HMNF_ManisteeRiver_Livery_Prospectus.pdf

PROSPECTUS

AN OPPORTUNITY FOR

LIVERY OUTFITTING (CANOES AND KAYAKS) ON THE

MANISTEE RIVER and LITTLE MANISTEE RIVER

CADILLAC/MANISTEE RANGER DISTRICT

HURON-MANISTEE NATIONAL FORESTS

OFFERED BY:

USDA FOREST SERVICE

HURON-MANISTEE NATIONAL FORESTS

SUPERVISOR’S OFFICE

1755 SOUTH MITCHELL STREET

CADILLAC, MI 49601

For Further Information Contact:

Katie Racey– (231) 745-5848 or

Kristen Thrall – (231) 775-5023, 1 + ext. 8756

November 10, 2016

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Prospectus Opportunity for Outfitting on the Manistee and Little Manistee Rivers, Huron-Manistee National Forests

TABLE OF CONTENTS

I. INTRODUCTION AND PURPOSE

II. GENERAL DESCRIPTION OF AREA

Manistee River

Little Manistee River

III. OFFERING

Needed Services

Priority Use and Watercraft Limits

Service Days and Fee to Government

Trip Requirements

Expected Client Numbers and Sales

IV. SPECIAL CONSIDERATIONS

Conditions

V. OTHER PERMIT AND OPERATION REQUIREMENTS

Authorities

Special Use Permit Requirements

VI. SUBMITTING THE PROPOSAL

Proposal Required Information

VII. SELECTION PROCESS AND POST-SELECTION REQUIREMENTS

Evaluation Criteria

VIII. DOCUMENTS REQUIRED PRIOR TO PERMIT ISSUANCE

Post-Selection Requirements

LIST OF APPENDICES

Appendix A: Vicinity and Area Maps

Appendix B: Sample Special Use Authorization for Outfitting (Livery) FS-2700-4i

Appendix C: Sample Performance Evaluation Form

Appendix D: Sample Operating Plan

Appendix E: Forest Service Form FS-6500-24, Financial Statement and Forest Service Form FS- 6500-25, Request for Verification

Appendix F: Checklist

Appendix G: Sample Business Plan Outline

Appendix H: Sample Use and Gross Report

Appendix I: Sample Estimated Fee Determination Sheet

Appendix J: Requirements for Identification

I. INTRODUCTION AND PURPOSE

The USDA Forest Service, Huron-Manistee National Forests, is soliciting proposals from interested parties to provide livery outfitting services (canoeing and kayaking) for the Manistee and Little Manistee Rivers. The forests intend to issue one or two special use authorizations (permits) as a result of this offering.

Seven potential applicants have contacted the Huron-Manistee National Forests requesting to provide commercial boating services on the Manistee and Little Manistee Rivers. Competitive interest requires that the Forest Service issue a prospectus and evaluate offers to determine how the available permit will be allocated among competing applicants.

This prospectus is intended to solicit proposals from interested parties who intend to provide commercial outfitting services (canoeing and kayaking) on a recurring basis on the Manistee and Little Manistee Rivers (Appendix A: Vicinity and Area Maps). The objective in permitting this activity on National Forest System lands is to meet a public need, to provide for the health and safety of river users, to protect natural resources, and to provide a quality recreation opportunity for the public.

One or two selected applicants will be authorized through a special use permit to provide commercial outfitting and guiding services on segments of the following two rivers: the Manistee River and the Little Manistee River. The permit holder is an agent of the Forest Service who provide services to the public, protects human health and safety, and helps the Forest Service attain management objectives.

Special use authorizations awarded by this prospectus will be authorized through a two-year permit. The authorization may be extended up to 8 more years after acceptable performance for the first 2 years.

All prospective applicants are advised to read this prospectus and sample special use permit carefully (Appendix B: Sample Special Use Permit FS-2700-4i). There are a number of requirements for insurance, as well as operations and maintenance tasks with which an applicant must comply. Permits will not be issued if, in the judgment of the Forest Service, a highly qualified pool of applicants is not available. The Forest Service reserves the right to reject any or all applications if the applications do not best serve the needs of the public.

All applicants must submit, in writing, a proposal that includes the information listed under section VI. SUBMITTING THE PROPOSAL.

II. GENERAL DESCRIPTION OF AREA

The Huron-Manistee National Forests headquarters is located in Michigan’s Lower Peninsula in Cadillac, Michigan. The Cadillac/Manistee Ranger District office is located in Manistee, Michigan.

Manistee River Twenty-six (26) miles of the Manistee River, from Tippy Dam to Michigan State Highway 55 bridge, was designated a Wild and Scenic River in 1992 when Congress passed the Michigan

Scenic Rivers Act (PL 102-249). See Appendix A for a map of the river area and all authorized access sites.

The Manistee Wild and Scenic River is known for beautiful scenery, excellent fishing, and a variety of other recreation activities. In the spring and fall, high numbers of anglers are attracted to the superb steelhead and salmon runs. Within the recent past, the primary recreational use during the summer months has shifted away from walleye and pike fishing toward the increasingly popular paddlesports (i.e. canoeing, kayaking, and paddle boarding). The river and the associated corridor supports a variety of other recreation uses including wildlife viewing, hiking, and hunting.

The Manistee River has clear water and a slow, meandering flow. Isolated stands of red pine are intermixed with hardwood stands of oak, maple and aspen. The diversity of deciduous tree species creates dramatic changes in the appearance of the river in the fall, as leaves change color.

Very little private development is visible from the river.

Crowding on the Manistee River is primarily an issue during seasonal salmon and steelhead runs, when fishing pressure is the greatest. Recreation use mid-week or outside of salmon and steelhead season is relatively low.

Recreation use varies from moderately light during the week to extremely heavy on holiday weekends. Almost the entire stretch of the river is easily available to all types of users.

Manistee River Permit Area The Manistee River permit area includes approximately 23 miles of the Manistee River between Red Bridge and Rainbow Bend. Along this stretch, up to five commercial livery outfitters and up to thirty-two commercial fishing guides provide trips to the public. The permit area is located within Manistee County, Michigan at the following access sites:

Red Bridge Access Site (T22N, R13W, Section 22)

High Bridge Access Site (T22N, R14W, Section 28)

Blacksmith Bayou Access Site (T22N, R14W, Section 32)

Bear Creek Access Site (T22N, R15W, Section 22)

Rainbow Bend Access Site (T22N, R15W, Section 20)

This river segment (from Red Bridge to Rainbow Bend) has been authorized for commercial outfitting and guiding since 1994. The boating season is normally from early May through the middle of October. Commercial use on this segment is limited to 58 commercial watercraft per day for liveries and 55 watercraft per day for fishing guides (1996 Manistee National Recreation River Management Plan).

The following opportunities are provided on National Forest System lands within the Manistee River corridor:

Red Bridge: This site offers a boat launch, interpretive signage, parking lot, vault toilet, drinking water, and four campsites. It serves as the primary point of access for a collection of popular dispersed campsites along the river and the backwaters of the Tippy Dam. This site also serves as a starting point for hikers using the Manistee River Trail/North Country National Scenic Trail loop.

Suicide Bend: This walk-in angler access site is adjacent to the Michigan Department of Natural Resources (MDNR) Tippy Dam Recreation Area (north side of the Manistee River) and consists of a parking lot, footpath, interpretive signage, stairway, and an angler walkway at the toe of the slope along the river. There are no user-fees associated with this site and the site is not maintained year round.

Sawdust Hole: This walk-in angler access is located on the north side of the river and consists of 8 designated campsites, a vault toilet, interpretive signing, garbage service, and a footpath with crib steps leading to the river. A groomed snowmobile trail and the North Country National Scenic Hiking Trail are associated features of the site. Day use fees apply at this site and the site is not maintained year round.

High Bridge: This site is located on the north side of the river and includes a drive-in boat launch, two vault toilets, a small picnic area, interpretive signing, garbage service, and a paved parking lot. A groomed snowmobile trail is an associated feature of the site. Day use fees apply at this site and the site is maintained year round.

Blacksmith Bayou: This site is located on the south side of the river and includes a drive-in boat launch, a paved parking area, a vault toilet, a small picnic area, 8 camping sites, a paved road, a stairway to the bayou, and garbage service. The North Country Trail National Scenic Hiking Trail is an associated feature of the site. Day use fees apply at the site and the site is not maintained year round.

Udell Rollways: This is a day use site which consists of a vault toilet, fire ring, benches, picnic shelter, a stairway providing walk-in angler access, garbage service, a gravel parking lot, interpretive signage, and an 18-basket disc golf course. Day use fees apply at the site and the site is not maintained year round.

Bear Creek: This site includes a drive-in boat launch, paved parking lot, vault toilet, interpretive signage, a small picnic area, garbage service, and an accessible fishing pier. Day use fees apply at the site, which is open and maintained year round.

Rainbow Bend: This site also includes a drive-in boat launch, a gravel parking lot, vault toilet, interpretive signage, a small picnic area, garbage service, and two accessible fishing piers.

Historically, the parking lot of this site was a popular camping area (especially during the fall salmon run). This use was eliminated through an amendment to the Manistee National Recreation River Management Plan (CMP) in 2010, when the site was converted to day use only.

Day use fees apply at the site, which is open and maintained year round.

Little Manistee River The Little Manistee River offers many opportunities for steelhead and trout fishing. The river banks are covered with lowland brush, swamp conifers, white pine and a variety of oak. The river has many bends and large logs. Water levels can become fairly shallow during dry summer months. See Appendix A for a map of the river area and all authorized access sites.

The Little Manistee River is a Congressionally-designated Wild and Scenic Study River. It runs approximately 41 miles from Old Grade to Old Stronach Bridge; the permit area includes access sites on National Forest System lands from the Driftwood Valley to Six Mile Bridge, which is approximately a 17 mile stretch. Along this stretch, up to three commercial livery outfitters and up to six commercial fishing guides provide trips to the public using Forest Service access sites.

Little Manistee River Permit Area The permit area is located within Manistee County, Michigan at the following access sites:

Driftwood Valley Access – Forest Service Road 5986 (T20N, R14W, Section 16)

Bear Track Access Site (T20, R14W, Section 17)

Six Mile Bridge Access Site (T21N, R15W, Section 31)

This river segment has been authorized for commercial boating since 1994. The boating season is normally from early May through the middle of October. Commercial use of these access sites is limited to 62 commercial watercraft per day for liveries and 11 watercraft per day for fishing guides.

In comparison to the Manistee River, the Little Manistee River is less developed and has minimal infrastructure. While there are designated parking areas, they are not paved, there is little signage associated with the sites, and the vault toilets are limited to the Bear Track Access Site. Recreational use on the river is low to moderate, with increased fishing pressure in the spring and paddleboat use during the summer months. In addition, there are a variety of dispersed sites along the river.

Camping sites down from 9 Mile Bridge include: Hopper Junction, Elm Flats, 9 Mile Bridge Road, Bowman Farm, Jackpine, Powerline, Chicago Boy Rollway, and the Little Manistee Weir.

Parking areas include: 6 Mile (East, West, and South), Link’s Pond, North Lodge, the Little Manistee Weir, Kennedy Farm, Overlook, and Old Stronach Road.

III. OFFERING

Needed Services This prospectus is soliciting for applications that will provide high-quality, safe boating trips at market value on Huron-Manistee National Forest lands administered by the Cadillac/Manistee Ranger District. These activities are limited to National Forest System lands; no structures or development are involved, nor will use of private land be authorized

Priority Use and Watercraft Limits Priority use awarded by this prospectus will be authorized through a two-year special use authorization (permit). The authorization may be extended up to 8 more years after acceptable performance for the first 2 years. All authorized use resulting from this offering will be considered priority use, as opposed to temporary use. The decision whether to issue a new permit to a holder is at the sole discretion of the authorized officer.

The watercraft limits for this prospectus are 21 watercraft per day on the Little Manistee River and 16 watercraft per day on the Manistee River. The watercraft limits were established by the

CMP.

Service Days and Fee to Government Commercial use limits are assigned by “service days” and listed on the face of the permit. A service day is any part of a day spent on National Forest System lands by each client accompanied or provided with goods and services, including transportation services. Any period of time when clients are on National Forest System lands and under the direction, care, or tutelage of an outfitter will be counted as part of the total service days for fee calculations.

Priority use service days are assigned at the discretion of the authorized officer and shall be consistent with the 2006 Huron-Manistee National Forests Land and Resource Management Plan (LRMP), as amended and the 1996 Manistee National Recreation River Management Plan (CMP). The amount of use is based on the holder’s past use and performance, guidelines established by both the LRMP and CMP, and established capacity levels.

The following will be awarded to one or two successful applicants. The same applicant could be selected for both offerings under one permit.

A. One (1) permit will be awarded for the Little Manistee River or

B. One (1) permit will be awarded for the Manistee River or

C. One (1) permit will be awarded for both offerings.

Each selected applicant will be required to pay a fee for the use of National Forest System lands.

The fee is described in Section V: PERMIT AND OPERATIONS. See Appendix I. Estimated Fee Determination Sheet, to see how the Forest Service estimated annual fees.

Trip Requirements A “passenger” will be defined as anyone not employed by the outfitter, such as guides, staff, and permitted photographers. These specified individuals are not counted in trip size unless otherwise specifically stated below.

Authorized Access Locations The current authorized put-ins and take-outs on the Manistee River for the commercial outfitters are as follows:

Red Bridge, High Bridge, Blacksmith Bayou, Bear Creek and Rainbow Bend.

The current authorized put-ins and take-outs on the Little Manistee for the commercial outfitters are as follows:

Driftwood Valley, Bear Track, and Six Mile Bridge.

Expected Client Numbers and Sales The following information is offered to provide you an example of the potential income and number of clients you may expect for a permit of this type. Gross revenue amounts (and the number of clients served, when this information is available) are provided for the business that formerly operated under this permit. We have also provided information for several other livery businesses located on these two rivers, to provide additional examples.

The season of operation for this type of permitted activity is usually May through September (with some use perhaps extending into October, depending on the weather that year). The highest period of use is usually July, August and holidays. Weekends usually have higher use than weekdays.

The most recent permit for this business was terminated in 2013. During its last 5 years of operation, the business operating under this permit generated income as demonstrated in the following table.

Year Gross Revenue Total Clients, Manistee River

Total Clients, Little Manistee River

2007 $33,930 N/A N/A 2008 $30,060 N/A N/A 2009 $25,612 937 120 2010 $22,875 863 126 2011 $21,253 879 63

There are four livery businesses in the area that operate in whole or partially on the Manistee and Little Manistee Rivers. These businesses are set up differently from the one above. Businesses 1 and 2 are primarily private campgrounds that offer canoe and kayak rentals.

Business 1 has a permit allowing 31 watercraft per day on the Little Manistee River and 12 watercraft per day on the Manistee River.

Year Gross Revenue 2010 $6,255 2011 $7,340 2012 $6,575 2013 $4,330 2014 $4,332 2015 $6,920

Business 2 has a permit allowing 10 watercraft per day on the Little Manistee River and 10 watercraft per day on the Manistee River.

Year Gross Revenue 2010 $13,107 2011 $11,269 2012 $13,235 2013 $14,315 2014 $15,208 2015 $15,605

Businesses 3 and 4 provide canoe and kayak rental, and are located on and conduct the majority of their business on the Pine River. However, each is authorized 10 watercraft per day on the Manistee River. Unfortunately, we do not have the data to separate out the amount of income derived from the Manistee River from the total gross income, which includes both the Pine and Manistee Rivers for 2012-2014. So we have instead included the number of clients and watercraft served on the Manistee River for those years. For 2015, we do have gross income derived from only the Manistee River.

Business 3: This business has a permit allowing 10 watercraft per day on the Manistee River.

Year Total Clients Served Total Watercraft 2012 191 128 2013 122 70 2014 187 87 Year Total Clients Served Gross Revenue Manistee

River 2015 307 $10,810

Business 4: This business has a permit allowing 10 watercraft per day on the Manistee River.

Year Total Clients Served Total Watercraft 2012 148 101 2013 153 113 2014 208 121 Year Total Clients Served Gross Revenue Manistee

River 2015 165 $5,281

IV. SPECIAL CONSIDERATIONS

Conditions

1. All applicants have an equal opportunity to apply. Except for members of Congress, resident commissioners, and current Forest Service employees, any individual or entity may apply.

2. The Forest Supervisor reserves the right to waive any technical defects in the proposals and to clarify these defects.

3. The Forest Service cannot guarantee a profitable operation to the successful applicant(s). Applicants are responsible for reviewing the prospectus and making their own determination concerning business viability. Applicants are responsible to make their own estimates of costs on the basis of their proposals. The following is a partial list of expenses which applicants can anticipate. Additional expenses are likely.

• Insurance (liability, auto);

• Employee housing off of National Forest System land;

• Fee to the Forest Service;

• Applicable federal, state and local taxes, licenses, fees or charges.

4. Only those activities identified on the first page of the special use permit will be authorized. The sale of any goods or commodities will be allowed only if enumerated in the proposal and approved by the Forest Service.

5. Proposals for environmental education or interpretive services may be considered.

6. The Forest Service will select the application that offers the best value to the government. The Forest Service is not obligated to accept the proposal with the highest return to the government. The Forest Service reserves the right to issue the permit on the basis of a trade-off between the fee to the government and technical merit. The objective is to select a proposal which will best serve the public need.

7. Companies or corporations submitting proposals must sign, using the name of the appropriate executive officer, together with proof of the officer’s authority to sign, and the official address. An individual must sign his/her name and furnish the address of his/her place of residence or business.

8. An annual performance evaluation will be prepared at the end of each operating season by the authorized officer, or their representative, and will be reviewed by the permittee. This evaluation will be based on periodic inspections, public comments, and compliance with the special use permit and operating plan. An unacceptable rating may result in probationary status or could be cause for suspension or revocation of the special use permit. A sample performance evaluation form is included in Appendix C.

9. The Forest Service reserves the right to select the successful applicant based solely on the initial application, without oral or written discussions.

10. The Forest Service reserves the right to reject any or all applications.

11. The Forest Service reserves the right to rescind the prospectus at any time before a special use permit is issued.

12. Any oral statement made by a representative of the Forest Service shall not modify the requirements of this prospectus. If it is determined that an error or omission has been made, or additional information is required, a written amendment will be sent to each person/entity receiving a copy of this prospectus.

13. In the event that a contradiction exists between this prospectus and the special use permit, the special use permit terms will supersede the prospectus.

14. The information contained in the application package may be kept confidential only to the extent permitted under the Freedom of Information Act (5 U.S.C. 552) and Privacy Act (5 U.S.C. 552a).

V. OTHER PERMIT AND OPERATION REQUIREMENTS

Authorities Outfitting and guide activities are authorized by special use permits issued under the Federal Lands Recreation Enhancement Act, 16 U.S.C. 6802(h), and implementing regulations at 36 CFR part 251, Subpart B.

In addition, there are certain Forest Service programs and policies that are applicable to outfitting and guide operations. They apply to all applicants and are non-negotiable. All applications shall be consistent with these requirements.

Permit holders should become familiar with the Code of Federal Regulations (CFR) and regional and forest orders. Closure orders may be implemented at any time, and permit holders must comply.

Special Use Permit Requirements If your proposal is selected and you are awarded use on the Huron-Manistee National Forests, the final step before you are authorized to operate is to obtain a special use permit. A sample special use permit can be found in Appendix B.

The selected applicant(s) will be responsible for the following requirements:

Law and Regulations The selected applicant(s) must observe and abide by all federal and state regulations dictating lawful and authorized use of public lands. Applicants must disclose any and all prior infractions of federal and state regulations in regard to this business opportunity.

Advertising The selected applicant(s) must provide a brochure or rate card that advertises current rates and services offered. Any print, online, or other advertisement must include language that states that the outfitting and guiding services are being offered on the Huron-Manistee National Forests and are authorized under a Special Use Permit.

Fees The fee is based on three (3) percent of the annual adjusted gross revenue, minus any applicable adjustment for use off National Forest System lands.

The 2015 minimum fee for outfitting/guiding use, which is determined nationally, is $105.00.

Record Keeping The selected applicant(s) will be required to provide the Forest Service annual financial and actual use records to determine the final annual fee. All original records of use, by date, trip, fee, number of watercraft, and number and name of persons, must be retained and readily available for inspection for the most recent five years.

Equipment Identification The selected applicant(s) will be required to mark vehicles and watercraft with the company name or insignia and Forest Service-issued identification (See Appendix J for examples).

Customer Service Mission The mission of the Forest Service is “Caring for the Land and Serving People.” Permit holders who operate on National Forest System land on behalf of the Forest Service are expected to assist in achieving this mission. The customer service aspect is central to the outfitter operation.

The permit holder will need to develop and implement methods and mechanisms for responding to customers’ needs in a helpful and professional manner, giving timely and courteous information and assistance, and doing those things necessary to ensure that customers have a safe and enjoyable stay on their national forest.

As part of a continuing effort to better serve the needs of the customer, the Forest Service reserves the right to conduct random use counts and surveys and to converse with visitors on-site, regarding the service they are receiving. Such surveys may be used for ongoing monitoring, as well as part of the permit holder’s annual performance evaluation.

Non-Discrimination Permit holders will not discriminate against any employee or applicant for employment because of race, color, religion, sex or national origin. The permit holder and employees shall not discriminate by segregation or otherwise against any person on the basis of race, color or national origin by curtailing or refusing to furnish accommodations. The holder will be required to display signs setting forth this policy of non-discrimination (provided by the Forest Service) at the public entrance to the premises, and at other locations as directed by the Forest Service. The holder will be required to participate in any "Title VI" reviews with the District and sign a non-discrimination assurance statement prior to operating. Print and online advertisements must identify the holder as an equal opportunity provider.

Outfitting Policy The Special Use Permit(s) will be administered in accordance with Forest Service policy. Permit holders and their employees are expected to understand the terms and conditions under which they operate.

Evaluations Permit holders will receive annual performance ratings and periodic site inspections. Permit holders must receive an acceptable rating to continue operating. Non-compliance with permit requirements may result in revocation or termination action. The evaluation system that the Forest Service uses can be found in Appendix C.

VI. SUBMITTING THE PROPOSAL

Applicants must submit a written application for one or both permit areas offered in this prospectus. Applicants are strongly encouraged to visit the sites at least once before submitting an application (Appendix A: Vicinity and Area Maps).

Applications for a special use permit to provide outfitting and guiding services on the Huron- Manistee National Forests will be accepted by mailing or bringing in completed proposals to:

Forest Supervisor Huron-Manistee National Forests

ATTENTION: OUTFITTER PROPOSAL ENCLOSED

1755 S. Mitchell St.

Cadillac, MI 49601

Applications must be postmarked or received at the Forest Supervisor’s Office no later than 4:30 p.m., Eastern Time, on Friday, December 30, 2016. Please ensure that all requested items are submitted. Incomplete proposals could adversely affect your chances for selection. Proposals submitted after this date will not be considered. Material submitted with proposals may not be returned unless specifically requested.

Applicants must submit four (4) complete copies of their application package and supporting documents. Four (4) copies of the business plan must be submitted as a separate package.

Applications must be in sealed envelopes and must be signed by an authorized officer of the organization or individual submitting the application. The information is subject to verification by the Forest Service, and additional supporting data may be requested.

Applicants must include information about their organizational structure, the entity’s name, mailing address with zip code, telephone number, facsimile number, and e-mail address, designated agent, evidence of incorporation and good standing, if applicable, and name and address of each affiliate of the applicant. The person signing for an entity must have authority to sign for that entity.

Applicants that are partnerships, limited liability companies (LLC), associations, or other unincorporated entities must provide the names and interests of the company’s principals; submit a certified copy of the partnership agreement or other documentation establishing the entity or a certificate of good standing under the laws of the state where the entity is located.

Proposal Required Information To be considered, the application package must be in writing and provide the following:

Operating Plan Proposal Describe how you will operate your outfitting and guiding service (reference Appendix D:

Sample Operation Plan). Your application should address the following:

Types and kinds of trips to be offered for three years and proposed rates for three years. Include a description of the schedule of trips proposed, periods of use (midweek vs. weekends). Explain any variable pricing, discounts, and/or passes. Fees should reflect fair market value. Beware of proposing excessive prices or proposals that do not serve a public need or do not meet the management direction for the area, as described in the forest plan. The Forest Service reserves the right to regulate the rates charged to the public.

Customer service/guest relations. Describe your proposal for providing customer services to diverse individuals, groups, families, organizations, institutions, etc. This would include advertising, outreach, reservations, meeting special needs, handling complaints, and trip evaluations. Provide an assurance of nondiscrimination and agreement to display Forest Service issued nondiscrimination posters in your storefront.

River equipment. Describe your proposal for the types and kinds of equipment and accessories you would be using. Include information on the equipment and accessories now in possession, including their current condition. If intending to purchase equipment and/or accessories, describe what you would purchase and how you would purchase needed equipment to operate at full capacity.

Personnel. Describe your proposal for hiring, including outreach, recruitment, and providing local employment opportunities. Describe the standards and qualifications for your employees involved in the operations. Describe how employee training will be accomplished for livery service, safety and emergency procedures, working with diverse clientele, public relations, and general communications.

Health, safety, and river etiquette. Applicants should describe the information that would be given to all clients, including safety talks and paddling tips and techniques.

Procedures for handling emergencies should be described, along with safety and rescue equipment that would be carried on the river and in ground transportation.

Applicants should address the steps they would take to assist the Forest Service in maintaining the outstanding qualities of the natural environment along the river.

Describe the methods for minimizing impacts along the river during lunch stops and overnight stays, including garbage removal and sanitation. Describe how these methods would be shared with clients.

Base of operations. Describe your proposal for the facilities you will use to meet your clients and where their personal vehicles will be parked during the river trips.

The special use permit issued for this outfitting and guiding operation does not include use of National Forest System lands as regular meeting and parking areas. Applicants’ proposals should address how this use will be accommodated on private or other public lands in the area.

Ground transportation. Describe how ground transportation will be used to support the river trips. Include the kinds and types of vehicles, driver licensing and operating skills, and emergency communications. Recreation Enhancement Act day use fees apply at most landings. Most current permit holders also sell Huron-Manistee National Forests day passes to clients or purchase them on their behalf for use of the landings.

Optional services. Describe your proposal for any optional services you intend to provide, such as interpretive services, information about the Manistee River watershed, its attributes and risks, information about the area and its attractions, and customer service concept.

Business Plan A business plan must be submitted with the written application. An example is provided in Appendix G.

Business References Furnish three business references with names, addresses, and phone numbers in support of item #4, Applicable Business Experience. Letters of reference are acceptable.

Applicable Business Experience Include a detailed explanation of any experience relating to operation of an outfitting business and, more specifically, river operations that have included whitewater rafting and/or kayaking activities. Information should address the following items:

• Dates, description, services provided, public served, location, and volume of business.

• Previously operated canoeing and/or kayaking outfitting operations.

• Information regarding past performance, either through performance evaluations from agency representatives, customer survey reports, and/or letters of recommendation.

• Information demonstrating knowledge of the area, as well as educational and interpretive capacity.

Financial Information

• Provide a complete set of all financial statements for the last three fiscal years that have been audited, reviewed, or compiled by a certified public accountant (CPA).

Applicants must complete Form FS-6500-24, “Financial Statement,” for certification as to the accuracy of the financial statements if the financial statements were only compiled by a CPA (reference Appendix E: “Financial Statement,” FS-6500-24, and “Request for Verification,” FS-6500-25).

OR

• If financial statements have not been audited, reviewed, or compiled by a CPA for the last three fiscal years, submit a completed Forest Service Form FS-6500-24, “Financial Statement,” for any fiscal year you were in business during the last three fiscal years for which an audited, reviewed, or compiled financial statement has not been prepared. Limited liability companies should list the name of the company in block 1, list the names and interests of the principals in block 5, list their members in block 6, and complete the certification in Part (D)(1) of FS-6500-24. Corporations or partnerships should also complete Part (D)(1) of FS-6500-24. Individuals should complete part (D)(2) of FS-6500-24. A sample “Financial Statement,” FS-6500-24, is included in Appendix E.

• In addition to any documentation provided under 5.a. and b., if you have not been in business for the last three fiscal years and, therefore, cannot submit audited financial statements and/or an FS-6500-24 for that period, submit three fiscal years of projected financial statements that are compiled by a certified public accountant using the forecast method.

• Have each financial institution with which you do business submit a completed Forest Service Form FS-6500-25, “Request for Verification.” Complete blocks 1 through 5 of the form, and send a copy to each financial institution with which you do business.

Each of the financial institutions must complete blocks 6 through 15 of the form and return it to the USDA Forest Service, Albuquerque Service Center, ATTN: Juan Ramirez, 101 Sun Avenue Northeast, Albuquerque, NM 87109. A sample “Request for Verification,” FS-6500-25, is included in Appendix E.

• Any financial information submitted by applicants shall conform to generally accepted accounting principles (GAAP) or other comprehensive bases of accounting.

Any previously prepared financial documents that are submitted must be un-redacted and in their original form, including footnotes.

• Applicants must show at least 25% of the first year's operating costs in liquid assets.

Liquid assets are those assets which are readily converted to cash.

Knowledge of the Area Describe general knowledge of the area and nearby attractions.

Application Fee and Cost Recovery Applications submitted in response to this prospectus are subject to cost recovery pursuant to 36 CFR 251.58(c)(1)(ii) and (c)(3)(iii). Applicants must submit a processing fee of $50.00 to cover the cost of the prospectus and review of the application. Payments due the United States for this application must be paid in the form of a bank draft, money order, or cashier’s check payable to the USDA-Forest Service. Payments will be credited on the date received by the designated Forest Service collection officer or deposit location.

A checklist is provided in Appendix F and should be submitted with your application.

To avoid unnecessary expense for the applicant, insurance policies, brochures, etc. should not be obtained until after an award is made.

VII. SELECTION PROCESS AND POST-SELECTION REQUIREMENTS

The objective is to select the applicant whose proposal best meets the public need. The primary basis for selecting the best qualified applicant is the demonstrated ability to provide high quality outfitting services to the public for boating in a safe manner.

The Forest Service will only consider the applicant’s written application package and any past performance information obtained by the Forest Service. An evaluation panel with experience in special use permits will evaluate each proposal. The panel will review, evaluate, and compare proposals using the selection criteria.

During the evaluation process, the evaluation panel may contact any references, including all federal, state, and local entities that have had a business relationship with the applicant. The evaluation panel may also consider past performance information from other sources.

Applicants without prior infractions of state and federal regulations may be judged more favorably in rating the proposals.

After all proposals have been rated, the panel will recommend to the authorized officer which applicant(s) offers the best value to the government. The authorized officer has final selection authority to accept or deny the recommendations of the panel. The successful applicant(s) will be notified no later than February, 20, 2017. All applicants will be notified of the successful applicant via certified return receipt letter.

The selection of the successful applicant(s) is an appealable decision under 36 CFR 251.82. An appellant must file a notice of appeal within 45 days of the date on the written notice of decision of selection.

Evaluation Criteria The Forest Service evaluation panel will evaluate each application package using the selection criteria and professional judgment, but will not use a mathematical scoring system. The following evaluation criteria are listed in descending order of importance:

1. Operating Plan. Kind and quality of service proposed in terms of meeting public need as identified in the Operating Plan proposal.

2. Business Plan and Experience and References. Experience and qualifications in operating boating services, outfitting and guiding services, and/or experience in other related fields. This will include the business plan, experience, references, and evaluation of past performance information.

3. Financial Information. Financial capability and/or backing of the applicant to perform the required services.

4. Knowledge of the Area. Knowledge of the area and its attractions.

5. Fees Charged to the Public. Fees charged to the public for the first three years.

The Forest Service may conduct a Financial Ability Determination (FAD) on the selected applicant(s) as a prerequisite to issuing a special use permit, unless the Forest Service has conducted a FAD on the applicant within the past year.

Additionally, the selected applicant may be responsible for the cost of preparing and issuing the permit and conducting a Financial Ability Determination (FAD). The financial institutions must complete blocks 6 through15 of the form and mail the completed form to USDA Forest Service, Albuquerque Service Center, Attention: Juan Ramirez, 101 Sun Avenue Northeast, Albuquerque, NM 87109.

The Forest Service reserves the right to rescind the prospectus at any time before a special use permit is issued. If the Forest Service rescinds the prospectus, application fees will be returned.

VIII. Documents Required Prior to Permit Issuance The selected applicant(s) will be required to submit (or provide proof of) the following requirements prior to being issued a Special Use Permit and allowed to operate:

If your proposal is selected and you are awarded use for an activity, the final step before you are allowed to operate is to obtain a new recreation special use permit.

The selected applicant will be responsible for the following:

1. Annual Operating Plan – The Plan and accompanying itinerary will become part of the recreation special use permit upon approval by the Authorized Officer. The selected applicant(s) will be required to develop an annual operating plan subject to approval by the Forest Service. This plan is an appendix of the special use authorization and is required prior to starting any operations. A sample operating plan can be found in Appendix D.

2. Proof of Insurance. The selected applicant(s) will have in force commercial general liability insurance covering bodily injury and property damage in the following amounts: $25,000 property, $500,000 death or injury per individual, and $500,000 death or injury to more than one individual. The coverage shall extend to property damage, bodily injury, or death arising out of the holder’s activity. In addition, the insurance must indemnify the United States against any liability for damage to life or property and state that the “US Government” is “additionally insured.” Within 30 calendar days following the Forest Supervisor’s notification that an applicant has been selected, a copy of the entire insurance policy and certificate of insurance must be furnished to the Forest Supervisor, or designated representative, at the following address: Huron-Manistee National Forest, Cadillac/Manistee Ranger District, 412 Red Apple Rd, Manistee, MI 49660.

3. State Commercial Watercraft Registration Requirements – Proof of compliance with State of Michigan Watercraft Registration Requirements will be required before a permit will be issued. All watercraft, unless exempt, must be registered with the Secretary of State and display a registration decal.

4. Fees – Applicable fees are described below. These fees are calculated using the guidelines in Chapter 30, Forest Service Handbook 2709.11. See Appendix I for an example of how estimated fees are determined. All fees must be paid before the special use permit is valid. These fees are:

a. A fee for the permit privileges and use of Forest Service lands based on the service days used and/or the amount the outfitter charges for the services provided to the clients. Prior to the season of use, the annual fee expected to be due for the authorization will be estimated by calculating the fee on 3% of the expected adjusted gross revenue. The final fee will be calculated following the operating season. The permittee is required to provide their financial and actual use records within 30 days of the end of the operating season or an established deadline in order that the final fee can be calculated on actual use and revenue.

b. The minimum fee for outfitting and guiding use is 3% of gross revenue or $105, whichever is greater. Outfitters will be charged the minimum $105 fee if 3% of gross revenue does not exceed $100. If 3% of gross revenue exceeds $105, the outfitter will need to pay that additional amount.

5. Record Keeping – The permittee will be required to provide annual financial and actual use records to determine the final annual fee. All original records of use by date, trip, fee and number and name of persons must be retained and readily available for inspection for the most recent five years.

Special use permits may be suspended, revoked, or terminated for any of the following reasons:

1. Non-compliance with terms and condition of the special use permit.

2. Failure to exercise the privileges granted.

3. With consent of the holder.

4. When, by its terms, a fixed or agreed upon time, event, or condition occurs.

5. Reasons in the public interest.

Post-Selection Requirements Once an applicant has been selected, the following information must be submitted and approved by the Forest Service prior to issuance of a special use permit:

• A final Annual Operating Plan.

• Documentation of required liability insurance.

• Required deposits and advance payments. (Refer to Appendix B: Sample Special Use Permit, Form FS-2700-4i, Clause IV, B).

• A state business license and any other federal, state, or local certifications or licenses required for the operation.

• Articles of Incorporation, if necessary.

The successful applicant(s) will be required to submit all of these items within 30 days of the date of the selection letter. If the above requirements are not met within the 30-day period, a special use permit will not be issued. The applicant who provides the next best value to the government may then be selected for the special use permit, subject to the same requirements.

Expected Client Numbers and Sales