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In order to develop an adequate basis for my opinion. I thoroughly reviewed and 

 became famiUar with the written franchise fee determination process set forth in the NPS-48 

 guidehne. BeHcving it would be helpful to learn precisely how the NPS actually implements 

 this guideline. I used the NPS calculation for Fort Sumter Tours, Inc.. (FST) as a case study, 

 assuming that the same methodology would be used for all concessioners nationwide under 

 similar circumstances. As a part of the case study. I became familiar with a franchise tee 

 analysis prepared by the NPS for FST dated February 27. 1992. as well as the facts and 

 issues involved in Federal Case Number 94-1570. Fort Sumter Tours. Inc. vs. Bruce Babbitt, 

 etc. Also, because of my educational background and previous experience. I am thoroughly 

 familiar w ith. but have again reviewed, the annual Dun and Bradstreet Publication. Industry 

 Norms ("D&B Industry Norms") for "Standard Industrial Classitlcation"" (SIC) codes 

 generally, and particularly code number 4489. Water Transportation. Not Elsewhere 

 Classified, for the years 1 988- 1 989. I also ha\e re\ iewed the D&B Industry Norms data for 

 each SIC code, which includes any water transportation services for the years 1985-1987. 

 I am also familiar with and have reviewed the Robert Morris and Associates publication. 

 / 990 Annual Statement Studies f "RMA Statement Studies "l. Also because of m>' experience. 

 I am thoroughly familiar with the content, sampling procedures and methodology employed 

 in producing these two publications. I am aware of the professional use and limitations of 

 the data contained therein. I am also thoroughly familiar with the SIC code s\stem. along 

 with its usefulness and limitations. As a brief explanation, the Office of Management & 

 Budget (0MB) has developed and publishes an SIC code manual, which contains an SIC 

 code classification number for c\ ery known l\ pe of business operation nationwide, such as 

 hotels, barber shops, restaurants, autii manufacturers, drug stores, water transportation 

 .services, etc. For purposes of franchise fee calculations, pursuant to its guideline, the NPS. 

 in its discretion, assigns each concession operation a SIC code number, thus placing the 

 concession operation within a SIC code classilicalion of all other related businesses. I'he 

 NPS then concludes or assumes that a particular concessioner is comparable to all other 



