226 



Forest Service and the Corps of Engineers, field office managers 

 negotiate only the length of agreements. 



MORE COMPETITION IS NEEDED 



Our work has shown the need for greater competition in 

 awarding concessions contracts. As early as 1975,* we reported 

 that the preferential right of renewal is not in the government's 

 best interest because it impedes competition. 



Because existing concessioners are granted the right to match 

 any better offer for a new concessions contract, the preferential 

 right of renewal does not promote competition in awarding 

 contracts. The Concessions Policy Act of 1965 requires the Park 

 Service to provide concessioners with a preferential right of 

 renewal. However, this legislation also requires the Park Service 

 to give the public the right to compete for concessions contracts. 

 Recognizing that the preferential right of renewal impedes 

 competition, the Park Service has tried to address this matter 

 administratively. Specifically, in October 1992 the Park Service 

 regulations regarding the preferential right of renewal were 

 modified. Under these regulations, prospective concessioners must 

 respond to a Park Service prospectus on concessions operations. 

 However, existing concessioners who perform satisfactorily still 

 have the right to match or better the best offer received. 



The Park Service believes that providing the public with an 

 opportunity to bid on a concessions contract through a prospectus 

 outlining the terms and conditions of the new contract will attract 



^ Concession Operations in the National Parks--Improvements Needed 

 in Administration {RED-76-1, July 21, 1975), Better Management of 

 National Park Concessions Can Improve Services Provided to the 

 Public (CED-80-102, July 31, 1980), and Federal Land: Little 

 Progress Made in Improving Oversight of Concessioners {GAO/T-93-42 , 

 May 27, 1993) . 



