The National Park Service recently issued a prospectus seeking proposals to manage concessions in Shenandoah National Park in Virginia. Shenandoah’s concession operation is wide-ranging with lodging, food and beverage service, retail sales, camping, horseback riding, showers, fuel sales and more, that in 2023 generated more than $22 million of revenue.

Lodging and most services in the park are seasonal, generally opening each year in March or April and closing near Thanksgiving. The concession has been operated by DNC Parks & Resorts since 2013.

Established in 1926, Shenandoah National Park is located about 75 miles southwest of Washington, D.C. The park’s nearly 200,000 acres is highlighted by Skyline Drive, a 105-mile, two-lane road lined with campgrounds, scenic overlooks and picnic areas. The drive serves as a northern extension of the 469-mile Blue Ridge Parkway, whose southern terminus connects with Great Smoky Mountains National Park. The combination of the drives through Great Smoky Mountains National Park, the Blue Ridge Parkway and Skyline Drive offers one of America’s premier road trips, especially during the colorful fall foliage season.

The prospectus is for a 10-year contract that includes management of three lodging facilities, Skyland Resort (168 guest rooms), Big Meadows Lodge (97 guest rooms) and Lewis Mountain Cabins (10 guest rooms); food and beverage service in five locations including two of the lodges; campgrounds in four locations; retail sales in six locations; fuel sales in one location; and horseback riding in one location. In addition to these required services, the contract authorizes the concessionaire to also offer interpretive activities, shuttle services, electric vehicle charging stations, catering, and additional horse services, with each being subject to approval by NPS administration. Employee housing is available at Skyland, Big Meadows, and Loft Mountain.

The National Park Service estimates an initial investment of $4,264,000 will be required of the winning concessionaire. This consists primarily of personal property including furniture, fixtures, equipment and vehicles. For a new company much of this would likely be purchased from the current operator, although the latter is not required to sell or transfer the property. Other initial expenses include inventory, working capital and start-up costs.

The contract requires a significant investment estimated at nearly $8 million for Shenandoah National Park’s concession facilities improvement program, which includes a variety of upgrades, including adding electricity to campsites, rehabilitating cabins, employee dorms and two of the lodges, and installing generators at Big Meadows and Skyland. These will be spread over the first five years of the contract.

Park Service contracts typically require concessionaires to pay a franchise fee to the parks as a form of rent for using park facilities. In the case of the Shenandoah contract, the fee will be 12 percent on the first $15 million of gross revenues, 14.5 percent of the next $10 million of gross revenues and 17.5 percent on all revenues above $25 million. Based on NPS revenues estimates of $26 million-$29 million during the first year of operation (2026), the fee paid to the park will amount to between $3.425 million and $3.95 million. In addition to the franchise fee, the contract requires 1.3 percent of gross revenues to fund a component renewal reserve that covers repair or replacement of items that are likely to reach the end of their useful lives. This include things such as window issues, foundation repairs, electrical wiring, etc.

Interested parties with questions should email NER_concessions@nps.gov by 4 p.m. on August 19. Notice of intent to submit a proposal is due at the same email by 4 p.m. on October 18. A proposal must be received by 4 p.m. on November 7. Hardcopies are required at the National Park Service Philadelphia office by 4 p.m. on November 15.

More complete information relative to the contract is available at https://www.nps.gov/subjects/concessions/shen001-26.htm. A two-day site visit is scheduled for August 13 and 14. Reservations are required and may be made be requested by emailing NER_concessions@nps.gov no later than 4 p.m., August 9, 2024.

David and Kay Scott are authors of “Complete Guide to the National Park Lodges” (Globe Pequot). Visit them at blog.valdosta.edu/dlscott.