2209.22_48 Page 1 of 50 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Effective Date: December 19, 2012 Duration: This amendment expires 5 years from the effective date unless superseded or removed earlier.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 The last amendment to this Handbook was 2409.22-2012-4 to 2409.22_41.c. New Document 2409.22-2012-5_48 50 Pages Superseded Document(s) by Issuance Number and Effective Date 2409.22-2011-2_48 4/6/2011 49 Pages Digest: 48.16 Part 2 – States that the “Deck Removal” tab can be used to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2409.22-2012-05 EFFECTIVE DATE:12/19/2012 DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier. 2409.22_48 Page 2 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 48.16 Part 3 –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. 2409.22_48 Page 3 of 50 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. 2409.22_48 Page 4 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK 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. 2409.22_48 Page 5 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK 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. 2409.22_48 Page 6 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK 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. 2409.22_48 Page 7 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK 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. 2409.22_48 Page 8 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 2409.22_48 Page 9 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 2409.22_48 Page 10 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 2409.22_48 Page 11 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 12 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 13 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 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 14 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 15 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 16 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 17 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 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 18 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 19 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 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 20 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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#. 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 21 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 22 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 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 23 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 24 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 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 25 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 26 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 27 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 28 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 29 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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. 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 30 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 31 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 ($) 1,000 2,000 1,000 2,000 1,000 7,000 18,000 8,000 12,000 7,000 10,000 20,000 10,000 20,000 10,000 Sale Adv/Bid Ratio .70 .90 .80 .60 .70 7,000 52,000 70,000 .74 Qtr Bid Type (S or A) 2 3 4 4 1 S S S S S Number of Bidders 3 4 2 3 1 2.6 R5 AMENDMENT 2409.22-2012-05 EFFECTIVE DATE:12/19/2012 DURATION: This amendment expires 5 years from the effective date unless superseded or removed earlier. 2409.22_48 Page 32 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr .70 .70 .90 .67 4 Qtr Avg: .74 In order to do a better job with our TEA Monitoring Report to the Chief, we are requiring the following No Bid information. Please follow the format shown in the attached example for the no bid sale information. 48.6 - Exhibit 02 - NO BID INFORMATION Forest Sale Name Big Tim Lemon TS Volume (CCF) 20,000 Adv Value ($) 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. 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 33 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 % 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 34 of 50 FSH 2409.22 - TIMBER APPRAISAL HANDBOOK CHAPTER 48 - TRANSACTION EVIDENCE APPRAISAL PROCEDURES (TEA) 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 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 35 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 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 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 36 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 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) $ $