Assisted the National Park Service to develop a franchise fee for the retail, food and beverage, and parking services at the Mount Rushmore National Memorial, which provides services to over 2,140,000 visitors annually. Key considerations and improvements in this project include the first rate study for parking facilities within the NPS, as well as the financial and operational challenges of combining two historically separate concession contracts. Analysis identified the opportunity to increase returns to the agency by over 19 percent.
Successfully supported the NPS in the market, financial and investment analysis for one of the agency’s largest concession contracts generating average annual revenues of over $88 million, serving 4.75 million annual visitors. The contract included the operation of 14 overnight lodging assets, 9 food and beverage outlets, 8 retail outlets, and associated hospitality and recreation services. The CHMGS team deconstructed and restructured the contract to address concerns of an overly burdensome upfront capital investment. CHMGS successfully structured contract terms and supported the NPS in a prospectus advertising the business opportunity that resulted in a successful award.
Along with the Olympic NP concessions team, CHMGS implemented a Concessions Contract Management platform for Olympics’ Lake Crescent Lodge, Fairholme Store, and Hurricane Ridge Retail. This project, referenced internally within the NPS as the “Operational Performance Monitoring Pilot” was initiated to more proactively manage the concession contract currently being executed by Aramark Parks and Resorts. CHMGS developed and implemented a communication protocol, analytical workbook and monthly reporting structure that has: positively influenced concessioner management staffing including new General and Environmental Managers for the operation; increased guest satisfaction in the areas of cleanliness, service and overall value moving the resort to #1 ranking in comparable market set; and identified a Repair and Maintenance Reserve balance, and effectively put in place a strategic capital plan to accelerate the spend down of the maintenance funds before the end of contract term. Collectively, this initiative has resulted in enhanced contract compliance by 100%.
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 the operation of food and beverage operations, base-wide at the following base locations:
• Patrick AFB
• Fairchild AFB
• McGuire AFB
• Travis AFB
• Scott AFB
• Elmendorf AFB
The assignment included six phases of work including:
• Task 1 – Pilot Base Beta Test (on-site due diligence of Food and Beverage Operations)
• Task 2 – Future Conceptual Design (Future state of privatized portfolio)
• Task 3 – Business Model Development (Detailed, market, financial and investment modeling to support future state business structure)
• Task 4 – Business Opportunity Summary Reports (Develop consolidated RFP advertising details of business opportunity)
• Task 5 – RFP Response Evaluation and Support
• Task 6 – Project Management (Develop and Implement contract oversight tools, processes and methodologies)
Project outcome culminated in a successful bid process that solicited two responses from multi-national food and beverage providers and an award to the company that provided the best overall value to the Air Force. Post operations review indicated that troop satisfaction dramatically increased, quality and variety of food was enhanced, and more healthy alternatives were introduced; all key objectives of the project and initiative.
Assisted the Bureau of Land Management with the development of the market value of 12 concessions located along the Colorado River. These 12 contracts provide overnight accommodations, food service, and camping offerings to over 1.5 million visitors on an annual basis. CHMGS's market, financial, and investment analysis identified an opportunity to increase returns to the BLM by over 75 percent in the form of concession and maintenance fees.
Supported San Mateo County Parks in structuring a concession contract, maintenance strategy, and oversight plan for stables, lesson, and trail riding operations serving a customer base of 1,300. Folger Stables was created in 1905 as the recreational playground for James A. Folger II, the founder of Folger’s Coffee. CHMGS's analysis provided for increased returns to the County of 4.2 percent.
CHMGS professionals supported the Forest Service in planning for a $50 million, 2,500-acre hospitality and recreation land-use development on both the East and West sides of Spring Mountain National Recreation Area ("SMNRA") outside of Las Vegas, Nevada. The Master Plan had proposed the following developments:
CHMGS's 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's professionals developed 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, which presented a more market and financially sustainable solution.
Provide asset management services to Iowa DNR for a 105-room resort including 28 cabins, a water park, 18-hole links-style championship golf course, a three-meals-a-day restaurant and adjacent lounge, marina, RV park and 15,000-square-foot conference center. CHMGS's work over a six-year period has resulted in a Net Operating Income growth of over 34 percentage points, supported Iowa DNR's decision to retire the revenue bonds used to fund the development and allowed Iowa DNR to transition from a management to concession contract.
CHMGS has provided ongoing market, financial and investment support to SDGFP on a wide array of concession issues. Our most significant effort focused on supporting SDGFP in structuring a concession contract for their signature state park resort that services over 1.9 million visitors annually. Our underwriting has resulted in increased returns to the State in the form of increased concession fees and capital investment on behalf of the concessionaire.
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