Questions Answers Concerning the Concession Prospectus for Glacier Landing Air Taxi and Glacier Landing Scenic Air Tours Solicitation DENA GlacierAir by NPS


									Denali National Park & Preserve
Questions & Answers Concerning the Concession Prospectus for Glacier Landing Air Taxi
and Glacier Landing Scenic Air Tours (Solicitation # DENA-GlacierAir-06)

  1. Question: In the proposal package Principal Selection Factor 2, Section 2 c., in the list of
     approved planes for use on the glacier, it doesn’t identify a Super Cub or an Aeronca-
     Sedan. But Super Cubs and Aeronca-Sedans have both been used on the glaciers for years
     even though they aren’t used very often any more. Are the Super Cub and the Aeronca-
     Sedan authorized?

     Response: Yes, in addition to the airplanes listed as approved in the prospectus, Principal
     Selection Factor 2, Section 2c, the PA-18 (Super Cub) and the Aeronca-Sedan are both
     authorized planes for landing on the glaciers.

  2. Question: In the proposal package Principal Selection Factor 2, Section 2 c., in the list of
     approved planes for use on the glacier it lists a DHC-2 (Beaver). Does this include
     Turbine Beavers?

     Response: Yes, it includes regular and Turbine Beavers.

  3. Question: Are the gross receipts reported in the Business Opportunity section the total
     gross receipts for each business or just representing the portion of their business that
     includes flights with a glacier landing?

     Response: The gross receipts in the Business Opportunity section represent that portion
     of the business authorized under the contract. The contract authorizes only the flights with
     a glacier landing within the Park boundaries. Receipts generated by flights that do not
     land within the park are not reported as gross receipts

  4. Question: On the financial portion in Principal Selection Factor 4, are you asking for the
     whole company or just the glacier landing flights?

     Response: For PSF 4 Section 1 and Section 2 seek information regarding the availability
     of funds to operate the concession and the financial position of the Offeror. Therefore a
     complete response to sections 1 and 2 will include financial information of the entire
     Offeror, not just financial information associated with the flights with a glacier landing
     within the Park boundaries.

     PSF 4 Section 3 seeks information regarding the financial feasibility of the proposed
     operation. The proposed operation is glacier landing air taxi and glacier landing scenic air
     tours within portions of Denali National Park and Preserve. So the prospective income
     statement should reflect the financial expectations of the flights with a glacier landing
     within the Park only.

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5. Question: Where can the completed proposals be submitted.

   Response: Please refer to the first page of the prospectus. The proposals may be received
   at either the NPS regional office in Anchorage or at the Talkeetna Ranger Station in
   Talkeetna, as further described on the first page of the prospectus.

6. Question: On Page 11 of 18, #4 Background: b. Have you or any employee been charged
   with violating any federal, state, or local criminal statute or regulation? I would say that
   we do not know of any, however, do you want background checks and is this a question an
   employer can ask? We do ask the employee on an application if they have been convicted
   of a felony but I don't think that will cover it.

   Response: The offeror is not required to do a background check. The offeror is required
   to provide responsive information they are aware of.

7. Question: Principal Selection Factor 2, Section 1 c. asks for a copy of my Part 135 Safety
   Program. Which FAA document is this referring to?

   Response: This is referring to the Part 135 FAA approved Operations Manual.

8. Question: RE: Preferred Offeror: Local residents: refers to controlling interest, local
   resident, receiving preference:

   A potential offeror provided information regarding its ownership and asked if the entity
   qualifies as a preferred offeror local resident.

   Response: A response to this question will not assist potential offerors in the completion
   and submission of offers. A determination of who qualifies as preferred operators will not
   be made until after receipt and review of offers. Please see the regulations at 36 CFR
   13.80 – 13.87 and particularly the definition of controlling interest on the bottom of Page 4
   of 18 in the proposal package section of the prospectus and in 36 CFR 13.81 (b).

9. Question: When all is said and done, and concessions are awarded, is everyone going to
   pay the same Franchise fee, or some more and some less? How important is this point?

   Response: A number of variables that will not be known until after receipt and review of
   any responsive proposals makes a response at this time impossible. Those variables
   include the number of responsive offers received, the number, if any, of offers received
   from ANILCA preferred operators, and the number, if any, of offers received from
   incumbent concessioners who have a right of preference. The process for identifying the
   best proposal and offering the contracts is described in the Prospectus, Proposal
   Instructions, Section 9.

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10. Question: Gross receipts: the way Addendum #1 General Provisions reads: it says that
   the total amount received by us for all sales made pursuant to the rights granted by the
   contract- should we just put down the amount we receive for the actual glacier landing, as
   opposed to the price for the entire flight? The scenic portion, without a landing, is not
   governed by the concession, just the
   landing is. Would you clarify that for us and all other concessionaires?

   Response: The definition of gross receipts is on page 1 of 4 in Addendum 1 General
   Provisions. The services being granted under this contract includes a flight to the glacier
   with a landing on the glacier. Therefore, the gross receipts include the price of the entire
   flight that includes a glacier landing. See the response to question 3 above. Gross receipts
   would not include receipts from a flight that does not land in the park.

11. Question: It also says we will provide reduced rates for Federal employees when
   conducting necessary general business: does that mean we have to be OAS certified for
   this concession or will you fly with us without an OAS contract?

   Response: You do not have to be approved by Aviation Management Directorate (AMD),
   the former Office of Aircraft Services (OAS) for this concession. NPS employees can fly
   on a concession aircraft to evaluate the service provided under the Concession contract
   without AMD approval.

12. Question: Under same addendum paragraph 4 (Environmental Data, reports, etc)- (e)
   Please clarify that this is just for environmental data, and NOT FAA inspections. The FAA
   does run a Haz Mat inspection as part of its routine surveillance. Do you want to know
   about this?

   Response: Yes, Federal Aviation Administration Hazardous Material inspection reports
   fall within the scope of reports required to be submitted to the NPS under contract
   addendum 1, Section 4(b).

13. Question: Under Non Discrimination: under A. Employment (1): Federal Aviation
   Regulations specify certain restrictions for pilots, mechanics, etc, that require the
   employees to meet certain conditions. Pilots obviously must pass a Class II medical, sight,
   hearing, etc. Many employees must pass a pre-employment drug screening and be subject
   to random, for cause, post accident and return to duty drug and alcohol testing. All FDI
   employees must agree to comply with the anti-drug and alcohol misuse policy of FDI, and
   are informed of termination or non-employment by FDI should this policy not be followed.
   Drug use/ abuse and alcoholism presently may be considered a disability which conflicts
   with our requirements under the FAR's.

   Fly Denali, and all concessionaires, have or must have an approved Drug Program.
   Although alcoholism and drug use may be considered a disability, it is not allowed.
   Because of the extreme safety-sensitive nature of our business and the sometimes-
   catastrophic consequences of errors, Fly Denali must have a Zero Tolerance Policy. Fly
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   Denali employees with this disability are terminated. Failure to comply with the Anti-
   Drug and Alcohol Misuse Program is not a tolerable disability. Please address this conflict
   with your Non Discrimination Requirements. Please confer with Rose Swanke in Aviation
   Medicine in Anchorage if necessary. I really do not want to be named in a lawsuit by
   someone that I terminate because of language in this contract.

   Response: Contract Addendum 1, General Provisions, Section 2 requires the
   Concessioner to comply with all Applicable Laws. Contract Exhibit A,
   Nondiscrimination, does not conflict with applicable law.

14. Question: The statement on Draft Contract Section 3 (d) says that the "concessionaire
   must maintain to the greatest extent possible a drug-free work environment". Please
   remove the words "to the greatest extent possible" and insert, "to the extent required by
   Federal Aviation Regulations." 135.249 .251 .253 .255 If the Park Service mandates
   a tolerance, please so state.

   Response: Maintaining a drug-free environment “to the extent required by Federal
   Aviation Regulations” is covered by Contract Addendum 1, General Provisions, Section 2
   – compliance with applicable laws. The language in the Concession Contract, Section 3(d)
   is an additional requirement and is NPS standard contract language as well as NPS policy.
   Therefore, the language will not be changed.

15. Question: Section 2: Accessibility:
   Please address the accessibility issue. Do you see any changes that will have to be made
   from our present aircraft operation? No one at this time has handicapped accessible
   aircraft. Some are more "friendly" than others but none truly meet the access requirements
   outlined under the ADA.
   Can we continue to operate with the airplanes we have now?

   Response: The provision referenced in Section II of Exhibit A to the contract restates the
   provision of law that requires services to be provided to the highest extent “reasonably
   possible.” We are not aware of any aircraft generally used to provide services
   contemplated in the prospectus that do not comply with the Americans with Disabilities
   Act (ADA).

16. Question: Section 4: Draft Concession Contract
   section 2: (a) Visitor Services: As of now, it says: Authorized Visitor Services: None.
   Does this mean that we cannot set up a tent on the Ruth, temporary in nature, sometime in
   the future, that would have provisions that might be needed for an unexpected overnight
   stay: stove, food, sleeping bags, first aid, etc, Although we carry these in the airplane, this
   would enhance the safety of the operation and scenic customer comfort in the event we got
   weathered in. Why not make a provision that, with the Superintendent's approval, (other)
   temporary structures may be allowed?

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   Response: The service that is required is defined in Section 2 (a) of the Draft Contract.
   Activities that support the required services of this contract are described in the Operating
   Plan. The draft operating plan does not authorize the temporary storage of supplies in the
   park. The Operating Plan is subject to revision as necessary.

17. Question: Exhibit D: Insurance
   Please address the insurance for air taxi/ air carrier so there is no misunderstanding.
   Please be more specific. Is that $300,000 per seat? Per occurrence?
   On Section A: general liability. $300,000 Ground coverage? Fire damage liability?
   Aircraft Liability: US DOT/ FAA requirement. The State has requirements for insurance.
   What US DOT/ FAA requirement are you referring to? Please state the DOT FAR.

   Response: Contract Exhibit D, Insurance, Section II A requires “Commercial General
   Liability $300,000 per occurrence”. Commercial General Liability insurance covers the
   insured’s entire business operations. This is a per occurrence requirement. Exhibit D,
   Section C requires “Aircraft liability insurance will be as required by the US Department
   of Transportation/Federal Aviation Administration.” The provision of the contract
   requiring compliance with all applicable law would also apply to any state requirement.

18. Question: When will the concession contracts be awarded?
   By October, Fly Denali will have already made commitments to vendors, signed contracts,
   invested a substantial amount into advertising (major publications and CVB's require
   payment for ads by then- in fact, Fly Denali has already signed contracts with payment for
   advertising in visitor guides for 2007). We are assuming that Fly Denali will be awarded
   one of these contracts; if not, we could be misrepresenting ourselves. We would like to
   know by September 1st so that we can proceed with our advertising.

   Response: The NPS will offer the contracts as soon as the contracting process described
   in the Proposal Instructions is complete. We hope to offer the contracts before September
   1, 2006.

19. Question: Principal Selection Factor #2: 3: Reasonable Rates
   What is your criteria for NPS to determine reasonable rates? Is it just for the glacier
   landing portion? If we shorten the length of the trip and keep the amount the same, is this
   What are the NPS Rate Approval Guidelines? If we are agreeing to have our prices meet
   your guidelines, we need to know what the guidelines are beforehand.
   Are the reasonable rates referring to the glacier landing portion of the flight alone or the
   entire tour? We want to clarify whether this refers to the entire flight or just the
   concession portion, which is the landing. i.e. if we keep the glacier landing additional
   price the same, and
   raise the price for the scenic flight, is this subject to NPS approval?
   Are we subject to approval for a possible mid-season surcharge? A substantial increase of
   the cost of fuel mid season might necessitate incurring a surcharge. Does this need to be

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   addressed also? Since it is a surcharge, not related to the glacier landing portion of the
   flight, does it need to be included in gross receipts?
   What justification do we need to increase our rates? (scenic portion, glacier landing, or

   Response: The Draft Contract, Section 2(d) states “All rates and charges to the public by
   the Concessioner for Visitor Services must be reasonable and appropriate and must be
   approved by the Director.” As we have in the past, we expect our approval of the rates to
   be based upon a competitive market determination. Because we expect to award up to five
   contracts the concessioner’s rates must be competitive to secure business and is, therefore,
   comparable to the rates charged by businesses operating in a competitive market outside
   the park. Proposed rates must be submitted 30 days prior to their contemplated use for
   approval. Absent unusual circumstances, the competitive market will make approval

20. Question: Principal Selection Factor #3, 4(a) Background:
   Refers to 5 years prior: can we get a clarification of this? If one of these contracts are
   mutually agreed to lapse or does it only refer to Termination? If we had a contract with
   another corporation to provide services? Is that what you mean by contract? Is it just with
   DNR, OAS, Fish and Game, NPS? Or private vendors and employees also? Fly Denali
   has not had any such contract be terminated, defaulted or forbidden from contracting but
   we wanted to be clear on this.

   Response: Please refer to the wording of question 4 (a). It is asking if you have defaulted
   from or been terminated from a management or concession contract. It does not ask about
   a mutually agreed lapse. The question asks about defaults and terminations.

21. Question: If the prospectus paperwork is turned in early, is the applicant required to
   update with pertinent information should anything change? From time of submission to
   time the contract is awarded. If so, please state that an update will be required.

   Response: Please refer to Proposal Instructions H) Complete Offer “Your proposal must
   reflect the complete offer that you intend to make…” and J) Additional Information “You
   may not amend or supplement your proposal after the submission date…” There is no
   requirement to update information if an offer is submitted before May 3, 2006.
   Amendment or supplementation after May 3, 2006, is not allowed. Certain public
   information that comes to the attention of the NPS for the period of time after submission
   of a proposal but prior to the actual award of a contract will be considered in the selection
   process. See footnote 4 on page 11 of 18 of the Proposal Package portion of the

22. Question: Principal Selection Factor #4: 1 (b), (c) and (d)
   Since Fly Denali is not a start up company, do we have to fill this portion out? Prospectus
   states "amount of money you will need to begin operating the business." "Items you need

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   to acquire in order to begin operating." This sounds like information needed for a new
   business to start glacier landings, not one already in business. Please clarify this.
   Fly Denali is already operating; in fact, no money is needed to begin. Insurance is paid
   until mid June, aircraft are acquired, offices are acquired, etc.

   Response: If you are an on-going business, include in Factor 4, Section 1 b, c, and d only
   the additional assets they you need to acquire to operate the concession, not the assets you
   already have. The assets you already have should be reflected in the balance sheet you
   submit under Factor 4, Section 2.

23. Question: Principal Selection Factor #5: Amount of the Proposed Franchise Fee and/or
   Other Financial Considerations to NPS.       Scoring is 0-4.
   What is the scoring based on? How does Fly Denali get a 4? What is the grading rubric?
   And, (although I think we asked this one before), will everyone be paying the same once
   contracts are awarded, or are we tied to the amount we propose; or is the NPS going to set
   the fee based on what has been offered?

   Response: Scoring for Principal Selection Factor 5 will generally follow this guidance:

    A basis for applying numerical scores to Principal Selection Factor 5 (franchise fee
    offered) needs to be specially considered, as evaluation under this factor, unlike the
    others, is quantitative as well as qualitative. A proposal that agrees only to the minimum
    franchise fee receives a score of 1. A proposal that does not agree to at least the
    minimum franchise fee receives a score of 0. Scoring for proposed franchise fees higher
    than the minimum fee should take into account the amount of the higher fee offered in
    relation to the minimum fee and in comparison to other higher fee proposals that may be
    received. For example, if the minimum fee is 5% of gross receipts and four proposals
    were received, one at the minimum of 5% (with a score of 1), and the others at 7%, 9%,
    and 11%, a score of 2, 3, and 4 for the higher fee proposals respectively would be

    See Question #9 for our response to the other elements of question 23.

24. Question: When these questions are answered, if those answers generate more questions,
   what happens to the 30 days prior to due date to submit questions? Could more
   documentation, forms, questions be added to the prospectus requirements? Will the
   answers be sent to us (all of us) by April 3?

   Response: NPS will not modify or change the prospectus between now and May 3, 2006.
   Please refer to the Proposal Instructions, Section 7. Questions received later than 30 days
   in advance of the proposal due date (May 3, 2006) may not be answered. Because NPS
   must provide equal information to all potential offerors, there must be sufficient time
   allowed to inform all interested parties of any questions and answers. The questions and
   answers will be sent to everyone on the mailing list for this prospectus and will be posted
   on the Denali website

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