Thanks to the Hotshot Wakeup Person for this podcast and the person who contacted him with this piece posted at ZeroHedge… many of us would not be reading financial media outlets. It traces back to this Substack piece by a fellow named Matt Stoler. Matt, not being one of our community, talks about parks a lot, but it definitely includes the Forest Service and BLM (including seasonally relevant Christmas tree permits on the Arapaho-Roosevelt).
Stoller begins with a discussion of historical political philosophy/economics with an aside to Tammany Hall which Anonymous and others might enjoy.
It would be interesting to have more history on Recreation.gov from those involved. I remember it was part of the same E-gov initiative that produced PALS- as we worked on it, the idea was “how can we make government run better and serve its citizens better by automating processes.” We assumed at the time that the government would be paying for egov. Also it would be interesting to hear the other side of the story. I recently renewed my passport using a new online service through the State Department. Perhaps they should use the same financial model for passports. What could go wrong?
Like many, I entered the lottery for that BLM area and didn’t realize the bucks were actually going to a contractor.
You can do a lot at Recreation.gov. You can sign up for a pass to cut down a Christmas tree on the Arapaho and Roosevelt National Forests, get permits to fly-fishing, rifle hunting or target practice at thousands of sites, or even secure a tour at the National Archives in Washington, D.C. There are dozens of lotteries to enter for different parks and lands that are hard to access. And all of them come with service fees attached, fees that go directly to Booz Allen, which built Recreation.gov. The deeper you go, the more interesting the gatekeeping. As one angry writer found out after waiting on hold and being transferred multiple times, the answer is that Booz Allen “actually sets the Recreation.gov fees for themselves.”
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Following the U.S. Digital Service’s playbook is what led the government to bid out and allow the creation of Recreation.gov, with its weird and corrupt fee structure. In 2017, Booz Allen got a 10-year $182 million contract to consolidate all booking for public lands and waters, with 13 separate agencies participating, from the Bureau of Land Management to the National Oceanic & Atmospheric Administration to the National Park Service to the Smithsonian Institution to the Tennessee Valley Authority to the US Forest Service.
The funding structure of the site is exactly what George Washington Plunkitt would design. Though there’s a ten year contract with significant financial outlays, Booz Allen says the project was built “at no cost to the federal government.”In the contractor’s words, “the unique contractual agreement is a transaction-based fee model that lets the government and Booz Allen share in risk, reward, results, and impact.” In other words, Booz Allen gets to keep the fees charged to users who want access to national parks. Part of the deal was that Booz Allen would get the right to negotiate fees to third party sites that want access to data on Federal lands.
It’s a bit hard to tell how much Booz Allen was paid to set up the site. Documents suggest the firm received a lot of money to do so, but it’s also possible that total amount was the anticipated financial return. I wrote to Recreation.gov team leader Julie McPherson at Booz Allen to find out what they were paid to build the site, and I haven’t heard back. Regardless, there’s a lot of money involved. For instance, as one camper noted, in just one lottery to hike Mount Whitney, more than 16,000 people applied, and only a third got in. Yet everyone paid the $6 registration fee, which means the gross income for that single location is over $100,000. There’s nothing criminal about this scheme, but it is a form of Honest Graft, or of handing a Ticketmaster-like firm control of our national park
In 2020, an avid hiker named Thomas Kotab sued the Bureau of Land Management over the $2 “processing fee it charges to access the mandatory online reservation system to visit the Red Rock Canyon Conservation Area.” He claimed, among other things, that the Federal Lands Recreation Enhancement Act mandated that this fee was unlawful, because it had not gone through the notice-and-comment period required by the act. Kotab, an electrical engineer by training, is one of those ass-kickers in America, who just goes after a grift because, well, it’s just wrong.
A few years later, a judge named Jennifer A. Dorsey, appointed by Obama in 2013, agreed with him. She looked at the statute and found that Congress authorized the charging of recreation fees for the purpose of taking care and using Federal lands, not administrative fees that compensated third parties. As such, Booz Allen’s ability to set its own prices was inconsistent with the law mandating the public’s right to comment on what we are charged for using our own land.
The BLM sought to appeal, but then dropped it in July. Rather than a bitter procedural argument about classifying fees, the government and Booz Allen have decided they’ll just go through the annoying process of having the public comment on Booz Allen’s compensation, and then ignore us using their phony advisory council process. Here, for instance, is the Mojave-Southern Great Basin Resource Advisory Council Meeting in August simply proposing to substitute new standard amenity fees “equal to the associated Recreation.gov reservation service fee.”
One notable part of this saga is that technically, the BLM and Booz Allen owe refunds to everyone who went through Red Rock Canyon’s timed entry system from 2020-2022, but they’ll probably ignore that and steal the money. That verges into actual graft from the ‘honest’ type, but I suspect Plunkitt did that as well from time to time.
Stoller also recommends some fixes.
And yet, it’s not over. The Federal Lands Recreation Enhancement Act authorization runs out in October of 2023, which means that Congress has to renew it. Hopefully, an interested member of Congress who loves Federal lands could actually tighten the definitions here, and find a way to stop Booz Allen and these 13 government agencies from engaging in this minor theft via junk fees. It wouldn’t be hard, and it would be fun to force a bunch of government agencies to actually do their job and either take over the site themselves or pay Booz Allen a fee for its service. (Another path would be Joe Biden, through his anti-junk fee initiative, simply asserting through the White House Competition Council to the 13 different agencies that they end Booz Allen’s practice of charging these kinds of fees.)