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Lucrative Grand Canyon contract up for bid again

By WTOP Staff

FELICIA FONSECA
Associated Press

FLAGSTAFF, Ariz. (AP) — A lucrative contract to operate some of the most iconic lodging and food locations at the Grand Canyon has been reopened for bidding in a process that will bring changes affecting the millions of people who visit the landmark each year.

The contract first went out for bid a year ago. But Grand Canyon Superintendent Dave Uberuaga said the park didn’t receive any bids adhering to the conditions called for in the 15-year pact.

The new contract requires that the winning bidder operate food trucks on the South Rim and expand patio dining at the historic El Tovar lodge to accommodate crowds during the busy summer months.

It also calls on the winning bidder to demolish six outdated Maswik South lodge units and replace them with 90 standard rooms and 30 rooms with kitchenettes by 2017. In addition, rooms at the rustic Bright Angel lodge must be upgraded.

Other requirements include eliminating on-site laundry services to conserve water, and instituting a lottery system for the cabins and dorms at Phantom Ranch that sits at the bottom of the canyon and can be reached only by mule, foot or rafting the Colorado River.

Bids are due in October, with the contract to be awarded in January, potentially bringing in nearly $1 billion in gross revenue over the next 15 years for the winning vendor.

Under previous bidding, possible concessionaries balked at provisions asking them to pay more than $150 million upfront to current contract holder Xanterra Parks & Resorts for improvements made to the facilities over the years, Uberuaga said.

Grand Canyon cut that cost to $57 million by borrowing money within the National Park Service that it will repay with an increase in the franchise fee for the contract, set at a minimum 14 percent. Xanterra Parks & Resorts currently pays a 3.8 percent fee on gross revenue to the park.

Uberuaga said he’s hopeful the changes will entice bids.

“It’s Grand Canyon, and so a lot of concessionaries would like to have Grand Canyon in their portfolio,” he said.

Xanterra — the country’s largest park concessions management company — didn’t immediately respond Tuesday to a question on whether it would bid on the contract.

David Nimkin, Southwest regional director for the National Parks Conservation Association, credited the Park Service for coming up with a way to make the contract more attractive. But he questioned whether borrowing internally would hurt the ability of Grand Canyon and other parks to serve visitors.

“The liability that the Park Service has assumed with the Xanterra contract is huge, and it’s like an albatross for one important factor in the Park Service’s mandate, which is visitor experience,” he said. “That doesn’t mean Xanterra doesn’t do a good job.”

The Park Service also is asking prospective bidders to submit creative ideas, separately from the contract, for an 11,000 square-foot warehouse that has been eyed for an art and river heritage museum.

Delaware North Companies Parks & Resorts recently was awarded another 15-year contract that includes some services previously provided by Xanterra. That contract begins in January for food and retail services at Grand Canyon Village, Yavapai Lodge and Desert View, a public laundry facility, showers and campground. It is worth about $30 million a year.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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