LODGING, FOOD AND BEVERAGE, RETAIL, RV …€¦ · Certain federal laws apply to this solicitation including the National Park Servic e Concessions Management Improvement Act of 1998

BUSINESS OPPORTUNITY

LODGING, FOOD AND BEVERAGE, RETAIL,

RV PARK, FUEL, and OTHER SERVICES

at

BIG BEND NATIONAL PARK

DEPARTMENT OF THE INTERIOR

NATIONAL PARK SERVICE

INTERMOUNTAIN REGION

Contract Number CC-BIBE002-19

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CC-BIBE002-19 Business Opportunity Table of Contents

TABLE OF CONTENTS

Introduction.................................................................................................................................................... 1

Site Visit .................................................................................................................................................... 1

Information Regarding this Solicitation ................................................................................................. 1

Proposals................................................................................................................................................... 2

Summary of Term and Conditions of the Opportunity ........................................................................ 3

The National Park Service........................................................................................................................ 4

Purpose of Big Bend National Park .......................................................................................................... 4

Park Location and Description ................................................................................................................. 5

Concession Opportunity ................................................................................................................................. 6

Draft Contract Term ................................................................................................................................. 6

Required and Authorized Services ......................................................................................................... 6

Overview of Required Services ............................................................................................................... 7

The Lodge ............................................................................................................................................... 7

Lodging ................................................................................................................................................... 7

Food and Beverage .................................................................................................................................. 7

Retail ....................................................................................................................................................... 8

Fuel Service Station ................................................................................................................................. 8

Recreational Vehicle Park......................................................................................................................... 8

Public Laundry and Showers .................................................................................................................... 8

Employee Services ................................................................................................................................... 8

Overview of Authorized Services ........................................................................................................... 9

Transportation ......................................................................................................................................... 9

Estimated Revenue and Expense Projections ........................................................................................ 9

Personal property .................................................................................................................................. 10

Maintenance of Concession facilities ..................................................................................................... 10

Utilities .................................................................................................................................................. 10

Leasehold Surrender Interest ................................................................................................................. 11

Franchise Fee ......................................................................................................................................... 11

Other Operating Considerations .......................................................................................................... 12

Lodge Loading Dock Stabilization .......................................................................................................... 12

Assigned Government-owned Personal Property ................................................................................... 12

Investment Analysis ...................................................................................................................................... 12

Concession Facility Improvement Program .......................................................................................... 12

CC-BIBE002-19 Business Opportunity Table of Contents

Summary of CFIP Cost and Schedule ..................................................................................................... 12

Upgrade Fuel Dispensers ....................................................................................................................... 13

Lodging improvements and Renovations ............................................................................................... 13

Quick Service Food and Beverage in the Lodge ...................................................................................... 14

Quick Service Food and Beverage in Panther Junction Service Station .................................................... 14

Backup Generators ................................................................................................................................ 14

Construct Employee Housing ................................................................................................................ 15

Initial Investments ................................................................................................................................. 15

Initial Personal Property ......................................................................................................................... 15

Start-up costs and working capital ........................................................................................................ 15

Deferred Maintenance ........................................................................................................................... 15

Market Area Overview .................................................................................................................................. 16

Lodging ................................................................................................................................................... 16

Food and Beverage ................................................................................................................................ 16

Retail ....................................................................................................................................................... 16

Fuel Service ............................................................................................................................................. 16

Recreational Vehicle (RV) Park .............................................................................................................. 16

Historical Visitation and Concession Operations ............................................................................................ 17

Visitation................................................................................................................................................. 17

Seasonality ............................................................................................................................................ 17

Existing Concessioner ............................................................................................................................ 17

Historical Revenues ................................................................................................................................ 18

Links to Additional Information..................................................................................................................... 18

Preferred Offeror Determination ................................................................................................................... 18

Note: Unless otherwise stated, all images contained in Business Opportunity document are from the NPS.

CC-BIBE002-19 Business Opportunity Page 1

INTRODUCTION

SITE VISIT The Service will host a site visit for organizations interested in bidding on this opportunity on the date listed on the inside front cover of this Prospectus. The site visit provides interested organizations an overview of the concession operation, along with a tour of the Concession Facilities assigned to the Concessioner under the Draft Contract. Each interested Offeror will be limited in the number of site visit attendees, and all attendees must be over the age of eighteen. If you plan to attend the site visit and would like more information, please contact:

Daphne Sewing

Operations Supervisor, Interpretation and Visitor Services, and Acting Concessions Liaison

Big Bend National Park

Phone: 432-477-1110

Email: [email protected]

Please register for the site visit at least one week in advance. When registering, you must provide your name, the name of the organization interested in bidding that you represent, the primary contact for the organization, and the number of people in your party. All parties attending the site visit must disclose to the Service the names of the interested organizations engaging their services. The Service will provide further information and additional directions by return email message to the primary contact.

INFORMATION REGARDING THIS SOLICITATION In this document, the National Park Service (“Service”) refers to Big Bend National Park as “the Park.”

This Prospectus includes Service estimates of revenue and expenses to assist Offerors in developing financial projections. These estimates reflect Service assumptions based on planning decisions, historical concession operating data, industry standards, economic conditions, and comparable and competitive operations. The Service does not guarantee these projections will materialize and assumes no liability for their accuracy. Offerors must compile and present their own financial projections based on independent assumptions, due diligence, and industry knowledge.

Offerors must review all sections of this Prospectus, especially the terms and conditions of the Draft Concession Contract No. CC-BIBE002-19 (”Draft Contract”), including its exhibits, to determine the full scope of a future concessioner’s responsibilities. The Draft Contract with all exhibits appears in Part IV of this Prospectus. In the event of any inconsistency between the description of the terms contained in this Prospectus and the Draft Contract itself, the terms of the Draft Contract will prevail.

Certain federal laws apply to this solicitation including the National Park Service Concessions Management Improvement Act of 1998 (Public Law 105-391 and hereafter referred to as “the 1998 Act”), as implemented by regulations in 36 C.F.R. Part 51. Links to these are available online at https://concessions.nps.gov/regulations.htm. In the event of any inconsistency between the terms of this Prospectus and 36 C.F.R. Part 51, 36 C.F.R. Part 51 will control.

“Concessioner” refers to the entity that will be the concessioner under the Draft Contract.

“Existing Concessioner” refers to Big Bend Resorts, L.L.C., the concessioner under Concession Contract No. CC-BIBE002-08 (“Existing Contract”). The Existing Contract commenced on July 1, 2008, and expires on June 30, 2019. See the Appendices Table of Contents for how to request a copy of the Existing Contract.


PROPOSALS Part II of this Prospectus contains the instructions about completing proposals. Offerors must carefully read and comply with those instructions.

Part III of this Prospectus contains the Proposal Package Offerors must complete in its entirety. The Proposal Package contains a required transmittal letter, five principal selection factors, and three secondary selection factors. Each selection factor identifies the minimum and maximum points the Service may award depending on the quality of the response. The following paraphrases the information sought under each selection factor. The wording of the actual selection factors in the Proposal Package controls.

Principal Selection Factor 1 requires Offerors to describe how they will protect the resources of the Park, specifically through the maintenance of historic facilities and water conservation.

Principal Selection Factor 2 requires Offerors to describe how they will provide some aspects of the required services, specifically food and beverage operations and room renovations.

In Principal Selection Factor 3, Offerors must describe their organizational structure and provide documentation to help the Service understand the offeror and its relationship to other entities. The Service does not score that information specifically but may use it to understand responses elsewhere in a proposal. Incomplete submissions may lead to a lower score elsewhere if the information submitted does not support claims made in response to specific subfactors in this and other selection factors. The Service has provided forms Offerors must complete depending on their organizational structure. The rest of this principal selection factor requires Offerors to describe their experience providing similar services, aspects of employee management to provide excellent customer service, and history and strategies to minimize violations and infractions.

In Principal Selection Factor 4, Offerors must provide documentation demonstrating that they have the financial resources to commence and carry on operations under the Draft Contract. The Service has provided a business history form and Excel workbook Offerors must complete in providing responses to this selection factor.

In Principal Selection Factor 5, Offerors must provide the franchise fee they will pay on gross receipts generated under the Draft Contract. Failure to agree to pay the minimum franchise fee set out in the selection factor will result in the Service finding the proposal non-responsive and ineligible for award of the Draft Contract.

Secondary Selection Factor 1 requires Offerors to describe strategies they will use to manage solid waste within the Park.

Secondary Selection Factor 2 requires Offerors to provide their timetable and other information for the Employee Housing Construction Project.

Secondary Selection Factor 3 requires Offerors to describe additional projects, operating procedures, or maintenance commitments providing for the enhancement of the visitor experience.


SUMMARY OF TERM AND CONDITIONS OF THE OPPORTUNITY Location – Four sites within Big Bend National Park: Chisos Basin, Panther Junction, Rio

Grande Village, and Castolon

Draft Contract Term – 10 years

Projected Effective Date – July 1, 2019

Required Services – Lodging, Food and Beverage, Retail, Fuel, Recreational Vehicle Park, Public Laundry, and Public Showers

Year 1 (2019-2020) Projected Gross Receipts – $8.5 – $9.5 million

Estimated Initial Investment (Year 0) – $1,436,200

Deferred Maintenance (Year 1) - $226,000

Estimated Concession Facility Improvement Program, including personal

property, Investment (Years 1 and 2) – $4,401,600 - $5,151,600

Minimum Franchise Fee – 13% of Gross Receipts

Personal Property Reserve – 1% of Gross Receipts

Component Renewal Reserve – 3.2% of Gross Receipts

Repair and Maintenance Expense – 1.8% of Gross Receipts


THE NATIONAL PARK SERVICE In 1916, President Woodrow Wilson approved legislation creating the Service within the Department of the Interior. That legislation mandated that America’s National Park Service was created by Congress to:

…conserve the scenery and the natural and historic objects and the wild life therein and to provide for the enjoyment of the same in such manner and by such means as will leave them unimpaired for the enjoyment of future generations. 54 U.S.C. § 100101(a)

Additionally, Congress declared that the National Park System should be:

…preserved and managed for the benefit and inspiration of all the people of the United States…. 54 U.S.C. § 100101(b)

The National Park Service preserves unimpaired the natural and cultural resources and values of the National Park System for the enjoyment, education, and inspiration of this and future generations. The Service cooperates with partners to extend the benefits of natural and cultural resource conservation and outdoor recreation throughout this country and the world. Visit the National Park Service website to learn more about the National Park Service. This site includes information about the Service's mission, policies, and individual park units.

PURPOSE OF BIG BEND NATIONAL PARK Big Bend National Park preserves a large area of the Chihuahuan Desert, encompassing spectacular wilderness character, scenic values, natural dark skies, and the biological and geological diversity of the Big Bend area, including the Chisos Mountains and the Rio Grande and its canyons. The Park provides for the benefit and recreational enjoyment of the public, with opportunities to experience remoteness and the international flavor of the US-Mexican border, and works cooperatively toward binational management of resources.

http://www.nps.gov/


PARK LOCATION AND DESCRIPTION

Big Bend National Park protects 801,163 acres, including 118 miles of the Rio Grande, 69 miles of which is protected as a National Wild and Scenic River. Elevations within the Park range from 1,800 feet to nearly 8,000 feet above sea level. With over 100 miles of paved roads, 150 miles of dirt roads, and about 200 miles of hiking trails, the Park offers nearly limitless opportunities for scenic driving, hiking, camping, backpacking, mountain biking, horseback riding, bird watching, wildlife observation, and stargazing. These maps, from Google Maps, are graphical representations designed for general reference purposes only. For more information about the Park’s amenities, history, and natural resources, visit www.nps.gov/bibe.

The table at left lists the approximate average driving time from the Concession administrative offices in Chisos Basin to each of the other Park locations with a concession operation.

From Chisos Basin (location of concession headquarters) to

Approximate Drive Time in minutes

Castolon 50-60

Panther Junction

20-30

http://www.nps.gov/bibe


CONCESSION OPPORTUNITY

The Concessioner will operate the following services year-round: Chisos Mountains Lodge (a lodging complex encompassing 72 units), a full service restaurant, two quick service food outlets, five retail outlets, two fuel service stations, a recreational vehicle park, public laundry, public showers, and employee services. Rates charged by the Concessioner are subject to approval by the Service. Section 3(B) of Exhibit B (“Operating Plan”) to the Draft Contract lists the rate methods for all visitor services.

DRAFT CONTRACT TERM The term of the Draft Contract is 10 years. The Service anticipates the effective date of the Draft Contract will be July 1, 2019.

REQUIRED AND AUTHORIZED SERVICES The tables below list the Draft Contract’s Required and Authorized Visitor Services. The Concessioner must provide the Required Services year-round and is authorized, but not required, to provide the Authorized Services. The Draft Contract, including its exhibits and attachments, contains details regarding visitor services.

Required Visitor Services

Service Location

i. Lodging Chisos Basin

ii. Food and Beverage Chisos Basin and Panther Junction

iii. Retail Chisos Basin, Castolon, Panther Junction, and Rio Grande Village

iv. Fuel Service Station Panther Junction and Rio Grande Village

v. Recreational Vehicle Park Rio Grande Village

vi. Public Laundry Rio Grande Village

vii. Public Showers Rio Grande Village

Authorized Visitor Service

Service Location

i. Transportation Sites within the Park as approved by the Service

The Service sets the operating standards and evaluates the Concessioner’s compliance as set out in the Service Standards and Periodic Evaluations available on the Concessioner Tools page of the NPS Commercial Services website. The Service further defines the Lodging and Food and Beverage services into distinct classifications, as described below and in the Operating Plan.

https://concessions.nps.gov/tools_others.htm

https://concessions.nps.gov/tools_others.htm


OVERVIEW OF REQUIRED SERVICES

THE LODGE

“The Lodge” is the common name for the building central to concession operations in the Chisos Basin. This historic, Mission 66-era building currently houses the reception desk for the lodging operation, administrative offices, retail space, public restrooms, patio seating, a full-sized kitchen, and the Park’s only restaurant (classified as “Family Casual”) and bar. The Draft Contract requires the Concessioner to convert the existing employee dining room into a “Quick Service” food and beverage outlet as explained under the Concession Facility Improvement Program (CFIP) section below.

LODGING

The Draft Contract requires the Concessioner to provide “Midscale” lodging accommodations at Chisos Basin consisting of 72 rooms comprised of four different room types: Casa Grande, Rio Grande, Emory Peak, and Roosevelt Stone Cottages.

The Service intends for the Concessioner to refresh the rooms by installing new fixtures, personal property, soft goods, and amenities, as described below under the CFIP section.

Rates for the Concessioner’s core rooms (Rio Grande and Casa Grande units) will be based on the Comparability method. Emory Peak and Roosevelt Cottages will be considered “non-core”; therefore, room rates may be set based on market conditions.

The Draft Contract prohibits the Concessioner from providing televisions as a standard room amenity to minimize light and noise pollution but the Concessioner may rent volume-controlled video devices and media to guests.

FOOD AND BEVERAGE

Under the Draft Contract, the Concessioner must operate the Park’s only full-service restaurant inside the Lodge at Chisos Basin, serving breakfast, lunch, and dinner in the “Family Casual” style with approximately 88 seats. A bar adjacent to the dining room also serves food and provides about 20 additional seats.

To relieve overcrowding at the restaurant during peak meal times and give visitors an additional food and beverage option, the Concessioner must convert the existing employee dining room in the Chisos Lodge building into a “Quick Service” food and beverage alternative. Visitors will be able to purchase quickly made or grab-and-go food.

Roosevelt Stone Cottage

Casa Grande Units


To further increase the dining options in the Park, the Draft Contract requires the Concessioner to convert a portion of the interior of the Panther Junction Service Station into a “Quick Service” outlet as well. More about these projects to improve food and beverage services appears below under the CFIP section.

RETAIL

The Draft Contract assigns the Concessioner 10,382 total square feet (SF) of retail space at five locations: Chisos Basin Lodge Gift Shop (780 SF), Chisos Basin Store (2,924 SF), Panther Junction (924 SF), Rio Grande Village (2,793 SF), and Castolon (2,961 SF). The Concessioner will sell gifts/souvenirs, apparel, convenience items, camper goods, groceries, beer/wine, ice, and propane. Additionally, the Draft Contract requires the Concessioner to provide vending machines at each retail location, except the Lodge and Castolon, to make beverages available 24 hours a day.

FUEL SERVICE STATION

The Draft Contract requires the Concessioner to provide two fuel service stations, consisting of three self-service fuel dispensers at the Panther Junction Station and two self-service dispensers at the Rio Grande Village Station. The CFIP section below describes the required upgrades to the fuel dispensers to meet credit card reader requirements and make the dispensers self-service 24 hours per day.

RECREATIONAL VEHICLE PARK

At Rio Grande Village, the Draft Contract requires the Concessioner to operate a 25-site recreational vehicle (RV) park with utility hookups, pedestal barbeques, and picnic tables. Visitors register at the camper store located across an adjacent parking lot.

The Service manages three additional campgrounds without hookups within the Park.

PUBLIC LAUNDRY AND SHOWERS

The Draft Contract requires the Concessioner to provide coin-operated laundry and shower services to all Park visitors within the Rio Grande Village camper store.

EMPLOYEE SERVICES

The Draft Contract requires the Concessioner to provide housing, food service, and recreation for its seasonal and permanent workforce. The Draft Contract also requires the Concessioner to provide transportation for employees from the residential area at Panther Junction to the lodging complex in Chisos Basin. The Concessioner may charge employees a reasonable amount to recover the cost of providing these services.

Fuel Service Station at Panther Junction

Camper store at Chisos Basin


The table below lists the assigned employee facilities by location.

Location Asset Number

Description Number of Bedrooms

per housing unit

Castolon 56010 1 Historic “Officer’s quarters” 2

Chisos Basin 83844 1 Duplex Residence

(consisting of 2 housing units)

2

Chisos Basin 83847 1 Concession dormitory 8

Chisos Basin 83850 1 Concession Manager’s Residence 3

Panther Junction

116064 and 116327

2 Concession dormitories 4

Panther Junction

227001 1 Concession quadraplex


2 2-bedroom units and

2 1-bedroom units

Panther Junction

237947 and 247047

2 Concession trailer sites* 1

Rio Grande Village

233055 1 Concession duplex


2

Rio Grande Village

93510 1 Concession trailer site 1

*The Draft Contract requires the Concessioner to construct two dormitories and a quadraplex at Panther Junction on sites currently holding trailers for more employee housing. The CFIP section below provides more information.

OVERVIEW OF AUTHORIZED SERVICES

TRANSPORTATION

The Draft Contract authorizes the Concessioner to provide a shuttle service to trailheads or on routes within the Park as approved by the Service. As conceived by the Service, the Concessioner, if it chooses to provide the service, would pick-up and drop-off hikers or transport passengers into and out of Chisos Basin during periods of high visitation and limited parking. As with other visitor services, the Service would approve the rates charged by the Concessioner for these services.

ESTIMATED REVENUE AND EXPENSE PROJECTIONS To assist Offerors in the development of projections, the Service presents projected operating statistics based on a Draft Contract effective date of July 1, 2019. Please note that projections are only estimates based on assumptions developed by the Service, taking into account publicly available historical data, industry standards, comparable information from other facilities, and Annual Financial Reports of the Existing Concessioner. Offerors must perform their own due diligence in developing financial projections for their proposals.


Projected Department Operating Statistics for Year 3*

Lodging Occupied Room Nights 22,000 – 23,000 Average Daily Room Rate $170 - $180 Food and Beverage Number of Transactions 110,000 – 120,000 Average Transaction $18 - $19 Retail (includes Public Laundry and Showers)

Number of Transactions 219,000 – 221,000

Average Transaction $9 - $10 Fuel Gallons Sold 320,000 – 325,000 Average Price of Gallon $3.00 - $3.50 Recreational Vehicle Park Occupied Nights 4,300 – 4,500 Average Nightly Rate $30 - $32 Employee Housing Full Time Equivalent (FTE) Employees 55 – 65

Average Housing and Food and Beverage Revenue per FTE $950 - $1050

*The Service considers the third year of the Draft Contract as the first year of stabilized operations after completion of CFIPs.

PERSONAL PROPERTY

Personal Property Reserve

The Draft Contract requires the Concessioner to establish a Personal Property Reserve. This Personal Property Reserve is separate from the personal property requirements included in the CFIP described below. As described in the Draft Contract, the Concessioner must fund the Personal Property Reserve by allocating one percent (1%) of the Concessioner’s annual gross receipts to it. This amount is the minimum annual amount the Concessioner must expend on the Personal Property Reserve activities as defined in the Draft Contract.

MAINTENANCE OF CONCESSION FACILITIES

The Draft Contract requires the Concessioner to maintain the Concession Facilities to the satisfaction of the Director. The Maintenance Plan has specific requirements applicable to planning and executing the Concessioner’s responsibilities.

Component Renewal Reserve

The Draft Contract requires the Concessioner to establish a Component Renewal Reserve. As described in the Draft Contract, the Concessioner must fund the Component Renewal Reserve by allocating three and two-tenths percent (3.2%) of the Concessioner’s annual gross receipts to it. This amount is the minimum amount the Concessioner must expend on component renewal activities. As further explained in the Draft Contract, the Concessioner may be required to expend sufficient additional monies to maintain the Concession Facilities to the satisfaction of the Director.

Repair and Maintenance Expense

The Draft Contract requires the Concessioner to expend at least one and eight-tenths percent (1.8%) of the Concessioner’s annual gross receipts on routine repair and maintenance projects not covered by the Component Renewal Reserve. These projects are to ensure the Concessioner maintains the Concession Facilities in the best possible condition.

UTILITIES

The Concessioner must contract with independent suppliers to provide necessary utilities, including the following services: telephone, internet, electricity, and propane. Additionally, the Concessioner must contract for removal and disposal outside of the Park of recyclable materials and large waste items (for example, mattresses, appliances, and construction waste). The Service will provide the following utility services to the


Concessioner for a fee: water, wastewater, and solid waste disposal at the Park-operated landfill. In 2016, the NPS billed the Existing Concessioner for 3.72 million gallons of water and 2.97 million gallons of sewage.

The 2018 rates are:

Water -- $0.02917/gallon

Sewer -- $0.02406/gallon

Trash collection -- $5,074.50/month

The Service will establish rates for these utilities annually based on actual operating costs and bill the Concessioner directly, as outlined in Director’s Order 35B. The Service will review its operating costs for utilities annually and notify the Concessioner in writing at least 90 days prior to rate changes.

LEASEHOLD SURRENDER INTEREST

The initial Leasehold Surrender Interest (LSI) of the Draft Contract is zero. The Concessioner will be eligible to obtain LSI in the real property components of major rehabilitation projects and new construction as outlined in the Draft Contract, and Exhibits A (“Leasehold Surrender Interest”) and F1 (“Concessioner New Construction and Major Rehabilitation Project Procedures”) to the Draft Contract, subject to all requirements set forth therein.

FRANCHISE FEE

The minimum franchise fee is thirteen percent (13%) of the Concessioner’s annual gross receipts for the term of the Draft Contract. Offerors may propose a higher franchise fee, as described more fully in the Proposal Package.


OTHER OPERATING CONSIDERATIONS

LODGE LOADING DOCK STABILIZATION

The Service is aware of issues related to instability in the soils beneath the Lodge loading dock, and presently is researching the extent of the problem and determining the best solutions. Sometime during the term of the Draft Contract, the Service anticipates stabilizing the soil beneath the Lodge loading dock and addressing the settling evident in the building. The Service will keep the Concessioner apprised of the timing for the project, and intends to perform the work in a manner that minimizes inconvenience and disruption to Concession operations. Subject to the availability of funds, the Service anticipates funding this project.

ASSIGNED GOVERNMENT-OWNED PERSONAL PROPERTY

The Service will assign to the Concessioner a number of trash and recycle bins to use in the operation and numerous historic objects for display at the Castolon La Harmonia store, as listed in the Draft Contract, Exhibit E (“Assigned Government Personal Property”). The Concessioner is accountable to the Service for the government personal property assigned to it and is responsible for maintaining the property as necessary to keep it in good and operable condition, as appropriate.

INVESTMENT ANALYSIS

CONCESSION FACILITY IMPROVEMENT PROGRAM The Concessioner must complete several facility improvements, including the construction of new employee housing, during the first two years of the Draft Contract term. The Concessioner’s Concession Facility Improvement Program costs for real property must be not less than $3,390,000 and not more than $4,140,000. The Service estimates the personal property improvements associated with the CFIP will cost the Concessioner an additional $1,011,600. The Service adjusted each project cost, listed below, to reflect the 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. Additionally, the Concessioner must house construction workers and stage construction materials outside of the Park.

This section describes each CFIP project and the investments associated with all improvements. Further information about requirements for the CFIP is located in Sections 8(e) and 9(d) of the Draft Contract.

SUMMARY OF CFIP COST AND SCHEDULE

Project Estimated Start Date

Estimated End Date

Estimated Real Property Cost (Section 9(d))

Estimated Personal

Property Cost (Section 8(e))

Upgrade Fuel Dispensers 2019 2020 $0 $199,500

Emory Peak Room Improvements 2019 2020 $0 $6,000

Rio Grande Room Improvements and Renovations (20 rooms) 2020 2021 $213,500 $202,400

Casa Grande Room Improvements and Renovations (38 rooms)

2020 2021 $405,600 $384,600

Casa Grande Exterior Upgrades 2020 2021 $479,000 $0

Quick Service Food and Beverage in the Lodge 2020 2021 $143,700 $25,000

Quick Service Food and Beverage in Panther Junction store 2020 2021 $76,500 $25,000

Backup Generators 2020 2021 $208,800 $87,200

Construct Employee Housing 2020 2021 $2,236,800 $81,900

Total Estimated CFIP Investment Requirement $3,763,900 $1,011,600


UPGRADE FUEL DISPENSERS

The Draft Contract requires the Concessioner to upgrade the existing fuel dispensers to meet modern standards and accept payment and provide service any time of day. Currently, there are three, two-sided fuel dispensers at Panther Junction and two, single-side dispensers at Rio Grande Village. The Draft Contract requires the Concessioner to replace the card-reader equipment in each side of the three fuel dispensers and install a new point of sale system at Panther Junction, for a total personal property cost of about $74,300 in the first year. Additionally, at Rio Grande Village, the Draft Contract requires the Concessioner to replace the two fuel dispensers entirely and install a new point of sale system for a personal property cost of approximately $125,200 in the first year. The Service estimates the cost to upgrade both fuel service stations is $199,500 in 2019 dollars.

LODGING IMPROVEMENTS AND RENOVATIONS

The Service envisions Chisos Mountains Lodge becoming a top lodging accommodation in the region with décor and design themes reflective of the Park’s location and history. To this end, the Draft Contract requires the Concessioner to renovate the lodging units and make improvements to the amenity packages as described below. The Service may consider a higher room rate once these improvements and renovations are complete.

Emory Peak Room Improvements

The Draft Contract requires improvements to the eight Emory Peak rooms in the first year of the Draft Contract to offer an opportunity for a higher-end experience for guests. The condition of the Emory Peak rooms does not necessitate a full renovation, but only upgrades to the personal property and amenities package. The Service’s estimate for the additional amenities includes items such as an alarm clock unit with USB connections for mobile devices, upgraded bed linens, bathrobes, bottled water, and daily snack items. The estimated costs per room for the required improvements appear below.

Rio Grande and Casa Grande Room Improvements and Renovations

The Rio Grande Rooms and Casa Grande Rooms make up the bulk of the room inventory, with a total of 20 and 38 rooms, respectively. The Draft Contract requires the Concessioner to replace each room’s flooring, wall-coverings, and bathrooms and provide new fixtures, furniture, soft goods, and amenities during the second year of the Draft Contract. The estimated costs per room for the required renovations appear below.

Casa Grande Exterior Upgrades

The Draft Contract requires the concessioner to replace the wood decking, railings, and stairs on the four Casa Grande units during the second year of the Draft Contract. The Service estimate includes a change from wood to metal railing. The estimated costs for the required improvements appear below.

Real Property Improvements

Personal Property Investment

Total Investment per Room

Rooms Total

Investment

Emory Peak (2019$)* $0 $750 $750 8 $6,000

Rio Grande (2020$) $10,695 $10,100 $20,795 20 $415,900

Casa Grande (2020$) $10,695 $10,100 $20,795 38 $790,200

Casa Grande Exterior Upgrades (2020$) $479,000

Total $1,691,100

* “2019$” means estimated value in U.S. dollars projected for 2019


QUICK SERVICE FOOD AND BEVERAGE IN THE LODGE

To alleviate crowding in the Lodge during the mealtime rush at the restaurant, the Draft Contract requires the Concessioner to transform the current employee dining room into a Quick Service food and beverage outlet and adapt the restrooms in this location for public use, rather than the current “employee only” use. As depicted in the diagram, the Concessioner will move the employee dining room (shown inside the red oval) to a nearby room currently used for storage. As an alternative to the sit-down meal style of the restaurant, the Service requires the Concessioner to install service counters and grab-and-go food displays, and serve freshly made or quickly assembled breakfast, lunch, and dinner items, such as burritos, sandwiches, coffee drinks, salads, soups, or pizzas. The Service estimates this project will cost $168,700 total, including $25,000 in personal property and $143,700 in real property improvements. The Draft Contract requires the Concessioner to complete this project during the second year of the Draft Contract. The floor plan of this area is provided in Appendix 4.

QUICK SERVICE FOOD AND BEVERAGE IN PANTHER JUNCTION SERVICE STATION

Panther Junction Service Station presents another opportunity for a Quick Service food and beverage outlet similar to the concept described above. The Draft Contract requires the Concessioner to repurpose a space within the existing Panther Junction Service Station currently used as retail or storage, such as the former automobile service bay, to be used as a Quick Service food and beverage outlet. The Service estimates this project will cost $101,500 total, including $76,500 in real property costs and $25,000 for personal property and equipment. The Draft Contract requires the Concessioner to complete this project during the second year of the Draft Contract. The floor plan of this area is provided in Appendix 4.

BACKUP GENERATORS

The Concession Facilities are at the end of an electrical line provided by a regional electrical cooperative. The Park experiences frequent power outages due to damaged power lines and equipment from high winds and storms. Power outages have lasted from a few minutes to over 24 hours. Currently, when the power is out in the Chisos Basin, the Existing Concessioner uses a generator that is its personal property to power only the restaurant refrigerators and freezers.

The Draft Contract requires the Concessioner to install four propane-powered electrical generators to provide minimal services continuously during power outages. At Chisos Basin, the Concessioner must install a generator adjacent to the Lodge to power the entire Lodge building, a generator behind the Camper Store to power the refrigerators and freezers, and a generator in the Concessioner’s maintenance area, near the Lodge, to power pathway lights. Additionally, the Concessioner must install a generator at the Panther Junction Service Station to power the fuel pumps and dispensers. Associated with these generators, the Draft Contract requires the Concessioner to install cement pads, propane tanks, and additional conduit and compatible wiring. The generators themselves are personal property. The Draft Contract requires the Concessioner to determine the optimal generator size and quality that would be required to power the systems described above, assure minimal noise and emissions production, and make associated upgrades to the relevant electrical systems. The Concessioner must complete this project by the end of the second year of the Draft Contract. The Service estimates the cost to install these backup power systems, including generators, is $296,000 in 2020 dollars, and based its estimate on one 60 kilowatt (kW) generator, two 20 kW generators, and one 11 kW generator and related upgrades.


CONSTRUCT EMPLOYEE HOUSING

The Draft Contract requires the Concessioner to construct one quadraplex (4,305 square feet) and two dormitories (2,124 square feet, each) in Panther Junction, using the same footprint as, and replacing, the existing personal property trailers. The new construction must follow the basic floor plans of the quadraplex and dorm built in 2011, as provided in Appendix 4, and have the same number of bedrooms, bathrooms, kitchens, and living and storage spaces. The Concessioner must move the personal property trailers to a temporary location with hookups in the same area until the new buildings are ready for use.

The Concessioner must complete this project by the end of the second year of the Contract. The Service estimates the cost of this new construction and installation of new personal property, including furniture, will be $2,318,700 in 2020 dollars.

INITIAL INVESTMENTS The following table summarizes the Service’s estimate for the Concessioner’s initial investment in this concession opportunity.

Investment Estimate

Personal Property (2019$) $682,000

Working Capital and Pre-opening Costs (2019$) $528,200

Deferred Maintenance (2019$) $226,000

Total Estimated Initial Investment $1,436,200

INITIAL PERSONAL PROPERTY

The Service estimates the initial personal property investment associated with the BIBE002-19 Draft Contract totals $682,000. This includes, but is not limited to vehicles, computers, fuel dispensers, kitchen equipment, furniture, laundry appliances, and maintenance equipment.

The Service estimates additional personal property investment associated with the CFIP projects at $1,011,600 in the first two years of operation, described in more detail in the CFIP section above.

START-UP COSTS AND WORKING CAPITAL

At the start of the Draft Contract, the Concessioner will incur other start-up costs prior to commencing operations. Start-up costs include staff hiring, training that may involve compensation in addition to normal wages, systems implementation, legal support services, and marketing and advertising beyond normal annual expenditures. The Service estimates start-up costs to be approximately $186,200.

In addition to start-up costs, the Concessioner will need to invest a certain amount of working capital in the operation to cover that portion of the operation's expenses that the Concessioner will likely incur in advance of offsetting revenues. The Service estimates the Concessioner will invest another $342,000 in working capital at the outset of the Draft Contract.

DEFERRED MAINTENANCE

The Draft Contract requires the Concessioner to cure the Deferred Maintenance within the first year of the Contract term. The Service estimates the cost for curing the Deferred Maintenance at $226,000. The Draft Contract, Exhibit H (“Maintenance Plan”) contains a list of the Deferred Maintenance.


MARKET AREA OVERVIEW

The operations under the Draft Contract provide a unique opportunity for the Concessioner to operate in an emerging destination, where visitor demand for services has seen a dramatic increase over the past several years and likely will see continued growth. For informational purposes, the Service presents a brief market overview of the environment in which Big Bend National Park concession services operate. The gateway communities referred to in this Prospectus, including Marfa, Marathon, Terlingua, Study Butte, and Lajitas, have significant influence on regional tourism trends and lie within an hour and a half drive from the Park entrances.

The Park is located in Brewster County, part of the Trans-Pecos region of West Texas, and the largest county in Texas by area. Other visitor attractions in Brewster County include Terlingua Ghost Town, Big Bend Ranch State Park, Davis Mountains State Park and Indian Lodge, the Boquillas Crossing Port of Entry, Lajitas Golf Resort, the Rio Grande River, the El Cosmico Campgrounds, and minimalist art exhibitions, installations, and galleries in Marfa. The nature of these attractions, as well as the remote location of the region, lead to overnight visits to Big Bend National Park and the surrounding area.

LODGING The gateway communities offer at least six notable lodging offerings. These include the Gage Historic Hotel, Hotel Paisano, Marathon Motel, Maverick Inn, Holland Hotel, and Quarter Circle 7 Hotel.

FOOD AND BEVERAGE Several food and beverage options are available in gateway communities that range from food trucks to upscale casual establishments. Most Park visitors, however, choose to eat at the Concession operations within the Park because of the great driving distance to the gateway communities.

RETAIL The gateway communities offer the expected grocery and merchandise outlets, as well as eight competitive retail shops primarily focused on the history and culture of the area. Within the Park, Big Bend Natural History Association operates bookstores within the Service’s five Visitor Centers.

FUEL SERVICE Visitors in need of fuel often take advantage of the fuel stations within the Park, as the nearest station to the Panther Junction intersection is about 25 miles west in Terlingua.

RECREATIONAL VEHICLE (RV) PARK Approximately six comparable RV parks exist in the local market, including BC Ranch and Lost Alaskan in Alpine, Study Butte RV Park and BJS RV in Study Butte, Lajitas Resort RV in Lajitas, and Marathon Motel in Marathon. Although not considered comparable or competitive, El Cosmico Campground in Marfa is also a popular spot for visitors to the region.


HISTORICAL VISITATION AND CONCESSION OPERATIONS

VISITATION Total visitation at Big Bend National Park over the past ten years has fluctuated, with a historical peak of 388,290 visitors in 2016 to a low in 2012 of just over 292,000. Over the past 10 years, park visitation grew at an average annual rate of 5%.

The Service believes economic trends affecting fuel prices and 2016 Centennial celebration Find Your Park marketing and events may have spurred the recent rise in visitation to the Park. The Service projects, but cannot guarantee, that the increased levels of visitation resulting from the Centennial, other events, and increasing regional visibility and popularity as a tourist destination will continue over the term of the Draft Contract.

SEASONALITY

The desert climate and extreme heat during the summer months greatly influences the Park’s visitation pattern. Average high temperatures in May through August are at or above 100ºF, while the average low temperatures in December and January are about 30ºF. It is not surprising, therefore, that Big Bend National Park’s busy seasons are spring (March and April) and fall (October and November). Typically, the peak visitation month is March due to increased spring break traffic, while the summer months of June, July, and August are the off-season, with lower visitation. In recent years, Park representatives have observed steadily increasing summer visitation and, thus, a softening of the Park’s distinct sharp seasonality.

EXISTING CONCESSIONER The Existing Concessioner provides the same visitor services under the Existing Contract as are required under the Draft Contract. The only change in services under the Draft Contract is the expansion of food and beverage services and the addition of the authorized transportation service. The Existing Contract has no authorized services.

This section presents historic financial data for three years to assist Offerors in developing projections for future operations associated with the Draft Contract. ”Total Revenue” as shown in the table below includes all revenues reported by the Existing Concessioner. The Concessioner must pay a franchise fee on “Gross Receipts,” which is defined in Sec. 2(i) of the Draft Contract.


HISTORICAL REVENUES The table below lists the historical revenues by service type.

2014 2015 2016

TOTAL Revenue $7,301,211 $7,994,326 $8,437,438

Lodging $2,919,942 $3,186,734 $3,261,093

Food and Beverage $1,465,921 $1,642,759 $1,913,563

Retail $1,683,602 $2,025,485 $2,020,671

Fuel $1,030,717 $926,694 $915,925

RV Park $147,905 $157,605 $196,270

Employee Housing and Other

$53,124 $55,049 $129,916

Franchise Fee $246,322* $298,673 $325,455

The information in the table above does not include Utility Add-On charges on room nights sold and food and beverage revenues and employee meals, lodging, and transportation as these were deducted and not included in gross receipts. Due to a change in Service policy, the Service will not allow Utility Add-On charges in the Draft Contract.

*In 2014, the Service waived October franchise fees in compensation for the government shutdown that occurred in October 2013.

LINKS TO ADDITIONAL INFORMATION

Superintendent’s Compendium https://www.nps.gov/bibe/learn/management/upl

oad/Compendium-12-13-16-signed.pdf

National Park Service Management Policies 2006 http://www.nps.gov/policy/MP_2006.pdf

Concessions Management Improvement Act of 1998

(54 USC 101911 through 101926) (1998 Act)

http://www.gpo.gov/fdsys/pkg/PLAW-

105publ391/pdf/PLAW-105publ391.pdf

36 CFR Part 51– Concession Contracts http://www.ecfr.gov/cgi-bin/text-

idx?SID=d03628d94ca3851e02f00f86e5142962

&mc=true&node=pt36.1.51&rgn=div5

Concession Management Rate Administration Guide https://concessions.nps.gov/docs/concessioner%2

0tools/2017_Rate_Administration_Guide.pdf

PREFERRED OFFEROR DETERMINATION

The Service has determined no “Preferred Offeror” for the Draft Contract exists pursuant to 36 C.F.R. Part 51. This solicitation for commercial services is fully competitive.

https://www.nps.gov/bibe/learn/management/upload/Compendium-12-13-16-signed.pdf

http://www.nps.gov/policy/MP2006.pdf

http://www.gpo.gov/fdsys/pkg/PLAW-105publ391/pdf/PLAW-105publ391.pdf

http://www.ecfr.gov/cgi-bin/text-idx?SID=d03628d94ca3851e02f00f86e5142962&mc=true&node=pt36.1.51&rgn=div5

https://concessions.nps.gov/docs/concessioner%20tools/2017_Rate_Administration_Guide.pdf

LODGING, FOOD AND BEVERAGE, RETAIL, RV …€¦ · Certain federal laws apply to this solicitation including the National Park Servic e Concessions Management Improvement Act of 1998

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