Frequently Asked
Questions about Concessionaires
What is a
concessionaire?
We are a private company that runs recreation
facilities, like campgrounds, for government
organizations (like the US Forest Service) on
government land. Typically, this relationship is
embodied in what is called a "Special Use Permit".
How does a Special Use
Permit work?
Special Use Permits are entered into with
private companies for a defined number of years
(usually 5-10). Though the terms vary, in most
cases the permit grants the private company the
right to operate on and collect revenues from a
certain site. In addition, the private company is
required to pay all normal operating expenses.
Typically, the private company pays a fee for this
permit, usually calculated as a percentage of
revenue collected.
How are these permits
granted?
The government conducts a competitive bid
process. Selection criterea typically include
evaluation of the company's qualifications, its
financial stability, its operations plans, and the
percentage of revenue bid as a return to
government.
Once granted, can the
private company do anything it wants with the
site?
Hardly. We operate under a very detailed set
of guidelines that specify the condition the
facilities must be kept in, the fees we can
charge, the training we must provide, etc. In
fact, the documents that outline our operating
plan and restrictions often can fill a 3-inch
binder. Failure to comply with these requirements
will cause a concessionaire to lose their permit.
Where does my money I
pay for camping fees go?
The vast majority of your fee goes to pay
operating expenses at that site, including
cleaning, maintenance, safety patrols, etc. A
large portion also goes to the government in
fees. Because of efficiencies in private vs.
government operation, these fees we pay are
typically higher than the what the government was
making running the facility on its own. By law,
at least on US Forest Service lands, the fees we
pay to the government stay in the local forest and
are used for improvement and new construction.
Don't my taxes pay pay
for all this anyway? Why do I have to pay extra
fees?
Unfortunately, it has been years since the tax
money that flows to the US Forest Service was
sufficient to fund the operations of all of its
recreation facilities. Recent administrations as
well as the Congress have decided that
organizations like the US Forest Service must
recover an increasing part of their budget from
users directly. The same can be said in most
states, as budget crises are constantly
threatening to close parks and recreation
facilities.
This problem continues to get worse. For
example, in 2002, due to fires and the mandate to
help recover parts from the Space Shuttle
Columbia, most local forest rangers found their
discretionary recreation budgets slashed nearly to
zero. However, as a private operator, we were
unaffected by these mandates and we were able to
maintain service and staffing levels at their
optimum levels. By putting operation of
recreation facilities in private hands, government
recreation managers can help protect recreation
spending and keep parks open.