While this hearing encompasses concession poHcies for the Forest 

 Service, Fish and Wildhfe Service, and Corps of Engineers, I want 

 to speak directly about my bill, H.R. 773, the National Park Service 

 Concessions Policy Reform Act, that applies solely to the National 

 Park Service. My bill, which has 48 bipartisan co-sponsors, is the 

 same bill that the House overwhelmingly approved by a vote of 386 

 to 30 because it makes substantial improvements to National Park 

 Service concession contracting procedures which right now are non- 

 competitive. 



H.R. 773 sustains the will of the House from the 103rd Congress 

 to open Park Service concession contracts to competition, provide 

 American taxpayers an adequate return from Park Service conces- 

 sioners, and dedicates more funding to our parks. At the same 

 time, it fulfills the Park Service's commitment to existing contracts 

 and related property values. What my bill does for taxpayers is 

 convert the current noncompetitive contracting process to a very 

 competitive one. 



The first step in this new concessions contracting method is es- 

 tablishing a floor or a minimum franchise fee for new contracts or 

 those being renewed. After this floor is established by the Secretary 

 of Interior, bidding would be allowed above that minimum, incum- 

 bent concessioners competing against other interested parties sole- 

 ly on their tendered contracts, and no one is given advantage over 

 the other. 



Right now, the National Park Service rarely receives competing 

 bids for a concession contract being renewed because the incum- 

 bent contractor can retain the contract by meeting the lowest bid 

 up for renewal. Consequently, no other bidders are willing to take 

 the time and the money in an effort to win the contract only to 

 have the current concessioner meet the best competing bid because 

 of this preferential right to renew. 



The lack of competition for Park Service concession contracts was 

 investigated by Interior Department's Inspector General who re- 

 ported that of 29 Park Service contract offerings, 28 incumbent 

 concessioners had no competing offer. I think this statistic bears re- 

 peating. Of 29 Park Service concession contracts up for renewal, 28 

 were renewed without a competing bid. 



It is clear that current law stifles competition not only from a re- 

 sourceful small businessperson, but for large diversified concession 

 operators, the same ones that provide concessions to airports and 

 arenas. Large concession operators do not compete for Park Service 

 concession contracts when they are being renewed because they 

 know the incumbent always wins on this uneven playing field. 



When contracts are renewed without competition, franchised fees 

 continue to be low while concessioner profits increase. In 1993, con- 

 cessioners generated more than $657 million in gross revenue and 

 as a group returned to the Federal Government just 2.6 percent, 

 $17.6 million of that $657 million, none of which went to the parks. 



I know the lack of adequate appropriations for the upkeep of the 

 park system is of concern to this subcommittee, and I think my bill 

 provides a solution through the establishment of park improvement 

 funds into which franchised fees collected from the gross revenues 

 from concessioners are deposited. 



