The Miami Beach Convention Center’s (MBCC) renovation which is managed by Spectra Venue Management (Spectra) is scheduled to be completed in late 2018. The renovated facility will have only two (2) fixed concession stands remaining in the building following construction. The operation of the renovated facility will require a robust portable food cart program to accommodate the food and beverage (F&B) needs of its customers. The portable food carts are designed in a manner that allows the convention center to tailor its food program for the demographics of each show. The portable food carts will aide in facilitating the sales and distribution of the F&B in any building layout or corridor traffic patterns and congested public areas which vary from show to show. In turn, this helps maximize the capture rate and escalate top line revenues.
The convention center can offer almost any type of food with these carts. This wide variety of food concepts become a selling point for the building sales team, since clients and attendees are looking for options. The ability to offer such a diverse range of foods will attract new clients and repeat business to the center. Additionally, the new look of the carts also helps to establish buyer confidence. Carts have traditionally had a carnival look which can cause attendees to have preconceived ideas about food quality. However, these new carts are designed to look professional, like miniature restaurants. Attendees will have a higher comfort level spending their money at these locations and less likely to leave the center looking for alternative food options. Sales are expected to be between $7 million and $12 million a year – allowing for a rapid return on the City’s investment.
ITB PROCESS
ITB No. 2018-075-ZD, was issued on November 17, 2017, with a bid opening date of December 21, 2017. Two (2) addenda were issued. The Procurement Department issued bid notices to 114 companies utilizing publicpurchase.com website and forty-one (41) via email notification. Fifty-four (54) prospective bidders accessed the advertised solicitation. The notices resulted in the receipt of two (2) responses from: K2 Evolution, LLC. and The Vollrath Company, LLC. as indicated in Attachment A.
The specifications for the food carts are highly detailed and very specific to the food service industry, including specifications on the materials that may be used in the construction of the carts, and the equipment that each cart must contain. Since the food service carts are very unique and rarely purchased by the City, staff does not have the industry expertise to develop such specifications. As a result, staff worked directly with Spectra, the convention center operator, who took the lead in developing the specifications, as well as coordinating with Centerplate, the food service provider for the facility.
As previously noted, only two bids were received. Additionally, there was a very wide gap in the prices received with a difference between the two bidders of nearly $300,000. Upon further review of the bids received and staff's attempt to confirm each bids compliance with the specifications, it has been determined that the technical specifications were ambiguous, lacked significant product details, and required components that are not readily available in the marketplace.
After review and consideration of the above-referenced issues with the specifications, staff and the Spectra team have identified areas where the specifications can be updated and better defined to eliminate ambiguity in the required materials and components, durability and functionality in order to provide a level playing field for all bidders.