility room (contains three sinks, hot water tank, water filter, pressure tanks, and a mop sink) which is approximately 70 square feet. The building contains electric forced heating and cooling. Products and Services: The Department retains the right to approve the sale of all products and services. The Contractor shall not sell any product or service of which the Department does not approve. Products and services, which are permitted, are identified in the sample contract. Visa and MasterCard credit cards should be accepted by the Contractor for all products and services.