CC-YELL002-24 Solictation Amd 1 and Responses to questions.pdf

United States Department of the Interior

NATIONAL PARK SERVICE

INTERIOR REGIONS 6, 7, & 8

12795 W. Alameda Parkway Lakewood, CO 80228

IN REPLY REFER TO:

Commercial Services

CC-YELL002-24

Memorandum

To: All Parties Interested in the Prospectus for A Concession Business Opportunity to Provide Retail and Food and Beverage Services within Yellowstone National Park (Solicitation CC-YELL002-24)

From: Acting Regional Director

Subject: Amendment 1 to the Prospectus and Responses to Questions to Solicitation CC-

YELL002-24

This notice amends the Prospectus and provides responses to questions received regarding A Concession Business Opportunity to Provide Retail and Food and Beverage Services within Yellowstone National Park (“Park”) that the National Park Service (“Service”) issued on October 12, 2022, for Concession Contract No. CC-YELL002-24.

AMENDMENT 1 TO THE PROSPECTUS

Part I. Business Opportunity

Delete: The Service intends to award the Draft Contract around November 2024, or around six weeks prior to the anticipated effective date when the Concessioner would commence operations on January 1, 2024. The Service intends to announce the selected Offeror around July 2024 or around three months prior to award.

Insert: The Service intends to award the Draft Contract around November 2023, or around six weeks prior to the anticipated effective date when the Concessioner would commence operations on January 1, 2024. The Service intends to announce the selected Offeror around July 2023 or around three months prior to award.

Delete: Part III of this Prospectus contains the Proposal Package that Offerors must complete in its entirety. The Proposal Package contains the required Offeror’s Transmittal Letter, five principal selection factors and two secondary selection factors.

Insert: Part III of this Prospectus contains the Proposal Package that Offerors must complete in its entirety. The Proposal Package contains the required Offeror’s Transmittal Letter, five principal selection factors and one secondary selection factor.

Delete The following table lists annual gross receipts by department and franchise fees paid between 2019– 2021.

2019 2020 2021 Total Gross Receipts $38,543,999 $29,126,232 $38,977,053 Retail (merchandise, convenience, and grocery) $32,480,593 $26,525,889 $34,610,912 Food and Beverage $6,027,783 $2,559,876 $4,319,991 Franchise Fee Paid $3,818,553 $2,887,098 $3,869,845

Insert The following table lists annual gross receipts by department and franchise fees paid between 2019–2021.

2019 2020 2021 Total Gross Receipts $38,508,376 $29,085,765 $38,930,903 Retail (merchandise, convenience, and grocery) $32,480,593 $26,525,889 $34,610,912 Food and Beverage $6,027,783 $2,559,876 $4,319,991 Franchise Fee Paid $3,818,553 $2,887,098 $3,869,845

Part II. Proposal Instructions

Section 8. Add the following sentence to the end of 8): This Prospectus only provides for oral debriefings.

Part III. Proposal Package

Subfactor 3(a). Experience, Part 3) For the food and beverage example, also provide:

Delete c) Annual number of guests by meal period during most recent completed year or operating season

d) Average check during most recently completed year or operating season

Insert c) Annual number of guests by meal period during the most recent two years

d) Average check during the most recent two years

Subfactor 3(c). Infractions and Violations (0-1.5 POINTS)

Delete the existing page limit and #1-4 and insert the following:

Using not more than five (5) pages, including text, pictures, and graphs, provide the following information:

1) Describe all Infractions that have occurred in the past five years in your operations that are related to the same or similar services as required or authorized by the Draft Contract.

2) Explain how you responded to each Infraction, including actions you took to prevent a recurrence of the Infraction.

Using not more than three (3) pages, including text, pictures, and graphs, provide the following information:

3) List the Related Entities (as defined below) you considered in providing the foregoing information.

4) Describe your overall strategy to minimize Infractions and how you resolve, or plan to resolve, Infractions when they do occur.

Part IV. Draft Contract, Exhibit B Operating Plan

Page B-13, Section 2 O(5)Advertisements and Promotional Material

Add the following under 2O(5):

(e) Names of General Stores and Food and Beverage Outlets. If the Concessioner wants to use different names for the general stores and food and beverage outlets, it must submit in writing the proposed new names and designs for signage for Service approval prior to implementation.

Additionally, the NPS will not approve the use of a different name unless the Concessioner agrees that any intellectual property rights in the name would inure to the benefit of NPS, and that the name be added to an amended Exhibit K.

Page B-20, Section 3 B(8)(c)

Add the following to the end of first bullet: The Service may approve locations for mobile food and beverage service in developed areas outside of the Concessioner's land assignment, as shown in Contract Exhibit D, but not in locations within (or immediately adjacent to) another concessioner's land assignment.

RESPONSES TO QUESTIONS FROM INTERESTED PARTIES

Part I. Business Opportunity

1. On page 2, the government states that "The Service intends to award the Draft Contract around November 2023 or around six weeks prior to the anticipated effective date when the Concessioner would commence operations on January 1, 2024. The Service intends to announce the selected Offeror around July 2024, or around three months prior to award." Can you confirm that these dates are stated incorrectly?

NPS Response: See Amendment 1 to the Prospectus in this memorandum above.

2. On page 2, under the section named Proposal Overview, the government states that "The proposal package contains the required Offeror's Transmittal letter, five principal selection factors and two secondary selection factors", however in the prospectus document there is only one secondary selection factor listed. Can you confirm there is only one secondary selection factor that should be responded to in the submission?

NPS Response: See Amendment 1 to the Prospectus in this memorandum above.

3. Related to the Concession Opportunity on pages 7 and 8, please provide the selling space square footage for Retail Service by location and the guest-facing square footage for Food and Beverage Service by location.

NPS Response: See the table below for the retail square footage (SF) of each location. Similar information for food and beverage locations is not available.

Retail Locations Gross SF in FMSS Reported Retail SF

Bridge Bay 1,399 900 Mammoth 9,642 3,315 Tower fall 9,362 2,106 Canyon General 29,952 8,470 Canyon Adventure 8,392 2,106 Fishing Bridge 26,765 9,316 Lake 5,514 4,469 Grant 30,827 7,313 Grant Mini 2,521 900 Old Faithful Upper 28,544 9,316 Old Faithful Lower 22,373 4,650 Total SF 196,623 53,761

4. On page 9, under the Employee Housing, Food Service and Recreation section, it states "Additionally, the employee pubs and recreation halls operated by Xanterra Parks & Resorts, Inc.

under concession contract CC-YELL077-13, are available for use by Service and concession employees working in the Park, subject to the terms of use of those facilities". Can you please provide a list of those pubs and recreation (“rec”) halls and their locations within Yellowstone National Park?

NPS Response: At Mammoth Hot Springs, the employee pub and rec hall are in two separate buildings behind the Mammoth Hotel. At Roosevelt, the employee pub and rec hall are in one building southeast of Roosevelt Lodge. At Canyon, the employee pub and rec hall are in the basement of the Canyon Lodge Eatery. At Lake, the employee pub is behind Lake Lodge while the employee rec hall is in the Lodge. At Grant, the employee pub and rec hall are in one building behind the dormitories that are assigned to concession contract CC-YELL077-13. At Old Faithful, the employee pub is on Grand Loop Road, across from the Emergency Services building, while the rec hall is in the Old Faithful Lodge.

5. Related to the description on page 9, assuming the concession intends to offer mobile food and beverage service, how soon after the Service approves the Mobile Food and Beverage Service Vehicle Acquisition and Operation Plan will the awarded concessioner be allowed to deploy mobile food and beverage service?

NPS Response: The Concessioner may implement its plan immediately upon Service approval.

6. Will mobile food and beverage service be allowed on land assignments outside of those defined in this contract?

Related question: Please describe any plans the Service has to enable the awarded concessioner to provide mobile food and beverage service in locations currently not authorized for such services.

NPS Response: The Service may approve mobile food and beverage service in developed areas outside of the Concessioner’s land assignment, as shown in Draft Contract Exhibit D, but not in locations within (or immediately adjacent to) another concessioner’s land assignment. See Amendment 1 to the Prospectus and Section 3)B(8) of the Draft Contact Exhibit B Operating Plan for more information about the Service’s objectives and the requirements for the Concessioner’s Mobile Food and Beverage Service Vehicle Acquisition and Operation Plan.

7. Regarding employee housing, pages 9 and 10, where do employees that currently work at the Mammoth General Store live?

NPS Response: The Existing Concessioner’s manager lives on site in a portion of the Mammoth General Store building and employees live outside the Park in Gardiner, Montana in rented RV sites and apartments.

8. Regarding expense assumptions, please identify the 2024 hourly minimum wage the Service relied upon as it considered the implications of this requirement.

Related question: Beginning in 2024, the application of Executive Order 14026 will result in tipped employees earning the same hourly wage as non-tipped employees. During the Service’s consideration of Executive Order 14026 in the analysis of the minimum franchise fee, please explain how this requirement impacted the Service’s analysis of the minimum franchise fee.

NPS Response: The Service will not identify the minimum wage expense assumptions it made for its projections, but it considered all legal requirements associated with minimum wages, including the applicability of Executive Order 14026, in its minimum franchise fee calculation and assumed a significant increase in labor expenses. The Service worked with professional consultants with subject matter expertise to develop its wage expense assumptions. Offerors are responsible for exercising their own due diligence to project expense estimates in consideration of all applicable legal requirements.

9. Regarding the Concession Facilities Improvement Program (CFIP), pages 14-16: Given our experience that cost estimates in Service prospectuses have been low historically versus actual costs, please provide the basis for estimated costs for the required CFIP Real Property Investments.

Related question: Do the CFIP projects listed include design costs? How were these estimates created? Please provide any supporting documentation that is available.

NPS Response: The Service’s CFIP cost estimates include design costs and account for current cost increases due to supply chain issues, higher costs of construction, and other related factors. The Service’s CFIP project estimates are completed per the Denver Service Center Cost Engineering and Estimating Standards, which can be found here: https://www.nps.gov/dscw/ds-cost-estimating.htm.

10. In the prospectus, the Service described the estimated costs for CFIP projects as “estimated in the year of project execution.” Please explain why the Service has represented the estimates with this assumption as opposed to a single point of time in current year dollars from which actual costs can be measured.

NPS Response: The Service used professional consultants, with subject matter expertise, to develop the assumptions and estimates related to investments in the Draft Contract. Costs for projects were escalated to the year when a project and its expenses are at the mid-point of completion to forecast the costs more accurately. As stated in the Business Opportunity, the Service does not guarantee these projections will materialize, assumes no liability for their accuracy, and requires offerors to perform their own due diligence and develop their own estimates of investments for the proposals.

11. The description for CFIP Project 5 states, "The concessioner must construct a new employee dorm at Canyon based on a dormitory design constructed in recent years in other areas of the Park by another concessioner." Can you please provide photos and design/construction specifications (as-built drawings, elevations, construction documents) for this dormitory design to bidders?

NPS Response: The Service does not publish the designs, construction drawings, or specifications;

however, it will make them available to the Concessioner as needed. Additionally, Memorandum Attachment 1: Photographs and Floor Plans below contains images of Teal Dorm, which is the type, style, and layout that the Service seeks for CFIP Project 5.

12. For CFIP Project 4 on the Mammoth General Store, is there any site survey or assessment of building condition that can be shared with bidders?

NPS Response: The Service does not release this information.

13. Regarding CFIP Project 2, can the Service provide information about the existing fire suppression systems that are currently in place in the Old Faithful Upper Store and Old Faithful Employee Dorm Warehouse?

NPS Response: Old Faithful Upper Store and Dormitory currently have a dry pipe sprinkler system. The water service entrance has a double check backflow preventer that leads up and splits off to the fire department connection, and the sprinkler system contains one riser that has check valves on each side of the pipes approaching the Upper Store building and Dormitory. The current building is protected by Silent Knight Model 5207 alarm panel that is listed to be an 8-zone fire alarm panel (expandable up to 16 zones) with a digital communicator that meets NFPA 72 requirements. The fire alarm panel monitors the Dormitory basement, east and west sides of the Dormitory’s main and second floors, and the store’s west storage and sprinkler flow. Additionally, the Dormitory has battery operated smoke detectors that do not communicate with the panel. The Upper Store has no smoke or heat detection.

14. Can The Service provide a floor plan for the current Lake Service Station structure?

https://www.nps.gov/dscw/ds-cost-estimating.htm https://www.nps.gov/dscw/ds-cost-estimating.htm

NPS Response: See Memorandum Attachment 1: Photographs and Floor Plans below.

15. Does the CFIP Project 6, Repurpose Lake Service Station for Food & Beverage, factor any costs to remove walls?

NPS Response: No, the Service’s estimate for repurposing the service station did not factor in the removal of interior walls as this would be a design preference and not a requirement.

16. Pertaining to CFIP Project 9, what areas specifically of the West Yellowstone warehouse parking area can be utilized to construct the requested 25 recreational vehicle sites and ABA/ADA compliant building to house restroom, shower and laundry facilities?

NPS Response: See Memorandum Attachment 1 Photographs and Floor Plans below.

17. Currently, there is a moratorium on all new construction in West Yellowstone, MT unless the builder has a signed building permit from the town. Has a signed building permit been secured by the Service that would enable the awarded concessioner to begin work on the proposed RV sites around the warehouse? If not, what are the plans to do so, and where would these employees live until the RV sites have been constructed?

NPS Response: CFIP Project 9 to Construct New Employee Recreational Vehicle Park at West Yellowstone Warehouse will augment current housing inventory and not displace employees. The location is federally-owned property, so no town-issued building permit is required. The City of West Yellowstone is completing an expansion of its infrastructure and will accept new users upon completion. The Concessioner will secure water and wastewater services from West Yellowstone through an application process, but a building permit is not required.

18. Pertaining to CFIP Project 9, the current forecast from the town of West Yellowstone is that design of a new water/sewer system will be completed in 2024 with construction to take place after that.

Please explain how the Service expects the awarded concessioner to complete employee housing by 2026 if a new water/sewer system has not been completed?

NPS Response: The Service was informed that West Yellowstone’s new wastewater system is projected to be completed by August 2025, which is prior to the required year of completion for CFIP Project 9. See Draft Contract, Section 9 (3) and (4) for information about construction timeline requirements and extensions.

19. Is there a requirement to maintain the current names of the General Stores as described in the prospectus?

NPS Response: The Service’s default assumption is that the names of the stores will not change, and has included the names in Draft Contract Exhibit K Intellectual Property Licensed Marks.

However, if the Concessioner wants to use different names, it must submit in writing the proposed new names and designs for signage for Service approval prior to implementation. Additionally, the NPS will not approve the use of a different name unless the Concessioner agrees that any intellectual property rights in the name would inure to the benefit of NPS, and that the name be added to an amended Exhibit K. See Draft Contract Section 7 and Amendment 1 to the Prospectus in this memorandum above.

20. Will the NPS please provide any available monthly or year-to-date 2022 revenue and visitation information?

NPS Response: The Service has provided the most recent 3-years of historical gross revenues by department (2019-2021), and the Service will not provide 2022 revenue data because 2022 revenue data is not available at this time. Annual Park visitation data is publicly available here:

https://irma.nps.gov/Stats/Reports/Park/YELL.

21. Regarding deferred maintenance: Is the current concessioner contractually required to maintain the assets to prevent DM and deficiencies?

NPS Response: The Existing Concessioner is responsible for maintenance of all Concession Facilities under the Existing Contract. The Draft Contract reflects the Deferred Maintenance anticipated to exist at the effective date of the Draft Contract. The Service expects the Concessioner to manage, prioritize, and validate all DM work.

22. Has the Service conducted a recent condition assessment on the assigned facilities? If so, will the

Service please provide it? If not, why not?

NPS Response: The Service conducted a comprehensive condition assessment of Concession Facilities in 2015. The Service does not release this information.

23. We are surprised to see that there is no assigned government personal property, as noted in Exhibit E. Can the Service confirm that items, for example at the Lake General Store, the massive chandelier and light fixtures, framed photographs, and sculpted timber décor are owned by the current concessioner?

NPS Response: The Service confirms there is currently no assigned government personal property for CC-YELL002-24. The chandelier, light fixtures, and timbers in Lake General Store are part of the historic fabric of the building and not considered personal property. The Service is currently performing an inventory of artwork, framed photographs, and similar historic personal property housed in all YELL002 locations to confirm ownership. The Service intends for the inventory to be complete prior to the award of the Draft Contract. If completed in time, the Service will include a revised Exhibit E Assigned Government Personal Property, if needed, in the annotated CC- YELL002-24 sent to the awardee for review and execution prior to award. Alternatively, if the inventory is complete after the award, the Service will coordinate with the Concessioner to amend the contract, if necessary.

24. What happens in the case that actual costs for one of the CFIP projects exceed the estimated cap as listed in the Draft Contract and as adjusted to reflect par value in the year of actual construction in accordance with the appropriate indexes of the Department of Labor's CPI-U Index, as published by the Department of Labor?

NPS Response: The Service will work with the Concessioner to review the cost and adjust the specific project on a case-by-case basis to avoid the Concessioner exceeding the overall CFIP cap of $33,620,000, as described in Section 9(d)(1) of the Draft Contract.

25. Did the flooding impact any of the other concessions revenue/buildings included in this contract? If so, is it anticipated that any of these impacts will result in revenue changes for this contract?

NPS Response: No, there were no impacts to the YELL002 operation, and no revenue changes are expected due to the flooding.

https://irma.nps.gov/Stats/Reports/Park/YELL

26. How much is the annual revenue from the sale of fishing licenses? How much of this is passed to the concessioner?

NPS Response: Annual revenue data from the sale of fishing permits sold by the YELL002 concessioner is not available. The Concessioner and other fishing permit vendors derive no direct revenue from the sale of fishing permits. For information regarding fishing permit fees, please see Exhibit B: Operating Plan, Page B-25, Attachment 1: Special Use Permit for Fishing Vendor Agreement.

27. Is revenue from employee housing included in the estimated projected revenue and historical revenue provided on pages 11 and 18, respectively?

NPS Response: No, revenue from employee services, including employee housing, is not included in the estimated projected revenue on page 11 or the historical revenue on page 18.

28. The historical revenue presented on page 18 of the Business Opportunity document does not total.

It is off by $36K, $46K, and $46K in each year (2019, 2020, and 2021, respectively). What is included in this number?

NPS Response: See Amendment 1 to the Prospectus in this memorandum, which shows the correct amount of historical revenue by department. The data provided previously was incorrect.

29. Can the monthly or annual reports from the current concessioner for the years of 2019, 2020 and

2021 be provided to bidders?

NPS Response: No, the Service does not release this information. To protect potentially confidential information of the Existing Concessioner, the Service practice is to avoid publishing historical financial data beyond that required by 36 C.F.R. 51.5(f).

30. Will any of the ongoing road/bridge construction projects outlined on page 12 of the Business

Opportunity document adversely impact revenues for this contract?

NPS Response: No, the Service does not expect the described road and bridge construction projects to adversely impact the Concessioner’s revenues.

31. Canyon Village and Old Faithful are listed as locations that the concessioner may, but is not required to, operate year-round. Does the NPS have available data on the revenues of these locations during past winter seasons?

NPS Response: The Existing Concessioner has not historically operated in these locations in the winter.

32. Regarding the Utility Expense, page 17, of the approximately 250 tons of solid waste produced each year, please identify the Service’s allocation for composted, recycled, and landfilled material.

NPS Response: The Service bills the Existing Concessioner for hauling approximately 250 tons, on average annually, of solid waste to the landfill. This figure does not include the Existing Concessioner’s collected recyclables.

33. Please identify the contractor that is contracted to provide routine and emergency medical services beginning in January 2023. In addition, please identify the financial obligation, if any, of the awarded concessioner under CC-YELL002-24 for these services.

NPS Response: The Service awarded the medical services contract to STG International (STGi).

Draft Contract Exhibit B Operating Plan, Section 2L(7) describes the Concessioner’s obligation regarding employee healthcare. The actual financial obligation will depend on how the Concessioner proposes to fulfill this requirement and its number of employees.

Part II. Proposal Instructions

34. Regarding submission format, while none of the subfactors ask for “schematics or drawings”, if the Offeror chooses to include a rendering as part of their response, can the offeror use legal or ledger-size pages to provide this information?

NPS Response: No, since the Service did not ask for schematics or drawings, all responses must be provided on letter size pages.

35. Regarding due dates, can you confirm that the hard copy of Offeror's transmittal letter is not due until January 26, 2023, but the electronic proposal is due on January 19, 2023, as indicated on the prospectus cover?

NPS Response: Offerors must upload their entire proposal electronically, including an electronic version of the Offeror’s Transmittal Letter(s), by 4:00 p.m. Mountain Time on January 19, 2023.

The Service must receive the hard copy of the Offeror’s Transmittal Letter(s) with wet signatures no later than 4:00 p.m. Mountain Time on January 26, 2023.

36. When uploading our final proposal files to Teams, is there a file size limit?

NPS Response: The Service will create a Microsoft Teams site that allows Offerors to upload up to 250GB of files in total.

37. Understanding that some of the submitted questions are easier for the NPS to answer than others, will the NPS consider publishing answers on a rolling basis? Or will the NPS wait until it has compiled answers to all submitted questions and publish a single list of answers? Will the Service allow for a second round of questions?

NPS Response: The Service will publish all responses concurrently. There will not be another opportunity to submit questions about this Prospectus.

38. Regarding the Process of Selecting the Best Proposal, “The Service will select the responsive proposal with the highest cumulative point score as the best proposal. If two or more responsive proposals receive the same highest point score, then the Service will select as the best proposal (from among the responsive proposals with the same highest point score) the responsive proposal that the Service determines on the basis of a narrative explanation will, on an overall basis, best achieve the purposes of 36 C.F.R. Part 51.” Will the Service please explain what is the “narrative explanation” that is mentioned in this part?

NPS Response: The narrative explanation is referring to the panel evaluation document.

39. How will the Service evaluate an Offeror’s ability to provide quality retail services?

NPS Response: While the Service did not include a subfactor question specific to retail services in Principal Selection Factor 2, all the other selection factors ask questions that will assist the service in evaluating an Offeror’s ability to provide quality services, including but not limited to retail. Per 36 C.F.R. § 51.16, for each selection factor, the Service will assign a score that reflects the determined merits of the proposal under the applicable selection factor and in comparison to the other proposals received, if any.

40. Will the NPS commit to providing a written debriefing for all Offerors who request one in a timely fashion? If not, why not?

NPS Response: Service policy provides regional chiefs of commercial services discretion to provide either oral or written debriefings for prospectuses, not both. The Service clarifies that only oral debriefings will be provided for this Prospectus. See Amendment 1 to the Prospectus in this memorandum above.

Part III. Proposal Package

41. Principal Selection Factor 1, Subfactor 1(b): To comply with the Service’s CFIP objectives, the awarded concessioner must take concession facilities out of service. Please identify each facility that the Service intended to be taken out of service, the duration the Service assumed each facility will be out of service, and the impact each facility’s out-of-service duration had on the Service’s financial analysis of the minimum franchise fee.

NPS Response: The Service is interested in receiving proposals that describe approaches with minimal adverse effects to visitor services. The Service assumed only minimal adverse effects to visitor services. Specifically, the selection factor asks offerors to, “(1) Describe how [they] will meet the Service’s objectives to complete CFIP projects on time and within budget and manage the projects in a manner that minimizes adverse impacts to visitor services. (2) Describe [their] approach after contract award for defining the full scope of a CFIP project based on the minimal concept provided by the Service, especially in historic structures where there is little documentation of former changes to the building.”

42. For Subfactor 3(a), the Service asks for “Total gross revenues for the two most recent years of operation in which the Offeror was involved in the business” and similarly for the retail operations.

Should that be the most recent completed years of operation, as noted in the request for the “average check during the most recently completed year or operation season” in the food and beverage question?

NPS Response: See correction in Amendment 1 to the Prospectus in this memorandum above.

43. For Violations or Infractions, Subfactor 3(c) of Principal Selection Factor 3, how should an Offeror present multiple infractions that exceed the five-page total limit for this section?

NPS Response: The Service amends Subfactor 3(c) to adjust the page limits to five (5) pages for parts 1 and 2 and three (3) pages for parts 3 and 4. See Amendment 1 to the Prospectus in this memorandum above.

44. Regarding the Secondary Selection Factor, can the NPS provide information about the current concessioner’s energy use? Can the NPS provide any information about initiatives already in place to increase energy efficiency and reduce solid waste?

NPS Response: Electricity usage data is unavailable to the Service since the Concessioner receives electricity from the provider directly. In addition to the requirements found in the Draft Contract and its Exhibits, information about Service-wide initiatives may be found at Concessions (U.S.

National Park Service) (nps.gov) and Sustainability (U.S. National Park Service) (nps.gov).

https://www.nps.gov/subjects/concessions/index.htm https://www.nps.gov/subjects/concessions/index.htm https://www.nps.gov/subjects/sustainability/index.htm

Part IV. Draft Concession Contract including Contract Exhibits

Draft Contract

45. If due to circumstances beyond the Offeror’s control, the nine CFIP projects are not completed by Year 3 of operations, will the Service consider the situation, or is the only recourse to shorten the contract?

NPS Response: See Draft Contract, Section 1 and Section 9(d)(4) regarding timeline requirements and extensions.

Exhibit A Leasehold Surrender Interest with 40-Year Straight-Line Depreciation

46. Historically, the Service has specifically included language referencing consumer price index (CPI) adjustments to LSI calculations, but this language does not appear in Exhibit A of the draft contract CC-YELL002-24. Can the Service please confirm that LSI value/payment calculations will include adjustment for CPI in accordance with Section 405(a)(3) of the National Parks Omnibus Management Act of 1998?

NPS Response: Reference the Draft Contract, Exhibit A, Leasehold Surrender Interest With 40- Year Straight-Line Depreciation, Section 15 for the methodology used to determine the leasehold surrender interest value in accordance with Section 405(a)(4) of the National Park Service Concessions Management Improvement Act of 1998, title IV of the National Parks Omnibus Management Act of 1998 (54 U.S.C. § 101915(b)(6)(A)).

Exhibit B Operating Plan

47. Page B-7 provides detail around the Lake Employee Recreational Vehicle Park (LERVP). Can you provide the current rental rates for the 21 RV sites allocated to the concessioner under CC- YELL002 and confirm the dates when these RV sites are available for employee use under CC-

YELL002?

NPS Response: The rental rates per site approved by the Service for 2022 are not to exceed $144.67 bi-weekly. The LERVP is open at minimum from May 15 to September 15, and typically is open as early and as long as road, weather, and utility conditions allow. For instance, when possible, LERVP opens by the end of April and closes in October. Concession employees of operations other than the YELL077 contract may stay as long as the LERVP is open.

48. Page B-19, given the composting requirements in the draft operating plan, such as “The concessioner must use compostable materials” and “include composting…programs for solid waste where available,” please confirm whether the Service will provide, or allow for, commercial composting in the Park or region during the term of this contract.

NPS Response: Subsequent to the release of the Prospectus, the Park temporarily suspended composting service, and the program is under review. The Service may consider a project proposal from a concessioner to install a composter, but approval could depend on how the proposal addresses Service concerns and the outcome of the program review referenced above. Requirements in the Draft Contract regarding compostable materials and composting remain.

49. Page B-20, please explain how the Public Health Officer will engage in the approval of menus and sanitation standards for mobile food and beverage service.

NPS Response: The U.S. Public Health Officer will review the Concessioner’s Mobile Food and Beverage Service Vehicle Acquisition and Operation Plan and any supporting documentation to ensure compliance with applicable laws and the feasibility of the plan concerning factors such as inventory management and preparation, sanitation, and storage methods.

50. Page B-21, please confirm whether the awarded concessioner or the Service will be responsible for providing picnic tables where mobile food and beverage service is deployed.

NPS Response: The Service is open to a variety of scenarios regarding picnic tables depending on the location of the mobile food service. However, the Concessioner is not required to provide picnic tables.

51. Are there any cold holding facilities at the warehouse that were not shown on the official site tour?

NPS Response: No, there are no cold holding facilities at the West Yellowstone warehouse that were not toured during the pre-solicitation site visit.

52. Can the Service please provide the contractual service dates/hours of operation for each of the locations listed in the prospectus for the 2023 operating season? Some of the service dates listed on the current concessioner’s website did not match with the actual closing dates this season, thus it is important to understand the exact seasonal opening date and closing date for each location and required hours of operation.

NPS Response: No, the Existing Contract does not require exact seasonal opening and closing dates for each location or required hours of operation. The Existing Contract sets less-than-exact opening and closing dates and the same requirements are stated in Draft Contract Exhibit B:

Operating Plan, Section 2(A).

53. Is there a minimum number of seats that must be available at Fast Casual dining locations? Is there a minimum number of seats that must be available at Family Casual dining locations?

NPS Response: The Service has no requirement for a minimum number of seats.

Exhibit D Assigned Land and Real Property Improvements

54. In Exhibit D, it provides square footage of 1,438 for asset 12478(b) the Bridge Bay Marina Rental Office Store and notes that this is a shared building with YELL077. Can the Service confirm that the concessioner under contract YELL002-24 is only responsible for maintaining the 1,438 square feet assigned under this contract? Additionally, what entity is responsible for repair and maintenance on shared elements of this building such as building roof, HVAC systems, patio areas, parking lots and other elements which support the entirety of this building, not solely the land assignment specific to this draft contract?

NPS Response: As stated in the note at the bottom of the table in Exhibit D, “** This building has a shared occupancy with YELL077. The area shown is YELL002’s portion of the building.” The Concessioner is responsible for its assigned portion of the building, and the adjacent land within the assignment boundary line shown in site plan of Bridge Bay Marina on Page D-10, Sheet No. 6. To repair, maintain, and replace shared components of a shared building, the concessioners involved typically coordinate among themselves and present a project proposal, with cost estimates, to the Service for approval. Often project responsibilities are divided as follows:

• If a component serves only the area it occupies, then the occupying concessioner is responsible. For example, the YELL002 Concessioner is responsible for the furnace that is in the store-side of the building and only heats the store.

• If the project can be broken into definable pieces, like a roof, each entity is responsible for maintaining the portion of the roof that covers its portion of the building, either in coordination with the other parties or by contracting separately.

• If the project cannot be broken into discreet portions, like a shared HVAC system, one entity would contract and manage the repair or replacement and each entity would pay a percentage of the cost equal to the percentage of the building it occupies.

55. Will the concessioner under draft contract YELL002-24 be required to pay rent to the Service for the use of the West Yellowstone Warehouse? If yes, what is the amount for rent annually and are any escalations anticipated?

NPS Response: The West Entrance Warehouse (Asset #14239) is sometimes colloquially called the “West Yellowstone Warehouse.” As a Concession Facility, the Concessioner is responsible for maintenance of the building, but pays no rent.

56. Old Faithful Upper Store, Lake Service Station, and Mammoth General Store are listed in the

Business Opportunity section as historic facilities. Are these considered the only historic facilities?

NPS Response: No, see the Historic (Yes/No) column of Draft Contract, Exhibit D, Assigned Land and Real Property Improvements.

Exhibit H Maintenance Plan

57. Does the park service (specifically at Yellowstone National Park) have a preferred vendor for composting, recycling, solid waste? Can you please provide the company name for the current vendors for compositing, recycling and solid waste?

NPS Response: The Service provides solid waste services, including historically, composting services. The Service’s composting program, however, is currently suspended, and there is no preferred alternative composting or recycling providers for the Concessioner.

58. Can The Service provide a comprehensive list of any buildings/areas in the land assignment that may contain asbestos?

NPS Response: No, a comprehensive list of buildings or areas in the land assignment that may contain asbestos is not available.

59. Can the Service provide information on what Wi-Fi connectivity is available within Yellowstone

National Park including employee areas? Are there projects that the Service is undertaking which would expand/reduce the current level of Wi-Fi connectivity in Yellowstone National Park?

NPS Response: The quality and availability of Internet Service Providers (ISP) available to concessioners and their employees varies significantly by location. West Yellowstone, the South Entrance, and Mammoth Hot Springs have existing broadband fiber connections and services available. Internet services to interior locations of the Park have been provided by Lumen (CenturyLink) over T1 connections, HughesNet via metered data satellite, and AccessParks, via radio-delivered 25 Mbps broadband, but it is limited by challenging terrain. Starlink has recently become an option for broadband with 1TB data limitations on Business Class services. The Service has a proposal from a telecommunications provider to build 190 miles of fiber along the south and north entrance roads and along the grand loop with service drops at each developed location.

Should the Service approve, ISP and fiber options could be available in the next five years.

Visitor access to Wi-Fi is usually limited throughout the park by spotty cellular reception or where it is provided by a concessioner. The Service has a Wireless Communications Services Plan (completed in 2008) that specifies where Wi-Fi can and cannot be provided for visitor access. (This plan is available upon request from Jennifer_Parker@nps.gov.) While Wi-Fi for visitor use is strictly monitored to ensure the expectation of a historic visitor experience, internet service for administrative and employee use is not restricted, except for ensuring compliance with installation of antenna or similar equipment.

60. Can the Service confirm if there are any fire alarm systems installed in any of the structures covered under the land assignment for this prospectus?

NPS Response: Yes, the following facilities have Fire Alarm (Detection) Systems. Listed by FMSS Asset # and description: 14199 Lake Employee Dorm, 14204 Old Faithful Lower Store, 14206 Old Faithful Employee Dorm, 14211 Canyon General Store, 14214 Canyon Adventure Store, 14215 Canyon Employee Dorm, 14216 Tower General Store, 14218 Tower Employee Dorm, 14225 Fishing Bridge General Store, 14229 Grant Village General Store, 14233 Grant Village Employee Dorm, 14237 West Entrance Main Office, 14239 West Entrance Warehouse – HR offices

61. Will the NPS please publish any Historic Structures Reports that have been completed for the assigned facilities? If not, why not?

NPS Response: The Service will not publish Historic Structures Reports during the solicitation period. The reports may be available to the successful Concessioner.

MEMORANDUM ATTACHMENT 1: PHOTOGRAPHS AND FLOOR PLANS

CFIP Project 5 Construct New Employee Dorm to Replace Existing Canyon Employee Dorm

The Service intends for the Concessioner to build a dorm matching this general size, design and layout. The Concessioner must customize the design to the construction site.

CFIP Project 6 Repurpose Lake Service Station for Food and Beverage

Below is the current floor plan of Lake Service Station.

CFIP Project 9 Construct New Employee Recreational Vehicle Park at West Yellowstone Warehouse

Below is the general design the Service envisions for the Employee RV Park. The Concessioner must customize the design to the construction site.