FBODaily.com | FedBizOpps: MOD | M | Responses to Questions regarding Solicitation for the award of the Concession Contract for Lodging, Food & Beverage, Retail, Transportation, and Other Services within Grand Canyon National Park under CC-GRCA001-15 (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, Transportation, and Other Services within Grand Canyon National Park under CC-GRCA001-15 (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-GRCA001-15
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-GRCA001-15). 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-GRCA001-15 and CC-GRCA003-15, 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 1 (and 25) - Required Visitor Services. What is the Service's expectation of the scope of "roadside assistance service"? We did not see mention of roadside assistance in the Operating Plan. See Amendment #1 for CC-GRCA001-15. 3. Page 2 - Authorized Visitor Services. What is meant by "limited automobile garage services" and where will these services be provided? Is this for visitor vehicles? We did not find mention of these services in the Operating Plan. See Amendment #1 for CC-GRCA001-15. 4. No Page Reference -There is no mention of auto towing service. Is this service no longer provided in the park? We did not find mention of towing service in the Operating Plan. The NPS considers auto towing service part of roadside assistance. See Amendment #1. 5. Page 3 - Estimated Initial Investment. Has NPS included in its estimated Personal Property Initial Investment amount all the personal property replaced by the existing concessioner over the course of the current contract for which the concessioner requested LSI under the fixture rule but was 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. 6. 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 concessioner that constitutes "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. 7. Page 10 - Retail. What is the expected timing of the removal of the personal property at Yavapai, Desert View Service Station, Desert View Trading Post Gift Shop, and Desert View Trading Post Snack Bar? The NPS expects that the current concessioner will negotiate with the incoming concessioner regarding a number of transition issues, including this one. Until such negotiations occur, regard December 31, 2014 as the date when the Existing Concessioner should remove such property. 8. Page 10 -Retail. What is the expected timing of the removal of merchandise and personal property at the Desert View Watchtower? Does NPS intend to purchase any of the personal property at the Watchtower? Is there a specific list of the personal property that NPS requires the current concessioner to remove from the Watchtower? If so, please identify. The NPS expects the Existing Concessioner to remove merchandise and non-historic personal property from the Watchtower at the end of the CC-GRCA001-02 contract, i.e., December 31, 2014. The NPS does not have a specific list of non-historic property to be removed from the Watchtower. Please refer to Exhibit J of the Existing Contract for a list of the historic personal property that must remain at the Watchtower. The NPS expects to acquire title to that historic personal property. 9. Page 13 - Existing Concessioner Operations. The table states that there are 70 guest trailer sites at Trailer Village when there are currently more than that. Is this an oversight or is the number of guest sites being reduced? The correct number of guest sites available as of September 27, 2013 is 80. See Amendment #1. 10. Page 15 - 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 re-assigned with the removal of Yavapai Lodge, Camper Service, and Trailer Village from the 001 contract, and will result in the displacement outside the park of hundreds of employees working under contract 001. Please explain the NPS rationale for these building assignments. The NPS based the assignment of housing for both the GRCA001 and GRCA003 Draft Contracts on an analysis of the two business opportunities and an estimate of staffing requirements for each. Offerors must make their own analysis of housing and staffing needs based on their industry knowledge and best management practices. 11. Page 15 - Employee Housing. With the removal of a significant number of housing units in contract 001, hundreds of employees will be forced to live outside the park. Has NPS taken into consideration the financial impact to the concessioner and employees, the environmental and financial impacts of putting more vehicles on the road, and the availability of water and other resources outside the park when writing this prospectus? See the response to Question No. 10 12. Page 16 - Required CFIP Improvement Projects. The CFIP schedule seems very aggressive. Will the Office of Planning and Compliance (OPAC) be able to review and process the entire program as specified? Will this allow the Concessioner enough time to design, process through GRCA compliance, and develop the facilities in accordance with the timetable outlined? The Motor Lodge and Quad Cabin compliance review process is projected to take 6 months, leaving 3 months for design and 90 days to construct. Does NPS consider this realistic? The NPS is committed to the CFIP schedule as outlined in the Prospectus and will work with the Concessioner regarding the timetable after Contract award. 13. Page 17 - Demolish Existing and Construct Maswik South Lodging. Is the intent of this new lobby space a check-in space or a public space for quick food service? Would guest registration still be handled at the main Maswik Lodge complex? The new lobby space will serve as a public area where (among other appropriate activities) the Concessioner must provide a quick service food operation (Page 17 of the Business Opportunity). Guest registration may remain in the main Maswik Lodge complex, where Maswik South guests currently register, but the Offeror may propose otherwise. 14. Page 17 - Mobile Food Service. Will the trucks be able to go anywhere in the park as demand warrants? No. The Concessioner is required to keep the trucks within its Concession Facilities. • Can they operate seasonally? The Concessioner must provide its plan, including its proposed schedule for these operations, for NPS approval. • Are there any restrictions on size, fuel source, noise limitations or signage? See Exhibit B Operating Plan Sec. Page 44 7) C) 11) Mobile Food Trucks The NPS expects that the size will be similar to typical urban food trucks (approx.7-8' wide X 25' long). The NPS expects that the Concessioner will propose best practices regarding fuel source, noise and signage. • Will push carts be allowed along the rim? No. Push carts are not a required or authorized service. See Amendment #1. • How will menu pricing be determined? (CPI or comparability) See Exhibit B page B-4 Sec. 2)C)(4)(a) Food and Beverage • Is it a correct assumption that these are only required during peak demand periods? The Concessioner must provide its plan including its proposed schedule for these operations for NPS approval. • Has a location been identified where the trucks can be cleaned daily? The Concessioner will need to determine a location for cleaning its trucks within its Concession Facilities. 15. Page 18 - Conversion of McKee Warehouse. The McKee Warehouse (34115 / 272) currently has a diesel-fired boiler and is reported to have a malfunctioning fire suppression sprinkler system. Will these items be replaced or repaired prior to turnover to the concessioner? The NPS does not plan to replace or repair these or any other items in the building at this time. 16. Page 18 - Conversion of McKee Warehouse. Has a Phase I Environmental Site Assessment (ESA) or some other type of environmental assessment been completed for the McKee Warehouse? If so, could NPS distribute copies? The NPS has not completed a Phase I Environmental Site Assessment for the McKee building. 17. Page 18 - Conversion of McKee Warehouse. How many underground storage tanks (USTs) are currently present in and around the McKee Warehouse? There is one 10,000 gallon UST at the McKee Building, which is still in use. 18. Page 18 - Conversion of McKee Warehouse. What materials have historically been stored in the USTs at the McKee Warehouse? Heating oil 19. Page 18 - Conversion of McKee Warehouse. Can NPS provide construction details for the USTs at the McKee Warehouse including capacity, date of installation and type (single-wall steel, double-walled fiberglass, monitoring systems in place, etc.)? See Amendment #1 (Appendix Z) for original construction drawings for the McKee Building, which include the details of the UST installation. 20. Page 18 - Conversion of McKee Warehouse. A door labeled "Boiler Room" was noted on the exterior of the McKee Warehouse on the south side. This room was not opened during the walk-through. What types of boilers are located within the room? Can details be provided - size, fuel type, and date of installation? The McKee Building has two diesel boilers. Both are Columbia WL140 boilers. One was installed in 1982 and one in 2010. 21. Page 18 - Conversion of McKee Warehouse. Besides the subsurface hoists inside the building and the underground storage tanks, are there any other subsurface features such as sumps, basins, or floor drains at the McKee Warehouse? See Amendment #1 (Appendix Z). 22. Page 18 - Conversion of McKee Warehouse. Can NPS provide the date of installation for the existing subsurface hoists within the McKee Warehouse? The NPS believes that these were original with the building's construction. 23. Page 18 - Conversion of McKee Warehouse. Is NPS aware of any existing asbestos-containing materials (ACM) or lead-based paint at the McKee Warehouse? The NPS has an asbestos survey for this building. See Amendment #1 (Appendix Z). The NPS has no information regarding lead-based paint. 24. Page 18 - Conversion of McKee Warehouse. Arizona Department of Environmental Quality records show at least eight USTs belonging to NPS that have been removed from the maintenance area where the McKee Warehouse is located. Is NPS aware of any legacy subsurface contamination as a result of these USTs that have been removed? The NPS is not aware of any such contamination. 25. Page 18 - Conversion of McKee Warehouse. Who would assume responsibility for any environmental testing and remediation needed as a result of past activities in and around the McKee Warehouse including asbestos and lead based paint remediation? If the concessioner, has NPS included in its estimated cost of the McKee Warehouse conversion these testing and remediation costs? If so, what are they? The NPS will assume responsibility for environmental testing and remediation as needed including asbestos and lead paint remediation. 26. Page 18 - Conversion of McKee Warehouse. Are there any outstanding regulatory requirements from Arizona Department of Environmental Quality (AZDEQ) or other regulatory agencies relative to environmental remediation or contamination for which the concessioner will be responsible in the area of the McKee Warehouse? There is currently no open enforcement action by AZDEQ for this building. The NPS will perform any future remediation or abatement work in conformance with both the State and Federal requirements. 27. Page 18 - Conversion of McKee Warehouse. Are the existing USTs registered with the Arizona Department of Environmental Quality? The date of construction for the McKee Warehouse is omitted from Exhibit D of the prospectus. Can the construction date be provided? No. The tank in question is not considered a regulated underground storage tank because it is used for storing heating oil for consumptive use on the premises where stored according to Arizona statutes. The McKee Warehouse was constructed in 1964. The NPS will add the year built to Exhibit D. See Amendment #1. 28. Page 18 - El Tovar Valet Parking. What is the anticipated timing of the implementation of the El Tovar valet parking? The space designated for this function is currently being utilized as the concessioner's fleet maintenance and public garage facility. The GRCA001 Business Opportunity, Page 16, Exhibit 8, lists the project start year as 2015 with the first year of full operation in 2016. The NPS will work with the Concessioner to coordinate implementation of this project. 29. Page 18 - El Tovar Valet Parking. Will valet parking be limited to El Tovar only, or will Kachina also be included since guests check-in for Kachina through the El Tovar front desk? The Draft Contract requires the Concessioner to provide this service with pickup and drop-off at the El Tovar. The Concessioner will provide its proposal for the specifics of the activity to the NPS for review and approval. Valet parking is not limited to El Tovar registered guests, and the Concessioner may provide it (for example) to Kachina guests, day use visitors, dinner guests, or anyone else who wishes to use the service. 30. Shirley Hall Page 19 - Withdrawal of Concession Facilities. This section calls for the withdrawal of Shirley Hall (the current concessioner's human resources building). The 1995 Grand Canyon General Management Plan (pg. 36) calls for this function to be relocated to the concessioner's General Office Building after the public garage function is removed. Has the necessary regulatory compliance been satisfied to allow for this change? If so, please specify in what document(s) and provide them. The NPS will conduct full compliance for this change in the event that it is implemented. The 1995 General Management Plan provides the foundation for this decision. 31. Page 22 - Projected Lodging Operating Metrics. The Average Daily Rates appear to be overstated in several locations. How did NPS determine these rates? The Occupied Room Nights also appear to be overstated. For example, Kachina Lodge reflects 15,000 - 18,000. The maximum possible room nights if every room was sold every night of the year would be less than the top of the range. How did NPS determine the Occupied Room Nights? The same concern applies to some of the average food checks and retail average transaction amounts. Is NPS anticipating significant near-term changes to currently approved rates or economic conditions for purposes of its financial analysis? See Amendment #1. 32. Page 23 - Retail. "As noted, retail revenues exhibited slight fluctuation between 2009 and 2011. The NPS expects this trend to stabilize and improve." What is the basis of NPS' expectation? The economic downturn of 2008 caused a notable dip in economic activity. The NPS expects the gradual recovery to continue. Offerors must make their own projections and develop their own assumptions. 33. Page 25 - Projected Future Expense Assumptions. Will the management positions that must be located outside of the park be identified, and is there a proposed time frame for this move? The Concessioner must make its own determination regarding which management positions it will move outside of the Park. The Concessioner will begin operations on the effective date of the new contract, projected as January 1, 2015. 34. Pages 25 and 27 - Repair and Maintenance Reserve. In setting the Repair and Maintenance Reserve in contract 001 with over 200 buildings, how did NPS come to the conclusion that an appropriate rate is 1.3%, yet the Repair and Maintenance Reserve in contract 003 with 48 buildings is set at 2%? Is NPS assuming that the 001 concessioner will wind up spending amounts significantly greater than the rate identified in the prospectus? 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. 35. Page 27 - Estimated Initial Investment. The Service has estimated Working Capital at approximately $1.1 million in 2015 dollars to include merchandise inventory. How was this number determined since it appears to be low by at least several million dollars? The Offeror must make its own determination of appropriate working capital. This number was developed through independent professional analysis. 36. No Page Reference - Given the magnitude of impact on profitability in contract 001 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, natural disasters or any other event which may cause business interruption, in its financial analysis. 37. No Page Reference - Since the concessioner is not able to assess the NPS utility system, please provide clarity, absent a catastrophic failure, on whether the Utility Add-On was factored into the NPS' prospectus financial analysis after the first year? 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. 38. No Page Reference - Currently the concessioner is allowed to show the Utility Add-On as a percentage charge on all receipts except for lodging folios. Will this presentation technique continue to be allowed or will NPS require that the Add-On cost be included without disclosure in the cost of the products/services? "The Concessioner may not show utility add-on amounts as a separate line item on Concessioner billing (receipts). The Concessioner must incorporate the add-on amount into the advertised rate or price." Exhibit B Operating Plan Page B-4. 39. 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-22 4) B) 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. Draft Operating Plan 40. 3) F) (5) Special Events [page B-9] Are weddings considered Special Events, or are weddings exclusively addressed under 3) F) (8) (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. 41. 3) F) (8) 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, Page B-5 2) C) 7) (d). 42. 3) F) (8) (l) Facility Reservations [page B-11] 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. 43. 3) F) (8) (p) Facility Reservations [page B-12] Will the Service allow the Phantom Ranch lottery system to be done completely on-line? Are Phantom Groups subject to the lottery system? Are there any special provisions for river trips? The Concessioner must submit its draft policies for Phantom Ranch reservations for review and approval by the NPS. Exhibit B, Page B-12 3) F) (8) (p) 44. 3) F) (8) (p) Facility Reservations [page B-12] The last bullet point states the concessioner must "Establish a deposit and refund policy for Phantom Ranch that discourages last-minute cancellations." Would a 30 day cancellation/no refund policy be acceptable since it is difficult to sell this type of trip within less than that time period? The Concessioner must present its deposit and refund policy to the NPS for review and approval. 45. 3) F) (10) (a) Lost and Found [page B-12] 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, Page B-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 for CC-GRCA001-15. 46. 3) F) (10) (d) Lost and Found [page B-12) 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 in consideration of (10) (b)? See Amendment#1 for CC-GRCA001-15 for revised requirements. 47. 3) F) (10) (e) Lost and Found [page B-12] "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. 48. 3) F) (12) Internet Access [page B-13] 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 El Tovar lobby and mezzanine area, the Bright Angel lobby area, the Maswik lobby area, and in the Maswik cafeteria. 49. 3) F) (14) (a) Employee Housing [page B- 13] Does the current concessioner's E-café and employee meal discount program suffice or is there a more specific "meal plan" required? The Concessioner is required to provide a meal plan and operate an employee dining room. The NPS is not requiring a specific type of meal plan. 50. 3) F) (14) (d) Employee Housing [page B-14] Will there be an exception for Colter Hall residents? Can these spaces be designated for concessioner use only? Concession employees may not park on the rim, and this includes Colter Hall employees. 51. 3) F) (14) (p) Employee Housing [page B- 15] When will the concessioner operating Contract 001-15 have to vacate the employee housing that is being assigned to the 003-15 contract? All Concession Facilities assigned to the CC-GRCA003-15 Contract must become available as of the effective date of CC-GRCA003-15. 52. 3) F) (14) (p) Employee Housing [pages B-15-16] Pinyon Park - 23 sites are noted as assigned. There are currently 24 sites. Is the lost site specifically identified? Mohave East - Notes a three bedroom apartment inventory of 4. This does not appear to account for the three 3-bedroom units that the Service returned to the Concessioner in 2012. Will the Concessioner lose use of those 3 units? There are 24 sites. The three 3 bedroom units the NPS allocated to CC-GRCA001-02 in 2012 will continue to be allocated to CC-GRCA001-15. See Amendment #1. 53. 3) F) (15) (d) and (f) Pinyon Park and Mohave East [page 16] These sections refer to a 14-day rental and billing period; however, the current concessioner bills and residents pay on a thirty-day period with proration for partial months. Can the Operating Plan be amended to reflect this current practice? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA001-15, 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. 54. 3) F) (20) Commercial Laundry Facilities [page B-17] While the Main Laundry activities have been severely scaled back, the concessioner still must process several thousand pounds per day of mule blankets, biohazard waste, rags, and other miscellaneous linens. Will the concessioner be allowed to continue in this manner? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA001-15, 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. 55. 3) G) (1) Employee Identification [page B-17] To save resources, would it be possible to note an expiration date only on the cards of concessioner's seasonal hires? If not, what is the suggested expiration date time frame to be used on the cards of concessioner employees? For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA001-15, 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. 56. 3) G) (8) (e) Employee Hiring Practices [page 18] 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. 57. 3) G) (8) (e) Employee Hiring Practices [page B-18] Currently, employers are only allowed to receive information on convictions. Please clarify the requirement for obtaining information on active warrants. 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. 58. 3) H) (1) Employee Recreation Program [page B-20] Please elaborate on how the Community Rec Center will be run. Currently, the concessioner provides staffing, operating expenses, and day to day maintenance and is compensated for only 15% of total cost of these services. NPS provides building capital, and the Rec Center Cooperative is a non-profit entity that collects receipts and purchases all non-operating items. Will this arrangement stay the same or does the Service foresee this changing? The Employee Recreation Program will be run as described in Exhibit B, the Operating Plan, 3H, Pages 20-21, which states in part: "the Concessioner may recover its costs, but must not operate the Community Recreation Center as a profit center." The NPS expects that the Concessioner will support the Community Rec Center in a way appropriate for the number of its employees who use the center. Information about the NPS role in supporting the Recreation Center is available in Exhibit H, Maintenance Plan, Part B, 1J, page H-17. The current arrangement, in which a non-profit organization oversees some of the recreation center operations, is acceptable to the NPS. 59. 3) I) (1) Risk Management(Safety) [page B-21] Could the date to submit Risk Management Plan be changed to be January 31st? This would allow the concessioner to summarize and analyze calendar year data before updating the plan. For the purposes of the Prospectus, it will remain as stated. After the award of CC-GRCA001-15, 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) I) (1) Risk Management (Safety) [page B-21] 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, can "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 C.F.R. 1960 is referenced in the DO as one of many sources of authority for the DO, it is not the sole authority. The NPS agrees that 29 C.F.R. 1960 is only applicable to Federal employees and that concessions operations fall under 29 CFR 1910; however, the policies of DO 50B apply to both Federal and concession employees. 61. 3) I) (2) Employee Accident/Illness Analysis [page B-22] 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-GRCA001-15, 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) I) (3) Illness and Infestation [page B-22] West Nile Virus is transmitted by mosquitoes. Since there are very few mosquitoes at the Grand Canyon (and at Phantom Ranch) 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, developing policies that reduce their risk (such as minimizing standing water that allows for mosquito breeding), and therefore considers these references appropriate for this location. 63. 5) D (3) (c) Concessioner [page B-24] 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. 64. 5) D (3) (e) Post Fire Alarm Reporting [page B-24] 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. 65. 5) D (3) (e) Post Fire Alarm Reporting [page B-24] The fire alarm report is required by January 10th. Could this be changed to January 31st? No. 66. 5) D) (3) (h) Concession Structural Firefighting [page B-25] Could the words "or equivalent" between "training" and "as" be inserted so that it would read: Concession firefighters must meet the standards for training or equivalent as outlined in DO/RM-58? No 67. 5) D) (3) (h) Concession Structural Firefighting [page B-25] It seems the "bypassing the Concessioner Switchboard" could be used to prohibit critical communication that the concessioner would need in order to properly deploy all resources in the event of a fire (such as Engineering, Risk Management and General Management). Could "bypassing the Concessioner Switchboard" be deleted? The NPS will delete this. See Amendment #1. 68. 5) E) (2) (c) Communications Center [page B-26] Could there be an exception for employee injury? 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. 69. 5) E) (2) (d) Communications Center [page B-26] With the reporting requirement under 3) I) (2) this requirement seems excessive and redundant. What is the intent of this apparent double reporting? 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. 70. 5) E) (3) Automated External Defibrillator [page B-26] In the 003 Draft, this ends with: "The Concessioner must train its front desk and security personnel in use of the defibrillator." Should this sentence be added to 001? Yes. See Amendment #1. 71. 5) E) (4) Training [page B-26] The term "first responder" is no longer in use under Arizona Statutes. Would it be more appropriate to reference Basic First Aid? Yes. See Amendment #1. 72. 5) E) (5) Scene Operations [page B-26] What is meant by "or transport considerations"? This could mean that the concessioner's on-scene personnel could not recommend that EMS Ambulance response be called. Could the "or transport considerations" be deleted? No. Concessioner personnel are required to call the NPS when there is an injury or illness. 73. 5) E) (6) EMS Equipment [page B-26] Who provides the authorization for this medical equipment? Authorization comes from the NPS based on the Grand Canyon National Park Emergency Medical Services Protocols and Procedures, which are based on DO-51, Emergency Medical Services and its attending manual. 74. 7) E) (6) Scheduled Tours [page B-48] The Bright Angel Tour was discontinued over ten years ago. Can it be deleted from the list of tours? For stops on the Desert View tour, the current concessioner was granted permission to stop at Navajo Point instead of Lipan Point for safety reasons during the summer high visitor volume period. Can this accommodation be included? The NPS will make these changes. See Amendment #1. 75. 7) B) (3) (a) Room Availability [page B-29] 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) (d) Ice Buckets & Glasses [page B-29] Is a lid considered a wrap? Yes. 77. 7) B) (3) (e) Housekeeping [page B-29-30] 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? 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 [page B-30] 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 Service's sustainability program goals? See Amendment #1. 79. 7) C) (2) (g) Water [page B- 35] Is it the Service's intent that the concessioner provides washable glasses at quick service food locations? See Amendment #1. 80. 7) C) (9) Service Hours of Operations [page B- 40] Is there a defined area that Maswik Pizza Pub deliveries are restricted to? What is the definition of "all day"? Pizza Pub deliveries are restricted to the boundaries of the South Rim. The NPS expects deliveries to be available during operating hours 11 a.m. to 11 p.m. See Amendment #1. 81. 7) C) (10) Specific Standards [page B-42] Maswik Pizza Pub is listed under Full Service Family Casual. Will host/hostess seating be required? Will table side service be required? See Amendment #1. 82. 7) D) (7) (b) Items Not to Be Sold or Displayed [page B-46] 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 re-sell 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. In 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. 83. 7) E) (3) (c) Driver Requirements [page B-47] Instead of "Community First Aid" which to our knowledge is not a term in use in the U.S. (Australian and Canadian in origin), would it be more appropriate to reference Basic First Aid? For this Contract, the terms "Community First Aid" and "Basic First Aid" mean the same thing. 84. 7) E) (7) (c) Taxi Service [page B-48] Would the complimentary transportation for guests be at any time during the day or night and for any reason? Would this only apply to each concessioner's assigned lodging? (This provision is not in the 003 draft. Should it be?) The Concessioner must provide complimentary transportation for guests at all lodging facilities at any time during the day or night for any reason. This requirement is not in the GRCA 003 Draft Contract because there is parking immediately adjacent to Yavapai Lodge. 85. 7) E) (8) Valet Service [pages B-48 - 49] Would it be possible to move Valet Services out from the management of Transportation and into Lodging? It would seem to make better sense being managed by the front desk for the convenience of providing fluid service for checking out guests, handling their luggage, and retrieving their cars. The Concessioner may manage valet services in whatever manner it finds most effective. The Operating Plan provides the standards for valet services within the transportation section, but does not require the Concessioner to administer the service by the Concessioner's transportation department. 86. 7) E) (8) (a) Valet Service [page B-48] Will valet parking be limited to El Tovar registered guests only, or will Kachina be included? There are 127 guestrooms with Kachina included. Guests check in for Kachina through ET front desk. The Draft Contract requires the Concessioner to provide Valet Service with pickup and drop-off at the El Tovar. The Concessioner must submit its proposal for the specifics of the service to the NPS for review and approval. Valet parking is not limited to El Tovar registered guests; the Concessioner may provide the service to Kachina guests, day use visitors, and dinner guests, etc. 87. 7) E) (8) (c) Valet Service [page B-49] Has the following been taken into consideration for the valet parking locations? While the improvements to the Garage mandate an update on the sprinkler system, it does not address the need to include an exhaust system for engine exhaust. With office occupancies at the General Office, the concessioner will need to make sure that a proper and effective exhaust system is in place. Will the one way traffic at the base of El Tovar hill be changed to accommodate a left hand turn from El Tovar Circle Road? If not, this could cause serious delays and poor guest service. The existing garage facility has equipment for ventilation of vehicle exhaust. The intersection at the base of El Tovar is awkward and may be susceptible to motorists making mistakes. The NPS will review the area and determine whether signage and striping would permit a left-hand turn. 88. 7) F) (9) (d) Personnel [page B-50] The current concessioner personnel have been trained in the past by NPS; however, the training was made available on a limited basis. After receiving training from NPS, will one of the concessioner's managers be able to be certified to train the remainder of the staff? See Amendment #1. 89. 7) F) (9) (h) One-Way Mule Trips [page B-51] The concessioner currently operates two types of One-Way Mule Trip service: the emergency drag-out service that is initiated only with authorization from NPS and a reserved in advance one-way service that allows for one to five mules to go in or out of the Canyon in addition to the normal string of 10 guest riders in and out of Phantom Ranch. Is it the Service's intent that both types of trips continue? Yes. 90. 7) F) (2) Kennel Service [page B-52] The ABKA discontinued their operations prior to 2005. The only active equivalent that we were able to find evidence of is the International Boarding & Pet Services Association. Is it appropriate to change the reference to the IBPSA? See Amendment #1. 91. 7) G) (4) (c) Location [page B-54] Is the information contained in a Guest Service Directory satisfactory to meet this requirement? No. 92. 8) A) (2) Relocation Plan [page B-54] and Exhibit D Map 09. It appears that the administrative office building 2E (Dutton Building) and the "old Cardboard Recycling" shed are not included in the McKee building site. Both buildings were part of the NPS maintenance/Engineering facility. Is this an oversight? No. The Dutton building and the shed are not part of the McKee building site. 93. 8) A) (4) Relocation Plan [page B-54] The Business Opportunity document (pages 15 and 18) indicates that the conversion of the McKee Building is to accommodate relocation of the current concessioner's Garage and Maintenance Operations. The current public garage is approximately 12,000 square feet, plus Maintenance is 25,000 square feet for a total of approximately 37,000 square feet. How does NPS see this fitting into a space of approximately 18,000 square feet (less 1/3 being used by the 003 concessioner)? Is the concessioner expected to construct facilities outside the park to accommodate these functions? If so, were the anticipated additional costs to the concessioner factored into the prospectus and what are these costs? If not, what other options are available for concessioner maintenance use? Offerors must submit proposals based on the space to be assigned under the Draft Contract. The NPS considered costs associated with this changed space, but Offerors must make their own determinations. 94. 10) A) (3) (5) (b) Operational Performance Reports [pages B-56 and B-60] 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-GRCA001-15, 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 95. No Page Reference - We cannot locate the current concessioner's Rooms Department "spur" storage area. Was this overlooked? The NPS did not assign this area to the Concessioner. Maintenance Plan 96. 1) L) (2) (c) Corrals and Backcountry Trail Maintenance [page H-18] There is no reference to the Kaibab Trail. Please explain. See Amendment #1. Maswik Lodging 97. Regarding the replacement Maswik lodges, would it be acceptable to start with 10 units with kitchenettes, then phase in the remaining 20 to meet the total kitchenette unit requirement of 30, depending on demand? Units could be designed for easy after-the-fact installation of the kitchenettes should demand warrant this. No. The Concessioner must complete 30 kitchenette units. 98. Would NPS consider a realignment or possible partial removal of the existing road dividing building 1 from buildings 2-6 at the Maswik South complex? The NPS would consider this as part of an overall design concept for review. 99. Regarding the individual historic cabins, no exterior wall or ceiling interstitial space currently exists. To provide insulation, all exterior walls would require further "fur-out" on the interior to accommodate insulation. These modifications would require temporary removal of interior finishes and would result in a reduction of the unit's interior floor space. Is this acceptable to NPS? The CFIP relating to the historic quad cabins must meet or exceed all standards set by the NPS and the AZ State Historical Preservation Office. The stated "fur-out" alternative is currently preferred by the NPS, pending review of all specific alteration plans. 100. Regarding the historic quad cabins, would it be acceptable to increase the roof thickness profile so as to install rigid insulation above the roof deck to meet the requirement for winterizing these cabins? Interior insulation is preferred if the structures will accommodate it; however, the NPS may consider other plans if they meet or exceed all standards set by the NPS and the AZ State Historical Preservation Office and do not interfere with the visual character of the eaves assembly. 101. Are additions or modifications allowed to the cabins? The Concessioner may propose modifications to the cabins for NPS approval. Exterior modifications must meet the Secretary of the Interior's Standards for Rehabilitation. 102. Considering the intent to winterize the historic cabins, does the negative impact on the historic fabric of these cabins resulting from adding insulation make sense considering that the cold months generally coincide with off-peak (lower demand) periods of guest room occupancy? The NPS believes that there is potential for adequate off-season demand for these historic cabins. Offerors must make their own determinations regarding the opportunity and how they would maximize use of these cabins. 103. Please confirm the requirements of the "new lobby space" at the Maswik lodges, beyond providing "grab and go" concessions. It is assumed that all guest relations, including check-in/out, will remain in the existing Maswik lodge building? The new lobby space will serve as a public area where (among other appropriate activities) the Concessioner must provide a quick service food operation (Page. 17 of the Business Opportunity). Guest registration may remain in the main Maswik Lodge complex, where Maswik South guests currently register, but the Offeror may propose otherwise 104. Please clarify which units are included in the requirement to "improve historic cabin and rim unit interior finishes at the Bright Angel Lodge". Does this include all cabins, quad and single? Yes. 105. Is there a height restriction for the new Maswik Lodges? The Offeror should assume any new structures may be no more than two stories high. 106. Please clarify the new footprint of Maswik South. Is it contained by the current road? What is the actual size of the footprint? The new footprint consists of the area encompassed by the existing buildings, parking, and drives. 107. Is the 120 rooms a cap? Can this be higher or lower? 120 rooms is the maximum. 90 rooms is the minimum. 108. Is ADA access required to all or some cabins? The requirements of the ADA/ABA apply to all Park projects. Certain exceptions are permitted to qualified historic buildings and facilities if compliance with the requirements would threaten or destroy the historic significance of the building or facility. Although not all cabins would be required to be accessible, some may be required to be accessible. 109. Did NPS make any assumptions about abatement requirements and costs in calculating the costs of the Maswik South demolition work? If so, what are these abatement requirements and costs and total demolition costs? The NPS did not make any assumptions about abatement requirements in the Maswik South demolition project. 110. Given the unusual situation in which the concessioner is required to demolish the existing Maswik South complex before replacing it, does NPS agree that the demolition costs are eligible direct or indirect costs for LSI purposes? The NPS believes that some demolition costs may be eligible for LSI credit subject to review and approval. 111. 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. 112. On what basis, if any, would NPS be allowed to unilaterally modify CC-GRCA001-02 and reduce concession services and extract 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. 113. General Question. 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 ($137,843,453), a minimum Franchise Fee of 6.0%, 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 23.92% plus the required minimum Required Maintenance Reserve Fee of 1.3%. Our understanding is that this scenario would result in minimum combined government fees of 25.22% for the remaining term of the contract. Can you confirm the accuracy of the above interpretation and calculation? a. Was this factored into the NPS calculations? Yes. b. Did this fee fulfill the statutory obligation of NPS to provide concessioners with a reasonable opportunity for a profit? Yes. c. 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. 114. Can the future concessioner(s) build employee housing in the park? Will the Service be adding new housing to the park? No. See Business Opportunity GRCA001 Page 15 and Business Opportunity GRCA003 Page 13. 115. Is it a given that the Powerhouse will be part of one or the other contract? No. As stated, "If the proposed use(s) and associated costs are acceptable to the Service, it may seek to negotiate an amendment to the Draft Contract (after its effective date) to assign the Powerhouse as a Concession Facility and authorize specified services for the Concessioner to provide." (Proposal Package, Potential Additional Concession Facility and Authorized Service(s) at the Powerhouse, GRCA001 Page 24, GRCA003 Page 19.) 116. Could the food truck operations be awarded to a separate operator? No. The Concessioner must provide all the Draft Contract required services. As stated in the Draft Contract, Sec. 19. General Provisions, "Subconcession or other third party agreements, including management agreements, for the provision of visitor services required and/or authorized under this Contract are not permitted." (GRCA001 Page 23) 117. Can both contracts be awarded to a single company? Yes. 118. If the contracts are awarded to the same company, would the company be required to operate them as separate entities? Yes. 119. Will you announce who the Offerors are after the offer period closes? The NPS makes this information available after the award of a concession contract through property requested post-award debriefings. See Proposal Instruction #8 (Part II of the Prospectus).
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Place of Performance: Address: Grand Canyon National Park, Grand Canyon, Arizona, 86023, United States; Zip Code: 86023
Record: SN03222322-W 20131027/131025233718-d531a6186399c3e3bbfcc52bfde0e485 (fbodaily.com)
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M -- Responses to Questions regarding Solicitation for the award of the Concession Contract for Lodging, Food & Beverage, Retail, Transportation, and Other Services within Grand Canyon National Park under CC-GRCA001-15 (Part 1 of 2)