MODIFICATION
M -- Concession Business Opportunity for Lodging, Camping, Food and Beverage,
- Notice Date
- 6/18/2015
- 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-VIIS001-16
- Point of Contact
- William Stevens, Phone: (404) 507-5636, William Gordon, Jr., Phone: (305) 242-7762
- E-Mail Address
-
bill_g_stevens@nps.gov, William_Gordan@NPS.GOV
(bill_g_stevens@nps.gov, William_Gordan@NPS.GOV)
- Small Business Set-Aside
- N/A
- Description
- Concession Business Opportunity for Lodging, Camping, Food and Beverage, Retail, Equipment Rental and Other Services at Cinnamon Bay and Trunk Bay withinVirgin Island National Park The National Park Service (NPS) will issue a prospectus for solicitation of offers for a 15-year concession contract to provide Lodging, Camping, Food and Beverage, Retail, Equipment Rental and Other Services at Cinnamon Bay and Trunk Bay within Virgin Island National Park. Park concessioners play a vital role in serving visitors in national parks. Concession contracts offer members of the private sector opportunities to enhance visitors' enjoyment of, and to form lasting connections with, many of our nation's most treasured places. Within Virgin Islands National Park, the Concessioner will manage hospitality operations on one of the most picturesque beaches in the world. The business opportunity provides interested parties a range of hospitality services in this well-known national park and has the potential to touch the lives of over half a million recreational visitors on an annual basis. These operations include overnight experiences on the world famous Cinnamon Bay Beach either at the charming and rustic cottages or in pre-set up eco tents. The Concessioner under the Draft Contract also will provide food and beverage and retail at Trunk Bay where the beach and underwater snorkeling trail are breathtaking attractions to thousands visiting St. John Island. St. John is located about four miles east of Saint Thomas, the location of the U.S. Virgin Islands territorial capital, Charlotte Amalie, and four miles southwest of Tortola, part of the British Virgin Islands. With no airports on St. John, the only access to the island is by boat. Cruz Bay is the main town and commercial area on the island and the point where ferry passengers embark and disembark. Trunk Bay is approximately three miles northeast of Cruz Bay on Route 20, with Cinnamon Bay approximately one mile further east along the road. All offers must be received by the NPS at the address listed on the inside front cover of the prospectus no later than 4:00 p.m. on Thursday, July 30, 2015, in order to be evaluated and considered for an award of a concession contract. The prospectus describes the business opportunity and includes the terms and conditions under which the NPS will award the concession contract. The prospectus is available on the NPS website at http://concessions.nps.gov/prospectuses.htm, or you can receive a hard copy for $40.00. An additional charge of $40.00 will be added if delivered to an address in the U S Virgin Islands. To request a hard copy of the prospectus to be delivered via Federal Express, send a check for $40.00 payable to the National Park Service to Bill Stevens at the address listed below. Please include a physical address (no post office box) and telephone number. You may also pick up a printed copy at the Superintendent's Office at Park Headquarters for $40.00 (checks only). If you are planning to submit a proposal and have obtained your prospectus from the website, we recommend that you advise Bill Stervens, Chief of Commercial Services, Southeast Region, NPS, AFC, 1924 Building, 100 Alabama Street, S.W., Atlanta, GA 30303 at (404) 507-5638 or e-mail at bill_g_stevens@nps.gov of your interest so your contact information can be placed on a mailing list to receive future responses to questions or amendments to the prospectus. Those receiving a hard copy or who are on the mailing list will be provided with any additional information specific to the prospectus in writing. The same information is posted to the above mentioned website. Questions in response to this prospectus are due in writing by Friday, May 15, 2015, by email to Bill Stevens. No telephone requests for the prospectus will be honored. The Service will lead a site visit on Wednesday, May 6, 2015. For more information regarding the specific time and to reserve space on the site visit, please contact Elba Richardson, Chief of Concessions by phone at (340) 776-6201 ext 221 or via email at elba_richardson@nps.gov before Thursday, April 30,2015. The site visit will be an opportunity for all interested parties to get an overview of the concession operation along with a tour of Concession Facilities associated with the Draft Contract. AMENDMENT #1 The National Park Service (NPS) has issued Amendment No. 1 to the Solicitation of VIIS001-16. This Amendment No. 1 adds the Proposal Instructions to the Prospectus. The National Park Service must receive any proposal, including that of the existing Concessioner, by 4:00 p.m. July 30, 2015. (Eastern Time) Attn: Bill Stevens, Chief of Concessions Southwest Regional Office, 1924 Building, 100 Alabama Street SW, Atlanta, GA 30303 in order to be evaluated and considered for award of a Concession Contract. A hard copy of the Prospectus package is available by contacting Bill Stevens. There is a printing cost recovery charge of $40 per copy to be delivered via Federal Express or if picked up in person. Checks or money orders (no cash or credit cards accepted) must be payable to the National Park Service. You must include a business address (no post office box) to receive a Federal Express package. If you choose to retrieve a copy of the Prospectus from the NPS website, please notify Bill Stevens, so we can place you on the mailing list to receive notifications of any future modifications or other correspondence. AMENDMENT #2 The following updates the Prospectus issued by the National Park Service on April 7, 2015. Amendment No. 2 adds three (3) pages to Appendix J, Components of Concession Facilities Improvement Program (CFIP). The three (3) pages are the existing floor plans with the current dimensions for the facilities involved in the CFIP's including; Page J7, Trunk Bay Gift Shop Existing Floor Plan, Page J8, Trunk Bay Snack Bar Existing Floor Plan and Page J9, Cinnamon Bay Cottage Unit Existing Floor Plan The National Park Service must receive any proposal, including that of the existing Concessioner, by 4:00 p.m. July 30, 2015. (Eastern Time) Attn: Bill Stevens, Chief of Concessions Southwest Regional Office, 1924 Building, 100 Alabama Street SW, Atlanta, GA 30303 in order to be evaluated and considered for award of a Concession Contract. AMENDMENT #3 Response to Questions and Amendment #3 for Solicitation # CC-VIIS001-16 Please find below the National Park Service's (NPS) responses to the questions submitted in regard to the Prospectus for a Concession Business Opportunity to provide lodging, food and beverage, retail and other services (CC-VIIS001-16) at Virgin Islands National Park. This notice also includes updates to the Prospectus issued by the NPS on April 07, 2015. All potential Offerors should read the questions, responses, and the amendments to the Prospectus as the information may Aassistance in preparing a proposal to the solicitation The National Park Service must receive any proposal, including that of the existing Concessioner, by 4:00 p.m. July 30, 2015. (Eastern Time) Attn: Bill Stevens, Chief of Concessions Southwest Regional Office, 1924 Building, 100 Alabama Street SW, Atlanta, GA 30303 in order to be evaluated and considered for award of a Concession Contract. NPS Responses to Offeror Questions on Solicitation # CC-VIIS001-16 1. The Business Opportunity, page 9, states that, "Under the Draft Contract, the Concessioner will not provide retail services at the beach shop [at Cinnamon Bay] as the Service plans to convert this space into additional museum space. The Service may provide watersports equipment rental, such as kayaks, surfboards, and sailboats, under separate authority." (a) Although the Draft Contract, section 3(a), would require Equipment Rental at Cinnamon Bay and Trunk Bay, it does not appear that this would include the rental of beach chairs and, if so, where would that be permitted? Beach chair rentals are an important service for visitors to the Area. Will NPS allow the Concessioner to rent beach chairs under the Draft Contract? If so, please clarify the location where the Concessioner will be permitted to rent beach chairs. NPS Response: The NPS plans to have temporary contracts in place as of the effective date of Concession Contract CC-VIIS001-16 to provide beach chair rentals at Trunk and Cinnamon Bays. The Service will not allow the rental of beach chairs under CC-VIIS001-16. (b) Watersports equipment rental is an important visitor service in the Area and an integral part of the present operations. Failing to make provision for watersports equipment rental in the Area may negatively impact visitation to the Area as well as the visitor experience for certain visitors. Will NPS reconsider its decision not to authorize the Concessioner to provide watersports equipment rentals under third-party arrangements, which are the local custom and practice and important to small independent operators that service the island? If not, will NPS please clarify its plans for authorizing watersports equipment rentals in the Area, including timing, nature of the authorization, etc.? Does NPS plan to have agreements for watersports equipment rental in place as of the effective date of the new contract? NPS Response: The NPS plans to have temporary contracts in place as of the effective date of Concession Contract CC-VIIS001-16 in order to provide watersports equipment rentals at Trunk and Cinnamon Bays. The Service will not allow the rental of watersports equipment under CC-VIIS001-16. (c) To the extent that not providing for watersports equipment rentals in the Area causes a decline in visitation, Concessioner revenues under the Draft Contract also will be negatively affected. Did NPS consider the potential impact (direct and indirect) of not providing for watersports equipment rentals under third-party arrangements on Concessioner revenues? NPS Response: Please see response to 1(b) above. (d) If the answer to (c) is yes, please explain what the NPS determined to be the impact on revenues and on the Concessioner's ability to make a reasonable profit, as well as any assumptions used by the NPS in making that determination. NPS Response: The NPS conducted a financial analysis based on projected revenues from the required services of the draft contract CC-VIIS001-16 and concluded the next Concessioner has a reasonable opportunity for profit. 2. In Exhibit 10 on page 12 of the Business Opportunity, NPS sets forth an estimated required initial investment by the VIIS001-16 Concessioner of approximately $3,360,691 in 2016, including an estimated amount of $809,670 for the purchase of personal property. Later on page 12, NPS explains that it estimates the value of the Existing Concessioner's personal property to be sold by the Existing Concessioner and purchased by the VIIS001-16 concessioner to be $81,000 in 2016 dollars, referencing a listing of items in Appendix H (dating back to April 2012). NPS notes that this list "may be incomplete, and that offerors must perform their own due diligence to ascertain a complete list of property to be sold and transferred and the value of such property." Has NPS included in its estimated initial investment amount for personal property all of the personal property of the Existing Concessioner used and held for use in connection with its operations at Cinnamon Bay and Trunk Bay that has been deemed not eligible for possessory interest? NPS Response: Concession Contract VIIS001-70 requires the new concessioner to buy the existing concessioner's personal property used or held for use in the operation. The $81,000 estimate in personal property referenced in the question is this type of personal property. The remainder of the $809,670 in personal property is an estimate of new personal property the new concessioner will need to purchase in order to provide the required services under Concession Contract VIIS001-16. The NPS does not consider personal property eligible for possessory interest. 3. On page 15 of the Business Opportunity, NPS discusses some of the operational challenges associated with operating the concession. Among other challenges, NPS explains that: "Given the limited real estate and the high cost of living on St. John, most of the Existing Concessioner's staff commute by ferry daily from St. Thomas to St. John and then take a concessioner's shuttle to Cinnamon Bay or Trunk Bay. Limited public housing is available for some employees on the island, such as Cruz Bay." (a) Did the NPS consider the extent of the significant costs associated with employee housing and transportation in determining the minimum franchise fee and other financial obligations under the Draft Contract? NPS Response: Yes (b) If so, please explain what the NPS determined to be the impact of these costs on the Concessioner's ability to make a reasonable profit (including any estimate of cost), and on rates to be charged to visitors, as well as any assumptions used by the NPS in making that determination. NPS Response: The NPS used a third-party consultant to perform a financial feasibility analysis. This analysis took into consideration employee housing and transportation as it effected profitability and rates. The analysis is confidential information and not available for release. Interested offerors must perform their own due diligence and determine their own financial projections. 4. Section 4(b)(2) of the Draft Contract provides that, "If the visitor services required and/or authorized under this Contract are located in a remote or isolated area, the Concessioner shall provide appropriate employee recreational activities." (a) Does NPS consider the visitor services required and/or authorized under CC-VIIS001-16 to be located in a remote or isolated area for purposes of this provision? NPS Response: No, the services required and authorized under the Draft Contract are not located in a remote or isolated area. (b) If so, what, if any, does NPS consider to be appropriate employee recreational activities that would meet the requirements of this provision of the Draft Contract, particularly given the beach setting of the concession? NPS Response: The Concessioner is not required to provide employee recreational activities, because the services required and authorized under the Draft Contract are not located in a remote or isolated area. 5. Section 8(e) of the Draft Contract states that, "[a]s described in more detail in Exhibit B, the Operating Plan, the Concessioner shall undertake and complete a Personal Property Improvement Requirement costing not less than $834,000." Page 14 of the Business Opportunity, however, states that "the Concessioner will undertake and complete a Personal Property Improvement Requirement costing no less than $700,000 and not more than $1,000,000." Please clarify the minimum Personal Property Improvement Requirement. NPS Response: The NPS amended the Draft Contract to read, "costing not less than $700,000 and not more than $1,000,000." This change is reflected in Amendment No. 3 to the Prospectus. 6. Section 9(c)(3) of the Draft Contract states that "no Leaseholder Surrender Interest shall be obtained as a result of expenditures from the Repair and Maintenance Reserve described in this contract, and this Contract does not provide a Leasehold Surrender Interest as a result of expenditures for repair and maintenance of Concession Facilities of any nature." In answer to the question whether a concessioner will "obtain leasehold surrender interest as a result of repair and maintenance of real property improvements, section 51.67 of the concessions regulations (emphasis added) states that, "A concessioner will not obtain initial or increased leasehold surrender interest as a result of repair and maintenance of real property improvements unless a repair and maintenance project is a major rehabilitation." Section 51.64 of the regulations further explains that a concessioner that undertakes an approved major rehabilitation to an existing structure in which the concessioner has a leasehold surrender interest will increase its leasehold surrender interest by the construction cost of the major rehabilitation. Will NPS revise this provision of the Draft Contract to clarify that the contract will provide a leasehold surrender interest for approved major rehabilitations, in accordance with NPS regulations? If not, please explain why not. NPS Response: The Concessioner may expend funds from the Repair and Maintenance Reserve only for specific projects as defined in Section 10(c) of the Draft Contract. Specifically, "The funds in this Reserve shall be used to carry out, on a project basis in accordance with Exhibits F and H, repair and maintenance of Concession Facilities that are non-recurring within a seven-year time frame." The Concessioner may not use funds from the Repair and Maintenance for projects that would be eligible for Leasehold Surrender Interest. 7. Section 9(d) of the Draft Contract requires the Concessioner to undertake and complete a Concession Facilities Improvement Program ("CFIP") as further described in the Draft Contract and Appendix J. Exhibit F: Concessioner Project Procedures, section 1 states that "Projects may be required to be reviewed under the National Environmental Policy Act (NEPA) of 1969, as amended." Given that the CFIP generally will require use of the same footprint as the existing facilities, please describe any NEPA or National Historic Preservation Act section 106 planning, review, or compliance that NPS anticipates will be required to undertake and complete construction under the CFIP. To the extent that NPS anticipates such planning, review, or compliance to be required, please explain how NPS will consider the need to complete these processes in the context of the timetable for completion of the CFIP, i.e., by the end of the second year of the Draft Contract. NPS Response: The NPS will provide additional time for the Concessioner to complete the CFIP if there is a delay because of any additionally required NEPA review. The NPS does not anticipate additional NEPA reviews if construction stays within the same footprint as the current structures. 8. The Business Opportunity, page 9, states that, "[u]nder the Draft Contract, the Concessioner will not provide retail services at the beach shop [at Cinnamon Bay] as the Service plans to convert this space into additional museum space." Page H-7 of Contract Exhibit H: Maintenance Plan, Part B.1, states that the Concessioner is responsible for the "facility maintenance, preventive and recurring, and component renewal, as well as the repair and cleaning of the interior and exterior of all buildings within the Assigned Area. "Given that, under the Draft Contract, the Concessioner will not be permitted to operate retail services at the beach shop and that NPS plans to use this building for additional museum space (over which the Concessioner would have no control and which may involve specialized maintenance requirements), we do not believe that the Concessioner should have maintenance responsibility for this building. Please clarify whether NPS intends that the Concessioner would have maintenance responsibility for this building, and if so on what basis, or whether this building should be added to Part B.10, which specifically identifies buildings for which NPS will have maintenance responsibility. NPS Response: The NPS has not assigned the beach shop, located adjacent to the Service's archeological lab and museum, to the Concessioner. In addition, Exhibit D to the Draft Contract VIIS001-16 does not list the facility as Concessioner assigned real property. 9. Contract Exhibit B: Operating Plan, Section 4.E(2) requires the Concessioner to "use a centralized automated reservation system capable of accommodating requests for all services for which the Concessioner offers reservations." (a) Section 11.C(1) (h) includes different requirements for camping reservations. Please reconcile the reservation system requirements with regard to camping reservations. NPS Response: The Concessioner is required to use one centralized automated reservation system for campground and cottage overnight reservations and not for the restaurant. The Concessioner may use Recreation.gov, but the Service must approve the Concessioner's reservation system before implementation. Amendment No. 3 reflects this change. (b) Would NPS agree to limit the requirement in Section 4.E(2) for a centralized automated reservation system to lodging/overnight accommodations for which the Concessioner offers reservations? For example, if the Concessioner accepts reservations for the restaurant at Cinnamon Bay, would NPS agree to exempt such reservations from the required centralized automated reservation system? NPS Response: See response to 9(a) above. 10. Contract Exhibit B: Operating Plan, Section 4.F(4)(a) requires the Concessioner to "have a maintenance mechanic onsite at all times for emergencies that may arise." Requiring a maintenance mechanic to be present at Cinnamon Bay or Trunk Bay 24/7, given the nature and size of the operations, is unnecessary and costly. (a) Will NPS instead allow a Concessioner to keep a maintenance mechanic on call at all times for emergencies that may arise? For instance if a Concessioner operates other facilities nearby on St. John, will NPS allow the Concessioner to share a maintenance mechanic with those facilities? NPS Response: Yes, the Concessioner must have a maintenance mechanic on call and not onsite at all times. Amendment No. 3 reflects this change. (b) Will NPS require the Concessioner to have a maintenance mechanic present in the Area outside of regular business hours or overnight? If not, please clarify the requirement to have a mechanic "onsite at all times." NPS Response: The Concessioner must have a maintenance mechanic on call and not onsite at all times. Amendment No. 3 reflects this change. 11. Contract Exhibit H: Maintenance Plan, page H-9, Part B, 2(A)(2), states, with respect to lodging and campgrounds: "Concessioner must eliminate tripping hazards." Given the inherent natural characteristics of the area and the requirements under the Draft Contract and exhibits, eliminating trip hazards in a National Park like Virgin Islands National Park is infeasible. Plant roots, for instance, are constantly growing, and, among other requirements, the Maintenance Plan's landscaping guidelines require the protection of native vegetation. Smooth, hard walkways have not been installed in order to avoid additional disturbance to the Park's natural environment and to help maintain the natural appearance of the area. Will NPS replace this provision of the Maintenance Plan with a less absolute and more practical standard for addressing tripping hazards, such as the following: "Concessioner will take reasonable efforts to minimize tripping hazards to the extent feasible consistent with the requirements of the Draft Contract and the Maintenance Plan."? NPS Response: The NPS intends to eliminate the current tripping hazards within the trail system of the campgrounds before the beginning of the Draft Contract. The Concessioner must maintain the improved trail system and service roads to the cottages and campsites in the Concessioner's assigned area. Amendment No. 3 reflects this change. 12. Contract Exhibit H: Maintenance Plan, page H-10, Part B, 4(A)(9), states that "The Concessioner must appropriately time landscaping activities that utilize power equipment so as not to disturb guests in the campground and lodging units." While the Concessioner can schedule such activities in order to minimize disturbance on guests in the campground and lodging units, because not all guests follow the same schedule, avoiding disturbance entirely to all guests is infeasible. We note that the Operating Plan, section 4.E, specifies quiet hours of 10:00 p.m. through 6:00 a.m. in all overnight Concession Facilities. Would NPS please clarify the requirement regarding the timing of landscape activities that utilize power equipment? If so, we suggest that the language be revised to read as follows: "The Concessioner must appropriately time landscaping activities that utilize power equipment so as to minimize the disturbance of guests in the campground and lodging units." NPS Response: The NPS modified the language regarding disturbing guests from landscaping to add "to the maximum extent possible." Amendment No. 3 reflects this change. 13. Contract Exhibit H: Maintenance Plan, page H-11, Part B, 6(C), with respect to case goods (cottage and eco-tent furniture), requires the Concessioner to repair "any damage, scratches or defacement," or replace damaged furniture, prior to renting a room. Some scratching of furniture is a part of normal wear and tear, and the requirement to repair any scratches, no matter how minor, prior to being able to rent a room seems extreme and impractical. Will NPS revise this provision to except normal wear and tear? NPS Response: The NPS modified the language regarding damage, scratches, or defacement of case goods to allow for reasonable wear and tear. Amendment No. 3 reflects this change. 14. Business Opportunity (page 16): Exhibit 15: Historic revenue by Department 2011-2013. Can you break Exhibit 15 into two exhibits? One that shows the departmental revenue breakdown for Cinnamon Bay and a separate table that shows the revenue breakdown for Trunk Bay? NPS Response: The NPS does not have access to separate historic revenues by department for Cinnamon Bay and Trunk Bay separately. The Existing Concessioner reported the information in in a consolidated format to the NPS. 15. Business Opportunity (page 16): Exhibit 15: Historic revenue by Department 2011-2013. Has the historical watersport revenue at Cinnamon been subtracted from the historic retail and equipment rental value presented in Exhibit 15? In other words, does the $740,790, $775,605, and $718,222 revenue values for Retail and Equipment Rental include or exclude the watersport rentals that are part of the existing contract but not part of the future contract? If it is included, can you tell us the amount so we can back it out? NPS Response: The historical gross departmental revenues for Retail and Equipment Rental for 2011 through 2013 did include watersports equipment rental at Cinnamon Bay. In addition, the figures in Exhibit 15 included revenues from the existing sub-concessioners renting watersports equipment at Trunk Bay. The revenue amounts included for watersport equipment rental at Cinnamon Bay are $138,469 in 2011, $131,345 in 2012. The Existing Concessioner did not break out the watersports rental revenues at Cinnamon Bay for 2013. The revenue amounts reported for the sub-concession watersport equipment rental at Cinnamon Bay are $138,440 in 2011, $180,506 in 2012, and $180,880 in 2013. The reported revenue amounts included for watersports equipment rental at Trunk Bay are $132,950 in 2011, $167,200, in 2012 and $162,161 in 2013. 16. Valuation of LSI: Exhibit G entitled "Leasehold Surrender Interest as of the Effective Date of the Contract" indicates the various LSI Values. • Under the original contract with Caneel Bay Plantation, Inc. (the "Contract"), Section 12 of the Contract sets forth two method for valuing the Possessory Interest of Caneel Bay Plantation, Inc. a. Section 12(a)(1) generally provides for a value based on reconstruction cost less depreciation evidenced by the current condition. b. Section 12(a)(2) generally provides for a value based on book value, if the improvement will be abandoned, removed or demolished. • For the items listed in Exhibit G, please indicate whether the "LSI Value" is based on reconstruction cost (as set forth in Section 12(a)(1) of the Contract) or book value (as set forth in Section 12(a)(2) of the Contract. NPS Response: The Leasehold Surrender Interest value provided in Exhibit G has been determined based on negotiations between the Existing Concessioner and the NPS to establish the value of the Possessory Interest. The details of this negotiation are confidential and not available for public release. • For the items in Exhibit G, please indicate whether they will be abandoned, removed or demolished. NPS Response: The Service does not anticipate abandoning, removing, or demolishing any of the items listed in Exhibit G. • The last two items listed on Exhibit G are "Electric Utility" valued at $279,606 and "Mechanical Utility" valued at $144,326. Under the Contract, it appears that the National Park provides utilities, sewer and water and that Concessioner is not entitled to compensation for anything provided by the National Park. Please describe "Electric Utility" and "Mechanical Utility" and confirm they are items properly included in the LSI calculation. NPS Response: The electric utility and mechanical utility items refer to the electrical and mechanical infrastructure (system) determined to have been constructed by the Existing Concessioner in accordance with the Existing Contract and assigned as part of the Concession Facilities under the Draft Contract. • Please provide all original costs paid by Caneel for the items listed in Exhibit G. NPS Response: The Existing Concessioner's original costs are not available. Note the Leasehold Surrender Interest value was determined based on the negotiated Possessory Interest value between the Existing Concessioner and the NPS. The Concessioner, as a condition of submitting a proposal, accepts the value, which is not subject to further negotiation. • Please provide all valuation reports and information used in valuing the items listed in Exhibit G. NPS Response: This information is confidential. 17. Operations: Please provide the last 5 years financial statements for the operation of the concessions by Caneel. NPS Response: Thisinformation contains proprietary information and, other than what appears in the prospectus, generally is not available for public release. 18. Is there a possibility of two separate vendors - one for Trunk and one for Cinnamon? NPS Response: No, the Draft Contract does not authorize sub-concessioners. 19. Is there the ability to recycle? If so, what waste streams are recyclable? NPS Response: The Service does not provide recycling; however, the Offeror should investigate and perform the necessary due diligence to determine if recycling is available on St. John. 20. Do both power boat and sailboat charters qualify as "day sail excursions" from Cinnamon Bay? Please expand on what is permitted and excluded in day sail excursions. NPS Response: Yes, both powerboats and sail boats qualify for "day sail" excursions. Cinnamon Bay has two moorings for boats with a 60 foot length overall or smaller. The NPS does not permit the Concessioner or other boaters to anchor in the Park. 21. From inspection, the tent platforms appear to be different sizes. Can a platform size greater than 150 sq ft be proposed? NPS Response: No, the Service has an obligation to protect potential artifacts and evidence of past cultures. The Concessioner must replace each platform in the current footprint with little or no ground disturbance. 22. Installing the tents will require some clearing of brush and pruning of trees. Can we assume this is easily accomplishable and we'll have the Services assistance? NPS Response: All projects undertaken by the Concessioner require a coordinated effort between the Concessioner and the National Park Service ("Service"). Exhibit F Concessioner Construction, Major Rehabilitation, and Repair and Maintenance Project Procedures provides step-by-step procedures for the administration of Concessioner projects (construction, major rehabilitation, and repair and maintenance projects) within the Area including site preparation. The Concessioner must submit project documents for review and approval to establish project activity for approval by the Service. 23. Installing the tents to meet hurricane wind speeds will require some type of embedded pier or anchoring system. The tents are currently sitting loose on concrete blocks. Will concrete piers and / or driven anchors be permitted? NPS Response: The NPS does not expect the tent platforms to withstand hurricane force winds, and will not permit concrete piers or driven anchors. The Service envisions these eco-tents as more substantial structures than the traditional canvas tents now offered, potentially with aluminum or wooden framing and a design that offers greater aesthetic appeal and improved airflow. These eco-tents, considered personal property under the Draft Contract, should set up and dismantle easily for storage during the hurricane season. 24. Can the Offeror propose more than 55 eco tents given they are personal property and realistically impacting the site less than bare site camping? NPS Response: No, the NPS has an obligation to protect potential artifacts and evidence of past cultures. The Concessioner must replace each platform in the current footprint without increasing the number of tents. 25. Do minimum hours in the Operating Plan mean just that? In other words, can the concessioner easily extend the hours of operation based on demand? NPS Response: Yes, the Concessioner may extend the hours of operation with approval from the Service. 26. Please define "culturally sensitive area" as is pertains to the cultural assets and construction at Cinnamon Bay and Trunk Bay. What are the assets? What are the anticipated mitigation measures? NPS Response: The term "culturally sensitive area" refers to an area that has archeological sites that require special measures during construction or maintenance activities to protect potential artifacts. The Concessioner must coordinate with the NPS in completing the site work and staging areas for the Concession Facility Improvement Program (CFIP) construction projects. The CFIPs at Cinnamon Bay and Trunk Bay are limited to the existing footprints of the current structures. 27. The Business Opportunity requires that the list of deferred maintenance projects be cured by the new concessioner within the first two years of the contract term. Is the intent that the first 3 years of 4% maintenance reserve will cap the obligation on deferred maintenance? The items on the DM list could add up to much more than the reserve amount. Is it expected that the new concessioner will bear all the responsibility of curing 25 years of DM in the first two years of operation? Please elaborate on your expectations and share any cost estimates or processes that could be used to cap inherited DM liabilities. NPS Response: The NPS used the cost associated with curing the deferred maintenance within in the first two years of the contract as part of its financial analysis. Work Sub-Types DM, LMAC, RM, RMDM are Maintenance Expenses and do not qualify for Repair and Maintenance Reserve. The NPS determined through the analysis that the Concessioner has a reasonable opportunity for profit. The Concessioner may use the Repair and Maintenance Reserve funds only to complete component renewal on a project basis authorized by the NPS in writing. The list of deferred maintenance does include component renewal eligible for the Repair and Maintenance funds (Work Sub-Types CR and CRDM). The Concessioner is responsible for all maintenance as specified in Exhibit H to the Draft Contract. The contractually required Repair and Maintenance Reserve establishes an account the Concessioner draws from to address component renewal (including deferred component renewal CRDM). The Concessioner's obligation to complete its maintenance requirements is not limited by the amount of funds in the maintenance reserve. 28. How were construction costs determined for the CFIP? Were mainland or local construction costs used? A multiple of RS Means or other? Please elaborate on how the Service estimated cost of construction. NPS Response: The Service used a consultant to develop the cost estimate and analysis for the CFIP. The consultant used data collected during a site visit and through research and determined construction and maintenance estimates for each required CFIP. The NPS added all special qualifying and certification cost requirements (such as building design, local construction add on costs and island considerations) into the estimates. 29. We understand the Service intends to upgrade the wastewater facility in the next five years? How will that effect utility costs for waste water to the new concessioner? NPS Response: The NPS anticipates upgrading the wastewater treatment plant during the term of the Draft Contract. The NPS is in the early planning stage and unable to provide the future utility costs at this time. 30. Are there any limitations on use for the two new prefab metal buildings? Can restrooms be easily installed? Can air conditioning be easily installed? NPS Response: The NPS intended use for the new prefabricated metal buildings is for storage and warehouse purposes. The NPS does not believe the Concessioner could easily install restrooms in these buildings. The Concessioner could install air conditioning as personal property, but the buildings are not insulated. 31. Are there any restrictions on alcohol, beer and wine sales at either Cinnamon Bay, or Trunk Bay from the food services facility, grocery facility or from beach carts (mobile food carts)? NPS Response: The Concessioner is authorized to sell alcohol in the Cinnamon Bay restaurant, Cinnamon Bay and Trunk Bay snack bars, and the store. The NPS will consider allowing the sale of alcohol from mobile food carts dependent on the location of the carts. The Concessioner is not allowed to sell alcohol in glass containers including to-go cups and bottles. 32. What equipment can the concessioner offer for rent to patrons? Given that the Cinnamon Bay snack shop and rental location is no longer available, can the concessioner rent gear from a mobile cart or vehicle? NPS Response: The Concessioner must rent camping equipment at the commissary at Cinnamon Bay. Refer to the answers to question 1 above. 33. Are there any opportunities to reduce the LSI? Carrying 6.5 million of capital for 15 years is prohibitive without providing more opportunity for increased revenues. Even at 5%, interest payments alone on 6.5 million dollars amount to $325,000 per year, or 11% of current gross receipts. Even the LSI being paid to the current concessioner requires annual interest payments of $110,000 giving them a strategic advantage to remaining the operator. NPS Response: The Service considered these factors when establishing the Franchise Fee and analyzing the opportunity for the Concessioner to obtain a reasonable profit. The Service also has the option to purchase Leasehold Surrender Interest during the term of the Contract; however, Offerors should not anticipate this occurring in their financial calculations. 34. The amount of up front investment required for this contract to the ratio of current earnings is extraordinarily high. The investment is only viable with dramatically increasing revenues. In this light, are there any restrictions on the offeror's proposed rate schedule for 2016? For example, many of the construction specifications appear to replicate 1970's era amenities. Would the service be open to modern amenities covered by higher per diem rates? NPS Response: The Concessioner may submit rate requests per the NPS Rate Administration Guide located in Appendix G to the Prospectus. The Service expects the Concessioner to provide campground and cottage amenities consistent with the amenities currently provided. The Service will consider proposals for meeting visitors' expectations with different amenities after award of the Draft Contract. 35. Most Park Service lodging offers employee housing. Additionally, the well run resorts on St John such as Concordia, The Westin, and Caneel Bay offer employee housing, as does the Park Service. Are there any opportunities to assign employee housing for this contract? NPS Response: The NPS assigned one (1) one-bedroom studio house to the Concessioner. The Concessioner may use the structure for employee housing. The house is building 86319 (Building #4) located in the Cinnamon Bay Concession Campground. The NPS has no other facilities available to assign as concessioner employee housing. 36. Would a longer contract term be considered? NPS Response: No, the term of the Draft Contract is fifteen (15) years. Amendment #3 to the Prospectus for Cinnamon and Trunk Bays Solicitation Number CC-VIIS001-16 Draft Contract 8(e)(3) Personal Property - Page 11: Replace the following text: (3)...costing not less than $834,000. With this new text: (3)...costing not less than $700,000 and not more than $1,000,000. Draft Contract Exhibit B, Operating Plan - Page B-5 - Section 4 E) 2): Replace the following text: 2) The Concessioner must use a centralized automated reservation system capable of accommodating requests for all services for which the Concessioner offers reservations. With this new text: 2) The Concessioner must use a centralized automated reservation system capable of accommodating campground and cottage overnight reservations. The Concessioner may use Recreation.gov, but the Service must approve the Concessioner's reservation system before implementation. Draft Contract Exhibit B, Operating Plan - Page B-7- Section 4 F)(4)(a): Replace the following text: (a)...and must have a maintenance mechanic onsite at all times for emergencies that may arise. With this new text: (a)...and must have a maintenance mechanic on call at all times. Draft Contract Exhibit H, Maintenance Plan - Page H-9 - Part B, Section 2 A) (3): Replace the following text: (3) The Concessioner must eliminate tripping hazards. With this new text: (3) The Concessioner must maintain the trail system and service roads to the cottages and campsites in the Concessioner's assigned area to ensure the elimination of tripping hazards to the maximum extent possible. Draft Contract Exhibit H, Maintenance Plan - Page H-10 - Part B, Section 4 A) (9): Replace the following text: (9)...so as not to disturb guests in the campground and lodging units. With this new text: (9)...so as not to disturb guests in the campground and lodging units to the maximum extent possible. Draft Contract Exhibit H, Maintenance Plan - Page H-11 - Part B, Section 6) C): Replace the following text: C) The Concessioner must repair any damage, scratches or defacement, or replace the piece of damaged furniture prior to renting the room. With this new text: C) The Concessioner must repair any damage, scratches, or defacement, except for reasonable wear and tear, or replace the piece of damaged furniture prior to renting the room. The National Park Service's (NPS) responsed to the questions submitted in regard to the Prospectus for a Concession Business Opportunity to provide lodging, food and beverage, retail and other services (CC-VIIS001-16) at Virgin Islands National Park. This notice also includes updates to the Prospectus issued by the NPS on April 07, 2015. All potential Offerors should read the questions, responses, and the amendments to the Prospectus as the information may assistance in preparing a proposal to the solicitation The National Park Service must receive any proposal, including that of the existing Concessioner, by 4:00 p.m. July 30, 2015. (Eastern Time) Attn: Bill Stevens, Chief of Concessions Southwest Regional Office, 1924 Building, 100 Alabama Street SW, Atlanta, GA 30303 in order to be evaluated and considered for award of a Concession Contract.
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- Place of Performance
- Address: Cinnamon Bay Campground, Virgin Islands National Park, St John, U.S. Virgin Islands, 00830, United States
- Zip Code: 00830
- Zip Code: 00830
- Record
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