1. BRANDED HOTEL MANAGEMENT RFP ACDBE/MBE/WBE TRAINING WEBINAR

2. Certification Requirements
Compliance Summary
Certification Type
MBE/WBE
ACDBE
Jurisdiction
Local
Federal
Certification Requirements
At least 51 percent ownership by a minority or woman and meet personal net worth and gross receipt requirements.
At least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51% of the stock is owned by one or more such individuals;
At least 51 percent of their business controlled by one or more minority groups or women
Management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.
RFP Requirements
Minimum of 25% MBE and 5% WBE participation.
Minimum of 15 percent ACDBE participation.

3. MBE/WBE COMPLIANCE

4. MBE/WBE Overview
The Department of Procurement Services Certification and Compliance division certifies minority-and women-owned businesses that:
have at least 51 percent ownership by a minority or woman
have at least 51 percent of their business controlled by one or more minority groups or women
meet personal net worth and gross receipt requirements as applicable
The City of Chicago also accepts Cook County certifications.
Approved certifications are valid for 5 years.

5. MBE/WBE Overview
The RFP requirements are a minimum of 25% MBE and 5% WBE participation.
Percentage participation refers to the percentage of the overall project value (in this case, the value of the Technical Services and Pre-opening Services covered by the Technical Services Agreement)
In order to receive credit, vendors must be certified as a MBE or WBE and also must be certified to perform the type of work (as determined by NAICS codes) that they are performing for the Operator.
For more information please see Exhibit A – MBE/WBE Special Conditions and the Schedules thereto, including forms of Schedule C-1 and D-1.

6. How do we achieve MBE/WBE Participation?
The services specified in and governed by the Technical Services Agreement require MBE/WBE participation. These services may include the following:
Advising CDA and its Design Build or Design Bid Build teams, on the specific brand standards, programming, aesthetics, and systems necessary for the Hotels.
Participating in the review and approval of each phase of the pre-design, design, development, and construction of the Hotels in order to confirm compliance with the Operator’s unique brand standards.
Working with the DB or DBB teams to manage the capital improvement process as efficiently as possible.
Pre-Opening Services including the following:
Preparation of and adherence to approved budget for pre-opening activities;
Development and execution of a sales, marketing, and public relations strategy in collaboration with CDA Marketing Team adhering to City guidelines;
Creation and disbursement of marketing materials to appropriate audiences via effective communication means;

7. Pre-Opening Services continued…
Selection and purchase of FF&E and OS&E procured before Hotels are open for business;
Selection of the Hotels’ management teams;
Recruitment and hiring of Hotels’ employees and recommendation of appropriate employee payroll and benefits plans;
Training of management and line staff, including creation and development of a training program to help staff embrace the Hotels’ concepts;
Acquisition of permits and licenses necessary for the operation of the Hotels;
Assistance in setting-up technical systems and technology systems necessary for the operation of the Hotels in accordance with set standards;
Set-up of financial systems, including the accounting infrastructure for the Hotels with standard reporting systems and standard operating processes for all accounting functions;
Negotiation of contracts with suppliers considered necessary for the operation of the Hotels;
Development of deployment plan for Operator’s brand loyalty program in order to drive awareness and anticipation among guests in program; and
Purchase or lease of services and merchandise as are necessary.

8. Do contracts for goods/commodities (i. e
Do contracts for goods/commodities (i.e. linens, janitorial supplies, disposables etc.) provided by MBE/WBE/ACDBE suppliers and count towards the required participation percentages? How would these be calculated?
If provided as part of the Technical/Pre-Opening services, MBE/WBE suppliers of goods may be used to achieve the compliance goals set forth in the RFP.
60% of expenditures for materials and supplies purchased from a MBE or WBE that is certified as a regular dealer or supplier shall be counted toward the MBE/WBE compliance goals set forth in the RFP.
After the Hotels are open for business, 60% of expenditures for materials and supplies purchased from a certified ACDBE that is certified as a regular dealer or supplier shall be counted toward the 15% ACDBE participation goal.

9. ACDBE COMPLIANCE

10. Why is there an ACDBE requirement for this RFP?
FAA Regulations 49 CFR Part 23.3
A for-profit business entity that is:
located on an airport and engages in the sale of goods or services to the public under an agreement with the recipient, another concessionaire, or the owner or lessee of a terminal, if other than the recipient OR
A business conducting one or more of the following covered activities, even if it does not maintain an office, store, or other business location on an airport subject to this part, as long as the activities take place on the airport: Management of contracts and subcontracts, a web-based or other electronic business in a terminal or which passengers can access at the terminal, an advertising business that provides advertising displays or messages to the public on the airport, or a business that provides goods and services to concessionaires.

11. What is an ACDBE Firm? A for-profit small business entity:
That is at least 51% owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51% of the stock is owned by one or more such individuals; and
Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it.
Locally certified by City of Chicago, Metra, and Chicago Transit Authority

12. How To Achieve ACDBE Participation?
For this option, the proposer is solely owned and operated as a certified ACDBE firm. Complete ACDBE Commitment Form and ACDBE certificate(s).
Percentage Participation:
For this option, a percentage of the business is designated to be owned, operated and/or maintained by a certified ACDBE through a sub-lease, management, operating and/or franchise agreement. If the proposer plans to participate in a partnership with a certified ACDBE firm, the proposer must complete ACDBE Commitment Form, ACDBE Concessionaire Information questionnaire contained in this RFP, plus a Draft Partnership Agreement and ACDBE certificate(s). Submit with the proposal submission
Percentage Participation by way of a Joint Venture Agreement:
For this option, a proposer enters into a joint venture agreement with a certified ACDBE partner, in which the ACDBE partner has financial risk and reward commensurate with the ACDBE participation goal for this concession opportunity.
If the proposer plans to participate in a joint venture with a certified ACDBE firm, the proposer must complete ACDBE Commitment Form, ACDBE Concessionaire Information questionnaire, plus a Draft Joint Venture Agreement and ACDBE certificate(s). All should be submitted with the proposal.
Percentage of Goods/Services towards Vendor Purchases:
For this option, the proposer designates a percentage of the gross revenue that will be committed to the purchase of goods and services from ACDBE certified vendors. Certified ACDBE Vendors are located at

13. How do we achieve ACDBE participation?
Once the Hotel(s) are open for business, the ongoing management services set forth in and governed by the Management Agreement require ACDBE participation. These services may include:
Supervising and purchasing, or arranging for the purchase, of all supplies and inventory for the Hotel(s) including FF&E and OS&E if procured after Hotels are open for business;
Maintaining the Hotels in good operating order, repair, and condition;
Recruiting, hiring, paying, training, and supervising all Hotel personnel and determining and implementing all personnel policies and practices relating to the Hotels;
Establishing pricing structures for usage within parameters established by the CDA in consultation with the selected Operator;
Supervising and maintaining complete books of accounting and records relating to the results of operation;
Negotiating, entering into, and administering contracts for the use of banquet and meeting facilities and guestrooms by groups and individuals;
Working with CDA to accommodate potential conferencing and lodging need logistics;
Establishing all marketing, advertising, public relations, and promotion policies;
Reserving and financing vendors for hotel marketing events;

14. Ongoing Management Services continued…
Implementing a Chicago themed arts program that will be incorporated within the hotel upon approval by CDA;
Preparing guidelines and installing safety/security equipment to protect the welfare of guests and employees;
Creating sustainable operations with the goal of maximizing operating and maintenance savings;
Coordinating on-site parking services, either directly or through a third-party contractor;
Collaborating with car rental company for on-site car rental services and luxury car service for on-site drivers;
Collaborating with CDA and concessions for personal shopper for passengers;
Collaborating with, preparing and submitting to the CDA the Hotels marketing plan and operating and capital budgets for each operating year;
Entering into a Cash Management Agreement and collecting, depositing, and applying all charges, revenues, taxes, rent, and other amounts due from guests, and any lessees or concessionaires.

15. Counting ACDBE Participation in JV Agreements
Capital Contributions = 30%
Control = 30%
Distinct, Clearly Defined Portion of the Work
Certified ACDBE (in applicable trade) with
30% Ownership
ACDBE Credit = 30%
Management = 30%
Risks = 30%
Profits = 30%

16. Type of ACDBE Participants
Joint Venture: ACDBE and one or more firms form a single, for-profit business enterprise; pool their resources, skill and knowledge; and share in risk, profit, capital contribution, and control of the JV (proportionate to ownership interest)
Sub-concessionaire: ACDBE operates one or more concessions or spaces as a sub-tenant
Supplier/Service Provider: ACDBE sells supplies or services to a concessionaire
Subcontractor: ACDBE performs a portion of a management contract under a prime vendor
Prime Concessionaire: ACDBE has a direct agreement with the airport to operate its concession

17. Fictitious numbers for purpose of explaining ACDBE
Pro Forma

18. ACDBE Commitment

19. Relationship between the Operator and DB or DBB teams for the Hotel Projects
The Operator’s Technical Services team shall provide technical advisory and specific design services for the Hotel Projects, including:
advising CDA and its Design Build or Design Bid Build teams, on the specific brand standards, programming, aesthetics, and systems necessary for the Hotels.
participating in the review and approval of each phase of the pre-design, design, development, and construction of the Hotels in order to confirm compliance with the Operator’s unique brand standards.

20. Relationship between the Operator and DB or DBB teams for the Hotel Projects continued…
The Operator’s Technical Services team shall not be responsible for:
managing or supervising the contractors engaged by CDA to carry out any portion of the construction or renovation of the Hotels
construction means, methods, techniques, sequences, or procedures; safety precautions and programs in connection with the construction; or the failure of any contractor to carry out any portion of the construction

21. Conflicts of Interest
Architects or other members of the Hotel Operator’s design team will be precluded from participating in the Design-Build or Design-Bid-Build teams for the Hotels on the basis that to do so would be a conflict of interest.
Entities that participate on the contract for Construction Manager at CDA or Program Manger at CDA will not be allowed to participate on the contract for Hotel Operator or on the DB and DBB teams for the Hotel Projects.

22. Useful Resources
49 CFR Part 23 – ACDBE Program
49 CFR Part 26 – DBE Program
FAA dbE-Connect reporting module
Official FAQs on the ACDBE Program
Contacting FAA DBE/ACDBE Staff
Joint Venture Guidance