Commercial Services Program Glossary

Capital Improvement

A structure, a fixture or non-removable equipment provided by a concessioner pursuant to the terms of a concession contract and located on lands of the United States within a particular area. A capital improvement does not include any interest in land, nor does it include any interest in personal property of any kind including, but not limited to, vehicles, boats, barges, trailers, or other objects, regardless of size, unless an item of personal property becomes a fixture as defined in this part. Concession contracts may further describe, consistent with the limitations of this part and the 1998 Act, the nature and type of specific capital improvements in which a concessioner may obtain a leasehold surrender interest.

Concession Contract

A document that records a formal, legally binding agreement using NPS approved standard concession contract language. Any deviations from such language must be approved in writing by the Director of the National Park Service.

  • Category I contracts exist when a concessioner constructs capital improvements on park lands.
  • Category II contracts exist when a concessioner operates on assigned land or in a government building, but makes no construction or capital improvements to the property.
  • Category III contracts exist when neither land nor buildings are involved in the operation.

Condition Assessment

A comprehensive inventory and assessment of the assets which are being managed under the concession contract, including an identification of facilities’ current state, identification of deferred maintenance, and establishment of a replacement schedule for all assets.

Consumer Price Index

A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.

Environmental Management Program

A program that achieves the Standard Concession Contract Environmental Management Objectives of (1) complying with all applicable laws pertaining to the protection of human health and the environment, and (2) incorporating best management practices in a concessioner’s operation, construction, maintenance, acquisition, provision of visitor services, and other activities under a concession contract. The EMP should be developed, documented, implemented, and complied fully with by a concessioner to account for all activities with potential environmental impacts conducted by the concessioner or to which the concessioner contributes.

Franchise Fee

Consideration paid to the Director by a concessioner for the privileges granted by a concession contract.

Leasehold Surrender Interest

A contract exhibit which defines certain terms and conditions of the contract regarding the nature, scope and applicable conditions of leasehold surrender interest.

Prospectus Package

The official document giving details about a specific concession business opportunity with the National Park Service to solicit offers for services.

Possessory Interest

An interest in real property improvements obtained by a concessioner under a possessory interest concession contract.

Repair and Maintenance Reserves

Project funds established by the concessioner which are used to carry out repair and maintenance of concession facilities that are non-recurring within a seven-year time frame. Such projects may include repair or replacement of foundations, building frames, window frames, sheathing, subfloors, drainage, rehabilitation of building systems such as electrical, plumbing, built-in heating and air conditioning, roof replacement and similar projects.

Risk Management Program

A program focused on ensuring concessioners develop policies and procedures to provide their employees with a safe work environment, as required by all concession contracts.

Last updated: August 10, 2018