Attachment_06-B08-Example_Task_Order_Scope_of_Work_Post_Q_A_2_24_25_0001.docx

Prospectus Development Scope of Services Scope of Services Task Order No. EXAMPLE Contract No. EXAMPLE Prospectus Development Support Wonderfalls National Park Wonderfalls Lodge

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SCOPE: In accordance with the terms and conditions of the Contract, the consultant will perform the work of this task order for the National Park Service (NPS, Service) as described below.

CONFIDENTIALITY: All data, information, and deliverables provided to the consultant under this task order and/or developed by the consultant under this task order are the property of the U.S. Government and the consultant must keep it in strict confidence.

PERFORMANCE PERIOD: The consultant will provide work under this task order from the date of this task order through December 31, 2026.

PROJECT IDENTIFICATION: The work of this task order will consist of the services described below. The reference number for this project is the task order number. The NPS at its discretion may or may not exercise optional tasks and deliverables. If the NPS, through the Contracting Officer, chooses to exercise any number of the optional tasks and deliverables, the consultant is obligated to perform the optional tasks and deliverables.

1. INTRODUCTION

Wonderfalls National Park (the “Park”) requires business consultation services in conjunction with the development of a new prospectus for a concession contract for services at Wonderfalls Lodge offered within the Park.

1.1 Table of Contents

This Scope of Services describes the required services as shown below.

Scope of Services Table of Contents

1.2 Existing Concession Contract Overview

Table 1-2. Concession Contract Facts: General

· Food & Beverage:

· Wonderfalls Lodge Restaurant - Breakfast, lunch, and dinner-Number of Seats – 240 (168 in Dining Room, 72 on Patio) – CORE-MENU

· Wonderfalls Lodge Snack bar – Quick Serve and snacks - CMD

· Retail: Wonderfalls Lodge - Apparel, Souvenirs and gifts, books and educational materials as allowed by NPS Includes sales of Native handicraft. 2000 SF total retail space - CMD

· Transportation-Service from Wonderfalls Lodge to trailheads outside Wonderfalls Valley; open air tram tours of Wonderfalls Valley

Wonderfalls Lodge Restaurant-Family Casual Dining Wonderfalls Snack Bar-Quick Service Wonderfalls Lodge Gift Shop-Retail

1.3 Known Project Parameters

The Service estimates the effective date of the next contract to be no later than January 2, 2028. The Service assumes the prospectus will be WASO-level and require approval from the Regional Director and the Associate Director of Business Services (WASO Level).

Wonderfalls National Park was originally established on January 1, 1969, as a national monument because of its unusual scenic beauty and scientific interest and importance.

The Existing Contract requires lodging, food and beverage services, and retail sales. The campground is operated by the Park.

Concessioner provided lodging is in the Wonderfalls Lodge Motel units and historic Cabins with their exquisite décor and gas fireplaces. Visitation to the park has increased in the past several years and the Concessioner lodging operates at capacity during the peak season. In 2017, the Park allowed the Concession to open the motel in the winter season thus creating year round lodging in the park for the first time.

Visitors to Wonderfalls National Park have two dining options, including the Lodge at Wonderfalls Restaurant which has a 168 seat dining room serving breakfast, lunch and dinner in an family casual atmosphere and the quick service snack bar located in the same facility as the restaurant, serving grab and go hot and cold foods and drinks.

Retail merchandise is sold in the Lodge gift store The Existing Concessioner provides housing and food services for its workforce.

A list of scenarios the Service will require the consultant to consider (Service-Required Scenarios) is included under Task 5 Section 1 Baseline Buildup below.

Place of Performance Work under this task order will be performed on-site at Wonderfalls National Park, as well as the consultant’s facility.

Logistical Information Site Visit Travel:

The site visit is planned for four days during the week of May 20-22, 2025. May 19 and May 23 will be travel days. Wonderfalls National Park is one-hour outside of Las Vegas, Nevada.

Other Travel Locations:

The Scenario Meeting is tentatively scheduled for two days, October 6 and 7, 2025 with firm dates TBD. The likely location is Denver, CO. However for purposes of determining funding for this task, the consultant should assume the Scenario Meeting will be held either in Denver or at the Park, whichever is more expensive.

1.4 Document List

The Service will provide, where available, the following reference documents and materials either with this solicitation or after award.

Documents the Service provided with the solicitation:

1) Existing contract and all amendments and assignment documents

2) Personal Property List Documents the Service may provide after award:

1) Historical Annual Financial Report for the most recent 10 years

2) Previous completed Franchise Fee Analysis (FFA) Report

3) Most recent rate approvals and comparability studies

4) Visitor Service Classifications (if not provided in Table 1-2 above)

5) Annual Overall Ratings for the most recent 3 years

6) Park decisions related to NPS Required Scenarios

7) Documented Park management decisions regarding the operation

8) Monthly Park visitation statistics for the past 10 years (if not available on https://irma.nps.gov/Portal)

9) Park Visitor Satisfaction Surveys

10) List of NPS owned personal property assigned to the concessioner (if not included with the existing contract)

11) Public health evaluations for the most recent 3 years upon request

12) Environmental Audits for the most recent 3 years

13) Most recent structural fire report, if applicable

14) Most recent accessibility report, if applicable

15) GMP or other planning documents

16) Current DO35B worksheets, if applicable

2. ROLES AND RESPONSIBILITIES

The Contracting Officer (CO) is the only person authorized to make or approve any changes in any of the requirements of this task order. In no event will any understanding or agreement, contract modification, change order, or other matter in deviation from the terms and conditions of the contract/task order between the consultant and a person other than the Contracting Officer be effective or binding upon the Government.

The Contracting Officer’s Representative (COR) is responsible for executing the task order, providing subject matter expertise in coordination with the consultant on procedures, policy, law, and assisting the CO to ensure the consultant follows all applicable policies and regulations. The COR is typically an employee of the regional office. The COR is responsible for updating and tracking the project timeline, as the timeline may need to be adjusted throughout the task order.

The Service will have a Project Manager (PM) responsible for the overall success of this project. The PM is typically an employee of the regional office. This role serves as a central coordinator and communication point for the parties involved in the effort and serves as the primary point of contact for the consultant during the performance of the day-to-day tasks as identified in this scope. The PM will work with the COR to manage the requirements of this task order. The roles of PM and COR can be served by the same person.

The Service will have a Financial Analyst (FA) responsible for providing subject matter expertise on financial and hospitality issues and reviewing the financial components and deliverables of this scope of services. The FA is typically an employee of the regional office.

The Park will have a staff member, one of whose principal duties is concessions management and concessions operational and contracting issues. This person will act as Park Field Coordinator (PFC) for this project and will be available to the consultant to expedite this process.

The consultant will send all deliverables and correspondence regarding the technical aspects of this task order to the COR and will send copies of all deliverables and correspondence regarding the technical aspects of this task order to the PM.

The Service will have a Commercial Services Program (CSP) Project Manager (WASO-PM) responsible for communicating policy guidance from WASO, facilitating WASO policy and legal reviews, and acting as PM in the absence of PM, and COR, if applicable, as well as a CSP Final Analyst (WASO-FA).

Designated NPS Officials

The Service requires assistance to understand the market and financial feasibility of this concession contract and to develop a high-quality prospectus for solicitation of the business opportunity.

Table 3-1. Scope of Services Summary: Tasks

4. KEY PERSONNEL

The Government considers two individuals from the consultant team as Key Personnel. The consultant must designate a proposed project manager and lead financial analyst, by name, each as “Key Personnel” under this contract. Due to the size and complexity of the project, the consultant must provide two seperate individuals as Key Personnel.

The consultant will make every effort possible to maximize the stability and continuity of the Key Personnel positions. Furthermore, the consultant must provide a backup for each position, so that if there is a personnel change there are no delays or lapses in continuity.

The consultant will notify the CO and COR, in writing, no less than 4 weeks prior to replacing Key Personnel under this contract.

In the event a replacement is required, the consultant’s proposed candidate(s) for replacing the Key Personnel will possess qualifications equal to or superior to, those held by the incumbent in the areas of education, project management, or financial analysis experience in the hospitality industry, as applicable. Key Personnel replacements must be Service approved.

Unless agreed to by the Service, all Key Personnel replacements must visit the project site at no cost to the government.

5. TIMELINE

The timeline is included as Attachment 1 (Deliverable Timeline and Payment Schedule).

6. DELIVERABLE AND PAYMENT SCHEDULE

Attachment 1 (Deliverable Timeline and Payment Schedule) contains details regarding the specific activities and the major deliverables the consultant will complete under this Scope of Services. The Service and the consultant will establish a final timeline after the award of this task order that will replace the proposed timeline presented in Attachment-1. The COR must approve any deviations or modifications from this final timeline and the CO must approve additional deliverables and timeline extensions beyond the original or revised period of performance. Consultant must submit deliverables on due date by 4:00 PM EST. The Service based the payment schedule on an allocated percent per Task (CLIN). Each Task’s payment schedule will equal 100%.

7. QUALITY STANDARDS

Documents will be free of typographical and grammatical errors. Modeling workbooks and supporting analysis will be free of data entry and formula errors. Major content changes required due to consultant error will not result in an increase in the negotiated price, but the consultant will rectify to the satisfaction of the Service. Any number of significant errors will be cause for rejection and may affect the consultant’s performance evaluation. The Service expects the consultant to re-submit rejected deliverables within two business days.

The consultant must submit all deliverables that meet Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. Section 794d). The consultant must submit all deliverables in unprotected, editable electronic format (compatible with Microsoft 365 Enterprise) and hard copy when requested, along with all supporting documents, including spreadsheets. All documents and other work developed in the performance of this contract will be and remain the sole property of the Government and may be used on any other work without additional compensation to the consultant, with respect thereto, the consultant agrees not to assert any rights and not to establish any claim under the patent or copyright laws or any other law.

8. TRAVEL

Travel costs are under a not to exceed (NTE) travel contract line item number (CLIN). Consultants will submit documentation with the invoice to verify the actual costs incurred. The consultant will notify the COR and the CO of the need to add more money on this CLIN if they feel the amount will be exceeded. At no time will the total of all travel under this task order exceed the amount actually loaded against the travel CLIN. The consultant must invoice for travel within 60 days following the end of the travel. The Government will make reimbursements in accordance with FAR 31.205-46 and the Federal Travel Regulation (FTR).

9. FEE AND PAYMENT

The resulting task order will be Firm Fixed Price with each task defined herein representing one Contract Line Item Number (CLIN). The Government will pay the consultant the contract price as provided in this contract. The consultant may submit interim billings in accordance with provisions of the basic contract and the payment schedule indicated below, but cumulative value invoices may not exceed the value of completed tasks.

The Government will make payment after the consultant has provided the services specified in the task order and has submitted a proper and acceptable invoice. Payment requests must be submitted electronically through the U. S. Department of the Treasury's Invoice Processing Platform System (IPP). The IPP website address is: https://www.ipp.gov.

At a minimum, the invoice will include the following information:

· Name and address of consultant

· Invoice date

· Invoice number

· Contract number

· Contract Line Item Number (CLIN), description, and price

· Billing period for the services performed

· Description of the deliverable

· Travel expenses (if applicable) including copies of receipts

· Where payment is to be submitted

· Typed name, signature, duty title, and phone number of the individual certifying the invoice on behalf of the consultant If the consultant is unable to comply with the requirement to use IPP for submitting invoices for payment, the consultant must submit a waiver request in writing to the Contracting Officer with its proposal or quotation.

The consultant must not submit deliverable invoices until they are notified by the PM or COR that the deliverable is accepted, generally within a few days of receipt.

10. PRICING SHEET

Please complete pricing sheet attached to the RFP.

TASK 1: PROJECT DUE DILIGENCE

1. Introductory Meeting The consultant will participate in an introductory meeting or conference call with the COR, PM, PFC, FA and other NPS participants as appropriate. The introductory meeting will include discussion on the existing contract status, review the task order, discuss logistics for the site visit and other issues.

2. Advanced Information Request (AIR), Daily Fieldwork Schedule, Site Visit Presentation and Agenda AIR. The consultant will prepare an AIR, including a cover letter addressed to current concessioner, introducing themselves, explaining the purpose of the AIR. The consultant must provide the AIR and cover letter to the Service for approval. The AIR will include the following information developed or held by the existing Concessioner needed by the consultant to perform its responsibilities under this task order:

· Personal Property List (if not provided with RFP).

· Support facilities necessary for the operation outside of NPS facilities.

· Current operating schedule.

· Description of staff (# of employees, seasonal/permanent).

· Management points of contact and staffing structure.

· Annual gross receipts for alcohol sales by department (food & beverage and retail) for the last 3 years and provide the number of alcohol licenses.

· Consolidated, departmental and operating unit monthly profit and loss statements.

· Annual/monthly utilization statistics and transaction data.

· Payroll information (Note: Due to Executive Order (EO) 13658 –Minimum Wage for Contracts as amended by EO 13838 the consultant must request information from the concessioner to integrate minimum wage law requirements into the financial projections.).

· Impact of Federal and state minimum wage laws, policies, or regulations on existing contract

· Planned capital improvements and personal property replacements.

· Status of existing Concession Facility Improvement Program (CFIP), Repair and Maintenance Reserve (RMR), and Component Renewal Reserve (CRR) assigned spending.

· Special event statistics for last 3 years including: numbers of events, number of visitors served, and gross receipts.

· Description of resource sharing with parent company.

· Utility expenses by location/utility.

· Employee housing description and pricing schedule.

· Customer comments.

· Specifications and Certification documentation for transportation providers (e.g., vessels)

· Description of other business that is not part of the existing contract.

· Information needed to complete the Insurance Requirements Request form (see Task 5 for submission details and Attachment 2 Insurance Requirements Request form for required information).

Daily Fieldwork Schedule. The consultant will prepare a daily fieldwork schedule by team and location (if applicable) to provide the Park and the Concessioner an understanding of the movements and activities of the consultant team.

· The consultant will develop this schedule in conjunction with the PM and the PFC. Once the NPS has approved the schedule, the PFC will coordinate with the Concessioner for any final adjustments, which the consultant will update.

· The PFC will coordinate sending the AIR and Daily Fieldwork Schedule to the concessioner and introduce the consultant to the concessioner. The COR and the consultant will define a communication plan between the consultant and the concessioner.

Site Visit Presentation and Agenda. The consultant will prepare a site visit kick-off meeting presentation and agenda. This presentation will:

· Identify the consultant’s team composition and their respective individual responsibilities.

· Describe the overall objective of the site visit.

· Present follow-up questions addressing information gaps related to the consultant’s analysis (e.g., further information on CFIPs, LSI, utility rates, etc.).

3. Site Visit: Kick-Off Meeting To ensure excellent due diligence and resulting analyses, the Service requires the roles defined as Key Personnel (the project manager and the lead financial analyst) to visit the park and, whenever possible, experience the services in operation.

a. The consultant will facilitate and attend a kick-off meeting at the Park, including presenting the kick-off meeting presentation.

b. The consultant will coordinate attendance of appropriate sub consultants as determined by the requirements of the scope of work. The COR, PM and PFC will coordinate attendance of relevant NPS staff.

c. At the COR, PM and PFC’s discretion, the Concessioner may attend part of the kick-off meeting. Concessioner staff will accompany consultant teams when conducting facility and personal property assessments to provide access and relevant information.

4. Site Visit: Interviews The consultant will interview in person or by telephone the following individuals or groups. The Service expects the consultant to use its hospitality and professional expertise and judgment in determining interview questions.

a. Existing Concessioner General Manager and other key management staff to discuss operating challenges and opportunities.

b. Concessioner employee responsible for financial matters (i.e., Comptroller or Chief Financial Officer) to discuss financial trends, challenges and opportunities.

c. Concessioner employee responsible for facilities management and maintenance (i.e., Chief Engineer) to discuss facilities challenges and opportunities.

d. The Park Superintendent and appropriate management team members and staff, to the extent necessary and desired by the Park.

e. Local area Chamber(s) of Commerce, Economic Development Agencies, Destination Marketing Organizations, and Tourism organizations to determine changes in trends affecting the local and regional marketplace.

f. Local Park partners, such as the Cooperating Association or Friends Group, adjacent park neighbors, to determine additional trends in tourism in the local and regional marketplace.

5. Site Visit: Competitive and Comparable Facilities To support Task 2 and 3 (if applicable), the consultant must assess the supply of competitive and comparable facilities within the local, regional, and national marketplace and collect operating metrics required to complete the tasks. Examples of metrics to be collected include, but are not limited to, lodging occupancy, average daily and posted rack rate by month/year, segmentation of accommodated lodging demand, food and beverage average checks and covers by meal period, retail sales per square foot, and additional guest services such as access to recreational boat services and tours, etc.

6. Site Visit: Support Facilities Analyses The consultant will assess the requirement, supply, and availability of support facilities that may be required to operate the services under the draft contract. Compare this assessment with hospitality businesses with similar complexity, (e.g., remoteness, size, service diversity, and seasonal operational staging).

7. Site Visit: Photographs The consultant will take multiple exterior and interior photographs of the concession operation for use in the Business Opportunity section of the Prospectus.

8. Site Visit: Exit Briefing The consultant will provide an exit briefing. The exit briefing will contain, at a minimum, the following items:

· Deliverable Timeline. In consultation with COR, PM and PFC, the consultant will revise the Deliverable Timeline (initially developed by NPS and included as Attachment 1 to this scope) to reflect issues discovered during site analysis and fieldwork.

· Itinerary recap including who was interviewed and when.

· A summary of findings/issues that may affect the draft contract solicitation and award.

· Proposed operational and service improvement concepts (consultant recommended scenarios).

· Preliminary conclusions.

· Proposed next steps.

The consultant will coordinate attendance of appropriate sub consultants as determined by the requirements of the scope of work. The COR, PM and PFC will coordinate attendance of relevant NPS staff.

TASK 2: MARKET ANALYSIS

The consultant will conduct a market analysis to assist in understanding current and developing future demand expectations for services offered in the draft contract. In this deliverable, the consultant will present to the NPS how the in-Park and out-of-Park markets affect/will affect existing and future concession operations.

To the extent that the PFC or the concessioner provides utilization data and other information, the consultant will validate it and may use it in the course of its analysis, but the consultant must develop assumptions based on its professional expertise.

The market analysis will consist of, at minimum, the following:

1. Section 1: Market Overview Summarize the national, regional, and local markets. Data will include, at a minimum, the following:

· Economic profile and trends.

· Non-Park visitation and tourism.

· Relevant industry trends and visitor spending.

· Recommendation of whether a competitive market exists for required services. 36 CFR 51 requires the Service to use a competitive market declaration (CMD) for setting rates unless the Director determines that market forces are not sufficient to determine reasonable and appropriate rates. The consultant will provide a recommendation and narrative justification as to whether a competitive market exists for each required service. A service type may have more than one recommendation. For example, the consultant may recommend that a competitive market exists for the hotel rooms of a lodging operation, but that one does not exist for the cabins.

· Identification of the competitive set of operations providing similar services and other competing major attractions.

· Current and future visitor expectations.

· Narrative describing how the in-Park and out-of-Park markets affect/will affect existing and future concession operations, including potential changes or new opportunities that may shift the business opportunity.

Summarize Park visitation and trends.

· Include a park visitation trend line for the most recent 10 years and projected 5 years out

· Discuss reasons for difference in visitation for both recent and projected timelines (weather, closure, tourism conditions, government policies, etc.)

· Explain any anomalies. For instance, a dramatic drop in visitation for a prior year could be explained by factors such as wildland fire, road construction, general tourism conditions, economy, global pandemics, etc.

· Evaluate and, to the extent possible, quantify the likelihood and effects of potential future external events such as, natural and environmental factors, new legislation, changes in Park standards (including planning processes) etc. on the concession opportunity.

· Identify in-Park and Out-of-Park competition by service.

2. Section 2: Operational Performance Overview Analyze market, visitation, and concession utilization data to draw conclusions about the performance of the existing and future concession operation. Analysis of data will include, at a minimum, the following:

1. Operational Performance. Provide utilization statistics for each service performed, by location if available, for the last three years and analyze how each service compared to:

· Competitive services in the market.

· Competitive services in the Park, including CUAs, Cooperating Associations, and cultural demonstrations.

· Industry standards.

2. Visitation. Describe how visitation to the local and regional market and the Park affect utilization of concession operation.

3. Seasonality. Determine seasonality and how it affects utilization and compare to the market and industry standards.

4. Proposed changes to operation: Describe the future demand market for additional services or changes in services corresponding to the scenarios the consultant must analyze as part of Task 5. The scenarios will take into consideration the market and any market challenges.

5. Other services in the market. Identify and describe other services the market provides that the concession operation does not provide. Provide recommendations if these services should be included in the concession operation.

6. Developments. Identify and describe the effects of any planned out-of-Park and in-Park developments that might affect the draft contract.

7. Amenities. Compare the amenities, including any soft goods and personal property, of the competitive set (as identified in Section 1) to the concession operation and provide recommendations of changes needed to meet and exceed visitor expectations. The consultant must account for these changes in Task 5.

3. Section 3: Recommendations and Conclusions Based on its analyses, the consultant will detail its recommendations that will become the basis for projected future demand in Task 5. For any recommended changes to the concession operation, the consultant will consider the ancillary requirements, such as employee housing, utilities, traffic, parking, transportation, and solid and hazardous waste generation.

TASK 3: RATE STUDY

The consultant will undertake an analysis to develop estimated rates for certain services under the draft contract. In most cases, this will involve a comparability study, although a financial analysis or other method may be requested. The consultant must review rate methods descriptions and guidance in the most current version of the NPS Rate Administration Guide (currently the February 28, 2017 version) located on the external website here: https://www.nps.gov/subjects/concessions/rate-administration.htm. Additional descriptions of how the study shall be conducted for this scope of work are provided in the following sections.

At a minimum, the services in the study will include:

Food and Beverage – Family Casual - Core Menu If the consultant develops scenarios (as part of Task 2 and 5) with consultant-suggested new or altered services, the consultant must include those services in the study using the comparability process and competitive market declaration.

For services not listed above, the consultant will develop the estimated rates as part of its buildup of future financial performance described in Task 5.

1. Comparability Process The purpose of the comparability method is to correlate the concession operation’s rates to those in the competitive marketplace. By establishing approved rates for the concession operation based on a review of similar services operating under similar conditions, it is possible to ensure that the concession operation’s rates are comparable. Establishment of the concession operation’s approved rates under this method involves (1) identifying comparable businesses that are similar to the concessioner’s operation and (2) analyzing the concessioners’ rates against the rates of those comparable businesses, taking into consideration operating differences.

Develop a List of Potential Comparables The consultant will develop a list of potential comparables and submit a draft list to the PM, PFC, and COR for review. The list will include approximately seven to ten potential comparables per service type. In some situations, the consultant may need more potential comparables if a service type has multiple categories that require separate potential comparables. For example, a lodging operation with both hotel rooms and cabins will need more potential comparables than an operation with just cabins.

There are certain types of properties that are not ideal comparables:

· Other Government Agency-Managed Properties. The consultant can use other Government agency-managed commercial operations as comparables; however, using them is not preferred because there is a potential that these facilities are operating under conditions that prevent them from operating competitively. The consultant should only use other Government agency-managed properties when the consultant cannot find an adequate number of acceptable businesses that are not Government-managed. The consultant may only use government agency-managed properties as comparables if their rates are established competitively (not managed by the government agency).

· Operations from Other Countries. The use of commercial operations from other countries as comparables is also allowable but is not preferred. The consultant should only use this method when it cannot find an adequate number of domestic comparables. While non-domestic facilities may provide similar services in similar environments and therefore seem like reasonable comparables, they are subject to factors that could make them unsuitable. These factors may include different types of clientele, visitor service expectations, visitation, occupancy rates, operating and regulatory environments, financial exchange rates, local economies, and other factors. In all cases when using non-domestic comparables, the consultant must consider the foreign exchange rate in the rate determination.

· Operations Located in Park Inholdings. The use of commercial services located in Park inholdings as a comparable is acceptable. Such inholdings may be within the subject park or located within another park. The consultant must ensure that the property’s rates are established competitively and determine whether its presence within a park inholding imposes operating requirements that prevent the business from acting like an unencumbered commercial operation.

· Prohibited Comparables. Other NPS concession operations or operations owned by the existing concessioner may not be used as potential comparables.

· Comparables Outside of the Local Area. Sometimes it may be necessary for the consultant to use comparables that are outside of the local area because comparables are rare. In this case, it is acceptable for the consultant to collect the information for these potential comparables remotely via internet research and phone interviews for comparables outside of the local area. For this analysis, the local area is defined as 1 hour from the concession operation. No more than 25% of potential comparables should be outside of this local area.

Conduct an In-Depth Analysis of Actual Comparables After completing the comparability process using the Rate Administration Guide, the consultant must thoroughly analyze the information, including Extra Quality Features (EQFs) and other factors, to determine where the concession operation falls within the range of comparables. Given the uniqueness of each concession operation and the local market, the consultant must determine the most appropriate way to quantify this data to determine where the concessioner’s rates should fall. Typically, this is done by assessing the EQFs and the overall quality of the concession operation compared to its comparables.

· EQFs. The consultant must complete the EQF worksheet for each service type (included as Attachment 2). The EQFs included on the worksheet are recommendations- the consultant may add or delete features as appropriate. After completion of the EQF worksheets, the consultant must determine where the concession operation fits within the range of quality and type of services or facilities offered by the comparables. To make this determination, the analysis must compare, measure, and appraise the level of EQFs in both the concession operation and the comparables’ operations.

Given that not all EQFs provide equal value, the consultant must determine a weighting scale for the EQFs to determine which factors provide more value and, therefore, justify a higher rate. For example, a fireplace in Michigan would typically be weighted higher than a fireplace in Texas. Facilities, services, and amenities that have the greatest influence on room rates in the market are given a higher weight. Facilities, services, and amenities that have the least influence are given a lower weight. It is up to the consultant to determine the weighting system used and how it correlates to the concession operation’s approved rates.

· Quality. In addition to the number of amenities offered, the consultant must account for any differences in the overall quality of the concession operation compared to the comparables. If the concession operation and comparables are of similar quality, the consultant does not need to perform this step. If they vary, the consultant must determine and explain in the narrative an appropriate markup (or down) to reflect where the concession operation falls within the comparables.

Collect and Analyze Rate Information The consultant must compile rate information for each comparable. When comparables offer various rates for the same offering (i.e., lodging room rates), the consultant must use the peak rate for comparison. The peak rate is considered the highest rate the operation charges for the season, not including special events, holidays, discounts, or other restrictions. In lodging, this may be considered the “rack rate.” If a comparable is unwilling or unable to provide its peak rate, “rate shopping” is necessary. This requires searching the comparables via an online reservation system (or calling the reservation desk) to determine the peak rate. It may be necessary to search a variety of days (weekdays and weekends) and seasons to determine an accurate peak rate.

It is important to note that the consultant must not average rates to find the approved rate. Rather, the approved rate must fall within the range of rates of the properties that the concession operation is most comparable to and reflect the EQF and quality analysis performed above. The rate recommendation may include rates lower than the currently approved rates if appropriate.

Provide the Rate Recommendation to NPS.

The consultant must document the rate recommendation and include an executive summary of the process. The rate recommendation document must include at a minimum:

· Potential comparables used

· Comparability matrix

· Actual comparables selected, including the criteria for each specific type of facility or service

· Description and photos of actual comparables

· The methodology used to determine where the concession operation fits in the range of comparables using EQFs and overall quality

· Comparables’ rates and recommended concession rates While most rate studies are completed using the comparability process, the project team may request the consultant use an alternative method, such as financial analysis or core method, described below.

2. Other Rate Methods For guidance on completing a rate study using another required rate method such as the core method, competitive market declaration or financial analysis, the consultant must refer to the current Rate Administration Guide.

TASK 4: PERSONAL PROPERTY VALUATION AND REPLACEMENT SCHEDULE AND ESTIMATES FOR PERSONAL PROPERTY IMPROVEMENTS Task 4 consists of two sections, Personal Property Valuation and Replacement Schedule and Cost Estimates for Personal Property Improvements. The Service may require the consultant to conduct analysis for both or only one of the sections, depending on the requirements of this Task Order.

1. Personal Property Valuation and Replacement Schedule The consultant will develop and deliver an assessment of the current condition and remaining useful life of all concessioner-owned and government-assigned personal property for a period of 20 years from the expected effective date of the draft contract. The consultant will determine the appropriate replacement schedule for this personal property for 20 years from the expected effective date of the draft contract. For the purposes of Task 4, personal property includes, but is not limited to personal property used or held for use in concession operations including but not limited to furniture, equipment, machinery, vehicles, and any fixtures that are not real property fixtures as defined by 36 C.F.R. 51.51.

Inventory (merchandise) and supplies are not included in the Task 4 valuation and are addressed under Task 5 (if applicable).

The consultant will determine the value of personal property required to begin operation of the required services in the draft contract. The Service requires the consultant to use its expertise to determine what personal property a prudent operator (the next concessioner) will purchase from the existing concessioner, provide an estimated dollar value for that personal property and an estimated value for what the next concessioner will purchase new. The Service is interested in using lower-cost options to complete this task, such methods which don’t require appraisers on-site or methods utilizing industry standards to develop certain costs.

2.1 Research and Site Work. The consultant will:

· Review the existing contract and Annual Financial Reports (AFRs) and other available information to become familiar with the personal property in use by the existing concessioner.

· Discuss with the Concessioner the personal property used or held for use in concession operations.

· Conduct an on-site inspection and create an Excel-based list of personal property used or held for use in concession operations, and validate this list against any list provided by the existing concessioner, adding and deleting items as necessary.

· Reconcile the personal property list developed through the on-site inspections with the government-owned and assigned personal property, as shown in the existing contract or provided by the PM and PCF.

· Using the previously developed Excel-based list, identify each item on the list as either concessioner- or government-owned and ensure that the list may be filtered by owner.

· Verify the correct item location names with the PFC.

1.2 Analysis. The consultant will:

· Determine the estimated fair market value of all concessioner-owned personal property used and/or needed for baseline concession operations on the expected effective date of the draft contract.

· Prepare a draft replacement schedule and cost analysis for all concessioner- and government-owned personal property used and/or needed for concession operations for a period of 20 years from the expected effective date of the draft contract.

· Project future depreciation and inflation as needed to derive values for the start of the draft contract, the replacement schedule for the draft contract, and the ending value of the draft contract.

· Clearly define all assumptions regarding depreciation and inflation adjustments and explain how adjustments and rates were determined, selected and applied.

1.3 Valuation and Replacement Schedule Worksheets. The consultant must analyze and appraise all personal property associated with the operation (concessioner-owned and government-owned and assigned) and present the Service with a detailed valuation report. At a minimum the valuation and replacement schedule worksheets will contain the following information for each item listed:

· Item name

· Item description (including material, dimensions and any other distinguishing characteristics that will help the NPS identify the item)

· Item location (as confirmed by PFC)

· Quantity of Items

· Manufacturer (where available)

· Model # (where available)

· Condition of Item(s)

· Year purchased (where available)

· Original Useful Life

· Remaining Useful Life (based on condition)

· Replacement Cost New (at time of inspection)

· Replacement Cost New (at start of draft contract and for subsequent three years)

· Replacement Cost New (at time of estimated replacement(s))

· Fair Market Value (at time of inspection)

· Fair Market Value (at start of draft contract and for subsequent three years) The consultant will group items into categories that allow the NPS to understand the valuation. As such, the NPS requires the following:

· Personal property will be reported separately or with like items. For example, an item might be “tables” with a quantity of 10, and another item might be “chairs,” with a quantity of 20 but an item cannot be “assorted tables and chairs” or “10 tables with 20 chairs.” Another example could be a “3-piece down comforter and sham set” with a quantity of 200 and a value of $10,000.

· An exception to the above is where there is a logical group of small items whose current fair market value does not exceed $1000. For example, an item might be a “Lot of Miscellaneous Garden Tools” valued at $500, or a “Lot of Kitchen pots, pans and utensils” valued at $900.

1.4 Summary Worksheet for Personal Property. The workbook will contain separate summaries for Concessioner-owned and Government-owned personal property that include the following for each summary:

· Replacement Cost New (at start of draft contract and for subsequent three years).

· Fair Market Value (at start of draft contract and for subsequent three years) for Concessioner-owned personal property only. Highlight those items the next concessioner may purchase from the existing concessioner.

· Provide a total for the combination of purchased from existing concessioner and purchased new.

1.5 Summary Worksheet for Vehicles, Vessels, and Aircraft. The worksheet will contain a summary tab that contains the following information per type of item:

· Vehicles

i. Type

ii. Gross vehicle weight (GVW) when applicable

iii. Vehicle capacity

iv. Number of vehicles

v. Description of use

· Small boat rentals

i. Type

ii. Size (in feet or horsepower)

iii. With/without motor

iv. Maximum passenger capacity

· Water transportation vessels

i. Number or name

ii. Year built

iii. Fair market value

iv. Weight/gross tonnage, length and width

v. Maximum speed in knots

vi. Maximum fuel capacity

vii. Maximum passenger capacity

· Aircraft

i. Number or name

ii. Type

iii. Year built

iv. Maximum speed

v. Maximum fuel capacity

vi. Maximum passenger capacity

2. Cost Estimates for Personal Property Improvements The Service requires the consultant to provide estimates of personal property improvements. Personal property improvements may include any or all of the following, depending on the requirements of Task 5

· personal property and replacement schedules required to support applicable CFIPs.

· personal property and replacement schedules required to support new services.

· personal property and replacement schedules required to improve and/or upgrade the required or authorized services of the draft contract. This includes any recommendations for changes to personal property to meet and exceed visitor expectations from Task 2 (Market Analysis), where the consultant analyzed the soft goods, amenities and services of the appropriate competitive market and made corresponding recommendations for changes to personal property.

For all required improvement types, the consultant must include investment estimates and replacement schedules. See Task 5 for further requirements. The consultant will submit the draft Excel report with all formulas intact and columns set up to sort and filter, as well as an accompanying text narrative that describes all methodologies, data sources and assumptions.

TASK 5: FINANCIAL INVESTMENT ANALYSIS AND SCENARIO MEETING

Introduction The goal of the Financial and Investment Analysis and Scenario Meeting Task is to determine financial feasibility of the draft contract including, but not necessarily limited to, the term of the draft contract, feasibility of various scenarios, and a recommended minimum franchise fee. Ultimately, the NPS is responsible for determining the minimum franchise fee that will be included in a Prospectus for the concession operation. The Franchise Fee Analysis serves as the basis for the NPS decision. All potential concessioners submitting an offer to the prospectus must agree to pay at least this minimum fee to the NPS during the term of the draft contract.

To develop the recommended minimum franchise fee the consultant will:

· Review the historical financials and compare existing concessioners’ financial information to industry standards.

· Develop a buildup of future financial performance.

· Create the framework to evaluate operating and investment scenarios.

· Use investment analysis to determine profitability.

The development of the franchise fee is controlled by statutory provision, Public Law 105-391, Section 407, which specifies that the franchise fees of concession contracts will be determined by consideration of the probable value of the privileges granted by the contract. The law goes on to base probable value on the reasonable opportunity for net profit in relation to capital investment and the obligations of the contract.

In determining the franchise fee, the consultant will develop the concession operation’s anticipated revenues, expenditures, cash flows, and investments for the term of the draft contract with the assumption that the concessioner is a reasonable business entity who operates in a competitive marketplace. The franchise fee will likely change based on scenarios considered, and the final franchise fee will represent the operations with the selected scenarios.