1024-VEIA 30-day FRN (90 FR 5639)

1024-VEIA 30day FRN (Final Rule 90 FR 5639).pdf

Administration of Visitor Experience Improvements Authority (54 U.S.C. 101936)

1024-VEIA 30-day FRN (90 FR 5639)

OMB: 1024-0293

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Federal Register / Vol. 90, No. 11 / Friday, January 17, 2025 / Rules and Regulations
(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]
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DEPARTMENT OF THE INTERIOR
National Park Service
36 CFR Part 52
[NPS–WASO–39268; PPWOBSADC0;
PPMVSCS1Y.Y00000]

5639

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:
FOR FURTHER INFORMATION CONTACT:

RIN 1024–AE47

Background

Visitor Experience Improvements
Authority Contracts

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

National Park Service, Interior.
Final rule.

AGENCY:
ACTION:

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.
SUMMARY:

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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.

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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.

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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

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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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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

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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

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5641

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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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.

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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

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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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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

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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

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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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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

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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

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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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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.

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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.

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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

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• 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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(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

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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.

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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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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.

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§ 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

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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

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5647

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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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?

KHAMMOND on DSK9W7S144PROD with RULES

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

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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.

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.

§ 52.16 What options does the Director
have in accepting or rejecting a response?

Subpart C—Contract Provisions

(a) If no responsive responses are
submitted, the Director may cancel the
solicitation. After cancellation, the
Director may establish new commercial

§ 52.25 What is the term of a commercial
services contract?

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A commercial services contract will
generally be awarded for a set term or

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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.

KHAMMOND on DSK9W7S144PROD with RULES

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

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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.

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§ 52.42

5649

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
Postal ServiceTM.
Interim final rule.

AGENCY:
ACTION:

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
SUMMARY:

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