FOREST SERVICE HANDBOOK PACIFIC NORTHWEST REGION (REGION 6) PORTLAND, OREGON

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2409.22
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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Duration: Effective until superseded or removed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Superseded Document(s):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DURATION: Effective until superseded or removed
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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
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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:
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EFFECTIVE DATE: 4/12/2001
DURATION: Effective until superseded or removed
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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,
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EFFECTIVE DATE: 4/12/2001
DURATION: Effective until superseded or removed
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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.
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EFFECTIVE DATE: 4/12/2001
DURATION: Effective until superseded or removed
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(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
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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
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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:
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EFFECTIVE DATE: 4/12/2001
DURATION: Effective until superseded or removed
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(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,
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DURATION: Effective until superseded or removed
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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
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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
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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
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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
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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
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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.
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