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FOREST SERVICE HANDBOOK
MISSOULA, MONTANA
FSH 2409.15 - TIMBER SALE ADMINISTRATION
R-1 Supplement No. 2409.15-99-2
Effective
POSTING NOTICE: Supplements are numbered consecutively by handbook
number and calendar year. Post by document name. Remove entire document
and replace with this document. Retain this transmittal as the first page of this
document. The last R1 Supplement to this handbook was Supplement
2409.15-99-1 to chapter 60.
Page Code
36.11--1 to 36.11--5
Superseded
New
(Number of Pages)
5
--
Superseded Amendments
6, 2/88
Document Name
2409.15, 70
--
6
Digest:
This Supplement removes section 36 of this handbook to clarify procedures, update
addresses, and references to Contract Disputes Act. Moves the contents to Chapter
70, section 72 to correspond to the WO handbook section dealing with Government
claims against the Purchaser.
DALE N. BOSWORTH
Regional Forester
R-1 SUPPLEMENT 2409-15-99-2
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FSH 2409.15 - TIMBER SALE ADMINISTRATION HANDBOOK
R-1 SUPPLEMENT NO. 2409.15-99-2
EFFECTIVE
CHAPTER 70 - CONTRACT LAW
72.1 - Claims by the Government Against the Purchaser. A Government claim
against the timber sale purchaser for damages (FSM 2454.1 and 2454.11a) in an
expired uncompleted timber sale contract, for any timber sale awarded on or after
March 1, 1979, will be written by a 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. A Bill for Collection.
3. 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
instructions 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 01 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.
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72.1 - Exhibit 01
Contracting Officer's Findings and Decisions
(Insert CO's address)
1570
(TM)
Date: *
P.V. Lumber Company
P.O. Box 123
Azusa, Montana 99999
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:
b. Contractor:
c.
d.
e.
f.
Contract Number:
Contract Date:
Termination Date:
Contracting Officer:
Last Chance Timber Sale
P.V. Lumber Company
P.O. Box 123
Azusa, Montana 99999
20-012345
June 1, 1979
July 31, 1982
Ima Right
_____________ National
Forest
g. Location:
h. Type of Contract:
i. Claim by Government:
P.O. Box _______
_____________, __ 77777
Northern Region (R-1),
___________ National Forest,
___________ Ranger District
FS-2400-6 (9/73)
Damages due the Government are $9950
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72.1 - Exhibit 01--Continued
Contracting Officer's Findings and Decisions
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 of 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 Meeting Utilization Standards Remaining at Termination Date:
2,000 MBF
Advertised Rate: $5.00/MBF
Required Slash Deposit Rate: $2.00/MBF
Bid Rate: $7.00/MBF
Contract Value at Termination (2000 MBF X $7.00): $14,000
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
Resale Value: (2000 MBF X $3.00) $6,000
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.
Include all items of damage calculated for this default action. These may vary for
each individual sale pursuant to C(T) 9.4 and in accordance with FSH 2409.22,
chapter 70.
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72.1 - Exhibit 01--Continued
Contracting Officer's Findings and Decisions
a. Contract Value at termination
$14000
(Remaining volume that
b. Other C(T) 9.4 Damages (list by item)
$1. 500
Cost of Resale
$1000
2. Cost of completing Pur
$3. 350
Additional Reforestati
$4. 100
Delay in Receipt of Stu
c.
Total Potential Damages (Sum of a. plus b.)
$15950
e.
Resale (or appraised value)
f.
Total Damages (line c. minus line e., 0 if negative)
$ 9950
d.
Unencumbered cash in account
$1000
$ 600
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 difference is $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 Board of Contract Appeals, U.S.
Department of Agriculture, Washington, D.C. 20250. 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 (41 U.S.C. 606). 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 Federal Claims, within 12 months of the
date you receive this decision. (41 U.S.C. 609).
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72.1 - Exhibit 01--Continued
Contracting Officer's Findings and Decisions
Since the amount in dispute as a result of this final decision is $50,000 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" procedures,
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).
(Note: see WO Amendment 2409.15-92-6 for substitute language if claim is
between $50,000 and $100,000.)
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. Bill of Collection.
c. Letters of August 1, 1982, (Note: This should be the letter that notifies
the purchaser the timber sale has expired, that he/she has no more right to
the sale and the Government will determine the amount of damages, if any.)
May 1, 1982, June 1, 1979, and so forth.
IMA RIGHT
Contracting Officer
Enclosures (6)