The National Park Service (NPS) recently released a copy of a contract it entered into with the Pinnacle Advisory Group, Inc. for assistance in developing policies and procedures for awarding and administering contracts authorized under the Visitor Enhancement Improvement Authority (VEIA). The VEIA, enacted in 2016, provides NPS with an alternate authority for issuing contracts for concession operations. NPS has previously issued concession contracts pursuant to the requirements of the National Park Service Concession Management Improvement Act of 1998. The new statute, however, contains very few guidelines as to how NPS can go about awarding or setting up contracts issued under its authority. VEIA may not be used to award contracts for outfitter and guide services or for contracts where a concessioner may have a preferential right of renewal, and contract terms may not exceed 10 years. The statute also prohibits any granting of leasehold surrender interest. Contracts must also be awarded “through a competitive selection process.” No other requirements or restrictions are imposed on NPS under the new law. NPS has stated that the new law gives the agency additional contracting flexibility to expand, modernize and improve the condition of concession facilities and operations.
Under the contract, NPS seeks the assistance of the Pinnacle Advisory Group to develop policies and procedures for all aspects of preparing, awarding and administering contracts under the VEIA. NPS notes in the contract that it could conduct contract negotiations with offerors as opposed to its current process which essentially involves sealed bids and no opportunities to make oral presentations. NPS further notes that VEIA gives it the flexibility to impose performance-based incentives. The contract also recognizes that NPS could pursue contracting models under VEIA that differ from the franchise fee arrangements required under the 1998 Concessions Act. Examples of alternative models include owner-operator arrangements “similar to what is common in the private hospitality industry.” The contract states that “NPS desires contracting tools and procedures [] that will provide some of the additional flexibilities seen in the private sector not currently available with the NPS franchise fee contract and solicitation process.”
VEIA states that NPS is to enact regulations which implement the VEIA “as soon as practicable” once the statute is enacted. To date, NPS has not issued any proposed or final regulations for this purpose.