Contract bids are being sought for lodging and dining operations at Sequoia National Park/David and Kay Scott photo of Wuksachi Lodge
The National Park Service has issued a major concession contract for the operation of three locations within Sequoia National Park in California. The NPS prospectus includes concessions at Lodgepole Village, Wuksachi Village, and Bearpaw High Sierra Camp.
Concessions in neighboring Kings Canyon are subject to a separate 10-year contract that was awarded to DNC Parks & Resorts in 2013. DNC also currently holds the Sequoia concession.
The Sequoia prospectus includes both lodging and food & beverage service at Wuksachi Village and Bearpaw High Sierra Camp, plus food and beverage service at Lodgepole Village. Additional required services under the prospectus include winter equipment rental at Wuksachi and public showers, laundry, wireless service, and camping equipment rental at Lodgepole.
Bearpaw High Sierra Camp is a relatively small operation with six rustic tent cabins that each holds three guests. Hot showers and flush toilets are available to guests who also receive breakfast and dinner. The Bearpaw operation is open June through September, while Wuksachi is open year-round.
Wuksachi Village and Lodgepole are major concession operations that generate significant revenue, although somewhat seasonally. Combined with Bearpaw, the concessions produced nearly $10.5 million in revenue during 2014, an increase from $9.1 million and $9.5 million in 2012 and 2013, respectively. Approximately half the revenue is generated from lodging, while the remainder is split fairly evenly between retail and food and beverage.
The initial investment required for a new concessionaire is estimated by the Park Service at $15.2 million, over 85 percent of which is to be paid to existing concessionaire DNC Parks & Resorts for personal property and possessory interest if DNC does not retain the contract. Required construction of a dining deck at Wuksachi at an estimated cost of $500,000 is also included as an initial investment.
The new contract is for ten years. It specifies a minimum franchise fee of 3.8 percent of annual gross receipts, plus a minimum repair and maintenance reserve of 2.1 percent of gross revenues during the first nine years, declining to zero during year 10. Proposals are due in the NPS San Francisco regional office by September 8, 2015.
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