Public Agencies Increase Reliance on Private Industry Practices in Response to Enhanced Focus on Stewardship
BEVERLY, Mass.-(Business Wire)-September 23, 2009 - CHM Government Services reports trend in growing reliance on private sector practices, particularly asset management, by government and public agencies with responsibility for hospitality and recreational assets.
CHM Government Services (CHM GS), a leading hospitality and financial advisor to public sector agencies such as the National Park Service, U.S. Forest Service and Department of Defense, has experienced an increase in demand for services focused on better deployment of capital assets and innovative solutions for monitoring long-term results.
“Within the last five years, there has been a notable increase in the scrutiny placed on operations and the expectations of public agencies to become more directly accountable for preserving and sustaining the assets they own and operate,” explains Margaret Bailey, Senior Vice President of CHM GS. “As a result, the definition of stewardship has been expanded to include a focus on financial resource sustainability in addition to achieving traditional, mission-critical and/or environmental goals.”
While some public agencies have additional in-house resources to support growing oversight concerns, the majority does not have access to the staff, nor the expertise required to support the level of transformation necessary to yield sustainable results. In response, CHM GS has been introducing clients to a wide-variety of services, including private sector asset management, more commonly recognized within the public realm as contract oversight. This year alone, CHM GS has successfully introduced and implemented asset management within the National Park Service at two sites: urban-parks area, Gateway National Recreation Area in New York/New Jersey and at Fire Island National Seashore in New York.
“Asset management picks up where traditional public sector hospitality consulting leaves off,” explains CHM GS practice leader Geoffrey Baekey. “Traditional engagements are focused on market, operations and financial performance in support of developing financially viable business models, but often end with the negotiation of a concession contract. Asset management includes the development and implementation of tools and reporting standards to measure and manage contract performance and compliance, which serves to protect and preserve the long-term value of assets and better manage capital requirements, often funded by public agencies.”
Pat Madden, Chief of Commercial Services for the Northeast Region of the National Park Service (NPS), describes recent success in working with CHM GS and piloting asset management services within his region.
“We had a concession contract that was financially compromised due to a debt structure that was not supportable, coupled with a transfer of ownership to a new concessioner and a business plan that did not meet market expectations,” explains Madden. “We retained CHM Government Services who assisted us in restructuring the debt financing with two national lenders; worked with the new concessioner to realign the management organizational structure; identified and implemented management systems to better schedule and manage facility inventory, track financial performance and build management accountability; and, developed and successfully implemented a new business plan. The positive reaction to the initiatives CHM Government Services helped spearhead has been very well received by the NPS and the concessioner who collectively agreed to extend CHM Government Services’ participation for another year,” remarks Madden.
“The opportunity to introduce clients to strategies and management practices that stem from the private sector, yet are customized for implementation within the context of the regulations and complexities surrounding these public agencies, has been an incredible advancement for our clients and their constituents, alike,” concludes Baekey.
About CHM Government Services
CHM Government Services (CHM GS) is dedicated to assisting government and public agencies, and their partners, with complex issues surrounding the ownership and operation of hospitality and recreation assets. CHM GS has assisted with developing market, financial, concession and investment strategies for over 30 National Park units including destinations such as Yellowstone National Park, Statue of Liberty, Grand Canyon National Park, Mesa Verde National Park, Glen Canyon National Recreation Area and Grand Teton National Park. CHM GS professionals have also worked closely with the U.S. Forest Service on the development of strategies for recreation fees and pricing; facility, trail and national reservation system development; as well as assisted the Department of Defense, Services Agency and several state park agencies throughout the U.S. For more information about CHM GS, including a full list of services, contracting vehicles, clients and project case studies, visit chmgov.com.
If you would like more information about CHM Government Services, or to schedule an interview, please contact Geoffrey Baekey at (978) 232-3609 or email gbaekey@chmgov.com.
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