FSH 2409.15 - TIMBER SALE ADMINISTRATION HANDBOOK
2/88 R-1 SUPPLEMENT 6
CHAPTER 30 - CHANGES IN STATUS OF CONTRACTS
36 - UNCOMPLETED CONTRACTS
36.1 - Contract Disputes (FSM 2454)
36.11 - Claims by the Government Against the Purchaser. A Government claim against the
timber sale purchaser for damages in an expired uncompleted timber sale contract, for any timber
sale awarded on or after March 1, 1979, will be by a written Contracting Officer's Decision
(Section 6(a) Contract Disputes Act (CDA)). The Contracting Officer's Decision will be sent to
the purchaser by certified mail, return receipt requested. If there is a concern that the purchaser
may not accept the certified letter, consider sending another copy of the Decision Letter by
regular mail, including your return address on the envelope. If this letter does not come back to
you, it could be interpreted that the purchaser received it.
Accompanying the Contracting Officer's Decision will be:
1.
A copy of the approved damage appraisal report. Refer to FSH 2409.22, Chapter
70, R-1 supplement for guidance in the preparation of the damage appraisal report.
2.
Copy of Contract Disputes Act (Public Law 95-563).
3.
A Bill for Collection.
4.
Any correspondence pertaining to the matter. Payment of damages will be due
within 15 days of receipt of the Contracting Officer's Decision. If payment of
damages is not made by the timber sale purchaser within the prescribed 15 days,
the Contracting Officer shall process demand against surety in accordance with
instruction outlined in FSH 2409.22, Chapter 70, R-1 supplement.
Expired-uncompleted sales with damages over $2,000 or (1)those cases in which the timber is
not reoffered for resale, (2)reoffered under different conditions, or (3)only a part of the volume
reoffered, must be reviewed and approved by the Regional Forester. The entire file, including
the approved damage appraisal report and draft Contracting Officer's Decision will be submitted
for review (FSH 2409.22, Chapter 70, R-1 supplement).
Exhibit 1 is an example of a Contracting Officer's Findings and Decision. Another example can
be found in FSH 1509.21 - Litigation Support Handbook.
For timber sale contracts which predate the Contract Disputes Act (CDA), refer to FSM 2454.2.
Exhibit 1
(insert CO's address)
1570
(TM)
Date
P.V. Lumber Company
P.O. Box 123
Azusa, Montana 9999
Attn: Mr. Gimmy A. Break
CERTIFIED MAIL - RETURN RECEIPT REQUESTED
CONTRACTING OFFICER'S FINDINGS AND DECISION
This is in regards to your Last Chance Timber Sale, which terminated uncompleted on July 31,
1982. This is my final decision under Section 6(a) of the Contract Disputes Act (41 USC 605
(a) on the damages due the United States Government relating to this terminated, uncompleted
timber sale contract.
1. Introduction.
a. Contract Name:
Last Chance Timber Sale
b. Contractor:
P.V. Lumber Company
P.O. Box 123
Azusa, Montana 99999
c. Contract Number:
20-012345
d. Contract Date:
June 1, 1979
e. Termination Date:
July 31, 1982
f. Contracting Officer:
Ima Right
__________National Forest
P.O. Box __________
__________, _____________ 77777
g. Location:
Northern Region (R-1),
__________ National Forest
__________ Ranger District
h. Type of Contract:
FS-2400-6 (9/73)
i. Claim by Government:
Net damages due the Government at $8,950.
2. Findings. (Should contain all information and references to support the claim.
Reference any correspondence, with a brief summary of content.
Cite any pertinent contract provisions, laws, regulations, or manual references and give a
summary of any violation of these items. Following is only a brief and simple discussion as a
guide. Example Contracting Officer's Findings and Decision letter found in FSH 1509.21 may
also be of value. Amount of details to be included depends on the complexity of the case.)
The above timber sale expired on July 31, 1982, in an uncompleted status. Following are the
volume and payment rates for the timber sale contract.
Original Sale:
Volume Sold: 10,000 MBF
Volume Cut and Removed at Termination Date: 8,000 MBF
Volume Remaining at Termination Date: 2,000 MBF
Advertised Rate: $5.00/MGF
Required Slash Deposit Rate: $2.00/MBF
Bid Rate: $7.00/MBF
Performance Bond: Purchaser posted $1,000 cash bond
Reoffered Sale:
Volume Sold: 2,000 MBF
Advertised Rate: $2.00/MBF
Required Slash Deposit Rate: $2.00/MBF
Bid Rate: $3.00/MBF
By a certified letter, dated May 1, 1982, the contractor was notified that the sale would expire on
July 31, 1982, unless an extension of the termination date was granted. No response was
received to this May 1, 1982, letter; therefore, the sale terminated uncompleted.
In accordance with contract provision C(t)9.4 - Failure to Cut, a damage appraisal was made to
determine if and to what extent the Forest Service suffered damages from this expired and
uncompleted timber sale contract. A copy of the complete damage appraisal is enclosed. A
summary of the damages is itemized below:
a. Cost of resale or reoffering.
$ 500
b. B(t)5.2 & C(t)5.2 - Specified Roads. Purchaser failed to
dispose of slash in right-of-way clearing.
$1,000
c. C(t)9.4 - Failure to Cut. Purchaser did not cut and remove all included Timber.
$8,000
d. Delay in receipt of stumpage payment
$ 100
e. Reforestation costs
$ 350
f. Total Potential Damages.
$9,950
g. Cash Performance Bond.
$1,000
h. Total Net Damages.
$8,950
3. Decision. It has been determined that the Forest Service has suffered damages in the
amount of $9,950 for Purchaser's failure to complete the timber sale contract. With a cash bond
on deposit, the net damages are $8,950.
Enclosed is a Bill of Collection for $8,950 for the remaining amount of damages sustained by the
Government. Please remit payment within 15 days in the form of a certified or cashier's check
made payable to USDA, Forest Service. Mail the check and the original of the Bill of
Collection to the Unit Collection Officer,
National Forest, P.O. Box
,
, 88888.
4. Closing. This is the final decision of the Contracting Officer under section 6(a) of
the Contract Disputes Act (41 USC 605 (a)).
This decision may be appealed to the Agriculture Board of Contract Appeals, Room 2912, South
Building, U.S. Department of Agriculture, Washington, D.C. 20013. If you decide to make
such an appeal, you must mail or otherwise furnish written notice thereof to the Agriculture
Board of Contract Appeals within 90 days from the date you receive this decision. A copy shall
be furnished to the Contracting Officer from whose decision the appeal is taken.
In lieu of appealing to the Agriculture Board of Contract Appeals, you may bring action directly
in the U.S. Court of Claims, within 12 months of the date you receive this decision.
Since the amount in dispute as a result of this final decision is $10,000 or less, and in the event
you appeal this decision to the Agriculture Board of Contract Appeals, at your sole election you
may request that the Agriculture Board of Contract Appeals process this appeal under the
"accelerated" procedure, Section 8(f) of the Contract Disputes Act (41 USC 607(f) or under the
"small claims" procedures, Section 9 of the Contract Disputes Act (41 USC 608).
The notice of appeal, which is to be given by you as the contractor or by an attorney acting on
your behalf, and which may be in letter form, should indicate that an appeal is intended, should
refer to this decision, and should identify the contract number. The notice of appeal may
include a statement of the reasons why the decision is considered to be erroneous.
I am enclosing a copy of the following documents for your information:
a. Damage Appraisal Report.
b. Contract Disputes Act (Public Law 95-563).
c. Bill of Collection.
d. Letters of August 1, 1982 (Note: This should be the letter that notifies the purchaser
the timber sale has expired, that he/she has not more right to the sale and the Government
will determine the amount of damages, if any.), May 1, 1982, June 1, 1979, etc.
IMA RIGHT
Contracting Officer
Enclosures (6)