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Grand Canyon Contract Rebid

Fifteen-year, $1 billion deal modified after RFP a year ago failed to secure satisfactory responses.

A 15-year contract, worth an estimated $1 billion to the winning bidder to operate some lodging and food locations at the Grand Canyon has been reopened for bidding after an initial RFP failed to draw satisfactory responses, reports ABC News.

Among its provisions, the new RFP requires the winning bidder to operate food trucks on the South Rim, expand patio dining at the El Tovar lodge, replace or upgrade a number of lodges and eliminate on-site laundry services to conserve water.

Bids are due in October, with the contract to be awarded in January.

Last year's proposal had required the winning bidder to pay more than $150 million up front to current contract holder Xanterra Parks & Resorts for improvements made to the facilities over the years. That has been cut to $57 million in the current RFP, with the balance financed by an increase in the franchise fee for the contract set at a minimum of 14%. Xanterra currently pays 3.8% on gross revenues to the park.

Delaware North Companies Parks & Resorts recently won a separate 15-year contract for food and retail services at Grand Canyon Village, Yavapai Lodge and Desert View worth about $30 million a year.

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