FOREST SERVICE HANDBOOK PACIFIC SOUTHWEST REGION (R5) VALLEJO, CALIFORNIA

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2209.22_48
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FOREST SERVICE HANDBOOK
PACIFIC SOUTHWEST REGION (R5)
VALLEJO, CALIFORNIA
FSH 2409.22 - TIMBER APPAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
Amendment No.: 2409.22-2012-05
Effective Date: December 19, 2012
Duration: This amendment expires 5 years from the effective date unless superseded or
removed earlier.
Approved: RANDY MOORE
Regional Forester
Date Approved: 12/19/2013
Posting Instructions: Amendments are numbered consecutively by Handbook number and
calendar year. Post by document; remove the entire document and replace it with this
amendment. Retain this transmittal as the first page(s) of this document. The last amendment to
this Handbook was 2409.22-2012-4 to 2409.22_41.c.
New Document
2409.22-2012-5_48
50 Pages
Superseded Document(s) by
Issuance Number and
Effective Date
2409.22-2011-2_48 4/6/2011
49 Pages
Digest:
48.16 Part 2 – States that the “Deck Removal” tab can be used to calculate the log loading cost
when selling a decked sale. Also mentions the additional of a button in Logcost that will
calculate the pieces per turn in the production tab for a mechanical harvesting operation.
Provides production rates that can be compared to the production rates generated out of Logcost.
States the maximum tree size that a Fellerbuncher can handle is 20 inches. Adds guides for
appraising manual felling in LogCost. Adds guides for appraising equipment moves. Eliminates
the misstatement about how LogCost uses the time entered to calculate the cost of moving one
piece of equipment on or off the sale area. The time entered is the total time needed to move all
equipment on or off the sale area. Adds recommendation that the K Max helicopter be used
when the logs are small and the volume per acre is low.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.16 Part 3 – Adds additions guidance on selection of an appraisal point. Better clarifies that
each product could have a different appraisal point. Corrects the spelling of stinger.
48.16 Part 5 – Corrects the text to say that felling and skidding are the only parts of the biomass
logging cost, chipping is not part of the cost to be appraised in the LogCost spreadsheet. Add
directions on using a standard biomass harvesting cost of $16.00/ccf for multiproduct sales with
less than 2 ccf/acres of biomass.
48.16 Part 9 – Eliminates Form 2400-75 and states that Purchaser’s Obligation per Operations
Fire can be calculated using the Fire Obligation tab in the TEA spreadsheet. Add directions to
cancel out the PAL cost when appraising a decked sale.
48.16 Part 11 – The Deck Removal tab and Fire Obligation tab have been added as additional
features.
48.23 Part 11 – The Deck Removal tab and Fire Obligation tab have been added as additional
features.
48.31 – Emphasizes why sending in the 2400-17 to the RO in a timely manner is important.
48.35 - Added a reminder to convert CCF rates to either MBF or Ton equivalent rates if offering
sale in MBF or Ton.
48.39 – Added additional actions to consider when facing a deficit sale.
48.4 – Allows surface replacement deposits to be collected on an Integrated Resource Service
Contract. Also eliminates regional approval being given to embedding a 2400-2 contract form in
a service contract. With the new Washington Office restrictions on the use of a 2400-2 contract
form, embedding this contract into a service contract is no longer allowed. Adds a reminder on
when working on an Integrated Resource Timber Contract (IRTC), to not include any of the
service work in the timber appraisal.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
The following procedures for transaction evidence appraisals (TEA) reflect the procedures
currently being used in Region 5 to predict advertised rates for timber sales. The objective of
Forest Service timber appraisals is to determine fair market value (36 CFR 223.60). National
Forest timber must, by law, be sold at not less than its appraised value. Briefly, R5's TEA
system compares recently sold sales to the sale being appraised with differences between their
value and cost centers being added or subtracted from the weighted average bid value of the base
period sales. A rollback factor is then applied to the adjusted weighted average bid value to
generate the indicated advertised rates for the sale being appraised. Comparing the sales’
estimated log delivered prices accounts for values differences between the sales. The R6
Logcost and hauling spreadsheets are used to calculate the logging and hauling cost. These
spreadsheets can be accessed from the R5 Sales Prep website.
48.1 - Development of Appraisal Data
48.11 - Appraisal Zones
The region is made up of five zones: Northwest, Northeast, Central Sierra, Southern, and Inyo.
Exhibit 01 shows the five zones and the areas they encompass.
48.11 - Exhibit 01
Appraisal Zone
Northwest
Northeast
Central Sierra
Southern
Inyo
Statewide
Areas
Six Rivers NF, Mendocino NF, Trinity portion of the Shasta-Trinity NF,
and all of the Klamath NF except for the Goosenest RD
Modoc NF, Lassen NF, Shasta portion of the Shasta-Trinity NF,
Goosenest RD of the Klamath NF, Mt Hough & Beckwourth RD’s of the
Plumas NF, and Sierraville & Truckee RD’s of the Tahoe NF
Eldorado NF, Stanislaus NF, Lake Tahoe Basin Management Unit, Sierra
NF, Sequoia NF, Feather River RD of the Plumas NF, and Tahoe NF
except for the Sierraville and Truckee RD’s
Angeles NF, Cleveland NF, Los Padres NF, and San Bernardino NF
Inyo NF
Northwest, Northeast, and Central Sierra Appraisal Zones
48.12 - Region 5 Appraisal spreadsheet
The Regional Office Ecosystem Management Staff will maintain the Appraisal spreadsheet and
enter the sale data into the base period database for the three zones (Northwest, Northeast, and
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
Central Sierra Zones) that have timber programs. The Southern Zone will either develop
standard rates or create a simplified TEA for any sawtimber products they should sell and the
Inyo Zone may continue to use their existing TEA method for appraising their fuelwood sales.
The base period data will be kept in an Access database that will be maintained by the Regional
Office Ecosystem Management Staff. Accessing this database to retrieve the base period data
will be through an Excel spreadsheet.
48.13 - Base Period Data
This is the information from the previously sold sales and projects used in the appraisal
spreadsheet. Multiproduct sales used in the base period will have any bid premium value on the
cull log and chip components factored out of their value, because the cost of removing these
products usually exceed the value of the product, the value of the sawtimber product subsidizes
the removal of the biomass product. The value of the biomass will be set at the regional
minimum rate with the entire bid premium put on the sawtimber.
48.14 - Base Period Length
The standard base period length is six months. An appraisal zone will be directed to use the
TEA with a statewide base period if not enough sales can be selected for the base period sales
within the appraisal zone’s TEA. An appraisal zone will then be directed to use the zone
Alternate Transaction Evidence Appraisal Method (ATEAM) if not enough sales can be selected
for the base period sales within the statewide base period.
Sales or projects included in the Base Period Data are competitively sold sales or projects equal
to or exceeding $2,000 in advertised value having competition.
48.15 - National Cruise reports for Appraisal Development
Listed below are the various reports from the Cruise Processing program that can be used to
supply data for the R5 appraisal system. The following suggested reports will generally provide
the needed information, depending on how the sale cruise has been stratified. Other reports may
be needed to get information for specific components of a sale. See exhibit 01.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.15 - Exhibit 01
a. Total Sale Volume:
b. Total Sale Weight:
c. Log Size Info:
d. Biomass Volume:
e. Conversion Factors:
R402 - Total Sale sawtimber by species
R402 - Total sale non-saw volume from small trees
B1 - topwood volume by species
WT1 - tons by sawlogs, non-saw (by tops and main stem
small trees)
R501 - log stock tables by product
“Ton Conv” tab from R5-TEA program (expands biomass
stem wood volume to total volume for hog fuel chips)
R401, R402 or CP1 (check units in the reports, input to
appraisal spreadsheet in CCF and MBF)
Data For Inputs to LogCost program:
f. Avg. Vol/tree:
B1 or R402 (divide volume by number of trees); UC1 for info
by unit
g. Avg. DBH, Height:
CP1, CS1 or R402
h. Trees per acre:
CP1 for trees (UC1 for info by unit); A1 for acres input in
cruise
i. Stand Table (Volume or number TC60 (net CF), TC62 (number of trees); UC1 by unit
of trees by DBH):
j. Average piece sizes for logging: (1) Avg DBH, height by strata - CS1
(2) Use a stem profile analysis tool (such as “PMT” or “Excel
Vol Functions” spreadsheet) to view average merchantable
lengths. (R5 check cruisers can help with this.)
(3) Determine how average tree will be bucked. (Generally,
40 ft. logs are preferred logging lengths) Avg piece = (avg
tree vol)/# pieces.
(4) (Don’t use “# Logs” from CP1 as the number of logs for
logging purposes. CP1 logs are all 16’ and less in length and
are developed in the volume development of the cruise
program.)
If whole tree yarding (up to 20 in. dbh) - use avg volume per tree.
For trees > 20 inches, determine the average DBH. If the timber cruise was not stratified at 20
inches, the TC62 report can be used to develop average DBH of trees greater than 20 inches DBH.
Regional check cruisers can regress heights from cruise data that correlates with the average DBH.
48.16 - Adjustments for Sale Cost and Value Centers
The cost and values for each sale in the base period must be determined. These costs and values,
determined when the base period sales were appraised for advertisement, will be averaged to
develop a base period average of sales costs and values. These average costs and values will
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
then be compared to the costs and values of the sale being appraised with differences being
added to or subtracted from the weighted average high bid of the base period sales (and then
applying a rollback adjustment) to determine the indicated advertised rate.
Exhibit 01 shows how the average cost centers of the Base Period Sales are compared to the New
Sale with differences being added or subtracted from the Base Period Avg Bid.
48.16 - Exhibit 01
6b. Base Period Avg Bid - $/CCF
Sale Costs Adjustments - $/CCF
73.67
Base Period
New Sale
Adjustment
7.
8. PAL Fire Protection
6.95
4.66
2.29
69.94
69.22
0.72
39.30
35.74
3.56
12. Sale Specific
9.37
2.93
6.44
13. Slash Work
1.22
0.63
0.59
14. Erosion Control
0.00
5.51
-5.51
15. Specified Road Cost
6.16
0.00
6.16
16. Road Maintenance
0.70
6.37
-5.67
17. Brush Disposal Deposit
3.54
1.25
2.29
18. Surface Replacement Deposit
1.82
8.50
-6.68
19. Road Maintenance Deposit
0.00
0.00
0.00
20. Engineering Deposit
0.83
0.00
0.83
21. Temporary Road Cost
0.00
0.21
-0.21
208.11
187.97
-20.14
9. Stump-to-Truck
10.
11. Hauling
22. Quality Adjustment
23. Total Adj. & Adjusted Bid
Total Adj
Adj Bid
-17.62
56.05
1. Quality Adjustment. Use the Log Stock Table by Species and Product (R501) from
the Cruise Processing program to get volumes by small end diameter per species.
Volumes by species can be grouped into classes corresponding to a published Log
Delivered value classes (Log delivered value classes are available for Ponderosa Pine and
Sugar Pine. White Fir, Douglas Fir, Incense Cedar, and Lodgepole Pine are all camprun,
just one value for each specie). The volumes in MBF, by class, are entered into the TEA
with an average Quality value being generated per species. The individual conversion
factors per species per sale will convert the values to a CCF basis. These values are
averaged to develop an average Quality value characteristic for the sale that can be
compared to the average Quality value for the base period sales.
2. Stump to Truck Cost. Stump to Truck cost shall be generated using the logging
spreadsheet. Use the Logcost spreadsheet for developing the skidding costs and any
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
falling costs. The falling and bucking program has now been made a part of the Logcost
Program and can be accessed using that tab in Logcost. The following guides may be
used when estimating manual falling cost in LogCost:
DBH
14”
18”
22”
26”
30”
Minutes/tree 5
8
12
17
26
(Derived from PSW-86, McDonald, 1972; Logging Production Rates in Young Growth,
Mixed Conifer Stands in North Central California.)
Remember when calculating the months in the normal operating season to subtract out
the estimated additional shutdown days that will occur due to the region implementing
the Project Activity Level (PAL) system. Also reduce the operating season for limited
operating periods that affect production within the sale area. This should shorten the
number of months in the operating season and thus increase the calculated logging costs.
If the appraiser determines a decrease in the working month will increase the number of
working seasons, then the appraiser will need to account for extra move in and move out
cost for the logging equipment. If you need to allow the Purchaser an extra season, you
will need to enter an extra move in and move out allowance in the Logcost spreadsheet,
the spreadsheet will not automatically increase move in and move out by the number of
seasons it determines is needed to log the sale.
When entering data into the Logcost program, enter zero or leave blank the “Days of
Variable shutdown/seasons” cell. This cell was used to help the appraiser calculate the
cost of PAL. Since the appraiser no longer needs to calculate the cost of PAL, leave the
cell blank.
Logcost now has a feature where a button will calculate the pieces per turn for a
mechanical harvesting operation, under the production tab. Appraisers are to use this
button to have the program calculate the pieces per turn. This way an appraiser will not
have to guess at the pieces per turn in a mechanical harvesting operation.
In using the Logcost spreadsheet, the appraiser needs to be aware of any error message
that shows up on the spreadsheet. If the error is not corrected, the spreadsheet could give
an erroneous answer. An example is under the mechanical system, on the production
portion, if the transport ccf/day shows “mach/piece” then the spreadsheet is saying that
the capability of the transport equipment exceeds the capability of the cutting equipment.
The appraiser then needs to reduce the number of skidding equipment. If the appraiser
does not reduce the number of equipment, the spreadsheet will produce an erroneous cost
rate for the skidding operation.
When using Logcost, the appraiser will need to account for the move in and move out
cost of the logging equipment. For these cost, the spreadsheet wants the appraiser to
make an estimate of the time needed to move the equipment. Use 16 hours to move-in
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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the logging side, and 16 hours to move-out. Use 4 hours per landing for moving to
additional landings on the sale area. For a helicopter operation, the spreadsheet wants the
number of miles the helicopter will travel. The appraiser should estimate the miles from
the sale area to the nearest location where the type of helicopter that is being appraised
for is stationed.
Appraise for the use of “red diesel” in the off road logging equipment. This diesel is
dyed red for off road use and is approximately $0.50 - $0.60 less in price than regular
highway diesel. Red diesel should not be appraised for in the log haul as the log trucks
will be traveling on highways and roads.
When offering a salvage sale or a stewardship project with salvage products, the
appraiser has to realize that the termination date for the sale or project will be set to only
allow two operating seasons. The appraiser may need to appraise for more logging sides
to operate on the sale or project to ensure that the harvesting will be done within the two
operating seasons. Termination dates that allow for more than two operating seasons for
a salvage contract will need Regional Office approval.
A good estimate of the equipment and crew makeup is needed in Logcost to calculate the
logging cost. Exhibit 02 shows suggested equipment and crew makeup for several
logging methods.
48.16 - Exhibit 02
1. Conventional Tractor:
Manual Timber Falling
Equipment:
2 Skidders (Cat 525-wheel or Cat 527-track)
1 log loader
Landing Cat (part time) - If one of the skidders is a tracked Cat 527, it can
double for a landing cat.
Crew:
2 Skidder operators
1 loader operator
1 landing chaser
1 foreman
(Production will vary most by average skid distance and average piece size, and volume per acre;
typically 12 to 20 loads per day.)
2. Mechanical (Whole Tree)
Equipment:
2 Faller/Bunchers (typically a hot saw)
2 Skidders
1 De-limber
1 Log Loader
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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48.16 - Exhibit 02--Continued
Crew:
2 Skidder Operators
2 F/B Operators
1 De-limber operator
1 Loader operator
1 Chaser
1 Foreman
Most F/B can handle trees up to 20 inches. Appraise manual falling for trees greater than or equal to
the maximum capacity of the F/B.
Suggested Number of Logs/bunch: (from Hartsough, 1994, study on Stanislaus)
DBH:
5” 6” 7” 9” 11” 13”
# Pieces
24 18 13 8
6
5
(Production will vary most by average skid distance and average piece size. As a cross check, most
whole-tree tractor operations in the region average from 10 to 16 loads per day.)
3. Skyline:
Equipment:
Yarder (suggest Madill 120 -R/S, 50 ft tower, swing boom, ¾” lines; available in
Logcost program.)
Carriage (suggest Acme-10 - 1000 lb; avail. in LogCost)
Avg. Medium Loader
(Opt.) De-limber (consider using on small log thinnings)
Crew:
1 Hooktender
1 Yarder Engineer
1 Chaser
1 Loader Operator
3 Choker Setters
1 Rigging Slinger
(Opt) De-limber operator
4. Helicopter:
Equipment:
(a.) for thinnings of trees 10” to 24” DBH, use the BV-107 (8000 lb lift)
(b.) for small logs where the volume/acre is low, K-Max (4500 lb lift)
(c.) for large logs (avg log dib >20 in.), use the Chinook 234 (23000 lb lift)
(d.) Loaders (use suggested number in LogCost)
(e.) De-Limbers (opt.) - (required for whole tree ops.)
Manual tree felling. (Fall & Buck must be appraised using the Fall and Buck tab in LogCost)
Crew: Use suggested numbers from LogCost, unless unusual situation with extra work demands
more crew.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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The appraiser also needs to ensure that input into the Logcost spreadsheet is reasonable
and accurate. Make sure that the log transport CCF per day looks reasonable. When
dealing with biomass, the appraiser should realize that the capabilities of the log
processing equipment may control production rates more than the number of skidders.
Common errors made in the logcost spreadsheets include:
(1) Over estimating the average skidding distances
(2) Uphill versus downhill skidding
(3) Average merchantable cubic feet per tree not corresponding to the average tree
dbh and average tree height
(4) Too few pieces per turn
(5) Accounting for equipment that is not needed as appraising for a loader and
delimber on a biomass operation.
Generally, local sale administrators/Forest Service Representative's/Contracting Officer's
will have a good idea of a realistic production rates for whole tree logging. If local
knowledge of expected production rates is not available, use the following guide for
production rates. This comes from a paper "Productivity and Cost Relationships for
Harvesting Ponderosa Pine Plantations" prepared by Hartsough, Gicqueau, and Fight.
(Forest Products Journal, September 1998.)
These production rates assume slopes less than 25% and no appreciable adverse
skidding.
Feller Buncher:
TPA
Avg DBH
10 in
12 in
14 in
10
30
50
70
90
CCF per 8 hour day for 2 feller bunchers
50
68
86
96
82
112
136
148
128
160
160
160
102
158
160
Skidding:
Avg DBH = 10 inches
TPA
Avg Skid
Distance
300 ft
500 ft
700 ft
10
30
50
70
CCF per 8 hour day for 2 skidders
37
34
30
45
40
36
70
60
54
90
90
76
66
109
90
78
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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Avg DBH = 12 inches
TPA
Avg Skid
Distance
300 ft
500 ft
700 ft
10
30
50
70
CCF per 8 hour day for 2 skidders
61
54
50
74
64
58
110
92
81
90
140
116
98
160
132
110
Avg DBH = 14 inches
TPA
Avg Skid
Distance
300 ft
500 ft
700 ft
10
30
50
70
CCF per 8 hour day for 2 skidders
94
82
72
112
96
84
160
132
112
90
180
158
132
200
176
144
When selling decked logs, use the “Deck Removal” tab in the R5 TEA spreadsheet to
calculate a log loading cost. For this type of sale, the log loading cost will be the sale’s
“Stump-to-truck” cost.
3. Hauling Cost. Hauling cost shall be generated using the hauling spreadsheet. The
appraiser needs to determine the appraisal or marketing point that is the most
advantageous location from the transportation standpoint; size of manufacturing facility
is not a consideration (FSH 2409.18, Chapter 40, Section 45.11). The appraisal point is
defined as the location where raw materials or products can be sold. The manufacturing
facility chosen as the appraisal point has to be capable of processing the end product that
is being appraised. A facility that is not operating but is capable of operating by flick of a
switch can be used as an appraisal point. In most cases the nearest facility to the project
or sale will be used as the appraisal point. For Forest Service sawlog sales, the end
product is lumber, not a sawlog size or specific species. In other words, if the most
advantageous appraisal point is capable of converting logs into lumber, then appraise
your sawlog sales to that point. If a suitable processing plant is unavailable, select a
location that has a large enough timber supply to cover plant depreciation if a plant were
at that location.
The appraisal point is deemed most advantageous when total transportation costs
(including haul, road construction, road maintenance, and other transportation costs) are
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less than those for other possible points. Appraise a product to only one appraisal point.
Do not appraise different sizes or species of the same product to different appraisal
points. All sawtimber goes to the same mill and the purchaser will decide on further
disposal. Refer to FSH 2409.18, Chapter 40, Section 45.11 for further guidance on
selecting the appraisal point.
If the sale includes several products (i.e. sawtimber, biomass), appraise each product to
the manufacturing facility that gives the highest appraised or advertised rate. Thus a sale
could have different appraisal points, one for each product.
For a SBA sale, appraise to the manufacturing facility that gives the highest appraised or
advertised rate, whether it is a SBA facility or not. Do not bypass a large manufacturing
facility that is closer and choose a SBA facility as the appraisal point on a SBA sale.
Appraisal point selections must be supported with a justification statement in the timber
sale report. This can be done in the appraisal documentation sheet. When entering the
appraisal point in the R5 TEA, just enter the city; do not enter the name of the mill or
manufacturing facility.
The Ecosystem Management Staff in the Regional Office has a list of sawmills that are
operating within the Region. This list is available to the forests upon a request to the
Ecosystem Management Staff. Forests can use the list to see what sawmills are available
in their market area.
Appraisers also need to ensure that there is a market for all products being sold from a
project or sale. As an example if there is no market for biomass in the area, then the
project or sale should not be including biomass as a product of the project or sale. The
Ecosystem Management Staff in the Regional Office has a list of biomass facilities that
are operating within the Region. This list is available to the forests upon a request to the
Ecosystem Management Staff. Forests can use the list to see what biomass facilities are
available in their market area.
Make sure that the estimated round trip minutes is reasonable and not over estimated.
The round trip minutes has a big effect on the hauling cost. Enter “Truck-trailer
(standard stinger-steer, west US)” for the truck or truck-trailer combo in the Haul cost
program. This truck-trailer combo is the most commonly used in Region 5.
Also because all scaled volume in Region 5 is either weighed or scaled in the yard, not on
the truck, there is no scaling cost included as part of the haul.
A van load of chips will contain 25 tons or about 9 ccf of chips - a cubic foot of chips
containing bark, branches etc. For sawlogs, there are generally 7.8 ccf /truck load
(regional average). Chip conversion is different than log conversion since log volume
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EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
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calculations exclude bark. Also a 120 cubic yard van is the most common for hauling
biomass.
4. Sale Specific Adjustment. Occasionally, a sale will have specific costs or values that
should be reflected in the appraisal. Any adjustment should be validated and justifiable.
Any sale specific adjustment to reduce advertised rates will affect future advertised rates.
When an adjusted rate is used in the base period data, that adjustment becomes added
value and the spreadsheet will change the weighted bid value of the sale. The affect is an
increase in future advertised rates. Remember, though it is important to sell the sales, it
is just as important to ensure that the government is receiving fair market value for its
timber product.
An allowance for putting the borate compound on stumps and tillage of trails, temporary
roads, and landings are examples of sale specific adjustments.
With the capabilities of the logging spreadsheets and the other cost centers available to an
appraiser, the use of a sale specific cost should be very limited. Any sale specific
adjustment must be shown in the sale documentation.
Any sale specific costs are entered under the “Other Costs” tab of the TEA spreadsheet.
5. Cost of Removing the Biomass: The R5 method of calculating the cost of the biomass
is to determine the value, whether it be positive or negative, of the biomass portion. This
value is the chip value delivered to the mill minus the costs to get the chips from the
woods to the mill. This method takes into account that even if the biomass does not have
enough value to pay its way out of the woods, it still has some value, and this value
should be applied against the cost of harvesting the biomass. Any leftover cost would
then be treated as a low value species, where other positive species can be reduced to
bring the biomass up to a regional minimum rate of $0.25 per ccf. If the biomass had
value, then the value of the biomass could be used to bring up the value of a sawtimber
species that had a deficit value.
If haul is less than an hour from the sale area to the manufacturing facility, the value of
the biomass should at least break-even with the cost in most sale situations.
Logcost now has a button in the mechanized tab, which will develop the cost of
harvesting the biomass based on the equipment being used to harvest the sawtimber.
Also included is a button on the biomass portion of the spreadsheet to calculate the haul
cost for the biomass. When calculating the harvesting cost for the biomass, the TEA
spreadsheet only included the small tree volume of the biomass. It does not include the
top-wood from the sawtimber as part of the biomass volume because the cost of
harvesting the top-wood is being subsidized by the sawtimber removal operation.
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Be sure to enter data into the “Tons Conv” tab as the spreadsheet uses volume data from
the “Tons Conv” to calculate the biomass harvesting cost and the Green ton/CCF
conversion factor.
If the biomass in a multiproduct sale is less than 2 ccf/acre (cruise report volume), use
$16.00/ton as the cost of logging (fell and skid). Since the $16.00/ton is in green tons,
make sure that the conversion factor entered into the biomass spreadsheet for harvesting
is a factor of 1.0. Chipping cost uses a regional average that is supplied in the biomass
page of the R5TEA.
6. Erosion Control and Slash Costs: Estimate the cost for erosion control and slash work.
The appraiser needs to construct the cost for the erosion control work and purchaser slash
work required in the sale. Under the “Other Costs” tab of the spreadsheet, procedures
have been established to estimate these cost using data provided by the appraiser.
7. Specified Road, Road Maintenance, and Temporary Road Construction Costs:
Estimate the cost for specified roads, road maintenance, and temporary road construction.
On some forests, the Forest Engineering staff will work up the road plans and road
maintenance plan and thus will provide the cost. Also under the “Other Costs” tab of the
spreadsheet, procedures have been established to estimate the road maintenance cost
using data provided by the appraiser. Upon entering the “Other Costs” tab, the appraiser
will need to fill out the “date cell” in the upper right hand corner so the spreadsheet
knows which costs to apply to the appraisal. Without the date, the cost centers under the
“Other Costs” tab will not calculate.
8. Brush Disposal (BD), Surface Replacement, Road Maintenance, and Engineering
Deposits. Determine any deposits that the purchaser is required to make in the traditional
manner that these deposits are usually determined. On some forests, the Fire (Fuels) shop
will work up the Brush Disposal Deposit (BD) while the Forest Engineering staff works
up the Surface Replacement, Road Maintenance, and Engineering Deposits.
9. Project Activity Level (PAL) implementation cost. The TEA spreadsheet internally
calculates the PAL cost for the appraisal.
Do not use PAL to develop the Purchaser’s Obligation per Operations Fire cost in the A
portion of the contract. Use the Fire Obligation tab in the TEA spreadsheet to calculate
the Purchaser’s Obligation per Operations Fire cost. Cost can then be entered into TIM,
which will then appear in the A portion of the contract. Regional form R5 2400-75 Calculation of Suppression Costs Payable by Purchaser is eliminated.
There is no PAL cost when selling a decked sale. Since the spreadsheet applies a PAL
cost to all appraisals, an appraiser would have to back the PAL cost out of the appraisal
using the sale specific cost portion of the spreadsheet. Presently the PAL cost is $6.39
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per ccf, thus an appraiser would have to add an item to the sale specific area where the
total cost is equal to negative $6.39 per ccf. This would then cancel out the PAL cost.
The sale or project prospectus shall announce that the sale or project will be using the
Project Activity Level system and then state:
The Special Interest Group (SIG) or Weather Station(s) that will be used.
The dates of the “normal operating period”.
The Expected Days per Month at each PAL Level for the “normal operating season”.
The following paragraph and table below shows an example of the prospectus language
to use.
“The Project Activity Level (PAL), an industrial operation’s fire precaution system, will be used
for this sale (or project). The North Pole SIG will be used to calculate the Project Activity Level.
The “normal operating period” is from July 15 to October 30. The Expected Days per Month at
each PAL value for the “normal operating period” is shown in exhibit 03.” Due to limited
operating period constraints (C6.315#), operations can only be conducted from August 1 to
October 30.
48.16 - Exhibit 03
Project Activity Level Climatology
Station/SIG/Unit
North Pole
Years Analyzed
A
B
C
D
Ev
E
Month
Expected Days per Month at Each PAL Value
July
1.3
4.9
13.2 6.9
4.5
0.3
August
1.3
2.9
13.0 7.5
5.5
0.7
September
3.4
4.7
11.8 5.8
3.7
0.5
October
6.0
6.4
14.1 3.3
1.3
0.0
1972-2005
Days
Analyzed
567
966
973
734
3240
10. Rollback Factor. Once the weighted average high bid of the base sales has been
adjusted by the different cost centers and is distributed to each species, a rollback factor
is applied to decrease each species' value. This factor allows for competitive bidding and
compensates for variables that were not specifically recognized, ie; California State yield
tax, scaling cost, profit & risk, overhead, and etc. For an Integrated Resource Timber
Contract, use the default rollback factor in the TEA spreadsheet. For an Integrated
Resource Service Contract, use a 0 percent rollback factor.
11. Additional Features. Deterioration tab, MBF Conversion tab, Ton Conversion tab,
Deck Removal tab, and Fire Obligation tab have been added to the TEA. The
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Deterioration tab will calculate any species value deterioration due to the sale or project
being salvage. The MBF Conversion and Ton Conversion tabs will convert the CCF
values to MBF or Ton if you are advertising in one of these two units of measure. When
selling material from an existing deck, the Deck Removal tab will calculate the log
loading cost. The Fire Obligation tab will calculate the purchaser’s obligation per
operations fire cost.
48.2 - Alternate Transaction Evidence Appraisal Method Procedures (ATEAM)
The following procedures for alternate transaction evidence appraisal method (ATEAM) reflect
the procedures currently being used in Region 5 to predict advertised rates for timber sales if the
TEA is not available due to limited transactions. Briefly, ATEAM system uses the log delivered
values per species from industry trade journals. Various cost centers are added or subtracted
from the log delivered price to generate the indicated advertised rates for the sale being
appraised.
48.21 - Appraisal Zones
All of the appraisal zones, except for the Statewide Zone, that are used in the TEA will be used
in this system.
48.22 - Maintenance of the ATEAM spreadsheet
The Regional Office Ecosystem Management Staff will maintain the database for the ATEAM
spreadsheet and enter the log delivered data for the Northwest, Northeast, and Central Sierra
Zones. The Southern Zone will develop standard rates for any sawtimber products they should
sell and the Inyo Zone will continue to use their existing TEA method for appraising their
fuelwood sales.
48.23 - Adjustments for Sale Cost and Value Centers
The cost and values for the sale being appraised must be determined. These costs and values will
be added to or subtracted from the quality adjustment value to determine the indicated advertised
rate.
1. Quality Adjustment Value. Use the Log Stock Table (R501) from the Cruise
Processing program to get volumes by small end diameter per species. Volumes by
species can be grouped into classes corresponding to the Log Delivered value classes
(Log delivered value classes are available for Ponderosa Pine and Sugar Pine. White Fir,
Douglas Fir, Incense Cedar, and Lodgepole Pine are all camprun, just one value for each
specie). The volumes in MBF, by class, are entered into the R5 ATEAM with an average
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quality adjustment value being generated per species. The individual conversion factors
per species will convert the values to a CCF basis.
2. Stump to Truck Cost. Follow the procedures established for the TEA.
3. Hauling Cost. Follow the procedures established for the TEA.
4. Other Adjustment. Follow the procedures established for the TEA.
5. Biomass Cost: Follow the procedures established for the TEA.
6. Erosion Control and Slash Costs: Follow the procedures established for the TEA.
7. Specified Road, Road Maintenance, and Temporary Road Construction Costs: Follow
the procedures established for the TEA.
8. Brush Disposal (BD), Surface Replacement, Road Maintenance, and Engineering
Deposits. Follow the procedures established for the TEA.
9. Project Activity Level (PAL) implementation cost: Follow the procedures established
for the TEA.
10. Rollback Factor: After the total cost center value is subtracted from the log delivered
value on a species basis, a rollback factor is applied to compensate for variables that were
not specifically recognized such as profit and risk, California State Yield Tax, overhead,
or scaling. For an Integrated Resource Timber Contract, use the default rollback factor in
the TEA spreadsheet. For an Integrated Resource Service Contract, use a 0 percent
rollback factor.
11. Additional Features. Deterioration tab, MBF Conversion tab, Ton Conversion tab,
Deck Removal tab, and Fire Obligation tab are available for use in ATEAM.
48.3 - Other Appraisal Concepts
48.31 - Form 2400-17
The Transaction Evidence Appraisal system relies heavily on up-to-date past sales’ data to
produce its advertised rates. Forest need to send a sale’s 2400-17 form (Report of Timber Sale
side and Appraisal Summary Side) into the Regional Office within a week after the bid opening.
The information on the 2400-17 provides the data that is used for base sale data. 2400-17s are
the only source for this base sale data. We are not able to run the R5 TEA without the base sale
data. 48.7 Exhibit 3 shows the different codes that are used on this form.
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48.32 - No Bid Sales
If no bids are received on a sale, discuss with purchasers as to why no bids were submitted.
Analysis of their concerns in conjunction with the operational cost centers, sale requirements and
mitigation measures will identify areas to review to address purchaser’s concerns as well as
alternative methods to meet resource objectives.
Reference is made to FSM 2432.63. A Contracting Officer (CO) may sell, without
readvertisement, sales which received no bids or no valid bids, at any time within 1 year of the
original advertisement, if within the officer's authorization (36 CFR 223.85, FSM 2404.21 and
FSM 2404.26) and if there is no evidence of competitive interest. The Contracting Officer must
sell and award the sale at not less than the original advertised rates unless the sale is reappraised
and readvertised. However, no compulsion exists to accept a later offer at or above the
advertised rates.
If, within 15 days of bid date, the Contracting Officer receives an application for the purchase of
a previously advertised sale offering, contact other purchasers to determine interest in the sale
and solicit informal bids similar to that used with short notice sales. Refer to FSH 2409.18,
56.55, 62.4, and 36 CFR 223.81 for procedures on soliciting informal bids with short notice
sales. If no other party expresses an interest in the sale, sell it at not less than advertised rates to
the purchaser who came in and wanted the sale. A bid form must be completed as in the original
offering. All original offer conditions apply in the resale, including a bid guarantee.
After 15 days, the CO may sell the sale at not less than advertised rates to any interested
purchaser. Again, a bid form must be completed as in the original offering. All original offer
conditions apply in the resale, including a bid guarantee. Check with other usual purchasers after
the 15 days to see if there is other interest in the sale. If there is interest from other purchasers,
readvertise the sale for not less than 30 days. If emergency conditions exist pursuant to 36 CFR
223.81, salvage sales may be advertised with not less than a 7 day advertisement period.
No-Bid Sales do not have to be sold, even when a purchaser indicates a desire to purchase the
sale (see FSM 2432.63). A statutory or regulatory change, judicial edict, new information
discovered on the project, changing markets, or other situations that would prove to be
disadvantageous to the government, are valid reasons for not selling the sale.
Refer to FSH 2409.18, 92, regarding bidding on SBA Set-Aside sales, and no bid SBA Set-Aside
sales.
48.33 - Procedure for Appraising a Multi-product Sale
Appraise the sawlog portion using the TEA procedure. Appraise the biomass portion of the sale
using the biomass tab of the TEA spreadsheet. The spreadsheet will subtract the cost of
harvesting the biomass from the biomass value. The positive or negative value of the biomass
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will be treated as a low value species. Thus if the biomass has a negative value, the other species
with positive values can be lower to raise the value of the biomass up to the regional minimum
rate of $0.25 per CCF. In all cases, the different products of the multiproduct sale will each be
appraised separately.
In most cases, when buying a multi-product sale, a purchaser will decrease the value of the
sawlog portion to adjust for the added cost to harvest and process the biomass portion. Thus, the
value of the sawlogs will carry the added cost of the biomass. See the section on Biomass Costs.
48.34 - Standard Rates
The Southern Zone will develop standard rates for any sawtimber product that they wish to sell.
These rates shall be developed using a simplified transaction evidence appraisal with a standard
rollback factor. Rates will be updated semiannually to reflect changes in the market or when
there is a substantial change in the value of the product.
The other appraisal zones in the region may develop standard rates for sawtimber product by
species for any small sale less than 200 ccf in size. These rates shall be developed using a
simplified transaction evidence appraisal with a standard rollback factor. Rates will be updated
semiannually to reflect changes in the market or when there is a substantial change in the value
of the product.
Every forest can also develop standard rates for any special forest product that is sold. In
establishing a standard rate for a special forest product, use the R5 Special Forest Product
appraisal spreadsheet in the Regional NRM website. The spreadsheet can be downloaded from
the web and also uploaded with the updated price list database. Rates will be updated
semiannually to reflect changes in the market or when there is a substantial change in the value
of the product.
48.35 - Sales Being Offered In MBF and Ton
The Region started using Cubic as the main unit of measure in April 1998. The TEA spreadsheet
runs the appraisal in cubic and produces a cubic version of the appraisal summary side of form
2400-17. If you are selling a sale in MBF or Ton, do the appraisal in cubic and then use the
MBF Conversion tab or Ton Conversion tab to determine the advertised rates in MBF or Ton.
Please remember that after appraising in CCF, you must convert the rates to either the MBF or
Ton equivalent. Do not just use the appraised CCF rates. If the sale is deficit and you are
offering it in MBF, use the higher of either the regional minimum MBF rates or MBF base rates
determined by the essential KV work, if there are any. In the remarks block of the Report of
Timber Sale side of the 2400-17, say that the sale was appraised in ccf and that rates were
converted to mbf or ton.
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48.36 - Use of TEA for Small Negotiated Sales
TEA can be used to establish standard rates for small-negotiated commercial forest product sales.
In using TEA to establish these standard rates, set the rollback factor to zero (0%). Since the
rollback factor accounts for competitive bidding using zero, as the rollback factor, will account
for the non-competitive nature of a negotiated sale.
48.37 - Documentation
Appraisers will include a documentation sheet with the appraisal package. The documentation
sheet should include general information about the sale. Also include information on sale
specific cost calculations. This sheet should be used to document any sale assumptions that a
prospective bidder needs to know. An example of a documentation sheet is included at the end
of this chapter (48.7 Exhibit 4).
48.38 - Regional Minimum Rates
The regional minimum rates can be found in R5 Supplements and Interims to FSM 2431.31b.
48.39 - Deficit Appraisals
In an appraisal where the total value of the Indicated Advertised Rates is less than the total value
of the Base Rates shown in the Appraisal Summary, the sale is deficit and depending on how
deficit the sale is, may not receive bids from Purchasers. Consider doing one or more of the
actions listed in exhibit 01:
48.39 - Exhibit 01
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
Verify the cruise to assure Regional cruising methods and procedures have been
implemented correctly, the cruise meets standards, no input errors, and that the
volume is accurate.
Verify the harvesting and cleanup requirements included are actually required and in
the proper quantities.
Check calculations of roads (specified, reconstruct, and maintenance) for accuracy.
Check other cost centers for accuracy and necessity.
Check for accuracy of input into TEA; look for transposed numbers.
Verify that the most current TEA spreadsheet and database are being used.
Change to a cheaper logging system if possible.
If possible eliminate uneconomical cutting units.
If possible add more product volume or add bigger sized product.
If possible reduce or eliminate deposits by shifting BD and RM work to the Forest.
Eliminate from the appraisal and road reconstruction package Engineering Deposits
pursuant to C(T)5.213#.
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L.
If appropriated funds are available, rework the contract into an IRSC, after getting RO
approval to offer an IRSC.
M. Forest should get an expression of interest from industry before advertising the sale.
Having industry show their interest for a deficit sale before it is put up would limit the
number of no-bid sales within the region.
48.4 - Appraising of a Stewardship Project
Stewardship projects are kept separate in the base. If there are sufficient stewardship projects in
your zone, use your zone TEA. If there are not enough projects, use the statewide TEA and
finally, if there are not enough projects statewide, use the ATEAM.
Base rates may be zero and projects of less than three years length can be flat rate (no
escalation). If escalation is being used, the RO recommends that regional minimum rates are
used as base rates. The RO also highly recommends that all projects have base rates such that if
a project qualifies for an emergency rate redetermination, that the reappraisal does not appraise
the project value down to zero. Bid Guarantees, Downpayments, and Periodic Payments are not
used in this type of contract. Performance Bonds are optional in a stewardship contract.
The law authorizing the use of stewardship authorities in natural resource management requires
the value of products to be removed shall be determined using approved methods of appraisal.
The law did not waive the requirement that products are to be offered at rates that approximate
fair market value. Appraise for the most likely yarding system(s), appraisal point, haul route,
contractual work, etc., to remove Included Products. These serve as Government estimates for
completing the work and are used in evaluating proposals. Use the most current R5 TEA
spreadsheet and download the most current database in calculating advertised rates to assure
advertised rates approximate fair market value. The advertised rate is the rate that goes into the
offer form of an IRTC, and Section B of the IRSC.
The following direction is applicable when appraising products in an IRSC:
48.4 - Exhibit 01
1. Develop costs for entry into the TEA input screen for stump-to-truck and haul using
the same costing spreadsheets as used in a timber sale. These costs serve as the
Government estimate for the work.
2. Brush disposal/fuel treatments are service work items and are not to be included in the
appraisal. Piling of landings is a stump-to-truck cost.
3. In appraising an IRSC, all construction, reconstruction, and road maintenance will be
service work items costed by the engineers using Service Contract Act (SCA) wages, or
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Davis-Bacon wage rates, as appropriate. If there are road maintenance deposits and/or
surface replacement deposits to be collected, enter the rate in the appropriate field on the
TEA input screen. If there is no road maintenance deposit nor surface replacement
deposit to be collected, enter “0.00” in the appropriate fields on the TEA input screen.
Special Provision K(T)-F(T).3.1# - Road Maintenance is not part of Appendix B or C
and does not need to be completed.
4. Deposits for Brush Disposal, K-V, SSF, DRES, and DAR are not to be collected.
Road maintenance deposits and surface replacement deposits are applicable in reasonable
amounts. On an IRSC the timber value should go toward service work instead of
deposits. Since we are paying for additional work items in an IRSC, we should use
appropriated funds for needed road maintenance.
5. Use zero (0) for the rollback factor on the TEA input screen.
6. Include performance based t-specs in Appendix C to describe required road
maintenance work.
The following direction is applicable when appraising products in an IRTC:
48.4 - Exhibit 02
1. Appraise the timber as in a regular timber sale. Do not include any costing for the
service work in the timber appraisal. Include these items if they are not part of the
service work: costs for maintenance of the haul route, disposal of slash resulting from
contractor operations, temporary roads, road construction/reconstruction, Essential K-V,
deposits for BD and RM, erosion control, stump-to-truck, DRES, and DAR.
2. Needed restoration maintenance of non-haul roads are a service type work items to be
costed the same as haul route road maintenance.
3. Treatment of existing slash in harvest units, or fuel reduction in harvest units, or
treatment of vegetative material in PCT units, are service type work items.
4. Include t-specs used in timber sales to describe required road maintenance work.
5. Detailed documentation of the costing of the service work is needed to support
updating these costs if a schedule rate redetermination or other type of rate
redetermination should occur. This documentation would not be available to the public
or contractors, but would just be for Forest Service use. Costing of the service work
should be done using a constructed cost appraisal, not just some average rate per acre or
per hour.
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Forests shall discontinue the use of a Service Contract with Product Removal (Embedded 2400-2
in a Service Contract). The service work with product removal was only an interim tool.
Service work with product removal can be accomplished using a Stewardship Project and the
Integrated Resource Service Contract. Stewardship contracts are the only tool that allows the
trading of goods for services. 48.7 Exhibit 5 shows how this work could be setup using the
Integrated Resource Service Contract.
48.41 Deficit Appraisals
In an appraisal where the total of the Indicated Advertised Rates is less than the total of the Base
Rates shown in the Appraisal Summary, the project is deficit and will likely not receive
proposals from Contractors. Consider doing one or more of the actions listed in exhibit 01:
48.41 - Exhibit 01
A. Verify the cruise to assure Regional cruising methods and procedures have been
implemented correctly, the cruise meets standards, no input errors, and that the
volume is accurate.
B. Verify the work included is actually required and in the proper quantities.
C. Check calculations of roads and cost centers for accuracy.
D. Check for accuracy of input into TEA; look for transposed numbers.
E. Verify that the most current TEA spreadsheet and database are being used.
F. Change to a cheaper logging system. Restoration objectives still need to be met.
G. Reduce or eliminate deposits by shifting BD and RM work to the Contractor.
H. Eliminate from the appraisal and road reconstruction package Engineering Deposits
pursuant to K(T)-F(T).2.1.3#.
I. If appropriated funds are available, rework the contract into an IRSC, after getting RO
approval to change from an IRTC to an IRSC.
J. Change the project to a regular timber sale or standard service contract.
In an IRSC that is deficit, one of two things will take place; the Contractor will offer advertised
rates for the products and increase the cost of doing the service to make up the deficit or the
Forest will determine which of the cost centers in the appraisal made the product deficit and then
make those cost centers mandatory service work, thus raising the product rates to the base rates.
Doing this will mean that additional appropriated funds will be needed for the increase in service
work. Either way, appropriated funds are added to the contract. In a deficit appraisal associated
with an IRSC, Excess Receipts cannot be added to eliminate the deficit in the appraisal to bring
indicated advertised rates up to base rates, but Excess Receipts can be added to pay for
restorative work activities approved as stewardship projects.
In an IRTC that is deficit, only removal of Included Timber will occur if proposals are offered
and accepted. An alternative is to add treatment acres where commercial sawtimber needs to be
removed in order to meet restoration and resource objectives. Add a sufficient amount to
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eliminate the deficit. If not available, the project is no longer an IRTC. Contact the Regional
Office to request permission to rework the contract as an IRSC if appropriated funds are
available to add to the contract.
48.42 Minimum Rates and Base Rates
Use the Regional Minimum Rates that are established in R5 Supplements and Interims to FSM
2431.31b.
Base Rates in the appraisal of an IRTC will be the greater of the total of Minimum Rates, or
required Essential Reforestation. The minimum deposit to the Treasury of $0.25/CCF will not be
included as part of Essential Reforestation. Base Rates in the appraisal of an IRSC will be
Minimum Rates. No Essential Reforestation can be collected on an IRSC.
Stewardship contracts of the 100% biomass will have the Product be “GRN BIO CV”. 100%
biomass contracts shall only contain nonsawtimber, biomass type material, or both, and are to be
offered with the unit of measure of TON. Minimum rate for this material will be $0.10/TON.
48.43 Deposits
In an IRTC, deposits for essential reforestation, burning and road maintenance by the Forest
Service, DRES, DAR, and cost share agreements are to be included in the appraisal as in a
regular timber sale. Base Rates and Deposits must be paid for in cash by the Contractor,
pursuant to E(T).2.2 Stewardship Credits, which can reduce the participation of smaller local
Contractors with limited financial resources.
Brush Disposal (BD) deposits collected from an IRTC and used by the Forest Service to
complete fuels treatments on stewardship treatment acres are to follow the requirements
contained in the Brush Disposal Act of 1916, and agency policy and direction included in
Manuals and Handbooks. BD funds can only be used to treat fuels resulting from the
Contractor’s operations to remove included products; not existing fuels. BD funds cannot be
used to treat precommercial thinning generated fuels.
IRTC provisions K(T)-F(T).2.1.3# Deposit for Reconstruction Engineering Services (9/04)
(DRES), and K(T)-F(T).2.1.4# Deposit for Actual Reconstruction (9/04) (DAR), collects
deposits from the Contractor for the Forest Service to do road reconstruction related work, with
any unexpended funds to be retained by the Forest Service. Include these provisions in
stewardship contracts as they would be used in a regular timber sale. Do not use these provisions
in IRTCs that have deficit appraisals, or if the engineering services are so minor that the costs to
make the collections would exceed the deposits.
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Collection of K-V funds from an IRTC to complete work specified in an approved SAI Plan
using an IRSC are to follow laws and regulations; and Handbook, Manual and letter direction,
related to K-V.
K-V or BD deposits cannot be collected from stewardship contracts to fund FS administration
costs associated with stewardship contracts.
Deposits for road maintenance or cost share roads can be collected from both IRSCs and IRTCs
and used per Forest Service Manual and Handbook policy and direction. Deposit amounts are to
be included in the appraisal of commercial products needing to be removed.
K-V and BD deposits, and SSF, are not to be collected on an IRSC per FSH 2409.19, 62.1 Exhibit 01.
48.44 Brush Disposal/Fuel Treatments
In an IRTC, prepare a Brush Disposal and Slash Treatment Plan to mitigate or treat slash created
from Contractor operations to remove commercial products. The cost for treatment by the
Contractor is to be included in the Plan and appraisal as in a regular timber sale. Treatment by
the Contractor of existing fuels, other pre-existing natural hazardous fuels, treatment and/or
disposal of service generated slash, and other vegetative material, are to be service work
activities.
On stewardship projects, Forest Service personnel involved in burning operations can be paid
with excess receipts to complete on-the-ground fuel treatments. Torch fuel, and vehicle use and
mileage related to completion of on-the-ground burns can also be paid for with excess receipts.
Forest Service personnel involved in preparing burn plans cannot be paid for with excess
receipts. Overhead and facilities charges cannot be paid for with excess receipts.
Contracts are not to include the option for the Contractor to turn back work to the Forest Service.
Contractors, in their proposals, are to enter the cost to complete the work, or state they cannot do
a particular requirement(s) or item(s). This is then considered by the team evaluating proposals.
48.45 Engineering Packages
During the planning process, a list of restoration activities will be prioritized and weighed
against the potential amount of product value to be generated. Some of these activities may be
road-related work. Restoration activities that take place on specified roads that are not necessary
to remove “Included Products” are to be identified as mandatory or optional as determined in the
planning process. Prepare a separate package of drawings, specifications, and schedules of items
for each mandatory and optional project in a manner similar to additive items on public works
construction contracts. These projects will be listed as service activities in the contract for
individual bids. Appropriated funding for roads (CMRD) may be added to an IRSC to
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supplement the contract cost to accomplish road work. Appropriated funds cannot be added to
an IRTC, except to build a road to higher standard than needed to remove included forest
products.
In an IRTC, prepare road packages in the same manner as for commercial timber sales (FS-24006(T).
In an IRTC, if the time needed for Forest Service personnel to complete road packages will delay
advertisement of the contract, engineering services can be performed by the Forest Service after
the contract is awarded as in a commercial Timber Sale. Use contract provision A(T).8 Forest
Service Engineering Completion Schedule and K(T)-F(T).1.3# Road Completion Date for post
award engineering. Claims due to delays in the Contractor’s operations directly related to post
award engineering will be paid by appropriated road funds.
Contracting the road design cannot be a stewardship work activity. The design work can be paid
for with stewardship funds with the work in a separate service contract. The design falls under
an Architecture and Engineering contract type which requires a special contracting procedure.
48.46 Roads, Road Maintenance and Stewardship Restoration Activities
Some of the authorities, policy and direction related to roads include the following listed in
exhibit 01:
48.46 - Exhibit 01
A. National Forest System Roads: Plan, design, and operate transportation facilities for
stewardship contracts in the same manner as for Timber Sales according to FSM
2432.34, FSM 7712, FSM 7721 and 7732. All direction regarding commensurate share
and cost share applies.
B. Temporary Roads: Utilize temporary roads only for short-term, non-recurrent
Contractor use. Do not plan or permit Contractors to construct temporary roads in lieu
of building specified roads needed for future management of the area. (FSM 2432.34b)
C. Easements: Acquire easements that provide for full multiple-use traffic. A term
easement or permit may be acquired after a transportation analysis report is prepared
and subjected to the environmental assessment process, and the decision document
indicates that the road will be a temporary facility, not needed for future access to
National Forest System lands. (FSM) 5461
Stewardship projects on roads may include reconstruction or maintenance activities that are
restorative in nature such as road decommissioning (obliteration), measures to mitigate roadrelated sediment, preventive measures for resource protection (e.g., water bars on local roads),
culvert replacement to accommodate fish passage, etc. When work takes place on a specified
road that is not required for removal of forest products, it should be identified as a service type
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work activity and listed in the contract as mandatory or optional as determined in the planning of
the stewardship contract.
Coordinate with engineering to identify access issues, determine the conditions of the potential
haul routes (including bridges and structures) and establish framework for the engineering
package to be included in the stewardship contract. Identify work necessary to safely
accommodate activities generated by the stewardship contract and maintain the transportation
facility as in a commercial timber sale. Identify potential stewardship work to meet clean water
act objectives, NWFP, Aquatic Conservation Strategy, etc. and appropriate funding mechanisms
(excess receipts, appropriated funds, or a combination).
In an IRTC, mandatory and optional service type restoration activities on roads inside the
contract area not used for the removal of Included Products are to have separate design packages,
listed as service activities in the contract, and their cost NOT included in the appraisal. For
example, replacing a culvert on the haul route that meets current standards, but need to be
replaced to allow fish passage, would be a service type restoration work activity. Itemize into
separate work activities the work requirements for each project to allow the entry by the
Contractor of individual costs for each work activity.
In an IRTC, construction and reconstruction on the haul route necessary for the hauling of log
products, and road maintenance of the haul route due to log transport vehicles, are to be costed
and included in the appraisal as in a regular timber sale. Maintenance of other roads in the
contract area is to have a restoration objective; reduce sediment transport into an adjacent stream
where the roads crosses through the riparian area, clean plugged ditches or culverts that back
water and cause it to flow down and produce sediment that may erode the road, are service
related work activities and their cost not included in the appraisal. These may be mandatory or
optional restoration projects.
In an IRSC, road construction and reconstruction, and road maintenance, anywhere in the
contract area, or on the haul route, are service related items and their costs are not to be included
in the appraisal. Itemize into separate work activities the work requirements for road
construction and reconstruction, and road maintenance, to allow the entry by the Contractor of
individual costs for each work activity. Enter “0.00” into the TEA input screen as the sale
specific road maintenance cost. In developing the Government estimate for the road construction
and reconstruction, use Davis-Bacon wage rates in calculating the cost for doing the work. Road
maintenance will use SCA wage rates.
Estimate quantities of work based on anticipated haul due to the stewardship contract.
Stewardship contracts are “performance-based” contracts. The use of performance-based road
maintenance specifications is encouraged in stewardship contracts. Digital photos may be used
to establish visual standards for acceptable performance of road maintenance. This is
particularly important if engineers are not administering road maintenance activities over the life
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of the contract. Digital photos of the road related work activities and haul routes can be included
in the contract files as documentation for long-term stewardship contracts (5-10 years or longer).
Contractor performance is preferred over collection of road maintenance deposits for both
traffic-generated and non-traffic-generated (NTG) work. For paved haul routes, consider having
Contractor perform NTG maintenance in lieu of collections for traffic generated work if there is
sufficient NTG work to be done. Remember, only the Regional Forester has the authority to
waive the collection of road maintenance deposits.
Ensure that maintenance deposit rates are current and accurate with today’s amount and
distribution of commercial and administrative traffic. Collecting deposits for maintenance is
appropriate for routes where there is essentially continuous haul by multiple commercial users.
All direction regarding commensurate share is applicable to stewardship contracts (FSM 7732).
Road maintenance responsibilities of commercial users in Region 5 are not to be waived. This
authority remains with the Regional Forester and has not been delegated (FSM 7731.04).
48.47 Danger Trees
Mitigation of the hazard posed by danger trees along National Forest roads is a Forest Service
responsibility that is included in annual road maintenance plans approved by the local line
officer. Coordinate with engineering in project scoping phase to identify and prioritize danger
tree assessments in the project area. Roads are to be cleared of danger tree hazards prior to
personnel entering the area for recon, data collection, and project layout for stewardship related
treatments. Contractors are responsible for mitigating danger trees along the haul route that
develop during the life of the contract. Include a pay item in an IRSC for falling and mitigating
danger trees. In the IRTC, include in the road maintenance appraisal an estimate of the number
of danger trees to be felled and mitigated, and a cost for removal and mitigation of the danger
trees by the Contractor.
Removing danger trees, dead trees, or insect infested or diseased trees along non-haul roads,
inside a campground, or salvage sales to recover value from deteriorating trees, are not
restoration activities and will not be approved as stewardship projects. This is not a change in
policy or direction.
48.48 Stewardship Agreements
Forests are to coordinate with the Regional Office in the use of agreements related to
stewardship projects. Agreements and stewardship have separate authorities and their use must
be compliant with both authorities without any conflicts.
FSH 1509.11, Chapter 70 provides guidance on stewardship agreements. Agreement templates
have been developed and approved for use by the WO. Advice and assistance by the agreement
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specialist will be provided in the use of the draft templates. Forests contemplating stewardship
agreements are to include their agreement specialists in the design and development of the
agreement.
The use of stewardship authorities requires contractors who complete restoration work activities
for the partner be selected on a best value basis. Forests using stewardship agreements are to
work with AQM in the best value determination.
Stewardship agreements are to be entered into TIM to receive target accomplishment for the
volume awarded, and into TSA for tracking volume removed, value of volume removed and
work earned, and to facilitate any needed billing of the Partner.
Rate redeterminations on timber products due to changes in market, receiving less for delivered
logs, or other conditions, are not applicable in an agreement or supplemental project agreement.
Appraise a stewardship agreement in the same manner as you would appraise a TEA sale, except
use a rollback factor of 0.
48.49 Optional Cutting Units
Stewardship contracting provides for Optional Units which have merchantable products that
need to be removed to meet restoration objectives. Typically, the units have insufficient value to
fund all of the operations needed to accomplish the restoration objectives. Appraise timber
values from optional cutting units separately from timber being removed from mandatory units.
If a forest chooses to use optional cutting units, the appraiser has to ensure that the optional
cutting units can stand alone as a unit. Optional cutting units are not timber subject to agreement
or optional volume; they are stand alone cutting units that are being optionally offered. Optional
Units remain optional unless the Contractor enters a total value for the Optional Units on the
Offeror Form. This makes the Optional Units mandatory units and the contractor is required to
remove all Included Timber in the units to meet the desired end result. If a total value is not
entered, Optional Units remain Optional Units.
Optional Units are to be shown on the Contract Area Map and identified as Optional Units in the
legend. Show the volume by species and product below the Mandatory Units on the Unit
volume summary. Do not include the volume from Optional Units as part of the offer volume.
As the species and products in Optional Units will likely have different prices than the species
and products in Mandatory Units, additional product accountability and monitoring by contract
administrators will be needed to assure financial accountability of the species and products
removed. Specifically, logs from mandatory and optional units cannot be hauled at the same
time. Also, increased contract administration visits and truck checks to assure accountability
requirements are being met.
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48.5 - TIMBER PROPERTY SALES
Timber property sales (FSM 2468) involve recovery of values in excess of stumpage value. This
excess value is the cost or value of processing to the condition at which the sale is being offered.
This usually involves the cost or value of felling and bucking, and possibly skidding and
decking. An example would be selling logs from a deck. Since the logs are in a deck; no felling,
bucking, skidding or decking is needed and thus the cost of doing these operations is the timber
property value. In any event, "the costs shown on the appraisal summary up to the point of sale
are the measure of the property value in excess of stumpage.
Use average costs to determine the total increased value due to partial processing, see exhibit 01:
48.5 - Exhibit 01
Total Volume of the Sale =
500 ccf
Volume
500 ccf felled
350 ccf bucked
100 ccf skidded
Total timber property value
Average timber property value
Average Cost
$10
5
20
$5,000
1,750
2,000
$8,750
$17.50/ccf
See Chapter 45.42, part 2b of FSH 2409.18 - Timber Sale Preparation Handbook for added
direction on the amount of Timber Property Value to be included with the base rates. Do not
adjust the base rates with a negative timber property value if a negative occurs when doing the
calculation in FSH 2409.18, Ch 45.42, part 2b.
Enter the timber property value in the timber property value field in the Data Input worksheet of
the TEA spreadsheet. Also for the items that make up the timber property value, do not include
in the cost centers for the sale. The R5 TEA spreadsheet will make the necessary adjustments to
the base rates on form 2400-17 to account for the timber property value. The base rates used for
the sale will equal the calculated base rates plus the timber property value calculated in FSH
2409.18, Ch 45.42, part 2b. The sale will not sell for anything less than the calculated base rates
and the Timber Property Value.
48.6 - TEA Monitoring
The objective of Transaction Evidence Appraisals (TEA and ATEAM) is to bring timber sale
advertised rates within 70 to 85 percent of high bid rates as measured over the previous 4
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calendar quarters for all competitively advertised sales $2,000 and over in advertised stumpage
value as stated in FSH 2409.18 - Timber Sale Preparation Handbook, Section 45.3. In
competitive areas if the advertised rates exceed 85 percent of bid rates, Forests may experience
an increased tendency for no-bid sales. In areas of limited competition if the advertised rates
exceed 85 percent, the public may not be receiving fair market value. If advertised rates are less
than 70 percent of bid rates, the Forest's base sales may not reflect the current sale conditions.
Forest should consult with the Regional Office if experiencing any of these problems. Our
concerns are that all our sales sell and that, in areas of limited competition, the public receive fair
market value.
To evaluate whether this goal is being met forests will submit to the Regional Office a TEA
monitoring report for all sales sold using TEA during the previous 4 calendar quarters. The
report will include sale name, volume, total advertised value, total bid value, advertised/bid ratio,
and number of bidders for each sale sold and the average advertised/bid ratio for the quarter and
the 4th quarter period. The advertised/bid ratio for sales will be determined by dividing
advertised value by the bid value. The average advertised/bid ratio for the quarter and 4 quarters
will be determined by a weighted average by volume of the advertised/bid ratios.
Forests will also submit electronic copies of the TEA spreadsheet for all sales listed in the TEA
monitoring report. Electronic copies of the TEA spreadsheets should be sent to the regional
timber sale appraisal specialist every six months or after a sale sells.
For Stewardship Projects, indicate offer value of the included product(s) and total cost of the
stewardship activities.
Forests shall submit the TEA monitoring report semiannually in April and October to see if the
70-85 percent is being achieved. The report will consist of the following format. (See Exhibit
01)
48.6 - Exhibit 01-TEA monitoring Report
Forest
Sale
Name
Big Tim
Apple
Orange
Banana
Peach
Lemon
SSTS
Total/Avg
Volume
(CCF)
Total Adv
Value ($)
Total Bid
Value ($)
1,000
2,000
1,000
2,000
1,000
7,000
18,000
8,000
12,000
7,000
10,000
20,000
10,000
20,000
10,000
Sale
Adv/Bid
Ratio
.70
.90
.80
.60
.70
7,000
52,000
70,000
.74
Qtr
Bid Type
(S or A)
2
3
4
4
1
S
S
S
S
S
Number
of
Bidders
3
4
2
3
1
2.6
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1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
.70
.70
.90
.67
4 Qtr Avg:
.74
In order to do a better job with our TEA Monitoring Report to the Chief, we are requiring the
following No Bid information. Please follow the format shown in the attached example for the
no bid sale information.
48.6 - Exhibit 02 - NO BID INFORMATION
Forest
Sale Name
Big Tim
Lemon TS
Volume
(CCF)
20,000
Adv Value
($)
1,400,000
Bid Type
(S or A)
A
Reason for No Bid & Present Status of
Sale
Sale too big and timber too big for
equipment. Sale will be reoffered in the
winter.
48.7 - Bid Monitoring
The annual Bid Monitoring Report is due to the Regional Office on October 31. Bid monitoring
information can be found in Chapter 67 - Identifying and Reporting Non-Competitive Bidding
from FSH 2409.18 - Timber Sale Preparation Handbook. Although there is no specific format
the forest report should address the following nine topics needed as a minimum for the National
report and complete the table shown below.
Nine Topics needed for the National Report (See exhibit 01):
48.7 - Exhibit 01
1.
2.
3.
4.
5.
Summary of illegal activities concerning bid collusion and anti-trust activities.
Resolution of any cases investigated by Department of Justice (DOJ).
Administrative action taken concerning any anti-trust activities.
Summary of bid protests.
Summary of any bidding irregularities such as non-responsive bidders; mistakes in bids;
skewed bidding; bidders failing Contracting Officer's determination of bidder
responsibility or certificate of competency issued by the Small Business Administration;
and any other items relating to bidding irregularities.
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6.
7.
8.
9.
Changes in bidding method such as increasing sealed bidding or implementing
proportionate rate bidding.
Summary of significant changes in trend such as increase in no bids, fewer bidders, volume
under contract, overbid ratios, market share of purchasers, or significant changes in timber
supply and demand.
Summary of relevant training for bid monitoring or anti-trust activities.
Summary of creative deterrents, if any, that were used.
48.7 - Exhibit 02
FY xxxx
Sold
Volume
(ccf)
Number
of Sold
Sales
(No bids
sales) **
Avg.
Adv
Rate
$/ccf
Avg
High
Bid
$/ccf
Avg
Overbid
$/ccf
Forest Total/Avg
** with the number of any no bid sales shown in parentheses.
Avg
Number
of Bidders
per Sale
Avg
Bid
Ratio
Avg Adv
Rate/ Bid
Rate %
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48.7 - Exhibit 03
Report of Timber Sale (Front Side of the 2400-17) Coding
Products C = Convertible products, NC = Nonconvertible products
Form
TMIS
FS-2400-17
2400-17
1
2
3
4
5
6
7
8
9
01
02
18
15
16
03
04
05
06
07
08
09
10
11
12
13
14
17
19
20
21
26
27
28
29
30
31
Sawlogs, C
Pulpwood, C
Other convertible products (Poles, pilings, posts, mine props), C
Cull logs or substandard material, C
Optional code, C
Pine distillate wood, NC
Christmas trees, NC
Naval stores, NC
Other (specify), NC
Poles, C
Pilings, C
Mine props, C
Posts, C
Fuelwood, C
Non-sawtimber, C
Ties, C
Coop bolts, C
Acid/Dist., NC
Float logs, C
Trap float, C
Misc-conv., C
Non-conv., NC
Small roundwood, C
Green biomass, C
Dry biomass, C
Specialty wood products, NC
Bee trees, NC
Transplant, NC
Limb/Bough, NC
Foliage, NC
Needles, NC
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48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-017) Coding
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
60
61
62
63
64
65
75
76
77
78
79
Bark, NC
Cones-grn, NC
Cones-dry, NC
Seed, NC
Nut/Seed, NC
Fruits/Berries, NC
Tree sap, NC
Tree resin, NC
Roots, NC
Bulbs, NC
Mushrooms, NC
Fungi, NC
Mosses, NC
Herbs, NC
Ferns, NC
Wildflowers, NC
Grass, NC
Aquatic plants, NC
Vines, NC
Mistletoe/Spanish Moss, NC
Cacti, NC
Green biomass, NC
Dry biomass, NC
Other plants resources, NC
Worms, NC
Insects, NC
Reptiles, NC
Frogs, NC
Animal Artifacts, NC
Other animal resources, NC
Clay, NC
Sand, NC
Pumice, NC
Cinders, NC
Shale, NC
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48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
80
81
82
83
90
91
Unit of measure
Form
FS-2400-17
1
2
3
4
5
6
7
8
9
01
02
03
09
05
04
06
07
08
10
11
12
13
14
15
Gravel, NC
Stone, NC
Rock, NC
Other minerals, NC
Spring water, NC
Other aquatic resources, NC
TMIS
2400-17
MBF (Non transaction evidence for FS-2400-17)
Cord
MBF (older dead which is not included with green material)
C cu.ft. (Ccf. or Cunits)
Each nonconvertible products only, such as Xmas trees
Ton (Distillate wood)
MBF (transaction evidence)
Cord (transaction evidence)
C. cu. ft. (transaction evidence)
Piece
LN FT
PAM (per acre material)
CU FT
LBS
BSHLS
TAPS
Faces
Acres
Gals
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 37 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-017) Coding
Contract Contract & Permit
Form
TMIS
Form FS-2400-17 2400-17
1
3
3T
6
6T
1
3S
3T
3P
4
6
6T
8
13
13T
33
33T
Forest Product Removal Permit 02/2000
Contract form 2400-3 08/99 (Scaled)
Contract form 2400-3T 08/99 (Tree Measurement)
Contract form 2400-3 08/99 (Forest Products)
Contract form 2400-4
Contract form 2400-6 09/73 (Scaled)
Contract form 2400-6T 10/73 (Tree Measurement)
Forest Product Removal Free Use Permit 02/2000
Integrated Resource Product Contract (Scaled)
Integrated Resource Product Contract (Tree Measurement)
Integrated Resource Service Contract (Scaled)
Integrated Resource Service Contract (Tree Measurement)
Status Contract Status
Form
TMIS
FS-2400-17
2400-17
1
V
Normal procedure for sales with one or more bidders. No
indication of unqualified bidder, etc. Award and execution of
contract expected to proceed normally.
2
3
4
N
R
No bids received.
Bids rejected. Indicate reason under "Remarks".
Award withheld pending verification of high bidder's qualifications
(FSM 2431.7).
Award withheld by appeal or legal action. Identify case or appeal
under "Remarks".
Tie bids (disposition being studied).
5
6
T
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 38 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
7
Cancel previous FS-2400-17 with this identification. (Applicable
only to sales not to be entered into the sales files or to be deleted
from it, and does not apply to no bid sales sold without
readvertisement).
Award pending road construction contract request by small business
bidder.
Award pending EEO or other determination (indicate in Remarks
Block).
Award withheld pending availability of purchaser credit funding.
8
9
10
SBA Set-Aside
Form
FS-2400-17
N
Y
N
Y
X
X
W
W
Z
TMIS
2400-17
No
Yes, for all SBA set-aside sales except for designated Special Salvage Timber
Sales (SSTS). FSM 2436.5
SBA Set-aside SSTS sales requiring the 30/70 manufacturing distribution,
2436.56.
SBA Set-aside SSTS sales without the 30/70 manufacturing Distribution
requirement, 2436.56.
Readvertise SBA
Appraisal Base Period (2400-17)
In the first space, enter the calendar year quarter. Enter "5" if the appraisal base period is the full
calendar year. Enter "6" if the base period is any other unit of time. In the last two spaces, enter
the last two digits of the calendar year.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 39 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
Salvage Salvage Status
Form
TMIS
FS-2400-17
2400-17
N
01
Y
02
Z
03
04
Pricing Methods
Form
FS-2400-17
1
2
3
4
Flat
No, for all sales except those made primarily for the purpose of Salvage (fire,
blowdown, or other damaging agents). (Stars - regular sale w/ or w/out
salvage comp.)
Yes, for all salvage sales in the regular program and financed by appropriated
funds. (Stars - salvage sales in regular program)
Yes, for all salvage sales primarily financed by the salvage sale fund (SSF) and
which are additional to the volume of salvage sales normally financed by
appropriated funds. (Stars - salvage sales financed by salv sale fund)
SSTS qualified sale
TMIS
2400-17
Flat rate.
Flat rate with scheduled rate redetermination.
Quarterly escalation.
Quarterly escalation with scheduled rate redetermination.
100D Escalated rate, 50% up, 100% down
100U Escalated rate, 100% up, 100% down
50D Escalated rate, 50% up, 50% down
Sra
Standard rate, $2,000 up to $10,000
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 40 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
Contracting Officer
Contracting Authority
Form
FS-2400-17
D
S
R
C
D
S
R
C
Method Bidding
of Sale Method
Form
FS-2400-17
A
S
D
A
S
D
TMIS
2400-17
Ranger
Supervisor
Regional Forester
Chief
TMIS
2400-17
Auction
Sealed bids
Direct, unadvertised, or noncompetitive
Reg Sale
36CFR221 Regulation
Form
TMIS
FS-2400-17
2400-17
4
04
6
9
12
06
09
12
19
20
19
20
36 CFR 223.11 (FSM 2469) Applicable to Cooperative and Federal
Sustained Yield Units.
36 CFR 223.1(a) (FSM 2430) Commercial Sales.
36 CFR 223.8(b) (FSM 2461) Disaster Relief.
36 CFR 223.5(g) (FSM 2431.8) Sale of Previously Advertised Timber
Without Further Advertisement.
36 CFR 223.1(a) (FSM 2467) Sales of Naval Stores Cuppage.
36 CFR 223.1(a) (FSM 2467.2) Sales of Misc. Products other than Naval
Stores.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 41 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
21
23
24
29
21
23
24
29
36 CFR 223.1(c) (FSM 2466) Sale of Seized Materials.
36 CFR 223.1(d) (FSM 2465) Timber Selected in Land Exchange.
36 CFR 223.1(b) (FSM 2463) Administrative Use of National Forest Timber.
36 CFR 223.1(h) (FSM 2464) Timber Settlement.
SBA Class Bidder Class
Form
TMIS
FS-2400-17
2400-17
S
W
L
N
N
M
Sale Status
Form
FS-2400-17
A
C
D
E
F
G
M
O
R
S
T
W
Z
Small
SSTS - Small business (25 persons or under)
Large
Nonmanufacturing
Manufacturing
TMIS
2400-17
Appeal
Closed
Delayed offering
Extended
Defaulted/Breach
Go/Continue
Modified
Ongoing
Reduction
Resold
Terminated
Withdrawn before award
Sales from Master file (2400-17)
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 42 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
Bidder Size
Form
FS-2400-17
1
2
3
TMIS
2400-17
1 - 25 employees
26 - 500 Employees
Over 500 Employees
Sale Size Class
Form
FS-2400-17
01
03
04
05
06
07
08
TMIS
2400-17
Non-convertible products
Through $300 in value
Over $300 - $2000 in value
Over $2000 - 2,000 MBF
Over 2,000 MBF - 5,000 MBF
Over 5,000 MBF - 15,000 MBF
Over 15,000 MBF +
New Sale Size Class (as of October 1, 2000)
1
3
4
5
6
7
8
Non-convertible
To $300
$301 to $10,000
$10,001 to $100,000
$100,001 to 1,000,000
$1,000,001 to 5,000,000
Over $5,000,000
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 43 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 3--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
Appraisal Type
Form
FS-2400-17
C
RT
RV
SRA
SVE
TE
TT
TMIS
2400-17
Comparison
Residual total value appraisal
Residual value appraisal
Standard rate appraisal
Stumpage value equation
Transaction evidence
Transaction evidence total
Appraisal Deficit Status
Form
TMIS
FS-2400-17
2400-17
K
L
M
N
R
Deficit due to K-V costs
Deficit due to logging costs
Deficit due to market conditions
Not deficit
Deficit due to road costs
State
Form
FS-2400-17
06
TMIS
2400-17
06
California
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 44 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 3--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
County
Form
FS-2400-17
TMIS
2400-17
001
003
005
007
009
001
003
005
007
009
Alameda
Alpine
Amador
Butte
Calaveras
011
013
015
017
019
011
013
015
017
019
Colusa
Contra Costa
Del Norte
El Dorado
Fresno
021
023
025
027
029
021
023
025
027
029
Glenn
Humboldt
Imperial
Inyo
Kern
031
033
035
037
039
031
033
035
037
039
Kings
Lake
Lassen
Los Angeles
Madera
041
043
045
047
049
041
043
045
047
049
Marin
Mariposa
Mendocino
Merced
Modoc
051
053
051
053
Mono
Monterey
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 45 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03--Continued
Report of Timber Sale (Front Side of the 2400-17) Coding
055
057
059
055
057
059
Napa
Nevada
Orange
061
063
065
067
069
061
063
065
067
069
Placer
Plumas
Riverside
Sacramento
San Benito
071
073
075
077
079
071
073
075
077
079
San Bernardino
San Diego
San Francisco
San Joaquin
San Luis Obispo
081
083
085
087
089
081
083
085
087
089
San Mateo
Santa Barbara
Santa Clara
Santa Cruz
Shasta
091
093
095
097
099
091
093
095
097
099
Sierra
Siskiyou
Solano
Sonoma
Stanislaus
101
103
105
107
109
101
103
105
107
109
Sutter
Tehama
Trinity
Tulare
Tuolumne
111
113
115
111
113
115
Ventura
Yolo
Yuba
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 46 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 03 --Continued\
Report of Timber Sale (Front Side of the 2400-17) Coding
Forest
Form
FS-2400-17
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
TMIS
2400-17
Angeles
Cleveland
Eldorado
Inyo
Klamath
Lassen
Los Padres
Mendocino
Modoc
Six Rivers
Plumas
San Bernardino
Sequoia
Shasta
Sierra
Stanislaus
Tahoe
Trinity
Lake Tahoe Basin Management Unit
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 47 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 04
SALE DOCUMENTATION SHEET
Sale Name:
Example Thinning Timber Sale
This sale consists of thinning 4,000 ccf of small Ponderosa Pine and White Fir sawlogs over 500
acres with 500 ccf of biomass product. The sale is Southside Sierra and is 10 air miles from
Sawn Away.
The appraisal point for this sale is 30 miles away at the Chip Off the Old Block Mill in the town
of Timberton. This is the closest mill that is capable of processing the material from the sale.
It is expected that hotsaw technology will be used on this sale, thus increasing the Project
Activity Level (PAL) cost to $6.75 per ccf. The Never Burn Wasteland SIG will be used to
calculate the Project Activity Level. The “normal operating period” is from July 15 to October
30. Due to limited operating period constraints (C6.315#), operations can only be conducted
from August 1 to October 30.
Due to the sensitivity of the sale area, no human waste is allowed. Purchaser will need to rent
two porta-potties and enter into a land use agreement with a private landowner to store them on
adjacent private property.
Porta-potties
Cost to rent 2 porta-potties and transport them to and from the sale area for 3 logging seasons is
$12,000.
Cost to rent private land to set the porta-potties up on is $8,400.
Total cost is $20,400, which is equal to $5.10/ccf of sawlogs.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 48 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 05
Example of how a Stewardship Project can take the place of
a Service Contract with Product Removal
PART 1 - THE SCHEDULE
SECTION B - SERVICES AND PRICES
Ranger District
National Forest
County
B.1 SCHEDULE OF ITEMS:
NOTE: Price Proposals MUST be provided on ALL Items in Schedules B-1, Base and Elective Work Activities and
B-2, Timber Removal Price Schedule.
SUMMARY SCHEDULE OF ITEMS - Complete item pricing on following Schedule B pages.
ITEM NO.
1
MANDATORY WORK ACTIVITY DESCRIPTION
Felling, yarding, and decking of saw material. Including piling of landing slash
2
Hauling of saw material. Including road maintenance
3
Felling, skidding, decking, and removal of non-saw material
4
Erosion Control Seeding
5
Installation of erosion control structures
6
Road Construction and Reconstruction
7
Fireline construction
ITEM NO.
8
ELECTIVE WORK ACTIVITY DESCRIPTION
Precommercial thinning and slash treatment
Using the Government Estimate as a basis the mandatory items should equal 90% of appraised value on tree
measurement contract. Mandatory items should equal 75% of appraised value on scaled contracts.
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 49 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 05--Continued
Example of how a Stewardship Project can take the place of
a Service Contract with Product Removal
SECTION B - SERVICES AND PRICES
B.1 SCHEDULE OF ITEMS
ITEM
NO.
DESCRIPTION
UNIT
Estimated
Quantity
UNIT
PRICE
TOTAL
MANDATORY WORK ITEMS
1
Felling, yarding, and decking of
saw material. Work includes
piling of landing slash.
CCF
10,000
$
$
2
Hauling of saw material. Work
includes road maintenance.
CCF
10,000
$
$
3
Felling, yarding, decking, and removal
of non-saw material.
CCF
2,000
$
$
4
Erosion Control Seeding.
Mile
2.5
$
$
5
Installation of erosion control
structures.
Each
25
$
$
6
Road Construction and
Reconstruction
7
Fireline construction
$
Miles
3.5
$
$
AC
1,500
$
$
ELECTIVE WORK ITEMS
8*
Precommercial Thinning and slash
treatment
TOTAL ALL ITEMS
$
*NOTE: This item is an Indefinite Quantities Delivery Item. And the quantities in the Schedule of Items are
estimates only. Task orders will be issued identifying specific units to be completed based on the above pricing.
With few exceptions, timing of the work is dependant upon completion of timber harvest and fuel treatment
activities.
B.2 TIMBER REMOVAL PRICE SCHEDULE:
R5 AMENDMENT 2409.22-2012-05
EFFECTIVE DATE:12/19/2012
DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier.
2409.22_48
Page 50 of 50
FSH 2409.22 - TIMBER APPRAISAL HANDBOOK
CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA)
48.7 - Exhibit 05--Continued
Example of how a Stewardship Project can take the place of
a Service Contract with Product Removal
Values of timber products removed to be applied at Flat Rates
SPECIES
ALL SPECIES
ALL SPECIES
PRODUCT
SAW
NON-SAW
UNIT OF
MEASURE
CCF
CCF
MINIMUM
ACCEPTABLE
BID
$215.35
$0.25
BID
(FLAT)
$
$
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