R2 SUPPLEMENT 2400-95-5
EFFECTIVE 11/08/95
2432
Page 1 of 2
FOREST SERVICE MANUAL
DENVER, CO
TITLE 2400 - TIMBER MANAGEMENT
R2 Supplement No. 2400-95-5
Effective November 8, 1995
POSTING NOTICE: Supplements are numbered consecutively by Title and calendar year. Post
by document name. This supplement replaces all Region 2 text except Interim Directives (ID).
Retain this transmittal as the first page of this document. The last supplement to this Title was
Supplement 2400-95-4 to FSM 2430-2431.
Document Name
2432
Superseded New
(Number of Pages)
-
2
Digest:
2432 - Reissues presale preparation direction with minor editing and formatting changes.
ELIZABETH ESTILL
Regional Forester
R2 SUPPLEMENT 2400-95-5
EFFECTIVE 11/08/95
2432
Page 2 of 2
FSM 2400 - TIMBER MANAGEMENT
R2 SUPPLEMENT 2400-95-5
EFFECTIVE 11/08/95
2432.04b - Forest Supervisor.
2. As a minimum, each National Forest must establish a bid monitoring program for all
competitive sale offerings over $2,000 in value. A monitoring program for all competitive sale
offerings less than $2,000 is optional unless such sales make up a substantial portion of the
Forest's timber sale program.
The monitoring unit may be a Ranger District, combination of Ranger Districts, Working Circle,
National Forest, or other logical areas.
The Regional Office will provide each National Forest with a bid monitoring report which
summarizes the bidding activity of sales over $2,000 in value, for each Ranger District. This
report is available for each calendar quarter in which sales were sold and should be available
within 6 weeks after the end of the quarter.
2432.35a - Specified Roads.
6. Use of Appropriated Funds. Contributed funds may be used to produce profit margins
up to but no greater than 50 percent of normal when previously authorized by the Regional
Forester.
Example 1:
Sale Volume
Estimated Specified Road Cost
Normal Profit Margin
50 percent of normal profit margin
Appraised Profit Margin
Difference between amount available for
profit margin and 50 percent of normal
($10.00 - $3.00)
$ 10,000 MBF
$ 200,000
$
20
$
10
$
3
$
7
Amount to be contributed 10,000 MBF x $7/MBF = $ 70,000
Example 2:
Sale Volume
Estimated Specified Road Cost
Normal Profit Margin
50 percent of normal profit margin
Appraised Profit Margin
Difference between amount available for
profit margin and 50 percent of normal
($10.00 - (-)$3.00)
$ 10,000 MBF
$ 200,000
$
20
$
10
$
-3
$
13
Amount to be contributed 10,000 MBF x $13/MBF= $130,000 1/ 100,000
1/ Not to exceed 50 percent of estimated specified road cost ($200,000 x .50).