Bid package enclosures include the following: Section 1. Standard Bid Requirements Section 2. Specific Bid Information Section 3. Required for All Bid Responses: 1) Bid Proposal Form 2) Concession Bidder Qualification Statement 3) Financial Statement in the amount of $10,000 4) Two personal reference letters 5) Two professional reference letters Section 4. Sample Contract
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 a mobile food concession at Keith J. Charters Traverse City State Park. The selected partner will offer a full menu of prepared/grilled food, pre-packaged food, beverages and ice cream. Bidders who submit a menu that does not provide full meal options will be considered an alternate bid. Due to East Bay Township ordinances, the selected bidder is required to obtain a township permit. Bids must be enclosed in sealed envelopes. Bid envelopes must be plainly marked on the outside, "Bid for Concession at Keith J. Charters Traverse City State Park." Other larger documents such as development plans must be enclosed and appropriately labeled. Only Sealed Bids properly addressed and identified can be accepted. Bids are due February 3, 2027 at 2:00 pm. Bid documents received after this date and time will not be accepted. Incomplete bids will not be accepted. Bids will be opened following the bid due date and time. You may submit your bid in the following methods:
1. United States Postal Service, Mail your bid to: DNR, Parks and Recreation Division Attn: Lori Green Lakeport State Park 7605 Lakeshore Drive Lakeport, MI 48059
2. Email your bid to: DNR-PRD-ConcessionBd@michigan.gov In the subject line state: "Bid for Keith J. Charters Traverse City State Park" to ensure that your bid is not opened prior to the bid due date and time. Failure to include this statement in your subject line may result in your bid being disqualified.
3. Hand delivery of bid submissions to Lakeport State Park may be allowed with prior approval of the Concession Manager at GreenL9@michigan.gov. To bid on this concession, you must complete the following:
4. Submit bid prior to February 3, 2027 at 2:00 pm
5. Bid Proposal Form
6. Concession Bidder Qualification Statement
7. Financial Statement in the amount of $10,000
8. Reference letters (see Questions 26 and 27)
9. Sealed envelope and marked as "Bid for Concession at Keith J. Charters Traverse City State Park"
Individuals needing mobility, visual, hearing, written or other assistance should contact the DNR, PRD, Concession Manager.
Bidder Selection: The bids will be primarily evaluated on business experience, financial stability and monetary compensation to be paid to the State; and, secondarily evaluated on other areas relating to the business and business operation and will include a review of the reference letters. 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: 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.
The bids will be primarily evaluated on business experience, financial ability and monetary payment to be paid to the State; and, secondarily evaluated on other areas relating to the business and business operation and identified as "secondary" in the "Bidder Qualifications Statement".
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.
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.
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.
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.
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.
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 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.
The Department of Natural Resources reserves the right to reject any or all bids.
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 $1,000. 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 Attn: Concession Manager PO Box 30257 Lansing, MI 48909
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
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.
Financial Statement: The Financial Statement is used to report financial information about a business. The amount required reflects a conservative estimate of what it will cost to set up and begin operations. The minimum Financial Statement 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. The Financial Statement requirement must include a statement of total financial availability available for opening and operating the concession and may include the following: a) Bank statement of checking and/or savings account b) Credit card statement showing available credit c) Certified inventory list which includes financial values of each item d) A letter from a financial institution reflecting funds available to the bidder for operation of a business Current concessionaires with at least 10 years of business experience in Michigan State Parks and Recreation Areas are exempt from this requirement.
Selection Process: Prior to awarding a concession contract, the Department takes the following steps: a) Competitive bid letting b) Bid Opening c) Review of reference letters of bidders who met the minimum bid requirements d) Department internal review of submissions (including at a minimum, Commercial Services & Land Use Program Manager, Park Manager, and District Supervisor) e) Department may request a presentation from all bidders to gain clarification where questions arise f) Notification of selection (approximately two weeks between bid and notification) g) Successful Bidders 10-day appeal period. An appeal will only be reviewed if it is based on any of the following four (4) criteria: 1. Information required by the Department for scoring the bid was not identified in the Invitation to Bid. 2. Different scoring values were used than those identified in the Invitation to Bid. 3. Error in the application of the appropriate score value. 4. Errors in arithmetic (calculation of the score total). h) Contract execution
Section 2, Specific Bid Information: Contract Requirements: 1) Liability Insurance (see Sample Contract Section XI.1.i.): a) General Aggregate: $1,000,000 b) Each Occurrence: $1,000,000 2) Workers Compensation Insurance pursuant to Sample Contract Section XI.2. 3) A minimum Contract Fee of 10% of Gross Sales pursuant to Sample Contract Section II.B.
General Information: Keith J. Charters Traverse City State Park, a popular urban park, is just 2 miles from downtown Traverse City. The 75-acre park is home to a modern campground, mini cabins and a day-use area on the east arm of the Grand Traverse Bay. The day-use area is located directly across U.S. 31 and features a quarter-mile of sandy beach, a small beach house and a picnic area. This is a fairly new concession. A trial based use permit was issued for operation of an ice cream truck for summers 2024 through 2026 in order to evaluate whether or not the service would be successful. Please note that during much of the trial period, the park was under construction.
Year Total Sales 2024 $37,733.87 2025 $24,157.70 2026 $7,664.51
Concession Facilities: Designated parking spaces in the day-use area will be assigned to the selected bidder. There is no provision of electric, gas or water for use by the selected bidder.
Products and Services: It is the expectation that a bidder's operations will not require Department oversight and/or involvement. The Department retains the right to approve the sale of all products and services and not award a bid, if the proposed operation would require burdensome oversight and/or involvement of staff. 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.
Minimum Season: The minimum season for this contract is identified in Sample Contract, Section II.6.
Equipment: The necessary and required equipment for this contract is identified in Sample Contract, Section IX.
Utilities and Telephone: The successful Contractor will be required to pay for certain utilities which are identified in Sample Contract, Section VI.E.
Maintenance Responsibilities: The required maintenance responsibilities, which will be required of the successful contractor, are identified in Sample Contract, Section VIII.
Inspection of Facilities: To arrange for a personal inspection of the facilities, contact the Park Manager at 231-922-5270.
Section 3, Bid Forms: Bid Proposal Form Parks and Recreation Division Michigan Department of Natural Resources Lakeport State Park 7605 Lakeshore Drive Lakeport, MI 48059 I offer to operate and maintain the mobile food concession at Keith J. Charters Traverse City State Park, for the convenience of the public, in accordance with the terms set forth in the Invitation to Bid and sample Concession Contract with a contract fee as follows: A percentage of gross sales in the amount of _______%, payable to the State, as identified in Sample Contract Section II.2. If selected, I agree, that within thirty (30) days of notification of acceptance of my offer, I will enter into negotiations with the Department of Natural Resources for a contract to furnish concession services as required, for the period specified within the sample Concession Contract, the provisions of which will be based on the Concession Contract template prescribed by the Department of Natural Resources and approved by the Michigan Attorney General. Attached are the following documents and reference letters to support my offer:
1. Bid Proposal Form 2. Concession Bidder Qualification Statement 3. Financial Statement in the amount of $10,000 4. Reference Letters 5. Other: __________________________________
By signature below, the Bidder certifies that all information provided is accurate, correct, and reliable and that any information provided contrary subjects this bid to disqualification and/or a violation, cancellation, or termination of an existing contract.
Concession Bidder Qualification Statement: The Bidder Qualification Statement lists detailed questions and required attachments. Responses are to be prepared and submitted in the order presented. Bids will be evaluated on primary criteria (business experience, financial ability, monetary payment to the State) and secondary criteria (organizational, staffing, marketing, menu, maintenance, bookkeeping, financing, legal/financial history, references, sustainability practices, etc.). Required items include signatures, reference letters (two personal and two professional), menu and equipment lists, financial statements, working capital disclosure, background reporting for employees where applicable, and documentation of compliance with insurance and permit requirements.
Section 4, Sample Contract: A sample concession contract is provided for informational purposes only. The selected bidder will be issued a contract upon contract award. The sample contract defines contract term (through October 16, 2033), contract fee payment terms (percentage of gross sales payable monthly, minimum 10% of gross sales), operating schedule minimums (Friday before Memorial Day to June 15 weekends 12:00 p.m. to 6:00 p.m.; June 16 to Labor Day daily 10:00 a.m. to 8:00 p.m.), insurance requirements, performance guarantee ($1,000), allowable products and services (prepared/grilled food, pre-packaged food, beverages, ice cream), sustainability requirements (eliminate Styrofoam, single-use plastics, etc.), POS and reporting requirements, sanitation and maintenance responsibilities, prohibited merchandise, employee conduct and background check requirements, notice of violation and liquidated damages schedule, and other standard contract terms and conditions.
The sample contract contains extensive operational, reporting, insurance, and compliance provisions that will govern the awarded concession. Individuals needing mobility, visual, hearing, written or other assistance should contact the DNR, PRD, Concession Manager.
