Business Opportunities

Becoming a State Park Concessionaire

The Bureau of State Parks generally awards concessions through a competitive bid process. If you want to receive notice of concessions as they are released for competitive bid, please visit our State Park bid page at: www.apps.dcnr.state.pa.us/stateparks/ConcessionBids/default.aspx. Once on the bid page you will see what Concessions are currently up for bid. Click on "document" under download contract. This will bring up a log in screen (provide link) where you will be able to create a profile. Once you have created a profile you will be sent email notifications, for the Parks you signed up for, when a concession lease opportunity arises.

You may also contact the Program Services Section at 717-787-8800 if you have any other questions relative to the Bureau of State Parks' Concession Program.

If after review of the bidding announcement you're interested in bidding on an available concession, you will need to obtain a bid package directly from the involved park. It is strongly recommended that you view the leased premise at the State Park before you bid.

After receipt of the bidder's package you will need to read all information and follow the directions relative to completion of the Invitation To Bidders and Concession Lease Agreement Proposal Form. The Invitation to Bid must be returned in the envelope provided.

Sometimes a Request For Proposal (RFP) approach is used. Contracts resulting from the RFP process are awarded to the proposer with the highest scored proposal.

BE SURE TO PROVIDE ALL REQUESTED INFORMATION AND THE NECESSARY SIGNATURES.

The completed form accompanied by a Bid Guaranty that must equal 10% of the LUMP SUM ANNUAL PAYMENT BID must be returned to the listed address by the time and date listed. Personal checks are not accepted.

On the listed time and date, competitive bids received are opened by legal staff of the Department of Conservation and Natural Resources, and Bureau of State Parks staff is informed as to who the acceptable bidder(s) are. The Commonwealth has the right to reject any and all bids.

After the bid opening, results will be posted on the State Park's Bid page. If no problems have been encountered at the time of the bid opening or there are no questions relative to the highest responsible bidder, the Bureau of State Parks will award the concession to the highest responsible bidder.

A Concession Lease Agreement

A Concession Lease Agreement covers many areas. It contains: Definitions, Terms of Agreement, Operational Condition, Special Conditions, Legal Requirements.

Each part of the Concession Lease Agreement is important to your operation and the success of your concession. Be sure you know what will be required before you bid on any concession, and be sure you will be able to meet the obligations if you commit to it.

In order to give you some idea of what you will find in a Concession Lease Agreement, we are providing the following general information that we hope will help you decide on whether or not the operation of a Bureau of State Park concession should be in your future.

Short-cut List

Length of the Concession Lease Agreement

A Concession Lease Agreement is generally awarded for a maximum period of 10 annual terms. In a few instances, agreements have been awarded for a lesser number of terms. This is based on circumstances as determined by the Bureau of State Parks that warrants a shorter period of award. These agreements can be awarded directly by the Bureau of State Parks.

Depending on the type of concession operation and if substantial capital development (permanent improvements or development that become the property of the Bureau at the termination of the agreement) is required by the concessionaire that will exceed at least $100,000, it is possible to award up to a 35 year agreement, if approval is granted by the Governor's Office.

Rental Payments

There are generally three different types of rental payments received from concessions: 1) Annual Lump Sum Payment only; 2) Annual Lump Sum Payment + 5% of the annual adjusted gross receipts; and 3) Annual Lump Sum Payment + 7% of the annual adjusted gross receipts.

Selecting which of the above listed methods is used is determined by the Bureau of State Parks prior to the solicitation of competitive bids and is based on the financial history of the involved concession.

Rental payments are required on a time schedule that is contained in the concession lease agreement. It may differ based on the type of concession operation and/or the operating season.

Consumer Price Index (CPI) and Increases to Rental Payments

Concession Lease Agreements that contain an Annual Lump Sum Payment of $500 or more are usually subject to a CPI increase at the beginning of each two year term the agreement is in effect.

The CPI increase is not applicable to Annual Lump Sum Payments of less than $500.

The CPI increase is not applicable to the payment of any required percentage of the annual adjusted gross receipts.

Leased Premises

Each Concession Lease Agreement specifies the area of the park that is designated as the leased premises. A concessionaire is only permitted to operate and conduct business under the terms and conditions of the Concession Lease Agreement in the facilities or areas specified.

Maintenance of Leased Premises

The Concession Lease Agreement will specify the type of maintenance work to be done and whether it is required to be completed by the concessionaire or the park maintenance staff.

This can range from daily litter pick-up to grass mowing, to building repairs, etc.

Some Concession Lease Agreements require the concessionaire to undertake all maintenance on their leased premises while others may allow for maintenance of certain items by both concessionaire and park staff.

Required Submittals

Each concessionaire, based on the terms and conditions of the Concession Lease Agreement is required to submit certain payments, forms, financial statements, and other items on a timely basis. Failure to submit any of the required items in a timely fashion can result in the concessionaire being assessed liquidated damages for failure to comply with the agreement.

1. Rental Payment - The rental payment is required by specified dates, as listed in the Concession Lease Agreement. Failure to do so can not only result in the assessing of liquidated damages, but an interest charge of 18% will also be imposed on late payments.
2. Annual Financial Statement - Each concession operation is required to submit an Annual Concession Financial Statement - (#6000-FM-SP0024), or any revisions thereof, by the due date listed in their agreement. This provides the Bureau of State Parks with a financial statement of the concessionaire's operating season.
3. Liability Insurance Policy - Concession Lease Agreements usually require the concessionaire to carry specified amounts of liability insurance with the Bureau of State Parks listed as a certificate holder and additional insured.
4. Fire Insurance Policy - If a building or buildings are leased to the concessionaire as a part of the concession operation, the concessionaire may be required to provide fire insurance in an amount equivalent to the replacement cost of the building, as determined by the Bureau of State Parks.
5. Performance Guarantee - A performance guarantee equal to the annual lump sum rental payment or an amount established by the Bureau of State Parks is required for most Concession Lease Agreements. Should the concessionaire fail to provide the concession services agreed to or meet the conditions of the agreement, and it results in the termination of the agreement, the performance guarantee will be liquidated and used to finance the process necessary to secure another concessionaire or to repair or replace facilities that may have been neglected by the terminated concessionaire.
6. Other Documents or Payments as required by the Specific Concession Lease Agreement - It is the concessionaire's responsibility to meet all due dates and deadlines for submitting the required information, reports, and payments. The involved park staff is not required to send notices or reminders that items are due.

Concession Lease Termination

If a concessionaire wishes to terminate an existing agreement, they may do so by notifying the Bureau of State Parks, in writing, according to the time frame listed in their Concession Lease Agreement.

The Bureau of State Parks will not terminate a Concession Lease Agreement unless: 1) it becomes necessary due to the continued lack of concessionaire's compliance with the agreement terms and conditions; 2) it becomes necessary to close park facilities for safety or economic reasons; or 3) there are unforeseen circumstances that dictate a closure.

If the Bureau requires closure and the concessionaire is not able to operate for most or all of a season, it has been the Bureau of State Parks' policy to extend the existing agreement for an additional year, if acceptable to the concessionaire.

Pricing

A concessionaire may charge prices and rates that are reasonable and fair. A copy of all prices and rates must be submitted annually to the involved park office. The Bureau of State Parks must approve all charges, prior to opening each season.

Non-exclusive Rights

A concessionaire does not have exclusive rights to all concession operations within a particular state park, but rather, only to the specific operation at the specific location as described in the Concession Lease Agreement.

Concession Operation

A concessionaire is required to operate at specific times and on specific days as listed in the Concession Lease Agreement.

Any early closure or reduction in operating days or hours must be approved by the Park Manager.

If a concessionaire wishes to operate on additional days or additional hours, approval must also be requested from the local Park Manager.

Americans With Disabilities Act

Each Concession Lease Agreement contains a clause that requires the concessionaire to comply with the Americans with Disabilities Act Accessibility Guidelines (ADAAG). Any service-oriented concession, such as watercraft rental, would be required to provide access to watercraft and watercraft capable of serving disabled visitors that wish to rent a watercraft.

Letter of Authorization

A Letter of Authorization (LOA) is required for any group or organized activity. Examples include, triathlons, duathlons, dog events, weddings, fishing tournaments, horseback riding, steamboat shows, Klondike derbies, kayak meet-ups, paddleboarding, equipment demonstrations, disc golf tournaments, Regatta’s, organized hikes, etc.

Special Activities Agreement

Special short-term events may be granted permission to sell food and refreshment items by use of a Special Activities Agreement.

Commercial Use License

This is used primarily to cover commercial activities that occur outside a park area but use park resources to further their business efforts. This includes things such as guided fishing trips, guided bicycle trips, use of park for development of photographic advertising materials, to name a few. A Commercial Use License may be denied by the involved park office based on numerous considerations.

Short Term Concession Lease Agreement

At certain times, a park may have a short-term (less than a year) need for a specific concession that operates from within the park. In this case it is possible for the park to issue what is known as a Short Term Concession Lease Agreement.