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GAO-24-107208 1 (2024-07-17)

handle is hein.gao/gaoqnz0001 and id is 1 raw text is: Why This Matters Key Takeaways The U.S. Army Corps of Engineers manages hundreds of water resource development projects through its Civil Works program. At many of these projects, the Corps oversees public recreation amenities, such as marinas and campgrounds (see fig. 1). About 260 million visitors per year visit the Corps' more than 400 lake and river projects. Figure 1: Examples of the Corps' Public Recreation Amenities Sources: dbviragoistock.adobeocom; USACE (VIRIN, 130703-A-CE999-025jpg I GAO-24-107208 Private businesses that enter into lease agreements at Corps projects obtain the right to operate recreational facilities and provide amenities, such as to sell food and fuel. These business activities are known as concession operations. According to a December 2023 Corps report to Congress, as of June 2022 the Corps had 378 active concession operations leases in 27 states. (See app. 11 for the locations of active concession operations.) Corps divisions and districts conduct most of the work of managing leases for concession operations. In addition, Corps districts generally collect user fees from concession operators to cover the costs of certain Corps administrative expenses related to the leases. The James M. Inhofe National Defense Authorization Act for Fiscal Year 2023 includes a provision for us to review specific aspects of the Corps' concession operation leasing practices. (Pub. L. No. 117-263, div. H, tit. LXXXI, § 8236(b), 136 Stat. 2395, 3769 (2022)). This report answers questions related to those leasing practices. * According to Corps officials, the Corps considered the ability of concession operators to obtain a fair profit when, in 1994, it established a system of graduated lease rental rates that is based on the amount of annual revenues a concession generates. * The Corps has not documented any reviews of or updated its rental rate system since it was originally adopted in 1994. We recommend that the Corps review and, as necessary, update its system at least every 2 years, Page 1 GAO-24-107208 Army Corps Concessions Operations

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