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<classification authority="sudocs">GA 1.13:T-RCED-98-122</classification>
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 <subject>Retail facilities</subject>
 <subject>Concessions contracts</subject>
 <subject>Government collections</subject>
 <subject>Federal property management</subject>
 <subject>User fees</subject>
 <subject>Public lands</subject>
 <subject>Non-government enterprises</subject>
 <subject>Comparative analysis</subject>
 <subject>Profits</subject>
 <subject>National parks</subject>
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 <title>National Park Service: Concession Reform Issues</title>
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<abstract>GAO discussed the need for concessions reform in the National Park
Service as well as in other land management agencies, focusing on a
comparison of the Park Service&apos;s concessions programs with those of
other federal agencies.&lt;p/&gt;GAO noted that: (1) concession activities on federal lands is a large
industry that generates billions of dollars; (2) GAO&apos;s most recent work
showed that over 11,000 concession agreements were managed by civilian
agencies throughout the federal government; (3) concessioners operating
under these agreements generated about $2.2 billion in gross revenues;
(4) over 90 percent of concession agreements and the concession gross
revenues were from concessioners in the six land management
agencies--with many of the largest concessioners operating in the Park
Service; (5) for agreements that were either initiated or extended
during fiscal year 1994, concessioners in all of the land management
agencies paid the government an average of about 3 percent of their
gross revenues; (6) in the case of the Park Service, the average return
was about 3.5 percent; (7) in contrast, concessioners in nonland
management agencies paid fees of about 9 percent of their gross
revenues; (8) the key factors affecting rate of return to the government
were: (a) whether the fee was established through competition; (b)
whether the agency was permitted to retain most of the concessions fees
it generated; and (c) whether an incumbent concessioner had a
preferential right in renewing its concession agreement with the
government; (9) throughout the federal government, rates of return from
concessioners were higher when established through competition; (10) in
addition, agencies which had authority to retain fees and which did not
grant preferential rights of renewal generally obtained higher rates of
return to the government from concessioners; (11) in previous reports,
GAO noted that as Congress considers reforming concessions in the Park
Service, it may want to consider: (a) encouraging greater competition by
eliminating preferential rights of renewal; and (b) providing
opportunities for the Park Service to retain at least a portion of
concession fees; (12) in addition, some concession reform proposals have
suggested removing possessory interest--the concessioners right to be
compensated for facilities constructed or acquired on federal lands; and
(13) at issue are the long-term costs of acquiring concessioner-owned
facilities relative to the benefits realized by having greater control
through government ownership of facilities.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Retail facilities</topic>
 <topic>Concessions contracts</topic>
 <topic>Government collections</topic>
 <topic>Federal property management</topic>
 <topic>User fees</topic>
 <topic>Public lands</topic>
 <topic>Non-government enterprises</topic>
 <topic>Comparative analysis</topic>
 <topic>Profits</topic>
 <topic>National parks</topic>
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