MOD | 99 | Responses to questions received regarding a business opportunity to provide lodging, retail, food and beverage, campground, marina, transportation and other services within Yellowstone National Park - Part 1 of 2.

FBO DAILY ISSUE OF AUGUST 12, 2012 FBO #3914
MODIFICATION

99 -- Responses to questions received regarding a business opportunity to provide lodging, retail, food and beverage, campground, marina, transportation and other services within Yellowstone National Park - Part 1 of 2.

Notice Date: 8/10/2012
Notice Type: Modification/Amendment
Contracting Office: IMDE - CM - Business Resources Division 12795 W Alameda Pkwy Lakewood CO 80228
ZIP Code: 80228
Solicitation Number: CC-YELL077-13
Response Due: 10/15/2012
Archive Date: 8/10/2013
Point of Contact: Jennifer L. Bonnett Chief of Concessions 3039692661 Jennifer_bonnett@nps.gov;
E-Mail Address: Point of Contact above, or if none listed, contact the IDEAS EC HELP DESK for assistance
(EC_helpdesk@NBC.GOV)
Small Business Set-Aside: N/A
Description: Responses to Questions Received Re: CC- YELL077-13 ( Part 1 of 2) 1.The prospectus requires significant capital in the CFIP program. Further, the Business Opportunity mentions multiple times that a higher ADR will be achieved as a result of the completion of the CFIP program. Please provide the revenue assumptions that were used in the Service's financial model, specifically, the assumed rate increases in the lodging locations and food and beverage revenues. Please refer to Proposal Instructions page 4 h): "Offerors are responsible for undertaking appropriate due diligence with respect to this business opportunity. All of the statements made in this Prospectus regarding the nature of the businesses and its likely future are only opinions of the National Park Service (NPS). Offerors may not rely on any representations of the NPS in this regard." 2.Please complete the chart as to how much the Service anticipates will be approved as Leasehold Surrender Interest Value, as defined in Exhibit A. CFIP CostLSI Value Lake Phase II$16,600,000 Mammoth Hotel Repositioning$5,400,000 Canyon development$70,500,000 Mammoth Cabin Renovation$690,000 Lake Area Employee Housing$5,400,000 Lake Lodge Cabins$8,600,000 Old Faithful Housing$9,700,000 Fishing Bridge RV Park$17,700,000 Total$134,590,000 The Service determines Leasehold Surrender Interest Value after receiving the detailed construction report (and certification) from the Concessioner. The Director will review the report, certification and other information as appropriate to determine that the reported construction cost is consistent with the construction cost approved by the Director in advance of the construction and that all costs included in the construction cost are eligible direct or indirect costs as defined in Exhibit A of the Concession Contract. 3.What is the Park's confidence level that the incoming Concessioner will be able to purchase the personal property at the listed value of $17.6M? The Existing Contract states "No compensation is due the Concessioner from the Director or a successor concessioner for the Concessioner's personal property used in operations under this Contract. However, the Director or a successor concessioner may purchase such personal property from the Concessioner subject to mutually agreed upon terms." Accordingly, the Service cannot provide a level of assurance that the Concessioner will be able to purchase the personal property since the transaction depends on negotiations between the Existing Concessioner and the successor concessioner. 4.Would paving within the Concessioner's land assignment be eligible for funding from the Repair & Maintenance account based on the Service's definition? The Concessioner may use the Repair and Maintenance Reserve (RMR) if the specific project fits within the allowed uses of the RMR. All projects must have written approval from the Director before they are undertaken by the Concessioner. 5.In the operating plan, it states that the Service "may require the Concessioner to locate the reservation system in the area." Can you please define what is meant by "Area? Secondly, was relocation of the reservation function included in the housing assumptions in the Mammoth/Gardiner area? In concession contracts, the term "Area" is used to describe the unit of the National Park System where the subject concession operations occur. Specifically, Section 2(b) of the Draft Contract defines "Area" as "the property within the boundaries of Yellowstone National Park." The Service did not make any housing assumptions based on the location of the reservation function. 6.Are there enough employee housing units available in the Mammoth/Gardiner area to support the operations or are additional units needed? Specifically, are there apartments, houses, or RV spots in the Gardiner area that Xanterra uses in its current operations? The Business Opportunity describes all employee housing units assigned to the Concessioner in the Mammoth/Gardiner area on Table 12, YELL077 Assigned Employee Housing. The project description for the Concession Facility Improvement Program, Mammoth Cabin Renovation states, "In the Mammoth area the Concessioner must renovate and return 14 cabin units currently occupied by employees to overnight visitor use. This may require the Concessioner to acquire out-of-park employee housing." In addition, see the Business Opportunity, Table 16, Initial Investment Summary, which estimates the initial investment for out of park housing near Mammoth. Other than those housing units assigned under YELL077-05, the Service does not have information about out-of-park housing Xanterra uses for its current operations. 7.From a liability standpoint, who is responsible for the Cooperative Recreational Program should an injury occur? The Yellowstone National Park Co-Op Employee Recreation Program By-Laws, Prospectus Appendix 21, state, "The participating organizations providing facilities to the Employee Recreation Program will at all times maintain adequate fire and liability insurance." 8.Has the Service run any financial models on how the new winter use preferred alternative will affect winter in Park operations? No. The Service financial assumptions include the estimated projected revenue only from the services listed in the Draft Contract as Required Visitor Services. Winter activities are listed under Authorized Visitor Services and, therefore, are not included in the financial assumptions. 9.In the draft contract it states that "The Director MAY provide utilities to the Concessioner." Can this be interpreted to mean that the Concessioner may go outside of the park for utilities at the concessioner's discretion (i.e. garbage or recycling)? Would any utilities not be provided to the Concessioner? At this time, the Service intends to continue to provide the utilities it historically has provided, i.e., water, sewer, and municipal solid waste. The Concessioner must find a contractor outside the Park for recycling services and must remove all recyclables directly from each developed area rather than utilizing a centralized recycling area within the Park. 10.Please confirm that the Concessioner is responsible for all maintenance items that fall outside of the definition of the CFIP program and the Repairs and Maintenance fund. In other words, all spending that occurs with a frequency of less than 7 years. This would include all room remodels, carpets, and linens as well as all small-wares for the kitchens. Please refer to Draft Contract Sec. 10 (a) Maintenance Obligation: "The Concessioner shall be solely responsible for maintenance, repairs, housekeeping and grounds keeping for all Concession Facilities to the satisfaction of the Director."; and Sec. 10(c)(2) Repair and Maintenance Reserve: "Nothing in this section shall lessen the responsibility of the Concessioner to carry out the maintenance and repair of Concession Facilities or housekeeping and groundskeeping responsibilities as required by this Contract from Concessioner funds exclusive of the funds contained in the Repair and Maintenance Reserve. 11.Please confirm that the Concessioner is responsible for replacement of all government-owned assets that are for the Concessioner's use, have reached the end of their useful life and must be replaced. Please refer to Business Opportunity, page 18, regarding replacement of personal property which generally states: During the term of the Draft Contract the Concessioner may find it necessary to replace government-owned personal property items. When the Concessioner replaces items currently owned by the government, the items become the property of the Concessioner. An exception to this general rule involves the historic personal property, as listed in Exhibit K, assigned to the Concessioner. Pursuant to Section 8 (e)(2) of the Draft Contract, government-assigned personal property that ceases to be serviceable shall be returned to the Service for disposition. 12.Please confirm that all equipment used in the concession operation will fall outside the Services' definition of "Repair and Maintenance" and is therefore the Concessioner's responsibility. Please refer to Section 10 of the Draft Contract and Exhibit H for required maintenance responsibilities of the Concessioner. 13. During the walk-through there were many "Government funded" line item improvements either occurring or are being planned. When such improvements cause closure of concession facilities during "the season" is there a mechanism in place to compensate the Concessioner for lost revenues? Please refer to Section 16(a) of the Draft Contract: "The Director may temporarily suspend operations under this Contract in whole or in part in order to protect Area visitors or to protect, conserve and preserve Area resources. No compensation of any nature shall be due the Concessioner by the Director in the event of a suspension of operations, including, but not limited to, compensation for losses based on lost income, profit, or the necessity to make expenditures as a result of the suspension. " 14.Does the Park have Construction Drawings for the Lake Hotel and Boiler Building Phase II project? The Service will post 90% Construction Drawings (CD's) on the Commercial Services website www.concessions.nps.gov/yell077-13.htm by mid-September and plans to have 100% CD's by mid-October. 15.Does the Park have any additional Design Development or Construction Drawings for the Canyon Lodging Project? The Service has engaged two architectural and engineering firms to complete the Design Development for the Canyon Redevelopment Cabin Replacement. The Service expects to have the completed Design Development by March 2013. 16.Does the NPS have any projects planned to fund improvements to assets assigned in this contract? The Service recognizes the need to fund critical rehabilitations and has submitted through the appropriation process several projects for government funding. The Mammoth Hotel Seismic Stabilization - Phase I is currently positioned to receive funds as early as 2013; however, the Service may reprioritize projects and there can be no guarantee that funds will be appropriated or otherwise available for this purpose. If so, what is the scope of the projects(s)? The only project currently being considered for funding is the Mammoth Hotel Seismic Stabilization - Phase I. The project involves the structural and seismic stabilization of the Lobby, Porte Cochere, and Map Room areas of the historic Mammoth Hotel. Additionally, the project includes upgrades to the life/safety, mechanical and electrical systems and addresses ADA and egress issues to meet current codes. 17.Does the government-owned historic furniture and artwork remain in-service in this contract and how is it maintained? The Service requires the Concessioner to maintain the historic furnishings to meet the Secretary of the Interior Standards. The Concessioner must retain all furnishings and artwork and use them in the appropriate facilities. Removals and relocations are subject to Service approval. 18.How does the Existing Concessioner provide in-park health coverage for its employees? The Existing Concessioner meets its medical coverage requirement by participating in the Seasonal Employee Health Care Program (SEHCP), by contributing $600,000 per year, in addition to a payroll deduction of $1.00 per day (in 2012) for each seasonal employee. The SEHCP helps seasonal employees pay for health care while working in the Park. It supplements, but does not replace, other primary insurance employees may have. The SEHCP provides employees with free follow-up treatments by the medical concessioner's staff as long as the initial treatment took place at a Park clinic, blood pressure checks, and ground ambulance charges for Service ambulances. In addition, it limits participating employees' out of pocket expenses for a variety of services at a Park clinic, including initial visit services, some medical testing, and out-patient lab, x-ray, pharmacy supplies, and procedures. 19.What is the proposed schedule for correcting existing deferred maintenance on assigned facilities? Existing deferred maintenance is expected to be corrected within the first 5 years of the concession contract. Existing deferred maintenance includes, but is not limited to, work orders in "Appendix 17 - Work Orders" with the following Work Subtypes: DM - Deferred Maintenance RMDM - Recurring Maintenance and Deferred Maintenance CRDM - Component Renewal Deferred Maintenance LMLS - Legislatively Mandated - Life Safety The Service will work with the Concessioner during the first year of the Contract to develop a plan to address and prioritize deferred maintenance. 20.The Draft Winter Use Plan/SEIS describes non-commercially guided snowmobile trips of the park. Will the Concessioner be allowed to rent snowmobiles for such trips? If the final rule for winter use permits such trips, the Service would consider a request from the Concessioner to add this activity as an Authorized Service. 21.We believe the prospectus is inconsistent in its description of the number of new buildings in the Canyon area after redevelopment. How many will there be? There will be five, including one with a centralized registration area. See Section 9(d)(2) of the Draft Contract. 22.Regarding the question for Principal Section Factor 1, Subfactor 1(a), part 1, there seems to be (at least) two different interpretations. Should offerors interpret the question as a) or b) below or some other way? a)Provide one concise over-arching, large scale example that encompasses all of the listed types of projects (deferred, routine, preventive, cyclic, rehabilitation, and component renewal); or b)Provide six different concise examples, one for each of the following: deferred, routine, preventive, cyclic, rehabilitation, and component renewal. Interpret as in b) above. 23.Regarding the question for Principal Section Factor 1, Subfactor 1(c), there seems to be (at least) two different interpretations. Should offerors interpret the question as a) or b) below or some other way? a)Provide one over-arching example of a program that encompasses daily operations, repair and maintenance, and building projects; or b)Provide three different examples, one that involves daily operations, one that involves repair and maintenance, and one that involves building projects. Interpret as in b) above. 24. The Proposal Instructions for the prospectus, on page 2, part 6) b) state that "The Service will give equal weight to each subfactor under a given selection factor, unless otherwise expressly stated." Please confirm that, despite the varying page length maximums for subfactors within selection factors, these subfactors will be weighted equally by the selection panel. The Service will give equal weight to each subfactor under a given selection factor. 25.With the advanced age of the boats, busses, and snow coaches currently owned by the National Park Service but assigned to the concessioner, what is the plan for the replacement of the current fleet? Has the National Park Service identified specific vehicle types they want used in this replacement program for winter use? Is the concessioner required to research and provide the next generation of boats and vehicles for summer and winter use? Are the 18 bombardiers currently assigned to the concessioner meeting the required BAT for winter use? If they are not, what are the plans of the National Park Service to renovate them or have them removed by the concessioner to meet BAT requirements? Please refer to Business Opportunity, page 18, regarding replacement of personal property which generally states: During the term of the Draft Contract the Concessioner may find it necessary to replace government-owned personal property items. When the Concessioner replaces items currently owned by the government, the items become the property of the Concessioner. An exception to this general rule involves the historic personal property assigned to the Concessioner. The Service has not identified specific vehicle types for winter use. The replacement of winter use vehicles must meet Best Available Technology (BAT) requirements, depending on the Final Rule of the Winter Use Plan/SEIS, Summer 2012 (Final Rule). The Concessioner must research and provide the next generation of boats and vehicles for summer and winter use. The Final Rule for winter visitation and certain recreational use that expired on March 15, 2012 did not include BAT requirements for Bombardiers. The preferred alternative in the Draft Winter Use Plan/SEIS says "BAT would be developed and implemented for snowcoaches by 2017/2018 season. BAT for snowcoaches would require sound emissions to be less than 75 dBA." Without modification, the Bombardiers may not meet these future BAT requirements. Given there is no Final Rule yet, and additional BAT requirements have not been developed, the NPS believes it premature to plan either to renovate the Bombardiers or to require them to be renovated by the Concessioner. 26.What are the NPS plans to fund and facilitate repairs to the failing bulkhead at Bridge Bay Marina? The bulkhead is currently not on any Service work plans or funding plans. 27.Is the concessioner required to have a fire boat at the Bridge Bay Marina? What specifications are required for this boat? Where are the details of this requirement? This question refers to Marina Services (7)(b) in the Draft Operating Plan. The Concessioner is not required to have a fireboat at Bridge Bay Marina. See Errata #1 for the revised language. 28.Given the Mission 66 design of the Bridge Bay Marina, is the marina currently designated as a "historic structure"? If the marina as a whole is not designated as a historic structure, are any specific structures within the marina deemed historic structures? How does the National Park Service plan to address Mission 66 architecture over the duration of the new contract? The Service is currently evaluating the eligibility of all Mission 66 properties within Yellowstone National Park. The Service will treat all Mission 66 properties as eligible for listing on the National Register of Historic Places until it completes the Determinations of Eligibility. 29.During the 20 years of the next contract, how will winter over-snow wrecker services be provided? If the new final rule for winter use allows snowcoach and recreational snowmobile use, the Service expects to require companies that provide guided interpretive snowcoach and/or snowmobile tours of the Area to provide their own wrecker services. 30.How many AST's/UST's are required to be managed under the new contract? Does the National Park Service anticipate requiring them to be removed or replaced at any point during the next contract? Please see Attachment 1 to these responses, which is a list of assigned AST's/UST's. Applicable Laws may require the Concessioner to remove or replace the tanks during the term of the Draft Contract. 31.Wireless service is an authorized service in the contract and a required service in the operating plan (Exhibit B, page 6 states it must be offered). Please clarify. The plan is currently unclear as to what services can be provided in campgrounds. Please clarify. What provisions will be acceptable for wireless internet in existing facilities? Who is responsible for the costs associated with these changes? What is the plan of the National Park Service during the duration of the new contract to improve cell towers and infrastructure to existing phone and wireless services within Yellowstone to support increasing demand of visitors during the contract? The Draft Operating Plan will be amended to read, "The Concessioner may offer wireless internet service in accordance with the Wireless Communication Plan (2008)"; See Errata #1. If the Concessioner operates wireless internet service, it must comply with the Wireless Communication Plan (2008) The Wireless Communication Plan (2008) is not specific about wireless in campgrounds. A Concessioner must submit all proposals to the Service wireless committee for approval. The Service has no definitive plans to improve cell towers and infrastructure; however, the Service from time to time may make improvements to the cell towers and associated infrastructure. 32.Has the National Park Service completed a current survey of all the buildings associated with this contract to evaluate their compliance with the new ADA guidelines? What is the NPS position regarding upgrading existing facilities to meet new ADA guidelines? How does the National Park Service expect repairs or upgrades to be funded? No, the Service has not completed a survey of all of the buildings associated with the Draft Contract to evaluate their compliance with ADA guidelines. The Concessioner must maintain all Concession Facilities in accordance with Applicable Laws. The Service will work with the Concessioner during the first year of the Contract to prioritize critical accessibility requirements. In addition, any new construction and major rehabilitations must meet ADA standards. Historic building renovations also will have to follow DOI Director's Guidance on Historic Buildings. 33.Several of the kitchens and the Gardiner Laundry are over 20 years old and many pieces of equipment have met or exceeded their life expectancy. The prospectus does not address the schedule for improvements to these facilities or equipment within them. What is the National Park Service's expectation for the improvement of these areas and replacement of the equipment in the next contract? The Service assumes the Concessioner will upgrade 8 full-service kitchens through a personal property replacement schedule at two-year intervals. Based upon consideration of public health issues, the Service recommends the Concessioner address the kitchens as follows: Roosevelt Lodge (2014), Grant Village (2016), Lake Hotel (2018), Grant Lake House (2020), Mammoth Hot Springs Hotel (2022), Lake Lodge (2024), Canyon Lodge (2026) and Old Faithful Lodge (2028). The Service assumes the Concessioner will replace the equipment at the laundry and the two fast food kitchens, one at Mammoth and the other at Old Faithful Snow Lodge, on a piece-by-piece basis. 34.Please provide copies of the Yellowstone National Park and concessioner park asset management plans (PAMP and CPAMP). The Service does not share this information. 35.How does the National Park Service use FCI and API to establish priorities on building maintenance? Will the National Park Service provide the asset values and estimated costs for repairs necessary to compute these numbers for the concessioner once the contract is awarded? What are the current FCI and API numbers for the buildings assigned in this contract? The Service uses condition assessment data (deferred maintenance costs and replacement/reproduction values) to establish a FCI (Facility Condition Index) for all facilities. The FCI can be weighted using the API (Asset Priority Index) to help establish work priorities. The Service will consider the FCI calculations when evaluating and approving the Concessioner's proposed work schedules/priorities and AMPs (Asset Management Plans). The Concessioner should estimate its own repair costs. The Service is uncertain as to which asset values the question refers to. The Service does not release FCI and API numbers.
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Place of Performance: Address: Yellowstone National Park, WY; Zip Code: 821900168
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99 -- Responses to questions received regarding a business opportunity to provide lodging, retail, food and beverage, campground, marina, transportation and other services within Yellowstone National Park - Part 1 of 2.