Vermont Farmers, Food Producers, & Independent Contractors

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1 TO: FROM: Vermont Farmers, Food Producers, & Independent Contractors Reg Godin, Senior Market Development Specialist DATE: October 15, 2014 SUBJ: Request for Interest Vermont Sourced Retail Food Stand The State of Vermont is requesting expressions of interest from qualified and experienced individuals or entities competent to operate a multi-producer stand solely comprised of Vermont products (as described in Section D Scope of Work) at Boston Public Market. The desired scope of work to be performed and the information that must be presented in your responses are described in this Request for Interest One (1) PDF of the written narrative and (1) Excel Worksheet of the completed Income & Operational Expense Form must be submitted via by no later than Thursday, October 30th 2014 at 4:00 PM EST to reg.godin@state.vt.us Disclaimer: The state is gathering information for this initiative, an expression of interest is not binding or promissory. Responses will be used for developing a plausible concept for the Boston Public Market. This RFI is issued solely for information and planning purposes; it does not constitute a Request for Proposal or any promise to issue an RFP. This RFI does not commit the state to contract for any service. If you have any questions about the response process, please contact Reg Godin at (802) or reg.godin@state.vt.us.

2 A. INTRODUCTION Vermont Agency of Agriculture is seeking interest from qualified and experienced individuals or entities to operate a food stand at Boston Public Market retailing products originating from the State of Vermont (as approved per Section D Scope of Work) during a negotiable period with a desired start time in the spring of In recognition of the large network of farmers, producers and food related businesses across Vermont, the state subscribes to a free and open response process that affords all businesses equal access and opportunity to engage in developing new market opportunities. B. BACKGROUND This Request for Interest is an effort to gather information to establish whether there is capacity among Vermont businesses to develop a Vermont retail food stand at Boston Public Market. The state has had success in creating a Vermont pavilion at the Eastern States Exposition and is interested in creating a similar partnership with Vermont businesses at Boston Public Market (BPM). BPM is a permanent, year-round, self-sustaining market featuring fresh locally-sourced food brought directly to and from the diverse people that make up Massachusetts and New England ( As stated in the BPM business plan, it is located on the Greenway and along the Freedom Trail at 136 Blackstone St. Situated here, BPM is a one-of-a-kind retail location in a dynamic and growing section of Boston that has a long history of public market activity. Within a half-mile radius are over 11,000 households with average household incomes of over $100,000. Furthermore, the market site is within a 7 minute walking distance of over 102,000 employees and is directly adjacent to Haymarket T Station which has more than 8,000 weekly users. The market site also sits near a public parking garage with subsidized parking rates. All of which provide access to all forms of transportation and a diverse consumer base. ( BPM will operate Wednesday through Sunday, 8am 8pm. The State of Vermont recognizes this as an opportunity to highlight Vermont producers and a means to establish a stronger channel of Vermont products to the city of Boston. Vermont Agency of Agriculture will work directly with Boston Public Market management to secure specific area within the market to sell Vermont products. This partnership with BPM will subsidize initial overhead costs that would otherwise be a barrier for entrepreneurial enterprises. In turn, the State will lease the space at an affordable rate to a qualified and experienced contractor. In the event there is a resulting contract, the Agency of Agriculture will work directly with the state contracted BPM operator. The Agency of Agriculture anticipates providing some start-up funding for stall fit up and other costs associated with making the food stand operational. The Agency will also assist throughout the term of the contract with food and place-based programming as well as use the stand as a venue for marketing various state initiatives.

3 It will be the sole responsibility of the contractor to cover all expenses relating to product inventory, retail staffing, costs associated with direct consumer marketing and materials, equipment and supplies outside of initial stall fit up, all necessary permits and licenses, sales tax, insurance and other costs associated with operating a retail food stand. C. KEY ASPECTS 1. Vermont products sold at the retail food stand will be based off the items listed in Section D, however there is potential for other product categories to be included. 2. Funding for startup costs will be allocated on a fixed basis. If the selected contractor exceeds the allotted amount of funds, it will be their responsibility to pay additional expenses. 3. The agreed to lease term will be negotiable but the contractor must agree to operate a food stall Wednesday through Sunday, 8am 8pm. Work outside those hours will be expected in order to adequately supply and operate the food stand. 4. Ability to source the product mix listed in Section D is a very important factor, specifically the ability to source or grow Vermont organic produce 12 months per year. 5. The selected contractor must source legitimate and properly regulated food items. The State will assist as necessary but it will be the primary responsibility of the contracted entity to insure compliance to Vermont and Massachusetts food laws as well as any applicable federal regulations. D. SCOPE OF WORK The nature of the work may include, but not be limited to, the following services: 1. Source/Grow Organic Produce: First and foremost, the contractor should be able to either grow and/or source certified organic produce grown in the State of Vermont throughout the full calendar year. 2. Source/Produce Maple Syrup. The contractor must be able to either produce and/or aggregate Pure Vermont Maple Syrup and other Vermont maple products. 3. Source/Produce Vermont Products: Preference will be given to contractors who are also able to produce and/or aggregate Vermont products within the following categories: a) Fluid Milk b) Other Dairy (yogurt, butter, sour cream, crème fraiche, etc) c) Specialty Foods d) Beer/Spirits 4. Deliver, Receive & Store: The contractor will be responsible for arranging product delivery as needed to operate a food stand Wednesday through Sunday. Delivery frequency will be on an agreed to basis with Boston Public Market management. Additionally, it will be the responsibility of the contractor to receive and store all deliveries onsite or arrange for offsite storage.

4 5. Operate Retail Stand: During BPM business hours (8am 8pm), Wednesday through Sunday, the contractor will be responsible for the operation of a retail food stand. Responsibilities will include but will not be limited to the following: general stand layout, inventory, stocking & restocking, stall signage, pricing, sales transactions, general customer service, and all other tasks associated with operating a bustling stall. Additionally, the contractor will be responsible for nightly breakdown as required by BPM. 6. Staff Management: The contractor must hire and manage staff to successfully operate a food stand during the aforementioned days and hours. This may require the hiring of part time or additional full time help as the contractor sees fit to operate a vibrant food stand. All hired staff should meet basic hiring qualifications and be competent to operate a food stand that sells and markets organic produce and other Vermont products. 7. Vermont Food Programs: With assistance from the Agency of Agriculture, the contractor will be responsible for creating and executing food programs that highlight the Vermont food landscape. These programs must be related to food and should be educational in general. Examples include: chef at market, farm to school tours, eating with the seasons, Ag literacy, Vermont tourism etc. 8. Marketing: With assistance from the Agency of Agriculture, the contractor will be responsible for maintaining and executing a social media and web based marketing plan. This plan should effectively market and promote all products sold at the stand and the producers that produce these products. The plan should engage and create dialogue with consumers and one that educates about Vermont and its food producers. E. NATURE OF THE CONTRACT The state anticipates leasing the food stand at a negotiated percentage of sales. F. BASE CONTRACT TERMS Both contract period and specific contract terms are to be determined and based upon feedback gathered in this RFI. G. REQUIRED CONTENT FOR ALL PROPOSALS All questions should be addressed in a detailed written response. To aid in the response committee s review of all submissions, we ask the following: All questions should be answered in narrative format. Please use a minimum 11-point type with reasonable spacing and margins. Please answer the questions in the same order stated below, and label/begin your responses with the bold headings used below. Complete and attach the Income & Operational Expense form (The respondent may edit the format and content of the projection form, if necessary).

5 Request of Interest Questions 1. Identity of preparer(s). Please identify all individuals who were involved in the preparation of the response and provide a single point of contact for clarification of information if needed. 2. Background and experience. Provide a history of your organization, number of employees, a list of current products produced, a list of current sales outlets, a list of similar projects and/or ventures, and resumes/credentials of key personnel. 3. Retail. Please explain your knowledge of food retail operations. 4. Product. Please list all product you would anticipate selling at the food stand. If aggregating, please list producer name and if you currently sell this product. 5. Vision. Describe your vision for this opportunity. 6. General Concerns. What concerns you most about this opportunity? What obstacles do you foresee in creating a Vermont food stand at BPM? 7. Partnership. What is your ideal state partnership? What level of involvement would you like the state to have? What areas would you ideally like to have state assistance? What areas would you not like to have assistance? 8. Questions. List any questions not answered above that you feel paramount in developing this venture. 9. Income & Expense Projections. Please use the attached spreadsheet and guide to project your annual income and expenses. The respondent may edit the format and content of the projection form, if necessary.

6 Income & Expense Projection Guide As the success of this initiative will weigh heavily on the contractor s ability to create a profitable enterprise, the state is requesting income* & operational expense projections in order to fully comprehend the contractor s business model. As stated above, the Agency of Agriculture anticipates providing some start-up funding for stall fit up and other up-front costs associated with making the food stand operational. The Agency will also assist throughout the term of the contract with food and place-based programming as well as use the stand as a venue for marketing various state initiatives. Below is a guide to the terminology listed in the Income & Operational Expense spreadsheet. The attached excel spreadsheet is only a guide and the respondent may modify this format as necessary to adequately represent their income and expenses. *Income Sales should be projected from estimated stall size of 200 sq ft Fixed Expenses Marketing The contractor will be responsible for social media as well as web and print advertising as it relates to consumer sales strategy. Liability Insurance The contractor will be asked to carry coverage for up to $1M in liability, $1M in automobile, and $100K/$100K/$500K in worker s compensation Licenses & Permits The contractor will be required to obtain all proper licensing and permitting for their business to be conducted in both the state of Massachusetts and Vermont. Trucking & Fuel The contractor will be responsible for all costs associated with trucking & fuel associated with travel to BPM. No parking will be provided. Payroll The contractor will be required to hire and pay for retail and other staff required to operate the food stand. Variable Expenses Bank Loans/Bank Fees/Credit Card Fees Any expense relating to debt instruments utilized to finance the initial phases of the food stand. Cost of Product Inventory The value of materials and labor needed to produce and/or buy items for sale. Electric and Water The contractor will be responsible for utilities used at the food stand, i.e. electric for refrigeration, water for washing product, etc Repairs/Maintenance The contractor will be responsible for the costs of any general equipment wear and tear. Product Waste The contractor should consider food waste as an expense or consider a plan for perishable product. Miscellaneous Supplies The contractor will be responsible for miscellaneous supplies required for the daily operation of the food stand.