R-10 SUPPLEMENT 2409.18-93-1
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FOREST SERVICE HANDBOOK
JUNEAU, ALASKA
FSH 2409.18 - TIMBER SALE PREPARATION HANDBOOK
Region 10 Supplement No. 2409.18-93-1
Effective April 9, 1993
POSTING NOTICE. Supplements are numbered consecutively by title and
calendar year. Post by document name. Remove entire document and replace with
this supplement. Retain this transmittal as the first page of this document. The
last supplement to this Handbook was Region 10 Supplement No. 2409.18-92-8,
effective December 1, 1992.
Document Name
53.1-56.31 (R-10 Supp 2409.18-92-6)
51-55.21
Superseded New
(Number of Pages)
14
0
0
13
Digest:
53.42 - Adds shovel yarding as a Sale Area Map symbol.
55.2 - Deletes "Weighted Average Stumpage Rate Bidding" and adds "Average Bid
Premium Bidding" for total sale value with proportionate rates for species and
products determined by Forest Service staff.
/s/Michael A. Barton
MICHAEL A. BARTON
Regional Forester
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53 - TIMBER SALE CONTRACT.
53.1 - Timber Sale Contract, Form FS-2400-3. Use form FS-2400-6 C(T) provisions
to supplement form FS-2400-3 provisions.
53.2 - Timber Sale Contract, Form FS-2400-6. For special provisions, tables, and
blanks in Division A or C, use capitalized words without an article as in Division B,
Index to Terms. Replace "merchantable" or "unmerchantable," with "meeting
utilization specifications." Use unqualified reference numbers such as "according to
B3.47" and not "according to the provisions of B3.47."
1. A1 - Location and Area, applicable to B1.1, Sample Format. "This Sale
Area of
acres more or less is located in: Tongass National Forest, Kosciusko
Island, at 56°2' 30" N, latitude and 133°40' W, longitude. Petersburg Quarter
Quadrangles A-5 SW and A-6 SE."
2. A2 - Volume Estimate and Utilization Standards, applicable to B2.1, B2.2,
B2.4 and B6.4.
53.2 - EXHIBIT 01 IS A SEPARATE DOCUMENT
3. A7 - Scheduled Rate Redetermination, applicable to B3.31. Establish, FSM
2420.3, the "cut and scaled" or "paid for and released" volume at bid rates before
lower redetermined rates become effective.
4. A8 - High Stumps, applicable to B6.412, Sample Format. "Not
higher than one-third of the stump diameter with a minimum of 12 inches."
5. A13 - Scaling Instructions & Specifications, applicable to B6.8.
53.2 - EXHIBIT 02 IS A SEPARATE DOCUMENT
6. A15 - Minimum Scaling Volumes, applicable to B6.81. The minimum
volume for Continuous Scaling Services: 1,500 MBF every 2 weeks on the Tongass
National Forest, 1,000 MBF on the Chugach National Forest; for Intermittent
Scaling Services on a twice weekly basis, 150 MBF on the Tongass National Forest
and 100 MBF on the Chugach National Forest.
7. A18 - Maximum Amount of Purchaser's Obligations per Operations Fire,
applicable to B7.41. Assume 300 MBF a year harvest per person, the firefighter
AD-3 rate for Alaska-Interagency Fire Business Management Handbook, FSH
5109.34, and 10 days of fire liability.
Sale Volume :- Years of Harvest = Annual Harvest
Annual Harvest :- 300 MBF Per Person = Number of Persons
Number of Persons x 12 hours a shift x 10 days x AD-3 hourly rate = A18
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8. A19 - Termination Date, applicable to B8.2. Estimate the contract period
including award and termination date. For a road completion date after June 30,
exclude the balance of the year as an operating season.
53.23 - Division C. Forest Supervisors submit proposed Regional special provisions
to the Regional Office 60 days before the advertisement date of the timber sale-30
days for nonrecurring provisions. Staff reviews Regional provisions and submits
them to interested groups, but need not submit nonrecurring provisions to
interested groups. The Regional Forester approves special provisions.
53.24 - Other Contract Documents.
1. Sale Area Map. Additional map symbols:
|
| | Specified log transfer facility site, B5.2
P
Partial suspension yarding specified, B6.42, C6.42
F
Full suspension yarding specified, B6.42, C6.42
SH Shovel yarding specified, B6.42, C6.42
=== Fall dead trees in unit not meeting utilization specifications,
~~~ C2.31
| Do not fall dead trees in unit not meeting utilization
~~~ specifications, C2.31
/\ Eagle nest tree, C6.4
a,b,c Categories of Stream Protection, Block Marks Upper Limit, C6.51
53.3 - Timber Sale Contract, Form FS-2400-6T. Retitle the map symbols, Section
53.24, for the "T Contract." In place of "Subdivision," use "Payment Unit." List
each specified road or segment in the Schedule of Items as a payment unit.
53.4 - Forest Products Sale Permit, Form FS-2400-4. Make collections, FSM 6530,
in one payment and issue the permit after receiving payment subject to minimum
charges for small sales, FSM 2431.31c.
Block 2 - At "Reg 36 CFR 223," insert the regulation governing the sale and
whether salvage (S) or nonsalvage (NS). Leave compartment and working circle
numbers blank. For "Size Class," show $10-$10,000. Check whether regulated or
unregulated cuts.
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Block 4 - For tree measurement sales, add the following notation:
"Permitee accepts the given volume as final."
And for sale values under $50, FSM 2431.31c, add:
"This sale is final and not subject to refund."
Block 5 - Enter slash disposal instructions; if requiring cooperative deposits,
show the types of Forest Service work and the rate charged.
Block 6 - Log Rule: Scribner Decimal C if board feet measure or Smalian's if
cubic feet measure.
Block 8 - Forest Supervisors complete Reported Sold at the end of the
"payment receipt" quarter. For extensions, do a comparison appraisal, FSH
2409.15; if standard rates, do a rate comparison justification.
Block 9 - Label products other than sawtimber by "live" or "dead." Sell
sawtimber or other products for at least standard rates unless supported by
appraisal, subject to minimum rates, or as authorized for administrative use.
Insert slash disposal rates. Base slash costs or operator costs used to reduce
standard rates on a slash disposal plan.
Block 11 - Complete from the copy of form FS-6500-89.
Block 12 - Forest Supervisors complete Reported Cut at the end of the "sale
cut" quarter or the sale expired with no refund of stumpage fees.
Block 13 - Base Knutson-Vandenberg collections on a Sale Area Improvement
plan. Minimum rates apply, FSM 2431.31. Under Remarks, show any Salvage Sale
Fund amounts, supported with an approved plan.
55 - APPRAISAL AND PROSPECTUS.
55.2 - Prospectus. Exhibit 01, a sample prospectus modified for Region 10, has user
notes in bold print as they appear on the Data General word processor, but not in a
finished prospectus. Symbols "@" indicate adjust text to fit individual sale
conditions. Use the FIND key to locate symbols. Press FIND, "@", and NEW LINE.
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55.2 - Exhibit 01
Sample Prospectus
Timber sale @ number or name, @ Tongass or Chugach National Forest, @ name
Ranger District.
1. INTRODUCTION. This prospectus supplements the published
advertisement to enable prospective bidders to decide whether to further
investigate the sale. The contract excludes descriptions, estimates, and other data
in this prospectus, unless otherwise stated. If the prospectus contains an error or
contradicts the sample contract, the contract governs. The Forest Service urges
bidders to inspect the sale area and the sample contract and make their own
estimates before submitting a bid. The sale uses form FS-2400-@. Obtain the
appraisal, other information on the timber, and conditions of sale and bidding at
Forest Service offices named in the enclosed advertisement.
2. BIDDING. Bidders must submit SEALED bids on prepared forms which
have instructions to bid and submit the required bid guarantee. Bids must
represent the timber sale TOTAL BID VALUE. Contracting officers use the
following method to distribute the bid premium among advertised species rates:
Total Bid Value :- Total Advertised Value = Bid Ratio
Bid Ratio x Advertised Rate For Each Species = Bid Rate/MBF
The average bid rate after assignment of the bid premium shall total to within
$0.01 per MBF of the average bid rate prior to the assignment of the bid premium.
The following example illustrates the proportionate rate method to assign the bid
premium among species.
Rocky Ridge Sale
Total advertised volume:
Total Advertised Value:
Total Bid Value:
Bid Ratio:
Species
Volume
MBF
2,400 MBF
$304,000
$430,000
1.4145 ($430,000 :- $304,000)
Adv.
Rate/MBF
Applied Bid
Ratio
Bid Rate/MBF
PP
800
$160
x
1.4145
=
$226.32
DF
1,200
$120
x
1.4145
=
169.74
WF
400
$80
x
1.4145
=
113.16
Totals:
2,400
$304,000
55.2 - Exhibit 01--Continued
$430,008
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Add for SBA sales. The Chugach NF does not have SBA sales.
@The Forest Service considers bids from others if no small business concern makes
a valid bid for a small business set-aside sale.
@The Forest Service considers bids from others if no small business concern makes
a valid bid for a special salvage sale set aside for small business firms with 25 or
fewer employees.
Add for resale of timber from an uncompleted contract.
Fifty percent or more of the timber in this sale remained uncut upon termination of
a previous contract with @name of purchaser or third party at time of termination;
36 CFR 223.86 prohibits consideration of a bid for this sale from the previous
purchaser or a person currently affiliated with the previous purchaser. Bidders
must complete a certification of nonaffiliation statement and attach it to the bid
form.
3. LOCATION AND DESCRIPTION OF TIMBER. Refer to the sample
contract and sale area map for legal subdivisions and the location of cutting areas,
the acreage of sale area, and harvest unit acreage by method. The following general
location, routes of access, acreages, and other location data do not supersede the
sale area map or sample contract.
Add a description of the timber, an estimate of log quality by percentage of
volume by species, any special logging requirements, and show the status
of marking such as, "Sale premarked," or give the estimated volume or the
percentage of total volume marked on the advertisement date.
4. TIMBER VOLUMES AND RATES. The data herein made available, but
not a part of the Timber Sale Contract, do not estimate a purchaser's own recovery.
The quality, size, and age class of the timber reflect estimates based on detailed
cruise information.
For sawtimber sales with advertised per-unit rates, show the volumes by
species in thousands of board feet and the estimated quantities of other
products in common units of measure.
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55.2 - Exhibit 01--Continued
Species
Sitka
Spruce
Logs
Hemlock
Logs
@
@
Sawlogs
@
@
Sawlogs
Estimated Volume, MBF
Base Rate
$ @
@
@
@
Advertised Rate
$
Required Deposits:
Slash Disposal
$
(16 U.S.C. 490)
Road Maintenance
$
(16 U.S.C. 537)
Road Reconstruction
$
(16 U.S.C. 537)
Road reconstruction includes deposits, C(T)5.121#, surface replacement
deposits, C(T)5.413#, and share cost road deposits.
Estimated Volume, CCF
BF/CF ratio to 3 decimal places.
Appraisal may establish stumpage value as if unconstructed roads or other
developments needed by the purchaser to remove the timber were in place. When
the purchaser accomplishes such construction, the Forest Service deducts purchaser
credit for road construction, not to exceed the estimated construction cost of such
roads or other developments specified in the timber sale contract, from stumpage
payments made by or due from purchaser for other than minimum stumpage rates
and required deposits for slash disposal and road maintenance, 36 CFR 223.62.
Add for deficit sales with specified roads costs of $20,000 or more.
The appraised stumpage rates, Indicated Net Stumpage Rates, Line 39 of the 240017 Appraisal Summary, have been increased by $@ per @ , to reach base rates.
Provision C(T)4.1# applies to the timber sale contract for opted specified roads and
requires that stumpage rates paid by a small business purchaser include the full
construction or reconstruction costs of the specified roads listed in the contract in
addition to the base rates shown in the sample contract.
Add for deficit sales.
An insufficient value of timber at advertised rates to permit purchasers to recover
the total cost and normal profit and risk allowance equals $@ per @ . At
advertised prices, the amount of unusable purchaser credit equals $@.
Add for lump sum sales.
The minimum total lump sum acceptable bid for @total number trees equals $@ for
timber. Additional deposits required for slash disposal total $@.
Add for a scheduled rate redetermination.
The Forest Service plans to redetermine rates, A(T)7, as of @date.
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55.2 - Exhibit 01--Continued
Add for collected Knutson-Vandenberg deposits.
Total timber value includes estimated Knutson-Vandenberg deposit for sale area
improvement work in a total amount of $@ .
5. PERIOD OF CONTRACT. The normal operating season spans @ to @. The
contract terminates on @
. The Forest Service may grant a contract extension if
the purchaser meets specified conditions.
Add for sales over 1 year-C(T)6.3 instructions.
The purchaser must submit a general operating plan to the Forest Service for
approval before operations begin or within 60 days of sale award, showing how the
purchaser plans to complete the contract by the termination date.
6. PAYMENT. The purchaser makes deposits for timber-related charges in
advance of cutting, C(T)4.221 - Advance Deposits, but may use established
purchaser credit, transfer purchaser credit into the contract, or use an acceptable
payment guarantee.
The awardee, when signing and returning the contract, makes a downpayment, 36
CFR 223.49, of not less than 10 percent of the advertised rate plus 20 percent of the
bid premium. The bidder may use effective purchaser credit to make a
downpayment, which does not apply for payments, transfer to other sales, or qualify
for refund until the bidder meets the criteria of C(T)4.220# - Downpayment.
The high bidder must meet additional downpayment requirements if:
a. The high bidder, or an affiliate after September 29, 1988, failed to perform
according to the terms of a Forest Service or Bureau of Land Management
timber sale contract which resulted in notification by a Contracting Officer of a
contract expired uncompleted or terminated for cause; and
b. The estimated value of the unscaled timber on scaled sales, or the
estimated value of the timber outstanding on tree measurement sales,
included in those contracts exceeding $100,000; and
c. Unpaid damages claimed by the Government remain outstanding prior to
award of this contract and the bidder did not take corrective action to avoid
future deficient performance.
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55.2 - Exhibit 01--Continued
A high bidder meeting the additional downpayment criteria must make a minimum
downpayment equal to 20 percent of the total advertised sale value, plus 40 percent
of the total bid premium, and cannot apply the amount deposited as a downpayment
to other uses until the amount of the downpayment exceeds the value of the
remaining timber. When the Forest Service receives the downpayment and a
satisfactory performance bond and the purchaser executes the timber sale contract,
the Forest Service returns the bid guarantee.
C(T)4.264# requires periodic payments if the period between the award date and
the termination date exceeds a normal operating season. For sales advertised
without construction of specified roads, the initial payment date equals the
midpoint between the award date and the termination date. For sales with
construction of specified roads, the initial payment date equals the midpoint
between the planned road completion date in C(T)5.101# and the termination date.
By the initial payment date, the purchaser must pay for or deposit cash in lieu of
payment in the greater amount of 50 percent of bid premium value or 35 percent of
the total contract value at bid date, exclusive of Required Deposits, rounded up to
the next $100.
Purchaser must make an additional periodic payment for sales with 2 or more
operating seasons in the amount of 75 percent of the total contract value at bid
date, exclusive of Required Deposits, rounded up to the next $100. The due date
equals the midpoint of the last Normal Operating Season, or 12 months from the
initial payment, whichever occurs first.
The Forest Service may adjust the contract term, 36 CFR 223.52, by MarketRelated Contract Term Addition, C(T)8.212, for a reduction in wood product prices
except if: 1) the contract specifies the removal period; 2) the Contracting Officer
deems the timber as in need of urgent removal, or; 3) delay could cause timber
deterioration or resource damage.
Add if specified road costs exceed $20,000:
If a qualified bidder elects Forest Service construction of specified roads, the
contract provides for collection of not less than the full cost of the roads stated
herein, in addition to the base rate value and required deposits. For scaled sales,
the purchaser must pay, based on scaled timber, at a rate accelerated on 80 percent
of the estimated volume. @The form FS-2400-6 contract provides that Purchaser
make cash deposits if charges for stumpage include less value above base rates than
needed to meet the collection schedule under the contract. @The form FS-2400-6T
contract provides for collecting the full estimated cost of roads based upon
premeasured volume.
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7. PERFORMANCE BOND. The penal sum of the bond equals 10 percent of
the total bid value of the sale, rounded up to the nearest $100 if the total bid value
equals $10,000 or less and rounded up to the nearest $1,000 if the total bid value
exceeds $10,000. The maximum bond equals $500,000. The minimum bond must
equal at least $@
.
If helicopter yarding, use the greater of 10 percent of the contract bid
value or 25 percent of the timber yarding costs plus 50 percent of any cost
for yarding or piling unused material.
Add if relevant.
The purchaser may request a revision in contract language to authorize deferment
of payment for timber felled, but not removed, up to the penal sum of the
performance bond.
8. SPECIFIED ROADS. See the sample contract for detailed information.
The Forest Service does not guarantee the estimates and information contained
herein, together with related material.
Road
Number
Name
Service
Level
Approximate
Mileage
Purchaser Required
Credit
Completion
Limit
Date
Designate, as separate segments, all "Reconstruction" roads or portions.
Total purchaser credits: $@.
Total estimated construction cost equals $@.
Total estimated construction cost including Davis-Bacon rates equals $@.
Add if specified road costs exceed $20,000.
A small business qualified bidder can elect Forest Service construction of specified
roads per the National Forest Management Act of 1976. The Forest Service
constructs such roads through Public Works Contracts and does not award timber
sales until receiving satisfactory road construction bids within 120 days of timber
sale bid opening-150 days if the total bid value plus required deposits exceeds
$1,000,000 and the Department of Labor does an EEO compliance review, or if the
Forest Service fails to receive a satisfactory bid and the bidder agrees to do road
construction. Completion dates apply in any event.
Add if road construction standards higher than needed for the sale.
Pursuant to Public Law 88-657, Section 4, the contract requires construction of road
number@s @ to a design standard higher than needed to log this sale. The
purchaser may elect to have the Forest Service construct @this @these road@s. If a
non-small business purchaser elects Forest Service construction, the purchaser
must deposit $@ with the Forest Service for the purchaser's share of the cost of road
number@s @.
55.2 - Exhibit 01--Continued
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Such deposits count as earned purchaser credit. If the purchaser elects to construct
road number@s @, the Forest Service shall pay the purchaser $@ in @cash
@materials and $@ becomes purchaser credit as shown in A(T)10 of the sample
contract. Completion dates apply in any event.
If the Forest Service constructs specified roads, at A(T)9 of the sample
contract, change the title to "Permanent Roads To Be Constructed by
Forest Service." At A(T)10, A(T)11, and A(T)12, delete and replace with
new pages. Add "None" if relevant. At A23 or AT20, add C(T)2.32 Construction Clearing, C(T)4.1# - Amount Payable for Timber, and C(T)8.41
- Limitation of Performance by Other Than Purchaser. Remove C(T)5.2 Standard Specifications for Construction of Specified Roads.
For specified roads constructed by Public Works Contract, the following policies
apply: 1) The purchaser retains interest in the right-of-way timber; 2) Include
timber-sale utilization specifications, including log lengths, in the road
specifications. Assess damages to the road contractor for improperly manufactured
logs; 3) The road contractor must place the logs in deck areas, specified by the
Forest Service, for easy removal by the timber sale purchaser; 4) The purchaser
must make an advance stumpage deposit for right-of-way timber before removing it;
and 5) "Abnormal delay in Scaling caused by Purchaser," division C2.32, means 60
days or more.
Add to bring sale to 50 percent of normal profit and risk.
For insufficient value of timber, after including the bid premium following the sale
award and the high bidder elects Forest Service road construction, the Forest
Service does not offset the deficit with contributed funds. If the purchaser elects to
perform road construction, the Forest Service plans to offset the deficit by providing
contributed funds in the form of materials or cash needed to construct specified
roads in the sale. The maximum value of cash or materials available to offset the
deficit equals $@. The Forest Service plans to decrease the amount of contribution
by an amount equal to the bid premium at the time of contract preparation for
signature.
9. INAPPLICABLE STANDARD PROVISIONS. See sample contract.
10. SPECIAL PROVISIONS. See sample contract.
11. FINANCIAL ASSISTANCE. The Small Business Administration may assist
small business concerns in the form of guaranteed bank loans or direct participation
SBA loans to finance construction of specified roads. Applicants must meet size,
eligibility, and credit requirements of the SBA or a local bank. Failure to
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55.2 - Exhibit 01--Continued
obtain a loan in no way affects requirements of bid for advertised timber sale
or the Timber Sale Contract. As the purchaser cuts timber and if the purchaser
requests, the timber sale contract can provide repayment of direct SBA loans
through the Forest Service.
12. SET-ASIDE SALES.
Add if a set-aside sale.
@Section 15 of the Small Business Act of 1958 authorizes preferential award of this
sale to a small business concern. Any bidder desiring preferential consideration for
award as a small business must certify this status as specified on the bid form.
Add if special salvage set-aside for firms with 25 or fewer employees.
@Section 15 of the Small Business Act of 1958 authorizes preferential award of this
sale to a small business concern. Firms eligible for such preferential bidding must
have 25 or fewer employees and must certify their status. See the bid form
instructions.
The Small Business Administration may verify the high bidder's size status. A
small business that does not qualify for the program must obtain a recertification of
size before self-certifying again for small business set-aside.
The next paragraph does not apply to special salvage timber sales.
@Firms qualifying as small business under Section 15 of the Small Business Act
must manufacture at least 50 percent of the advertised sawtimber volume included
in this sale.
13. LOG EXPORT AND SUBSTITUTION RESTRICTIONS. Purchasers may
not transport logs, cordwood, or other primary forest product, derived from included
timber, from Alaska for processing without prior Regional Forester consent.
14. EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE REVIEW. If
bid value plus required deposits for this contract exceeds $1 million, before award,
the Forest Service requests an EEO compliance review of the high bidder, Executive
Order 11246 of September 24, 1965, as amended by Executive Order 11375 of
October 13, 1967.
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55.2 - Exhibit 01--Continued
See Chapter 72.12. Contact:
Regional Director for Office of Federal Contract Compliance Programs
U.S. Department of Labor
Employment Standards Administration
1111 3rd Avenue, Suite 610
Seattle, WA 98101-3212
Telephone: 206/553-4508
Facsimile: 206/553-2694
15. AWARD. Before awarding the contract, the Contracting Officer
determines financial ability, 36 CFR 223.101, and if the high bidder has a defaulted
timber sale contract with undetermined, disputed, or unpaid damages, may require
the bidder to furnish information or securities sufficient to document financial
ability.
16. GENERAL. Public Law 92-500, Section 402, requires a National Pollutant
Discharge Elimination System permit for any pollutants discharged into waters of
the United States. The Federal Environmental Protection Agency administers the
permits for Alaska.
Regional Administrator, Permits Branch
Region X, EPA
1200 6th Avenue
Seattle, WA 98101
If the sale contains a specified log transfer facility, the purchaser must
protect it, B6.22 - Protection of Improvements, add:
If the purchaser desires to use equipment other than the designed log transfer
facility for use of an @ to transfer logs from land to water, purchaser must submit to
the Forest Service, engineering calculations stamped/signed by a Registered
Engineer showing that the log transfer facility can accommodate the loads
generated by the proposed equipment use. The purchaser can request as-built
drawings and information on the log transfer facility from the Forest Service.
Add other information such as discussion of contract changes or
procedures. For sales in urgent need of harvesting, include a statement of
the potential to consider contract term adjustment on other sales.