I downloaded and reviewed NYC's grocery store RFP... as someone who has built biz's and...
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I downloaded and reviewed NYC's grocery store RFP... as someone who has built biz's and bought a lot of food... wow.
Forget for a moment whether or not the govt should own a grocery store. Let's review the doc instead.
Here you go... /1
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NYC strongly prefers bidders who commit to all 5 stores. But 3 of the 5 sites haven’t been identified. Bidders are supposed to price unknown stores in unknown neighborhoods by assuming they’re “about 15,000 sq ft.” Absurd.
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Bidders get preference for operating all 5 stores, presumably b/c scale lowers costs. But NYC awards each store separately, so an all-5 bidder may win only 1. They want scale pricing while refusing to award scale.
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The stores must use a “limited SKU” model. They must also carry full grocery departments, household goods, culturally specific products, plus kosher, halal, vegan, gluten-free, dairy-free and diabetic options. Pick one.
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The RFP says stores won’t have deli counters or on-site food prep. Then its Core Basket includes chicken salad, egg salad, potato salad, fruit salad and other deli-prepared foods. So, a deli w/o a deli.
Oh... you're going to ship them in every day prepared. Gotcha...
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NYC chooses and pays for the design, equipment, refrigeration and fitout. The operator pays utilities, maintenance, cleaning and security. So NYC makes the capital decisions while someone else pays for the consequences.
That's how they control the goalposts.
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The “best” bid promises 30% discounts, best-in-class wages/benefits, local sourcing, sustainability, community programs and full-time jobs. Then 20% of the score goes to whoever claims they need the least subsidy. Lowballing is the strategy.... and then cost overruns are guar.
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Core Basket discounts must be universal “sticker prices,” not promotions. Then the operator must create a membership card to “implement the discount program.” Which is it? Universal shelf price or an ID card system -- btw, also says it's available to all people...
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and it doesn't even properly target their goals b/c the subsidy isn’t targeted. No means test. Anyone can shop there. So taxpayers will subsidize groceries for affluent shoppers who happen to live nearby, while needy families elsewhere get zero.
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I always thought that this was a terrible idea. They could much better help people with $$ and hey, there are already programs that they could expand.
But after reading -- now I know it's a ridiculous idea.
We have an efficient system... just change the outcomes.
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so naturally one asks -- why would they want to build crappy grocery stores that have conflicting goals and will be mismanaged? Because either that's the goal... or else they have no idea how to actually craft an RFP or run a business.