Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5639 

(f) Standards for satisfactory progress. 

The grantee must establish, publish, 

notify participants of, and apply 

reasonable standards for measuring 

whether a participant is making 

satisfactory progress in the training 

program. The Secretary considers an 

institution’s standards to be reasonable 

if the standards— 

(1) Are the same as the institution’s 

standards for a student enrolled in the 

same academic program who is not 

receiving assistance under this program; 

and 

(2) Include the following elements: 

(i) Grades, work projects completed, 

including performance tasks, or 

comparable factors that are measurable 

against a norm and are aligned with 

demonstrating effective practice. 

(ii) A maximum timeframe in which 

the participant must complete the 

participant’s educational objective, 

degree, or certificate. 

(iii) Consistent application of 

standards to all participants within 

categories of students, (e.g., full-time, 

part-time, undergraduate students, and 

graduate students). 

(iv) Specific policies defining the 

effect of course incompletes, 

withdrawals, repetitions, and noncredit 

remedial courses on satisfactory 

progress. 

(v) Specific procedures for appeal of 

a determination that a participant is not 

making satisfactory progress and for 

reinstatement of aid. 

(g) Requirement for Indian preference. 

(1) Under section 7(b) of the Indian SelfDetermination and Education 

Assistance Act (Pub. L. 93–638), to the 

greatest extent feasible, a grantee must— 

(i) Give to Indians preferences and 

opportunities for training and 

employment in connection with the 

administration of the grant; and 

(ii) Give to Indian organizations and 

to Indian-owned economic enterprises, 

as defined in section 3 of the Indian 

Financing Act of 1974 (25 U.S.C. 

1452(e), preference in the award of 

contracts in connection with the 

administration of the grant. 

(2) For the purposes of this paragraph 

(g), an Indian is a member of any 

federally recognized Indian Tribe. 

[FR Doc. 2025–01317 Filed 1–15–25; 4:15 pm] 

BILLING CODE 4000–01–P 

DEPARTMENT OF THE INTERIOR 

National Park Service 

36 CFR Part 52 

[NPS–WASO–39268; PPWOBSADC0; 

PPMVSCS1Y.Y00000] 

RIN 1024–AE47 

Visitor Experience Improvements 

Authority Contracts 

AGENCY: National Park Service, Interior. 

ACTION: Final rule. 

SUMMARY: This rule implements the 

Visitor Experience Improvements 

Authority given to the National Park 

Service by Congress in Title VII of the 

National Park Service Centennial Act. 

This authority allows the National Park 

Service to award and administer 

commercial services contracts and 

related professional services contracts 

for the operation and expansion of 

commercial visitor facilities and visitor 

services programs in units of the 

National Park System. 

DATES: This rule is effective February 

18, 2025. 

Information collection requirements: 

If you wish to comment on the 

information collection requirements in 

this final rule, please note that the 

Office of Management and Budget 

(OMB) is required to make a decision 

concerning the collection of information 

contained in this final rule between 30 

and 60 days after publication of this 

final rule in the Federal Register. 

Therefore, comments should be 

submitted to OMB by February 18, 2025. 

ADDRESSES: 

Docket: The comments received on 

the proposed rule and a related 

economic analysis are available in the 

docket for this rulemaking. Visit https:// 

www.regulations.gov/ and search for 

Docket ID: NPS–2022–0003. 

Information Collection Requirements: 

Written comments and suggestions on 

the information collection requirements 

should be submitted by the date 

specified above in DATES to https://

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

Review—Open for Public Comments’’ or 

by using the search function. Please 

provide a copy of your comments to the 

NPS Information Collection Clearance 

Officer (ADIR–ICCO), 13461 Sunrise 

Valley Drive, (MS–244) Herndon, VA 

20171 (mail); or phadrea_ponds@

nps.gov (email). Please include ‘‘1024– 

AE47’’ in the subject line of your 

comments. 

FOR FURTHER INFORMATION CONTACT: Kurt 

Rausch, Chief of Commercial Services 

Program, National Park Service; (202) 

513–7202; kurt_rausch@nps.gov. For 

questions regarding the NPS’s 

information collection request contact 

phadrea_ponds@nps.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

NPS Authorities To Contract for 

Commercial Visitor Services 

The National Park Service (NPS) 

enters into concession contracts with 

persons and entities to provide 

commercial visitor services in over 100 

units of the National Park System. 

Examples of such services include 

lodging, food, retail, marinas, 

transportation, and recreational 

activities. NPS concession contracts 

generate approximately $1.8 billion per 

year in gross receipts, while returning 

approximately $180 million in franchise 

fees to the NPS. What was commonly 

known as the National Park Service 

Concession Policies Act of 1965 (1965 

Act), Public Law 89–249, provided the 

first comprehensive statutory authority 

for the NPS to issue concession 

contracts. Since the repeal of the 1965 

Act, concession contracts have been 

awarded under the National Park 

Service Concessions Management 

Improvement Act of 1998 (1998 Act), 54 

U.S.C. 101911–101926. NPS regulations 

in 36 CFR part 51 govern the solicitation 

and award of concession contracts 

issued under the 1998 Act and the 

administration of concession contracts 

issued under the 1965 and 1998 Acts. 

The National Park Service Centennial 

Act (Centennial Act), 54 U.S.C. 101931– 

101938, established the Visitor 

Experience Improvements Authority 

(VEIA) allowing the NPS to solicit, 

award, and administer commercial 

services contracts for the operation and 

expansion of commercial visitor 

facilities and visitor services programs 

in units of the National Park System. 

The VEIA supplements, but does not 

replace, the existing authority granted to 

the NPS in the 1998 Act to enter into 

concession contracts, or any other 

existing NPS authorities to provide 

commercial visitor services in units of 

the National Park System. The VEIA is 

also separate from authorities granted 

under the Office of Federal Procurement 

Policy Act and Federal Acquisition 

Regulations. 

The VEIA established a revolving 

fund that the NPS can use for expenses 

necessary for the management, 

improvement, enhancement, operation, 

construction, and maintenance of 

commercial visitor services and 


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5640 Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 

facilities within the National Park 

System; and for the payment of 

possessory interest and leasehold 

surrender interest for concession 

contracts. Funds collected pursuant to 

contracts awarded under the VEIA will 

be credited to the revolving fund, and 

the NPS is authorized to transfer to the 

revolving fund, without reimbursement, 

any additional funds or revenue in 

connection with the functions carried 

out under the VEIA. 

Differences Between VEIA and the 

Concession Contracts Authority 

The VEIA is intended to provide 

additional tools to expand, modernize, 

and improve the condition of 

commercial facilities and visitor 

services using contracting models that 

differ from and are in addition to the 

concession contracts used under the 

1998 Act. These models include 

management agreements and percentage 

lease agreements found in the private 

hospitality industry, as well as other 

contract models that are consistent with 

the VEIA. There are differences in the 

revenue management and fee structure 

for contract models that may be used 

under the VEIA, as discussed below. 

These models may be used to provide a 

variety of commercial visitor services 

such as lodging, food, retail, marinas, 

transportation, camping, and 

recreational activities. The use of 

industry-standard models and industryaligned contract terms may allow and 

encourage additional companies to bid 

on hospitality business opportunities in 

System units, thereby enhancing the 

visitor experience both at the particular 

System unit and across the System. 

Under a management agreement, the 

NPS would own the assets and proceeds 

of the business. The operator would 

provide staff and expertise to run the 

business in exchange for the NPS paying 

the operator a base fee plus an incentive 

fee. The NPS would authorize the 

operator to use available funds and 

revenue for operations (e.g., property 

maintenance, the purchase of supplies, 

furniture, and other personal property) 

and improvements (e.g., facility 

upgrades and repairs). Any financial 

return beyond what is needed for the 

business would be credited to the 

revolving fund. 

Under a percentage lease agreement, 

the operator would retain the revenue 

and pay a fee to the NPS. This would 

be similar to the concession contract 

model, although the fee structure under 

a percentage lease agreement would 

include payment of a base fee plus a 

percentage of revenue. Fees collected 

would be credited to the revolving fund. 

The VEIA also provides flexibility in 

the solicitation process. For example, 

the 1998 Act requires the NPS to 

consider specific evaluation factors, 

while the VEIA does not dictate any 

specific evaluation factors. This 

flexibility may allow businesses to more 

effectively respond to and be evaluated 

on how they will meet visitor needs for 

the services being offered. The 

flexibility of the VEIA also provides the 

potential to streamline the solicitation 

process to reduce the burden on 

businesses submitting proposals, 

including the ability to negotiate on the 

terms of the contract and greater ability 

to modify or adjust operations under 

existing contracts to reflect changes at 

the System unit or different visitor 

expectations during the contract term. 

In addition to commercial services 

contracts, the VEIA authorizes the NPS 

to enter into professional services 

contracts related to those commercial 

services contracts. These may include 

consulting contracts with hospitality 

and asset management experts for 

services such as developing requests for 

proposals, condition assessments, and 

operational and financial analysis. 

Implementation of the VEIA 

The Centennial Act requires the NPS 

to promulgate regulations appropriate 

for implementation of the VEIA. 54 

U.S.C. 101936. The Centennial Act also 

states that the VEIA expires seven years 

after the enactment of the law. 54 U.S.C. 

101938. The Consolidated 

Appropriations Act, 2023 (Pub. L. 117– 

328) extended the expiration of the 

VEIA by an additional two years until 

December 16, 2025. The NPS has 

consulted with hospitality industry 

experts, including academic leaders, 

hospitality asset management 

companies, hotel owners and operators, 

and State agencies to assess current 

visitor service contract models and best 

practices in the hospitality industry. 

The NPS engaged a nationally 

recognized hospitality management 

consulting and asset management firm 

to assist the NPS with developing 

contracts, requests for qualifications and 

proposals, and solicitation, contract 

management, and accounting practices. 

The NPS has evaluated certain visitor 

services currently provided under 

concession contracts that may be 

suitable for commercial services 

contracts under the VEIA. The NPS used 

various criteria during this evaluation, 

including: 

• Whether the services may be 

authorized under a commercial services 

contract under the VEIA (i.e., they may 

not be for the provision of outfitter and 

guide services, or for the provision of 

services for which the NPS has granted 

to an existing concessioner a 

preferential right of renewal under the 

1998 Act); 

• Whether the contract is necessary 

and appropriate for public use and 

enjoyment of the System unit where the 

services will be provided and can be 

executed in a manner that is consistent 

with the preservation and conservation 

of the resources and values of the unit; 

• Whether the operator can provide 

the visitor services in a manner that will 

expand, modernize, and improve the 

condition of commercial visitor 

facilities and the services provided to 

visitors; 

• Whether the contract would be 

suitable considering the type, size, and 

complexity of the services to be 

provided; 

• Whether the NPS can solicit the 

contract before the VEIA expires; and 

• Whether the level of capital 

investment needed makes a commercial 

services contract under the VEIA 

feasible. For example, if significant 

capital improvements are needed for 

which Federal funds would be 

unavailable, it may be more appropriate 

for the NPS to use a concession contract 

that allows operators to make 

investments in exchange for leasehold 

surrender interest and can have a term 

that is longer than ten years. These 

characteristics of concession contracts 

allow the operator to recoup some value 

of their investment and have more time 

to generate a return on their investment. 

During the public comment period for 

the proposed rule, the NPS received 

specific recommendations about how 

the VEIA should be used to expand, 

modernize, and improve commercial 

facilities and visitor services. Some 

commenters discussed the use of 

sustainable business practices related to 

renewable energy, water usage, and 

organic food sourcing. Other 

commenters made specific 

recommendations for updating 

campgrounds with modern, full-service 

amenities such as: 

• Bathing facilities with hot showers, 

sinks, and flush toilets; 

• Access to wi-fi throughout 

campsites; 

• Outfitting campsites with sitespecific hookups for EVs and electrical, 

water, and sewer services, as well as 

modern dump stations; 

• Developing wider, longer campsites 

for modern RVs; and 

• Developing more RV-accessible 

campsites to accommodate growing 

demand. 

The NPS appreciates all the feedback 

it received about how it can implement 

the VEIA for the benefit of visitors. The 


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Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5641 

NPS will look for opportunities to use 

the VEIA in a manner that enhances the 

visitor experience. This might include 

upgrades to campsites or other facilities 

such as marinas, hotels, restaurants, and 

retail stores. The NPS will provide 

information about implementation of 

the VEIA on the website for the NPS 

Commercial Services Program at https:// 

www.nps.gov/orgs/csp/index.htm. 

Final Rule 

The final rule includes requirements 

and limitations applicable to the VEIA 

that are directed by the Centennial Act. 

These requirements and limitations are 

promulgated in new 36 CFR part 52 and 

are explained below. 

The NPS may only issue a commercial 

services contract under the VEIA if the 

Secretary of the Interior, acting through 

the NPS, determines that the contract 

will support expansion, modernization, 

and improvement of the condition of 

commercial visitor facilities and the 

services provided to visitors. 

Commercial services contracts issued by 

the NPS under the VEIA must meet two 

additional criteria. First, the contract 

must be necessary and appropriate for 

public use and enjoyment of the 

National Park System unit where it is 

located. Second, the contract must be 

consistent with the preservation and 

conservation of the resources and values 

of the unit. These two criteria also must 

be met for concession contracts. 

The NPS may not award contracts 

under the VEIA for the provision of 

outfitter and guide services (as 

described in the 1998 Act), or to 

authorize the provision of facilities or 

services for which it has granted an 

existing concessioner a preferential right 

of renewal under the 1998 Act. The NPS 

may award commercial services 

contracts under the VEIA without regard 

to Federal laws and regulations 

governing procurement by Federal 

agencies, except for those laws and 

regulations related to Federal 

Government contracts that govern 

working conditions and wage rates and 

any civil rights provisions otherwise 

applicable thereto. 

The NPS must award VEIA 

commercial services contracts through a 

competitive selection process and must 

publicly solicit proposals for each 

contract before award. The NPS must 

prepare a request for proposals and 

publish notice of its availability. The 

NPS may not award a commercial 

services contract under the VEIA for a 

term greater than 10 years. The person 

or entity awarded a commercial services 

contract under the VEIA will not receive 

leasehold surrender interest in capital 

improvements (as those terms are 

defined by the 1998 Act at 54 U.S.C. 

101915) completed during the term of 

the contract. 

Other than these basic requirements, 

the VEIA authorizes the NPS to design 

a flexible process for the solicitation and 

evaluation of proposals. The NPS will 

adjust this process to reflect standard 

practices in hospitality and related 

industries, accounting for any necessary 

NPS-specific conditions. In addition to 

restating the statutory requirements 

governing the VEIA, the rule includes 

defined terms and other provisions that 

will govern the administration of 

contracts under the VEIA. These 

provisions explain solicitation, 

selection, and award procedures, 

including information about how the 

Director will publicly solicit proposals 

for a commercial services contract and 

how the Director will evaluate 

proposals. Other provisions govern the 

terms of the contracts themselves, 

including provisions related to 

termination, rate approval, assignments 

of contracts, and the management of 

funds. The final rule also addresses 

access to information and records held 

by operators related to their 

performance under commercial services 

contracts and by contractors related to 

their performance under professional 

services contracts. 

Summary of Public Comments 

The NPS published a proposed rule in 

the Federal Register on January 25, 

2022 (87 FR 3729). The NPS accepted 

public comments on the proposed rule 

through March 28, 2022, via the mail, 

hand delivery, and the Federal 

eRulemaking Portal at https://

www.regulations.gov. The NPS received 

14 comments on the proposed rule from 

individuals and organizations. 

The concessioner community 

supported the general purpose of the 

VEIA and this rule, but raised questions 

about how the NPS will use the VEIA 

to complement rather than replace the 

existing concession contracting 

authority and asked for more details 

about implementation. Several 

commenters predicted that the use of 

contract models commonly used in the 

hospitality industry will generate 

substantial interest because they require 

less capital investment for operators, are 

familiar to operators, and provide 

greater flexibility. These commenters 

predicted that this will result in more 

competition and better visitor services. 

After considering public comments and 

additional review, the NPS made several 

substantive changes to the rule. First, 

the NPS added a new paragraph to 

§ 52.4 restating the statutory limitations 

of the VEIA that it cannot be used for 

outfitter and guide services, or for the 

provision of facilities or services for 

which the NPS has granted to an 

existing concessioner a preferential right 

of renewal under the 1998 Act. 

Similarly, the NPS added language to 

§ 52.14 restating several other statutory 

criteria which apply to VEIA contracts. 

Second, the NPS removed paragraph 

(a)(1) from § 52.30. This paragraph 

explained a funding structure for 

commercial services contracts that was 

under consideration when the NPS 

published the proposed rule. The NPS 

has determined, however that this 

structure is not allowed under Federal 

law because it would give a private 

party direct access to funds in an 

account owned by the Federal 

Government. Third, § 52.41 has been 

updated to reflect the extended 

expiration date for the VEIA provided 

by Congress in the Consolidated 

Appropriations Act, 2023 (Public Law 

117–328). The NPS also added language 

to this section addressing the possibility 

that Congress will further extend the 

expiration date and clarifying that 

contracts awarded under the VEIA may 

continue beyond the VEIA expiration 

date, subject to the terms of the 

particular contract. Additionally, the 

NPS corrected a reference to the 

Comptroller General of the United 

States in § 52.36 and made several 

minor editorial changes to improve the 

clarity of the regulation and ensure 

consistency in terminology. 

A summary of the pertinent issues 

raised in the comments and NPS 

responses are provided below. 

1. Comment: Several commenters 

stated that commercial visitor services 

degrade the visitor experience and 

therefore should be prohibited in the 

National Park System. 

NPS Response: The NPS has several 

statutory authorities to allow for 

commercial visitor services within 

System units, including the VEIA. 

Commercial visitor services that degrade 

the visitor experience are not authorized 

by the VEIA. Commercial services 

contracts must be necessary and 

appropriate for public use and 

enjoyment of the System unit, and 

consistent with the preservation and 

conservation of the resources and values 

of the System unit. The NPS will adhere 

to these requirements in the planning, 

solicitation, award, and management of 

commercial service contracts under the 

VEIA. Moreover, the VEIA revolving 

fund monies cannot be used to decrease 

the availability of services and programs 

to the public. 

2. Comment: One commenter stated 

that the NPS should not use taxpayer 


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5642 Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 

funds to pay operators of businesses that 

provide visitor services in System units. 

NPS Response: The VEIA authorizes 

the use of Federal taxpayer funds in 

furthering the VEIA’s purposes, 54 

U.S.C. 101935, but the NPS expects to 

rely primarily on proceeds from the 

provision of visitor services to 

accomplish VEIA’s purposes. The NPS 

will conduct a detailed analysis before 

awarding a commercial visitor service 

contract under the VEIA to ensure that 

there is a reasonable business 

opportunity considering revenue, 

expenses, and other factors. In most 

cases, rates charged to visitors for 

services will result in net positive cash 

flow over the term of the contract to 

cover operating expenses with no need 

for the NPS to use funds from other 

sources. In some circumstances, 

however, the NPS may need to transfer 

funds to the operator from the revolving 

fund to cover business expenses that are 

not adequately covered by the cash flow 

of the business. For example, under the 

management agreement model, the NPS 

may need to transfer funds to the 

operator so that it can purchase supplies 

and equipment to allow the business to 

begin and continue operations before 

adequate cash flows exist to cover such 

expenses. As another example, under 

both the management agreement and 

percentage lease agreement models, the 

NPS may need to transfer funds to the 

operator to pay for large capital 

improvements to or the rehabilitation of 

the federally-owned buildings or other 

assets the NPS has assigned for use by 

the operator. Examples of such needs 

are a roof replacement or repairing a 

building foundation. These needs may 

be identified prior to issuance of the 

contract through a condition assessment 

or may be unexpected and identified 

during the contract term. The NPS could 

directly fund and contract for such 

projects without involving the operator. 

In some circumstances, however, 

funding such projects through the 

operator is beneficial because the 

operator can more expediently and 

effectively coordinate projects around 

visitor service operations thereby 

reducing impacts to the visitor 

experience. In either case, it would be 

appropriate for the NPS to pay for these 

projects because it would be investing 

in Federal facilities that the Federal 

Government owns. 

Under any of the circumstances 

described above, the funds provided to 

the operator could be paid from 

taxpayer or non-taxpayer revenue 

sources. One example of a non-taxpayer 

revenue source is concession franchise 

fees transferred to the revolving fund 

established under the VEIA. 

3. Comment: One commenter 

suggested that the NPS not use the term 

‘‘commercial services contract’’ when 

implementing the VEIA to avoid 

confusion with the terms ‘‘concession 

contract’’ and ‘‘commercial use 

authorization’’ that are used under 

separate authorities. 

NPS Response: The NPS uses the term 

‘‘commercial services contract’’ because 

that is the term used in the authorizing 

statute. See for example 54 U.S.C. 

101931(a). Commercial services 

contracts awarded under the VEIA will 

clearly identify the statutory authority 

being used to award the contract to 

avoid confusion with other written 

instruments such as concession 

contracts or commercial use 

authorizations. The contracts 

themselves will be titled according to 

the appliable contract model, such as a 

management agreement or a percentage 

lease agreement. This will further 

distinguish commercial services 

contracts issued under the VEIA from 

concession contracts and commercial 

use authorizations. 

4. Comment: One commenter 

expressed concern that under the VEIA 

the NPS might deposit Federal funds 

into a private bank account for use by 

the operator, potentially leading to 

misuse of those funds. 

NPS Response: Under the 

management agreement model, the NPS 

may make transfers of funds from the 

Federal revolving fund to private bank 

accounts established and owned by the 

operator that the operator will use to 

run the business. These accounts may 

include an operating account and a 

capital improvement account. The NPS 

will take numerous measures to 

minimize the risk of fraud, waste, and 

abuse of Federal funds in this process, 

and ensure compliance with all 

applicable laws pertaining to the use of 

Federal funds. The terms of the 

management agreement will require that 

private accounts used by the operator 

are insured by the Federal Deposit 

Insurance Corporation, that the NPS 

holds a first lien on account balances, 

and that account funds will not be 

commingled with other funds of the 

operator. Operating and capital budgets 

will be established and approved by the 

NPS. Expenses beyond approved 

operating and capital budgets will 

require written approval from NPS. 

Financial risk will be reduced further 

through monthly reporting 

requirements, NPS review of the 

operating and financial results of the 

business, independent annual audits of 

the operator’s financial statements and 

controls, and (in some cases) ongoing 

review and support of business 

operations provided by a hospitality 

asset manager on behalf of the NPS. 

5. Comment: One commenter noted 

that the rule does not state whether a 

percentage of the deposits in the 

revolving fund will be retained in the 

System unit where the visitor services 

are provided for the purposes of 

managing the commercial services 

contract and protecting visitors and 

resources. 

NPS Response: Unlike the 1998 Act, 

which allows System units to retain up 

to 80% of franchise fees generated from 

concession contracts, the VEIA does not 

establish any specific allocations for 

funds collected under commercial 

services contracts. The NPS can use 

funds in the revolving fund for any 

expenses necessary for the management, 

improvement, enhancement, operation, 

construction, and maintenance of 

commercial visitor services and 

facilities that exist across the National 

Park System. The NPS will conduct 

annual planning to determine the 

appropriate level of funding that should 

be retained at the System unit where the 

funds were generated. Regardless of 

what percentage of funds are retained at 

the respective System unit, the NPS can 

take other actions to ensure that the 

operator’s business activities are 

consistent with visitor and resource 

protection goals. When the NPS uses a 

management agreement model, it may 

award a related asset management 

contract. This contract would provide 

professional hospitality support services 

to help the NPS oversee the operator’s 

performance, including ensuring the 

business activities are consistent with 

visitor and resource protection in the 

System unit. 

6. Comment: One commenter 

recommended that the NPS address 

intellectual property associated with 

commercial operations authorized by 

the VEIA to protect the NPS from 

trademark disputes upon the expiration 

or termination of a contract. 

NPS Response: To avoid disputes and 

protect NPS intellectual property, 

commercial service contracts will 

include provisions about rights to 

intellectual property, including 

trademarks, that are used by commercial 

service providers during the term of the 

contract. This will include provisions 

about the names of facilities used by 

operators. 

7. Comment: One commenter stated 

the rule creates uncertainty for existing 

and potential commercial visitor service 

providers, as well as other stakeholders, 

in several areas, including the 

solicitation process and how the NPS 

will use funds in the revolving account. 

In general, these commenters asked the 


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Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5643 

NPS to provide more detail about how 

it will implement the VEIA. 

NPS Response: This rule omits details 

about implementation, such as 

solicitation and financial processes, in 

order to give the NPS flexibility as it 

develops and tests new contracting 

models that meet the goals of the VEIA. 

To the extent possible, the NPS will be 

consistent with hospitality industry 

contracting practices as it tests these 

models. For this reason, the solicitation 

processes and the structures and terms 

of the contracts should be familiar to 

most hospitality service providers. The 

NPS will issue requests for proposals 

that include a clear and complete 

description of the solicitation process 

and selection criteria. The request for 

proposal package will include the draft 

contract to eliminate uncertainty for 

those interested in submitting proposals 

and operating under that contract. The 

NPS will develop clear, internal 

operating procedures and manuals 

addressing various topics, including 

accounting and financial management 

practices. The NPS will make these 

publicly available as appropriate and 

allowed under applicable law. 

8. Comment: Several commenters 

asked the NPS to explain when it will 

use the VEIA instead of authorities to 

issue concession contracts, commercial 

use authorizations, and leases. One 

commenter stated that the NPS should 

not use the VEIA to replace the existing 

concession contract authority, and 

should use it only in unique and limited 

circumstances where concession 

contracts are not viable or do not give 

the respondent a chance to make a 

reasonable profit. Another commenter 

suggested that the NPS should use the 

VEIA only if there is no demonstrated 

interest from potential operators in 

entering into a concession contract or a 

commercial use authorization. 

NPS Response: The statutes 

authorizing the NPS to enter into 

concession contracts and commercial 

use authorizations (54 U.S.C. 101911– 

101926), and authorizing the NPS to 

enter into leases (e.g., 54 U.S.C. 102102, 

306121), establish requirements the NPS 

must meet in order to use those 

authorities. The NPS also must follow 

applicable regulations and policies it 

has established for the use of those 

authorities. See, for example, 36 CFR 

part 51—Concession Contracts; 36 CFR 

part 18—Leasing of Properties in Park 

Areas; and Policy Memorandum 07–01 

(Authorizing activities through leases 

versus concession contracts or 

commercial use authorizations). The 

VEIA specifically states that nothing in 

the statute modifies the terms and 

conditions of any awarded concession 

contract or the NPS’s ability to enter 

into concession contracts under the 

1998 Act. 54 U.S.C. 101937. This is 

restated for emphasis in § 52.40 of this 

rule. The NPS declines to impose 

limitations in this rule on its use of the 

VEIA that do not exist in the statute. As 

a practical matter, existing statutory 

limitations on the use of the VEIA could 

make a concession contract more 

appropriate in certain circumstances. 

Commercial services contracts awarded 

under the VEIA cannot exceed ten years 

and operators cannot receive leasehold 

surrender interest. As a result, a 

concession contract may be more 

appropriate if a significant capital 

improvement is needed to provide the 

visitor services. The NPS may want to 

leverage private investment to fund 

those improvements and a concession 

contract would allow for a longer term 

and an opportunity for the operator to 

receive leasehold surrender interest for 

investments made during the term of the 

contract. In other cases, the ability to 

use VEIA contract models and practices 

more common in the hospitality 

industry may result in benefits such as 

cost savings, greater efficiency, 

increased competition, and greater 

return to the government. The NPS will 

evaluate opportunities to provide 

commercial visitor services on a caseby-case basis to determine which 

authority is the most appropriate. 

9. Comment: One commenter 

recommended that the rule explain how 

necessary capital improvements would 

be funded under commercial services 

contracts given the prohibition on 

paying leasehold surrender interest. 

NPS Response: The rule does not 

specifically address how necessary 

capital improvements will be funded 

under commercial services contracts 

because it may vary from contract to 

contract. In some cases, operators will 

conduct capital improvement projects 

using money from operating and capital 

improvement accounts that are funded 

from business revenues or deposits from 

the NPS that are transferred from the 

revolving fund. In other cases, the NPS 

will directly fund and contract for such 

projects without the involvement of the 

operator. 

10. Comment: One commenter asked 

the NPS to state in § 52.4 of the rule that 

the NPS may not issue commercial 

services contracts under the VEIA for 

guide and outfitter services or contracts 

for which there is a current preferential 

right of renewal under the 1998 Act. 

NPS Response: The NPS has added a 

new paragraph to § 52.4 of the rule to 

include these statements. 

11. Comment: Several commenters 

asked the NPS to include more detail in 

the rule about the bid process, in 

particular about how potential bidders 

and existing operators may suggest new 

and additional visitor services, and how 

the NPS will consider those suggestions 

during the competitive selection process 

and during the term of a contract. 

NPS Response: The NPS often 

requests ideas for new and additional 

services as a selection factor in 

prospectuses issued for concession 

contracts under the 1998 Act. The NPS 

may do the same when soliciting 

proposals for commercial services 

contracts under the VEIA if the NPS 

determines that is appropriate. The NPS 

will explain the details of such requests 

when they occur. The contracts will 

specify how the operator can propose 

new and additional services during the 

term of the contract. The NPS will not 

consider new or additional services that 

would result in a material change to the 

services authorized by the contract and 

described in the request for proposals. 

This will ensure that those who 

compete for the contract are treated 

fairly and that this process is consistent 

with how the NPS manages concession 

contracts. Defining the processes for 

proposing new and additional services 

in requests for proposals and contracts, 

on a case-by-case basis, gives the NPS 

more flexibility to tailor those processes 

to the unique circumstances of each 

situation. 

12. Comment: One commenter 

questioned whether the NPS will 

meaningfully consider information 

presented by respondents during 

request for qualifications, interview, and 

negotiation phases when § 52.14 of the 

rule allows, but does not require, the 

NPS to do so. 

NPS Response: The rule states that 

NPS may (rather than must) consider 

such information because some of the 

information presented may be irrelevant 

to the selection process or, due to the 

nature of the contract, one or more of 

those phases might not be necessary for 

the evaluation process for the award of 

that contract. To the extent that a 

respondent presents relevant 

information in a phase that is needed for 

the selection process, the NPS will 

consider such information in a 

meaningful way. 

13. Comment: One commenter asked 

the NPS to add language to the rule that 

protects confidential, proprietary, or 

other information provided by 

respondents to the NPS during the 

solicitation process. This commenter 

asked the NPS to include a provision 

similar to 36 CFR 51.100 that applies to 

concession contracts, which states that 

the NPS will not make proposals 

publicly available until a concession 


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5644 Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 

contract is awarded, and then may make 

proposals and other documents publicly 

available in accordance with applicable 

law. This commenter also stated that 

paragraph (b) in § 52.16 does not 

prevent the NPS from reviewing a bid 

developed at substantial expense by one 

respondent that includes information 

about its technical and management 

approach, rejecting that bid, and then 

sharing and using that information in 

negotiations with a competing bidder. 

NPS Response: As it does for 

concession contracts, before the 

commercial service contract is awarded, 

the NPS will consider information in 

proposals submitted in response to a 

prospectus as protected from disclosure 

under the Freedom of Information Act 

(FOIA), which establishes exemptions 

for information subject to deliberative 

process privilege and for trade secrets 

and commercial or financial information 

that is confidential or privileged. 5 

U.S.C. 552(b)(4)–(5). After the contract 

has been awarded, the NPS may or will 

make the proposals and documents 

publicly available in accordance with 

applicable law. The NPS does not 

believe it is necessary to make these 

statements in the rule because 

determinations about whether 

information must be disclosed or not are 

governed by the FOIA, the Department’s 

FOIA regulations (beginning at 43 CFR 

2.1), and other applicable laws. The 

NPS will use all relevant information in 

proposals to make award decisions. The 

NPS must comply with these legal 

requirements in responding to a request 

under the FOIA, whether submitted by 

a respondent or another member of the 

public. 

14. Comment: One commenter 

recommended that the rule require the 

NPS to publish notices of availability of 

a request for proposals on the NPS 

commercial services program website 

and on the website for the System unit 

or units where the services would be 

provided. 

NPS Response: Paragraph (a) of 

§ 52.11 of the rule states that, in 

addition to publication in the System 

for Award Management or similar 

publication, the NPS also may publish 

notices of availability electronically on 

websites, including social media, and in 

local or national newspapers or trade 

magazines. For concession contracts, the 

NPS publishes notices of availability on 

the websites mentioned by the 

commenter in accordance with internal 

policy and procedures. The NPS expects 

to do the same for commercial services 

contracts. Rather than make this a 

regulatory requirement, however, the 

NPS prefers to maintain the flexibility to 

publish notifications in a manner that is 

most appropriate for each request. 

15. Comment: One commenter 

recommended that the rule provide 

more detail about the two potential 

contracting models identified by the 

NPS (management agreements and 

percentage lease agreements) and 

explain how those models will be used 

to promote investments that are 

necessary to expand, modernize, and 

improve the visitor services and 

facilities. 

NPS Response: The management 

agreement and percentage lease 

agreement models are explained above 

in more detail than they were in the 

preamble of the proposed rule and are 

explained further in the cost-benefit and 

initial regulatory flexibility analysis that 

is available in the docket for this 

rulemaking. The details of how the NPS 

will use those agreement models to 

further the goals of the statute will be 

determined during implementation of 

the VEIA. The NPS will provide 

information about implementation of 

the VEIA on the website for the NPS 

Commercial Services Program at https:// 

www.nps.gov/orgs/csp/index.htm. 

16. Comment: One commenter 

encouraged the NPS to use the services 

of the Youth Conservation Corps for 

projects related to commercial visitor 

services provided under the VEIA and 

asked the NPS to consider a 

respondent’s proposal to use the Youth 

Conservation Corps as a positive factor 

in the proposal selection process. 

NPS Response: The NPS appreciates 

the skill and experience that the Youth 

Conservation Corps brings to projects 

throughout the National Park System 

and will consider using Corps members 

for capital improvement projects under 

the VEIA that are directly funded by the 

NPS. Rather than establish specific 

selection factors in this rule, the NPS 

prefers to maintain flexibility to 

establish selection factors that are 

tailored to the specific contracting 

model being used and the specific 

objectives of the request. The NPS may 

identify the use of Corps members as a 

positive selection factor, if appropriate, 

and give weight to such commitments as 

well as other factors as it deems 

appropriate. 

17. Comment: One commenter 

expressed concern that the rule would 

increase costs to the public by allowing 

concessioners to set prices for visitor 

services that do not account for visitors 

that have a variety of income levels. 

NPS Response: The NPS is sensitive 

to the issue of reasonableness and 

appropriateness of rates and charges for 

commercial visitor services provided in 

System units recognizing that it is often 

more expensive to provide those 

services in System units compared to 

other locations outside the System. The 

NPS will oversee the operations of such 

businesses to ensure that charges for 

commercial visitor services are 

reasonable and appropriate. As 

described in § 52.28 of the rule, 

generally, the NPS will accomplish this 

by approving rates for services provided 

to visitors based upon market demand, 

but the Director may specify rates or rate 

methods for particular services based on 

factors other than market demand, such 

as to ensure affordability to a broad 

segment of visitors. 

Compliance With Other Laws, 

Executive Orders, and Department 

Policy 

Regulatory Planning and Review 

(Executive Orders 12866 and 13563 and 

14094) 

Executive Order (E.O.) 14094 amends 

E.O. 12866 and reaffirms the principles 

of E.O. 12866 and E.O. 13563 and states 

that regulatory analysis should facilitate 

agency efforts to develop regulations 

that serve the public interest, advance 

statutory objectives, and are consistent 

with E.O. 12866 and E.O. 13563. 

Regulatory analysis, as practicable and 

appropriate, shall recognize distributive 

impacts and equity, to the extent 

permitted by law. E.O. 13563 

emphasizes further that regulations 

must be based on the best available 

science and that the rulemaking process 

must allow for public participation and 

an open exchange of ideas. We 

developed this rule in a manner 

consistent with these requirements. 

E.O. 12866, as reaffirmed by E.O. 

13563 and amended and reaffirmed by 

E.O. 14094, provides that the Office of 

Information and Regulatory Affairs 

(OIRA) in the Office of Management and 

Budget (OMB) will review all significant 

rules. OIRA determined that this final 

rule is not significant. 

Regulatory Flexibility Act (RFA) (5 

U.S.C. 601 et seq.) 

This rule will not have a significant 

economic effect on a substantial number 

of small entities under the RFA (5 

U.S.C. 601 et seq.). This certification is 

based on the cost-benefit and initial 

regulatory flexibility analysis for the 

proposed rule found in the report 

entitled ‘‘Visitor Experience 

Improvements Authority (VEIA) 

Proposed Rule Regulatory Assessment 

(RA) and Initial Regulatory Flexibility 

Analysis (IRFA),’’ which can be viewed 

on https://www.regulations.gov in 

Docket ID: NPS–2022–0003. The 

certification in that report remains valid 


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Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5645 

for the final rule due to the limited 

changes in this rule from the proposed 

version. 

Congressional Review Act (CRA) 

This rule is not a major rule under 5 

U.S.C. 804(2), the CRA. This rule: 

(a) Will not have an annual effect on 

the economy of $100 million or more; 

(b) Will not cause a major increase in 

costs or prices for consumers, 

individual industries, Federal, State, or 

local government agencies, or 

geographic regions; and 

(c) Will not have significant adverse 

effects on competition, employment, 

investment, productivity, innovation, or 

the ability of U.S.-based enterprises to 

compete with foreign-based enterprises. 

Unfunded Mandates Reform Act 

(UMRA) (2 U.S.C. 1501 et seq.) 

This rule does not impose an 

unfunded mandate on State, local, or 

Tribal governments or the private sector 

of more than $100 million per year. The 

rule does not have a significant or 

unique effect on State, local or Tribal 

governments or the private sector. This 

rule establishes administrative 

procedures for the NPS and does not 

impose requirements on other agencies 

or governments. A statement containing 

the information required by the UMRA 

(2 U.S.C. 1531 et seq.) is not required. 

Takings (E.O. 12630) 

This rule does not effect a taking of 

private property or otherwise have 

takings implications under E.O. 12630. 

A takings implication assessment is not 

required. 

Federalism (E.O. 13132) 

Under the criteria in section 1 of E.O. 

13132, the rule does not have sufficient 

federalism implications to warrant the 

preparation of a federalism summary 

impact statement. This rule only affects 

visitor services provided on NPSadministered lands and waters. A 

federalism summary impact statement is 

not required. 

Civil Justice Reform (E.O. 12988) 

This rule complies with the 

requirements of E.O. 12988. This rule: 

(a) Meets the criteria of section 3(a) 

requiring agencies to review all 

regulations to eliminate errors and 

ambiguity and write them to minimize 

litigation; and 

(b) Meets the criteria of section 3(b)(2) 

requiring agencies to write all 

regulations in clear language and 

contain clear legal standards. 

Consultation With Indian Tribes (E.O. 

13175 and Department Policy) 

The Department of the Interior strives 

to strengthen its government-togovernment relationship with Indian 

Tribes through a commitment to 

consultation with Indian Tribes and 

recognition of their right to selfgovernance and Tribal sovereignty. The 

NPS has evaluated this proposed rule 

under the criteria in E.O. 13175 and 

under the Department’s Tribal 

consultation policy and has determined 

that Tribal consultation is not required 

because the proposed rule will have no 

substantial direct effect on federally 

recognized Indian Tribes. 

Paperwork Reduction Act of 1995 (PRA; 

44 U.S.C. 3501 et seq.) 

This rule contains new information 

collections. All information collections 

require approval under the PRA. The 

NPS may not conduct or sponsor and 

you are not required to respond to a 

collection of information unless it 

displays a currently valid OMB control 

number. OMB must approve the new 

reporting and recordkeeping 

requirements identified below: 

(1) Solicitation of Proposals—The 

VEIA requires that the NPS solicit 

proposals for commercial services 

contracts through a competitive process. 

The NPS may also award and 

administer related professional services 

contracts. The solicitation process may 

include one or more phases such as a 

request for qualifications followed by or 

in concert with a request for more 

detailed information through a request 

for proposals. The process could also 

include interviews with respondents 

and a negotiation phase. The NPS will 

use the information collected to 

evaluate and select the best operator to 

provide the contracted services. 

Information submitted in response to a 

solicitation may include, as applicable 

to the specific project, types of 

information similar to the following: 

• Information concerning the 

respondent’s ability to comply with the 

commercial service contract terms and 

conditions; 

• Information that demonstrates that 

the respondent is a qualified entity; 

• Information that demonstrates the 

respondent’s experience and prior 

performance in operating similar 

facilities and providing similar services; 

• Information concerning the 

respondent’s financial capability; 

• Information concerning the 

respondent’s proposed approach and 

methodology to deliver the services 

specified; and 

• Information that the respondent 

provides in response to other factors 

identified in the request for proposals. 

(2) Reporting Requirements 

(A) Commercial Services Operators— 

In order to monitor their performance 

and make appropriate NPS management 

decisions, the NPS will require 

operators providing commercial services 

under a VEIA contract to provide 

information to the NPS through reports 

and plans such as the following: 

• Annual Plan that includes 

information summarizing prior year 

operating activities, capital projects and 

facility condition assessment, and 

financial performance, and outlining 

projected annual operating and capital 

budgets, projected annual operating 

plans, capital project plans and designs, 

and staffing and marketing plans; 

• Monthly Performance Reports that 

include monthly financial performance 

statements, capital project and operating 

performance information; and 

• Ad hoc Reports such as 

environmental or safety incidents 

reports. 

The above types of plans and reports 

to owners (e.g., NPS) are standard for 

those providing commercial services in 

the hospitality industry in the private 

and public sector. The NPS requires 

financial data be submitted in 

accordance with Generally Accepted 

Accounting Principles (GAAP); 

however, no standardized form or 

format is defined for any plans or 

reports at this time. The NPS expects 

this to evolve during its implementation 

of the VEIA and may have forms and 

formats at a later time. The NPS will 

obtain OMB approval for any changes in 

reporting and/or recordkeeping 

requirements as they are developed. 

(B) Professional Services Providers— 

Professional services providers will be 

required to provide information to the 

NPS through deliverables, reports, and 

plans such as the following: 

• Operator Annual Plan Review 

Report analyzing operator prior year 

performance and operational, capital 

project, and financial plans for the 

upcoming year; 

• Monthly Asset Manager Reports 

analyzing operator operational, capital 

project, and financial performance; and 

• Commercial Services Contract 

Solicitation Support Deliverables such 

as financial and business opportunity 

analysis reports, condition assessment 

reports, and draft Request for 

Qualifications/Request for Proposals 

documents for commercial services 

contracts. 

There is no standard format or form 

associated with these information 

requests. 


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5646 Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 

(3) Recordkeeping Requirements— 

Operators under commercial services 

contracts and contractors under 

professional services contracts must 

keep any records that the Director of the 

NPS may require for the term of the 

contract and for five calendar years after 

the termination or expiration of the 

contract to enable the Director to 

determine that all terms of the contract 

are or were faithfully performed. The 

Director, for the purpose of audit and 

examination, must have access to and 

the right to examine all pertinent 

records, books, documents, and papers 

of the operator, contractor, 

subcontractor, and any parent or 

affiliate of the operator or contractor 

(but with respect to parents and 

affiliates, only to the extent necessary to 

confirm the validity and performance of 

any representations or commitments 

made to the Director by a parent or 

affiliate of the operator or contractor). 

Title of Collection: Administration of 

Visitor Experience Improvements 

Authority, 54 U.S.C. 101936. 

OMB Control Number: 1024–New. 

Form Number: None. 

Type of Review: New. 

Respondents/Affected Public: 

Business entities desiring to enter VEIAauthorized contracts with the National 

Park Service. 

Total Estimated Number of Annual 

Respondents: 46 (Commercial Services 

Operators: 18; Professional Services 

Providers: 28). 

Total Estimated Number of Annual 

Responses:100 (Commercial Services 

Operators: 50; Professional Services 

Providers: 50). 

Estimated Completion Time per 

Response: Average time (Varies from 24 

hours to 800 hours, depending on 

respondent and/or activity). 

Total Estimated Number of Annual 

Burden Hours: 7,016 hours. 

Respondent’s Obligation: Required to 

Obtain or Retain a Benefit. 

Frequency of Collection: On occasion. 

Total Estimated Annual Nonhour 

Burden Cost: $112,900 (for costs 

associated with solicitations, start-up 

costs, and recordkeeping requirements). 

As part of our continuing effort to 

reduce paperwork and respondent 

burdens, we invite the public and other 

Federal agencies to comment on any 

aspect of this information collection, 

including: 

(1) Whether or not the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether or not the 

information will have practical utility; 

(2) The accuracy of our estimate of the 

burden for this collection of 

information, including the validity of 

the methodology and assumptions used; 

(3) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and 

(4) How the agency might minimize 

the burden of the collection of 

information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology, e.g., permitting 

electronic submission of response. 

Written comments and suggestions on 

the information collection requirements 

should be submitted by the date 

specified above in DATES to https://

www.reginfo.gov/public/do/PRAMain. 

Find this particular information 

collection by selecting ‘‘Currently under 

Review—Open for Public Comments’’ or 

by using the search function. Please 

provide a copy of your comments to the 

NPS Information Collection Clearance 

Officer at the address specified above in 

ADDRESSES. Please include ‘‘1024– 

AE47’’ in the subject line of your 

comments. 

National Environmental Policy Act 

(NEPA) 

This rule does not constitute a major 

Federal action significantly affecting the 

quality of the human environment. A 

detailed statement under NEPA is not 

required. The NPS has determined the 

rule is categorically excluded under 43 

CFR 46.210(i) because it is 

administrative, financial, legal, and 

technical in nature. In addition, the 

environmental effects of this rule are too 

speculative to lend themselves to 

meaningful analysis. NPS decisions to 

enter into contracts under the VEIA will 

be subject to compliance with NEPA at 

the time the contracts are executed. The 

NPS has determined the rule does not 

involve any of the extraordinary 

circumstances listed in 43 CFR 46.215 

that would require further analysis 

under NEPA. 

Effects on the Energy Supply (E.O. 

13211) 

This rule is not a significant energy 

action under the definition in E.O. 

13211; the proposed rule is not likely to 

have a significant adverse effect on the 

supply, distribution, or use of energy, 

and the rule has not otherwise been 

designated by the Administrator of 

Office of Information and Regulatory 

Affairs as a significant energy action. A 

statement of energy effects is not 

required. 

List of Subjects in 36 CFR Part 52 

Commercial services, Government 

contracts, National parks, Visitor 

services. 

In consideration of the foregoing, the 

National Park Service is adding part 52 

to title 36 of the Code of Federal 

Regulations to read as follows: 

PART 52—VISITOR EXPERIENCE 

IMPROVEMENTS AUTHORITY 

CONTRACTS 

Subpart A—Authority and Purpose 

Sec. 

52.1 What does this part cover? 

52.2 What is the purpose of a commercial 

services contract? 

52.3 How are terms defined in this part? 

52.4 What types of commercial services 

contracts may the Director issue? 

52.5 What types of professional services 

contracts may the Director issue? 

Subpart B—Solicitation, Selection, and 

Award Procedures 

52.10 How will the Director solicit 

responses for the award of a commercial 

services contract? 

52.11 Where will the Director publish 

notice of the availability of a request for 

proposals? 

52.12 How long will respondents have to 

submit a response? 

52.13 How will the Director share 

information with potential respondents 

after issuing the request for proposals? 

52.14 How will the Director evaluate 

responses and select the best one? 

52.15 When will the Director reject a 

response? 

52.16 What options does the Director have 

in accepting or rejecting a response? 

52.17 Does this part limit the authority of 

the Director? 

52.18 When must the selected respondent 

execute the contract? 

52.19 When may the Director award the 

commercial services contract? 

52.20 How will the Director solicit and 

award professional services contracts? 

Subpart C—Contract Provisions 

52.25 What is the term of a commercial 

services contract? 

52.26 When may the Director terminate a 

contract? 

52.27 May an operator or professional 

services provider receive leasehold 

surrender interest in capital 

improvements? 

52.28 Are operator rates subject to approval 

by the Director? 

52.29 May operators assign or encumber 

commercial services contracts? 

52.30 How may commercial services 

contracts be funded? 

Subpart D—Information and Access to 

Information 

52.35 What records must the operator and 

professional services provider keep and 

what access does the Director have to 

records? 


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Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5647 

52.36 What access does the Comptroller 

General have to records kept by 

operators and professional services 

providers? 

Subpart E—Miscellaneous 

52.40 Does this part affect concession 

contracts under part 51 of this chapter? 

52.41 Does the VEIA expire? 

52.42 Severability. 

Authority: 54 U.S.C. 101931–101938. 

Subpart A—Authority and Purpose 

§ 52.1 What does this part cover? 

This part covers the solicitation, 

award, and administration of 

commercial services contracts and 

related professional services contracts. 

The Director solicits, awards, and 

administers these contracts on behalf of 

the Secretary of the Department of the 

Interior under the authority of the Act 

of August 25, 1916, as amended and 

supplemented, 54 U.S.C. 100101 et seq., 

and title VII of the National Park Service 

Centennial Act, 54 U.S.C. 101931– 

101938. All commercial services 

contracts and related professional 

services contracts must be consistent 

with the requirements of this part. 

These contracts will contain such terms 

and conditions as required by this part 

or law and as otherwise appropriate in 

furtherance of the purposes of this part 

and the Visitor Experience 

Improvements Authority (VEIA). 

§ 52.2 What is the purpose of a 

commercial services contract? 

The National Park Service (NPS) will 

use commercial services contracts to 

expand, modernize, and improve the 

condition of commercial facilities and 

commercial services provided to visitors 

in a park area. Commercial services 

contracts are limited to those that are 

necessary and appropriate for public use 

and enjoyment of the park area in which 

they are located and consistent with the 

preservation and conservation of the 

resources and values of the park area. 

§ 52.3 How are terms defined in this part? 

Award occurs when the Director and 

a selected respondent execute a 

commercial services contract or related 

professional services contract that 

creates legally binding obligations on 

the parties to the contract. 

Commercial services contract means a 

binding written agreement between the 

Director and an operator awarded under 

the authority of this part that authorizes 

the operator to provide services to 

visitors within a park area under 

specified terms and conditions. 

Contract means either a commercial 

services contract or a related 

professional services contract issued 

under the authority of this part. The 

Director may award contracts without 

regard to Federal laws and regulations 

governing procurement by Federal 

agencies, with the exception of laws and 

regulations related to Federal 

Government contracts governing 

working conditions and wage rates, 

including the Alaska National Interest 

Lands Conservation Act (16 U.S.C. 3101 

et seq.), 40 U.S.C. 3141–3144, 3146, and 

3147 (commonly known as the ‘‘DavisBacon Act’’), and any civil rights 

provisions otherwise applicable thereto. 

Contracts as defined in this section are 

not contracts within the meaning of 41 

U.S.C. 601 et seq. (the Contract Disputes 

Act) and are not service or procurement 

contracts within the meaning of statutes, 

regulations, or policies that apply only 

to Federal service contracts or other 

types of Federal procurement actions. 

Director means the Director of the 

National Park Service (acting on behalf 

of the Secretary), or an authorized 

representative of the Director, except 

where a particular official is specifically 

identified in this part. 

Operator means an individual, 

corporation, or other legally recognized 

entity that duly holds a commercial 

services contract. 

Professional services contract means a 

binding written agreement between the 

Director and a professional service 

provider awarded under the authority of 

this part that authorizes the service 

provider to provide hospitality 

consulting or other services to the 

National Park Service related to 

commercial services contracts. 

Professional services provider means 

an individual, corporation, or other 

legally recognized entity that duly holds 

a professional services contract. 

Qualified entity means an individual, 

corporation, or other legally recognized 

entity that the Director determines has 

the experience and financial ability to 

carry out the terms of a commercial 

services contract or professional 

services contract. 

Respondent means an individual, 

corporation, or other legally recognized 

entity that submits a response for a 

commercial services contract. 

Response means the information an 

individual, corporation, or other legally 

recognized entity provides to the 

National Park Service in response to a 

request for proposals. 

VEIA means the authority granted to 

the Director under title VII of Public 

Law 114–289 entitled ‘‘Visitor 

Experience Improvements Authority’’ 

and codified at 54 U.S.C. 101931– 

101938. 

Visitor services means 

accommodations, facilities, and other 

services determined by the Director as 

necessary and appropriate for public use 

and enjoyment of a park area provided 

to park area visitors for a fee or charge 

by an individual or entity other than the 

Director. Visitor services may include, 

but are not limited to, lodging, 

campgrounds, food service, 

merchandising, tours, recreational 

activities, guiding, transportation, and 

equipment rental. Visitor services also 

include the sale of interpretive materials 

or the conduct of interpretive programs 

for a fee or charge to visitors. 

§ 52.4 What types of commercial services 

contracts may the Director issue? 

(a) Except as stated in paragraph (b) 

of this section, the Director may issue 

commercial services contracts for 

expanding, modernizing, and improving 

visitor services consistent with the 

VEIA. Examples of such contracts 

include, without limitation, 

management agreements and percentage 

lease agreements. 

(b) The Director may not award 

commercial services contracts: 

(1) For the provision of outfitter and 

guide services described in section 54 

U.S.C. 101913(8); or 

(2) To authorize the provision of 

facilities or services for which the 

Director has granted to an existing 

concessioner a preferential right of 

renewal as defined in 54 U.S.C. 101911 

and 101913. 

§ 52.5 What types of professional services 

contracts may the Director issue? 

The Director may issue professional 

services contracts that support the 

National Park Service in soliciting, 

awarding, and managing commercial 

services contracts. Professional services 

contracts may include asset 

management agreements under which a 

service provider assists the National 

Park Service in overseeing and 

administering commercial services 

contracts but does not itself provide 

visitor services. Professional services 

contracts also may include contracts for 

the provision of other consulting 

services to the National Park Service 

such as developing requests for 

proposals, condition assessments, 

operational or financial analysis, 

accounting, and other related services. 

Subpart B—Solicitation, Selection, and 

Award Procedures 

§ 52.10 How will the Director solicit 

responses for the award of a commercial 

services contract? 

(a) The Director will award 

commercial services contracts through a 

competitive selection process. The 

Director will issue a request for 


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5648 Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 

proposals inviting responses for 

consideration by the Director. The 

request for proposals will describe the 

terms and conditions of the proposed 

commercial services contract and the 

procedures the Director will follow to 

negotiate and award the commercial 

services contract. 

(b) The terms and conditions of the 

request for proposals and the proposed 

commercial services contract are not 

final until the Director awards the 

commercial services contract. 

(c) The solicitation process may 

include one or more phases, such as a 

request for qualifications followed by or 

in concert with a request for more 

detailed information through a request 

for proposals. The process could also 

include interviews with respondents 

and a negotiation phase. 

(d) If the entity that will become the 

operator is not established at the time of 

submission of a response, the response 

must contain assurances satisfactory to 

the Director that the entity that will 

become the operator will be a qualified 

entity as of the date of the award of the 

commercial services contract and 

otherwise have the ability to carry out 

the commitments made in the response. 

§ 52.11 Where will the Director publish 

notice of the availability of a request for 

proposals? 

(a) The Director will publish notice of 

the availability of the request for 

proposals at least once in the System for 

Award Management (SAM) where 

Federal business opportunities are 

electronically posted or in a similar 

publication if SAM is no longer used. 

The Director may also publish notices 

electronically on websites, including 

social media, and in local or national 

newspapers or trade magazines. 

(b) The Director will make the request 

for proposals available upon request to 

all interested persons. The Director may 

charge a reasonable fee for a printed 

request for proposals. 

§ 52.12 How long will respondents have to 

submit a response? 

The Director will define the process 

and the timeline for responding and 

entering into negotiations in the request 

for proposals. The Director will not 

consider untimely responses. 

§ 52.13 How will the Director share 

information with potential respondents after 

issuing the request for proposals? 

If the Director shares material 

information directly related to the 

request for proposals with one potential 

respondent, the Director will share the 

same information with all potential 

respondents who have advised the 

Director of their interest in the request 

for proposals. This does not apply to 

information that is publicly available. 

§ 52.14 How will the Director evaluate 

responses and select the best one? 

(a) The Director will apply the 

selection factors set forth in the request 

for proposals. The evaluation will 

include an assessment of the 

respondent’s written submittals in 

response to the request for proposals 

and also may include information 

presented by the respondent during 

request for qualifications, interview, and 

negotiation phases. During this process, 

the Director may request written 

clarifications from any respondent that 

has submitted a timely response. 

(b) The Director will use selection 

factors to evaluate responses that 

include compliance with the 

requirements in the request for 

proposals, ability to comply with the 

terms and conditions of the commercial 

services contract, demonstration that the 

respondent is a qualified entity, 

demonstrated experience and prior 

performance in operating similar 

facilities and providing similar services, 

financial capability, and the proposed 

approach and methodology to deliver 

the services specified. The Director may 

include other factors that are identified 

in the request for proposals. 

(c) The Director must determine that 

the commercial services contract issued 

to the selected respondent will meet the 

objectives of expanding, modernizing, 

and improving the condition of 

commercial facilities and commercial 

services provided to visitors in the park 

area, and that such contract is both 

necessary and appropriate for public use 

and enjoyment of the park area, and 

consistent with the preservation and 

conservation of the resources and values 

of the park area. 

§ 52.15 When will the Director reject a 

response? 

The Director will reject any response 

if the Director makes any of the 

following determinations: 

(a) The respondent is not a qualified 

entity. 

(b) The response is not responsive to 

the requirements in the request for 

proposals. A response is not responsive 

if the Director determines that it is not 

timely, does not meet the minimum 

requirements of the proposed contract, 

or does not provide the information 

required by the request for proposals. 

§ 52.16 What options does the Director 

have in accepting or rejecting a response? 

(a) If no responsive responses are 

submitted, the Director may cancel the 

solicitation. After cancellation, the 

Director may establish new commercial 

services contract requirements and issue 

a new request for proposals. 

(b) The Director reserves the right to 

accept or reject any or all responses 

received as a result of the solicitation, 

to waive minor irregularities, or to 

negotiate with any respondent, in any 

manner necessary, to serve the best 

interests of the National Park Service. 

(c) No respondent or other person or 

entity will obtain compensable or other 

legal rights as a result of an amended, 

extended, canceled, or resolicited 

request for proposals for a contract. 

§ 52.17 Does this part limit the authority of 

the Director? 

Nothing in this part may be construed 

as limiting the authority of the Director 

at any time to determine whether to 

solicit or award a contract, to cancel a 

solicitation, or to terminate a contract in 

accordance with its terms. 

§ 52.18 When must the selected 

respondent execute the contract? 

The selected respondent must execute 

the contract within the time period 

established by the Director. If the 

selected respondent fails to execute the 

contract in this period, the Director may 

select another responsive response and 

enter into negotiations with that 

respondent, or may cancel the 

solicitation and choose to resolicit the 

contract. 

§ 52.19 When may the Director award the 

commercial services contract? 

The Director may award a commercial 

services contract at any time after 

selecting the best response, the 

conclusion of negotiations, and 

execution of the contract by the 

respondent. 

§ 52.20 How will the Director solicit and 

award professional services contracts? 

The Director will advertise each 

opportunity for professional services 

contracts at least once in the System for 

Award Management (SAM) where 

Federal business opportunities are 

electronically posted or in a similar 

publication if SAM is no longer used. 

The Director may also publish notices 

electronically on websites, including 

social media, and in local or national 

newspapers or trade magazines. The 

Director will evaluate and select 

professional services providers that are 

qualified entities following the 

procedures described in the advertised 

opportunity. 

Subpart C—Contract Provisions 

§ 52.25 What is the term of a commercial 

services contract? 

A commercial services contract will 

generally be awarded for a set term or 


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Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations 5649 

for a base term plus option years, with 

the total term not to exceed 10 years. 

§ 52.26 When may the Director terminate a 

contract? 

Contracts will contain appropriate 

provisions for suspension of operations 

and for termination by the Director for 

default, including, without limitation, 

unsatisfactory performance, or 

termination when necessary to achieve 

the purposes of the VEIA. 

§ 52.27 May an operator or professional 

services provider receive leasehold 

surrender interest in capital improvements? 

No. Operators and professional 

services providers will not receive 

leasehold surrender interest in capital 

improvements, as those terms are 

defined at 54 U.S.C. 101915. 

§ 52.28 Are operator rates subject to 

approval by the Director? 

(a) The Director may require prior 

approval of rates for services provided 

to visitors under a commercial services 

contract. 

(b) Generally, the Director will 

approve rates for services provided to 

visitors based upon market demand, 

although the Director may specify rates 

or rate methods for particular services 

based on factors other than market 

demand, such as to ensure affordability 

to a broad segment of visitors. 

§ 52.29 May operators assign or encumber 

commercial services contracts? 

Commercial services contracts will 

include provisions that require the 

Director’s approval prior to any 

assignment or encumbrance of the 

contract or any rights or interests under 

the contract to another operator. 

§ 52.30 How may commercial services 

contracts be funded? 

Contract funds will be provided to the 

operators, who will be solely 

responsible for maintaining and 

expending the funds on agreed-upon 

expenses. Commercial services contracts 

will clearly define what contract-related 

funds shall be considered revenue 

collected for the NPS and will provide 

for the periodic remittance of such 

funds to the NPS. 

Subpart D—Information and Access to 

Information 

§ 52.35 What records must the operator 

and professional services provider keep 

and what access does the Director have to 

records? 

Operators and professional services 

providers must keep any records that 

the Director may require for the term of 

the contract and for five calendar years 

after the termination or expiration of the 

contract to enable the Director to 

determine that all terms of the contract 

are or were faithfully performed. The 

Director, or an authorized representative 

of the Director, may access and examine 

all pertinent records, books, documents, 

and papers of the operator, professional 

services provider, and any 

subcontractor, parent, or affiliate of the 

operator or professional services 

provider (but with respect to parents 

and affiliates, only to the extent 

necessary to confirm the validity and 

performance of any representations or 

commitments made to the Director by a 

parent or affiliate of the operator or 

professional services provider). Further 

details on records maintenance and 

access will be set forth in and governed 

by the contracts themselves. 

§ 52. 36 What access does the Comptroller 

General have to records kept by operators 

and professional services providers? 

The Comptroller General of the 

United States, or an authorized 

representative of the Comptroller 

General, may access and examine all 

pertinent records, books, documents, 

and papers of the operator, professional 

services provider, and any 

subcontractor, parent, or affiliate of the 

operator or professional services 

provider (but with respect to parents 

and affiliates, only to the extent 

necessary to confirm the validity and 

performance of any representations or 

commitments made to the Director by a 

parent or affiliate of the operator or 

professional services provider) going 

back five years from the closing date of 

the last fiscal year of the operator or 

professional service provider. 

Subpart E—Miscellaneous 

§ 52.40 Does this part affect concession 

contracts under part 51 of this chapter? 

No, nothing in this part modifies the 

terms or conditions of any existing 

concession contract or the ability of the 

Director to enter into concession 

contracts under part 51 of this chapter. 

The 1998 Act (as that term is defined in 

part 51 of this chapter) remains in effect. 

§ 52.41 Does the VEIA expire? 

Yes. The Director may not award a 

contract under the VEIA after December 

16, 2025, unless extended by law. 

However, contracts awarded under the 

VEIA may continue beyond such date, 

subject to the terms of the particular 

contract. 

§ 52.42 Severability. 

A determination that any provision of 

this part is unlawful will not affect the 

validity of the remaining provisions. 

Shannon A. Estenoz, 

Assistant Secretary for Fish and Wildlife and 

Parks. 

[FR Doc. 2025–01206 Filed 1–16–25; 8:45 am] 

BILLING CODE 4312–52–P 

POSTAL SERVICE 

39 CFR Parts 233 and 273 

Inspection Service Authority; Civil 

Monetary Penalty Inflation Adjustment 

AGENCY: Postal ServiceTM. 

ACTION: Interim final rule. 

SUMMARY: This document updates postal 

regulations by implementing inflation 

adjustments to civil monetary penalties 

that may be imposed under consumer 

protection and mailability provisions 

enforced by the Postal Service pursuant 

to the Deceptive Mail Prevention and 

Enforcement Act and the Postal 

Accountability and Enhancement Act, 

as well as the civil monetary penalty 

that may be imposed by the Postal 

Service for false claims and statements 

under the Program Fraud Civil 

Remedies Act. These adjustments are 

required under the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended by the Federal Civil 

Penalties Inflation Adjustment Act 

Improvements Act of 2015. This 

document includes the adjustments for 

2025 for the statutory civil monetary 

penalties subject to the 2015 Act and all 

necessary updates authorized by the 

2015 Act for regulatory civil monetary 

penalties. 

DATES: Effective: January 17, 2025. 

FOR FURTHER INFORMATION CONTACT: 

Steve Sultan, (202) 268–7385, 

SESultan@uspis.gov. 

SUPPLEMENTARY INFORMATION: The 

Federal Civil Penalties Inflation 

Adjustment Act Improvements Act of 

2015 (2015 Act), Public Law 114–74, 

129 Stat. 584, amended the Federal Civil 

Penalties Inflation Adjustment Act of 

1990 (1990 Act), Public Law 101–410, 

104 Stat. 890 (28 U.S.C. 2461 note), to 

improve the effectiveness of civil 

monetary penalties and to maintain 

their deterrent effect. Section 3 of the 

1990 Act specifically includes the Postal 

Service in the definition of ‘‘agency’’ 

subject to its provisions. 

Beginning in 2017, the 2015 Act 

requires the Postal Service to make an 

annual adjustment for inflation to civil 

penalties that meet the definition of 


KHAMMOND on DSK9W7S144PROD with RULES