Request for Information (RFI)
This Request For Information (RFI) represents one of several steps taken to provide the Army and Air Force Exchange Service (the Exchange) with an understanding of capabilities of automotive distributors that are available in the marketplace. In the first phase of the project, the survey marketplace will be screened and the result will establish a list of Potential Distributors that appear to meet the Exchange's core requirements. The contents of this RFI document are as follows:
I. Introduction
II. Exchange Overview
III. General Potential Distributor Information
IV. Technical Information
I. Introduction:
Purpose:
The Exchange is currently requesting information regarding potential concessionaire service providers to sell new and Certified Pre-Owned (CPO) automobiles, motorcycles, and leased vehicles to authorized Department Of Defense (DOD) military and civilians stationed or TDY (Temporary Duty (U.S. Military)) for more than 30 days outside the continental US at various overseas military installations. The term "concessionaire" will be referred to throughout this document. A concessionaire is defined as the owner of a concession operation that pays either a fixed sum or a percentage of revenue to an entity with the ability to assign exclusive rights for an area or facility. The information requested will focus on industry standards and technologically updated methods and processes. The Exchange may consider a single source to function as a concessionaire providing the necessary infrastructure to manage an overseas new vehicle sales program; however, individual contracts may be considered depending on what is more efficient and cost effective to the Exchange.
Your responses may be sent to Scott Rose at rosesc@aafes.com.
All responses will be reviewed and a formal Request for Proposal may be issued at a later date.
Responses to the RFI will provide the project with more detailed information to help further differentiate the Potential Distributor solutions. In addition to highlighting the best alternative(s) for the Exchange, this evaluation will increase the Exchange's confidence in, and understanding of, the available dealers/distributors in the marketplace, their methods and processes that may be implemented and the effort required to perform the implementation.
Conditions
Several Potential Distributors will be solicited to respond to this RFI. The receipt of a response to this RFI from a Potential Distributor does not imply any contractual obligation on the part of the Exchange nor does it create any further obligation on the part of the Exchange.
The Exchange considers this RFI and all correspondence, electronic, oral or written communications, documentation, business dealings, or related activity in connection with the RFI to be confidential in nature. The Exchange does not wish its activity with regard to this RFI to be available to anyone other than the Potential Distributors' own personnel (on a "need to know" basis). Therefore, the Potential Distributor may not disclose to anyone other than (i) Exchange personnel directly involved with this RFI and (ii) the personnel authorized and assigned by the Potential Distributor to act on behalf of the Potential Distributor in connection with this RFI. All materials contained within your response to this RFI will be treated confidentially. This information will, however, be made available to all project team members to assist in the evaluation process.
Responses to this RFI will be considered as informational in nature and only an executed contract between the parties will create any obligations on behalf of the Exchange. All written and oral information presented during the procurement process and all responses to this RFI may be made part of any final agreement or contract between the Exchange and the selected source(s). Responses must be signed by an individual authorized to make contractual commitments for the Potential Distributor.
In keeping with Exchange policy, issuance of this RFI does not commit the Exchange (i) to pay any costs incurred by a Potential Distributor in the preparation and submission of a response or (ii) to procure a contract for any services. No materials or labor will be furnished by the Exchange. Only an Exchange contracting officer can legally commit the Exchange to the expenditure of funds in connection with this proposed procurement.
Potential Distributor Response Requirements
In order to control the RFI process and allow equal opportunity for each Potential Distributor, the following guidelines must be followed without exception.
All responses must be in written and electronic (MS Word and Excel, versions 2007 or later) format.
Please include any brochures, descriptions or technical documentation that supports your responses to this RFI or you think will be useful to us in our evaluation; however, we are more interested in the quality of your response rather than the quantity of your response. We are interested in assessing your capability and interest.
We are requesting that your written response to the questions below and any hard-copy materials be received by the Exchange on or before the deadline date specified in the cover letter.
We will rely upon all representations made by your representatives, whether verbal or written, during the evaluation processes. As a result, only fact-based and realistic commitments/information should be conveyed. Your representation and expertise in this type of process is greatly appreciated.
Contract Documentation
Any final agreement executed in connection with or arising out of this RFI will be issued by the Exchange. A copy of the Exchange General Provisions, Labor Provisions, and Special Provisions are provided for information as part of this RFI. The Exchange, as an instrumentality of the U.S. Government, has limited flexibility to negotiate these provisions.
II. Exchange Overview:
The Army and Air Force Exchange Service (the Exchange) is a federal instrumentality that is a unique organization within the Department of Defense. The Exchange utilizes non-appropriated funds and sales revenue to offset operating costs. The Exchange returns its earnings to its customers through improved facilities and payments to Morale, Welfare and Recreation (MWR) programs.
The Exchange has a two-fold mission that has remained essentially unchanged since the military exchange system was established in July 1895:
To provide quality merchandise and services at competitively low prices to its customers.
To generate earnings to provide a dividend to support Morale, Welfare and Recreation (MWR) programs.
The Exchange operates nearly 2,700 facilities in 34 countries, 49 states, four U.S. territories (Guam, Puerto Rico, Northern Mariana Islands and American Samoa) and the District of Columbia. These include main exchanges (PXs and BXs), military clothing sales stores, specialty stores, movie theaters, vending centers, restaurants, personal service concessions, gas stations and auto repair facilities. From its headquarters in Dallas, Texas, the Exchange oversees a global organization that is divided into 5 regions: Eastern U.S., Central U.S., Western U.S., Europe and Pacific Rim. The Exchange also has 40 contingency locations in Afghanistan, Iraq, Kuwait, Jordan, Qatar, United Arab Emirates and Saudi Arabia.
The Exchange is the 61st-largest retailer in the U.S. The Exchange serves a customer base of 24.5 million active-duty military; retirees; National Guardsmen; Reservists; 100 percent disabled honorably discharged Veterans; all other honorably discharged Veterans (online only); authorized Public Health Service associates; authorized National Oceanic and Atmospheric Administration associates; US Coast Guard members; authorized State Department associates stationed outside of the continental United States; Department of Defense authorized civilian associates; and, where authorized, the known dependents of the sponsors within each of these segments.
Sales in FY 17 totaled $8.6 billion with earnings of $376 million. Dividends in the amount of $219 million were allocated to MWR programs benefiting soldiers, airmen, sailors and Marines.
For further information about our company, please refer to the Exchange website (www.shopmyexchange.com).
Background
The Exchange New Vehicle Sales (ENVS) Program was authorized by the U.S. Congress to enhance the quality of life for members of the military by providing convenience and consumer protection during the vehicle-buying process. Its purpose has been to ensure that members of the military are able to purchase U.S.-specification vehicles and motorcycles for delivery either at their overseas location or for stateside delivery. Sales for delivery to an overseas location are limited to those geographical areas where adequate warranty service is available. The ENVS program currently operates in 33 countries, 108 locations and on 2 fleets of the U.S. Navy. The list of countries are as follows: Greece, Cuba, Spain, Balkans (Bosnia, Sarajevo, Kosovo and Macedonia), Bahrain, Belgium, Germany, Italy, Netherlands, Turkey, Romania, United Kingdom, Guam, Saipan, Kwajalein, American Samoa, Japan, S Korea, Puerto Rico, Afghanistan, Kyrgyzstan, Iraq, Kuwait, Qatar, Jordan, United Arab Emirates, Oman, Djibouti, Egypt, Singapore, Azores, and Poland. The program currently employs over 100 independent sales representatives that provide service at local offices in the various countries previously mentioned. Currently, the ENVS program has concession contracts in place that offer automobiles from such manufacturers as Ford and Chrysler and motorcycles from Harley-Davidson. The program was expanded in 2018 to include Certified Pre-Owned Vehicles. These manufacturers and the vehicles sold collectively generated $150 million in sales during FY 2018. The 2018 total units sold for each concept were as follows:
Chrysler Group LLC: 1995 units
Ford Motor Company: 2,287 units
Harley-Davidson: 437 units
Certified Pre-Owned-52 units
Ultimately, the Exchange is looking for retail automotive dealer/distributor(s) who can provide new vehicles/motorcycles and Certified Pre-Owned vehicles from various manufacturers at competitively low prices while providing quality customer service benefits and operating/managing a thorough infrastructure of sales associates in an exclusive overseas business environment. This environment comes with its challenges of dealing effectively with cross-border transactions and host country legal tax regulations and laws. Additionally, all operations are subject to Department of Defense regulations that govern on-base activities in which Exchange contractors are required to be in compliance. However, the Exchange is looking for ways to improve the ENVS program and we are very interested in considering any new approach or business model currently available to provide these services to our military members.
III. General Potential Distributor Information
1. What is your Company's official name?
Distributor Response:
2. When was your Company established?
Distributor Response:
3. Is your Company involved in any litigation, investigation, reorganization, receivership, filing, strike, audit, corporate acquisition or other action that could have an adverse impact on your ability to provide services? If so, please describe the nature of the item and its potential impact.
Distributor Response:
4. Does your company have any active contracts with the US Government or any federal entity, and do any of them provide service outside of the US? If so, please provide contract number, agency, date of award, contract value, and if it is a concessionaire contract.
Distributor Response:
5. Please provide three client references with contact names that are currently using your services as a distributor of their vehicle brand (ex: manufacturers such as Ford, Chrysler, etc.). Also, please provide a list of all vehicle and motorcycle brands your company currently offers.
Distributor Response:
6. What types of reports are available from your company and how often are they generated (ex: customer service, sales, market research)?
Distributor Response:
7. How are your services supported in global regions (e.g., centrally from world headquarters or regional offices)?
Distributor Response:
8. What is your company's approach to customer service and how do you measure customer satisfaction?
Distributor Response:
9. Is your company willing to customize your services to accommodate Department of Defense requirements, if needed?
Distributor Response:
10. Indicate why your company, as a Potential Distributor, is particularly appropriate for this business need, where you can provide value from the strategic standpoints discussed above and how you can help us achieve our mission benefits. Describe any special services you can provide that are different from those offered by other Potential Distributors or requested in this RFI.
Distributor Response:
11. How many sales representatives do you currently employ? Describe the human resource processes (including personnel background checks) your company currently has in place
or would establish to create an overseas sale representative team in the various countries mentioned earlier in this RFI. Please note that most locations require only one to two
sales representatives as the office space is very limited.
Distributor Response:
12. Do you have any existing concessionaire contract model or additional information on operating as a concessionaire that can be shared with the Exchange?
Distributor Response:
IV. Technical Information (Sought - After Capabilities)
All of the questions/information requests in this section refer to your available services (do not include information on other packages or custom versions).
1. What, if any, technical requirements for setting up operations would your company require?
Distributor Response:
2. Please provide us with any applicable information (e.g. industry standards, compliances etc.) that would be needed in order for us to fulfill our requirement.
Distributor Response:
3. Is your company able to operate an online site for service members to input orders electronically? This question is referring to potentially managing a website via a kiosk operation as well as an online site.
Distributor Response:
4. Is your company able to provide annual maintenance and total cost of ownership (TCO) data for all vehicles online?
Distributor Response:
5. Does your company's online site support the capability for customers to view available on-hand inventory by location and vehicle specifications?
Distributor Response:
6. Online capability: Are customers able to track orders and cancel orders via an online system?
Distributor Response:
7. Online capability: Does your firm have financing capabilities for online orders?
Distributor Response:
8. Online capability: Please give an overview of your firm's online capabilities which you believe may be beneficial to the Exchange?
Distributor Response:
9. Online capability: Please give an overview of your firm's privacy policy in regards to use of customer information?
Distributor Response:
10. Does your company have the ability to implement a computer point-of-sale infrastructure capable of operating in 30 different countries?
Distributor Response:
11. What is your company's cancellation policy regarding vehicle/motorcycle orders placed with sales representatives and online?
Distributor Response:
12. Does your company offer a marketing referral program? Please provide explanation of the program and the benefits it provides.
Distributor Response:
Financing
1. What type of financing options do you currently have available for customers purchasing a new vehicle or motorcycle? Please explain the financing options available.
Distributor Response:
2. What type of financing options can your company offer for customers leasing a new vehicle? Please explain the financing options available.
Distributor Response:
3. What type of financing assistance do you provide customers (to include second chance financing opportunities)?
Distributor Response:
Cost/Pricing Information
Please respond with estimated pricing/fee information for your products and services to meet our requirements. The figures you provide will not necessarily reflect our specific requirements since they have yet to be determined; as a result, your pricing estimates will be considered as such.
1. Does your company offer dealer discounts and rebates available through manufacturers exclusively for the military community?
Distributor Response:
2. What type of incentives is your company currently offering the military community?
Distributor Response:
3. Explain your company's Full Disclosure Policy regarding educating customers on all applicable charges during the car-buying process.
Distributor Response:
4. What does your company feel is the best method for providing the lowest price to the customer? (For example: Markup over dealer invoice cost or discount from MSRP)
Distributor Response:
5. Price Protection Program: What are the specifics of your company's program regarding ensuring the lowest price guaranteed? The Exchange seeks a firm with the ability to provide price protection service for all sales transactions.
Distributor Response:
6. If your company is currently renting or leasing car display space, please indicate the average rent cost and the average number of cars displayed.
Distributor Response:
Certified Pre-Owned (CPO) Vehicles
1. Explain the current methods your company uses for the purpose of ordering new model vehicles and establishing inventory levels to reasonably ensure performance over a one-year period of time while depleting the current prior year models?
Distributor Response:
Inventory
1. Explain the current methods your company uses for the purpose of ordering new model vehicles and establishing inventory levels to reasonably ensure performance over a one-year period of time while depleting the current prior year models?
Distributor Response:
2. What methods would your company use to deplete inventory in the event an agreement with the Exchange is not renewed? How much advance notice would your company require to deplete the current on-hand inventory?
Distributor Response:
3. Provide standard industry methods for reducing inventory that is older than 18-24 months?
Distributor Response:
4. Does your company have any overseas or stateside warehouses or other resources that would allow you to store vehicle inventory to accommodate expeditious delivery of vehicles for both overseas and stateside customer delivery?
Distributor Response:
5. What is your company's average number of days required to deliver a custom-ordered vehicle to either a stateside or an overseas location?
Distributor Response:
Logistics Information
1. What methods would your company use to ensure stateside delivery is available to all gateway cities, near military installations? This explanation should include a description of the relationships your company has established with major automobile manufacturers and their US dealers.
Distributor Response:
2. What methods would your company use to ensure overseas delivery is available to customers at various military installations? This explanation should include a description of your ability to ensure compliance with all host country laws and customs.
Distributor Response:
3. Indentify the types of vehicle preparation (include any necessary customs inspections/conditioning) and concerns that must be considered when transporting inventory overseas. What method would your company implement to minimize vehicle damages and ensure a safe delivery?
Distributor Response:
4. How would your company determine and establish the best transportation rates for a contract with the Exchange?
Distributor Response:
5. How would your company determine and establish the best transportation rates for a contract with the Exchange?
Distributor Response:
6. Is your company familiar with the transportation rates published by the Military Surface Deployment and Distribution Command (SDDC)? How do your company's transportation rates compare to the rates published by SDDC?
Distributor Response:
Warranties
1. What types of overseas and stateside extended service warranties does your company offer?
Distributor Response:
2. What types of Vehicle Protection Packages does your company currently offer?
Distributor Response:
3. What types of customer education information has your company prepared to address vehicle repairs and authorized repair shops for both extended warranties and vehicle protection maintenance concerns? How has your company addressed assisting customers with warranty claims?
Distributor Response:
Provisions Clauses
Please indicate any issues or changes you would like to request in regards to the Special Provisions clauses, which is attachment number three to this RFI. Indentify which clause by title and paragraph, and whether or not you Accept, Modify or Reject the clause. In the case of Modification, please include your proposed language and reason for the change.
Distributor Response:
Current Business Model
The current Armed Services Exchange Regulations (ASER) states that Exchange may sell only U.S.-made automobiles, foreign name-plated vehicles with at least 75 percent U.S. or Canadian content, and motorcycles. Sales may be made for stateside delivery or for in-country delivery where permitted under the status of forces agreement. Indicate whether your company would be interested in selling new automobiles and motorcycles to Exchange patrons under the above criteria. Please provide a detailed explanation for negative responses.
Distributor Response:
Timeline Information
If your company is interested in being included in the potential Request for Proposal (RFP), please provide a proposed timeline of events and actions it would require for your company to establish sales offices in each of the countries mentioned earlier in this RFI. If you are proposing a different business model, please provide a proposed timeline to implement your solution.
Distributor Response:
Solicitation Information
If your company is interested in being included in the Request for Proposal (RFP), please provide pertinent contact information such as name, address, telephone and email information of the person that the RFP should be sent to.
Distributor Response:
Scott Rose, Category Manager I, Email RoseSc@aafes.com - Mark Minton, Contract Specialist, Email mintonsm@aafes.com
