SOW_PD_IDIQ_DRAFT_1.pdf

Attachment 1 – Scope of Work Request for Proposal [add number here] Prospectus Development IDIQ

National Park Service Solicitation [add number here]

PURPOSE:

"Scenery is a hollow enjoyment to the tourist who sets out in the morning after an indigestible breakfast and a fitful night's sleep on an impossible bed." --- Stephen T. Mather, first Director of the National Park

As evidenced by the quote above, Director Mather believed that only a well-rested and well-fed visitor would fully appreciate the wonders of our national parks. Private companies have promoted the parks and served visitors since Yellowstone National Park was designated in 1872. The present-day Commercial Services Program (the Program) is mindful of this legacy, ensuring that visitors have access to high-quality services while visiting our natural and cultural treasures.

Under federal law, the National Park Service (NPS) uses concession contracts to allow private companies to provide commercial visitor services at reasonable rates in units of the NPS. The law also requires the NPS to provide the private companies a reasonable opportunity for a net profit in relation to the capital invested and the obligations of the contract. The NPS has developed regulations guiding the content and use of prospectuses for concession contracts and has extensive policies for this process and for managing concession contracts once awarded. The NPS has issued concessioner contracts for a variety of commercial visitor services including lodging, restaurants, transportation, ferry services, retail, backcountry guides, and others. Currently, the NPS has more than 500 concession contracts in approximately 150 parks in the System.

The NPS has a knowledgeable and experienced staff capable of effectively and professionally soliciting and managing concession operators. The NPS seeks specialized hospitality consulting firms to develop prospectuses to recommend to the Government for soliciting competition for concession contracts through strategic business advice and the development of quality reports. A prospectus contains an accurate description of the business opportunity and recommended selection criteria that allows the NPS to attract and subsequently select the best bidder for the contract. This is analogous to the purchase and sale of businesses in the private sector, but the NPS, as the government entity with title to the land and improvements, ultimately ensures quality visitor services.

Under this solicitation, the NPS expects to issue task orders for prospectus development of concession contracts that already have expired or will expire by their terms between 2020 and 2025. Services under these concession contracts include full-service resorts (lodging, food and beverage, retail, tours), ferry services, marinas, large food and beverage and retail operations, tour vessels, and backcountry guides.

In addition to the concession contract authority described above, The Visitor Experience Improvement Authority (VEIA) under the 2016 National Park Service Centennial Act (Pub. L. 114-289) allows the NPS to use new processes and its implementing regulations to solicit and award commercial services contracts. The NPS may require in these contracts for the contractor to analyze the services under a various types of commercial services, including management agreements or percentage lease agreements common in the private sector hospitality sector. Since the contract methods under VEIA are not precisely defined, the NPS also may require the contractor to develop other competitive methods for more unique operations, such as multi-park campground operations. When using the VEIA authority, public solicitations for bids for commercial services contracts are called Requests for Qualifications and Requests for Proposals rather than Prospectuses.

To assist bidders to understand the magnitude and complexity of these projects, the NPS provides the following general guidance. Projects range from a 3-month market analysis of a single-service, single-location operation that grosses $200 thousand a year to a 3-year full prospectus development project for an operation that grosses over $10 million a year and features as many as 10 or more service types spread across several locations.

The Program’s website https://www.nps.gov/subjects/concessions/index.htm contains further information on the Program and prospectuses currently out for solicitation.

STATEMENT OF WORK FOR PROSPECTUS/REQUEST FOR QUALIFICATIONS AND REQUEST FOR

PROPOSAL (RFQ & RFP) DEVELOPMENT:

The following consultant services may be required to provide recommendations to the NPS in the development and analysis of concession contract prospectuses and requests for proposals.

Task 1. Project Due Diligence Task 2. Market Analyses Task 3. Rate Study Task 4. Personal Property Valuation and Replacement Schedule Task 5. Financial Analysis and Scenario Meeting Task 6. Initial Prospectus and RFQ & RFP Development Task 7. Roundtable Meeting Preparation and Execution Task 8. Final Documents Preparation and Delivery Task 9. Panel Support Task 10. Additional Scenario Analysis

The following paragraphs detail the types of general services the NPS will require, on a task order basis, under this contract. The detail provided for each service is not all-inclusive, but representative of the range of work that could be required depending on the requirements of the specific task order. Henceforth in this document, the term “prospectus” refers to “RFQ & RFP” as applicable.

Many of these services build on each other to conclude with a thoughtful, complete, and accurate Financial Analysis. Some task orders may require the consultant to perform only one or two of the services while others may require all described services.

The NPS requires the consultant to travel under this scope of work including, at times, to remote locations, some of which require travel on foot, boat, or other conveyance.

Quality Assurance Plan - The Government will require the contractor to submit a proposed Quality Assurance Plan for the Government’s consideration in development of the Government’s plan. Quality assurance will require clear, accurate, and on time in-house and subcontractor deliverables using, in-house quality control processes including, at a minimum, internal review and development and use of a quality assurance checklist.

1. Project Due Diligence

Due diligence consists of gathering information from numerous sources to develop a highly marketable business opportunity and draft requirements for a new concession contract for commercial visitor services. This Due Diligence often requires travel. Project due diligence may include, but is not limited to the following: collect and organize applicable background and historical data relative to the existing concession contract; facilitate discussions with NPS staff to resolve concerns through meetings and interviews; meeting with local, state, and national tourism organizations to understand current and projected visitation trends.

To ensure excellent project due diligence, the NPS requires the personnel filling the roles defined as Key Personnel in this solicitation (the consultant project manager and lead analyst) to visit the subject park or park area and, whenever possible, experience the services in operation.

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

The consultant must perform due diligence as part of the services required under items 2 through 7 in this statement of work.

2. Market and Demand Analyses

The NPS uses market and demand analyses to understand future demand expectations for commercial visitor services, to identify visitor needs and desires, and to identify how the operation and the surrounding market meet these needs and desires. The consultant will use the market analysis for projecting future demand in the financial analysis (below).

For a future contract (including existing and potential new visitor services), the consultant will perform a thorough and impartial assessment to identify factors that affect the proposed business opportunity, analyze the existing and future demand for existing or proposed services (or both), evaluate the business performance of the current operator, and undertake other appropriate analysis that tie the market performance directly to the proposed operation.

Most task orders will identify specific analyses and require recommendations explicit to issues found at the subject park.

3. Rate Study

Federal law applicable to the NPS’s concession program requires the NPS to approve the rates concessioners charge to visitors to ensure such rates are reasonable and appropriate.

Primarily, the NPS determines rates by comparing them to rates for facilities, goods, and services of comparable character under similar conditions outside a park. This process typically involves on-site reviews and analyses of the comparable operations and is applicable to overnight accommodations, campgrounds, marinas, tour operations, guides and outfitters, and other services as appropriate.

The NPS may require the consultant to perform Comparability Full Reviews (Full Reviews) to recommend comparable businesses and rates for either or both of the following:

● the existing operation

● future operations as defined during prospectus development (and used in the financial analyses described below)

Full Reviews require the consultant to identify businesses outside of the park that will serve as potential and actual comparable businesses based on their similarity to the concession operation. It requires the consultant to collect information regarding specified criteria about those businesses, analyze the criteria to determine comparability to the concession operation, and recommend rates, taking into consideration operating differences, for NPS review.

The NPS may request the consultant use alternative methods, such as financial analysis or core method, to determine reasonable and appropriate rates.

The current Concessions Management Rate Administration Guide is available upon request on the Program’s website.

4. Personal Property Valuation and Replacement Schedule https://www.nps.gov/subjects/concessions/rate-administration.htm

The NPS uses personal property valuation and replacement schedules to help develop the estimate of the future concessioner’s financial investments under a new contract.

The NPS defines personal property as property necessary to successfully operate the business all furniture, equipment, machinery, vehicles, and any fixtures (such as trade fixtures) that are not real property fixtures as defined by 36 C.F.R. 51.51. The NPS does not require the valuation of inventory (merchandise) and supplies as a part of the personal property valuation. The consultant generally develops an estimate for the value of such property through review of historical financial information and interviews with existing concessioners.

The consultant will determine the value of personal property needed to begin operation of the new contract and evaluate the effect on the investment if the operator purchases some or all of this personal property from the existing concessioner and obtains the balance elsewhere. For the replacement schedule, the consultant will develop and deliver an assessment of the current condition and remaining useful life of all personal property and determine the appropriate replacement schedule.

The valuation requirements may differ depending on the type of contract, which the NPS will specify in individual task orders. The NPS requires detailed spreadsheets (in a format capable of manipulation) to substantiate the valuation and replacement schedules. On occasion, the NPS may require photographs to accompany the valuation for unique or costly personal property.

5. Financial Analysis and Scenario Meeting

The NPS uses a financial analysis to determine the financial profile of future contracts. The financial analysis includes consideration of the previously described items as well as the term of the contract, maintenance requirements, and capital investments, of various scenarios. The financial analysis includes the consultant’s recommendations on these items, the internal return to the concessioner to obtain high quality proposals for the operation, and the minimum franchise fee for the NPS.

The financial analysis may vary in complexity, depending on the number, type, or location of the operation. The NPS also may request financial and viability analyses that consolidate or split apart several current contracts and for potential contracts that currently operate under different authority.

To develop the recommended minimum franchise fee the consultant will:

● Review the historical financials

● Develop a buildup of future financial performance

● Create the framework to evaluate different operating and investment scenarios

● Determine profitability using the investment analysis

● Provide detailed historical and projected concessioner payroll information

The consultant will perform a thorough and impartial assessment of the financial viability of the business opportunity and capital investment requirements using standard NPS methodology. Generally, the consultant will compare these business opportunities with businesses of a like kind that exists in a competitive environment.

The consultant will incorporate all information and analyses, including recommendations from the market and demand analysis and the rate study, into specialized reports and presentations.

The NPS will provide the consultant information gathered from other sources to incorporate into the financial analysis.

a. Incorporating Maintenance Costs for Projects with Facilities Assigned for the Operation

● The NPS will complete Real Property Comprehensive Condition Assessments under a separate IDIQ contract. The NPS will provide consultants with the maintenance costs based on those assessments to incorporate into the financial analysis. The NPS also may provide costs from other sources for the consultant to include in its financial analysis. The consultant must adjust the maintenance costs over the term of the contract and include maintenance operational expenses into the financial model.

● The NPS will provide the maintenance costs by asset for most projects, so consultants can manipulate them as needed to develop different scenarios for the future contract.

b. Concession Facility Improvement Programs (CFIP) (When Applicable)

● Service will provide construction cost estimating for real property improvements, including capital improvements, for the consultant to incorporate into the financial model.

● The NPS also will provide a revised maintenance schedule if CFIPs affect scheduled or deferred maintenance for the consultant to incorporate into the financial model.

● The consultant must estimate all related personal property investment requirements that accompany

CFIPs.

c. Estimated Insurance Premium

● The NPS currently and will continue to contract for insurance premium and limit recommendations under a separate IDIQ contract.

● Initially, the consultant will provide an estimated insurance premium based on adjusted historic costs.

● The NPS will provide a final estimated cost of the operation’s annual insurance premium for the consultant to include into the financial model later in the process and will provide final insurance document.

d. Scenario Meeting

● The consultant will provide guidance and recommendations to the NPS in making sound business decisions relating to the contract structure and required elements of the new contract. The consultant will present the financial model on a real-time basis and allow the NPS to see the effects of previously identified scenarios on the contract as different scenarios are discussed.

The results of the financial analyses provide a recommended financial structure for the contract that includes a minimum franchise fee, initial investment requirements, the term, operating standards and requirements, and other necessary contract elements.

6. Initial Prospectus and RFQ & RFP Development

The NPS may require the consultant to provide guidance and recommendations in the preparation of components of the prospectus, including development of the business opportunity section and provide guidance and recommendations with development of contract documents. The possibility of this occurring depends in part on the available resources at the park and regional levels. This process includes writing and editorial services to produce a high-quality prospectus in accordance with NPS policies and standards.

7. Roundtable Meeting Preparation and Execution

The NPS may require the consultant to facilitate a Roundtable meeting. The objective of the Roundtable meeting is to allow an opportunity for the Region, WASO, and Department of the Interior Solicitor’s Office to review and comment on the prospectus, and to consolidate and expedite changes to the prospectus. The NPS and consultant review the main sections of the prospectus and resolve related issues during the Roundtable meeting. After the Roundtable meeting the consultant will prepare and submit a Post Roundtable Memo describing the decisions made and resolution of issues.

8. Preparation and Delivery of Final Draft Prospectus Documents

The NPS may require the consultant to prepare and deliver the final draft prospectus documents. The consultant will incorporate into the final draft prospectus documents the material and editorial changes made at the Roundtable, the changes resulting from resolution of issues identified in the Post Roundtable Memo, and any additional information developed after the Roundtable and authorized by the COR for incorporation.

9. Panel Support and Additional Scenario Analysis

a. Panel Support

● The NPS may require the consultant to provide guidance and recommendations to the NPS in the evaluation of bidder proposals to the prospectus. The request may include evaluation of the financial investment factors or other technical subject matters specific to a prospectus.

b. Additional Scenario Analysis

● The NPS may require the consultant to update the financial analysis to include additional scenarios identified post scenario meeting and facilitate a second scenario meeting.

STATEMENT OF WORK FOR BUSINESS ADVISORY SERVICES

The Program may require professional hospitality consultation including providing guidance and recommendations in assessing the business implications of existing policies and regulations to provide a consistent approach to park and regional concession activities. All Business Advisory Services requests will be for specific services for a defined period of time and result in a final deliverable.

The scope of service may include any number of the following components or other items as requested by the Program:

1. Provide overall strategic support and guidance on matters related to the business and financial aspects of the Program.

2. Develop training programs and provide periodic training sessions in various areas related to concession contracting and managing the Program in general, e.g., prospectus development, contract management, and financial analysis.

3. Attend key meetings as hospitality industry professionals, as requested by the Program Chief not to exceed the number of meeting specified in each task order.

4. Provide consultation and expert witness support related to the hospitality and recreation industries.

5. Provide guidance and recommendations to the NPS in developing communications tools for the Program.

6. Provide guidance and recommendations to the NPS with overall strategic and contract-specific planning to include the business and financial components of commercial services plans or strategies, general management plans, development of capital improvement plans, and other economic and business plans.

7. Provide guidance and recommendations to the Chief of the Program with unique analysis related to NPS business and financial issues. The consultant should be prepared to provide, as outlined in Task Order requirements, various research, analytical, or advisory services. These services may include such tasks as strategic business planning facilitation for an entire region, economic analyses for parks, transition planning, economic effects analysis for a specific contract, or operational audits.

8. Create financial models and other tools to analyze information about existing and future commercial services opportunities for the NPS. This could include a standard model for all consultants to use to provide consistent information and analysis to the NPS from project to project.

DATA USE AND CONFIDENTIALITY

All data gathered and all products developed by the consultant, including unique analysis tools, will belong to the NPS. This includes all business models (market, financial, and others) submitted in a format capable of manipulation. Deliver reports and spreadsheets in Microsoft Office 2016 (or higher) and the Adobe Frutiger Std font package for certain deliverables. Provide clear and logical financial models that NPS financial analysts will understand. Submit deliverables meeting Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. Section 794d).

The following confidentiality requirements apply to this IDIQ:

Disclosure of NPS-provided Information:

The NPS considers Information to include written, verbal, and electronic information and NPS policy, processes, and procedures as confidential government information.

The consultant must notify each of its employees in writing to whom it provides Information that they may disclose such Information only for a purpose and to the extent expressly authorized by the NPS as described under Section C below.

Information Non-Disclosure:

All consultant employees must sign and submit to the NPS an NPS-approved non-disclosure agreement. The details of any security safeguards that the consultant may design or develop under this contract are the property of the NPS, and the consultant may not publish or disclose them in any manner without the prior written consent of the Contracting Officer.

Consultant Use of Disclosed Information:

The NPS will make Information available to the consultant for the performance or administration of this effort, and the consultant may use this Information only for those purposes and may not use the Information for any other purpose or in any other way without the prior written agreement of the Contracting Officer.

The consultant may not divulge or make known in any manner Information to any person except as may be necessary in the performance of this contract. Disclosure to anyone other than an authorized officer or employee of the consultant requires the prior written consent of the Contracting Officer.

The consultant must account for all Personally Identifiable Information upon receipt and properly store such information before, during, and after processing. The consultant must give all related output the same level of protection as required for source materials.

The following conflict of interest limitations are applicable to this IDIQ:

• The consultant must not exploit its professional relationship or use confidential NPS Information to provide an advantage to existing or potential NPS concessioners, lessees, or Commercial Use Authorization (CUA) holders.

• A consultant may not advise current or known potential NPS concessioners, lessees, or CUA holders on NPS Information.

• A consultant cannot directly benefit from information received from its work with the Program about solicitations. This includes providing assistance to prospective bidders in preparing for or submitting offers on any prospectuses or RFPs issued by the Program.

• Without prior written permission of the Contracting Officer and the Program Chief, a consultant may not engage a subcontractor to assist in performance of a task order when the subcontractor operates under a NPS permit, including concession contract, lease or CUA.

• When the consultant discovers a potential conflict of interest, the consultant must report it immediately to the Contracting Officer and Contracting Officer’s Representative.

Understand the regulations and all other Applicable Laws that guide the Program and that all work performed under this contract must conform to the following and all other Applicable Laws.

• 1965 Concession Policy Act, (Pub.L. 89-249)

• National Park Service Concessions Management Improvement Act of 1998 (Pub.L. 105-391, Title

IV)

• 36 C.F.R. Part 51

• 36 C.F.R. Parts 17 and 18 (Leasing)

• National Park Service Management Policies

• 2016 National Park Service Centennial Act (Pub. L. 114-289) Title VII

Conflict of Interest In the event of identification of an actual or potential conflict of interest, vendor must report the actual or potential conflict of interest immediately upon discovery to the Government.

The Government considers personnel co-located in Commercial Services Program offices performing work under other contract vehicles as having a potential conflict of interest.

In the case of identification of any actual or potential conflicts of interest the vendor must immediately:

• Provide a detailed plan to avoid, mitigate and neutralize the actual or potential conflict with each actual or potential conflict of interest. If a bidder is aware of multiple actual or potential conflicts of interest, the bidder must identify each actual or potential conflict individually and provide for each its own unique plan to avoid, mitigate, or neutralize the actual or potential conflict. If the plan is not deemed acceptable to the Government this may result in immediate contract termination.

• For personnel co-located in Commercial Services Program offices performing work under other contract vehicles, vendor provide a mitigation plan that addresses how the offeror will neutralize any potential or actual conflict of interest that may occur because of the location of applicable offeror personnel. If the plan is not deemed acceptable to the Government this may result in immediate contract termination.