FBODaily.com | FedBizOpps: MOD | M | Responses to Questions regarding Solicitation for the award of the Concession Contract for Lodging, Food & Beverage, Retail, and Other Services within Grand Canyon National Park under CC-GRCA003-15 (Part 1 of 2)

FBO DAILY - FEDBIZOPPS ISSUE OF OCTOBER 27, 2013 FBO #4355
MODIFICATION

M -- Responses to Questions regarding Solicitation for the award of the Concession Contract for Lodging, Food & Beverage, Retail, and Other Services within Grand Canyon National Park under CC-GRCA003-15 (Part 1 of 2)

Notice Date: 10/25/2013
Notice Type: Modification/Amendment
NAICS: 713990 — All Other Amusement and Recreation Industries
Contracting Office: Department of the Interior, National Park Service, NPS - All Offices, 12795 West Alameda Parkway, Post Office Box 25287, Denver, Colorado, 80225-0287
ZIP Code: 80225-0287
Solicitation Number: CC-GRCA003-15
Archive Date: 11/25/2014
Point of Contact: Jennifer Parker, Phone: (303) 969-2661
E-Mail Address: jennifer_parker@nps.gov
(jennifer_parker@nps.gov)
Small Business Set-Aside: N/A
Description: Below please find the National Park Service's (NPS) responses to most questions submitted in regard to the Prospectus for a Concession Business Opportunity to provide lodging, retail, food and beverage and other services (CC-GRCA003-15). There are a few questions, received by the September 18, 2013 deadline, that are not answered here. Responses to the remaining questions will be provided very shortly. Please note all potential Offerors should read the questions and responses for both CC-GRCA003-15 and CC-GRCA001-15, as there is some information in each that may be of assistance in preparing a proposal to either solicitation. Cover Page 1. Proposal Due Date. Since daylight savings time ends November 3, we assume the proposals are due on November 25, 2013 at 4pm MST, not MDT. Please confirm. 4:00 p.m. MST is correct. Business Opportunity 2. Page 2 of Section 1 - Historical gross revenues. Can NPS please provide historical gross revenues presented in the Business Opportunity a breakdown as presented for the projected sales Exhibit 13, 14, 15, &16? The NPS infers the question is asking for historical gross revenues broken out by location. If this is the case, the NPS does not provide historic gross revenues broken out by specific locations. 3. Can NPS please provide clarity of the discrepancy between the Historical Annual Gross Sales Revenue 2011 presented on Page 2 of Section 1 - Business Opportunity of $32,659,903 and the cumulative gross sales presented in Exhibits 13, 14, 15 & 16 that equates to $29,623,000. The table below presents our method of calculation. Average Transaction Value/ADR Room Nights/ Covers/ Transactions Department Revenue Dept. Revenue as % of Total Revenue Lodging $130-135 80-83,000 $10,400,000-11,205,000 35-31% Retail $9-10 1,386-1,601,000 $12,474,000-16,010,000 42-45% Food & Beverage $9-11 641-664,000 $5,769,000-7,293,000 20-20% Trailer Village $37-40 20-23,000 $740,000-920,000 3-4% Camper Services n/a n/a $240,000-245,000 TOTAL REVENUE -- $29,623,000-35,673,000 -- $32,659,903 from the Historical Annual Gross Sales Revenue 2011 presented on Page 2 of Section 1 -Business Opportunity represents an estimation of 2011 gross revenue by using the same percentages represented in the actual historic gross revenue in 2009 and 2010. The information in Exhibits 13, 14, 15, &16 represents assumptions for the first stabilized year (2015) of operations under the Draft Contract. Based on your calculations, $29,623,000 is the lowest 2015 estimated amount and $32,659,903 is in the middle of the range, therefore, the NPS does not see a discrepancy. 4. Can NPS provide sales revenues from the Visitor Center area (bicycle rentals and the Association store) over the past 5 years? Bright Angel Bicycles grossed $897,219 in 2012 its first year of operation (June 1, 2012 to December 31, 2012). The NPS does not have the revenues for the Association Store to report at this time. 5. Can NPS please provide Gross Revenues by segment as per Exhibit 11 in order to better understand the potential impact on revenues resulting from the Service having developed the parking areas and visitor center, resulting in change in visitor and traffic patterns? The NPS does not provide gross revenues broken out by specific locations. 6. Are there any future plans by NPS to add additional competitive facilities in Park, construction of concession facilities that may cause business disruption or redesign of infrastructure/services that may negatively impact the services associated with the GRCA003 contract? At this time, the NPS has no plans to add additional competitive facilities in the Park, redesign infrastructure, or construct additional Concession Facilities other than those described in CC-GRCA001-15 prospectus. 7. Are there any future plans to decommission any commercial services or facilities including lodging, retail, or food & beverage facilities associated with GRCA003? At this time, the NPS has no plans to discontinue any of the services or facilities associated with GRCA003 during the term of the Draft Contract. 8. How much impact has the NPS included in its financial models for the inefficiencies of two concessioners operating lodging within the South Rim? The NPS performed financial analysis for two discrete businesses on the South Rim, as described in the two prospectuses for CC-GRCA001-15 and CC-GRCA003-15. 9. What assumptions were made by NPS in regard to additional operating expenses/duplication of cost resulting from the allocation of the Yavapai Lodge from the GRCA001 contract to the GRCA003? The NPS performed financial analysis for two discrete businesses on the South Rim, making assumptions based on those separate opportunities, as described in the two prospectuses for CC-GRCA001-15 and CC-GRCA003-15. Offerors must make their own assumptions and determinations regarding the business opportunities as presented. 10. Page 3 - Estimated Initial Investment Has NPS included in its estimated Personal Property Initial Investment amount all the personal property replaced by the existing concessioners over the course of the current contracts for which the concessioners requested LSI under the fixture rule but were advised by NPS that the items in question were personal property rather than fixtures? Appendix M of the Prospectus contains the lists of personal property. The NPS contracted with a personal property consultant in 2010 to evaluate the furniture, fixtures, and equipment of the Existing Concessioner. The consultant's valuation and replacement schedule was included in the financial analysis associated with prospectus development. 11. Page 3 - Estimated Initial Investment By the same token, has NPS included in its estimated Personal Property Initial Investment amount all the personal property in the facilities owned by the existing concessioners that constitute "fixtures" or "trade fixtures" under conventional real estate law but not under the narrower working definition of "fixtures" adopted by NPS? Appendix M of the Prospectus contains the lists of personal property. The NPS contracted with a personal property consultant in 2010 to evaluate the furniture, fixtures, and equipment of the Existing Concessioner. The consultant's valuation and replacement schedule was included in the financial analysis associated with prospectus development. 12. Page 13 - Employee Housing. The amount of housing removed from contract 001 and moved to contract 003 appears to be out of proportion to the number of employees who will be reassigned with the addition of Yavapai Lodge, Camper Service, and Trailer Village. Please explain the NPS rationale for these building assignments. This reassignment was based on staffing plan assessments performed as part of the financial analysis associated with prospectus development. 13. Page 13 - Employee Housing. The contract appears to provide more housing than will be required by the number of employees the business requires. Can the concessioner make this housing available for rent to other park concessioners? If so, on what terms would NPS consider reasonable? Each Offeror may make its own determination as to its staffing needs and the resulting deployment of its housing. The Concessioner must obtain NPS approval prior to renting available housing to other entities. 14. Page 13 - Employee Housing. When will the concessioner operating this contract receive the housing that is being reassigned from Contract 001-15? All Concession Facilities become available as of the effective date of CC-GRCA003-15. 15. Can NPS please confirm if the employees currently living in RV accommodations in the Trailer Park own their RV's and if they are charged a rental fee for the RV spots? Most of the Trailer Village residents reside in their own RVs and are charged a rental fee. 16. Page 15 -Proposed Operational Changes. How does NPS expect the concessioner to fund the remodel and concept change at Yavapai Cafeteria since there is no CFIP funding provision outlined in the contract? The incumbent spent over one million dollars in 2011 to remodel only the front-of-house elements in the Maswik Cafeteria. The NPS envisions that much of the Yavapai renovation will consist of personal property with minimal capital expenditures. 17. Page 25 - Projected Future Expense Assumptions. What is the rationale behind the management positions that must be located outside of the Park given the 24x7 nature of the business? Have these positions been specifically identified? If so, please list them. Is there a proposed time frame for this move? The Concessioner must make its own determination of which management positions can be located outside of the Park. The NPS anticipates the next Concessioner will begin operations under the new contract on January 1, 2015. 18. In the business opportunity it states "The Concessioner will house some senior and mid- level management outside the boundary of the Park." Is the expense for this assumption included in the financial return assumptions NPS used to establish if this is a viable contract? If yes, how much was the cost assumption. The NPS assumed that some senior and mid-level management would live outside of Park boundaries in its financial analysis. The NPS does not release its cost assumptions. Offerors must make their own staffing and housing determinations and develop their own assumptions based upon those determinations. 19. Can NPS provide a breakdown by segment of Historical franchise fees paid? The NPS is unclear what "a breakdown by segment" means. The NPS does not provide franchise fees paid broken out by specific locations. 20. Can NPS please explain the rationale of imposing a 9.4% franchise fee on GRCA 003 (Yavapai lodging) revenue and only a 6% franchise fee on lodging within Prospectus GRCA001? The two business opportunities, which were analyzed separately, have significant differences in expected revenue, expenses, and investment requirements. 21. Given the magnitude of the impact on profitability in contract 003 in the event of a catastrophic waterline failure, how has NPS taken this into account in the formulation of this prospectus? The NPS does not account for all possible catastrophic events, including natural disasters or any other event that may cause business interruption, in its financial analysis. 22. For the GRCA001 lodging facilities that operate in the offseason, can NPS please provide average occupancy and average daily rates by month for the GRCA001 by facility? The NPS is unable to provide this information on a monthly basis. Please refer to the GRCA001 Prospectus for the annual information. 23. Prospectus GRCA001 Business Opportunity Page 21 "Projected Revenues" provides details of the planned improvements to Maswik South Lodge & Cabins and upgrades to Bright Angel Cabins. Can NPS confirm the period of time and quantity of rooms inventory that will be impacted during this improvement period? Please refer to Exhibit 8 on page 16 of the GRCA001 Business Opportunity for Project Start Year and First Year of Full Operation. Improvements to Maswik South Lodging may impact an inventory of 120 rooms. Maswik Historic Cabins will not impact any room inventory as the cabins currently are used as employee housing. The Bright Angel Lodge CFIP is a Personal Property improvement that may or may not impact an inventory of 34 cabins. Please review the CC-GRCA001-15 Business Opportunity for additional information. 24. Given that NPS's GRCA003 projections for lodging do not consider a year round operation for Yavapai and by 2017 the GRCA001 contract lodging projections show improvements in occupancy and rate for Maswik South and Bright Angel as a result of capital improvement, does NPS consider there is adequate off season demand from 2017 to support Yavapai opening year round? The NPS believes that there is potential for adequate off-season demand for Yavapai to be open year-round. Offerors must make their own determinations regarding the opportunity and how they would maximize use of this facility. 25. Given the lodging revenue projections for Yavapai assumes a seasonal operation, is it correct to assume the Yavapai Cafeteria revenue projections are also provided in a seasonal basis? Yes. 26. Can NPS please provide the historical average length of stay for Yavapai Lodge? The NPS does not have this information. 27. Can NPS provide details of the current rent Xanterra pays for the McKee Warehouse building? The McKee Warehouse is currently not assigned to Xanterra or any other concessioner. 28. Can NPS please explain why the approximately 6,000 square feet of space in the McKee Warehouse building required by the GRCA003 Concessioner is not included in the LSI? The McKee Warehouse is not encumbered with LSI. 29. Can NPS please provide a comprehensive listing of the deferred maintenance associated with the $1,150,000 investment required in years 1 and 2 of the contract? The NPS will provide a comprehensive list of deferred maintenance projects to the successful Offeror after contract award. 30. Delaware North's personal property associated with the GRCA003 contract is estimated to be worth $2 million. Is it correct to assume that Xanterra's personal property is worth $3,409,000? Please reference the NPS estimates as outlined in the CC-GRCA003-15 Business Opportunity, Page 24, Personal Property section. 31. Will NPS please provide a comprehensive list of Xanterra's personal property it used to establish personal property value? It is currently unclear the quantity of each type of property. It would also be important to note if this property is the EXACT property that is currently in each lodge room, retail space, and food and beverage operation. We are not asking for the values to be included in the list. Please review the GRCA003 Personal Property List, Appendix M in the CC-GRCA003-15 Prospectus, which includes a 2010 list of the existing GRCA003 Personal Property and a 2010 list of GRCA001 Personal Property that the Concessioner may negotiate with the incumbent GRCA001 Concessioner to purchase. 32. How did NPS calculate the estimated value of the personal property? The NPS hired an independent contractor to complete a personal property appraisal during the 2010 site visit and adjusted the values to 2015 dollars. 33. Can NPS provide a complete listing of the concessioner owned personal property? A list was not provided as an Exhibit to the Prospectus. See #31 above. 34. Can NPS please indicate if there is a plan to reinvest the franchise fees into the GRCA003 facilities as the required rent number is significantly higher than the R&M reserve and the CFIP? The NPS is uncertain what is meant by the "rent number." The NPS will not state how it plans to use franchise fees. The Concessioner is solely responsible for the maintenance of all Concession Facilities to the satisfaction of the NPS. 35. Some of the housing assigned under the new 003 contract is in fair-to-poor condition. Would NPS allow the concessionaire to use R&M funds for the repair of these buildings? What is the specific process in the Grand Canyon for getting approval for an R&M funded project? Employee housing buildings are Concession Facilities eligible to benefit from Repair and Maintenance Reserve expenditures. Section 10 (c) of the Draft Contract describes the requirements of the R&M Reserve. Exhibits F and H of the Draft Contract describe the procedures for administration of projects undertaken pursuant to the R&M Reserve. 36. What are the locations for the mobile food trucks authorized in GRCA 001? The GRCA001 Concessioner must locate the mobile food trucks within its Concession Facilities. 37. Can NPS please provide the competitive hotel sets used to determine room rates for Yavapai Lodge? Currently the NPS uses the following set of comparables: Yavapai East: Courtyard (Flagstaff), Hampton Inn (Flagstaff), Hilton Garden Inn (Scottsdale), and Hampton Inn (Prescott) Yavapai West: Fairfield Inn (Flagstaff), Holiday Inn Express (Prescott), and Hilton Garden Inn (Flagstaff) 38. Can NPS please provide details of the number of employees currently housed in the Trailer Park are working at Yavapai Lodge? The NPS does not have this information. 39. Is the main Yavapai Lodge licensed to sell alcohol? Yes. Currently the cafeteria sells beer and wine for consumption on the premises. Utilities 40. Since the concessioner is not able to assess the NPS utility systems, please provide clarity, absent a catastrophic failure, on whether the Utility Add-On will be allowed past the first year of the contract and whether this was factored into the NPS' prospectus financial analysis? A utility add-on was factored into the NPS financial analysis. The NPS anticipates that a utility add-on will continue to be appropriate; however, this is subject to change based on changes to circumstances and NPS policy throughout the term of the Draft Contract. 41. We are aware of Director's Order 35-B, the intent of which appears to be to pass along both NPS Operating & Maintenance costs AND capital costs associated with NPS utility systems to users. We would like to confirm how the policy direction in that order is to be applied to this concession contract. Specifically: a. Has the Associate Director, Business Services reviewed the current add-on structure that NPS states will continue during year 1 of the contract? Yes. b. Subject to material changes in improved business conditions or improved utility system efficiency, has there been tentative WASO approval to continue this same add-on structure during the remaining term of the contract after year 1? The NPS will consider add-on charges annually, Exhibit B Page B-21 4) A) Services Provided Utilities (2). c. Is the "10% cap" on annual utility rate increases assumed to apply to this concession contract? See below d. If the 10% cap is presumed to not apply, has the new contract "been fully burdened with the actual cost of the utilities, including recapitalization as part of the new contract financial analysis"? See below e. If the answer to (d) is yes, at what point during the contract term does NPS expect to rescind approval of the utility add-on amounts? See below f. If the answer to (d) is yes, please provide the amounts of capitalization / recapitalization costs by year so the concessioner can evaluate the financial and cash flow impacts of these potentially material costs. See below In accordance with NPS Policy contained in DO 35B, a "10% cap" on annual utility rate increases will not apply to the Draft Contract. The projected utility capitalization/recapitalization costs were accounted for in the Draft Contract financial analysis. In accordance with NPS policy, projected utility costs above industry norms (including projected capitalization and recapitalization costs) were anticipated as a utility add-on. The NPS will determine the actual add-on, if appropriate, based on current policy throughout the term of the Draft Contract considering actual costs and the most current industry data. 42. Does NPS anticipate the impact of DO35b to grow at inflation or differently? If differently, how does NPS anticipate the impact to grow? Projected capitalization and recapitalization costs considered inflation. The NPS also considers inflation in the industry norms used when determining the applicability of an add-on. 43. Should the water utility infrastructure replacement not proceed, does NPS anticipate further impacts/restrictions on the operations of the facilities (similar to the removal of laundry facilities)? Did NPS put any assumptions of this impact into the financial model? If yes, what were the assumptions used? The NPS expects the Concessioner to meet the terms and conditions of the Draft Contract for conserving water. The NPS does not plan for any further significant restrictions on facilities or operations related to water consumption and made no such assumptions in its financial model. 44. Can NPS please confirm how utilities will be charged at Yavapai Lodge (i.e. separately metered or an allocated lump sum fee calculated by square feet)? Separately metered. 45. Can NPS please advise what the metered Yavapai Lodge utility charges have been for the last 3 years? The Existing Concessioner has paid electrical and propane bills directly to the providers. The NPS does not have information regarding power or propane usage at Yavapai Lodge. Following are estimates of usage and charges for utilities provided by the NPS to the Concessioner by the NPS at Yavapai lodge for the past three years. Year FY2011 FY2012 FY13 Solid Waste Cubic Yards 4235 4453 4172 Est $25.25/cy $106,934 $112,438 $105,343 Year Fiscal Year 2010 FY2011 FY2012 FY13 Water in gallons 13,774,000 12,900,000 15,080,000 11,902,000 Water charges $489,527 $464,787 $543,332 $428,829 Note: Water meters were not read in September 2013 due to the government shutdown. Therefore water billings for FY13 do not include September usage. We include 2010 as a convenience to Offerors. Also note: these charges reflect actual usage and charges. They do not reflect utility pass-throughs applied to either sets of rates. 46. Could you please provide historical utility data for water, electricity, propane, and waste (trash and recycling) for all operations associated with the new 003 contract? Following are historic utilities charges for the services provided under existing contract CC-GRCA003-98. The charges for Yavapai Lodge are provided in the answer to the previous question. 2010 2011 2012 Electricity $149,475 $ 151,112 $ 150,783 Propane $ 60,470 $ 78,145 $ 64,028 Water and Sewer $ 73,382 $ 71,664 $ 82,184 Trash $ 83,177 $ 78,486 $ 71,127 Total Utilities GRCA003-98 $ 366,504 $ 379,407 $ 368,122 Usage at Trailer Village, Camper Services, Desert View Trading Post and Desert View Service Station, which were historically assigned to GRCA001: On average, solid waste charges for these four locations together for 2011-2013 were 4,700 cubic yards annually, for an average annual charge of $118,675 total. Annual Water readings and charges for these four locations were as follows: 2010 2011 2012 2013 Trailer Village Office $ 8,000 $ 6,000 $ 6,000 $ 4,000 Trailer Village $ 5,710,000 $ 4,535,000 $ 6,455,000 $ 7,360,000 Camper Services $ 2,573,000 $ 2,180,000 $2,247,000 $1,887,000 Desert View Trading Post $ 117,000 $ 143,000 $ 91,000 $ 114,000 Total usage $ 8,408,000 $ 6,864,000 $8,799,000 $9,365,000 Per thousand gallon rate 35.54 36.03 36.03 36.03 Total charges $ 298,820 $ 247,310 $ 317,028 $ 337,421 Draft Operating Plan 47. Given the GRCA003 Operational Plan, Page B-4 ‘Schedule of Operation' stipulates that the Concessioner can close some facilities seasonally subject to written approval from the Service, under what circumstances would this request be denied? Similarly, given the Service has proposed in the Business Opportunity Page 21 that the Yavapai Lodge may operate year round, does this require prior written approval and under what circumstances would approval not be granted? The NPS assumes that the Concessioner will provide all services year round, unless the Concessioner requests the reduction or closure of some services. The NPS would only deny such a request if it were required to do so by Applicable Laws, or believed that visitors or park resources would be unduly and adversely impacted by such a closure. 48. 3) F) (4) Special Events [page B-9] Are weddings considered Special Events, or are weddings exclusively addressed under 3) F) (7) (m)? Weddings are considered special events. Section 3) F) (8)(m) addresses the need for the Concessioner, as an initial part of the reservation process, to advise visitors that they need to obtain special use permits if the wedding will take place inside the Park but outside of the Concession Facilities. 49. 3) F) (7) Facility Reservations [General - page B-10] Can the concessioner provide estimated room rates for tour groups and FITs since they must produce their catalogs and brochures further out than 13 months in advance? See requirements concerning Advance Rates in Exhibit B on page B-5. 3) C) 7) (d) 50. 3) F) (7) (l) Facility Reservations [page B-10] Does the Service foresee continued approval of the current policy of holding a lodging deposit for the first night's stay? The Operating Plan states "The Concessioner generally may not hold a deposit for lodging unless the Service approves such a policy." The NPS would base such approval on deposit policies followed by appropriate comparable properties. 51. 3) F) (9) (a) Lost and Found [page B-11] DO 44 makes no reference to abandoned property. No copy of the PPMIN 05-01 was provided. Does it address abandoned property? If not, are these references appropriate in this provision? Per the Operating Plan, Pages B11 & 12, the Concessioner must develop a plan for handling unattended property in the Concession Facilities and present it to the NPS for review and approval within 90 days. The Concessioner must include procedures for disposing of abandoned property as part of its Lost and Found plan. See Amendment#1. 52. 3) F) (9) (d) Lost and Found [page B-11) Will the concessioner be restricted from accepting found items that were found outside its assigned area, especially in light of the customer service impact and consideration of (9) (b)? See Amendment#1 for CC-GRCA003-15 for revised requirements. 53. 3) F) (9) (e) Lost and Found [page B-11] "Portable electronic equipment" is a new item added to the cash requirement. What is the definition? This could include anything from space heaters to cell phones to iPods to digital cameras. What is the justification for this inclusion? "Portable electronic equipment" includes hand-held electronic devices, such as cell phones, tablets, MP3 players, e-readers, and digital cameras. See Amendment#1. 54. 3) F) (12) Internet Access [page B-12] Is it a correct assumption that free Internet is required for registered guests at the concessioner's lodges and not for all day visitors? This assumption is not correct. The requirement is for all visitors, regardless of whether they are registered guests at the lodge. The Operating Plan requires: "At a minimum, the Concessioner must provide visitors with free Wi-Fi Internet access in the Yavapai lobby, Market Plaza deli, Camper Services and at least one public facility at Desert View, either the Trading Post or the General Store." 55. 3) F) (14) (a) Employee Housing [page B-13] The concessioner is required to provide a recreation program for its employees. Will becoming a sponsoring member employer of the Community Recreation Center satisfy this requirement? The NPS does not define specific requirements of the recreation program; however, Proposal Package Question PSF3(c)2 asks Offerors to describe how they would provide a positive living situation and support community services for the employees in Grand Canyon National Park. The NPS may incorporate elements of the best offer into the final Contract. 56. 3) F) (15) (o) Assigned Employee Housing [page B-15] At Desert View, it appears that the Service is not assigning the 8-plex apartment that is currently in the concessioner's land assignment to the new 003 contract, but is assigning the 6-plex apartment building. The number of employees displaced by the removal of the Desert View Watchtower is fewer than the number of employees retained at the Desert View Trading Post, thus making the number of housing units out of proportion to the number of retained employees. Please explain the NPS rationale for this building assignment. The NPS based this reassignment on staffing plan assessments performed as part of the financial analysis associated with prospectus development. Offerors must make their own staffing and housing determinations. 57. 3) F) (15) (f)] Trailer Village Non-Concessioner Employee Sites [page B-15] Can the Operating Plan be amended to reflect a thirty day period and then prorate for partial months as per the current practice? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA003-15, the Operating Plan is subject to modification as circumstances warrant, so the NPS could consider a request to modify this provision at a later time. 58. 3) F) (17) Employee Shuttle [page B-16] Is it expected that the employee shuttle will operate between the Village and Desert View? No. The requirement for an employee shuttle is within the Village. 59. 3) F) (18) (c) Transportation Safety [page B-16] Can the language be standardized as contained in 001 and 003? They currently read as follows: 001: The concessioner must prohibit drivers from using cellular phones in any manner (including hands-free or voice activated features) while operating a vehicle. 003: The concessioner must prohibit cellular phone use by any employee driving a vehicle during working hours. Prohibited uses include hands-free use or voice activated features, as well as reading, composing or sending text messages or emails. For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA003-15, the Operating Plan is subject to modification as circumstances warrant, so the NPS could consider a request to modify this provision at a later time. 60. 3) F) (20) Commercial Laundry Facilities [page B-16] There is no designated linen storage and distribution area indicated. Where is the concessioner expected to store these items? The Concessioner must make this determination. 61. 3) G) (1) Employee Identification [page B-16] To save resources, would it be possible to note an expiration date only on the cards of the concessioner's seasonal hires? If not, what is the suggested expiration date time frame to be used on the cards of the concessioner employees? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA003-15, the Operating Plan is subject to modification as circumstances warrant, so the NPS could consider a request to modify this provision at a later time. 62. 3) G) (8) (e) Background Checks [page B-17] Since operations on the South Rim are year-round, is it the intent that the concessioner repeats background checks on all long-term employees every three years? Yes 63. 3) G) (8) (e) Background Checks [Page B-17] Currently employers are only allowed to receive information on convictions. Please clarify the requirement for obtaining information on "active wants or warrants (current fugitive from justice)". As stated in the Operating Plan, for prospective employees, the Concessioner must complete a background check that includes a search for any active wants or warrants. 64. 3) I) (1) Risk Management (Safety) [page B-20] Could the date to submit Risk Management Plan be changed to be January 31st? This would allow the concessioner to analyze calendar year data before updating the plan. For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA003-15, the Operating Plan is subject to modification as circumstances warrant, so the NPS could consider a request to modify this provision at a later time. 65. 3) I) (1) Risk Management (Safety) [page B-20] DO 50B details Federal Employee OSHA requirements 29 CFR 1960 Standards which are not applicable to the concessioner's operations. Concession operations fall under 29 CFR 1910. Since 29 CFR 1960 does not apply, could "as applicable" be added to the end of the Risk Management Plan requirement No. The Risk management Plan requirements stem from Director's Order 50B. 50B reflects the NPS' policy guidance regarding OSHA standards. The scope of DO 50B is "the occupational safety and health of our employees and others who work in the parks as volunteers, contractors, concessions employees, or in any other capacity." The DO covers all individuals working within park service units. While 29 CFR 1960 is referenced in the DO as one of many sources of authority for the DO, it isn't the sole authority. We agree that 29 CFR 1960 is only applicable to Federal employees and that concession operations fall under 29 CFR 1910. This does not change the fact that the policies of DO 50B apply to both Federal and Concessioner employees. 66. 3) I) (2) Employee Accidents/Illness Analysis [page B-20] This report is best addressed by using the OSHA 300A Summary of Work Related Injuries and Illnesses. January 5th is too soon to have all the data consolidated for reporting. Could the submission date be changed to January 31st? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA003-15, the Operating Plan is subject to modification as circumstances warrant, so the NPS could consider a request to modify this provision at a later time. 67. 3) I) (3) Illness and Infestation Prevention and Response [page B-20] West Nile Virus is transmitted by mosquitoes. Since there are few mosquitoes at the Grand Canyon, could this requirement be deleted? The Clinic advises that they have never come across any patient who showed symptoms or was suspected as having contracted Rocky Mountain spotted fever (spread by ticks) or relapsing fever (spread by ticks and lice). Are these references appropriate for this location? There have been a number of suspected cases of West Nile Virus in Coconino County, where Grand Canyon National Park is located. There have been cases of relapsing fever identified on the North Rim of Grand Canyon National Park. Rocky Mountain spotted fever has been reported in Arizona. The NPS believes it is prudent to develop procedures for recognizing and dealing with each of these illnesses in the event they occur, and therefore considers these references appropriate for this location. 68. 5) D) (3) (c) Concessioner [page B-22] Inspection reports are required within 10 days of each inspection. Could this be changed to 30 days? If not, would 15 working days be acceptable? No, the NPS believes that 10 days is a reasonable length of time between an inspection and sharing that information with the NPS. 69. 5) D) (3) (e) Post Alarm Reporting [page B-23] What is the definition of "unfounded activation"? An unfounded activation is an alarm that is not the result of a fire or other event the alarm is designed to detect. 70. 5) D) (3) (e) Post Alarm Reporting [page B-23] The fire alarm report is required by January 10th. Could this be changed to January 31st? No. 71. 5) E) (2) (c) Communication Center [page B-23] Could an exception for employee injury be added? Section 5)E)(2)(d) clarifies the requirement for employees who are on-the-job. Employees who are not on-the-job must be connected with the NPS Communication Center in the event that they request medical advice or assistance or a 911-type emergency. 72. 5) E) (2) (c) Communication Center [page B-23 - 24] With the reporting requirement under 3) I) (2) this requirement seems excessive and redundant. Can this be deleted? No. These two requirements are not redundant. One requires immediate communication of an injury or accident so that appropriate NPS resources may respond to an incident. The other requires submission of an annual summary and analysis of employee injuries. 73. 5) E) (4) Training [page B-24] The term "first responder" is no longer in use under Arizona Statutes. Would it be more appropriate to reference Basic First Aid? No. First Responder and Basic First Aid have the same meaning. 74. 7) B) (3) Midscale Lodging Standards [page B-26] Is all of Yavapai Lodge to be considered mid-scale? Yes. 75. 7) B) (3) (b) Rooms Availability [page B-26] 3 pm is one hour earlier than the current standard. What are the parameters for the 20% discount? We assume the guest must attempt to check in at or after 3pm at a time when the room is not ready. In addition, must the guest complain or is the refund automatic? The Concessioner must automatically provide the 20% discount if the room is not ready by 3 p.m. 76. 7) B) (3) (c) General Standards [page B-27] Is a lid considered a wrap? On glass count, a room with four pillows on two queen sized beds would result in 8 required glasses. Is that the intent? Yes, a lid is considered a wrap. A "pillow" refers not to the actual number of pillows but to the number of occupants. A room with two queen sized beds would require four glasses. 77. 7) B) (3) (e) Guest Room Condition [page B-27] Can the concessioner leave used linen in the hall for brief periods or when contained in a cart or other receptacle? How about curbs/sidewalks waiting for laundry to pick up? Will additional storage areas be provided? Otherwise this requirement may mean loss of use of revenue rooms. Piles of laundry lying in hallways or on curbs/sidewalks are not acceptable for any length of time. Laundry must be in a cart or receptacle. The NPS does not intend to provide additional storage areas. 78. 7) B) (3) (h) Information Packet [pages B-27- 28] What is meant by "Area newspaper"? Since Park Guides are given to every visitor at the gate and available at all Front and Transportation desks, could this Area newspaper requirement be deleted in keeping with the Service's sustainability program goals? See Amendment#1. 79. 7) C) (2) (d) Water [page B- 29] Is it the Service's intent that the concessioner provides washable glasses at quick service food locations? See Amendment#1. 80. 7) C) (10) (d) Camper Services and 7) C) (10) (e) [page B-34] Provision (d) states prepackaged sandwiches are available while (e) seems to indicate prepared to order sandwiches are an option. Can quick service sandwiches at Camper services be pre-packaged? The Concessioner may provide pre-packaged sandwiches at Camper Services. 81. 7) D) (11) (b) Items Not to Be Sold or Displayed [page B-39] Is it the Service's intention to change what Native American artisans use to create Jewelry and Handicrafts or will they be excluded from this statement? If Native Americans are not excluded, the concessioner would no longer be able to purchase Dream Catchers, Ghost Beads, some fetishes, and many other artifacts that are a big part of the Native American culture and creative process. Banning of Dream Catchers and Ghost beads would likely put an end to these crafts. The majority of hand crafted Native American artwork is produced using leather, feathers, cedar seeds, bone, and shed antlers. As regards to the plant exclusion, can an exception be made for cactus? Handicrafts and other retail items containing non-living biological materials, such as decorative feathers, seeds, nuts or flowers embedded or affixed to the item, provided they are from legally authorized sources and are labeled as originating from outside the Park, are permissible. The Concessioner must obtain approval from the NPS in regard to the use of cactus. See Amendment#1. 82. 7) F) (3) Camper Services [page B-40] It may be difficult to fix all machines within 2 business days due to delays in receiving ordered equipment. Could this be changed to 5 business days? It will remain as stated. The Concessioner is expected to attempt to fix machines in two business days; however, the NPS will work with the Concessioner if this is impracticable. 83. 7) F) (7) Camper Services [page B-40] This includes reference to both tokens and change. Does the concessioner need to provide both? See Amendment#1. 84. 10) A) (5) (b) Operational Performance Reports [pages B-43 and B-45] The Service requires the Operational Performance Report by the 5th day of each following month, but much of that data is not completely reviewed and approved until after that. Can the date be changed until the 15th day of each following month? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA003-15, the Operating Plan is subject to modification as circumstances warrant, so the NPS could consider a request to modify this provision at a later time. Concession Facilities 85. At Desert View next to the Trading Post is a building not currently in use. It was the former Grand Canyon Association store. Can that building be used by the new concessioner for storage (retail) or sales, i.e. coffee? No. This building is not assigned to the Concessioner in the Draft Contract. 86. The 1995 and 2004 Master Plans call for removal of full time employee housing at Trailer Village and moving it to Pinion Park. Is this still a desire of NPS? Although the Master Plans have not yet been changed in this respect, the NPS is considering an amendment to them in the future. 87. Can NPS please confirm that they contractually obligate the Grand Canyon Association's operations in the Park to the same requirements as the Concessioners as it relates to setting prices, products permitted for sale, approval for seasonal operations, etc.? Grand Canyon Association operates as a cooperating association under Director's Order #32 and is required to meet those requirements. Cooperating Associations are not bound by P.L. 105-391 and its regulations. 88. It has been noticed that the GCA stores product include logo tee shirts, coffee mugs and other souvenirs in addition to educational items. In the prospectus, it states the GCA may establish a small retail presence at the Desert View Watchtower. Can NPS please define "small retail presence" in revenues per year? The NPS currently envisions that retail operations will occupy the niche where jewelry is currently sold, with the larger space used for demonstrations. Gross sales are envisioned at less than $200,000 per annum. 89. When a visitor receives a receipt at the gate to the Grand Canyon, the back of the receipt advertises a 10% off coupon at the Association stores. Will NPS allow other concessioners to advertise on the back of the receipts in the future? This seems like a distinct advantage to the Association and is relatively unfair to the current concessionaires under the GRCA001 and GRCA003 contracts. No. Grand Canyon Association is a non-profit Cooperating Association that operates under a different contractual relationship with the NPS than concessioners do. The GCA's status as a non-profit organization creates a very different business model than that provided to concessioners. 90. Can NPS define who governs the product the GCA stores can sell and the process for a concessioner to dispute the sale of an item or group of items? Grand Canyon Association operates under Directors' Order 32, which describes the scope of services it provides and how the NPS approves those products and services. 91. In GRCA001 Prospectus there is reference made to "If the successful Offeror submits a proposal to renovate and use the historic Powerhouse building, and if the Service agrees, the Concessioner also will have the opportunity to provide additional visitor services in that location." Can NPS please explain why this language is absent from the GRC003 Prospectus? See Amendment#1. 92. The Prospectus states that the NPS will be doing an environmental assessment on the Powerhouse, and plans to remediate any environmental and life safety issues. Does the NPS have funding identified for these costs and information on timeframes? The NPS is committed to funding and completing a Phase I environmental audit of the Powerhouse as soon as possible. The NPS will consider those audit findings in conjunction with any conceptual plans submitted in response to the Prospectus to determine how and when to move forward with remediation of any environmental and life safety issues. 93. Has a Phase I Environmental Assessment been conducted? If yes, could you please provide a copy of the report? No, a Phase I has not been conducted. The NPS has a number of other environmental reports regarding this building. See Amendment#1. 94. Due to the scope of the current concession contracts held by Xanterra and Delaware North at the Grand Canyon South Rim and the reallocation of concession businesses, employees, buildings, LSI, and support facilities under these current contracts into two new contracts that are the subject of the solicitations GRCA001-15 and 003-15, can it be assumed that NPS will only proceed under the two proposed new contracts concurrently? For example, how would NPS proceed if it determines there is a winning responsive bid under one of the two solicitations but not under the other solicitation? The NPS has alternative plans if it is only able to award one contract under the current solicitations. 95. On what basis, if any, would NPS be allowed to extract CC-GRCA001-02 concession assets and assign those to the winning bidder of CC-GRCA003-15 if CC-GRCA001-02 remains in effect or there is not a responsive bid to CC-GRCA001-15? If GRCA003-15 is awarded and GRCA001-15 is not, GRCA001-02 will expire pursuant to its terms at the end of 2014, and the assets due to transfer from GRCA001 to GRCA003 will transfer as of the effective date of CC-GRCA003-15. 96. The NPS retains the option to buy down LSI during the term of the contract and offset the buy down with an increase in Franchise Fees as noted in Attachment 1, Exhibit A of the Draft Concession Contract. Using the initial LSI Values outlined in the Prospectus ($41,161,579), a minimum Franchise Fee of 9.4%, and assuming a complete buy down of LSI occurs during the first three years of the contract, this would increase the minimum Franchise Fee to 22.16% plus the required minimum Required Maintenance Reserve Fee of 2.0%. Our understanding is that this scenario would result in minimum combined government fees of 24.16% for the remaining term of the contract. a. Can you confirm the accuracy of the above interpretation and calculation? The above calculation is in line with the NPS interpretation. b. Was this factored into the NPS calculations? Yes. c. Did this fee fulfill the statutory obligation of NPS to provide concessioners with a reasonable opportunity for a profit? Yes. d. To provide bidders with greater certainty and allow them to prepare the required pro-formas, can NPS provide a fixed LSI buy down schedule in the concession contract that NPS agrees will not be exceeded or accelerated? No. 97. Why is the RMR fee in 003 higher than the RMR fee in 001 given the significantly smaller number of facilities and related building components in 003? The Repair and Maintenance Reserve is a percentage of gross receipts and reflects an estimation of the funds necessary to complete projects eligible for such funding; however, the Concessioner must expend sufficient additional monies to maintain the Concession Facilities to the satisfaction of the Director. 98. Can NPS please provide an indication of an approximate date they anticipate they will announce the successful Proposer? The NPS cannot do that at this time. 99. Do any of the lodging facilities in the GRCA001 Prospectus operate seasonally and if so can NPS please provide a breakdown of the operating periods by facility? All lodging facilities in the GRCA001 prospectus are expected to operate year-round, unless that Concessioner requests otherwise and the NPS approves. 100. During the years of the GRCA003 contract, NPS has implemented programs and completed projects that have adversely affected the performance of the business under the GRCA003 contract. Specifically: moving the Desert View Road, Building 900 parking sites away from the Market Plaza, banning bottled water, and the building and award of the "Bike Stand" that is in direct competition with Market Plaza. Does NPS plan on doing any other of these projects that are not outlined in the current master plan? At this time, the NPS has no plans to add additional competitive facilities in the Park, redesign infrastructure, or construct additional Concession Facilities other than those described in CC-GRCA001-15 prospectus. 101. Can NPS please indicate if there is any plan to improve signage in the Visitor Center area that may help traffic flow to the GRCA003 areas? The NPS will review signage on an ongoing basis and update as appropriate. 102. Exhibit D has the snowplowing and road maintenance map for the Village only. Is there a map for the Desert View area? No. The NPS did not produce a snowplowing/road maintenance map specifically for Desert View as the Concessioner is only responsible for snowplowing and road maintenance within the boundaries shown on the Desert View maps. 103. Will either contract (003-15 or 001-15) be assigned the 16 Trailer Village dorm units and laundry building? This represents 96 employee bed spaces that are not accounted for in the housing assignments under either prospectus. See Amendment #1. The 16 Trailer Village Dorm units are considered personal property (under the CC-GRCA001-02 Contract) that the incumbent Existing Concessioner may sell to the Concessioner. The NPS would consider use of pre-fabricated (i.e. trailer-type, personal property) dorm units as one strategy for improving employee housing. These will be added to the personal property list in the CC-GRCA001-15 Prospectus Appendix M as follows: 16 - 12 'X 60' singlewide modular housing buildings. Each of these buildings is divided into 4 efficiency apartments, each with baths. 1 - 16' X 38' doublewide modular laundry and office building. Fuel Tanks 104. Can NPS please provide the dates the Desert View gas tanks were last installed and any reports that would give prospective bidders comfort in assuming that environmental liability, inclusive of soil contamination, etc? The tanks were installed new in 2005. Since the tanks are only 8 years old, there are currently no reports associated with them. Please refer to the following question for additional detail related to these tanks. 105. We have the following questions regarding the Fuel Storage Tanks at the Desert View Service Station: a. Are the fuel storage tanks owned by the National Park Service? YES. The gas tanks are owned by the NPS and will be assigned as part of the Concession Facilities under the Draft Contract. b. What is the capacity of each fuel storage tank? There are three fuel storage tanks. One is a 10,000 gallon tank, and two are 6,000 gallon tanks. c. What are the ages of the fuel storage tanks? The tanks were installed new in 2005. d. Are the fuel storage tanks double-walled? Yes. e. Are the fuel storage tanks in compliance with all state regulations? Yes. f. Have there been any reportable leaks or spills associated with the fueling tanks? If yes, were the proper procedures taken to mediate the spills? No. g. What are the ages of the fuel dispensing units? Installed new in 2005. h. Are the fuel dispensing units required to have vapor recovery? Yes, and they do have vapor recovery. i. Can you provide information regarding the results of the most recent cathodic protection, leak detection, and tank integrity tests? The NPS does not have this information. It is held by the Existing Concessioner. j. Could you please provide a copy of the tanks registration? The NPS does not have this information. It is held by the Existing Concessioner. 106. Please provide more information for FMSS code #234652 Desert View Service Station Fuel - System, Asset Type 5700, and built in 2000. Are these tanks for the fuel dispensing system? Yes. These are the fuel tanks, dispensers and associated infrastructure. See Amendment #1. 107. We have the following questions regarding any other Fuel Storage Tanks, above ground storage tanks AST(s) or underground storage tanks UST(s) associated with the 003 contract: a. Are there other above ground storage tanks AST(s) or underground storage tanks UST(s) throughout the operation? There are several above ground propane tanks throughout the operation and housing, currently operated on a lease arrangement between the Concessioner and an outside propane company. These include tanks at Camper Services and at Yavapai lodge. There are no USTs. b. If yes, how many AST(s) or UST(s) are there? Where are the tanks located? See response to part a. above c. What are the contents in the AST(s) or UST(s)? With the exception of the ASTs at Desert View Service station, which contain auto fuel, the tanks contain propane. d. What is the capacity of the AST(s) or UST(s)? See response(s) above e. What are the ages of the AST(s) or UST(s)? See response to Question 106 f. Have there been any reportable leaks or spills associated with AST(s) or UST(s)? No. g. Are there any closed UST(s) located on the land assignment? If yes, could you please share the closure documentation? No.
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Place of Performance: Address: Grand Canyon National Park, Grand Canyon, Arizona, 86023, United States; Zip Code: 86023
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M -- Responses to Questions regarding Solicitation for the award of the Concession Contract for Lodging, Food & Beverage, Retail, and Other Services within Grand Canyon National Park under CC-GRCA003-15 (Part 1 of 2)