[Federal Register Volume 65, Number 139 (Wednesday, July 19, 2000)]
[Notices]
[Pages 44894-44920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17431]



[[Page 44893]]

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Part III





Department of the Interior





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National Park Service



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Simplified Concession Contracts; Revision

  Federal Register / Vol. 65, No. 139 / Wednesday, July 19, 2000 / 
Notices  

[[Page 44894]]


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DEPARTMENT OF THE INTERIOR

National Park Service


Simplified Concession Contracts; Revision

ACTION: Final revision of the National Park Service simplified 
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 are concession contracts 
(and, previously, concession permits) that incorporate NPS terms and 
conditions established by law and prudent contract administration. In 
1998, Public Law 105-391 (the 1998 Act) was enacted and which in many 
significant ways affects the content of concession contracts to be 
entered into after its effective date. NPS has amended its existing 
standard concession contract (Category I contract) to conform to the 
requirements of the 1998 Act and to otherwise make improvements to the 
standard form (65 FR 26052, May 4, 2000).
    Under this notice, NPS adopts two simplified versions of its 
standard concession contract (Category II and Category III contracts) 
that will be used for smaller concession operations. Although not 
required to do so by law, NPS sought by publication in the Federal 
Register on December 21, 1999, public comments on the proposed 
simplified contracts to assist it in developing final versions as a 
matter of public comment. NPS, after consideration of public comments 
has adopted these simplified versions of its standard concession 
contract. NPS points out that these simplified versions of the standard 
concession contract serve as a guideline for the form of concession 
contracts used to authorize smaller concession operations. These forms 
reflect the current policies of NPS with regard to concession 
operations, but may be changed by the Director of NPS when necessary to 
accommodate the circumstances of any particular contracting situation, 
so long as the contract form used is consistent with the 1998 Act and 
36 CFR Part 51.

EFFECTIVE DATE: August 18, 2000.

FOR FURTHER INFORMATION CONTACT: Cindy Orlando, Concessions Program 
Manager, National Park Service, 1849 ``C'' Street, NW, Washington, DC 
10140 (202/565-1210).

SUPPLEMENTARY INFORMATION: The 1998 Act, among other matters, amended 
the statutory policies and procedures under which NPS operated its 
concession program. The new law required 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. The final new regulations were published in 
the Federal Register on April 17, 2000. On September 3, 1999, NPS 
published for public comment a new standard concession contract 
(Category I contract). The final Category I contract language was 
published in the Federal Register on May 4, 2000. On December 21, NPS 
published for public comment its proposed simplified concession 
contracts (Category II and Category III contracts) 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 lands. The simplified concession contracts set forth in 
this notice reflect the requirements of the 1998 Act and the 
requirements of the amended 36 CFR Part 51. They also reflect a variety 
of improvements NPS wishes to make to its standard form contracts, 
including a new organizational structure for the sake of clarity.
    NPS will utilize the three contract categories as follows:
    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 in certain 
conditions a leasehold surrender interest. Category I contracts will 
also require that the concessioner perform capital maintenance on 
assigned concession facilities, as necessary, and may 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 be allowed to construct or install capital 
improvements. 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 small 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 and the concessioner will not obtain any leasehold 
surrender interest. Many outfitter/guide operations will be authorized 
by Category III contracts.

Public Comments

    Twenty-two public comments were received in response to the public 
notice. Twenty of these comments were from outfitters and guides, or 
groups representing outfitters and guides. The remaining two comments 
were submitted by an organization representing some 150 existing 
concessioner members (the ``general concessioner organization''), and 
by one large concessioner supporting the comments made by that 
organization.
    Two commenters expressly incorporated by reference objections they 
had made to the proposed Category I contract. Those comments are not 
addressed here, as they have been addressed in the preamble to the 
Category I contract. Additionally, several comments directed to 
specific provisions of the Category II and Category III contracts have 
been addressed in response to similar comments received on the Category 
I contract. These comments will be noted here, and the response will 
give reference to the section of the Category I preamble where they 
have been addressed. Changes made to the Category I contract in 
response to public comments are incorporated in the final simplified 
contracts where applicable.

General Comments

    All but one commenter stated that the simplified contracts must 
specifically recognize the right of preference provided to outfitters 
and guides and small businesses under the 1998 Act. See NPS response in 
paragraph 7, Additional Provisions Section of the Category I contract.
    One commenter who submitted comments on behalf of Alaska hunting 
guides identified several sections where conflicts may exist between 
the contracts and the provisions of the Alaska National Interest Lands 
Conservation Act (ANILCA) or other laws specific to Alaska. NPS wishes 
to point out that the proposed simplified contracts have been developed 
for nationwide application. If, in the development of individual 
contracts, it appears that modifications are necessary in order to 
comport with specific legislative requirements, they will be considered 
and incorporated, as appropriate, on a case-by-case basis. The NPS 
further notes that the 1998 Act specifically states that the Act does 
not amend, supersede or otherwise affect any provision of ANILCA 
relating to revenue producing visitor services (Sec. 415(c) of the 1998 
Act).
    Only one of the 22 commenters objected to the length and level of 
detail

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of the proposed simplified contracts. NPS has made every effort to 
streamline the simplified contracts to the extent possible. However, it 
considers that all of the provisions are required in order to give NPS 
the ability to properly preserve and protect the resources of areas of 
the national park system and their visitors. Further, the simplified 
contracts provide added protections to small concessioners that were 
not afforded under the terms of concession permits with regard to NPS 
administrative actions.
    In developing these final simplified contracts, NPS has 
incorporated the changes it has made to the Category I contract in 
response to public comment, to the extent applicable. Those changes, 
and the discussion of those changes, are incorporated and made a part 
of this notice, as if repeated fully herein. In addition, discussions 
of comments and/or changes made in response to public comments on 36 
CFR part 51 as amended, to the extent that they are applicable to the 
simplified contracts, are also incorporated and made a part of this 
notice. NPS has also made several editorial and conforming changes to 
the simplified contracts in addition to the changes discussed below.

Section-by-Section Analysis of Comments and Changes

    The following discusses significant comments made on the several 
sections of the proposed simplified contracts. Unless otherwise noted, 
comments relate to both Category II and Category III contracts. Where 
section numbers differ between Category II and III contracts, both 
section numbers will be identified (for example, Section 10/7). The 
first number will refer to the applicable section number in the 
Category II contract. The second number will refer to the related 
section number in the Category III contract.

Opening Paragraphs

    One commenter expressed concern that the opening paragraphs assume 
that concessioners will be a corporation, partnerships or sole 
proprietorships, and suggested that the contracts be revised to allow 
for other possibilities. NPS has included opening paragraphs for these 
three forms of business organization because they are the ones most 
commonly encountered in the award of concession contracts. Appropriate 
opening paragraphs will be developed for other legally recognized forms 
of business entities on a case-by-case basis as the need arises.

Section 1. Term of Contract

    Several commenters felt that the proposed contracts should specify 
a 10-year term for outfitters and guides. NPS has left the proposed 
term of contract blank because the appropriate term for each individual 
contract will be determined on a case by case basis in accordance with 
36 CFR Part 51 and NPS policies.

Section 2. Definitions

    Many commenters objected to the definition of ``Applicable Laws'' 
in Section 2(a) as providing NPS unilateral authority to amend 
contracts to reflect future changes in agency regulations, rules, 
requirements or policies. See NPS response to comments on Section 2(a), 
Applicable Laws, of the Category I contract.
    Several comments stated that Section 7, Fees, should reflect that 
fees should be charged only on the portion of gross receipts related to 
park visitation. See NPS response to comments on Section 2(g), 
Definition of gross receipts, of the Category I contract.

Section 3. Services and Operations

    Several commenters felt that the requirement in Section 3(d) that 
all promotional or interpretive material must be approved is 
unreasonable and unworkable. See NPS response to comments on Section 
3(d)(2) of the Category I contract.

Section 4. Concessioner Personnel

    Most outfitters and guides objected to the requirement in Section 
4(c) that concessioner employees must wear a uniform or badge, and 
stated that this is inappropriate for most outfitter and guide 
operations. NPS points out that this section only requires the wearing 
of a uniform or badge by employees who come in direct contact with the 
public ``so far as practicable'' (emphasis added). NPS considers this 
to be a reasonable requirement.
    One commenter expressed concern that the language of Section 4(e) 
concerning the hiring of people interested in serving the public and 
being positive contributors to the park's purposes would require 
concessioners to base hiring decisions on subjective judgement. This 
clause has been deleted (see NPS response to comments on Section 
4(a)(5) of the Category I contract).

Section 5. Legal, Regulatory and Policy Compliance

    No comments were received on this section.

Section 6. Environmental and Cultural Protection

    Several comments were received on this section. However, on 
February 23, 2000, NPS published for public comment a revised Section 
6. The public comments received in response to that public notice are 
discussed in the preamble to the final Category I contract. The 
comments received on this section in response to the simplified 
contracts notice were also considered in that connection and are 
addressed in the preamble to the Category I contract.

Section 7. Interpretation of Area Resources (Category II Only)

    No comments were received on this section.

Section 8. Concession Facilities Used in Operation by Concessioner 
(Category II Only)

    One commenter, the general concessioner organization, objected to 
Section 8(a) of the Category II contract, in that the contract imposes 
maintenance obligations on the concessioner and feels that, to the 
extent these obligations result in construction of capital 
improvements, the concessioner would be entitled to leasehold surrender 
interest. Given the stated purpose of Category II contracts, the 
commenter feels that NPS should be responsible for maintenance and 
collect a greater franchise fee. NPS is confused by this comment. 
Section 8(a)(1) specifically states that the concessioner shall not be 
authorized to construct any capital improvements on parklands. The fact 
that the concessioner is not authorized to make capital improvements 
should not, however, excuse the concessioner from responsibility for 
maintenance obligations. NPS has added the phrase ``Subject to the 
limitations set forth in Section 8(a)(1),'' at the beginning of Section 
9 to clarify that maintenance projects that would require the 
concessioner to make capital improvements will not be required or 
authorized. See also NPS response to comments on Section 51.75 (Section 
51.67 in the final rule) concerning the relationship of concessioner 
repair and maintenance requirements and leasehold surrender interest.
    The same commenter questions why the phrase ``or real property 
improvements'' was deleted from subsection 8(b). NPS agrees with this 
comment and has reinserted the phrase ``or real property 
improvements.'' See also discussion in Section 8(b) of the Category I 
contract.

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Section 9. Maintenance (Category II Only)

    The general concessioner organization raises the same comments with 
regard to this section as it expressed on Section 8(a) of the Category 
II contract. See NPS response to comment on Section 8(a) of the 
Category II contract.

Section 10/7. Fees

    Two commenters expressed concern about the monthly fee payment 
requirement of Section 10/7 (b)(1). One suggested that NPS consider 
annual payments, and the other suggested that payments be required 
twice yearly, or monthly only if annual gross receipts exceed $250,000. 
NPS points out that standard government accounting practices require 
monthly payment of fees. However, in revising its administrative 
practices regarding concessioners, NPS will look into other possible 
payment schedules that may lessen the burden of monthly payments on 
small concessioners.
    Another commenter suggested that fees for outfitters be based on a 
per head, per day basis for each day the guide operates on park lands. 
Again, in reviewing and revising its administrative practices regarding 
concessioners, NPS may look into alternative methods of structuring 
fees for specific types of operations.
    Several commenters suggested that this section should be more 
specific about the methodology to be used to determine whether there is 
diversion or concealment of profits. NPS considers that such 
methodology is not the subject of contract terms and conditions, but, 
more appropriately, belongs in related administrative policies and 
procedures.
    One commenter noted that the Fees section of the simplified 
contract omits fee adjustment language. NPS agrees that, in compliance 
with section 407 of the 1998 Act, this language should be included in 
contracts with terms of more than 5 years. Accordingly, NPS has 
included the fee adjustment language from the Category I contract along 
with instructions to this effect.

Section 11/8. Indemnification and Insurance

    Many commenters felt that this section is unnecessarily vague on 
the types of insurance that a concessioner will be required to obtain 
and maintain, and suggested that these insurance types and limits 
should be specifically reflected in the contract, as was the case in 
the past. NPS will identify on a case-by-case basis the specific types 
and minimum amounts of insurance applicable to each contract in the 
Insurance Exhibit (Exhibit D) that will be attached to each simplified 
contract.
    One commenter objected to Section 11(d) requiring concessioner to 
insure concession facilities assigned to it in the context of a 
Category II contract. This commenter further objected to Section 
11(d)(1) of the Category II contract to the extent it purports to 
impose requirements on the insurance of concessioner facilities located 
outside of the park. NPS assumes that the first comment relates to 
``shared use'' facilities (for example, where a concessioner occupies a 
small portion of a visitor center). The extent to which, if at all, the 
concessioner may be required to provide property insurance in these 
circumstances is determined on a case-by-case basis in accordance with 
NPS administrative guidelines. These guidelines have been in place for 
many years and have proved to be fair and workable. With regard to the 
second comment, NPS does not consider that Section 11(d)(1) purports to 
impose requirements on the insurance of concessioner facilities located 
outside of the park.

Section 12/9. Bonds and Liens

    Several commenters suggest that NPS should limit its first lien to 
only that property used exclusively in the performance of the contract. 
See NPS response to comments on Section 13(b), Liens, of the Category I 
contract.
    One commenter felt that for the types of operations envisioned 
under the simplified contracts, there is no justification for bonding 
requirements, and that it is unfair for the Government to have any lien 
rights. NPS does not agree that bonding requirements are inappropriate 
under the simplified contracts. As an example, bonding could be 
utilized under a Category III contract if considered necessary to 
mitigate anticipated resource impacts of a particular concession 
operation. However, in light of changes made to the Category I contract 
as a result of public comment (see NPS response to comments on Section 
13(b) of the Category I contract), NPS considers that it is appropriate 
to delete the lien provision from the Category III contract, because 
the concessioner's real and personal property will, in almost all 
instances, be located outside the park area.

Section 13/10. Accounting Records and Reports

    No comments were received on this section.

Section 14/11. Other Reporting Requirements

    One commenter questioned whether concessioners would be required 
under Section 14/11(b) to submit reports on environmental compliance if 
no reportable actions or incidents had occurred. There is no 
requirement of this nature except in the limited circumstances 
described in this section.
    One commenter points out that the requirement of Section 14/11(a) 
that concessioners provide the Director with certificates of insurance 
for all coverages at specified times is inconsistent with the 
requirements of Section 8/11(c) which also require them to be provided 
at specified times, but only at the request of the Director. NPS agrees 
that these provisions appear to be inconsistent, and has added the 
conditional language ``At the request of the Director'' at the 
beginning of Section 8/11(b)(3).

Section 15/12. Suspension and Termination

    Several commenters felt that Section 15/12 grants an undue degree 
of discretion by allowing NPS to suspend or terminate contracts when 
necessary for administrative purposes or to enhance or protect park 
resources. Another commenter stated that the contract should not be 
able to be unilaterally amended or terminated. NPS has modified these 
sections in response to public comment on the Category I contract. See 
NPS response to comments on Sections 16(a) and 16(b)(1) of the Category 
I contract.
    One commenter felt that concessioners should be allowed 1 month 
rather than 15 days to cure monetary breaches under Section 16(b)(3). 
NPS disagrees, and feels that 15 days should be an adequate period of 
time in which to cure a monetary breach of the contract.
    One commenter stated that the Director should not have the 
discretion to suspend operations after one breach before the 
concessioner has had an opportunity to cure under Section 16(b)(3).
    NPS does not agree with this comment, and notes that Section 
16(b)(3) limits the Director's authority to suspend a contract pending 
cure to that set forth in Section 16(a), i.e., to protect park visitors 
or to conserve and preserve park area resources. NPS considers this 
provision necessary for proper management of park area resources and 
visitor protection. See NPS response to comments on Section 16 of the 
Category I contract.
    One commenter requested that NPS specify a time period for how 
promptly

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a concessioner will be required to vacate the area after termination, 
and stated that the vacating concessioner should be compensated for its 
personal property. See NPS response to comments on Section 17(e) of the 
Category I contract.

Section 16/13. Assignment, Sale or Encumbrance of Interests

    Most commenters felt that Section 16/13 needs to be rewritten to 
reflect the intent of the 1998 Act that contracts be transferable to a 
qualified buyer. As this section of the contract simply incorporates by 
reference the requirements of 36 CFR part 51 with regard to 
assignments, sales and encumbrances, this comment is addressed in the 
NPS response to comments on Subpart I, 36 CFR part 51.

Section 17/14. General Provisions

    No comments were received on this section.

Section 18/15. Special Provisions

    No comments were received on this section.

Exhibits

    See the discussion of exhibits contained in the preamble to the 
final Category I contract.
    Based on the foregoing, NPS adopts the following standard form 
Category II and III concession contract for use in its concession 
management program, with the understanding that they are only internal 
guidelines. The Director, in his discretion, may utilize any form of 
concession contract it may choose consistent with the requirements of 
the 1998 Act and 36 CFR part 51.

Category II 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---------------------------------------------------------------

Concession Contract

Table of Contents

Identification of the Parties

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, and Policy Compliance

A. Legal, Regulatory, and Policy Compliance
B. Notice
C. How and Where to Send Notice

Sec. 6. Environmental and Cultural Protection

A. Environmental Management Objectives
B. Environmental Management Program
C. Environmental Management Measurement
D. Environmental Data, Reports, Notifications, and Approvals
E. Corrective Action
F. Indemnification and Cost Recovery for Concessioner Environmental 
Activities
G. Weed and Pest Management
H. Protection of Cultural and Archeological Resources

Sec. 7. Interpretation of Area Resources

A. Concessioner Obligations
B. Director Review of Content

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
G. Utilities

Sec. 9. Maintenance

A. Maintenance Obligation
B. Maintenance Plan [OPTIONAL]

Sec. 10. Fees

A. Franchise Fee
B. Payments Due
C. Interest
D. Adjustment of Franchise Fee [OPTIONAL]

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. Lien

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, Termination, or Expiration

A. Suspension
B. Termination
C. Notice of Bankruptcy or Insolvency
D. Requirements in the Event of Termination or Expiration

Sec. 16. Assignment, Sale or Encumbrance of Interests

Sec. 17. General Provisions

Sec. 18. Special Provisions [Optional]

Exhibits

Exhibit A: Operating Plan
Exhibit B: Nondiscrimination.
Exhibit C: Assigned Land, Real Property Improvements
Exhibit D: Assigned Government Personal Property
Exhibit E: Maintenance Plan
Exhibit F: Insurance Requirements

[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 
______ (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 ______ a 
partnership organized under the laws of the State of ______, 
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 wildlife 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

[[Page 44898]]

    Whereas, the Director desires the Concessioner to establish and 
operate these visitor services at reasonable rates under the 
supervision and regulation of the Director; and
    Whereas, the Director desires the Concessioner to conduct these 
visitor services in a manner that demonstrates sound environmental 
management, stewardship, and leadership;
    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 (Pub. 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 until its expiration on ______, 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 (e.g., 36 CFR 
Part 51), 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 protection of 
public health and safety.
    (b) ``Area'' means the property within the boundaries of [Name of 
Park Unit]. 
    (c) ``Best Management Practices'' or ``BMPs'' are policies and 
practices that apply the most current and advanced means and 
technologies available to the Concessioner to undertake and maintain a 
superior level of environmental performance reasonable in light of the 
circumstances of the operations conducted under this CONTRACT. BMPs are 
expected to change from time to time as technology evolves with a goal 
of sustainability of the Concessioner's operations. Sustainability of 
operations refers to operations that have a restorative or net positive 
impact on the environment.
    (d) ``Concession Facilities'' shall mean all Area lands assigned to 
the Concessioner under this CONTRACT and all real property improvements 
assigned to the Concessioner under this CONTRACT. The United States 
retains title and ownership to all Concession Facilities.
    (f) ``Days'' shall mean calendar days.
    (g) ``Director'' means the Director of the National Park Service, 
acting on behalf of the Secretary of the Interior and the United 
States, and his duly authorized representatives.
    (h) ``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.
    (i) ``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:
    (1) Intracompany earnings on account of charges to other 
departments of the operation (such as laundry);
    (2) Charges for employees' meals, lodgings, and transportation;
    (3) Cash discounts on purchases;
    (4) Cash discounts on sales;
    (5) Returned sales and allowances;
    (6) Interest on money loaned or in bank accounts;
    (7) Income from investments;
    (8) Income from subsidiary companies outside of the Area;
    (9) Sale of property other than that purchased in the regular 
course of business for the purpose of resale;
    (10) Sales and excise taxes that are added as separate charges to 
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;
    (11) Receipts from the sale of handicrafts 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.
    (j) ``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 a 
subconcession contract. A subconcessioner will report all of its gross 
receipts to the Concessioner without allowances, exclusions, or 
deductions of any kind or nature.
    (k) ``Subconcessioner'' means a third party that, with the approval 
of the Director, has been granted by a concessioner rights to operate 
under a concession contract (or any portion thereof), whether in 
consideration of a percentage of revenues or otherwise.
    (l) ``Superintendent'' means the manager of the Area.
    (m) ``Visitor services'' means the accommodations, facilities and 
services that the Concessioner is required and/or 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 a 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.]

    (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. See note in 
subsection (a)(1) above.]

(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. Except for any such 
items that may be provided to the Concessioner 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

[[Page 44899]]

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 A. The Director in his discretion, after 
consultation with the Concessioner, may make reasonable modifications 
to the initial Operating Plan that are in furtherance of the purposes 
of this CONTRACT and are not 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 promotional material, regardless of media format (i.e. 
printed, electronic, broadcast media), provided to the public by the 
Concessioner in connection with the services provided under this 
CONTRACT 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 
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 Applicable Laws and 
guidelines promulgated by the Director from time to time.
(f) Impartiality as to Rates and Services
    (1) Subject to Section (f)(2) and (f)(3), 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 B.
    (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 the Concessioner's complimentary or reduced rate 
policies and practices as part of its rate approval process.
    (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 set forth in Exhibit B.
    (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 to whom an offer for employment may be extended 
to assure that they conform to the hiring policies established by the 
Concessioner.
    (e) 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.
    (f) 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 correct the situation.
    (g) The Concessioner shall maintain, to the greatest extent 
possible, a drug free environment, both in the workplace and in any 
Concessioner employee housing, within the Area.
    (h) 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.
    (i) 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 is found to be in violation of the prohibition on 
the unlawful manufacture, distribution, dispensing, possession, or use 
of a controlled substance.

Sec. 5. Legal, Regulatory, and Policy Compliance

(a) Legal, Regulatory and Policy Compliance
    This CONTRACT, operations thereunder by the Concessioner and the

[[Page 44900]]

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 by the Concessioner, including its 
employees, agents or contractors, 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 Management Objectives
    The Concessioner shall meet the following environmental management 
objectives (hereinafter ``Environmental Management Objectives'') in the 
conduct of its operations under this CONTRACT:
    (1) The Concessioner, including its employees, agents and 
contractors, shall comply with all Applicable Laws pertaining to the 
protection of human health and the environment.
    (2) The Concessioner shall incorporate Best Management Practices 
(BMPs) in its operation, construction, maintenance, acquisition, 
provision of visitor services, and other activities under this 
CONTRACT.
(b) Environmental Management Program
    (1) The Concessioner shall develop, document, implement, and comply 
fully with, to the satisfaction of the Director, a comprehensive 
written Environmental Management Program (EMP) to achieve the 
Environmental Management Objectives. The initial EMP shall be developed 
and submitted to the Director for approval within sixty days of the 
effective date of this CONTRACT. The Concessioner shall submit to the 
Director for approval a proposed updated EMP annually.
    (2) The EMP shall account for all activities with potential 
environmental impacts conducted by the Concessioner or to which the 
Concessioner contributes. The scope and complexity of the EMP may vary 
based on the type, size and number of Concessioner activities under 
this CONTRACT.
    (3) The EMP shall include, without limitation, the following 
elements:
    (i) Policy. The EMP shall provide a clear statement of the 
Concessioner's commitment to the Environmental Management Objectives.
    (ii) Goals and Targets. The EMP shall identify environmental goals 
established by the Concessioner consistent with all Environmental 
Management Objectives. The EMP shall also identify specific targets 
(i.e. measurable results and schedules) to achieve these goals.
    (iii) Responsibilities and Accountability. The EMP shall identify 
environmental responsibilities for Concessioner employees and 
contractors. The EMP shall include the designation of an environmental 
program manager. The EMP shall include procedures for the Concessioner 
to implement the evaluation of employee and contractor performance 
against these environmental responsibilities.
    (iv) Documentation. The EMP shall identify plans, procedures, 
manuals, and other documentation maintained by the Concessioner to meet 
the Environmental Management Objectives.
    (v) Documentation Control and Information Management System. The 
EMP shall describe (and implement) document control and information 
management systems to maintain knowledge of Applicable Laws and BMPs. 
In addition, the EMP shall identify how the Concessioner will manage 
environmental information, including without limitation, plans, 
permits, certifications, reports, and correspondence.
    (vi) Reporting. The EMP shall describe (and implement) a system for 
reporting environmental information on a routine and emergency basis, 
including providing reports to the Director under this CONTRACT.
    (vii) Communication. The EMP shall describe how the environmental 
policy, goals, targets, responsibilities and procedures will be 
communicated throughout the Concessioner's organization.
    (viii) Training. The EMP shall describe the environmental training 
program for the Concessioner, including identification of staff to be 
trained, training subjects, frequency of training and how training will 
be documented.
    (ix) Monitoring, Measurement, and Corrective Action. The EMP shall 
describe how the Concessioner will comply with the EMP and how the 
Concessioner will self-assess its performance under the EMP, a least 
annually, in a manner consistent with NPS protocol regarding audit of 
NPS operations. The self-assessment should ensure the Concessioner's 
conformance with the Environmental Management Objectives and measure 
performance against environmental goals and targets. The EMP shall also 
describe procedures to be taken by the Concessioner to correct any 
deficiencies identified by the self-assessment.
(c) Environmental Performance Measurement
    The Concessioner shall be evaluated by the Director on its 
environmental performance under this CONTRACT, including, without 
limitation, compliance with the approved EMP, on at least an annual 
basis.
(d) Environmental Data, Reports, Notifications, and Approvals
    (1) Inventory of Hazardous Substances and Inventory of Waste 
Streams. The Concessioner shall submit to the Director, at least 
annually, an inventory of federal Occupational Safety and Health 
Administration (OSHA) designated hazardous chemicals used and stored in 
the Area by the Concessioner. The Director may prohibit the use of any 
OSHA hazardous chemical by the Concessioner in operations under this 
CONTRACT. The Concessioner shall obtain the Director's approval prior 
to using any extremely hazardous substance, as defined in the Emergency 
Planning and Community Right to Know Act of 1986, in operations under 
this CONTRACT. The Concessioner shall also submit to the Director, at 
least annually, an inventory of all waste streams generated by the 
Concessioner under this CONTRACT. Such inventory shall include any 
documents, reports, monitoring data, manifests, and other documentation 
required by Applicable Laws regarding waste streams.
    (2) Reports. The Concessioner shall submit to the Director copies 
of all documents, reports, monitoring data,

[[Page 44901]]

manifests, and other documentation required under Applicable Laws to be 
submitted to regulatory agencies. The Concessioner shall also submit to 
the Director any environmental plans for which coordination with Area 
operations are necessary and appropriate, as determined by the Director 
in accordance with Applicable Laws.
    (3) Notification of Releases. The Concessioner shall give the 
Director immediate written notice of any discharge, release or 
threatened release (as these terms are defined by Applicable Laws) 
within or at the vicinity of the Area, (whether solid, semi-solid, 
liquid or gaseous in nature) of any hazardous or toxic substance, 
material, or waste of any kind, including, without limitation, building 
materials such as asbestos, or any contaminant, pollutant, petroleum, 
petroleum product or petroleum by-product.
    (4) Notice of Violation. The Concessioner shall give the Director 
in writing immediate notice of any written threatened or actual notice 
of violation from other regulatory agencies of any Applicable Law 
arising out of the activities of the Concessioner, its agents or 
employees.
    (5) Communication with Regulatory Agencies. The Concessioner shall 
provide timely written advance notice to the Director of 
communications, including without limitation, meetings, audits, 
inspections, hearings and other proceedings, between regulatory 
agencies and the Concessioner related to compliance with Applicable 
Laws concerning operations under this CONTRACT. The Concessioner shall 
also provide to the Director any written materials prepared or received 
by the Concessioner in advance of or subsequent to any such 
communications. The Concessioner shall allow the Director to 
participate in any such communications. The Concessioner shall also 
provide timely notice to the Director following any unplanned 
communications between regulatory agencies and the Concessioner.
(e) Corrective Action
    (1) The Concessioner, at its sole cost and expense, shall promptly 
control and contain any discharge, release or threatened release, as 
set forth in this section, or any threatened or actual violation, as 
set forth in this section, arising in connection with the 
Concessioner's operations under this CONTRACT, including, but not 
limited to, payment of any fines or penalties imposed by appropriate 
agencies. Following the prompt control or containment of any release, 
discharge or violation, the Concessioner shall take all response 
actions necessary to remediate the release, discharge or violation, and 
to protect human health and the environment.
    (2) 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, or transported onto or into the Area by the Concessioner to 
ensure that the Area remains in good condition.
(f) Indemnification and Cost Recovery for Concessioner Environmental 
Activities
    (1) The Concessioner shall indemnify the United States in 
accordance with Section 11 of this CONTRACT from all losses, claims, 
damages, environmental injuries, expenses, response costs, allegations 
or judgments (including, without limitation, fines and penalties) and 
expenses (including, without limitation, attorneys fees and experts' 
fees) arising out of the activities of the Concessioner, its employees, 
agents and contractors pursuant to this section. Such indemnification 
shall survive termination or expiration of this CONTRACT.
    (2) If the Concessioner does not promptly contain and remediate an 
unauthorized discharge or release arising out of the activities of the 
Concessioner, its employees, agents and contractors, as set forth in 
this section, or correct any environmental self-assessment finding of 
non-compliance, in full compliance with Applicable Laws, the Director 
may, in its sole discretion and after notice to the Concessioner, take 
any such action consistent with Applicable Laws as the Director deems 
necessary to abate, mitigate, remediate, or otherwise respond to such 
release or discharge, or take corrective action on the environmental 
self-assessment finding. The Concessioner shall be liable for and shall 
pay to the Director any costs of the Director associated with such 
action upon demand. Nothing in this section shall preclude the 
Concessioner from seeking to recover costs from a responsible third 
party.
(g) Weed and Pest Management
    The Concessioner shall be responsible for managing weeds, and 
through an integrated pest management program, harmful insects, rats, 
mice and other pests on Concession Facilities assigned to the 
Concessioner under this CONTRACT. All such weed and pest management 
activities shall be in accordance with Applicable Laws and guidelines 
established by the Director.
(h) 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, agents and 
contractors, except in accordance with Applicable Laws, and only with 
the prior approval of the Director. Discoveries of any archeological 
resources by the 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 as reflected in Area planning 
documents, mission statements and/or interpretive prospectuses.
    (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.
    (3) The Concessioner is encouraged to develop interpretive 
materials or means to educate visitors about environmental programs or 
initiatives implemented by the Concessioner.
(b) Director review of content
    The Concessioner must submit the proposed content of any 
interpretive programs, exhibits, displays or materials, regardless of 
media format (i.e. printed, electronic, or broadcast media), to the 
Director for review and approval prior to offering such programs, 
exhibits, displays or materials to Area visitors.

Sec. 8. Concession Facilities Used in Operation by the Concessioner

(a) Assignment of Concession Facilities
    (1) The Director hereby assigns Concession Facilities as described 
in Exhibit C to the Concessioner for the purposes of this CONTRACT. The 
Concessioner shall not be authorized to

[[Page 44902]]

construct any Capital Improvements (as defined in Applicable Laws 
including without limitation 36 CFR Part 51) 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 C to reflect 
changes in Concession Facilities assigned to the 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 necessary for the purpose of conserving, 
preserving 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 or real property improvements assigned to the Concessioner 
are no longer necessary for the concession operation.
(c) Effect of Withdrawal
    Any permanent withdrawal of assigned Concession Facilities which 
the Director or the Concessioner considers to be essential for the 
Concessioner to provide the visitor services required by this CONTRACT 
will be treated as a termination of this CONTRACT pursuant to Section 
15. 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 without 
limitation removable equipment, furniture and goods, necessary for its 
operations under this CONTRACT, unless such personal property is 
provided by the Director as set forth in subsection (e)(2).
    (2) Personal Property Provided by the Government. The Director may 
provide certain items of government personal property, including 
without limitation removable equipment, furniture and goods, for the 
Concessioner's use in the performance of this CONTRACT. The Director 
hereby assigns government personal property listed in Exhibit D to the 
Concessioner as of the effective date of this CONTRACT. This Exhibit D 
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 
assigned to it and shall be responsible for maintaining the property 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
    The Concessioner has inspected the Concession Facilities and any 
assigned government personal property, is thoroughly acquainted with 
their condition, and accepts the Concession Facilities, and any 
assigned government personal property, ``as is.''
(g) Utilities
    (1) The Director may provide utilities to the Concessioner for use 
in connection with the operations required or authorized hereunder when 
available and at rates to be determined in accordance with Applicable 
Laws.
    (2) If the Director does not provide utilities to the Concessioner, 
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
    Subject to the limitations set forth in Section 8(a)(1) of this 
CONTRACT, 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 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 E. 
The Director in his discretion may make reasonable modifications to the 
Maintenance Plan from time to time after consultation with the 
Concessioner. Such modifications shall be in furtherance of the 
purposes of this CONTRACT and 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) Neither the Concessioner nor the Director shall have a right to 
an adjustment of the fees except as provided below. The Concessioner 
has no right to waiver of the fee under any circumstances.
(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. In the event of 
termination or expiration of this CONTRACT, overpayments will first be 
offset against any amounts due and owing the Government, and the 
remainder will be paid to the Concessioner.
    (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.

[[Page 44903]]

(d) Adjustment of Franchise Fee
[OPTIONAL-Include only if contract term is greater than 5 years.]

    (1) The Concessioner or the Director may request, in the event that 
either considers that extraordinary, unanticipated changes have 
occurred after the effective date of this CONTRACT, a reconsideration 
and possible subsequent adjustment of the franchise fee established in 
this section. For the purposes of this section, the phrase 
``extraordinary, unanticipated changes'' shall mean extraordinary, 
unanticipated changes from the conditions existing or reasonably 
anticipated before the effective date of this CONTRACT which have or 
will significantly affect the probable value of the privileges granted 
to the Concessioner by this CONTRACT. For the purposes of this section, 
the phrase ``probable value'' means a reasonable opportunity for net 
profit in relation to capital invested and the obligations of this 
CONTRACT.
    (2) The Concessioner or the Director must make a request for a 
reconsideration by mailing, within sixty (60) days from the date that 
the party becomes aware, or should have become aware, of the possible 
extraordinary, unanticipated changes, a written notice to the other 
party that includes a description of the possible extraordinary, 
unanticipated changes and why the party believes they have affected or 
will significantly affect the probable value of the privileges granted 
by this CONTRACT.
    (3) If the Concessioner and the Director agree that extraordinary, 
unanticipated changes have occurred, the Concessioner and the Director 
will undertake good faith negotiations as to an appropriate adjustment 
of the franchise fee.
    (4) The negotiation will last for a period of sixty (60) days from 
the date the Concessioner and the Director agree that extraordinary, 
unanticipated changes occurred. If the negotiation results in agreement 
as to an adjustment (up or down) of the franchise fee within this 
period, the franchise fee will be adjusted accordingly, prospectively 
as of the date of agreement.
    (5) If the negotiation does not result in agreement as to the 
adjustment of the franchise fee within this sixty (60) day period, then 
either the Concessioner or the Director may request binding arbitration 
to determine the adjustment to franchise fee in accordance with this 
section. Such a request for arbitration must be made by mailing written 
notice to the other party within fifteen (15) days of the expiration of 
the sixty (60) day period.
    (6) Within thirty (30) days of receipt of such a written notice, 
the Concessioner and the Director shall each select an arbiter. These 
two arbiters, within thirty (30) days of selection, must agree to the 
selection of a third arbiter to complete the arbitration panel. Unless 
otherwise agreed by the parties, the arbitration panel shall establish 
the procedures of the arbitration. Such procedures must provide each 
party a fair and equal opportunity to present its position on the 
matter to the arbitration panel.
    (7) The arbitration panel shall consider the written submissions 
and any oral presentations made by the Concessioner and the Director 
and provide its decision on an adjusted franchise fee (up, down or 
unchanged) that is consistent with the probable value of the privileges 
granted by this CONTRACT within sixty (60) days of the presentations.
    (8) Any adjustment to the franchise fee resulting from this section 
shall be prospective only.
    (9) Any adjustment to the franchise fee will be embodied in an 
amendment to this CONTRACT.
    (10) During the pendency of the process described in this section, 
the Concessioner shall continue to make the established franchise fee 
payments required by this CONTRACT.

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 connected with or arising out of the 
activities of the Concessioner, its employees, agents or contractors 
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 as determined by the Director. The initial insurance 
requirements are set forth below and in Exhibit F. Any changed or 
additional requirements that the Director determines necessary must be 
reasonable and consistent with the types and coverage amounts of 
insurance a prudent businessperson would purchase in similar 
circumstances. 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 immediate written notice of 
any material change in the Concessioner's insurance program hereunder, 
including without limitation, cancellation of any required insurance 
coverages.
(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, agents or contractors, 
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 F. Furthermore, the commercial general liability package shall 
provide no less than the coverages and limits described in Exhibit F.
    (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 modify Exhibit F to revise the minimum 
required limits or to require additional types of insurance,

[[Page 44904]]

provided that any additional requirements must be reasonable and 
consistent with the types of insurance a prudent businessperson would 
purchase in similar circumstances.
(d) Property Insurance
    (1) In the event of damage or destruction, the Concessioner will 
repair or replace those Concession Facilities and personal property 
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 for all or part of 
their replacement cost as specified in Exhibit F in amounts no less 
than the Director may require during the term of the CONTRACT. The 
minimum values currently in effect are set forth in Exhibit F.
    (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 and/or personal property utilized in the Concessioner's 
operations under this CONTRACT, as directed by the Director. Policies 
may not contain provisions limiting insurance proceeds to in situ 
replacement. The lien provision of Section 12 shall apply to such 
insurance proceeds. The Concessioner shall not be relieved of its 
obligations under subsection (d)(1) because insurance proceeds are not 
sufficient to repair or replace damaged or destroyed property.
    (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 (as 
defined in Applicable Laws including without limitation 36 CFR Part 51) 
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 F.

Sec. 12. Bonds and Liens

(a) Bonds
    The Director may require the Concessioner to furnish appropriate 
forms of bonds in amounts reasonable in the circumstances and 
acceptable to the Director, in order to ensure faithful performance of 
the Concessioner's obligations under this CONTRACT.
(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 within the Area.

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, including but not 
limited to the Concessioner's repair and maintenance obligations. 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 accounts in such manner that there can be 
no diversion or concealment of profits or expenses in the operations 
authorized under this CONTRACT 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 one hundred twenty (120) 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 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 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 annual 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 11, the Concessioner shall, at the request 
of the Director, 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 immediate written 
notice of any material change in its insurance program, including 
without limitation, any cancellation of required insurance coverages.
(b) Environmental Reporting
    The Concessioner shall submit environmental reports as specified in 
Section 6 of this CONTRACT, and as otherwise required by the Director 
under the terms of 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

[[Page 44905]]

otherwise, including, but not limited to, operational information.

Sec. 15. Suspension, Termination, or Expiration

(a) Suspension
    The Director may temporarily suspend operations under this CONTRACT 
in whole or in part in order to protect Area visitors or to protect, 
conserve and preserve Area resources. No compensation of any nature 
shall be due the Concessioner by the Director 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 at any time in order 
to protect Area visitors, protect, conserve, and preserve Area 
resources, or to limit visitor services in the Area to those that 
continue to be necessary and appropriate.
    (2) The Director may terminate this CONTRACT if the Director 
determines that the Concessioner has materially 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 those 
visitor services required or authorized by the Director pursuant to 
this CONTRACT, the requirement to pay the established franchise fee, 
the requirement to prepare and comply with an Environmental Management 
Program 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, 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 (two or 
more) 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 15(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 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 immediate notice (within 
five (5) days) after the filing of 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, NPS considers that this CONTRACT is not a lease but an 
executory contract exempt from inclusion in assets of Concessioner 
pursuant to 11 U.S.C. 365.
(d) Requirements in the Event of Termination or Expiration
    (1) In the event of termination of this CONTRACT for any reason or 
expiration of this CONTRACT, no compensation of any nature shall be due 
the Concessioner in the event of a termination or expiration of this 
CONTRACT, 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, or upon its 
expiration, and except as otherwise provided in this section, the 
Concessioner shall, at the Concessioner's expense, promptly vacate the 
Area, remove all of the Concessioner's personal property, repair any 
injury occasioned by installation or removal of such property, and 
ensure that Concession Facilities are in at least as good condition as 
they were at the beginning of the term of this CONTRACT, reasonable 
wear and tear excepted. The removal of such personal property must 
occur within thirty (30) days after the termination of this CONTRACT 
for any reason or its expiration (unless the Director in particular 
circumstances requires immediate removal). No compensation is due the 
Concessioner from the Director or a successor concessioner for the 
Concessioner's personal property used in operations under this 
CONTRACT. However, 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 in accordance with the terms of this CONTRACT shall 
be considered abandoned property subject to disposition by the 
Director, at full cost and expense of the Concessioner, in accordance 
with Applicable Laws. Any cost or expense incurred by the Director as a 
result of such disposition may be offset from any amounts owed to the 
Concessioner by the Director to the extent consistent with Applicable 
Laws.

Sec. 16. Assignment, Sale or Encumbrance of Interests

    (a) This CONTRACT is subject to the requirements of Applicable 
Laws, including, without limitation, 36 CFR Part 51, with respect to 
proposed assignments and encumbrances, as those terms are defined by 
Applicable Laws. Failure by the Concessioner to comply with Applicable 
Laws 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 Applicable Laws.
    (b) The Concessioner shall advise any person(s) or entity proposing 
to enter into a transaction which may be subject to Applicable Laws, 
including without limitation, 36 CFR Part 51, of the

[[Page 44906]]

requirements of Applicable Law and this CONTRACT.

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 the terms of Applicable 
Laws.
    (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 provided by Applicable Laws.
    (c) Subconcession or other third party agreements, including 
management agreements, for the provision of visitor services required 
and/or authorized under this CONTRACT are not permitted.
    (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 ) This CONTRACT does not grant rights or benefits of any nature 
to any third party.
    (j ) The invalidity of a specific provision of this CONTRACT shall 
not affect the validity of the remaining provisions of this CONTRACT.
    (k) Waiver by the Director or the Concessioner of any breach of any 
of the terms of this CONTRACT by the other party shall not be deemed to 
be a waiver or elimination of such term, nor of any subsequent breach 
of the same type, nor of any other term of the CONTRACT. The subsequent 
acceptance of any payment of money or other performance required by 
this CONTRACT shall not be deemed to be a waiver of any preceding 
breach of any term of the CONTRACT.
    (l) Claims against the Director (to the extent subject to 28 U.S.C. 
2514) arising from this CONTRACT shall be forfeited to the Director by 
any person who corruptly practices or attempts to practice any fraud 
against the United States in the proof, statement, establishment, or 
allowance thereof within the meaning of 28 U.S.C. 2514.

Section 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:--------------------------------------------------------------

[Concessioner]

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

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

Exhibit A--Operating Plan

I. Introduction

    This Operating Plan between ______ (hereinafter referred to as 
the ``Concessioner'') and [Park Unit Name] (hereinafter referred to 
as the ``Service'') shall serve as a supplement to Concession 
Contract CC-xxxxnnnn-yy (hereinafter referred to as the 
``CONTRACT''). It describes specific operating responsibilities of 
the Concessioner and the Service with regard to those lands and 
facilities within [Park Unit Name] which are assigned to the 
Concessioner for the purposes authorized by the CONTRACT.
    In the event of any conflict between the terms of the CONTRACT 
and this Operating Plan, the terms of the CONTRACT, including its 
designations and amendments, shall prevail.
    This plan will be reviewed annually by the Superintendent in 
consultation with the Concessioner and revised as determined 
necessary by the Superintendent of [Park Unit Name].
    Any revisions shall not be inconsistent with the main body of 
this CONTRACT. Any revisions must be reasonable and in furtherance 
of the purposes of the CONTRACT.
    [From this point on, this document is tailored to the 
requirements of each individual park.]

Exhibit B--Nondiscrimination

Section I: Requirements Relating to Employment and Service to the 
Public

A. Employment

    During the performance of this CONTRACT the Concessioner agrees 
as follows:
    (1) The Concessioner will not discriminate against any employee 
or applicant for employment because of race, color, religion, sex, 
age, national origin, or disabling condition. The Concessioner will 
take affirmative action to ensure that applicants are employed, and 
that employees are treated during employment, without regard to 
their race, color, religion, sex, age, national origin, or disabling 
condition. Such action shall include, but not be limited to, the 
following: Employment upgrading, demotion, or transfer; recruitment 
or recruitment advertising; layoff or termination; rates of pay or 
other forms of compensation; and selection for training, including 
apprenticeship. The Concessioner agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided by the Secretary setting forth the provision 
of this nondiscrimination clause.
    (2) The Concessioner will, in all solicitations or 
advertisements for employees placed by on behalf of the 
Concessioner, state that all qualified applicants will receive 
consideration for employment without regard to race, color, 
religion, sex, age, national origin, or disabling condition.
    (3) The Concessioner will send to each labor union or 
representative of workers with which the Concessioner has a 
collective bargaining agreement or other contract or understanding, 
a notice, to be provided by the Secretary, advising the labor union 
or workers' representative of the Concessioner's commitments under 
Section 202 of Executive Order No. 11246 of September 24, 1965, as 
amended by Executive Order No. 11375 of October 13, 1967, and shall 
post copies of the notice in conspicuous places available to 
employees and applicants for employment.
    (4) Within 120 days of the commencement of a contract every 
Government contractor or subcontractor holding a contract that

[[Page 44907]]

generates gross receipts which exceed $50,000 and having 50 or more 
employees shall prepare and maintain an affirmative action program 
at each establishment which shall set forth the contractor's 
policies, practices, and procedures in accordance with the 
affirmative action program requirement.
    (5) The Concessioner will comply with all provisions of 
Executive Order No. 11246 of September 24, 1965, as amended by 
Executive Order No. 11375 of October 13, 1967, and of the rules, 
regulations, and relevant orders of the Secretary of Labor.
    (6) The Concessioner will furnish all information and reports 
required by Executive Order No. 11246 of September 24, 1965, as 
amended by Executive Order No. 11375 of October 13, 1967, and by the 
rules, regulations, and orders of the Secretary of Labor, or 
pursuant thereto, and will permit access to the Concessioner's 
books, records, and accounts by the Secretary of the Interior and 
the Secretary of Labor for purposes of investigation to ascertain 
compliance with such rules, regulations, and orders.
    (7) In the event of the Concessioner's noncompliance with the 
nondiscrimination clauses of this CONTRACT or with any of such 
rules, regulations, or orders, this CONTRACT may be canceled, 
terminated or suspended in whole or in part and the Concessioner may 
be declared ineligible for further Government concession contracts 
in accordance with procedures authorized in Executive Order No. 
11246 of September 24, 1965, as amended by Executive Order No. 11375 
of October 13, 1967, and such other sanctions may be imposed and 
remedies invoked as provided in Executive Order No. 11246 of 
September 24, 1965, as amended by Executive Order No. 11375 of 
October 13, 1967, or by rule, regulation, or order of the Secretary 
of Labor, or as otherwise provided by law.
    (8) The Concessioner will include the provisions of paragraphs 
(1) through (7) in every subcontract or purchase order unless 
exempted by rules, regulations, or orders of the Secretary of Labor 
issued pursuant to Section 204 of Executive Order No. 11246 of 
September 24, 1965, as amended by Executive Order No. 11375 of 
October 13, 1967, so that such provisions will be binding upon each 
subcontractor or vendor. The Concessioner will take such action with 
respect to any subcontract or purchase order as the Secretary may 
direct as a means of enforcing such provisions, including sanctions 
for noncompliance: Provided, however, that in the event the 
Concessioner becomes involved in, or is threatened with, litigation 
with a subcontractor or vendor as a result of such direction by the 
Secretary, the Concessioner may request the United States to enter 
into such litigation to protect the interests of the United States.

B. Construction, Repair, and Similar Contracts

    The preceding provisions A(1) through A(8) governing performance 
of work under this CONTRACT, as set out in Section 202 of Executive 
Order No. 11246 of September 24, 1965, as amended by Executive Order 
No. 11375 of October 13, 1967, shall be applicable to this CONTRACT, 
and shall be included in all contracts executed by the Concessioner 
for the performance of construction, repair, and similar work 
contemplated by this CONTRACT, and for that purpose the term 
``CONTRACT'' shall be deemed to refer to this instrument and to 
contracts awarded by the Concessioner and the term ``Concessioner'' 
shall be deemed to refer to the Concessioner and to contractors 
awarded contacts by the Concessioner.

C. Facilities

    (1) Definitions: As used herein:
    (i) Concessioner shall mean the Concessioner and its employees, 
agents, lessees, sublessees, and contractors, and the successors in 
interest of the Concessioner;
    (ii) facility shall mean any and all services, facilities, 
privileges, accommodations, or activities available to the general 
public and permitted by this agreement.
    (2) The Concessioner is prohibited from:
    (i) Publicizing facilities operated hereunder in any manner that 
would directly or inferentially reflect upon or question the 
acceptability of any person because of race, color, religion, sex, 
age, national origin, or disabling condition;
    (ii) Discriminating by segregation or other means against any 
person.

Section II: Accessibility

    Title V, Section 504, of the Rehabilitation Act of 1973, as 
amended in 1978, requires that action be taken to assure that any 
``program'' or ``service'' being provided to the general public be 
provided to the highest extent reasonably possible to individuals 
who are mobility impaired, hearing impaired, and visually impaired. 
It does not require architectural access to every building or 
facility, but only that the service or program can be provided 
somewhere in an accessible location. It also allows for a wide range 
of methods and techniques for achieving the intent of the law, and 
calls for consultation with disabled persons in determining what is 
reasonable and feasible.
    No handicapped person shall, because a Concessioner's facilities 
are inaccessible to or unusable by handicapped persons, be denied 
the benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity receiving 
Federal financial assistance or conducted by any Executive agency or 
by the U.S. Postal Service.

A. Discrimination Prohibited

    A Concessioner, in providing any aid, benefit, or service, may 
not directly or through contractual, licensing, or other 
arrangements, on the basis of handicap:
    (1) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (2) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is 
not equal to that afforded others;
    (3) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective as that provided to others;
    (4) Provide different or separate aids, benefits, or services to 
handicapped persons or to any class of handicapped persons unless 
such action is necessary to provide qualified handicapped persons 
with aid, benefits, or services that are as effective as those 
provided to others;
    (5) Aid or perpetuate discrimination against a qualified 
handicapped person by providing significant assistance to an agency, 
organization, or person that discriminates on the basis of handicap 
in providing any aid, benefit, or service to beneficiaries of the 
recipient's program;
    (6) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (7) Otherwise limit a qualified handicapped person in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed 
by others receiving an aid, benefit, or service.

B. Existing Facilities

    A Concessioner shall operate each program or activity so that 
the program or activity, when viewed in its entirety, is readily 
accessible to and usable by handicapped persons. This paragraph does 
not require a Concessioner to make each of its existing facilities 
or every part of a facility accessible to and usable by handicapped 
persons.

Exhibit C--Assigned Land and Real Property Improvements (Concession 
Facilities)

    Land Assigned: Land is assigned in accordance with the 
boundaries shown on the following map[s]:

    Real Property Improvements Assigned: The following real property 
improvements are assigned to the concessioner for use in conducting 
its operations under this CONTRACT:

Building Number  Description

    Approved, effective______, 20______.
By:-------------------------------------------------------------------
Regional Director, ______ Region

Exhibit D--Assigned Government Personal Property

    Government personal property is assigned to the Concessioner for 
the purposes of this CONTRACT as follows:

Property Number  Description of Item

    Effective, this______ day of ______, 20______.
By:-------------------------------------------------------------------
Regional Director, ______ Region

Exhibit E--Maintenance Plan

I. Introduction

    This Maintenance Plan between ______ (hereinafter referred to as 
the ``Concessioner'') and [Park Unit Name], National Park Service 
(hereinafter referred to as the ``Service'') shall serve as a 
supplement to Concession Contract CC-xxxxnnnn-yy (hereinafter 
referred to as the ``CONTRACT''). It sets forth the maintenance 
responsibilities of the Concessioner and the Service with regard to 
those lands and facilities within [Park Unit Name] which are 
assigned to the Concessioner for the purposes authorized by the 
CONTRACT.
    In the event of any apparent conflict between the terms of the 
CONTRACT and this Maintenance Plan, the terms of the CONTRACT, 
including its designations and amendments, shall prevail.

[[Page 44908]]

    This plan shall remain in effect until superseded or amended. It 
will be reviewed annually by the Superintendent in consultation with 
the Concessioner and revised as determined necessary by the 
Superintendent of [Park Unit Name]. Revisions may not be 
inconsistent with the terms and conditions of the main body of this 
CONTRACT. Revisions must be reasonable and in furtherance of the 
purposes of this CONTRACT.

    [From this point on, this document is tailored to the 
requirements of each individual park.]

Exhibit F--Insurance Requirements

I. Insurance Requirements

    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 the CONTRACT:

II. Liability Insurance

    The following Liability Coverages are to be maintained at a 
minimum, all of which are to be written on an occurrence basis only. 
The Concessioner may attain the limits specified below by means of 
supplementing the respective coverage(s) with Excess or Excess 
``Umbrella'' Liability.

A. Commercial General Liability

    1. Coverage will be provided for bodily injury, property damage, 
personal or advertising injury liability (and must include 
Contractual Liability and Products/Completed Operations Liability).

Bodily Injury and Property Damage Limit
Products/Completed Operations Limit
Personal Injury & Advertising Injury Limit
General Aggregate
Fire Damage Legal Liability ``per fire''

    2. The liability coverages may not contain the following 
exclusions/limitations:

a. Athletic or Sports Participants
b. Products/Completed Operations
c. Personal Injury or Advertising Injury exclusion or limitation
d. Contractual Liability limitation
e. Explosion, Collapse and Underground Property Damage exclusion
f. Total Pollution exclusion
g. Watercraft limitations affecting the use of watercraft in the 
course of the concessioner's operations (unless separate Watercraft 
coverage is maintained)

    3. For all lodging facilities and other indoor facilities where 
there may be a large concentration of people, the pollution 
exclusion may be amended so that it does not apply to the smoke, 
fumes, vapor or soot from equipment used to heat the building.
    4. If the policy insures more than one location, the General 
Aggregate limit must be amended to apply separately to each 
location, or, at least, separately to the appropriate NPS 
location(s).

B. Automobile Liability

    Coverage will be provided for bodily injury or property damage 
arising out of the ownership, maintenance or use of ``any auto,'' 
Symbol 1. (Where there are no owned autos, coverage applicable to 
``hired'' and ``non-owned'' autos, ``Symbols 8 & 9,'' shall be 
maintained.)

Each Accident Limit

C. Liquor Liability (if applicable)

    Coverage will be provided for bodily injury or property damage 
including damages for care, loss of services, or loss of support 
arising out of the selling, serving or furnishing of any alcoholic 
beverage.

Each Common Cause Limit
Aggregate Limit

D. Watercraft Liability (or Protection & Indemnity) (if applicable)

    Coverage will be provided for bodily injury or property damage 
arising out of the use of any watercraft.

Each Occurrence Limit

E. Aircraft Liability (if applicable)

    Coverage will be provided for bodily injury or property damage 
arising out of the use of any aircraft.

Each Person Limit
Property Damage Limit
Each Accident Limit

F. Garage Liability (if applicable)

    This coverage is not required, but may be used in place of 
Commercial General Liability and Auto Liability coverages for some 
operations. Coverage will be provided for bodily injury, property 
damage, personal or advertising injury liability arising out of 
garage operations (including products/completed operations and 
contractual liability) as well as bodily injury and property damage 
arising out of the use of automobiles.

Each Accident Limits--Garage Operations
Auto Only
Other Than Auto Only
Personal Injury & Advertising
Injury Limit
Fire Damage Legal Liability ``per fire''
Aggregate Limit--Garage Operations
Other Than Auto Only

    If owned vehicles are involved, Liability coverage should be 
applicable to ``any auto'' (``Symbol 21'') otherwise, coverage 
applicable to ``hired'' and ``non-owned'' autos (``Symbols 28 & 
29'') should be maintained.

G. Excess Liability or Excess ``Umbrella'' Liability

    This coverage is not required, but may be used to supplement any 
of the above Liability coverage policies in order to arrive at the 
required minimum limit of liability. If maintained, coverage will be 
provided for bodily injury, property damage, personal or advertising 
injury liability in excess of scheduled underlying insurance. In 
addition, coverage shall be at least as broad as that provided by 
underlying insurance policies and the limits of underlying insurance 
shall be sufficient to prevent any gap between such minimum limits 
and the attachment point of the coverage afforded under the Excess 
Liability or Excess ``Umbrella'' Liability policy.

H. Care, Custody and Control--Legal Liability (Describe Specific 
Coverage)

    Coverage will be provided for damage to property in the care, 
custody or control of the concessioner.

Any One Loss

I. Environmental Impairment Liability

    Coverage will be provided for bodily injury, personal injury or 
property damage arising out of pollutants or contaminants (on site 
and/or offsite).

Each Occurrence or Each Claim Limit
Aggregate Limit

J. Special Provisions for Use of Aggregate Policies

    At such time as the aggregate limit of any required policy is 
(or if it appears that it will be) reduced or exhausted, the 
concessioner may be required to reinstate such limit or purchase 
additional coverage limits.

K. Self-Insured Retentions

    Self-insured retentions on any of the above described Liability 
insurance policies (other than Excess ``Umbrella'' Liability, if 
maintained) may not exceed $5,000.

L. Workers Compensation & Employers' Liability

    Coverage will comply with the statutory requirements of the 
state(s) in which the concessioner operates.

III. Property Insurance

A. Building(s) and/or Contents Coverage

    1. Insurance shall cover buildings, structures, improvements & 
betterments and/or contents for all Concession Facilities, as more 
specifically described in Exhibit D of this CONTRACT.
    2. Coverage shall apply on an ``All Risks'' or ``Special 
Coverage'' basis.
    3. The policy shall provide for loss recovery on a Replacement 
Cost basis.
    4. The amount of insurance should represent no less than 90% of 
the Replacement Cost value of the insured property.
    5. The coinsurance provision, if any, shall be waived or 
suspended by an Agreed Amount or Agreed Value clause.
    6. Coverage is to be provided on a blanket basis.
    7. The Vacancy restriction, if any, must be eliminated for 
property that will be vacant beyond any vacancy time period 
specified in the policy.
    8. Flood Coverage shall be maintained with a limit of not less 
than $
    9. Earthquake Coverage shall be maintained with a limit of not 
less than $
    10. Ordinance or Law Coverage shall be maintained with a limit 
of not less than $

B. Boiler & Machinery Coverage

    1. Insurance shall apply to all pressure objects within 
Concession Facilities.
    2. The policy shall provide for loss recovery on a Replacement 
Cost basis.
    3. The amount of insurance should represent no less than 75% of 
the Replacement Cost value of the insured property.

[[Page 44909]]

    4. The coinsurance provision, if any, shall be waived or 
suspended by an Agreed Amount or Agreed Value clause.
    5. Coverage is to be provided on a blanket basis.
    6. If insurance is written with a different insurer than the 
Building(s) and Contents insurance, both the Property and Boiler 
insurance policies must be endorsed with a joint loss agreement.
    7. Ordinance or Law Coverage shall be maintained with a limit of 
not less than $

C. Builders Risk Coverage

    1. Insurance shall cover new buildings or structures under 
construction at the Concession Facilities, and include coverage for 
property that has or will become a part of the project while such 
property is at the project site, at temporary off-site storage and 
while in transit. Coverage should also apply to temporary structures 
such as scaffolding and construction forms.
    2. Coverage shall apply on an ``All Risks'' or ``Special 
Coverage'' basis.
    3. The policy shall provide for loss recovery on a Replacement 
Cost basis.
    4. The amount of insurance should represent no less than 90% of 
the Replacement Cost value of the insured property.
    5. The coinsurance provision, if any, shall be waived or 
suspended by an Agreed Amount or Agreed Value clause.
    6. Any occupancy restriction must be eliminated.
    7. Any collapse exclusion must be eliminated.
    8. Any exclusion for loss caused by faulty workmanship must be 
eliminated.
    9. Flood Coverage shall be maintained with a limit of not less 
than $
    10. Earthquake Coverage shall be maintained with a limit of not 
less than $

D. Business Interruption and/or Expense

    1. Business Interruption insurance, if maintained by the 
Concessioner, should cover the loss of income and continuation of 
fixed expenses in the event of damage to or loss of Concession 
Facilities. Extra Expense insurance shall cover the extra expenses 
above normal operating expenses to continue operations in the event 
of damage or loss to covered property.

E. Deductibles

    Property Insurance coverages described above may be subject to 
deductibles as follows:
    1. Direct Damage deductibles shall not exceed the lesser of 10% 
of the amount of insurance or $25,000 (except Flood & Earthquake 
coverage may be subject to deductibles not exceeding $50,000).
    2. Extra Expense deductibles (when coverage is not combined with 
Business Interruption) shall not exceed $25,000.

F. Required Clauses

    1. Loss Payable Clause:
    A loss payable clause similar to the following must be added to 
Buildings and/or Contents, Boiler and Machinery, and Builders Risk 
policies:

``In accordance with Concession Contract No. ______ dated ______, 
between the United States of America and [the Concessioner] payment 
of insurance proceeds resulting from damage or loss of structures 
insured under this policy is to be disbursed directly to the 
Concessioner without requiring endorsement by the United States of 
America.''

IV. Construction Project Insurance

    Concessioners entering into contracts with outside contractors 
for various construction projects, including major renovation 
projects, rehabilitation projects, additions or new buildings/
facilities will be responsible to ensure that all contractors 
retained for such work maintain an insurance program that adequately 
covers the construction project.
    The insurance maintained by the construction and construction-
related contractors shall comply with the insurance requirements 
stated herein (for Commercial General Liability, Automobile 
Liability, Workers' Compensation and, if professional services are 
involved, Professional Liability). Where appropriate, the interests 
of the Concessioner and the United States shall be covered in the 
same fashion as required in the Commercial Operator Insurance 
Requirements. The amounts/limits of the required coverages shall be 
determined in consultation with the Director taking into 
consideration the scope and size of the project.

V. Insurance Company Minimum Standards

    All insurance companies providing the above described insurance 
coverages must meet the minimum standards set forth below:
    1. All insurers for all coverages must be rated no lower than A- 
by the most recent edition of Best's Key Rating Guide (Property-
Casualty edition).
    2. All insurers for all coverages must have a Best's Financial 
Size Category of at least VIII according to the most recent edition 
of Best's Key Rating Guide (Property-Casualty edition).
    3. All insurers must be admitted (licensed) in the state in 
which the concessioner is domiciled.

VI. Certificates of Insurance

    All certificates of Insurance required by this CONTRACT shall be 
completed in sufficient detail to allow easy identification of the 
coverages, limits, and coverage amendments that are described above. 
In addition, the insurance companies must be accurately listed along 
with their A.M. Best Identification Number (``AMB#''). The name, 
address and telephone number of the issuing insurance agent or 
broker must be clearly shown on the certificate of insurance as 
well.
    Due to the space limitations of most standard certificates of 
insurance, it is expected that an addendum will be attached to the 
appropriate certificate(s) in order to provide the space needed to 
show the required information.
    In addition to providing certificates of insurance, the 
concessioner, upon written request of the Director, shall provide 
the Director with a complete copy of any of the insurance policies 
(or endorsements thereto) required herein to be maintained by the 
concessioner.

VII. Statutory Limits

    In the event that a statutorily required limit exceeds a limit 
required herein, the higher statutorily required limit shall be 
considered the minimum to be maintained.

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---------------------------------------------------------------

Concession Contract

Table of Contents

Identification of the Parties

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, and Policy Compliance

A. Legal, Regulatory, and Policy Compliance
B. Notice
C. How and Where to Send Notice

Sec. 6  Environmental and Cultural Protection

A. Environmental Management Objectives
B. Environmental Management Program
C. Environmental Management Measurement
D. Environmental Data, Reports, Notifications, and Approvals
E. Corrective Action
F. Indemnification and Cost Recovery for Concessioner Environmental 
Activities
G. Weed and Pest Management
H. Protection of Cultural and Archeological Resources

Sec. 7  Fees

A. Franchise Fee
B. Payments Due
C. Interest
D. Adjustment of Franchise Fee [OPTIONAL]

Sec. 8  Indemnification and Insurance

A. Indemnification
B. Insurance in General
C. Commercial Public Liability

Sec. 9.  Bonds and Liens

A. Bonds

[[Page 44910]]

B. Lien

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
B. Environmental Reporting
C. Miscellaneous Reports and Data.

Sec. 12  Suspension, Termination, or Expiration

A. Suspension
B. Termination
C. Notice of Bankruptcy or Insolvency
D. Requirements in the Event of Termination or Expiration

Sec. 13  Assignment, Sale or Encumbrance of Interests

Sec. 14  General Provisions

Sec. 15  Special Provisions [Optional]

Exhibits

Exhibit A: Assigned Government Personal Property
Exhibit B: Operating and Maintenance Plan [OPTIONAL]
Exhibit C: Nondiscrimination.
Exhibit D: Insurance Requirements

[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 
______ (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 ______ a 
partnership organized under the laws of the State of ______, 
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 wildlife 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; and
    Whereas, the Director desires the Concessioner to conduct these 
visitor services in a manner that demonstrates sound environmental 
management, stewardship, and leadership;
    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 (Pub.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 until its expiration on ______, 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 (e.g., 36 CFR 
Part 51), 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 protection of 
public health and safety.
    (b) ``Area'' means the property within the boundaries of [Name of 
Park Unit].
    (c) ``Best Management Practices'' or ``BMPs'' are policies and 
practices that apply the most current and advanced means and 
technologies available to the Concessioner to undertake and maintain a 
superior level of environmental performance reasonable in light of the 
circumstances of the operations conducted under this CONTRACT. BMPs are 
expected to change from time to time as technology evolves with a goal 
of sustainability of the Concessioner's operations. Sustainability of 
operations refers to operations that have a restorative or net positive 
impact on the environment.
    (d) ``Concession Facilities'' shall mean all Area lands assigned to 
the Concessioner under this CONTRACT and all real property improvements 
assigned to the Concessioner under this CONTRACT. The United States 
retains title and ownership to all Concession Facilities. (4)
    (e) ``Days'' shall mean calendar days.
    (f) ``Director'' means the Director of the National Park Service, 
acting on behalf of the Secretary of the Interior and the United 
States, and his duly authorized representatives.
    (g) ``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.
    (h) ``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:
    (1) Intracompany earnings on account of charges to other 
departments of the operation (such as laundry);
    (5) Charges for employees' meals, lodgings, and transportation;
    (6) Cash discounts on purchases;
    (7) Cash discounts on sales;
    (5) Returned sales and allowances;
    (6) Interest on money loaned or in bank accounts;
    (7) Income from investments;
    (8) Income from subsidiary companies outside of the Area;
    (9) Sale of property other than that purchased in the regular 
course of business for the purpose of resale;
    (10) Sales and excise taxes that are added as separate charges to 
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;
    (11) Receipts from the sale of handicrafts that have been approved 
for sale by the Director as constituting authentic American Indian, 
Alaskan Native, Native Samoan, or Native Hawaiian handicrafts.

[[Page 44911]]

    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.
    (i) ``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 a 
subconcession contract. A subconcessioner will report all of its gross 
receipts to the Concessioner without allowances, exclusions, or 
deductions of any kind or nature.
    (j) ``Subconcessioner'' means a third party that, with the approval 
of the Director, has been granted by a concessioner rights to operate 
under a concession contract (or any portion thereof), whether in 
consideration of a percentage of revenues or otherwise.
    (k) ``Superintendent'' means the manager of the Area.
    (l) ``Visitor services'' means the accommodations, facilities and 
services that the Concessioner is required and/or 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:

[Provide a 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.]

    The Concessioner shall not be authorized to construct any Capital 
Improvements (as defined in Applicable Laws including without 
limitation 36 CFR Part 51) upon Area lands. The Concessioner shall not 
obtain a Leasehold Surrender Interest (as defined in Applicable Laws, 
including without limitation 36 CFR Part 51) or other compensable 
interest in Capital Improvements constructed or installed in violation 
of this CONTRACT.
(b) Operation, Maintenance and Quality of Operation
    (1) The Concessioner shall provide, operate and maintain the 
required and authorized visitor services in 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, including without limitation removable equipment, and goods, 
for the Concessioner's use in the performance of this CONTRACT. The 
Director hereby assigns government personal property listed in Exhibit 
A to the Concessioner as of the effective date of this CONTRACT. This 
Exhibit A 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 
assigned to it and shall be responsible for maintaining the property 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 
B. The Director in his discretion, after consultation with the 
Concessioner, may make reasonable modifications to the initial 
Operating and Maintenance Plan that are in furtherance of the purposes 
of this CONTRACT and are not inconsistent with the terms and conditions 
of the main body of this CONTRACT.
(e) 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 promotional material, regardless of media format (i.e., 
printed, electronic, broadcast media), provided to the public by the 
Concessioner in connection with the services provided under this 
CONTRACT 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 
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 Applicable Laws and 
guidelines promulgated by the Director from time to time.
(f) Impartiality as to Rates and Services
    (1) Subject to Section (f)(2) and (f)(3), 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 C.
    (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 the Concessioner's complimentary or reduced rate 
policies and practices as part of its rate approval process.
    (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

[[Page 44912]]

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 set forth in Exhibit C.
    (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 to whom an offer for employment may be extended 
to assure that they conform to the hiring policies established by the 
Concessioner.
    (e) 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.
    (f) 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 correct the situation.
    (g) The Concessioner shall maintain, to the greatest extent 
possible, a drug free environment, both in the workplace and in any 
Concessioner employee housing, within the Area.
    (h) 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.
    (i) 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 is found to be in violation of the prohibition on 
the unlawful manufacture, distribution, dispensing, possession, or use 
of a controlled substance.

Sec. 5. Legal, Regulatory, and 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 by the Concessioner, including its 
employees, agents or contractors, 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 Management Objectives
    The Concessioner shall meet the following environmental management 
objectives (hereinafter ``Environmental Management Objectives'') in the 
conduct of its operations under this CONTRACT:
    (1) The Concessioner, including its employees, agents and 
contractors, shall comply with all Applicable Laws pertaining to the 
protection of human health and the environment.
    (2) The Concessioner shall incorporate Best Management Practices 
(BMPs) in its operation, construction, maintenance, acquisition, 
provision of visitor services, and other activities under this 
CONTRACT.
(b) Environmental Management Program
    (1) The Concessioner shall develop, document, implement, and comply 
fully with, to the satisfaction of the Director, a comprehensive 
written Environmental Management Program (EMP) to achieve the 
Environmental Management Objectives. The initial EMP shall be developed 
and submitted to the Director for approval within sixty days of the 
effective date of this CONTRACT. The Concessioner shall submit to the 
Director for approval a proposed updated EMP annually.
    (2) The EMP shall account for all activities with potential 
environmental impacts conducted by the Concessioner or to which the 
Concessioner contributes. The scope and complexity of the EMP may vary 
based on the type, size and number of Concessioner activities under 
this CONTRACT.
    (3) The EMP shall include, without limitation, the following 
elements:
    (i) Policy. The EMP shall provide a clear statement of the 
Concessioner's commitment to the Environmental Management Objectives.
    (ii) Goals and Targets. The EMP shall identify environmental goals 
established by the Concessioner consistent with all Environmental 
Management Objectives. The EMP shall also identify specific targets 
(i.e. measurable results and schedules) to achieve these goals.
    (iii) Responsibilities and Accountability. The EMP shall identify 
environmental responsibilities for Concessioner employees and

[[Page 44913]]

contractors. The EMP shall include the designation of an environmental 
program manager. The EMP shall include procedures for the Concessioner 
to implement the evaluation of employee and contractor performance 
against these environmental responsibilities.
    (iv) Documentation. The EMP shall identify plans, procedures, 
manuals, and other documentation maintained by the Concessioner to meet 
the Environmental Management Objectives.
    (v) Documentation Control and Information Management System. The 
EMP shall describe (and implement) document control and information 
management systems to maintain knowledge of Applicable Laws and BMPs. 
In addition, the EMP shall identify how the Concessioner will manage 
environmental information, including without limitation, plans, 
permits, certifications, reports, and correspondence.
    (vi) Reporting. The EMP shall describe (and implement) a system for 
reporting environmental information on a routine and emergency basis, 
including providing reports to the Director under this CONTRACT.
    (vii) Communication. The EMP shall describe how the environmental 
policy, goals, targets, responsibilities and procedures will be 
communicated throughout the Concessioner's organization.
    (viii) Training. The EMP shall describe the environmental training 
program for the Concessioner, including identification of staff to be 
trained, training subjects, frequency of training and how training will 
be documented.
    (ix) Monitoring, Measurement, and Corrective Action. The EMP shall 
describe how the Concessioner will comply with the EMP and how the 
Concessioner will self-assess its performance under the EMP, a least 
annually, in a manner consistent with NPS protocol regarding audit of 
NPS operations. The self-assessment should ensure the Concessioner's 
conformance with the Environmental Management Objectives and measure 
performance against environmental goals and targets. The EMP shall also 
describe procedures to be taken by the Concessioner to correct any 
deficiencies identified by the self-assessment.
(c) Environmental Performance Measurement
    The Concessioner shall be evaluated by the Director on its 
environmental performance under this CONTRACT, including, without 
limitation, compliance with the approved EMP, on at least an annual 
basis.
(d) Environmental Data, Reports, Notifications, and Approvals
    (1) Inventory of Hazardous Substances and Inventory of Waste 
Streams. The Concessioner shall submit to the Director, at least 
annually, an inventory of federal Occupational Safety and Health 
Administration (OSHA) designated hazardous chemicals used and stored in 
the Area by the Concessioner. The Director may prohibit the use of any 
OSHA hazardous chemical by the Concessioner in operations under this 
CONTRACT. The Concessioner shall obtain the Director's approval prior 
to using any extremely hazardous substance, as defined in the Emergency 
Planning and Community Right to Know Act of 1986, in operations under 
this CONTRACT. The Concessioner shall also submit to the Director, at 
least annually, an inventory of all waste streams generated by the 
Concessioner under this CONTRACT. Such inventory shall include any 
documents, reports, monitoring data, manifests, and other documentation 
required by Applicable Laws regarding waste streams.
    (2) Reports. The Concessioner shall submit to the Director copies 
of all documents, reports, monitoring data, manifests, and other 
documentation required under Applicable Laws to be submitted to 
regulatory agencies. The Concessioner shall also submit to the Director 
any environmental plans for which coordination with Area operations are 
necessary and appropriate, as determined by the Director in accordance 
with Applicable Laws.
    (3) Notification of Releases. The Concessioner shall give the 
Director immediate written notice of any discharge, release or 
threatened release (as these terms are defined by Applicable Laws) 
within or at the vicinity of the Area, (whether solid, semi-solid, 
liquid or gaseous in nature) of any hazardous or toxic substance, 
material, or waste of any kind, including, without limitation, building 
materials such as asbestos, or any contaminant, pollutant, petroleum, 
petroleum product or petroleum by-product.
    (4) Notice of Violation. The Concessioner shall give the Director 
in writing immediate notice of any written threatened or actual notice 
of violation from other regulatory agencies of any Applicable Law 
arising out of the activities of the Concessioner, its agents or 
employees.
    (5) Communication with Regulatory Agencies. The Concessioner shall 
provide timely written advance notice to the Director of 
communications, including without limitation, meetings, audits, 
inspections, hearings and other proceedings, between regulatory 
agencies and the Concessioner related to compliance with Applicable 
Laws concerning operations under this CONTRACT. The Concessioner shall 
also provide to the Director any written materials prepared or received 
by the Concessioner in advance of or subsequent to any such 
communications. The Concessioner shall allow the Director to 
participate in any such communications. The Concessioner shall also 
provide timely notice to the Director following any unplanned 
communications between regulatory agencies and the Concessioner.
(e) Corrective Action
    (1) The Concessioner, at its sole cost and expense, shall promptly 
control and contain any discharge, release or threatened release, as 
set forth in this section, or any threatened or actual violation, as 
set forth in this section, arising in connection with the 
Concessioner's operations under this CONTRACT, including, but not 
limited to, payment of any fines or penalties imposed by appropriate 
agencies. Following the prompt control or containment of any release, 
discharge or violation, the Concessioner shall take all response 
actions necessary to remediate the release, discharge or violation, and 
to protect human health and the environment.
    (2) 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, or transported onto or into the Area by the Concessioner to 
ensure that the Area remains in good condition.
(f) Indemnification and Cost Recovery for Concessioner Environmental 
Activities
    (1) The Concessioner shall indemnify the United States in 
accordance with Section 8 of this CONTRACT from all losses, claims, 
damages, environmental injuries, expenses, response costs, allegations 
or judgments (including, without limitation, fines and penalties) and 
expenses (including, without limitation, attorneys fees and experts' 
fees) arising out of the activities of the Concessioner, its employees, 
agents and contractors pursuant to this section. Such indemnification 
shall survive termination or expiration of this CONTRACT.

[[Page 44914]]

    (2) If the Concessioner does not promptly contain and remediate an 
unauthorized discharge or release arising out of the activities of the 
Concessioner, its employees, agents and contractors, as set forth in 
this section, or correct any environmental self-assessment finding of 
non-compliance, in full compliance with Applicable Laws, the Director 
may, in its sole discretion and after notice to the Concessioner, take 
any such action consistent with Applicable Laws as the Director deems 
necessary to abate, mitigate, remediate, or otherwise respond to such 
release or discharge, or take corrective action on the environmental 
self-assessment finding. The Concessioner shall be liable for and shall 
pay to the Director any costs of the Director associated with such 
action upon demand. Nothing in this section shall preclude the 
Concessioner from seeking to recover costs from a responsible third 
party.
(g) Weed and Pest Management
    The Concessioner shall be responsible for managing weeds, and 
through an integrated pest management program, harmful insects, rats, 
mice and other pests on Concession Facilities assigned to the 
Concessioner under this CONTRACT. All such weed and pest management 
activities shall be in accordance with Applicable Laws and guidelines 
established by the Director.
(j) 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, agents and 
contractors, except in accordance with Applicable Laws, and only with 
the prior approval of the Director. Discoveries of any archeological 
resources by the 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) Neither the Concessioner nor the Director shall have a right to 
an adjustment of the fees except as provided below. The Concessioner 
has no right to waiver of the fee under any circumstances.
(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. In the event of 
termination or expiration of this CONTRACT, overpayments will first be 
offset against any amounts due and owing the Government, and the 
remainder will be paid to the Concessioner.
    (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.
(d) Adjustment of Franchise Fee
[OPTIONAL-Include only if contract term is greater than 5 years.]

    (1) The Concessioner or the Director may request, in the event that 
either considers that extraordinary, unanticipated changes have 
occurred after the effective date of this CONTRACT, a reconsideration 
and possible subsequent adjustment of the franchise fee established in 
this section. For the purposes of this section, the phrase 
``extraordinary, unanticipated changes'' shall mean extraordinary, 
unanticipated changes from the conditions existing or reasonably 
anticipated before the effective date of this CONTRACT which have or 
will significantly affect the probable value of the privileges granted 
to the Concessioner by this CONTRACT. For the purposes of this section, 
the phrase ``probable value'' means a reasonable opportunity for net 
profit in relation to capital invested and the obligations of this 
CONTRACT.
    (2) The Concessioner or the Director must make a request for a 
reconsideration by mailing, within sixty (60) days from the date that 
the party becomes aware, or should have become aware, of the possible 
extraordinary, unanticipated changes, a written notice to the other 
party that includes a description of the possible extraordinary, 
unanticipated changes and why the party believes they have affected or 
will significantly affect the probable value of the privileges granted 
by this CONTRACT.
    (3) If the Concessioner and the Director agree that extraordinary, 
unanticipated changes have occurred, the Concessioner and the Director 
will undertake good faith negotiations as to an appropriate adjustment 
of the franchise fee.
    (4) The negotiation will last for a period of sixty (60) days from 
the date the Concessioner and the Director agree that extraordinary, 
unanticipated changes occurred. If the negotiation results in agreement 
as to an adjustment (up or down) of the franchise fee within this 
period, the franchise fee will be adjusted accordingly, prospectively 
as of the date of agreement.
    (5) If the negotiation does not result in agreement as to the 
adjustment of the franchise fee within this sixty (60) day period, then 
either the Concessioner or the Director may request binding arbitration 
to determine the adjustment to franchise fee in accordance with this 
section. Such a request for arbitration must be made by mailing written 
notice to the other party within fifteen (15) days of the expiration of 
the sixty (60) day period.
    (6) Within thirty (30) days of receipt of such a written notice, 
the Concessioner and the Director shall each select an arbiter. These 
two arbiters, within thirty (30) days of selection, must agree to the 
selection of a third arbiter to complete the arbitration panel. Unless 
otherwise agreed by the parties, the arbitration panel shall establish 
the procedures of the arbitration. Such procedures must provide each 
party a fair and equal opportunity to present its position on the 
matter to the arbitration panel.

[[Page 44915]]

    (7) The arbitration panel shall consider the written submissions 
and any oral presentations made by the Concessioner and the Director 
and provide its decision on an adjusted franchise fee (up, down or 
unchanged) that is consistent with the probable value of the privileges 
granted by this CONTRACT within sixty (60) days of the presentations.
    (8) Any adjustment to the franchise fee resulting from this section 
shall be prospective only.
    (10) Any adjustment to the franchise fee will be embodied in an 
amendment to this CONTRACT.
    (10) During the pendency of the process described in this section, 
the Concessioner shall continue to make the established franchise fee 
payments required by this CONTRACT.

Sec. 8. 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 connected with or arising out of the 
activities of the Concessioner, its employees, agents or contractors 
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 as determined by the Director. The initial insurance 
requirements are set forth below and in Exhibit D. Any changed or 
additional requirements that the Director determines necessary must be 
reasonable and consistent with the types and coverage amounts of 
insurance a prudent businessperson would purchase in similar 
circumstances. 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 immediate written notice of 
any material change in the Concessioner's insurance program hereunder, 
including without limitation, cancellation of any required insurance 
coverages.
(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, agents or contractors, 
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 D. Furthermore, the commercial general liability package shall 
provide no less than the coverages and limits described in Exhibit D.
    (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 modify Exhibit D to revise the minimum 
required limits or to require additional types of insurance, provided 
that any additional requirements must be reasonable and consistent with 
the types of insurance a prudent businessperson would purchase in 
similar circumstances.

Sec. 9. Bonds

    The Director may require the Concessioner to furnish appropriate 
forms of bonds in amounts reasonable in the circumstances and 
acceptable to the Director, in order to ensure faithful performance of 
the Concessioner's obligations under this CONTRACT.

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, including but not 
limited to the Concessioner's repair and maintenance obligations. 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 accounts in such manner that there can be 
no diversion or concealment of profits or expenses in the operations 
authorized under this CONTRACT 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 one hundred twenty (120) 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 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 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.

[[Page 44916]]

(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 annual 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 8, the Concessioner shall, at the request 
of the Director, 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 immediate written 
notice of any material change in its insurance program, including 
without limitation, any cancellation of required insurance coverages.
(b) Environmental Reporting
    The Concessioner shall submit environmental reports as specified in 
Section 6 of this CONTRACT, and as otherwise required by the Director 
under the terms of 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, Termination, or Expiration

(a) Suspension
    The Director may temporarily suspend operations under this CONTRACT 
in whole or in part in order to protect Area visitors or to protect, 
conserve and preserve Area resources. No compensation of any nature 
shall be due the Concessioner by the Director 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 at any time in order 
to protect Area visitors, protect, conserve, and preserve Area 
resources, or to limit visitor services in the Area to those that 
continue to be necessary and appropriate.
    (2) The Director may terminate this CONTRACT if the Director 
determines that the Concessioner has materially 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 those 
visitor services required or authorized by the Director pursuant to 
this CONTRACT, the requirement to pay the established franchise fee, 
the requirement to prepare and comply with an Environmental Management 
Program 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, 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 (two or 
more) 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 12(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 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 immediate notice (within 
five (5) days) after the filing of 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, NPS considers that this CONTRACT is not a lease but an 
executory contract exempt from inclusion in assets of Concessioner 
pursuant to 11 U.S.C. 365.
(d) Requirements in the Event of Termination or Expiration
    (1) In the event of termination of this CONTRACT for any reason or 
expiration of this CONTRACT, no compensation of any nature shall be due 
the Concessioner in the event of a termination or expiration of this 
CONTRACT, 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, or upon its 
expiration, and except as otherwise provided in this section, the 
Concessioner shall, at the Concessioner's expense, promptly vacate the 
Area, remove all of the Concessioner's personal property, and repair 
any injury occasioned by removal of such property. The removal of such 
personal property must occur within thirty (30) days after the 
termination of this CONTRACT for any reason or its expiration (unless 
the Director in particular circumstances requires immediate removal). 
No compensation is due the Concessioner from the Director or a 
successor concessioner for the Concessioner's personal property used in 
operations under this CONTRACT. However, the Director or a successor 
concessioner may purchase such personal property from the Concessioner 
subject to mutually agreed upon terms. Personal property not

[[Page 44917]]

removed from the Area by the Concessioner in accordance with the terms 
of this CONTRACT shall be considered abandoned property subject to 
disposition by the Director, at full cost and expense of the 
Concessioner, in accordance with Applicable Laws. Any cost or expense 
incurred by the Director as a result of such disposition may be offset 
from any amounts owed to the Concessioner by the Director to the extent 
consistent with Applicable Laws.

Sec. 13. Assignment, Sale or Encumbrance of Interests

    (a) This CONTRACT is subject to the requirements of Applicable 
Laws, including, without limitation, 36 CFR Part 51, with respect to 
proposed assignments and encumbrances, as those terms are defined by 
Applicable Laws. Failure by the Concessioner to comply with Applicable 
Laws 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 Applicable Laws.
    (b) The Concessioner shall advise any person(s) or entity proposing 
to enter into a transaction which may be subject to Applicable Laws, 
including without limitation, 36 CFR Part 51, of the requirements of 
Applicable Law and this CONTRACT.

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 the terms of Applicable 
Laws.
    (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 provided by Applicable Laws.
    (c) Subconcession or other third party agreements, including 
management agreements, for the provision of visitor services required 
and/or authorized under this CONTRACT are not permitted.
    (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) This CONTRACT does not grant rights or benefits of any nature 
to any third party.
    (j) The invalidity of a specific provision of this CONTRACT shall 
not affect the validity of the remaining provisions of this CONTRACT.
    (k) Waiver by the Director or the Concessioner of any breach of any 
of the terms of this CONTRACT by the other party shall not be deemed to 
be a waiver or elimination of such term, nor of any subsequent breach 
of the same type, nor of any other term of the CONTRACT. The subsequent 
acceptance of any payment of money or other performance required by 
this CONTRACT shall not be deemed to be a waiver of any preceding 
breach of any term of the CONTRACT.
    (l) Claims against the Director (to the extent subject to 28 U.S.C. 
2514) arising from this CONTRACT shall be forfeited to the Director by 
any person who corruptly practices or attempts to practice any fraud 
against the United States in the proof, statement, establishment, or 
allowance thereof within the meaning of 28 U.S.C. 2514.

Section 15. 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

Exhibit A--Assigned Government Personal Property

    Government personal property is assigned to the Concessioner for 
the purposes of this CONTRACT as follows:

    Property Number    Description of Item
    Effective, this______day of______, 20______.

By:-------------------------------------------------------------------
Regional Director,______Region

Exhibit B--Operating and Maintenance Plan

I. Introduction

    This Operating and Maintenance Plan between ______ (hereinafter 
referred to as the ``Concessioner'') and [Park Unit Name] 
(hereinafter referred to as the ``Service'') shall serve as a 
supplement to Concession Contract CC-xxxxnnnn-yy (hereinafter 
referred to as the ``CONTRACT''). It describes specific operating 
and maintenance responsibilities of the Concessioner and the Service 
with regard to those lands utilized by the Concessioner for the 
purposes authorized by the CONTRACT.
    In the event of any conflict between the terms of the CONTRACT 
and this Operating and Maintenance Plan, the terms of the CONTRACT, 
including its designations and amendments, shall prevail.
    This plan will be reviewed annually by the Superintendent in 
consultation with the Concessioner and revised as determined 
necessary by the Superintendent of [Park Unit Name].
    Any revisions shall not be inconsistent with the main body of 
this CONTRACT. Any revisions must be reasonable and in furtherance 
of the purposes of the CONTRACT.


[[Page 44918]]


    [From this point on, this document is tailored to the 
requirements of each individual park.]

Exhibit C--Nondiscrimination

Section I: Requirements Relating to Employment and Service to the 
Public

C. Employment

    During the performance of this CONTRACT the Concessioner agrees 
as follows:
    (1) The Concessioner will not discriminate against any employee 
or applicant for employment because of race, color, religion, sex, 
age, national origin, or disabling condition. The Concessioner will 
take affirmative action to ensure that applicants are employed, and 
that employees are treated during employment, without regard to 
their race, color, religion, sex, age, national origin, or disabling 
condition. Such action shall include, but not be limited to, the 
following: Employment upgrading, demotion, or transfer; recruitment 
or recruitment advertising; layoff or termination; rates of pay or 
other forms of compensation; and selection for training, including 
apprenticeship. The Concessioner agrees to post in conspicuous 
places, available to employees and applicants for employment, 
notices to be provided by the Secretary setting forth the provision 
of this nondiscrimination clause.
    (2) The Concessioner will, in all solicitations or 
advertisements for employees placed by on behalf of the 
Concessioner, state that all qualified applicants will receive 
consideration for employment without regard to race, color, 
religion, sex, age, national origin, or disabling condition.
    (3) The Concessioner will send to each labor union or 
representative of workers with which the Concessioner has a 
collective bargaining agreement or other contract or understanding, 
a notice, to be provided by the Secretary, advising the labor union 
or workers' representative of the Concessioner's commitments under 
Section 202 of Executive Order No. 11246 of September 24, 1965, as 
amended by Executive Order No. 11375 of October 13, 1967, and shall 
post copies of the notice in conspicuous places available to 
employees and applicants for employment.
    (4) Within 120 days of the commencement of a contract every 
Government contractor or subcontractor holding a contract that 
generates gross receipts which exceed $50,000 and having 50 or more 
employees shall prepare and maintain an affirmative action program 
at each establishment which shall set forth the contractor's 
policies, practices, and procedures in accordance with the 
affirmative action program requirement.
    (5) The Concessioner will comply with all provisions of 
Executive Order No. 11246 of September 24, 1965, as amended by 
Executive Order No. 11375 of October 13, 1967, and of the rules, 
regulations, and relevant orders of the Secretary of Labor.
    (6) The Concessioner will furnish all information and reports 
required by Executive Order No. 11246 of September 24, 1965, as 
amended by Executive Order No. 11375 of October 13, 1967, and by the 
rules, regulations, and orders of the Secretary of Labor, or 
pursuant thereto, and will permit access to the Concessioner's 
books, records, and accounts by the Secretary of the Interior and 
the Secretary of Labor for purposes of investigation to ascertain 
compliance with such rules, regulations, and orders.
    (7) In the event of the Concessioner's noncompliance with the 
nondiscrimination clauses of this CONTRACT or with any of such 
rules, regulations, or orders, this CONTRACT may be canceled, 
terminated or suspended in whole or in part and the Concessioner may 
be declared ineligible for further Government concession contracts 
in accordance with procedures authorized in Executive Order No. 
11246 of September 24, 1965, as amended by Executive Order No. 11375 
of October 13, 1967, and such other sanctions may be imposed and 
remedies invoked as provided in Executive Order No. 11246 of 
September 24, 1965, as amended by Executive Order No. 11375 of 
October 13, 1967, or by rule, regulation, or order of the Secretary 
of Labor, or as otherwise provided by law.
    (8) The Concessioner will include the provisions of paragraphs 
(1) through (7) in every subcontract or purchase order unless 
exempted by rules, regulations, or orders of the Secretary of Labor 
issued pursuant to Section 204 of Executive Order No. 11246 of 
September 24, 1965, as amended by Executive Order No. 11375 of 
October 13, 1967, so that such provisions will be binding upon each 
subcontractor or vendor. The Concessioner will take such action with 
respect to any subcontract or purchase order as the Secretary may 
direct as a means of enforcing such provisions, including sanctions 
for noncompliance: Provided, however, that in the event the 
Concessioner becomes involved in, or is threatened with, litigation 
with a subcontractor or vendor as a result of such direction by the 
Secretary, the Concessioner may request the United States to enter 
into such litigation to protect the interests of the United States.

D. Construction, Repair, and Similar Contracts

    The preceding provisions A(1) through A(8) governing performance 
of work under this CONTRACT, as set out in Section 202 of Executive 
Order No. 11246 of September 24, 1965, as amended by Executive Order 
No. 11375 of October 13, 1967, shall be applicable to this CONTRACT, 
and shall be included in all contracts executed by the Concessioner 
for the performance of construction, repair, and similar work 
contemplated by this CONTRACT, and for that purpose the term 
``CONTRACT'' shall be deemed to refer to this instrument and to 
contracts awarded by the Concessioner and the term ``Concessioner'' 
shall be deemed to refer to the Concessioner and to contractors 
awarded contacts by the Concessioner.

C. Facilities

    (2) Definitions: As used herein:
    (k) Concessioner shall mean the Concessioner and its employees, 
agents, lessees, sublessees, and contractors, and the successors in 
interest of the Concessioner;
    (ii) Facility shall mean any and all services, facilities, 
privileges, accommodations, or activities available to the general 
public and permitted by this agreement.
    (2) The Concessioner is prohibited from:
    (j) Publicizing facilities operated hereunder in any manner that 
would directly or inferentially reflect upon or question the 
acceptability of any person because of race, color, religion, sex, 
age, national origin, or disabling condition;
    (ii) Discriminating by segregation or other means against any 
person.

Section II: Accessibility

    Title V, Section 504, of the Rehabilitation Act of 1973, as 
amended in 1978, requires that action be taken to assure that any 
``program'' or ``service'' being provided to the general public be 
provided to the highest extent reasonably possible to individuals 
who are mobility impaired, hearing impaired, and visually impaired. 
It does not require architectural access to every building or 
facility, but only that the service or program can be provided 
somewhere in an accessible location. It also allows for a wide range 
of methods and techniques for achieving the intent of the law, and 
calls for consultation with disabled persons in determining what is 
reasonable and feasible.
    No handicapped person shall, because a Concessioner's facilities 
are inaccessible to or unusable by handicapped persons, be denied 
the benefits of, be excluded from participation in, or otherwise be 
subjected to discrimination under any program or activity receiving 
Federal financial assistance or conducted by any Executive agency or 
by the U.S. Postal Service.

A. Discrimination Prohibited

    A Concessioner, in providing any aid, benefit, or service, may 
not directly or through contractual, licensing, or other 
arrangements, on the basis of handicap:
    (1) Deny a qualified handicapped person the opportunity to 
participate in or benefit from the aid, benefit, or service;
    (2) Afford a qualified handicapped person an opportunity to 
participate in or benefit from the aid, benefit, or service that is 
not equal to that afforded others;
    (3) Provide a qualified handicapped person with an aid, benefit, 
or service that is not as effective as that provided to others;
    (4) Provide different or separate aids, benefits, or services to 
handicapped persons or to any class of handicapped persons unless 
such action is necessary to provide qualified handicapped persons 
with aid, benefits, or services that are as effective as those 
provided to others;
    (5) Aid or perpetuate discrimination against a qualified 
handicapped person by providing significant assistance to an agency, 
organization, or person that discriminates on the basis of handicap 
in providing any aid, benefit, or service to beneficiaries of the 
recipient's program;
    (6) Deny a qualified handicapped person the opportunity to 
participate as a member of planning or advisory boards; or
    (7) Otherwise limit a qualified handicapped person in the 
enjoyment of any right, privilege, advantage, or opportunity enjoyed 
by others receiving an aid, benefit, or service.

B. Existing Facilities

    A Concessioner shall operate each program or activity so that 
the program or activity,

[[Page 44919]]

when viewed in its entirety, is readily accessible to and usable by 
handicapped persons. This paragraph does not require a Concessioner 
to make each of its existing facilities or every part of a facility 
accessible to and usable by handicapped persons.

Exhibit F--Insurance Requirements

I. Insurance Requirements

    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 the CONTRACT:

II. Liability Insurance

    The following Liability Coverages are to be maintained at a 
minimum, all of which are to be written on an occurrence basis only. 
The Concessioner may attain the limits specified below by means of 
supplementing the respective coverage(s) with Excess or Excess 
``Umbrella'' Liability.

A. Commercial General Liability

    1. Coverage will be provided for bodily injury, property damage, 
personal or advertising injury liability (and must include 
Contractual Liability and Products/Completed Operations Liability).

Bodily Injury and Property Damage Limit
Products/Completed Operations Limit
Personal Injury & Advertising Injury Limit
General Aggregate
Fire Damage Legal Liability ``per fire''

    2. The liability coverages may not contain the following 
exclusions/limitations:

a. Athletic or Sports Participants
b. Products/Completed Operations
c. Personal Injury or Advertising Injury exclusion or limitation
d. Contractual Liability limitation
e. Explosion, Collapse and Underground Property Damage exclusion
f. Total Pollution exclusion
g. Watercraft limitations affecting the use of watercraft in the 
course of the concessioner's operations (unless separate Watercraft 
coverage is maintained)

    3. For all lodging facilities and other indoor facilities where 
there may be a large concentration of people, the pollution 
exclusion may be amended so that it does not apply to the smoke, 
fumes, vapor or soot from equipment used to heat the building.
    4. If the policy insures more than one location, the General 
Aggregate limit must be amended to apply separately to each 
location, or, at least, separately to the appropriate NPS 
location(s).

B. Automobile Liability

    Coverage will be provided for bodily injury or property damage 
arising out of the ownership, maintenance or use of ``any auto,'' 
Symbol 1. (Where there are no owned autos, coverage applicable to 
``hired'' and ``non-owned'' autos, ``Symbols 8 & 9,'' shall be 
maintained.)

Each Accident Limit

C. Liquor Liability (if applicable)

    Coverage will be provided for bodily injury or property damage 
including damages for care, loss of services, or loss of support 
arising out of the selling, serving or furnishing of any alcoholic 
beverage.

Each Common Cause Limit
Aggregate Limit

D. Watercraft Liability (or Protection & Indemnity) (if applicable)

    Coverage will be provided for bodily injury or property damage 
arising out of the use of any watercraft.

Each Occurrence Limit

E. Aircraft Liability (if applicable)

    Coverage will be provided for bodily injury or property damage 
arising out of the use of any aircraft.

Each Person Limit
Property Damage Limit
Each Accident Limit

F. Garage Liability (if applicable)

    This coverage is not required, but may be used in place of 
Commercial General Liability and Auto Liability coverages for some 
operations. Coverage will be provided for bodily injury, property 
damage, personal or advertising injury liability arising out of 
garage operations (including products/completed operations and 
contractual liability) as well as bodily injury and property damage 
arising out of the use of automobiles.

Each Accident Limits--Garage Operations
Auto Only
Other Than Auto Only
Personal Injury & Advertising
Injury Limit
Fire Damage Legal Liability ``per fire''
Aggregate Limit--Garage Operations
Other Than Auto Only

    If owned vehicles are involved, Liability coverage should be 
applicable to ``any auto'' (``Symbol 21'') otherwise, coverage 
applicable to ``hired'' and ``non-owned'' autos (``Symbols 28 & 
29'') should be maintained.

G. Excess Liability or Excess ``Umbrella'' Liability

    This coverage is not required, but may be used to supplement any 
of the above Liability coverage policies in order to arrive at the 
required minimum limit of liability. If maintained, coverage will be 
provided for bodily injury, property damage, personal or advertising 
injury liability in excess of scheduled underlying insurance. In 
addition, coverage shall be at least as broad as that provided by 
underlying insurance policies and the limits of underlying insurance 
shall be sufficient to prevent any gap between such minimum limits 
and the attachment point of the coverage afforded under the Excess 
Liability or Excess ``Umbrella'' Liability policy.

H. Care, Custody and Control--Legal Liability (Describe Specific 
Coverage)

    Coverage will be provided for damage to property in the care, 
custody or control of the concessioner.

Any One Loss

I. Environmental Impairment Liability

    Coverage will be provided for bodily injury, personal injury or 
property damage arising out of pollutants or contaminants (on site 
and/or offsite).

Each Occurrence or Each Claim Limit
Aggregate Limit

J. Special Provisions for Use of Aggregate Policies

    At such time as the aggregate limit of any required policy is 
(or if it appears that it will be) reduced or exhausted, the 
concessioner may be required to reinstate such limit or purchase 
additional coverage limits.

K. Self-Insured Retentions

    Self-insured retentions on any of the above described Liability 
insurance policies (other than Excess ``Umbrella'' Liability, if 
maintained) may not exceed $5,000.

L. Workers Compensation & Employers' Liability

    Coverage will comply with the statutory requirements of the 
state(s) in which the concessioner operates.

[[Page 44920]]

III. Insurance Company Minimum Standards

    All insurance companies providing the above described insurance 
coverages must meet the minimum standards set forth below:
    1. All insurers for all coverages must be rated no lower than 
A-by the most recent edition of Best's Key Rating Guide (Property-
Casualty edition).
    2. All insurers for all coverages must have a Best's Financial 
Size Category of at least VIII according to the most recent edition 
of Best's Key Rating Guide (Property-Casualty edition).
    3. All insurers must be admitted (licensed) in the state in 
which the concessioner is domiciled.

IV. Certificates of Insurance

    All certificates of Insurance required by this CONTRACT shall be 
completed in sufficient detail to allow easy identification of the 
coverages, limits, and coverage amendments that are described above. 
In addition, the insurance companies must be accurately listed along 
with their A.M. Best Identification Number (``AMB#''). The name, 
address and telephone number of the issuing insurance agent or 
broker must be clearly shown on the certificate of insurance as 
well.
    Due to the space limitations of most standard certificates of 
insurance, it is expected that an addendum will be attached to the 
appropriate certificate(s) in order to provide the space needed to 
show the required information.
    In addition to providing certificates of insurance, the 
concessioner, upon written request of the Director, shall provide 
the Director with a complete copy of any of the insurance policies 
(or endorsements thereto) required herein to be maintained by the 
concessioner.

V. Statutory Limits

    In the event that a statutorily required limit exceeds a limit 
required herein, the higher statutorily required limit shall be 
considered the minimum to be maintained.

    Dated: July 3, 2000.
Cynthia Orlando,
Associate Director, Park Operations and Education, National Park 
Service.
[FR Doc. 00-17431 Filed 7-18-00; 8:45 am]
BILLING CODE 4310-70-P