NPS Provides Opportunity for Contract Extension Based On Performance

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The National Park Service (NPS) recently issued a prospectus for a contract which would give a contract extension of up to three additional years if the concessioner met certain performance criteria.  The base contract period is for 12 years.  The concessioner would be given the option to extend the contract for an additional three years if it met two criteria.  First, the concessioner must annually achieve a 70 percent occupancy rate for at least six months of the year.  Second, the concessioner must receive at least six “Superior” annual ratings and no “Less than Satisfactory” ratings in the first nine years of the contract.  Because of the need for advance notice if the contract will be extended, the decision to extend will be made in the 10th year of the contract.  If the concessioner’s performance after the 9th year merits it, the extension period can be reduced.  The contract also includes a Concession Facilities Improvement Program (CFIP).  If the concessioner fails to complete the CFIP to the satisfaction of NPS, NPS has the right to reduce the base period from 12 years down to five years.

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