[Federal Register Volume 64, Number 244 (Tuesday, December 21, 1999)]
[Notices]
[Pages 71468-71483]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-31752]


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DEPARTMENT OF THE INTERIOR

National Park Service


Simplified Standard Concession Contracts

ACTION: Proposed National Park Service simplified standard concession 
contracts.

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SUMMARY: The National Park Service (NPS) authorizes certain business 
entities to operate concessions in areas of the national park system. 
The agreements embodying these authorizations consist primarily of 
standard language that incorporate NPS terms and conditions established 
by law and prudent contract administration. In 1998, Public Law 105-391 
was enacted which in many significant ways affects the content of 
concession contracts to be entered into after its effective date. On 
September 3, 1999, NPS published a proposed new standard concession 
contract (Category I contract) reflecting the requirements of the new 
law, as well as a variety of improvements NPS wishes to make to its 
standard concession contract, including a new organizational structure 
for the sake of clarity.
    Under this notice, NPS proposes two simplified versions of its 
proposed standard concession contract (Category II and Category III 
contracts) that will be used for smaller concession operations.
    NPS proposes the following distinctions between the three contract 
categories:
    Category I contracts will be used in situations where the 
concessioner will be required or allowed to construct or install 
capital improvements on park area lands, thereby acquiring a 
compensable interest in real property on park area lands. Category I 
contracts will also require that the concessioner perform capital 
maintenance on assigned concession facilities, as necessary, and will 
require the establishment of a maintenance reserve for this purpose.
    Category II contracts will be used in situations where a 
concessioner will operate on assigned land or in an assigned concession 
facility, but will not allow the concessioner to construct or install 
capital improvements or perform capital maintenance and, therefore, do 
not involve the concessioner's obtaining a compensable interest in real 
property located on park area lands. As an example, a Category II 
contract might be used to authorize a gift shop operation in a portion 
of a park visitor center, or a snack bar operation in an assigned 
building.
    Category III contracts will be used in situations where no lands or 
buildings are assigned to the concessioner; consequently, the 
concessioner will not be allowed to construct or install any capital 
improvements or perform capital maintenance and the concessioner will 
not obtain any compensable interest in real property located on park 
area lands. Many outfitter/guide operations will be authorized by 
Category III contracts.
    NPS, although not required to do so by law, seeks public comments 
on the proposed simplified standard concession contracts (Category II 
and Category III contracts) to assist it in the development of final 
versions as a matter of public policy.

DATES: NPS will accept written comments on the proposed simplified 
concession contracts on or before January 20, 2000.

ADDRESSES: Comments should be addressed to: Concession Program Manager, 
National Park Service, 1849 ``C'' Street, NW, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: Wendelin Mann, Concession Program, 
National Park Service, 1849 ``C'' Street, NW, Washington, D.C. 20240 
(202/565-1219).

SUPPLEMENTARY INFORMATION: Public Law 105-391, enacted on November 13, 
1998, among other matters, amended the statutory policies and 
procedures under which NPS operated its concession program. The new law 
requires adoption of new regulations governing the award, content and 
management of concession contracts. On June 30, 1999, NPS published for 
public comment proposed regulations implementing the new law. On 
September 3, 1999, NPS published for public comment a proposed new 
standard concession contract. As indicated in the September 3, 1999, 
public notice, after adoption of the new regulations and the new 
standard contract, NPS intended to develop and adopt a simplified 
(``short-form'') concession contract that will be used for smaller 
concession operations that do not involve the concessioner's obtaining 
a compensable interest in real property located on park area lands. 
However, based on its initial review of comments in response to the 
proposed regulations and standard concession contract, NPS has 
determined that it would be appropriate to develop two simplified 
contract categories and publish both simplified concession contracts 
for public comment prior to the adoption of final regulations and the 
new standard concession contract. Any changes that may be made to the 
standard concession contract as a result of public comment will be 
incorporated, to the extent applicable, in the simplified concession 
contracts. NPS plans to adopt the new regulations, the new standard 
concession contract and the simplified concession contracts 
contemporaneously after due consideration of all public comments 
received on these documents.

Category II Contract

United States Department of the Interior

National Park Service

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[Name of Area]

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[Site]

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[Type of Service]

Concession Contract No.------------------------------------------------

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[Name of Concessioner]

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[Address, including email address and phone number]

Doing Business As ____________________

Covering the Period __________ through __________

Category II--Concession Contract

Table of Contents

Identification of the Parties
Purpose and Authorities
Sec. 1. Term of Contract
Sec. 2. Definitions
Sec. 3. Services and Operations
    A. Required and Authorized Visitor Services
    B. Operation and Quality of Operation
    C. Operating Plan [OPTIONAL]
    D. Merchandise and Services
    E. Rates
    F. Impartiality as to Rates and Services
Sec. 4. Concessioner Personnel
Sec. 5. Legal, Regulatory, Policy Compliance
    A. Legal, Regulatory, Policy Compliance
    B. Notice
    C. How and Where to Send Notice
Sec. 6. Environmental and Cultural Protection
    A. Environmental Protection
    B. Protection of Cultural and Archeological Resources
Sec. 7. Interpretation of Area Resources
    A. Concessioner Obligations
    B. Director Review of Content
    C. Provision of Interpretation Not Exclusive
Sec. 8. Concession Facilities Used in Operation by Concessioner
    A. Assignment of Concession Facilities
    B. Concession Facilities Withdrawals
    C. Effect of Withdrawal
    D. Right of Entry
    E. Personal Property
    F. Condition of Concession Facilities

[[Page 71469]]

    G. Utilities
Sec. 9. Maintenance
    A. Maintenance Obligation
    B. Maintenance Plan [Optional]
Sec. 10. Fees
    A. Franchise Fee
    B. Payments Due
    C. Interest
Sec. 11. Indemnification and Insurance
    A. Indemnification
    B. Insurance in General
    C. Commercial Public Liability
    D. Property Insurance
Sec. 12. Bonds and Liens
    A. Bonds
    B. Liens
Sec. 13. Accounting Records and Reports
    A. Accounting System
    B. Annual Financial Report
    C. Other Financial Reports
Sec. 14. Other Reporting Requirements
    A. Insurance Certification
    B. Environmental Reporting
    C. Miscellaneous Reports and Data
Sec. 15. Suspension and Termination
    A. Suspension
    B. Termination
    C. Notice of Bankruptcy or Insolvency
    D. Requirements in the Event of Termination
    E. Removal of Personal Property
Sec. 16. Assignment, Sale or Encumbrance of Interests
Sec. 17. General Provisions
Sec. 18. Special Provisions [Optional]
Exhibits
    Exhibit ``A'': Nondiscrimination
    Exhibit ``B'': Assigned Land, Real Property Improvements
    Exhibit ``C'': Assigned Government Personal Property
    Exhibit ``E'': Insurance Requirements
    Exhibit ``F'': Maintenance Plan [OPTIONAL]
    Exhibit ``G'': Operating Plan [OPTIONAL]
    Exhibit ``X'': 36 CFR Part 51
[Corporation]
    This CONTRACT is made and entered into by and between the United 
States of America, acting in this matter by the Director of the 
National Park Service, through the Regional Director of the __________ 
Region, hereinafter referred to as the ``Director,'' and, a corporation 
organized and existing under the laws of the State of __________ doing 
business as hereinafter referred to as the ``Concessioner'':
[Partnership]
    This CONTRACT is made and entered into by and between the United 
States of America, acting in this matter by the Director of the 
National Park Service, through the Regional Director of the __________ 
Region, hereinafter referred to as the ``Director'', and of __________, 
__________, and __________ of, partners, doing business as, pursuant to 
a partnership agreement dated __________, with the principal place of 
business at __________, hereinafter referred to as the 
``Concessioner'':
[Sole Proprietorship]
    This Contract made and entered into by and between the United 
States of America, acting in this matter by the Director of the 
National Park Service, through the Regional Director of the __________ 
Region, hereinafter referred to as the ``Director,'' and, an individual 
of, doing business as __________, hereinafter referred to as the 
``Concessioner'':

Witnesseth

    That whereas, [Name of Park, Recreation Area, etc.] is administered 
by the Director as a unit of the national park system to conserve the 
scenery and the natural and historic objects and the wild life therein, 
and to provide for the public enjoyment of the same in such manner as 
will leave such Area unimpaired for the enjoyment of future 
generations; and
    Whereas, to accomplish these purposes, the Director has determined 
that certain visitor services are necessary and appropriate for the 
public use and enjoyment of the Area and should be provided for the 
public visiting the Area; and
    Whereas, the Director desires the Concessioner to establish and 
operate these visitor services at reasonable rates under the 
supervision and regulation of the Director;
    Now, therefore, pursuant to the authority contained in the Acts of 
August 25, 1916 (16 U.S.C. 1, 2-4), and November 13, 1998 (P.L. 105-
391), and other laws that supplement and amend the Acts, the Director 
and the Concessioner agree as follows:

Sec. 1. Term of Contract

    This Concession Contract No. __________ (``CONTRACT'') shall be 
effective as of __________, and shall be for the term of __________ 
(____) years from __________, 20____.

Sec. 2. Definitions

    The following terms used in this CONTRACT will have the following 
meanings, which apply to both the singular and the plural forms of the 
defined terms:
    (a) ``Applicable Laws'' means the laws of Congress governing the 
Area, including, but not limited to, the rules, regulations, 
requirements and policies promulgated under those laws, whether now in 
force, or amended, enacted or promulgated in the future, including, 
without limitation, federal, state and local laws, rules, regulations, 
requirements and policies governing nondiscrimination, protection of 
the environment and/or protection of public health and safety.
    (b) ``Area'' means the property within the boundaries of [Name of 
Park Unit].
    (c) ``Capital Improvement'' shall have the meaning set forth in 36 
CFR Part 51 as of the effective date of this CONTRACT.
    (d) ``Concession Facilities'' shall mean all Area lands assigned to 
the Concessioner under this CONTRACT, all real property improvements 
assigned to the Concessioner under this Contract, including without 
limitation all government personal property assigned to the 
Concessioner under this CONTRACT. The United States retains title and 
ownership to all Concession Facilities.
    (e) ``Director'' means the Director of the National Park Service 
and his duly authorized representatives unless otherwise indicated.
    (f) ``Exhibit'' or ``Exhibits'' shall mean the various exhibits, 
which are attached to this CONTRACT, each, of which is hereby made a 
part of this CONTRACT.
    (g) ``Gross Receipts'' means the total amount received or realized 
by, or accruing to, the Concessioner from all sales for cash or credit, 
of services, accommodations, materials, and other merchandise made 
pursuant to the rights granted by this CONTRACT, including gross 
receipts of subconcessioners as herein defined, commissions earned on 
contracts or agreements with other persons or companies operating in 
the Area, and gross receipts earned from electronic media sales, but 
excluding:
    (i) Intracompany earnings on account of charges to other 
departments of the operation (such as laundry);
    (ii) Charges for employees' meals, lodgings, and transportation;
    (iii) Cash discounts on purchases;
    (iv) Cash discounts on sales;
    (v) Returned sales and allowances;
    (vi) Interest on money loaned or in bank accounts;
    (vii) Income from investments;
    (viii) Income from subsidiary companies outside of the Area;
    (ix) Sale of property other than that purchased in the regular 
course of business for the purpose of resale;
    (x) Sales and excise taxes that are added as separate charges to 
approved sales prices, gasoline taxes, fishing license fees, and 
postage stamps, provided that the amount excluded shall not exceed the 
amount actually due or paid government agencies;
    (xi) Receipts from the sale of handcrafts that have been approved 
for sale by the Director as constituting authentic American Indian, 
Alaskan Native, Native Samoan, or Native Hawaiian handicrafts.
    All monies paid into coin operated devices, except telephones, 
whether

[[Page 71470]]

provided by; the Concessioner or by others, shall be included in gross 
receipts. However, only revenues actually received by the Concessioner 
from coin-operated telephones shall be included in gross receipts. All 
revenues received from charges for in-room telephone or computer access 
shall be included in gross receipts.
    (h) ``Gross receipts of subconcessioners'' means the total amount 
received or realized by, or accruing to, subconcessioners from all 
sources, as a result of the exercise of the rights conferred by 
subconcession contracts hereunder without allowances, exclusions or 
deductions of any kind or nature whatsoever.
    (i) ``Leasehold Surrender Interest'' shall have the meaning set 
forth in 36 CFR Part 51 as of the effective date of this CONTRACT.
    (j) ``Real Property Improvements'' means real property other than 
land, including, but not limited to, capital improvements.
    (k) ``Superintendent'' means the manager of the Area.
    (l) ``Visitor services'' means the accommodations, facilities and 
services that the Concessioner is required and authorized to provide by 
section 3(a) of this CONTRACT.

Sec. 3. Services and Operations

(a) Required and Authorized Visitor Services
    During the term of this CONTRACT, the Director requires and 
authorizes the Concessioner to provide the following visitor services 
for the public within the Area:
    (1) Required Visitor Services. The Concessioner is required to 
provide the following visitor services during the term of this 
CONTRACT:
    [Provide detailed description of required services. Broad 
generalizations such as ``any and all facilities and services customary 
in such operations'' or ``such additional facilities and services as 
may be required'' are not to be used. A provision stating ``The 
Concessioner may provide services incidental to the operations 
authorized hereunder at the request and written approval of the 
Director'' is acceptable.]
    (2) Authorized Visitor Services. The Concessioner is authorized but 
not required to provide the following visitor services during the term 
of this CONTRACT:
    [Provide detailed description of authorized services.]
(b) Operation and Quality of Operation
    The Concessioner shall provide, operate and maintain the required 
and authorized visitor services and any related support facilities and 
services in accordance with this CONTRACT to such an extent and in a 
manner considered satisfactory by the Director. The Concessioner shall 
provide the plant, personnel, equipment, goods, and commodities 
necessary for providing, operating and maintaining the required and 
authorized visitor services in accordance with this CONTRACT. The 
Concessioner's authority to provide visitor services under the terms of 
this CONTRACT is non-exclusive.
(c) Operating Plan [OPTIONAL--This section may be deleted and operating 
requirements incorporated under Section 18, Special Provisions.]
    The Director, acting through the Superintendent, shall establish 
and revise, as necessary, specific requirements for the operations of 
the Concessioner under this CONTRACT in the form of an Operating Plan 
(including, without limitation, a risk management program, that must be 
adhered to by the Concessioner). The initial Operating Plan is attached 
to this CONTRACT as Exhibit ``G.'' The Director in his discretion, 
after consultation with the Concessioner, may make modifications to the 
initial Operating Plan provided that these modifications shall not be 
inconsistent with the terms and conditions of the main body of this 
CONTRACT.
(d) Merchandise and Services
    (1) The Director reserves the right to determine and control the 
nature, type and quality of the visitor services described in this 
CONTRACT, including, but not limited to, the nature, type, and quality 
of merchandise, if any, to be sold or provided by the Concessioner 
within the Area.
    (2) All material, regardless of media format (i.e. printed, 
electronic, broadcast media), provided to the public by the 
Concessioner, including promotional material, must be approved in 
writing by the Director prior to use. All such material will identify 
the Concessioner as an authorized Concessioner of the National Park 
Service, Department of the Interior.
    (3) [OPTIONAL--To be used only if the concessioner is authorized to 
sell merchandise.] The Concessioner, where applicable, will develop and 
implement a plan satisfactory to the Director that will assure that all 
gift merchandise, if any, to be sold or provided reflects the purpose 
and significance of the Area, including, but not limited to, 
merchandise that reflects the conservation of the Area's resources or 
the Area's geology, wildlife, plant life, archeology, local Native 
American culture, local ethnic culture, and historic significance.
(e) Rates
    All rates and charges to the public by the Concessioner for visitor 
services shall be reasonable and appropriate for the type and quality 
of facilities and/or services required and/or authorized under this 
CONTRACT. The Concessioner's rates and charges to the public must be 
approved by the Director in accordance with rate approval procedures 
and guidelines promulgated by the Director from time to time.
(f) Impartiality as to Rates and Services
    (1) In providing visitor services, the Concessioner must require 
its employees to observe a strict impartiality as to rates and services 
in all circumstances. The Concessioner shall comply with all Applicable 
Laws relating to nondiscrimination in providing visitor services to the 
public including, without limitation, those set forth in Exhibit ``A.''
    (2) The Concessioner may grant complimentary or reduced rates under 
such circumstances as are customary in businesses of the character 
conducted under this CONTRACT. However, the Director reserves the right 
to review and modify Concessioner's complimentary or reduced rate 
policies and practices.
    (3) The Concessioner will provide Federal employees conducting 
official business reduced rates for lodging, essential transportation 
and other specified services necessary for conducting official business 
in accordance with guidelines established by the Director. 
Complimentary or reduced rates and charges shall otherwise not be 
provided to Federal employees by the Concessioner except to the extent 
that they are equally available to the general public.

Sec. 4. Concessioner Personnel

    (a) The Concessioner shall provide all personnel necessary to 
provide the visitor services required and authorized by this CONTRACT.
    (b) The Concessioner shall comply with all Applicable Laws relating 
to employment and employment conditions, including, without limitation, 
those identified in Exhibit ``A.''
    (c) The Concessioner shall ensure that its employees are hospitable 
and exercise courtesy and consideration in their relations with the 
public. The Concessioner shall have its employees who come in direct 
contact with the public, so far as practicable, wear a uniform or badge 
by which they may be

[[Page 71471]]

identified as the employees of the Concessioner.
    (d) The Concessioner shall establish pre-employment screening, 
hiring, training, employment, termination and other policies and 
procedures for the purpose of providing visitor services through its 
employees in an efficient and effective manner and for the purpose of 
maintaining a healthful, law abiding, and safe working environment for 
its employees. The Concessioner shall conduct appropriate background 
reviews of applicants for employment to assure that they conform to the 
hiring policies established by the Concessioner.
    (e) The Concessioner shall hire, to the greatest extent possible, 
people who are both interested in serving the public in a national park 
environment and interested in being positive contributors to the park's 
purpose.
    (f) The Concessioner shall ensure that its employees are provided 
the training needed to provide quality visitor services and to maintain 
up-to-date job skills.
    (g) The Concessioner shall review the conduct of any of its 
employees whose action or activities are considered by the Concessioner 
or the Director to be inconsistent with the proper administration of 
the Area and enjoyment and protection of visitors and shall take such 
actions as are necessary to fully correct the situation.
    (h) The Concessioner shall maintain, to the greatest extent 
possible, a drug free environment, both in the workplace and in any 
employee housing within the Area.
    (i) The Concessioner shall publish a statement notifying employees 
that the unlawful manufacture, distribution, dispensing, possession, or 
use of a controlled substance is prohibited in the workplace and in the 
Area, and specifying the actions that will be taken against employees 
for violating this prohibition. In addition, the Concessioner shall 
establish a drug-free awareness program to inform employees about the 
danger of drug abuse in the workplace and the Area, the availability of 
drug counseling, rehabilitation and employee assistance programs, and 
the Concessioner's policy of maintaining a drug-free environment both 
in the workplace and in the Area.
    (j) The Concessioner shall take appropriate personnel action, up to 
and including termination or requiring satisfactory participation in a 
drug abuse or rehabilitation program which is approved by a Federal, 
State, or local health, law enforcement or other appropriate agency, 
for any employee that violates the prohibition on the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance.

Sec. 5. Legal, Regulatory, Policy Compliance

(a) Legal, Regulatory and Policy Compliance
    This CONTRACT, operations thereunder by the Concessioner and the 
administration of it by the Director shall be subject to all Applicable 
Laws. The Concessioner must comply with all Applicable Laws in 
fulfilling its obligations under this CONTRACT at the Concessioner's 
sole cost and expense. Certain Applicable Laws governing protection of 
the environment are further described in this Contract. Certain 
Applicable Laws relating to nondiscrimination in employment and 
providing accessible facilities and services to the public are further 
described in this CONTRACT.
(b) Notice
    The Concessioner shall give the Director immediate written notice 
of any violation of Applicable Laws and, at its sole cost and expense, 
must promptly rectify any such violation.
(c) How and Where To Send Notice
    All notices required by this CONTRACT, shall be in writing and 
shall be served on the parties at the following addresses. The mailing 
of a notice by registered or certified mail, return receipt requested, 
shall be sufficient service. Notices sent to the Director shall be sent 
to the following address:

Superintendent
Park name
Address
Attention:

    Notices sent to the Concessioner shall be sent to the following 
address:

Concessioner
Address
Attention:

Sec. 6. Environmental and Cultural Protection

(a) Environmental Protection
    (1) In addition to complying with all Applicable Laws pertaining to 
the protection of natural resources within the area, the Concessioner 
will conduct its operation, construction, maintenance, acquisition, and 
provision of visitor services in a manner that prevents or reduces 
environmental degradation and that promotes the use of environmentally 
beneficial products. The Concessioner will develop, pursuant to 
guidelines provided by the Director, and carry out, to the satisfaction 
of the Director, a documented environmental monitoring program or 
programs to ensure that park resources affected by concessioner 
activities under this CONTRACT are not unduly impaired. The 
Concessioner shall be financially responsible for environmental audits 
that may be required by the Director for each three-year period of this 
CONTRACT.
    (2) The Concessioner shall obtain the Director's approval prior to 
using any chemicals, pesticides, any hazardous or toxic substance, 
material, or waste of any kind, including building materials such as 
asbestos, or any contaminant, pollutant, petroleum, petroleum product 
or petroleum by-product.
    (3) The Concessioner shall monitor, test, maintain, repair, 
upgrade, replace, remove, or mitigate, in accordance with Applicable 
Laws and in accordance with the requirements of the Director:
    (i) Any discharge, release or threatened release (whether solid, 
liquid or gaseous in nature) of any hazardous or toxic substance, 
material, or waste of any kind, including building materials such as 
asbestos, or any contaminant, pollutant, petroleum, petroleum product 
or petroleum by-product on or to the Area, including soil, surface 
water or groundwater;
    (ii) Any materials, equipment, and facilities associated with such 
discharge, release or threatened release; or
    (iii) any materials, equipment and facilities used in the handling, 
storage, disposal, transport or other use of any such hazardous or 
toxic substance, material, or waste of any kind, including building 
materials such as asbestos, or any contaminant, pollutant, petroleum, 
petroleum product or petroleum by-product.
    (4) The Concessioner shall timely contact, notify and/or otherwise 
confer with appropriate federal, state and/or local agencies with 
respect to any reporting obligation arising out of Concessioner's 
operations under this CONTRACT and the Concessioner shall 
simultaneously provide notice of such contact to the Director and allow 
the Director the opportunity to participate in any such proceedings.
    (5) The Concessioner shall give the Director immediate notice of 
any discharge, release or threatened release (whether solid, liquid or 
gaseous in nature) of any hazardous or toxic substance, material, or 
waste of any kind, including building materials such as asbestos, or 
any contaminant, pollutant, petroleum, petroleum product or petroleum 
by-product.

[[Page 71472]]

    (6) The Concessioner shall give the Director immediate written 
notice of any threatened or actual notice of violation of any federal, 
state or local law, rule, regulation, requirement or policy relating to 
or governing the use, handling, storage, disposal, transport, presence, 
acceptable concentration, or remediation of any hazardous or toxic 
substance, material, or waste of any kind, including building materials 
such as asbestos, or any contaminant, pollutant, petroleum, petroleum 
product or petroleum by-product received by Concessioner.
    (7) The Concessioner, at its sole cost and expense, shall promptly 
rectify any discharge or release as set forth in this section or any 
threatened or actual violation as set forth in this section, including, 
but not limited to, payment of any fines or penalties imposed thereon.
    (8) The Concessioner shall indemnify the United States in 
accordance with section 12 of the Contract from losses, damages or 
judgements (including, without limitation, fines and penalties) and 
expenses (including, without limitation, attorneys fees and experts 
fees) arising out of the activities of the Concessioner pursuant to 
this section. Such indemnification shall survive termination of this 
CONTRACT.
    (9) If the Concessioner does not promptly rectify the discharge or 
release (whether solid, liquid or gaseous in nature) of any hazardous 
or toxic substance, material, or waste of any kind, including building 
materials such as asbestos, or any contaminant, pollutant, petroleum, 
petroleum product or petroleum by-product, the Director may, in its 
sole discretion and after notice to Concessioner, take any such action 
the Director deems necessary to minimize, remediate, or otherwise clean 
up such release or discharge, and recover any costs associated with 
such action from the Concessioner upon demand.
    (10) Even if not specifically required by Applicable Laws, the 
Concessioner shall comply with directives of the Director to clean up 
or remove any materials, product or by-product used, handled, stored, 
disposed, transported onto or into the Area by the Concessioner to 
ensure that the Area remains in good condition.
    (11) The Concessioner shall be responsible for managing weeds, 
harmful insects, rats, mice and other pests on all lands and 
improvements assigned to the Concessioner under this CONTRACT. All such 
weed and pest management activities shall be in accordance with 
guidelines established by the Director.
(b) Protection of Cultural and Archeological Resources
    The Concessioner shall ensure that any protected sites and 
archeological resources within the Area are not disturbed or damaged by 
the Concessioner, including the Concessioner's employees, 
subcontractors or agents, except in accordance with Applicable Laws, 
and only with the prior approval of the Director. Discoveries of any 
archeological resources by Concessioner shall be promptly reported to 
the Director. The Concessioner shall cease work or other disturbance 
which may impact any protected site or archeological resource until the 
Director grants approval, upon such terms and conditions as the 
Director deems necessary, to continue such work or other disturbance.

Sec. 7. Interpretation of Area Resources

(a) Concessioner Obligations
    (1) The Concessioner shall provide all visitor services in a manner 
that is consistent with and supportive of the interpretive themes, 
goals and objectives of the Area.
    (2) The Concessioner may assist in Area interpretation at the 
request of the Director to enhance visitor enjoyment of the Area. Any 
additional visitor services that may result from this assistance must 
be recognized in writing through written amendment of Section 3 of this 
CONTRACT.
(b) Director Review of Content
    The Concessioner must submit the proposed content of any 
interpretive programs, exhibits, materials or displays to the Director 
for review and approval prior to offering such programs, exhibits or 
displays to Area visitors.
(c) Provision of Interpretation Not Exclusive
    Notwithstanding any provision of this CONTRACT to the contrary, the 
Director retains the right to provide Area interpretation, including 
without limitation, the conduct of interpretive programs and the sale 
of interpretive materials, directly or though cooperative or other 
agreements with third parties, as the Director determines to be 
necessary or appropriate.

Sec. 8. Concession Facilities Used in Operations by Concessioner

(a) Assignment of Concession Facilities
    (1) The Director hereby assigns Concession Facilities as described 
in Exhibit B to the Concessioner for the purposes of this CONTRACT. The 
Concessioner shall not be authorized to construct any Capital 
Improvements upon Area lands. The Concessioner shall not obtain a 
Leasehold Surrender Interest or other compensable interest in Capital 
Improvements constructed or installed in violation of this CONTRACT.
    (2) The Director shall from time to time amend Exhibit B to reflect 
changes in Concession Facilities assigned to Concessioner.
(b) Concession Facilities Withdrawals
    The Director may withdraw all or portions of these Concession 
Facilities assignments at any time during the term of this CONTRACT if:
    (1) The withdrawal is for the purpose of enhancing or protecting 
Area resources or visitor enjoyment or safety;
    (2) The operations utilizing the assigned Concession Facilities 
have been terminated or suspended by the Director; or
    (3) Land assigned to the Concessioner is no longer necessary for 
the concession operation.
(c) Effect of Withdrawal
    Any permanent withdrawal of assigned Concession Facilities which 
the Director considers as essential for the Concessioner to provide the 
visitor services required by this CONTRACT will be treated by the 
Director as a termination of this Contract pursuant to Section 16. No 
compensation is due the Concessioner in these circumstances.
(d) Right of Entry
    The Director shall have the right at any time to enter upon or into 
the Concession Facilities assigned to the Concessioner under this 
CONTRACT for any purpose he may deem necessary for the administration 
of the Area.
(e) Personal Property
    (1) Personal Property Provided by the Concessioner. The 
Concessioner shall provide all personal property, including removable 
equipment, furniture and goods, necessary for its operations under this 
CONTRACT.
    (2) Personal Property Provided by the Government. The Director may 
provide certain items of government personal property and equipment for 
the Concessioner's use in the performance of this CONTRACT. The 
Director hereby assigns government personal property and equipment 
listed in Exhibit C to the Concessioner as of the effective date of 
this CONTRACT. This Exhibit C will be modified from time to time by the 
Director as items may be withdrawn or additional items added. The 
Concessioner shall be accountable to the Director for the government 
personal property and equipment assigned to it

[[Page 71473]]

and shall be responsible for maintaining the property and equipment as 
necessary to keep it in good and operable condition. If the property 
ceases to be serviceable, it shall be returned to the Director for 
disposition.
(f) Condition of Concession Facilities
    Concessioner has inspected the Concession Facilities, including any 
government personal property, is thoroughly acquainted with their 
condition, and accepts the Concession Facilities ``as is.''
(g) Utilities
    (1) The Director may provide utilities to the Concessioner for use 
in connection with the operations required and/or authorized under this 
CONTRACT when available at rates to be fixed by the Director under 
applicable guidelines.
    (2) If the Director does not provide these utilities, the 
Concessioner shall, with the written approval of the Director and under 
any requirements that the Director shall prescribe, secure necessary 
utilities at its own expense from sources outside the Area.

Sec. 9. Maintenance

(a) Maintenance Obligation
    The Concessioner shall be solely responsible for maintenance, 
repairs, housekeeping, and groundskeeping for all Concession Facilities 
to the satisfaction of the Director.
(b) Maintenance Plan [OPTIONAL--This section may be deleted and 
maintenance requirements incorporated under Section 18, Special 
Provisions.]
    For these purposes, the Director, acting through the 
Superintendent, shall undertake appropriate inspections, and, after 
consultation with the Concessioner, shall establish and revise, as 
necessary, a Maintenance Plan consisting of specific maintenance 
requirements which shall be adhered to by the Concessioner. The initial 
Maintenance Plan is set forth in Exhibit F. The Director in his 
discretion may modify the Maintenance Plan from time to time after 
consultation with the Concessioner. Such modifications shall not be 
inconsistent with the terms and conditions of the main body of this 
CONTRACT.

Sec. 10. Fees

(a) Franchise Fee
    (1) For the term of this CONTRACT, the Concessioner shall pay to 
the Director for the privileges granted under this CONTRACT a franchise 
fee equal to __________ Percent (__________ %) of the Concessioner`s 
Gross Receipts for the preceding year or portion of a year.
    (2) The Concessioner agrees that this franchise fee is consistent 
with the probable value of the privileges granted by this CONTRACT as 
defined in this section.
    (3) The Concessioner shall have no right to an adjustment of the 
fees except as provided below. The Concessioner shall have no right to 
waiver of the franchise fee.
(b) Payments Due
    (1) The franchise fee shall be due on a monthly basis at the end of 
each month and shall be paid by the Concessioner in such a manner that 
the Director shall receive payment within fifteen (15) days after the 
last day of each month that the Concessioner operates. This monthly 
payment shall include the franchise fee equal to the specified 
percentage of gross receipts for the preceding month.
    (2) The Concessioner shall pay any additional fee amounts due at 
the end of the operating year as a result of adjustments at the time of 
submission of the Concessioner's Annual Financial Report. Overpayments 
shall be offset against the following year's fees.
    (3) All franchise fee payments consisting of $10,000 or more, shall 
be deposited electronically by the Concessioner using the Treasury 
Financial Communications System.
(c) Interest
    An interest charge will be assessed on overdue amounts for each 
thirty (30) day period, or portion thereof, that payment is delayed 
beyond the fifteen (15)-day period provided for above. The percent of 
interest charged will be based on the current value of funds to the 
United States Treasury as published quarterly in the Treasury Fiscal 
Requirements Manual. The Director may also impose penalties for late 
payment to the extent authorized by Applicable Law.

Sec. 11. Indemnification and Insurance

(a) Indemnification
    The Concessioner agrees to assume liability for and does hereby 
agree to save, hold harmless, protect, defend and indemnify the United 
States of America, its agents and employees from and against any and 
all liabilities, obligations, losses, damages or judgments (including 
without limitation penalties and fines), claims, actions, suits, costs 
and expenses (including without limitation attorneys fees and experts 
fees) of any kind and nature whatsoever on account of fire or other 
peril, bodily injury, death or property damage, or claims for bodily 
injury, death or property damage of any nature whatsoever, and by 
whomsoever made, in any way relating to or arising out of the 
activities of the Concessioner, his employees, subcontractors or agents 
under this CONTRACT. This indemnification shall survive the termination 
or expiration of this Contract.
(b) Insurance in General
    (1) The Concessioner shall obtain and maintain during the entire 
term of this CONTRACT at its sole cost and expense, the types and 
amounts of insurance coverage necessary to fulfill the obligations of 
this CONTRACT. The Director shall approve the types and amounts of 
insurance coverage purchased by the Concessioner.
    (2) The Director will not be responsible for any omissions or 
inadequacies of insurance coverages and amounts in the event the 
insurance purchased by the Concessioner proves to be inadequate or 
otherwise insufficient for any reason whatsoever.
    (3) At the request of the Director, the Concessioner shall at the 
time insurance is first purchased and annually, thereafter, provide the 
Director with a Certificate of Insurance that accurately details the 
conditions of the policy as evidence of compliance with this section. 
The Concessioner shall provide the Director thirty (30) days advance 
written notice of any material change in the Concessioner's insurance 
program hereunder.
(c) Commercial Public Liability
    (1) The Concessioner shall provide commercial general liability 
insurance against claims arising out of or resulting from the acts or 
omissions of the Concessioner or its employees in carrying out the 
activities and operations required and/or authorized under this 
CONTRACT.
    (2) This insurance shall be in the amount commensurate with the 
degree of risk and the scope and size of the activities required and/or 
authorized under this CONTRACT, as more specifically set forth in 
Exhibit E. Furthermore, the commercial general liability package shall 
provide the coverages and limits described in Exhibit E.
    (3) All liability policies shall specify that the insurance company 
shall have no right of subrogation against the United States of America 
and shall provide that the United States of America is named an 
additional insured.

[[Page 71474]]

    (4) From time to time, as conditions in the insurance industry 
warrant, the Director may, in his discretion, modify Exhibit E to 
revise the minimum required limits or to require additional types of 
insurance.
(d) Property Insurance
    (1) In the event of damage or destruction, the Concessioner will 
repair or replace those Concession Facilities and other buildings, 
structures, equipment, furnishings, betterments, improvements and 
merchandise utilized by the Concessioner in the performance of the 
Concessioner's obligations under this CONTRACT.
    (2) For this purpose, the Concessioner shall provide fire and 
extended insurance coverage on Concession Facilities in amounts that 
the Director may require during the term of the Contract. The values 
currently in effect are set forth in Exhibit E. This Exhibit will be 
revised at least every three (3) years, or earlier if there is a 
substantial change in value of Concession Facilities.
    (3) Commercial property insurance shall provide for the 
Concessioner and the United States of America to be named insured as 
their interests may appear.
    (4) In the event of loss, the Concessioner shall use all proceeds 
of such insurance to repair, rebuild, restore or replace Concession 
Facilities, equipment, furnishings and other personal property 
hereunder, as directed by the Director. Policies may not contain 
provisions limiting insurance proceeds to in situ replacement. The lien 
provision of Section 13 shall apply to such insurance proceeds.
    (5) Insurance policies that cover Concession Facilities shall 
contain a loss payable clause approved by the Director which requires 
insurance proceeds to be paid directly to the Concessioner without 
requiring endorsement by the United States. The use of insurance 
proceeds for repair or replacement of Concession Facilities will not 
alter their character as properties of the United States and, 
notwithstanding any provision of this CONTRACT to the contrary, the 
Concessioner shall gain no ownership, Leasehold Surrender Interest or 
other compensable interest as a result of the use of these insurance 
proceeds.
    (6) The commercial property package shall include the coverages and 
amounts described in Exhibit E.

Sec. 12. Bonds and Liens

(a) Bonds
    The Director may require the Concessioner to furnish appropriate 
forms of bonds acceptable to the Director conditioned upon faithful 
performance of its obligations under this CONTRACT,in such form and in 
such amount as the Director may deem adequate.
(b) Lien
    As additional security for the faithful performance by the 
Concessioner of its obligations under this Contract, and the payment to 
the Government of all damages or claims that may result from the 
Concessioner's failure to observe any such obligations, the Government 
shall have at all times the first lien on all assets of the 
Concessioner within the Area, including, but not limited to, all 
personal property of the Concessioner used in performance of the 
CONTRACT hereunder.

Sec. 13. Accounting Records and Reports

(a) Accounting System
    (1) The Concessioner shall maintain an accounting system under 
which its accounts can be readily identified with its system of 
accounts classification. Such accounting system shall be capable of 
providing the information required by this CONTRACT. The Concessioner's 
system of accounts classification shall be directly related to the 
Concessioner Annual Financial Report Form issued by the Director.
    (2) If the Concessioner's annual gross receipts are $250,000 or 
more, the Concessioner must use the accrual accounting method.
    (3) In computing net profits for any purposes of this CONTRACT, the 
Concessioner shall keep its account in such manner that there can be no 
diversion or concealment of profits or expenses in the operations 
authorized hereunder by means of arrangements for the procurement of 
equipment, merchandise, supplies or services from sources controlled by 
or under common ownership with the Concessioner or by any other device.
(b) Annual Financial Report
    (1) The Concessioner shall submit annually as soon as possible but 
not later than ninety (90) days after the last day of its fiscal year a 
financial statement for the preceding fiscal year or portion of a year 
as prescribed by the Director (``Concessioner Annual Financial 
Report'').
    (2) If the annual gross receipts of the Concessioner are in excess 
of $1,000,000, the financial statements shall be audited by an 
independent Certified Public Accountant in accordance with the 
Generally Accepted Auditing Standards (GAAS) and procedures promulgated 
by the American Institute of Certified Public Accountants.
    (3) If annual gross receipts are between $250,000, and $1,000,000, 
the financial statements shall be reviewed by an independent Certified 
Public Accountant in accordance with the Generally Accepted Auditing 
Standards (GAAS) and procedures promulgated by the American Institute 
of Certified Public Accountants.
    (4) If annual gross receipts are less than $250,000, the financial 
statements may be prepared without involvement by an independent 
Certified Public Accountant, unless otherwise directed by the Director.
(c) Other Financial Reports
    (1) Balance Sheet. Within ninety (90) days of the execution of this 
CONTRACT or its effective date, whichever is later, the Concessioner 
shall submit to the Director a balance sheet as of the beginning date 
of the term of this CONTRACT. The balance sheet shall be audited or 
reviewed, as determined by the gross receipts, by an independent 
Certified Public Accountant.

Sec. 14. Other Reporting Requirements

    The following describes certain other reports required under this 
CONTRACT:
(a) Insurance Certification
    As specified in Section 12, at the time insurance is first 
purchased, and annually thereafter, the Concessioner shall provide the 
Director with a Certificate of Insurance for all insurance coverages 
related to its operations under this CONTRACT. The Concessioner shall 
give the Director thirty (30) days advance written notice of any 
material change in its insurance program.
(b) Environmental Reporting
    The Concessioner shall submit a quarterly report on any matters 
related to the Concessioner's environmental compliance requirements 
under this CONTRACT.
(c) Miscellaneous Reports and Data
    The Director from time to time may require the Concessioner to 
submit other reports and data regarding its performance under the 
CONTRACT or otherwise, including, but not limited to, operational 
information.

[[Page 71475]]

Sec. 15. Suspension and Termination

(a) Suspension
    The Director may temporarily suspend operations under this CONTRACT 
in whole or in part when necessary for administrative purposes or to 
enhance or protect Area resources, visitor enjoyment or safety. No 
compensation of any nature shall be due the Concessioner in the event 
of a suspension of operations, including, but not limited to, 
compensation for losses based on lost income, profit, or the necessity 
to make expenditures as a result of the suspension.
(b) Termination
    (1) The Director may terminate this CONTRACT in whole or part at 
any time when necessary for the purpose of enhancing or protecting Area 
resources or visitor enjoyment or safety.
    (2) The Director may terminate this CONTRACT in whole or part for 
default if the Director determines that the Concessioner has breached 
any requirement of this CONTRACT, including, but not limited to, the 
requirement to maintain and operate visitor services to the 
satisfaction of the Director, the requirement to provide only visitor 
services required or authorized by the Director, the requirement to pay 
the established franchise fee, and the requirement to comply with 
Applicable Laws.
    (3) In the event of a breach of the CONTRACT, the Director will 
provide the Concessioner an opportunity to cure by providing written 
notice to the Concessioner of the breach. In the event of a monetary 
breach, the Director will give the Concessioner a fifteen (15) day 
period to cure the breach. If the breach is not cured within that 
period, then the Director may terminate the CONTRACT for default. In 
the event of a nonmonetary breach, if the Director considers that the 
nature of the breach so permits, the Director will give the 
Concessioner thirty (30) days to cure the breach or to provide a plan, 
to the satisfaction of the Director in his sole discretion, to cure the 
breach over a specified period of time. If the breach is not cured 
within this specified period of time, the Director may terminate the 
CONTRACT for default. Notwithstanding this provision, repeated breaches 
of the same nature shall be grounds for termination for default without 
a cure period. In the event of a breach of any nature, the Director may 
suspend the Concessioner's operations as appropriate in accordance with 
Section 16(a).
    (4) The Director may terminate this CONTRACT upon the filing or the 
execution of a petition in bankruptcy by or against the Concessioner, a 
petition seeking relief of the same or different kind under any 
provision of the Bankruptcy Act or its successor, an assignment by the 
Concessioner for the benefit of creditors, a petition or other 
proceeding against the Concessioner for the appointment of a trustee, 
receiver or liquidator, or the taking by any person or entity of the 
rights granted by this CONTRACT or any part thereof upon execution, 
attachment or other process of law or equity. The Director may 
terminate this CONTRACT if the Director determines that the 
Concessioner is unable to perform the terms of this CONTRACT due to 
bankruptcy or insolvency.
    (5) Termination of this CONTRACT for any reason shall be by written 
notice to the Concessioner.
(c) Notice of Bankruptcy or Insolvency
    The Concessioner must give the Director notice fifteen (15) days 
prior to filing any petition in bankruptcy, filing any petition seeking 
relief of the same or different kind under any provision of the 
Bankruptcy Act or its successor, or making any assignment for the 
benefit of creditors. The Concessioner must also give the Director 
immediate notice of any petition or other proceeding against the 
Concessioner for the appointment of a trustee, receiver, or liquidator, 
or, the taking by any person or entity of the rights granted by this 
CONTRACT or any part thereof upon execution, attachment or other 
process of law or equity. For purposes of the bankruptcy statutes, this 
CONTRACT is not a lease, but is an executory contract exempt from 
inclusion in assets of Concessioner pursuant to 11 U.S.C. 1135.
(d) Requirements in the Event of Termination
    (1) In the event of termination of this CONTRACT by the Director 
for any reason, no compensation of any nature shall be due the 
Concessioner including, but not limited to, compensation for losses 
based on lost income, profit, or the necessity to make expenditures as 
a result of the termination.
    (2) Upon termination of this CONTRACT for any reason, and except as 
otherwise provided in this section, the Concessioner shall, at 
Concessioner's expense, promptly vacate the Area, remove all of 
Concessioner's personal property, repair any injury occasioned by 
installation of removal of such property, and ensure that Concession 
Facilities are in as good condition as they were at the beginning of 
the term of this CONTRACT, reasonable wear and tear excepted.
(e) Removal of Personal Property
    Except as otherwise provided in this CONTRACT, upon expiration or 
termination of this CONTRACT for any reason, the Concessioner shall 
remove its personal property from the Area unless it is sold to the 
Director or a successor concessioner. No compensation is due the 
Concessioner from the Director or a successor concessioner for such 
personal property. The Director or a successor concessioner may 
purchase such personal property from the Concessioner subject to 
mutually agreed upon terms. Personal property not removed from the Area 
by the Concessioner as of the date of expiration or termination of this 
CONTRACT, unless the Director in writing extends such date of removal, 
shall be considered abandoned property subject to disposition by the 
Director, at full cost and expense of the Concessioner, in accordance 
with Applicable Laws.

Sec. 16. Assignment, Sale or Encumbrance of Interests

    (a) This CONTRACT is subject to the requirements of 36 CFR Part 51 
as it may be amended from time to time with respect to proposed 
conveyances and encumbrances as those terms are defined in 36 CFR Part 
51, including, but not limited to, proposed management and 
subconcession agreements. Failure by the Concessioner to comply with 36 
CFR Part 51 is a material breach of this CONTRACT for which the 
Director may terminate this CONTRACT for default. The Director shall 
not be obliged to recognize any right of any person or entity to an 
interest in this CONTRACT of any nature or operating rights under this 
CONTRACT, if obtained in violation of 36 CFR part 51.
    (b) The Concessioner shall advise any person(s) or entity proposing 
to enter into a transaction which may be subject to 36 CFR part 51 of 
the requirements of that regulation.

Sec. 17. General Provisions

    (a) The Director and Comptroller General of the United States, or 
any of their duly authorized representatives, shall have access to the 
records of the Concessioner as provided by 36 C.F.R. Part 51 as it may 
now exist or be amended from time to time.
    (b) All information required to be submitted to the Director by the 
Concessioner pursuant to this CONTRACT is subject to public release

[[Page 71476]]

by the Director to the extent required or authorized by Applicable 
Laws.
    (c) Subconcession or other third party agreements, including 
management agreements, for the provision of principal services required 
and/or authorized under this CONTRACT are not permitted. However, 
subconcession or other third party agreements may be allowed for 
incidental or specialized services which are incidental to the 
principal services required and/or authorized under this CONTRACT. Any 
proposal to provide incidental or specialized services through 
subconcession or other third party agreements must be submitted to the 
Director in writing, along with a copy of the proposed subconcession or 
third party agreement, and shall be effective only if approved in 
writing by the Director. If the Director approves a subconcession or 
other third party agreement, the Concessioner and the Director will 
amend the CONTRACT to reflect such approval. Agreements with others to 
provide vending or other coin-operated machines shall not be considered 
subconcession agreements.
    (d) The Concessioner is not entitled to be awarded or to have 
negotiating rights to any Federal procurement or service contract by 
virtue of any provision of this CONTRACT.
    (e) Any and all taxes or assessments of any nature that may be 
lawfully imposed by any State or its political subdivisions upon the 
property or business of the Concessioner shall be paid promptly by the 
Concessioner.
    (f) No member of, or delegate to, Congress or Resident Commissioner 
shall be admitted to any share or part of this CONTRACT or to any 
benefit that may arise from this CONTRACT but this restriction shall 
not be construed to extend to this CONTRACT if made with a corporation 
or company for its general benefit.
    (g) This CONTRACT is subject to the provisions of 43 CFR, Subtitle 
A, Subpart D, concerning nonprocurement debarment and suspension. The 
Director may recommend that the Concessioner be debarred or suspended 
in accordance with the requirements and procedures described in those 
regulations, as they are effective now or may be revised in the future.
    (h) This CONTRACT contains the sole and entire agreement of the 
parties. No oral representations of any nature form the basis of or may 
amend this CONTRACT. This CONTRACT may be extended, renewed or amended 
only when agreed to in writing by the Director and the Concessioner.
    (i) The Concessioner is not granted by this CONTRACT any rights to 
renewal of this CONTRACT or to award of a new contract of any nature.
    (j) This CONTRACT does not grant rights or benefits of any nature 
to any third party.
    (k) The invalidity of a specific provision of this CONTRACT shall 
not affect the validity of the remaining provisions of this CONTRACT.
Sec. 18. Special Provisions
    [OPTIONAL--To be used when operating and maintenance requirements 
are incorporated in the body of the contract, rather than as separate 
operating and maintenance plans.]
    In Witness Whereof, the duly authorized representatives of the 
parties have executed this Contract as of the __________ day of 
__________, __________.

Concessioner:

By---------------------------------------------------------------------

(Title, Company Name)

United States of America:

By---------------------------------------------------------------------

(Director, National Park Service)

[Corporations]

Attest:

By---------------------------------------------------------------------
Title------------------------------------------------------------------

[Sole Proprietorship]

Witnesses:

Name-------------------------------------------------------------------
Address----------------------------------------------------------------
Title------------------------------------------------------------------
Name-------------------------------------------------------------------
Address----------------------------------------------------------------
Title------------------------------------------------------------------

[Partnership]

Witnesses as to Each:

Name-------------------------------------------------------------------
Address----------------------------------------------------------------
(Name)-----------------------------------------------------------------
Address----------------------------------------------------------------

[Concessioner]

Name-------------------------------------------------------------------
(Name)-----------------------------------------------------------------

Category III--Contract

United States Department of the Interior

National Park Service

----------------------------------------------------------------------
[Name of Area]

----------------------------------------------------------------------
[Site]

----------------------------------------------------------------------
[Type of Service]

Concession Contract No.------------------------------------------------
----------------------------------------------------------------------
[Name of Concessioner]

----------------------------------------------------------------------
[Address, including email address and phone number]

Doing Business As ____________________
Covering the Period__________ through
__________------------------------------------------------------------

Category III--Concession Contract

Table of Contents

Identification of the Parties

Purpose and Authorities

Sec. 1. Term of Contract
Sec. 2. Definitions
Sec. 3. Services and Operations
    A. Required and Authorized Visitor Services
    B. Operation and Quality of Operation
    C. Operating and Maintenance Plan [OPTIONAL]
    D. Merchandise and Services
    E. Rates
    F. Impartiality as to Rates and Services
Sec. 4. Concessioner Personnel
Sec. 5. Legal, Regulatory, Policy Compliance
    A. Legal, Regulatory, Policy Compliance
    D. Notice
    E. How and Where to Send Notice
Sec. 6. Environmental and Cultural Protection
    A. Environmental Protection
    B. Protection of Cultural and Archeological Resources
Sec. 7. Fees
    A. Franchise Fee
    B. Payments Due
    C. Interest
Sec. 8. Indemnification and Insurance
    A. Indemnification
    B. Insurance in General
    C. Commercial Public Liability
Sec. 9. Bonds and Liens
    A. Bonds
    B. Liens
Sec. 10. Accounting Records and Reports
    A. Accounting System
    B. Annual Financial Report
    C. Other Financial Reports
Sec. 11. Other Reporting Requirements
    A. Insurance Certification
    D. Environmental Reporting
    E. Miscellaneous Reports and Data.
Sec. 12. Suspension and Termination
    A. Suspension
    E. Termination
    F. Notice of Bankruptcy or Insolvency
    G. Requirements in the Event of Termination
    E. Removal of Personal Property
Sec. 13. Assignment, Sale or Encumbrance of Interests
Sec. 14. General Provisions
Sec. 15. Special Provisions [Optional]
Exhibits
    Exhibit ``A'': Nondiscrimination
    Exhibit ``C'': Assigned Government Personal Property
    Exhibit ``E'': Insurance Requirements
    Exhibit ``G'': Operating and Maintenance Plan [OPTIONAL]
    Exhibit ``X'': 36 CFR Part 51
[Corporation]
    This CONTRACT is made and entered into by and between the United 
States of America, acting in this matter by the Director of the 
National Park Service, through the Regional Director of

[[Page 71477]]

the__________Region, hereinafter referred to as the ``Director,'' and, 
a corporation organized and existing under the laws of the State 
of__________doing business as hereinafter referred to as the 
``Concessioner'':
[Partnership]
    This CONTRACT is made and entered into by and between the United 
States of America, acting in this matter by the Director of the 
National Park Service, through the Regional Director of 
the__________Region, hereinafter referred to as the ``Director'', and 
of__________,__________, and __________ of, partners, doing business 
as, pursuant to a partnership agreement dated__________, with the 
principal place of business at__________, hereinafter referred to as 
the ``Concessioner'':
[Sole Proprietorship]
    This CONTRACT made and entered into by and between the United 
States of America, acting in this matter by the Director of the 
National Park Service, through the Regional Director of 
the__________Region, hereinafter referred to as the ``Director,'' and, 
an individual of, doing business as__________, hereinafter referred to 
as the ``Concessioner'':

Witnesseth

    That whereas, [Name of Park, Recreation Area, etc.] is administered 
by the Director as a unit of the national park system to conserve the 
scenery and the natural and historic objects and the wild life therein, 
and to provide for the public enjoyment of the same in such manner as 
will leave such Area unimpaired for the enjoyment of future 
generations; and
    Whereas, to accomplish these purposes, the Director has determined 
that certain visitor services are necessary and appropriate for the 
public use and enjoyment of the Area and should be provided for the 
public visiting the Area; and
    Whereas, the Director desires the Concessioner to establish and 
operate these visitor services at reasonable rates under the 
supervision and regulation of the Director;
    Now, therefore, pursuant to the authority contained in the Acts of 
August 25, 1916 (16 U.S.C. 1, 2-4), and November 13, 1998 (P.L. 105-
391), and other laws that supplement and amend the Acts, the Director 
and the Concessioner agree as follows:

Sec. 1. Term of Contract

    This Concession Contract No. ________(``CONTRACT'') shall be 
effective as of ____________, and shall be for the term of (________) 
years from________, 20____.

Sec. 2. Definitions

    The following terms used in this CONTRACT will have the following 
meanings, which apply to both the singular and the plural forms of the 
defined terms:
    (a) ``Applicable Laws'' means the laws of Congress governing the 
Area, including, but not limited to, the rules, regulations, 
requirements and policies promulgated under those laws, whether now in 
force, or amended, enacted or promulgated in the future, including, 
without limitation, federal, state and local laws, rules, regulations, 
requirements and policies governing nondiscrimination, protection of 
the environment and/or protection of public health and safety.
    (b) ``Area'' means the property within the boundaries of [Name of 
Park Unit].
    (c) ``Capital Improvement'' shall have the meaning set forth in 36 
CFR Part 51 as of the effective date of this Contract.
    (e) ``Director'' means the Director of the National Park Service 
and his duly authorized representatives unless otherwise indicated.
    (f) ``Exhibit'' or ``Exhibits'' shall mean the various exhibits, 
which are attached to this CONTRACT, each, of which is hereby made a 
part of this CONTRACT.
    (g) ``Gross Receipts'' means the total amount received or realized 
by, or accruing to, the Concessioner from all sales for cash or credit, 
of services, accommodations, materials, and other merchandise made 
pursuant to the rights granted by this CONTRACT, including gross 
receipts of subconcessioners as herein defined, commissions earned on 
contracts or agreements with other persons or companies operating in 
the Area, and gross receipts earned from electronic media sales, but 
excluding:
    (i) Intracompany earnings on account of charges to other 
departments of the operation (such as laundry);
    (ii) Charges for employees' meals, lodgings, and transportation;
    (iii) Cash discounts on purchases;
    (iv) Cash discounts on sales;
    (v) Returned sales and allowances;
    (vi) Interest on money loaned or in bank accounts;
    (vii) Income from investments;
    (viii) Income from subsidiary companies outside of the Area;
    (ix) Sale of property other than that purchased in the regular 
course of business for the purpose of resale;
    (x) Sales and excise taxes that are added as separate charges to 
approved sales prices, gasoline taxes, fishing license fees, and 
postage stamps, provided that the amount excluded shall not exceed the 
amount actually due or paid government agencies
    (xi) Receipts from the sale of handcrafts that have been approved 
for sale by the Director as constituting authentic American Indian, 
Alaskan Native, Native Samoan, or Native Hawaiian handicrafts.
    All monies paid into coin operated devices, except telephones, 
whether provided by; the Concessioner or by others, shall be included 
in gross receipts. However, only revenues actually received by the 
Concessioner from coin-operated telephones shall be included in gross 
receipts. All revenues received from charges for in-room telephone or 
computer access shall be included in gross receipts.
    (h) ``Gross receipts of subconcessioners'' means the total amount 
received or realized by, or accruing to, subconcessioners from all 
sources, as a result of the exercise of the rights conferred by 
subconcession contracts hereunder without allowances, exclusions or 
deductions of any kind or nature whatsoever.
    (i) ``Leasehold Surrender Interest'' shall have the meaning set 
forth in 36 CFR Part 51 as of the effective date of this CONTRACT.
    (j) ``Superintendent'' means the manager of the Area.
    (k) ``Visitor services'' means the accommodations, facilities and 
services that the Concessioner is required and authorized to provide by 
section 3(a) of this CONTRACT.

Sec. 3. Services and Operations

(c) Required and Authorized Visitor Services
    During the term of this CONTRACT, the Director requires and 
authorizes the Concessioner to provide the following visitor services 
for the public within the Area: [Provide detailed description of 
required and authorized services.]
    The Concessioner shall not be authorized to construct any Capital 
Improvements upon Area lands. The Concessioner shall not obtain a 
Leasehold Surrender Interest or other compensable interest in Capital 
Improvements constructed or installed in violation of this CONTRACT.
(d) Operation, Maintenance and Quality of Operation
    (1) The Concessioner shall provide, operate and maintain the 
required and authorized visitor services in

[[Page 71478]]

accordance with this CONTRACT to such an extent and in a manner 
considered satisfactory by the Director. The Concessioner's authority 
to provide visitor services under the terms of this CONTRACT is non-
exclusive.
    (2) The Concessioner shall provide and maintain all personal 
property necessary for its operations under this Contract.
    (3) The Director may provide certain items of government personal 
property and equipment for the Concessioner's use in the performance of 
this CONTRACT. The Director hereby assigns government personal property 
and equipment listed in Exhibit C to the Concessioner as of the 
effective date of this CONTRACT. This Exhibit C will be modified from 
time to time by the Director as items may be withdrawn or additional 
items added. The Concessioner shall be accountable to the Director for 
the government personal property and equipment assigned to it and shall 
be responsible for maintaining the property and equipment as necessary 
to keep it in good and operable condition. If the property ceases to be 
serviceable, it shall be returned to the Director for disposition.
(c) Operating and Maintenance Plan [OPTIONAL--This section may be 
deleted and operating requirements incorporated under Section 18, 
Special Provisions.]
    The Director, acting through the Superintendent, shall establish 
and revise, as necessary, specific requirements for the operations of 
the Concessioner under this CONTRACT in the form of an Operating and 
Maintenance Plan (including, without limitation, a risk management 
program, that must be adhered to by the Concessioner). The initial 
Operating and Maintenance Plan is attached to this CONTRACT as Exhibit 
``G.'' The Director in his discretion, after consultation with the 
Concessioner, may make modifications to the initial Operating and 
Maintenance Plan provided that these modifications shall not be 
inconsistent with the terms and conditions of the main body of this 
CONTRACT.
(d) Merchandise and Services
    (1) The Director reserves the right to determine and control the 
nature, type and quality of the visitor services described in this 
CONTRACT, including, but not limited to, the nature, type, and quality 
of merchandise, if any, to be sold or provided by the Concessioner 
within the Area. The Concessioner shall provide all visitor services in 
a manner that is consistent with and supportive of the interpretive 
themes, goals and objectives of the Area.
    (2) All material, regardless of media format (i.e. printed, 
electronic, broadcast media), provided to the public by the 
Concessioner, including promotional or interpretive material, must be 
approved in writing by the Director prior to use. All such material 
will identify the Concessioner as an authorized Concessioner of the 
National Park Service, Department of the Interior.
    (3) [OPTIONAL--To be used only if the concessioner is authorized to 
sell merchandise.] The Concessioner, where applicable, will develop and 
implement a plan satisfactory to the Director that will assure that all 
gift merchandise, if any, to be sold or provided reflects the purpose 
and significance of the Area, including, but not limited to, 
merchandise that reflects the conservation of the Area's resources or 
the Area's geology, wildlife, plant life, archeology, local Native 
American culture, local ethnic culture, and historic significance.
(e) Rates
    All rates and charges to the public by the Concessioner for visitor 
services shall be reasonable and appropriate for the type and quality 
of facilities and/or services required and/or authorized under this 
CONTRACT. The Concessioner's rates and charges to the public must be 
approved by the Director in accordance with rate approval procedures 
and guidelines promulgated by the Director from time to time.
(f) Impartiality as to Rates and Services
    (1) In providing visitor services, the Concessioner must require 
its employees to observe a strict impartiality as to rates and services 
in all circumstances. The Concessioner shall comply with all Applicable 
Laws relating to nondiscrimination in providing visitor services to the 
public including, without limitation, those set forth in Exhibit ``A.''
    (2) The Concessioner may grant complimentary or reduced rates under 
such circumstances as are customary in businesses of the character 
conducted under this Contract. However, the Director reserves the right 
to review and modify Concessioner's complimentary or reduced rate 
policies and practices.
    (3) The Concessioner will provide Federal employees conducting 
official business reduced rates for lodging, essential transportation 
and other specified services necessary for conducting official business 
in accordance with guidelines established by the Director. 
Complimentary or reduced rates and charges shall otherwise not be 
provided to Federal employees by the Concessioner except to the extent 
that they are equally available to the general public.

Sec. 4. Concessioner Personnel

    (a) The Concessioner shall provide all personnel necessary to 
provide the visitor services required and authorized by this CONTRACT.
    (b) The Concessioner shall comply with all Applicable Laws relating 
to employment and employment conditions, including, without limitation, 
those identified in Exhibit ``A.''
    (c) The Concessioner shall ensure that its employees are hospitable 
and exercise courtesy and consideration in their relations with the 
public. The Concessioner shall have its employees who come in direct 
contact with the public, so far as practicable, wear a uniform or badge 
by which they may be identified as the employees of the Concessioner.
    (d) The Concessioner shall establish pre-employment screening, 
hiring, training, employment, termination and other policies and 
procedures for the purpose of providing visitor services through its 
employees in an efficient and effective manner and for the purpose of 
maintaining a healthful, law abiding, and safe working environment for 
its employees. The Concessioner shall conduct appropriate background 
reviews of applicants for employment to assure that they conform to the 
hiring policies established by the Concessioner.
    (e) The Concessioner shall hire, to the greatest extent possible, 
people who are both interested in serving the public in a national park 
environment and interested in being positive contributors to the park's 
purpose.
    (f) The Concessioner shall ensure that its employees are provided 
the training needed to provide quality visitor services and to maintain 
up-to-date job skills.
    (g) The Concessioner shall review the conduct of any of its 
employees whose action or activities are considered by the Concessioner 
or the Director to be inconsistent with the proper administration of 
the Area and enjoyment and protection of visitors and shall take such 
actions as are necessary to fully correct the situation.
    (h) The Concessioner shall maintain, to the greatest extent 
possible, a drug free environment, both in the workplace and in any 
employee housing within the Area.
    (i) The Concessioner shall publish a statement notifying employees 
that the unlawful manufacture, distribution,

[[Page 71479]]

dispensing, possession, or use of a controlled substance is prohibited 
in the workplace and in the Area, and specifying the actions that will 
be taken against employees for violating this prohibition. In addition, 
the Concessioner shall establish a drug-free awareness program to 
inform employees about the danger of drug abuse in the workplace and 
the Area, the availability of drug counseling, rehabilitation and 
employee assistance programs, and the Concessioner's policy of 
maintaining a drug-free environment both in the workplace and in the 
Area.
    (j) The Concessioner shall take appropriate personnel action, up to 
and including termination or requiring satisfactory participation in a 
drug abuse or rehabilitation program which is approved by a Federal, 
State, or local health, law enforcement or other appropriate agency, 
for any employee that violates the prohibition on the unlawful 
manufacture, distribution, dispensing, possession, or use of a 
controlled substance.

Sec. 5. Legal, Regulatory, Policy Compliance

(c) Legal, Regulatory and Policy Compliance
    This CONTRACT, operations thereunder by the Concessioner and the 
administration of it by the Director shall be subject to all Applicable 
Laws. The Concessioner must comply with all Applicable Laws in 
fulfilling its obligations under this CONTRACT at the Concessioner's 
sole cost and expense. Certain Applicable Laws governing protection of 
the environment are further described in this CONTRACT. Certain 
Applicable Laws relating to nondiscrimination in employment and 
providing accessible facilities and services to the public are further 
described in this CONTRACT.
(d) Notice
    The Concessioner shall give the Director immediate written notice 
of any violation of Applicable Laws and, at its sole cost and expense, 
must promptly rectify any such violation.
(c) How and Where To Send Notice
    All notices required by this CONTRACT, shall be in writing and 
shall be served on the parties at the following addresses. The mailing 
of a notice by registered or certified mail, return receipt requested, 
shall be sufficient service. Notices sent to the Director shall be sent 
to the following address:

Superintendent
Park name
Address
Attention:

    Notices sent to the Concessioner shall be sent to the following 
address:

Concessioner
Address
Attention:

Sec. 6. Environmental and Cultural Protection

(a) Environmental Protection
    (1) In addition to complying with all Applicable Laws pertaining to 
the protection of natural resources within the area, the Concessioner 
will conduct its operation, maintenance, acquisition, and provision of 
visitor services in a manner that prevents or reduces environmental 
degradation and that promotes the use of environmentally beneficial 
products. The Concessioner will develop, pursuant to guidelines 
provided by the Director, and carry out, to the satisfaction of the 
Director, a documented environmental monitoring program or programs to 
ensure that park resources affected by concessioner activities under 
this CONTRACT are not unduly impaired. The Concessioner shall be 
financially responsible for environmental audits that may be required 
by the Director for each three-year period of this CONTRACT.
    (2) The Concessioner shall obtain the Director's approval prior to 
using any chemicals, pesticides, any hazardous or toxic substance, 
material, or waste of any kind, including building materials such as 
asbestos, or any contaminant, pollutant, petroleum, petroleum product 
or petroleum by-product.
    (3) The Concessioner shall monitor, test, maintain, repair, 
upgrade, replace, remove, or mitigate, in accordance with Applicable 
Laws and in accordance with the requirements of the Director:
    (i) Any discharge, release or threatened release (whether solid, 
liquid or gaseous in nature) of any hazardous or toxic substance, 
material, or waste of any kind, including building materials such as 
asbestos, or any contaminant, pollutant, petroleum, petroleum product 
or petroleum by-product on or to the Area, including soil, surface 
water or groundwater;
    (ii) Any materials, equipment, and facilities associated with such 
discharge, release or threatened release; or
    (iii) Any materials, equipment and facilities used in the handling, 
storage, disposal, transport or other use of any such hazardous or 
toxic substance, material, or waste of any kind, including building 
materials such as asbestos, or any contaminant, pollutant, petroleum, 
petroleum product or petroleum by-product.
    (4) The Concessioner shall timely contact, notify and/or otherwise 
confer with appropriate federal, state and/or local agencies with 
respect to any reporting obligation arising out of Concessioner's 
operations under this Contract and the Concessioner shall 
simultaneously provide notice of such contact to the Director and allow 
the Director the opportunity to participate in any such proceedings.
    (5) The Concessioner shall give the Director immediate notice of 
any discharge, release or threatened release (whether solid, liquid or 
gaseous in nature) of any hazardous or toxic substance, material, or 
waste of any kind, including building materials such as asbestos, or 
any contaminant, pollutant, petroleum, petroleum product or petroleum 
by-product.
    (6) The Concessioner shall give the Director immediate written 
notice of any threatened or actual notice of violation of any federal, 
state or local law, rule, regulation, requirement or policy relating to 
or governing the use, handling, storage, disposal, transport, presence, 
acceptable concentration, or remediation of any hazardous or toxic 
substance, material, or waste of any kind, including building materials 
such as asbestos, or any contaminant, pollutant, petroleum, petroleum 
product or petroleum by-product received by Concessioner.
    (7) The Concessioner, at its sole cost and expense, shall promptly 
rectify any discharge or release as set forth in this section or any 
threatened or actual violation as set forth in this section, including, 
but not limited to, payment of any fines or penalties imposed thereon.
    (8) The Concessioner shall indemnify the United States in 
accordance with section 12 of the CONTRACT from losses, damages or 
judgements (including, without limitation, fines and penalties) and 
expenses (including, without limitation, attorneys fees and experts 
fees) arising out of the activities of the Concessioner pursuant to 
this section. Such indemnification shall survive termination of this 
CONTRACT.
    (9) If the Concessioner does not promptly rectify the discharge or 
release (whether solid, liquid or gaseous in nature) of any hazardous 
or toxic substance, material, or waste of any kind, including building 
materials such as asbestos, or any contaminant, pollutant, petroleum, 
petroleum product or petroleum by-product, the Director may, in its 
sole discretion and after notice to Concessioner, take any such action 
the Director deems necessary to

[[Page 71480]]

minimize, remediate, or otherwise clean up such release or discharge, 
and recover any costs associated with such action from the Concessioner 
upon demand.
    (10) Even if not specifically required by Applicable Laws, the 
Concessioner shall comply with directives of the Director to clean up 
or remove any materials, product or by-product used, handled, stored, 
disposed, transported onto or into the Area by the Concessioner to 
ensure that the Area remains in good condition.
    (11) The Concessioner shall be responsible for managing weeds, 
harmful insects, rats, mice and other pests on all lands and 
improvements assigned to the Concessioner under this Contract. All such 
weed and pest management activities shall be in accordance with 
guidelines established by the Director.
(b) Protection of Cultural and Archeological Resources
    The Concessioner shall ensure that any protected sites and 
archeological resources within the Area are not disturbed or damaged by 
the Concessioner, including the Concessioner's employees, 
subcontractors or agents, except in accordance with Applicable Laws, 
and only with the prior approval of the Director. Discoveries of any 
archeological resources by Concessioner shall be promptly reported to 
the Director. The Concessioner shall cease work or other disturbance 
which may impact any protected site or archeological resource until the 
Director grants approval, upon such terms and conditions as the 
Director deems necessary, to continue such work or other disturbance.

Sec. 7. Fees

(a) Franchise Fee
    (1) For the term of this CONTRACT, the Concessioner shall pay to 
the Director for the privileges granted under this CONTRACT a franchise 
fee equal to __________ percent (__________ %) of the Concessioner`s 
Gross Receipts for the preceding year or portion of a year.
    (2) The Concessioner agrees that this franchise fee is consistent 
with the probable value of the privileges granted by this CONTRACT as 
defined in this section.
    (3) The Concessioner shall have no right to an adjustment of the 
fees except as provided below. The Concessioner shall have no right to 
waiver of the franchise fee.
(b) Payments Due
    (1) The franchise fee shall be due on a monthly basis at the end of 
each month and shall be paid by the Concessioner in such a manner that 
the Director shall receive payment within fifteen (15) days after the 
last day of each month that the Concessioner operates. This monthly 
payment shall include the franchise fee equal to the specified 
percentage of gross receipts for the preceding month.
    (2) The Concessioner shall pay any additional fee amounts due at 
the end of the operating year as a result of adjustments at the time of 
submission of the Concessioner's Annual Financial Report. Overpayments 
shall be offset against the following year's fees.
    (3) All franchise fee payments consisting of $10,000 or more, shall 
be deposited electronically by the Concessioner using the Treasury 
Financial Communications System.
(c) Interest
    An interest charge will be assessed on overdue amounts for each 
thirty (30) day period, or portion thereof, that payment is delayed 
beyond the fifteen (15)-day period provided for above. The percent of 
interest charged will be based on the current value of funds to the 
United States Treasury as published quarterly in the Treasury Fiscal 
Requirements Manual. The Director may also impose penalties for late 
payment to the extent authorized by Applicable Law.

Sec. 8. Indemnification and Insurance

(b) Indemnification
    The Concessioner agrees to assume liability for and does hereby 
agree to save, hold harmless, protect, defend and indemnify the United 
States of America, its agents and employees from and against any and 
all liabilities, obligations, losses, damages or judgments (including 
without limitation penalties and fines), claims, actions, suits, costs 
and expenses (including without limitation attorneys fees and experts 
fees) of any kind and nature whatsoever on account of fire or other 
peril, bodily injury, death or property damage, or claims for bodily 
injury, death or property damage of any nature whatsoever, and by 
whomsoever made, in any way relating to or arising out of the 
activities of the Concessioner, his employees, subcontractors or agents 
under this CONTRACT. This indemnification shall survive the termination 
or expiration of this CONTRACT.
(b) Insurance in General
    (1) The Concessioner shall obtain and maintain during the entire 
term of this Contract at its sole cost and expense, the types and 
amounts of insurance coverage necessary to fulfill the obligations of 
this CONTRACT. The Director shall approve the types and amounts of 
insurance coverage purchased by the Concessioner.
    (2) The Director will not be responsible for any omissions or 
inadequacies of insurance coverages and amounts in the event the 
insurance purchased by the Concessioner proves to be inadequate or 
otherwise insufficient for any reason whatsoever.
    (3) At the request of the Director, the Concessioner shall at the 
time insurance is first purchased and annually, thereafter, provide the 
Director with a Certificate of Insurance that accurately details the 
conditions of the policy as evidence of compliance with this section. 
The Concessioner shall provide the Director thirty (30) days advance 
written notice of any material change in the Concessioner's insurance 
program hereunder.
(c) Commercial Public Liability
    (1) The Concessioner shall provide commercial general liability 
insurance against claims arising out of or resulting from the acts or 
omissions of the Concessioner or its employees in carrying out the 
activities and operations required and/or authorized under this 
CONTRACT.
    (2) This insurance shall be in the amount commensurate with the 
degree of risk and the scope and size of the activities required and/or 
authorized under this CONTRACT, as more specifically set forth in 
Exhibit E. Furthermore, the commercial general liability package shall 
provide the coverages and limits described in Exhibit E.
    (3) All liability policies shall specify that the insurance company 
shall have no right of subrogation against the United States of America 
and shall provide that the United States of America is named an 
additional insured.
    (4) From time to time, as conditions in the insurance industry 
warrant, the Director may, in his discretion, modify Exhibit E to 
revise the minimum required limits or to require additional types of 
insurance.

Sec. 9. Bonds and Liens

(c) Bonds
    The Director may require the Concessioner to furnish appropriate 
forms of bonds acceptable to the

[[Page 71481]]

Director conditioned upon faithful performance of its obligations under 
this CONTRACT, in such form and in such amount as the Director may deem 
adequate.
(d) Lien
    As additional security for the faithful performance by the 
Concessioner of its obligations under this CONTRACT, and the payment to 
the Government of all damages or claims that may result from the 
Concessioner's failure to observe any such obligations, the Government 
shall have at all times the first lien on all assets of the 
Concessioner within the Area, including, but not limited to, all 
personal property of the Concessioner used in performance of the 
CONTRACT hereunder.

Sec. 10. Accounting Records and Reports

(a) Accounting System
    (1) The Concessioner shall maintain an accounting system under 
which its accounts can be readily identified with its system of 
accounts classification. Such accounting system shall be capable of 
providing the information required by this CONTRACT. The Concessioner's 
system of accounts classification shall be directly related to the 
Concessioner Annual Financial Report Form issued by the Director.
    (2) If the Concessioner's annual gross receipts are $250,000 or 
more, the Concessioner must use the accrual accounting method.
    (3) In computing net profits for any purposes of this CONTRACT, the 
Concessioner shall keep its account in such manner that there can be no 
diversion or concealment of profits or expenses in the operations 
authorized hereunder by means of arrangements for the procurement of 
equipment, merchandise, supplies or services from sources controlled by 
or under common ownership with the Concessioner or by any other device.
(b) Annual Financial Report
    (1) The Concessioner shall submit annually as soon as possible but 
not later than ninety (90) days after the last day of its fiscal year a 
financial statement for the preceding fiscal year or portion of a year 
as prescribed by the Director (``Concessioner Annual Financial 
Report'').
    (2) If the annual gross receipts of the Concessioner are in excess 
of $1,000,000, the financial statements shall be audited by an 
independent Certified Public Accountant in accordance with the 
Generally Accepted Auditing Standards (GAAS) and procedures promulgated 
by the American Institute of Certified Public Accountants.
    (3) If annual gross receipts are between $250,000, and $1,000,000, 
the financial statements shall be reviewed by an independent Certified 
Public Accountant in accordance with the Generally Accepted Auditing 
Standards (GAAS) and procedures promulgated by the American Institute 
of Certified Public Accountants.
    (4) If annual gross receipts are less than $250,000, the financial 
statements may be prepared without involvement by an independent 
Certified Public Accountant, unless otherwise directed by the Director.
(c) Other Financial Reports
    (1) Balance Sheet. Within ninety (90) days of the execution of this 
CONTRACT or its effective date, whichever is later, the Concessioner 
shall submit to the Director a balance sheet as of the beginning date 
of the term of this CONTRACT. The balance sheet shall be audited or 
reviewed, as determined by the gross receipts, by an independent 
Certified Public Accountant.

Sec. 11. Other Reporting Requirements

    The following describes certain other reports required under this 
CONTRACT:
(a) Insurance Certification
    As specified in Section 12, at the time insurance is first 
purchased, and annually thereafter, the Concessioner shall provide the 
Director with a Certificate of Insurance for all insurance coverages 
related to its operations under this CONTRACT. The Concessioner shall 
give the Director thirty (30) days advance written notice of any 
material change in its insurance program.
(b) Environmental Reporting
    The Concessioner shall submit a quarterly report on any matters 
related to the Concessioner's environmental compliance requirements 
under this CONTRACT.
(c) Miscellaneous Reports and Data
    The Director from time to time may require the Concessioner to 
submit other reports and data regarding its performance under the 
Contract or otherwise, including, but not limited to, operational 
information.

Sec. 12. Suspension and Termination

(b) Suspension
    The Director may temporarily suspend operations under this CONTRACT 
in whole or in part when necessary for administrative purposes or to 
enhance or protect Area resources, visitor enjoyment or safety. No 
compensation of any nature shall be due the Concessioner in the event 
of a suspension of operations, including, but not limited to, 
compensation for losses based on lost income, profit, or the necessity 
to make expenditures as a result of the suspension.
(b) Termination
    (1) The Director may terminate this CONTRACT in whole or part at 
any time when necessary for the purpose of enhancing or protecting Area 
resources or visitor enjoyment or safety.
    (2) The Director may terminate this CONTRACT in whole or part for 
default if the Director determines that the Concessioner has breached 
any requirement of this CONTRACT, including, but not limited to, the 
requirement to maintain and operate visitor services to the 
satisfaction of the Director, the requirement to provide only visitor 
services required or authorized by the Director, the requirement to pay 
the established franchise fee, and the requirement to comply with 
Applicable Laws.
    (3) In the event of a breach of the CONTRACT, the Director will 
provide the Concessioner an opportunity to cure by providing written 
notice to the Concessioner of the breach. In the event of a monetary 
breach, the Director will give the Concessioner a fifteen (15) day 
period to cure the breach. If the breach is not cured within that 
period, then the Director may terminate the CONTRACT for default. In 
the event of a nonmonetary breach, if the Director considers that the 
nature of the breach so permits, the Director will give the 
Concessioner thirty (30) days to cure the breach, or to provide a plan, 
to the satisfaction of the Director in his sole discretion, to cure the 
breach over a specified period of time. If the breach is not cured 
within this specified period of time, the Director may terminate the 
CONTRACT for default. Notwithstanding this provision, repeated breaches 
of the same nature shall be grounds for termination for default without 
a cure period. In the event of a breach of any nature, the Director may 
suspend the Concessioner's operations as appropriate in accordance with 
Section 16(a).
    (4) The Director may terminate this CONTRACT upon the filing or the 
execution of a petition in bankruptcy by or against the Concessioner, a 
petition seeking relief of the same or different kind under any 
provision of the Bankruptcy Act or its successor, an assignment by the 
Concessioner for the

[[Page 71482]]

benefit of creditors, a petition or other proceeding against the 
Concessioner for the appointment of a trustee, receiver, or liquidator, 
or, the taking by any person or entity of the rights granted by this 
CONTRACT or any part thereof upon execution, attachment or other 
process of law or equity. The Director may terminate this CONTRACT if 
the Director determines that the Concessioner is unable to perform the 
terms of CONTRACT due to bankruptcy or insolvency.
    (5) Termination of this CONTRACT for any reason shall be by written 
notice to the Concessioner.
(c) Notice of Bankruptcy or Insolvency
    The Concessioner must give the Director notice fifteen (15) days 
prior to filing any petition in bankruptcy, filing any petition seeking 
relief of the same or different kind under any provision of the 
Bankruptcy Act or its successor, or making any assignment for the 
benefit of creditors. The Concessioner must also give the Director 
immediate notice of any petition or other proceeding against the 
Concessioner for the appointment of a trustee, receiver, or liquidator, 
or, the taking by any person or entity of the rights granted by this 
CONTRACT or any part thereof upon execution, attachment or other 
process of law or equity. For purposes of the bankruptcy statutes, this 
CONTRACT is not a lease, but is an executory Contract exempt from 
inclusion in assets of Concessioner pursuant to 11 U.S.C. 1135.
(d) Requirements in the Event of Termination
    (1) In the event of termination of this CONTRACT by the Director 
for any reason, no compensation of any nature shall be due the 
Concessioner including, but not limited to, compensation for losses 
based on lost income, profit, or the necessity to make expenditures as 
a result of the termination.
    (2) Upon termination of this CONTRACT for any reason, and except as 
otherwise provided in this section, the Concessioner shall, at 
Concessioner's expense, promptly vacate the Area, remove all of 
Concessioner's personal property, repair any injury occasioned by 
installation of removal of such property, and ensure that Concession 
Facilities are in as good condition as they were at the beginning of 
the term of this CONTRACT, reasonable wear and tear excepted.
(e) Removal of Personal Property
    Except as otherwise provided in this CONTRACT, upon expiration or 
termination of this CONTRACT for any reason, the Concessioner shall 
remove its personal property from the Area unless it is sold to the 
Director or a successor concessioner. No compensation is due the 
Concessioner from the Director or a successor concessioner for such 
personal property. The Director or a successor concessioner may 
purchase such personal property from the Concessioner subject to 
mutually agreed upon terms. Personal property not removed from the Area 
by the Concessioner as of the date of expiration or termination of this 
CONTRACT, unless the Director in writing extends such date of removal, 
shall be considered abandoned property subject to disposition by the 
Director, at full cost and expense of the Concessioner, in accordance 
with Applicable Laws.

Sec. 13. Assignment, Sale or Encumbrance of Interests

    (a) This CONTRACT is subject to the requirements of 36 CFR Part 51 
as it may be amended from time to time with respect to proposed 
conveyances and encumbrances as those terms are defined in 36 CFR Part 
51, including, but not limited to, proposed management and 
subconcession agreements. Failure by the Concessioner to comply with 36 
CFR Part 51 is a material breach of this CONTRACT for which the 
Director may terminate this CONTRACT for default. The Director shall 
not be obliged to recognize any right of any person or entity to an 
interest in this CONTRACT of any nature or operating rights under this 
CONTRACT, if obtained in violation of 36 CFR Part 51.
    (b) The Concessioner shall advise any person(s) or entity proposing 
to enter into a transaction which may be subject to 36 CFR Part 51 of 
the requirements of that regulation.

Sec. 14. General Provisions

    (a) The Director and Comptroller General of the United States, or 
any of their duly authorized representatives, shall have access to the 
records of the Concessioner as provided by 36 CFR Part 51 as it may now 
exist or be amended from time to time.
    (b) All information required to be submitted to the Director by the 
Concessioner pursuant to this CONTRACT is subject to public release by 
the Director to the extent required or authorized by Applicable Laws.
    (c) Subconcession or other third party agreements, including 
management agreements, for the provision of principal services required 
and/or authorized under this CONTRACT are not permitted. However, 
subconcession or other third party agreements may be allowed for 
incidental or specialized services which are incidental to the 
principal services required and/or authorized under this CONTRACT. Any 
proposal to provide incidental or specialized services through 
subconcession or other third party agreements must be submitted to the 
Director in writing, along with a copy of the proposed subconcession or 
third party agreement, and shall be effective only if approved in 
writing by the Director. If the Director approves a subconcession or 
other third party agreement, the Concessioner and the Director will 
amend the CONTRACT to reflect such approval. Agreements with others to 
provide vending or other coin-operated machines shall not be considered 
subconcession agreements.
    (d) The Concessioner is not entitled to be awarded or to have 
negotiating rights to any Federal procurement or service Contract by 
virtue of any provision of this CONTRACT.
    (e) Any and all taxes or assessments of any nature that may be 
lawfully imposed by any State or its political subdivisions upon the 
property or business of the Concessioner shall be paid promptly by the 
Concessioner.
    (f) No member of, or delegate to, Congress or Resident Commissioner 
shall be admitted to any share or part of this CONTRACT or to any 
benefit that may arise from this CONTRACT but this restriction shall 
not be construed to extend to this CONTRACT if made with a corporation 
or company for its general benefit.
    (g) This CONTRACT is subject to the provisions of 43 C.F.R., 
Subtitle A, Subpart D, concerning nonprocurement debarment and 
suspension. The Director may recommend that the Concessioner be 
debarred or suspended in accordance with the requirements and 
procedures described in those regulations, as they are effective now or 
may be revised in the future.
    (h) This CONTRACT contains the sole and entire agreement of the 
parties. No oral representations of any nature form the basis of or may 
amend this CONTRACT. This Contract may be extended, renewed or amended 
only when agreed to in writing by the Director and the Concessioner.
    (i) The Concessioner is not granted by this CONTRACT any rights to 
renewal of this CONTRACT or to award of a new CONTRACT of any nature.
    (j ) This CONTRACT does not grant rights or benefits of any nature 
to any third party.
    (k) The invalidity of a specific provision of this Contract shall 
not affect the validity of the remaining provisions of this CONTRACT.

[[Page 71483]]

Sec. 15. Special Provisions

    [OPTIONAL--To be used when operating and maintenance requirements 
are incorporated in the body of the CONTRACT, rather than as a separate 
operating and maintenance plan.]
    In witness whereof, the duly authorized representatives of the 
parties have executed this CONTRACT as of the__________day 
of________,________.
Concessioner:
By (Title) (Company Name)
United States of America:
By Director, National Park Service

[Corporations]

Attest:

By---------------------------------------------------------------------
Title------------------------------------------------------------------

[Sole Proprietorship]

Witnesses:

Name-------------------------------------------------------------------
Address----------------------------------------------------------------
Title------------------------------------------------------------------

Name-------------------------------------------------------------------
Address----------------------------------------------------------------
Title------------------------------------------------------------------

[Partnership]

Witnesses as to each:

Name-------------------------------------------------------------------
Address----------------------------------------------------------------
Name-------------------------------------------------------------------
Address----------------------------------------------------------------

[Concessioner]

(Name)-----------------------------------------------------------------
(Name)-----------------------------------------------------------------

    Dated: December 1, 1999.
Maureen Finnerty,
Associate Director, Park Operations and Education, National Park 
Service.
[FR Doc. 99-31752 Filed 12-20-99; 8:45 am]
BILLING CODE 4310-70-P