Concessions Management by the National Park Service, Department of the Interior

In 1974, GAO reviewed: (1) the monitoring and evaluation of concessions operations; (2) the encouragement of competition and the considerations given small business in the award and renewal of concession contracts; (3) the adequacy of policies and practices for establishing concessioner franchise fees; and (4) the extent of compliance with environmental requirements in approving new facilities. Language in a new contract form is legally acceptable and will not diminish the level of protection afforded the concessioner in performance of his functions, as was feared, nor will the "disputes" clause differ from the generally applicable procedure for disputes in Government procurement. H.R. 15822 could serve to enhance competition for concessioners and all interested parties could be afforded greater opportunities to participate in concessioner activities, but, if the bill is reintroduced, section 8 should be reconsidered since in its present form it is inconsistent with existing law. The Park Service is leasing warehouse property and office space and charging 40 percent of the rent it pays to its concessioner in the Washington, D.C. area, and, in additional office space, has begun charging a commercially viable rate until the end of contract. Because of contract termination and safety hazards, facilities at Hidden Valley Ski area have been assessed at $1,048,000 by the cost approach, at $1,023,000 by the market data approach, and at $698,000 by the income approach. Based on these figures, a final purchase price of $750,000 for the concessioner's possessory interest was offered, with the concessioner having salvage rights for the chair lift, estimated at $100,000. Although GAO questioned the interpretation made by the Park Service, both parties were in agreement, and the interpretation stands.