B-307319, National Park Service--Special Park Use Fees, August 23, 2007

B-307319 Aug 23, 2007 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The National Park Service (NPS) may set special park use fees based on market value when it is acting under business-type conditions, but it may not double charge for costs by setting a two-part fee in which one part is based on market value and the other based on costs. Both the Independent Offices Appropriations Act (IOAA) of 1952, codified at 31 U.S.C. sect. 9701, and section 3a of title 16 of the United States Code authorize NPS to charge a user fee. When providing commercial goods, services, or resources, NPS may charge a fee based on market value under the IOAA and, under section 3a, calculate its actual costs, deduct that amount from the fee collected, and credit that amount to the current NPS appropriation. Any fees collected in excess of costs must be deposited into the miscellaneous receipts of the Treasury. Alternatively, NPS may choose to set special park use fees to recover only its actual costs and retain those under section 3a. View Decision B-307319, National Park Service--Special Park Use Fees, August 23, 2007 Decision Matter of: National Park Service—Special Park Use Fees File: B-307319 Date: August 23, 2007 DIGEST The National Park Service (NPS) may set special park use fees based on market value when it is acting under business-type conditions, but it may not double charge for costs by setting a two-part fee in which one part is based on market value and the other based on costs. Both the Independent Offices Appropriations Act (IOAA) of 1952, codified at 31 U.S.C. sect. 9701, and section 3a of title 16 of the United States Code authorize NPS to charge a user fee. When providing commercial goods, services, or resources, NPS may charge a fee based on market value under the IOAA and, under section 3a, calculate its actual costs, deduct that amount from the fee collected, and credit that amount to the current NPS appropriation. Any fees collected in excess of costs must be deposited into the miscellaneous receipts of the Treasury. Alternatively, NPS may choose to set special park use fees to recover only its actual costs and retain those under section 3a. DECISION In February 2006, GAO reported that National Park Service (NPS) park units were not consistently implementing NPS special use permit guidance for fee-setting and cost-recovery.[1] In the course of this work, we raised concerns about the underlying legal authority for NPS fee-setting guidance. We were concerned that park units, following NPS guidance, might charge fees higher than authorized. This decision addresses whether NPS has authority to charge fees for special park uses that may exceed agency costs for managing or supporting such uses.[2] We conclude that NPS may base fees on market value, but may not charge a two-part fee based on both costs and market value. Current NPS guidance improperly permits park units to combine actual costs incurred by NPS and market value in setting the user fee. BACKGROUND NPS provides user fee guidance to park units in three key documents: first, NPS's Management Policies 2001, which provides agencywide guidance on a variety of topics, including special park uses and fees;[3] second, Director's Order #53: Special Park Uses, which clarifies and supplements Management Policies 2001 by setting forth policies and procedures for administering special park uses on lands;[4] and third, Reference Manual 53: Special Park Uses, which provides detailed guidance for carrying out the agency's special park use program.[5] Management Policies 2001 envisions a two-part fee: a cost recovery and a use charge. Management Policies 2001, sect. 8.6.1.2. It requires that –[a]ll costs incurred by the Service in writing the permit, monitoring, providing protection services, restoring park areas, or otherwise supporting a special park use will be reimbursed by the permittee. When appropriate, the Service will also include a fair charge for the use of the land or facility.—[6] Id.Director's Order #53 implements this two-part fee by specifying that charges should reflect the –fair market value— for the requested use, noting that the fair market value of a special park use –is the value of the lands or facilities used, plus NPS costs incurred in managing or supporting the use.— Director's Order #53, sect. 3.6. It further addresses the separate disposition of the two parts of the fee by noting that –NPS will retain funds recovered for the cost of managing a special park use— while –[c]harges arising from the use of NPS lands and facilities must be deposited in the U.S. Treasury, unless otherwise specifically authorized by law.— Id.Reference Manual 53 provides detailed guidance for calculating the two parts of the fee in separate sections addressing recoverable costs and land or facility use fees.