HR 1068 IH 
(b) DECLARATION OF POLICY.—It is the policy of Congress that the de-
velopment of public accommodations, facilities, and services in System units 
shall be limited to accommodations, facilities, and services that— 
(1) are necessary and appropriate for public use and enjoyment of 
the System unit in which they are located; and 
(2) are consistent to the highest practicable degree with the preser-
vation and conservation of the resources and values of the System unit. 
§ 101913. Award of concession contracts 
In furtherance of the findings and policy stated in section 101912 of this 
title, and except as provided by this subchapter or otherwise authorized by 
law, the Secretary shall utilize concession contracts to authorize a person, 
corporation, or other entity to provide accommodations, facilities, and serv-
ices to visitors to System units. Concession contracts shall be awarded as 
follows: 
(1) COMPETITIVE SELECTION PROCESS.—Except as otherwise pro-
vided in this section, all proposed concession contracts shall be awarded 
by the Secretary to the person, corporation, or other entity submitting 
the best proposal, as determined by the Secretary through a competi-
tive selection process. The competitive process shall include simplified 
procedures for small, individually-owned entities seeking award of a 
concession contract. 
(2) SOLICITATION OF PROPOSALS.—Except as otherwise provided in 
this section, prior to awarding a new concession contract (including re-
newals or extensions of existing concession contracts) the Secretary— 
(A) shall publicly solicit proposals for the concession contract; 
and 
(B) in connection with the solicitation, shall— 
(i) prepare a prospectus and publish notice of its avail-
ability at least once in local or national newspapers or trade 
publications, by electronic means, or both, as appropriate; and 
(ii) make the prospectus available on request to all inter-
ested persons. 
(3) INFORMATION
TO
BE
INCLUDED
IN
PROSPECTUS.—The pro-
spectus shall include the following information: 
(A) The minimum requirements for the contract as set forth in 
paragraph (4). 
(B) The terms and conditions of any existing concession con-
tract relating to the services and facilities to be provided, including 
all fees and other forms of compensation provided to the United 
States by the concessioner. 
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(C) Other authorized facilities or services that may be provided 
in a proposal. 
(D) Facilities and services to be provided by the Secretary to 
the concessioner, including public access, utilities, and buildings. 
(E) An estimate of the amount of compensation due an existing 
concessioner from a new concessioner under the terms of a prior 
concession contract. 
(F) A statement as to the weight to be given to each selection 
factor identified in the prospectus and the relative importance of 
those factors in the selection process. 
(G) Other information related to the proposed concession oper-
ation that is provided to the Secretary pursuant to a concession 
contract or is otherwise available to the Secretary, as the Sec-
retary determines is necessary to allow for the submission of com-
petitive proposals. 
(H) Where applicable, a description of a preferential right to 
the renewal of the proposed concession contract held by an exist-
ing concessioner as set forth in paragraph (7). 
(4) CONSIDERATION OF PROPOSALS.— 
(A) MINIMUM REQUIREMENTS.—No proposal shall be consid-
ered that fails to meet the minimum requirements as determined 
by the Secretary. The minimum requirements shall include the fol-
lowing: 
(i) The minimum acceptable franchise fee or other forms 
of consideration to the Federal Government. 
(ii) Any facilities, services, or capital investment required 
to be provided by the concessioner. 
(iii) Measures necessary to ensure the protection, conserva-
tion, and preservation of resources of the System unit. 
(B) REJECTION OF PROPOSAL.—The Secretary shall reject any 
proposal, regardless of the franchise fee offered, if the Secretary 
determines that— 
(i) the person, corporation, or entity is not qualified or is 
not likely to provide satisfactory service; or 
(ii) the proposal is not responsive to the objectives of pro-
tecting and preserving resources of the System unit and of 
providing necessary and appropriate facilities and services to 
the public at reasonable rates. 
(C) ALL PROPOSALS FAIL TO MEET MIMIMUM REQUIREMENTS 
OR ARE REJECTED.—If all proposals submitted to the Secretary 
fail to meet the minimum requirements or are rejected by the Sec-
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retary, the Secretary shall establish new minimum contract re-
quirements and re-initiate the competitive selection process pursu-
ant to this section. 
(D) TERMS AND CONDITIONS MATERIALLY AMENDED OR NOT 
INCORPORATED IN CONTRACT.—The Secretary may not execute a 
concession contract that materially amends or does not incorporate 
the proposed terms and conditions of the concession contract as 
set forth in the applicable prospectus. If proposed material amend-
ments or changes are considered appropriate by the Secretary, the 
Secretary shall resolicit offers for the concession contract incor-
porating the material amendments or changes. 
(5) SELECTION OF THE BEST PROPOSAL.— 
(A) FACTORS IN SELECTION.—In selecting the best proposal, 
the Secretary shall consider the following principal factors: 
(i) The responsiveness of the proposal to the objectives of 
protecting, conserving, and preserving resources of the Sys-
tem unit and of providing necessary and appropriate facilities 
and services to the public at reasonable rates. 
(ii) The experience and related background of the person, 
corporation, or entity submitting the proposal, including the 
past performance and expertise of the person, corporation or 
entity in providing the same or similar facilities or services. 
(iii) The financial capability of the person, corporation, or 
entity submitting the proposal. 
(iv) The proposed franchise fee, except that consideration 
of revenue to the United States shall be subordinate to the 
objectives of protecting, conserving, and preserving resources 
of the System unit and of providing necessary and appro-
priate facilities to the public at reasonable rates. 
(B) SECONDARY FACTORS.—The Secretary may also consider 
such secondary factors as the Secretary considers appropriate. 
(C) DEVELOPMENT OF REGULATIONS.—In developing regula-
tions to implement this subchapter, the Secretary shall consider 
the extent to which plans for employment of Indians (including 
Native Alaskans) and involvement of businesses owned by Indians, 
Indian tribes, or Native Alaskans in the operation of a concession 
contract should be identified as a factor in the selection of a best 
proposal under this section. 
(6) CONGRESSIONAL NOTIFICATION.— 
(A) IN GENERAL.—The Secretary shall submit any proposed 
concession contract with anticipated annual gross receipts in ex-
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cess of $5,000,000 or a duration of more than 10 years to the 
Committee on Natural Resources of the House of Representatives 
and the Committee on Energy and Natural Resources of the Sen-
ate. 
(B) WAITING PERIOD.—The Secretary shall not award any pro-
posed concession contract to which subparagraph (A) applies until 
at least 60 days subsequent to the notification of both Commit-
tees. 
(7) PREFERENTIAL RIGHT OF RENEWAL.— 
(A) IN GENERAL.—Except as provided in subparagraph (B), the 
Secretary shall not grant a concessioner a preferential right to 
renew a concession contract, or any other form of preference to 
a concession contract. 
(B) EXCEPTION.—The Secretary shall grant a preferential right 
of renewal to an existing concessioner with respect to proposed re-
newals of the categories of concession contracts described by para-
graph (8), subject to the requirements of that paragraph. 
(C) ENTITLEMENT TO AWARD OF NEW CONTRACT.—A conces-
sioner that successfully exercises a preferential right of renewal in 
accordance with the requirements of this subchapter shall be enti-
tled to award of the proposed new concession contract to which 
the preference applies. 
(8) OUTFITTER AND GUIDE SERVICES AND SMALL CONTRACTS.— 
(A) APPLICATION.—Paragraph (7) shall apply only to the fol-
lowing: 
(i) Subject to subparagraph (B), concession contracts that 
solely authorize the provision of specialized backcountry out-
door recreation guide services that require the employment of 
specially trained and experienced guides to accompany System 
unit visitors in the backcountry so as to provide a safe and 
enjoyable experience for visitors who otherwise may not have 
the skills and equipment to engage in that activity. 
(ii) Subject to subparagraph (C), concession contracts with 
anticipated annual gross receipts under $500,000. 
(B) OUTFITTING AND GUIDE CONCESSIONERS.— 
(i) DESCRIPTION.—Outfitting and guide concessioners, 
where otherwise qualified, include concessioners that provide 
guided river running, hunting, fishing, horseback, camping, 
and mountaineering experiences. 
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(ii) WHEN ENTITLED TO PREFERENTIAL RIGHT.—An out-
fitting and guide concessioner is entitled to a preferential 
right of renewal under this subchapter only if— 
(I) the contract with the outfitting and guide conces-
sioner does not grant the concessioner any interest, in-
cluding any leasehold surrender interest or possessory in-
terest, in capital improvements on land owned by the 
United States within a System unit, other than a capital 
improvement constructed by a concessioner pursuant to 
the terms of a concession contract prior to November 13, 
1998, or constructed or owned by a concessioner or the 
concessioner’s predecessor before the subject land was 
incorporated into the System; 
(II) the Secretary determines that the concessioner 
has operated satisfactorily during the term of the con-
tract (including any extension); and 
(III) the concessioner has submitted a responsive pro-
posal for a proposed new concession contract that satis-
fies the minimum requirements established by the Sec-
retary pursuant to paragraph (4). 
(C) CONTRACT
WITH
ESTIMATED
GROSS
RECEIPTS
OF
LESS 
THAN $500,000.—A concessioner that holds a concession contract 
that the Secretary estimates will result in gross annual receipts of 
less than $500,000 if renewed shall be entitled to a preferential 
right of renewal under this subchapter if— 
(i) the Secretary has determined that the concessioner has 
operated satisfactorily during the term of the contract (in-
cluding any extension); and 
(ii) the concessioner has submitted a responsive proposal 
for a proposed new concession contract that satisfies the min-
imum requirements established by the Secretary pursuant to 
paragraph (4). 
(9) NEW OR ADDITIONAL SERVICES.—The Secretary shall not grant 
a preferential right to a concessioner to provide new or additional serv-
ices in a System unit. 
(10) AUTHORITY OF SECRETARY NOT LIMITED.—Nothing in this 
subchapter shall be construed as limiting the authority of the Secretary 
to determine whether to issue a concession contract or to establish its 
terms and conditions in furtherance of the policies expressed in this 
subchapter. 
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(11) EXCEPTIONS.—Notwithstanding this section, the Secretary may 
award, without public solicitation, the following: 
(A) TEMPORARY CONTRACT.—To avoid interruption of services 
to the public at a System unit, the Secretary may award a tem-
porary concession contract or an extension of an existing conces-
sions contract for a term not to exceed 3 years, except that prior 
to making the award, the Secretary shall take all reasonable and 
appropriate steps to consider alternatives to avoid the interruption. 
(B) CONTRACT IN EXTRAORDINARY CIRCUMSTANCES.—The Sec-
retary may award a concession contract in extraordinary cir-
cumstances where compelling and equitable considerations require 
the award of a concession contract to a particular party in the 
public interest. Award of a concession contract under this subpara-
graph shall not be made by the Secretary until at least 30 days 
after— 
(i) publication in the Federal Register of notice of the Sec-
retary’s intention to award the contract and the reasons for 
the action; and 
(ii) submission of notice to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Nat-
ural Resources of the House of Representatives. 
§ 101914. Term of concession contracts 
A concession contract entered into pursuant to this subchapter shall gen-
erally be awarded for a term of 10 years or less. The Secretary may award 
a contract for a term of up to 20 years if the Secretary determines that 
the contract terms and conditions, including the required construction of 
capital improvements, warrant a longer term. 
§ 101915. Protection of concessioner investment 
(a) DEFINITIONS.—In this section: 
(1) CAPITAL
IMPROVEMENT.—The term ‘‘capital improvement’’ 
means a structure, a fixture, or nonremovable equipment provided by 
a concessioner pursuant to the terms of a concession contract and lo-
cated on land of the United States within a System unit. 
(2) CONSUMER PRICE INDEX.—The term ‘‘Consumer Price Index’’ 
means— 
(A) the ‘‘Consumer Price Index—All Urban Consumers’’ pub-
lished by the Bureau of Labor Statistics of the Department of 
Labor; or 
(B) if the Index is not published, another regularly published 
cost-of-living index approximating the Consumer Price Index. 
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(b) LEASEHOLD SURRENDER INTEREST IN CAPITAL IMPROVEMENTS.— 
A concessioner that constructs a capital improvement on land owned by the 
United States within a System unit pursuant to a concession contract shall 
have a leasehold surrender interest in the capital improvement subject to 
the following terms and conditions: 
(1) IN GENERAL.—A concessioner shall have a leasehold surrender 
interest in each capital improvement constructed by a concessioner 
under a concession contract, consisting solely of a right to compensa-
tion for the capital improvement to the extent of the value of the con-
cessioner’s leasehold surrender interest in the capital improvement. 
(2) PLEDGE AS SECURITY.—A leasehold surrender interest may be 
pledged as security for financing of a capital improvement or the acqui-
sition of a concession contract when approved by the Secretary pursu-
ant to this subchapter. 
(3) TRANSFER AND RELINQUISHMENT OR WAIVER OF INTEREST.— 
A leasehold surrender interest shall be transferred by the concessioner 
in connection with any transfer of the concession contract and may be 
relinquished or waived by the concessioner. 
(4) LIMIT ON EXTINGUISHING OR TAKING INTEREST.—A leasehold 
surrender interest shall not be extinguished by the expiration or other 
termination of a concession contract and may not be taken for public 
use except on payment of just compensation. 
(5) VALUE OF INTEREST.—The value of a leasehold surrender inter-
est in a capital improvement shall be an amount equal to the initial 
value (construction cost of the capital improvement), increased (or de-
creased) by the same percentage increase (or decrease) as the percent-
age increase (or decrease) in the Consumer Price Index, from the date 
of making the investment in the capital improvement by the conces-
sioner to the date of payment of the value of the leasehold surrender 
interest, less depreciation of the capital improvement as evidenced by 
the condition and prospective serviceability in comparison with a new 
unit of like kind. 
(6) VALUE
OF
INTEREST
IN
CERTAIN
NEW
CONCESSION
CON-
TRACTS.— 
(A) HOW VALUE IS DETERMINED.—The Secretary may provide, 
in any new concession contract that the Secretary estimates will 
have a leasehold surrender interest of more than $10,000,000, 
that the value of any leasehold surrender interest in a capital im-
provement shall be based on— 
(i) a reduction on an annual basis, in equal portions, over 
the same number of years as the time period associated with 
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the straight line depreciation of the initial value (construction 
cost of the capital improvement), as provided by applicable 
Federal income tax laws and regulations in effect on Novem-
ber 12, 1998; or 
(ii) an alternative formula that is consistent with the objec-
tives of this subchapter. 
(B) WHEN ALTERNATIVE FORMULA MAY BE USED.—The Sec-
retary may use an alternative formula under subparagraph (A)(ii) 
only if the Secretary determines, after scrutiny of the financial 
and other circumstances involved in the particular concession con-
tract (including providing notice in the Federal Register and op-
portunity for comment), that the alternative formula is, compared 
to the standard method of determining value provided for in para-
graph (5), necessary to provide a fair return to the Federal Gov-
ernment and to foster competition for the new contract by pro-
viding a reasonable opportunity to make a profit under the new 
contract. If no responsive offers are received in response to a solic-
itation that includes the alternative formula, the concession oppor-
tunity shall be resolicited with the leasehold surrender interest 
value as described in paragraph (5). 
(7) INCREASE IN VALUE OF INTEREST.—Where a concessioner, pur-
suant to the terms of a concession contract, makes a capital improve-
ment to an existing capital improvement in which the concessioner has 
a leasehold surrender interest, the cost of the additional capital im-
provement shall be added to the then-current value of the conces-
sioner’s leasehold surrender interest. 
(c) SPECIAL RULE FOR POSSESSORY INTEREST EXISTING BEFORE NO-
VEMBER 13, 1998.— 
(1) IN GENERAL.—A concessioner that has obtained a possessory in-
terest (as defined pursuant to the Act of October 9, 1965 (known as 
the National Park Service Concessions Policy Act; Public Law 89–249, 
79 Stat. 969), as in effect on November 12, 1998) under the terms 
of a concession contract entered into before November 13, 1998, shall, 
on the expiration or termination of the concession contract, be entitled 
to receive compensation for the possessory interest improvements in the 
amount and manner as described by the concession contract. Where 
that possessory interest is not described in the existing concession con-
tract, compensation of possessory interest shall be determined in ac-
cordance with the laws in effect on November 12, 1998. 
(2) EXISTING CONCESSIONER AWARDED A NEW CONTRACT.—A con-
cessioner awarded a new concession contract to replace an existing con-
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cession contract after November 13, 1998, instead of directly receiving 
the possessory interest compensation, shall have a leasehold surrender 
interest in its existing possessory interest improvements under the 
terms of the new concession contract and shall carry over as the initial 
value of the leasehold surrender interest (instead of construction cost) 
an amount equal to the value of the existing possessory interest as of 
the termination date of the previous concession contract. In the event 
of a dispute between the concessioner and the Secretary as to the value 
of the possessory interest, the matter shall be resolved through binding 
arbitration. 
(3) NEW CONCESSIONER AWARDED A CONTRACT.—A new conces-
sioner awarded a concession contract and required to pay a prior con-
cessioner for possessory interest in prior improvements shall have a 
leasehold surrender interest in the prior improvements. The initial 
value in the leasehold surrender interest (instead of construction cost) 
shall be an amount equal to the value of the existing possessory inter-
est as of the termination date of the previous concession contract. 
(4) DE NOVO REVIEW OF VALUE DETERMINATION.—If the Secretary, 
or either party to a value determination proceeding conducted under a 
Service concession contract issued before November 13, 1998, considers 
that the value determination decision issued pursuant to the proceeding 
misinterprets or misapplies relevant contractual requirements or their 
underlying legal authority, the Secretary or either party may seek, 
within 180 days after the date of the decision, de novo review of the 
value determination decision by the United States Court of Federal 
Claims. The Court of Federal Claims may make an order affirming, 
vacating, modifying or correcting the determination decision. 
(d) TRANSITION TO SUCCESSOR CONCESSIONER.—On expiration or ter-
mination of a concession contract entered into after November 13, 1998, a 
concessioner shall be entitled under the terms of the concession contract to 
receive from the United States or a successor concessioner the value of any 
leasehold surrender interest in a capital improvement as of the date of the 
expiration or termination. A successor concessioner shall have a leasehold 
surrender interest in the capital improvement under the terms of a new con-
cession contract and the initial value of the leasehold surrender interest in 
the capital improvement (instead of construction cost) shall be the amount 
of money the new concessioner is required to pay the prior concessioner for 
its leasehold surrender interest under the terms of the prior concession con-
tract. 
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