: 2409.22 Page 1 of 15 FOREST SERVICE HANDBOOK PACIFIC NORTHWEST REGION (REGION 6) PORTLAND, OREGON FSH 2409.22 – TIMBER APPRAISAL HANDBOOK Amendment No.: R6/PNW-2409.22-2001-1 Effective Date: April 12, 2001 Duration: Effective until superseded or removed Approved: NANCY GRAYBEAL Date Approved: 4/4/2001 Deputy Regional Forester Posting Instructions: Amendments are numbered consecutively by Handbook number and calendar year. Post by document name. Remove entire document and replace with this amendment. Retain this transmittal as the first page of this document. New Document(s): 2409.22 15 Pages Superseded Document(s): 2409.22, including exhibits and appendix 388 Pages (Last amendment was No. 450.) Digest: Chapter 1 Chapter 2 Chapter 3 Chapter 4 Implements direction for appraising sales in Region 6 using the Transaction Evidence Appraisal (TEA) process. Establishes principles and criteria for use. Describes appraisal zones, cost centers and adjustments. Discusses no-bid sales. Requires use of the Timber Information Manager (TIM) for timber sale package assembly, and issues guidelines for the dissemination of timber sale information to e-businesses. R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 2 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK TABLE OF CONTENTS Chapter 1. Transaction Evidence Appraisal Principles and Criteria for Use .......... 3 Chapter 2. Development of Appraisal Data. ............................................................... 3 a. Appraisal Zones. .................................................................................................................... 3 b. Base Period. ........................................................................................................................... 4 c. Base Period Price (BPP). ....................................................................................................... 4 d. Competition Factor. ............................................................................................................... 4 e. Adjustment for Sale Characteristics. ...................................................................................... 5 (1) Unusual Adjustment. ........................................................................................................ 5 (2) Rapid Market Adjustment (RMA). .................................................................................. 5 (3) Product Quality Adjustment (PQA). ................................................................................ 6 (4) Zone Average Operational Costs. .................................................................................... 6 (5) Sale Operational Costs. .................................................................................................... 6 f. Appraising Non-sawtimber/Fiber/Chips (Product 08 Material), and Special Cull and Utility Logs. ............................................................................................................................... 8 g. Appraising Fire Damaged Trees. ........................................................................................... 8 h. Appraising Species That Lack a Base Period Price. .............................................................. 8 (1) From Adjacent Appraisal Zone. ........................................................................................ 9 (2) From Delivered Log Prices ............................................................................................... 9 i. Combining Species. ................................................................................................................ 9 j. Fixed Rate Species. ............................................................................................................... 10 k. Flat Rate Species. ................................................................................................................. 11 l. Scaling. ................................................................................................................................. 11 m. Inappropriate Work Included in the Appraisal and Timber Sale Contract. ........................ 11 n. Analysis of Advertised Rates. .............................................................................................. 12 (1) Compare with Other Sales.............................................................................................. 12 (2) Delivered Log Prices. ..................................................................................................... 12 Chapter 3. No Bid Sales ............................................................................................. 13 Chapter 4. Administrative Use Sales. ....................................................................... 14 Chapter 5. Timber Information Manager (TIM), Timber Sale Documents, and the Internet. ............................................................................................................. 14 a. TIM-Produced Documents for the Timber Sale Package. ................................................... 14 b. TEA Program and TIM. ....................................................................................................... 14 c. Internet Based Sale Information .......................................................................................... 15 R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 3 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK Chapter 1. Transaction Evidence Appraisal Principles and Criteria for Use By reference, the National and Regional policy and direction contained in the following handbook and user guides are incorporated into the Region 6 FSH 2409.22 Appraisal Handbook: 1. 2. 3. 4. 5. 6. 7. 8. FSH 2409.18, Chapters 40 and 50, as amended and supplemented. Region 6 Transaction Evidence Appraisal User Guide. Region 6 Product Quality Adjustment User Guide. Region 6 Rapid Market Adjustment Information Guide. Region 6 Base Period Price Calculation Information Guide. Pre-sale and Post Bid Distribution of Timber Sale Information Guide. Bid and Post-Bid Calculations User Guide. Rate Redetermination User Guide. As a result of three separate audits, one from the General Accounting Office in April 1986, Office of the Inspector General in May 1990, and the Office of Management and Budget in August 1990, the Forest Service was directed to implement a Transaction Evidence Appraisal (TEA) system. By implementing TEA, the Forest Service would bring advertised rates closer to the actually bid rates thus assuring the government receiving fair market value for timber removed from National Forest lands. The region’s TEA system was developed and tested in 1992-3, and adopted for use in 1994. The TEA model used in Region 6 is Oracle based and designed to run on an IBM or compatible pc. It compares sales sold in the previous four quarters (base period) that had a total advertised sale value greater than $2,000.00 with the subject sale being appraised. Adjustments are made to reflect changes in market conditions using Western Wood Products Association (WWPA) indices. Adjustments are also made for differences in unusual requirements, wood quality, and operational costs between the comparable sales sold in the base period and the subject sale. TEA predicts a high bid with an advertised rate derived by applying a competition or roll-back factor. Chapter 2. Development of Appraisal Data. a. Appraisal Zones. Forests in Region 6 are divided into the following appraisal zones based upon similar timber types offered for sale and proximity to the same markets: R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 4 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK Appraisal Zone 1 2 3 4 5 6 Forests Mt. Hood, Gifford Pinchot, Olympic, Mt. Baker-Snoqualmie Wenatchee, Okanogan, Colville Umatilla, Malheur, Ochoco, WallowaWhitman Deschutes, Fremont, Winema Siuslaw, Willamette Umpqua, Siskiyou, Rogue River Appraisal zones can be combined in periods of few sale offerings to provide a sufficient number of sales to capture market variation in calculating updated Base Period Prices and Zone Average Cost Centers. b. Base Period. As used in Region 6, it comprises the preceding four quarters. The Base Period may be lengthened to include additional sales or shortened to exclude some sales in response to a rapidly changing market or during periods of few sale offerings. c. Base Period Price (BPP). For sawtimber, a weighted average is calculated using an adjusted high bid of each species sold during the base period. An adjusted high bid is calculated for each species using log price reporting service data to allocate the over-bid based upon relational values between species. The high bid subtracts the road costs and adds the adjustment to bring nonsawtimber up to base rates. This is brought forward to the end of the base period by comparing WWPA indices at bid date with indices at the end of the base period. Only sales with a total advertised value of $2,000 or greater are included in calculating Base Period Prices. The sales also represent an arms length transaction in which both parties are willing participants, and are free to enter into the agreement without coercion or requirement. Any override of the Base Period Price by the appraiser shall be documented in the Timber Sale Appraisal Report. For nonsawtimber, delivered chip prices are converted from $/ton to $/CCF and entered into the TEA input screen as a BPP/CCF override. Refer to the Region 6 Base Period Price Calculation Information Guide for specific calculation processes. d. Competition Factor. Also called Roll-Back Factor. The purpose of the competition factor is to encourage competition, reflect differences in sale conditions that may not be reflected in the appraisal, and to allow for the risk that timber volumes, R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 5 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK sale characteristics, or values may have been mis-stated in the appraisal. Default competition factors are in the TEA.COST file and at the bottom of page one in the Appraisal Update. In the Lakeview Sustained Yield Unit, or in areas which typically have one bidder, insert 5% in the TEA program input screen to override the default factor. If the regional office determines a change in the default competition factor is needed, the regional office will update the TEA.COST file and send out a notice of the change. The rationale for any change to the default competition factor by the user shall be documented in the Timber Sale Appraisal Report, including the change to 5% in those areas which typically have only one bidder. e. Adjustment for Sale Characteristics. The following costs for various sale characteristics are developed for use in timber sale appraisals: (1) Unusual Adjustment. Any non-typical cost, or one time or one sale use cost, as required in the NEPA document. Having an input space for non-typical costs allows their inclusion without skewing or adding bias or variation to the data in the regional database and zone average costs. Some examples of non-typical costs could be treatment of stumps with borax, flush cutting of stumps, directionally felling of at least 20% of the total sale volume, rigging more than one intermediate support in a multi-span unit, swing units, truck assist for log haul, etc. Calculation of this adjustment is included in the Timber Sale Appraisal Report (see FSH 2409.18, 48). (2) Rapid Market Adjustment (RMA). Reference is made to the Rapid Market Adjustment User Guide. The Rapid Market Adjustment is used to correct for market changes up to the time of the appraisal. TEA currently uses the difference between the WWPA Base Period Index and Current Index as a market adjustment in the appraisal. WWPA is typically 4-6 weeks behind the current market. The RMA is an attempt to further adjust the appraisal to reflect up to date market conditions at the time of running the appraisal. Region 6 will use Random Lengths to track monthly changes in the prices of representative products as to adjust base period prices of appraisal species or groups in TEA. The WO has established a change of more than $10.00 as the threshold for inclusion of the adjustment. R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 6 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK (3) Product Quality Adjustment (PQA). Reference is made to the Region 6 Product Quality Adjustment User Guide. The PQA adjustment is calculated via the PQA excel spreadsheet to arrive at a wood quality adjustment for each species or appraisal group in the sale. Delivered log prices are used as the basis of the adjustment which are updated monthly. NATCRS dib classes from each log stock table are divided into groups that correspond to representative products as described by industrial grade definitions. A “base” dia/dib range is established in which the other dia/dib are compared against. A weighted average adjustment is calculated and entered into the TEA input screen as the Product Quality Adj for the species or appraisal group. (4) Zone Average Operational Costs. Costs including stump to truck, haul and scale (scaling cost to be included with scale sales), road maintenance, contractual which includes erosion control and brush disposal, and development and other which includes temporary roads and other temporary developments. A weighted average by appraisal zone is calculated from sales sold during the previous four quarters. Only sales which represent an arms length transaction in which both parties are willing participants, and are free to enter into the agreement without coercion or requirement, are included in calculating Zone Average Operational Costs. (5) Sale Operational Costs. Operational costs calculated for the sale being appraised including stump to truck, haul and scale (scaling cost to be included with scale sales), road maintenance, contractual which includes erosion control, brush disposal and other required work, development and other which includes temporary roads and other temporary developments, and road construction and reconstruction costs. Stump to truck and haul costs are calculated using available regional software located on the Region 6 Forest Products website (http://www.fs.fed.us/r6/nr/fp), or other empirical costing methods which result in a credible and representative cost of the work to be performed. Typical requirements from the NEPA document are costed and included. Non-typical, one time use, or other requirements of the NEPA decisions that are not used or infrequently used by other forest in the apprasial zone shall be included as an Unusual Adjustment. Sale operational costs are compared against the zone average operational costs to arrive at adjustments for use in the appraisal. R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 7 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK The activities in each operational cost center, costed for in the available software programs, are as follows: 1. Stump to Truck – mobilization of equipment, personnel, and support vehicles to and from the sale area, and between harvest units, maintenace and upkeep, gas, oil, insurance, health and retirement benefits, any additional work done by purchaser to maximize the efficiency and profitability of their operations (i.e., marking of trees in a desgnation by description unit, or to face the operator in mechanical harvesting corridors, pre-rigging of tailhold trees, selecting trees for specific high value products such as poles, houselogs, etc.), pollution control items, falling, bucking, skidding, loading logs onto trucks, traffic/safety signs and flaggers for traffic control, piling of landings, and purchaser’s overhead for supervision of their operations. 2. Haul/Scale – cost for transporting logs via log truck from the landing to the mill and returning to the sale area, including any delay in unloading at mill, and wait time at the logging site to be reloaded, costs for truck and driver including maintenace and upkeep, gas, oil, insurance, health and retirement benefits, etc. On scale sales, the average contract scale cost per CCF as provided by the regional office is added to the haul cost to arrive at a combined cost for the sale. 3. Road Maintenance - maintenance of roads included in the timber sale contract and includes the mobilization of equipment, personnel and support vehicles to and from the sale area, including maintenace and upkeep, gas, oil, insurance, health and retirement benefits, and purchaser’s overhead for supervision of their operations. 4. Contractually Required Work - mobilization of equipment, personnel and support vehicles to and from the sale area, including maintenace and upkeep, gas, oil, insurance, health and retirement benefits, purchaser’s overhead for supervision of their operations, seed costs for erosion control, hay bales and/or straw mats to minimize soil displacement and movement during operations, and slash disposal. 5. Development and Other - construction, closure or obliteration as required in the NEPA decision, of temporary improvements, including temporary roads. These are typically minor and low cost in nature. Includes mobilization of equipment, personnel and support vehicles to and from the sale area, maintenace and upkeep, gas, oil, insurance, health and retirement benefits, purchaser’s overhead for supervision of their operations. R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 8 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK f. Appraising Non-sawtimber/Fiber/Chips (Product 08 Material), and Special Cull and Utility Logs. Because of the volatility and rapidity of change in the chip market, the advertised rates for this material will be calculated as a residual value (RV) price. Local delivered log prices ($/MBF or $/ton) for this material are converted to $/CCF and entered into the TEA input screen as an override under BPP/CCF. The Unusual Adjustment and Sale Operational Costs are subtracted to arrive at a predicted bid rate via the RV method. The predicted bid rate is reduced by the competition factor, which is compared to base rates, adjusted to base rates if necessary, to arrive at an advertised rate. Refer to the Product Quality Adjustment User Guide for more information on how to appraise this material using TEA. g. Appraising Fire Damaged Trees. Trees killed or damaged by fire typically have a lesser value than green unburned trees of the same species, size and quality. Advertised rates should be determined using the residual value method. Obtain delivered logs prices for burned trees from at least two mills likely to receive the material to verify the accuracy of prices. Convert the $/MBF price to $/CCF by calculating conversion factors based upon MBF and CCF volumes from the cruise. Calculate the weighted average delivered log price per CCF for each appraisal species or group and enter into the TEA input screen as an override under BPP/CCF. As needed, combine species into appraisal groups as described in ”i. Combining Species”. For sawtimber, code the product of each burned appraisal or species group as “08” and enter “0” for the PQA adjustment. For nonsawtimber, lump all species into one appraisal group and select a species code that is different from the sawtimber, and code the product of the nonsawtimber species group as “08” and enter “0” for the PQA adjustment. Coding both the sawtimber and nonsawtimber of each appraisal or species group as “08” and entering “0” for the PQA adjustment forces the TEA program to calculate advertised rates in the residual value method. The sawtimber component will be sold as sawtimber and listed in A(T)2 as sawtimber. Sell fire killed trees only on a flat rate basis. h. Appraising Species That Lack a Base Period Price. Species without a Base Period Price in the TEA.COST file fall into one of the following categories; 1) the species has not been sold in the past 12 months and thus would not be in the database used for calculating Base Period Prices, or 2) the species volume has been so minor that it was combined with another species. Use one of the following two methods to determine a Base Period Price for use in TEA: R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 9 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK (1) From Adjacent Appraisal Zone. Use the Base Period Price from an adjacent appraisal zone for the same species. Knowledge of timber size and quality in adjacent appraisal zones is essential to assure proper application of the Base Period Price. Enter the Base Period Price into the TEA input screen under BPP/CCF. Enter mbf and ccf volumes, and calculate a wood quality adjustment using the PQA spreadsheet. Enter under Product Quality Adj. (2) From Delivered Log Prices Calculate a Base Period Price from delivered log prices. Contact the local mill, or the mill likely to receive the logs, and obtain the range of prices based upon size and/or grade. Using NATCRS volumes by diameter, calculate a weighted average delivered log price for the range of diameters present. Enter the weighted average delivered log price into the TEA input screen under BPP/CCF. Enter mbf and ccf volumes, “08” for product, and “0” for Product Quality Adj. i. Combining Species. Use the 25% rule in combining species into appraisal groups. Generally, species with volume less than 25% of the total net volume, and which are manufactured into similar products and used interchangeably in markets, can be combined with other species. Typical appraisal groups are as follows: Douglas-fir, Larch Grand Fir, White Fir, Hemlock, Noble Fir, Pacific Silver Fir Lodgepole pine, Alpine Fir, Engelmann Spruce Ponderosa Pine, Sugar Pine, Western White Pine, Jeffery Pine Forests in each appraisal zone can also form agreements on species to be combined into appraisal groups. When combining species, it is necessary to calculate a weighted average Base Period Price. Following the instructions in the Product Quality Adjustment spreadsheet under the “Combine” tab will automatically calculate a weighted average Base Period Price. Enter the weighted average BPP as an override in the TEA input screen under BPP/CCF for the group. Small volumes (less than 25% of total volume) of larger diameter or higher quality trees, typically Western Red Cedar and peeler grades of Douglas-fir and larger diameter Ponderosa Pine, Sugar Pine, Western White Pine with clear faces, R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 10 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK can be left as a separate appraisal group. These logs usually have higher values and can increase the total value of the sale while helping to reduce any deficits present. Sawtimber and nonsawtimber are separate products and shall be sold separately. These are not to be combined together into one appraisal group, product or contract species. Nonsawtimber from several species can be combined into one appraisal group under the species code of the majority species for appraisal and contract purposes. j. Fixed Rate Species. Fixed Rate Species are those species or appraisal groups which have contract rates that are the same as advertised rates. No bid premium is added to fixed rate species or appraisal groups. Refer to the following example for the use of fixed rates on the bid form, and for calculating contract (proportioned) rates following bidding: Sample Sale: Species Species 1 Species 2 Species 3 Fixed Rate (Y/N) N N Y Total Volume (CCF) 300 200 100 600CCF Advertised Rate $200.00 $300.00 $400.00 Bid Form, Weighted Average Sales – the weighted average advertised rate shown on the appraisal summary for all three species needs to be recalculated for use on the bid form to exclude the volume and value of the fixed rate species. Weighted average advertised rate from appraisal summary ((300CCF x $200) + (200CCF x $300) + (100CCF x $400)) / 600CCF = $266.67/CCF Recalculated weighted average advertised rate for use on the Bid Form ((300CCF x $200) + (200CCF x $300)) / 500CCF = $240.00/CCF In block 14j on the bid form, $240.00/CCF would be entered as the Minimum Acceptable Weighted Average Rate. In an oral auction sale, minimum bids received needs to be at least $240.00/CCF. The high bidder on a sealed bid sale R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 11 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK without oral auction would be the one whose bid is the highest above $240.00/CCF. Proportioned Rates - if the high bid was $288.00/CCF, contract rates would be calculated as follows: Bid Increase Factor (see FSH 2409.18, 55.2) ($288 / $240) = 1.2000 Contract Rates - Species 1 Species 2 Species 3 $200 x 1.2000 = $240.00/CCF $300 x 1.2000 = $360.00/CCF $400.00/CCF Checking the math – (500CCF x $288) + (400CCF x $100) = $184,000 (300CCF x $240) + (200CCF x $360) + (100CCF x $400) = $184,000 Totals may differ by a few cents or a few dollars due to rounding. The process is the same for total value sales. TIM calculates these values for use in various documents in the timber sale package. k. Flat Rate Species. Flat rate species are those species or appraisal groups which include bid premium, but are NOT escalated. Sales with contract lengths of one year or less can be sold on a flat rate basis (FSH 2409.18, 53). l. Scaling. A cost of scaling logs in scale sales will be included in the Haul/Scale cost center in the appraisal. The cost is an average, calculated from the hourly rates of all included scaling bureaus contained in the scaling contract, assumes a 7.7CCF average load and adds 25% overhead. The appraiser will input the average cost into the appraisal, and not locally experienced scale costs. The highest contract scale cost will be entered into the sample contract. The actual cost of scaling is determined post award when the scaling bureau is assigned to the sale. The scaling cost is issued by the regional office via the Appraisal Update. m. Inappropriate Work Included in the Appraisal and Timber Sale Contract. The Purchaser is responsible for completing only the work necessary to remove included timber. Do not include KV Other type work in the contract as the responsibility of the purchaser to complete. Some R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 12 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK examples of inappropriate work included in the appraisal and timber sale contract are the closing of existing roads in the sale area for watershed improvement that do not access project treatment areas, topping of wildlife trees, placement of material in streams for habitat improvement, replacing culverts with more costly ones that improve fish passage, maintenance of roads to a higher standard than that necessary to remove included timber, etc. Appropriated funds or other fund sources are to be used for the completion of this post-sale work. Building of roads to a higher standard than that necessary to remove included timber can be included in the sale if it results in a decrease in log haul and road maintenance costs, or if appropriated or other funds are contributed to the sale for the construction to the higher standard (see 36 CFR 223.38, FSH 2409.18, 43.3, and C(T)5.201# Cooperative Construction). n. Analysis of Advertised Rates. Analysis of advertised rates prior to advertising the sale is necessary to assure rates reflect current market conditions, and to reduce the possibility of a no bid sale. As part of the analysis, assure costs entered into the TEA program input screen are correct. Corroborate they were calculated correctly and accurately represent the work to be performed. Review indirect rates in the BD and KV plans to assure they are reasonable, or do not exceed published regional and forest supplements. Assure only activities required for essential reforestation are included in base rates. Salvage sales do not automatically require essential reforestation. A review of Base Period Prices, previous number of bidders, operational costs, etc., may be necessary to have advertised rates approximate fair market value. Either of the following two methods can be used in the analysis of advertised rates: (1) Compare with Other Sales. Compare the sale to be advertised with a recently sold sale that has similar timber types, product percentages, and contract requirements. In a competitive market with more than one bidder, the high bid of the recently sold sale should be close to the predicted bid rate on the sale to be advertised. (2) Delivered Log Prices. Use delivered log prices in a residual value type appraisal. Using the Species Group tables in the PQA program, determine the weighted average delivered log price per CCF for each appraisal species or group. Subtract out the sale operational costs, deposits for BD and road maintenance, and the advertised rate from the appraisal summary. If the result is positive, or close to zero, then advertised rates approximate fair value at the time of the appraisal. If the result is R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 13 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK highly negative, then the sale is likely to be no bid. If the result is highly positive, advertised rates are too low and do not approximate the fair market value. Adjust advertised rates by species or appraisal group as needed by placing a plus (+) or minus (-) dollar amount in the Unusual Adjustment field on the TEA program input screen. A plus (+) dollar amount will increase advertised rates; minus (-) will decrease advertised rates. Chapter 3. 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 R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 14 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK 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. Chapter 4. Administrative Use Sales. In disposing of material without charge, use of either the FS-2400-3T, -6, -6T contracts is required to assure adequate resource protection (refer to FSH 2409.18, 83). Chapter 5. Timber Information Manager (TIM), Timber Sale Documents, and the Internet. a. TIM-Produced Documents for the Timber Sale Package. TIM is an oracle-based program designed to automate the business processes associated with producing a timber sale project; from Gate 1 through Gate 6. Information on the project is entered only once and is carried forward through all documents. TIM will be used in preparing timber sale packages. Forests can supplement TIM produced documents with other needed sale specific data not required for input into TIM (refer to the Region 6 Supplement to Timber Information Manager (TIM) User Guide). The Region 6 Forest Products website (http://www.fs.fed.us/r6/nr/fp) contains approved forms that can be used to supplement TIM. Current Forest versions of timber sale documents will no longer be used, except as noted in the Region 6 Supplement to Timber Information Manager (TIM) User Guide. b. TEA Program and TIM. The TEA program creates a file for the automatic loading of appraisal information into TIM. As part of the site configuration done by the TIM Data Manager, the default file path is entered and will direct the program to the location of the appraisal transfer file. The file contains data needed by TIM for use in the bid form, prospectus and sample contract. Refer to the Region 6 Transaction Evidence Appraisal User Guide for more information. R6/PNW AMENDMENT FSH-2409.22-2001-1 EFFECTIVE DATE: 4/12/2001 DURATION: Effective until superseded or removed 2409.22 Page 15 of 15 FSH 2409.22 -–TIMBER APPRAISAL HANDBOOK c. Internet Based Sale Information Forests are responsible for maintaining and updating their forest websites containing timber sale information. Information on new sale offerings should be on the websites concurrent with any hardcopy mailing of sale information packets to interested parties. Data from previous sales, and the results from bid openings, can continue to be shown for up to one year from the bid opening to meet customer needs for the information. Timber sale information can be sent to e-businesses with websites listing federal timber sale information with the condition being the information is available at no cost to users of the sites. Refer to the Pre-sale and Post Bid Distribution of Timber Sale Information Guide for more information.