BADL001-25 Business Opportunity Summary for Site Visit.pdf

CC-BADL001-25 Pre-Solicitation Site Visit Business Opportunity Summary 1

Pre-Solicitation Site Visit Business Opportunity Summary

Solicitation No. CC-BADL001-25

Lodging, Retail, Food and Beverage and Camping Services at

Badlands National Park

National Park Service

Department of the Interior

Table of Contents

INTRODUCTION

Questions

No Preferred Offeror

CONCESSION OPPORTUNITY CC-BADL001-25

Leasehold Surrender Interest

HISTORICAL CONCESSION DATA

More Information

INTRODUCTION

The National Park Service (“NPS”) anticipates releasing a prospectus for a concession business opportunity to provide lodging, retail, food and beverage and camping services within Badlands National Park (“Park”) in mid- November 2024. The prospectus will describe the business opportunity and the terms and conditions of Concession Contract No. CC-BADL001-25 (“Draft Contract”). General information about this business opportunity and the Draft Contract are provided below.

On August 26, 2024, the NPS announced in a notice, plans to host a site visit for interested entities on September 24, 2024, in advance of the release of the prospectus. The site visit provides interested entities an overview of the concession operation and a tour of many of the Concession Facilities (land and real property improvements assigned to the concessioner under the Draft Contract). To attend the site visit, registration is required, and the registration period closes on September 19, 2024.

Attendance at the site visit is encouraged, but not required, to submit a proposal. Typically, the NPS holds a site visit after the release of the prospectus. However, the NPS does not intend to host an additional, post-release site visit because the weather and road conditions are unpredictable by the fourth quarter of the calendar year and most Concession Facilities will have closed for the winter season.

QUESTIONS

CC-BADL001-25 Pre-Solicitation Site Visit Business Opportunity Summary 2

The NPS will not answer questions about this prospectus or business opportunity during registration or at the site visit. Interested entities must submit questions in writing after the release of the solicitation to the contact person and by the deadline that will be provided in the prospectus.

NO PREFERRED OFFEROR

The Director has determined that no preferred offeror for this Draft Contract exists pursuant to the terms of 36 C.F.R. Part 51. This solicitation for commercial services will be fully competitive.

CONCESSION OPPORTUNITY CC-BADL001-25

• The NPS expects the Draft Contract to have a term of ten (10) years and an effective date of November 1, 2025. The Draft Contract will require the concessioner to provide the following visitor services:

• Retail service that offers a variety of general merchandise, convenience items, and grocery items; and

• Lodging service that offers 26 cabin lodging units, consisting of 20 units in stand-alone cabins and 6 units in three duplex cabins. In addition to these cabin units, a recently renovated two-bedroom “cottage unit” will be added to the lodging inventory, for a total of 27 units; and

• Camping service that offers 81 individual campsites and 4 group sites within Cedar Pass Campground. 22 of the 81 individual sites are designated for RVs and have 30-amp or 50-amp electric hookups only. There are no water or sewer hookups, but there is a lift station operated by the Park; and

• Food and beverage service that offers take-out or table service in a casual setting.

INVESTMENT ANALYSIS

Offerors must compile and present their own financial projections based on independent assumptions, due diligence, and industry knowledge. The Service requires an initial investment by the successful offeror that includes personal property, inventory, working capital, start-up costs, and operating supplies. Additionally, the Draft Contract requires the Concessioner to cure the deferred maintenance, complete the legislatively mandated work, and complete the Concession Facilities Improvement Program (CFIP) within the first three years of the Draft Contract. The table below summarizes the CFIP projects and completion schedule.

CFIP Project Title Completion

Year

1. Stabilization and Rehabilitation of Kitchen Area in Main Lodge Building 2027

2. Installation of Five Rustic Camper Cabins within Cedar Pass Campground 2027

3. Relocation of Five Existing Lodging Cabins due to Flooding Concerns 2028

In addition to the investments listed above, the Draft Contract contains financial and operational requirements that are ongoing through the term of the Draft Contract, including maintenance of assigned facilities, funding and expending from a Component Renewal Reserve, opening, closing, and winter keeping of assigned facilities, utilities, and franchise fee.

Leasehold Surrender Interest The Existing Concessioner does not have Leasehold Surrender Interest (LSI) under the Existing Contract. The Concessioner will be eligible to obtain LSI as outlined in the Draft Contract.

HISTORICAL CONCESSION DATA

The following table lists annual gross receipts and franchise fees paid between 2021–2023.

CC-BADL001-25 Pre-Solicitation Site Visit Business Opportunity Summary 3

2021 2022 2023

Total Gross Receipts $3,774,177 $3,276,494 $3,653,326 Franchise Fee Paid $182,745 $144,993 $248,221

MORE INFORMATION

For more information about National Park Service Commercial Services Program, concession contracts, and the laws and policies that control and guide them, go to:

www.nps.gov/subjects/concessions/index.htm.