Here's a small sampling of the stewardship work we have assisted in over the last decade.
National Park Service: Mount Rushmore National Memorial
Scope: Retail, Food and Beverage, Parking
Issue: The NPS sought to understand how to design a contract structure that mixed two significantly different land use types (e.g. parking vs. visitor services) and provided for asset stewardship.
Process/Outcome: CHMGS’s analysis approach incorporated market, financial and investment analysis for parking and visitor services and focused on the unique operational requirements of each land uses. The NPS sought CHMGS’s advice on developing a pricing strategy for parking that was based upon a zero-based budgeting strategy. The resultant deal structure resulted in an increase of returns to the NPS over 19 percent.
National Park Service: Grand Canyon National Park
Scope: 14 Lodging Outlets, 9 Food & Beverage Outlets, 8 Retail Outlets, and Other Recreational Services
Issue: The NPS sought to understand how to develop an economically feasible deal structure.
Process/Outcome: CHMGS’ process deconstructed the existing contract and, using market, financial, and investment analysis, identified a suitable reconfiguration of contracts. This analysis involved developing zero-based staffing budgets for each operation, identifying suitable capital investment priorities for repositioning operations, and allocating existing leasehold surrender interest to optimize two new contract structures. CHMGS successfully structured contract terms and supported the NPS in developing prospectuses advertising business opportunities that resulted in two successful contract awards.
National Park Service: Olympic National Park
Scope: 55-Room Lodge, 4 Food and Beverage Outlets, 3 Retail Outlets
Issue: The National Park Service desired to improve its concession contract oversight.
Process/Outcomes: Along with Washington Office and Park concessions professionals, CHMGS implemented a “Operational Performance Monitoring Pilot” for Olympic National Park’s Lake Crescent Lodge concession contract. CHMGS developed and implemented a communication protocol, analytical workbook, and monthly reporting structure. The results of this work positively influenced concessioner management staffing, including new General and Environmental Compliance Managers for the operation; and increased guest satisfaction in the areas of cleanliness, service, and overall value. These successes resulted in an increase in the resort’s guest satisfaction rating to #1 in its comparable market set; identified and began to strategize spending priorities for a Repair and Maintenance Reserve balance, effectively creating a strategic capital plan to accelerate the spend down of the maintenance funds before the end of contract term. Collectively, this initiative resulted in enhanced contract compliance by 100%.
U.S. Air Force, Food Service Transformation
Scope: 44 Food and Beverage Operations Across 6 U.S. Air Force Installations
Issue: The U.S. Air Force desired to improve the quality of life of airmen by increasing the quality and variety of food options across each of the project installations.
Process/Outcomes: CHMGS professionals were selected by the U. S. Air Force Non-Appropriated Purchasing Office (AFNAF) to support the Air Force Services Agency in a pilot project to privatize base-wide food and beverage operations at the six military installations across the U.S.
The assignment required six phases of work, including due diligence; conceptual design of the future state of the privatized portfolio; detailed market, financial, and investment modeling to support the recommended business structure, development of a consolidated RFP, evaluation of the RFO, and development and implementation of contract oversight tools. This project culminated in a successful bid process that solicited two responses from multinational food and beverage providers, and an award to the company that provided the best overall value to the Air Force. Post operations review indicated a dramatic increase in troop satisfaction, enhanced quality and variety of food, and introduction of more healthy alternatives; all key objectives of the project and initiative.
Bureau of Land Management, Concession Portfolio Analysis, California and Arizona
Scope: 12 Concession Contracts (Recreational Vehicle, Food & Beverage, Retail and Marina Operations)
Issue: The BLM sought to identify the fair market value and stewardship requirements of 12 concession leases.
Process/Outcomes: CHMGS developed a portfolio approach to market, financial and investment analysis of the operations. The market analysis approach incorporated international (e.g. Canada) market analysis for the recreational vehicle industry to develop demand forecasts. Financial analysis addressed unique issues related to the extended stay RV market. Investment analysis incorporated facility condition assessment information to ensure long term asset stewardship. CHMGS' analysis identified an opportunity to increase returns to the BLM by over 75 percent in combined concession and maintenance fees.
San Mateo County Parks, Folger Stables
Scope: Equestrian Stables, Lessons, and Trail Rides
Issue: San Mateo County Parks sought to develop an equitable deal structure that incorporated a high level of asset stewardship.
Process/Outcomes: The historic Folger Stables require the highest level of asset stewardship and offered an opportunity for enhanced visitor services. CHMGS market, financial, and investment analysis focused on ensuring appropriate forecasting of costs for operational and maintenance stewardship. CHMGS' analysis provided for increased returns to the County of 4.2 percent, as well as development of an oversight strategy for asset stewardship.
U.S. Forest Service, Spring Mountains National Recreation Area
Scope: 2,500-acre site, Visitor Center, Trails, Retail, Food & Beverage, Camping, Day Use
Issue: The U.S. Forest Service Master Plan for the Spring Mountains National Recreation Area required confirmation of scope of services and understanding of financial viability.
Process/Outcome: CHMGS' analysis identified a need to reduce the proposed scoping and scale of the camping facilities by 50 percent, resulting in a potential capital cost savings of $3 million dollars. Additionally, CHMGS professionals modeled four different management model options for the Forest Service, which allowed the USFS to understand the fiscal impact of its decisions. Overall, our analysis resulted in changes to both the Master Plan and Final EIS, representing a more market and financially sustainable solution.
Iowa Department of Natural Resources, Honey Creek Resort
Scope: 105-room Lodge, 28 cabins, 18-hole golf course, Restaurant, Lounge, Marina & Water Park.
Issue: Iowa Department of Natural Resources (DNR) needed an Asset Manager to assist them in stemming operating losses and developing a strategy for converting a management agreement to a concession contract.
Process/Outcome: Over a six-year period, CHMGS’ Asset Management team worked with Iowa DNR and its hotel management company to transform the operation from a net loss to a positive Net Operating Income growth of over 34 percentage points. CHMGS professionals then supported Iowa DNR in developing a new concession contract deal structure that resulted in additional capital improvements and ongoing stewardship of the resort.
South Dakota Game Fish and Parks, Custer State Park Resort
Scope: Four Lodges & Restaurants, Equestrian, Equipment Rental and Retail
Issue: South Dakota Game Fish and Parks (SDGFP) sought CHMGS professionals’ assistance in developing the initial and contract extension at Custer State Park.
Process/Outcome: CHMGS work involved market, financial and investment analysis to develop and assess a deal structure that would support a bond issuance for improvements to the resort. After ten years, SDGFP sought out CHMGS again to assist in restructuring a contract extension to ensure an equitable deal structure for SDGFP, the concessioner and the assets in the park.
Tennessee State Parks
Scope: Six Lodges, 9 Golf Courses, 3 Marinas, 8 Restaurants,
Issue: Tennessee State Parks was interested in understanding it options for operation of its resort portfolio, including self-management, management contract, concession contract options. Additionally, Tennessee State Parks sought Asset Management assistance for overseeing the design and development of two new hotels and two hotel renovations.
Process/Outcome: CHMGS market, financial and investment analysis identified multiple options for future deal structuring. The analysis was used to support the Agency’s decision to continue self-management but invest over $75 million in capital for redevelopment of its signature resorts. Additionally, CHMGS current Asset Management is resulting in improved review time for project development and a renewed focus on operational and fiscal efficiency in the resort operations.
Oregon State Parks
Scope: Ten Concession Contracts Grossing over $4.6 million in revenue.
Issue: Oregon State Parks sought to identify the role of its Concession Program in providing enhanced visitor services to its over 47 million annual visitors.
Process/Outcome: CHMGS' Benchmarking Analysis identified that Oregon State Parks had opportunities to improve its Planning, Contracting, and Oversight processes that would result in enhanced asset stewardship and operational oversight. CHMGS outlined a Concession Program Strategy that included development of new contract vetting and oversight tools, new standard contract language, and a new land use scope of services.
For more details on successfully completed projects, please Contact Us.