A005_IRTC Example_DxP Contract.pdf

Anil's Revision

Page: 1 Contract 2400-13,(9/04)

Colville Newport Pacific N-West

12/31/2026

INTEGRATED RESOURCE CONTRACT

U.S. DEPARTMENT OF AGRICULTURE

FOREST SERVICE

Unless provided otherwise herein, Forest Service agrees to sell and permit Contractor to cut and remove Included Timber and Contractor agrees to purchase, cut, and remove Included Timber and complete required stewardship projects.

IN WITNESS WHEREOF, the parties hereto have executed this contract as of the award date.

(Applicable to Contracts with Measurement after Harvest)

National Forest

Ranger District Region Contract Number

Award Date Termination Date

Name of Contractor

Contract Name

IRTC

The parties to this contract are The United States of America, acting through the Forest Service, United States Department of Agriculture, hereinafter called Forest Service, and hereinafter called Contractor.

UNITED STATES OF AMERICA

(Name)

Two Witnesses: 2/

I, _____________________________________________ , certify that I am the _________________________________________

Secretary of the corporation named as Contractor herein; that _________________________________________________________ who signed this contract on behalf of Contractor, was then ___________________________________________________________ of the corporation; that the contract was duly signed for and in behalf of the corporation by authority of its governing body, and is within the scope of its corporate powers.

CORPORATE

SEAL 5/

4/

(Contractor)(Address)

(Name)

(Address)

Contracting Officer

(Title)

(Title)

3/

(Business Address)

By:

By:

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Contract 2400-13,(9/04)

INSTRUCTIONS:

1/ If Contractor is a corporation, state a "corporation organized and existing under the laws of the State of ______________________" and specify the State; if Contractor is a partnership, state a "partnership consisting of _______________________________" and specify the names of each partner; and if Contractor is a sole proprietor doing business under an assumed name, state "(n) individual doing business under the name of _____________________________________ City of _____________________________, State of

2/ The signatures and addresses of two witnesses are required if Contractor is other than a corporation.

3/ If Contractor is a co-partnership, the signatures should be: XYZ Company, by John Doe, a member of the firm. If Contractor is a corporation, form of signature should be: XYZ Company, by John Doe, President (or other officer or agent) and the seal of the corporation must be impressed or indicated.

4/ The certificate must be completed if Contractor is a corporation.

5/ For companies incorporated in States that require a corporation seal, if the corporation has no corporate seal that fact shall be stated, in which case a scroll or adhesive seal shall follow the corporate name.

Contract Name: IRTC Contract No:

Subcontractor Certification Regarding Debarment, Suspension, Ineligibility, and Voluntary Exclusion

Contract Name: __________________________ National Forest: __________________________

The prospective subcontractor (participants in lower tier covered transactions) certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this contract by any Federal department or agency.

Where the prospective subcontractor is unable to certify to any of the statements in this certification, such prospective subcontractor shall attach an explanation to this proposal.

Name of Subcontractor: __________________________ Business Address: __________________________

Date Signature

1/ It is the Contractor's responsibility to have subcontractors complete this certification and to maintain a file of completed certifications. This certification does not need to be returned to the Forest Service, except at the written request of the Contracting Officer.

EXAMPLE 1/

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A.0 - SPECIFIC CONDITIONS. The following conditions apply to the indicated portions.

A.1 - Location and Area, applicable to B.1

A.2 - Volume Estimate and Utilization Standards, applicable to C.1, C.2, C.4, and G.4

A.3- Timber Designations, applicable to C.3; acres are approximate:

Number Acres

Incompletely Marked Timber (C.3.6)

Clearcutting Units (C.3.1) Specified Road Clearing (C.3.2)

Overstory Removal Units (C.3.3)

Understory Removal Units (C.3.4)

Individual Trees (C.3.5)

This Contract Area of 7459 acres more or less is located in: Township 35 North, Range 42 East, Sections 1, 2, 3, 4, 10, 11 & 12;

Township 35 North, Range 43 East, Sections 6 & 7; Township 36 North, Range 42 East, Sections 22, 23, 24, 25, 26, 27, 33, 34, 35 & 36;

Township 36 North, Range 43 East, Sections 30 & 31, W.M., Surveyed, Pend Oreille County, Washington

Species Product Estimated Quantity

Unit of Measure

Diameter Breast High

(d.b.h.)

Number of

Minimum Pieces per Tree Length

Diameter Inside Bark at

Small End

Minimum Specifications Merchantable Tree Piece Required to be Removed

Douglas-fir and Other Coniferous Species

Douglas-fir and Other Coniferous Species w/topwood, excluding Western Red Cedar

Sawtimber

Grn Bio Cv

104,245.00

24,063.00

Ton

Ton

7.0

5.0

5.0

3.0

N/A

1,806

All Species Grn Bio Cv unestimated Ton N/A 1 N/A N/A N/A

Total Quantity

Timber Subject to Agreement under K-C.1.1#

128,308.00 Ton

Contract Name: IRTC Contract No:

Net Scale in % of

Gross Scale

(inches) (feet) (inches) 1/

1/ Enter Merchantability Factor (Merch. Factor) or Net Scale in % of Gross Scale, whichever is appropriate.IR

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A.4 - Timber Payment Rates, applicable to D.1 and E.0

A.4.1 - Escalated Rates, applicable for Species and Products to be Paid for at Rates Escalated under D.2

Contract Name: IRTC Contract No:

A.4.2 - Flat Rates, applicable for Species and Products to be Paid for at Flat Rates

For purposes of convenience in collection and bookkeeping, Bid Rates stated in A.4 include payment of deposits for contract area betterment required pursuant to 16 USC 576b. Such deposits are not included as Required Deposits defined hereunder.

Species Product Unit of

Measure Base

Advertised

Bid Premium

Bid (Tentative)

Required Deposits

Slash Disposal

Base Index

Rates per Unit of Measure

Not Applicable

Douglas-fir and Other Coniferous Species Douglas-fir and Other Coniferous Species w/topwood, excluding Western Red Cedar

Sawtimber

Grn Bio Cv

Ton

Ton

.30

.30

17.73

17.73

2.73

2.73

Species Product Unit of

Measure Base

Advertised

Bid Premium

Bid (Flat)

Rates per Unit of Measure Required Deposits

Slash Disposal

All Species Grn Bio Cv Ton .00

Timber Subject to Agreement under K-C.1.1#IR

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Contract Name: IRTC Contract No:

A.4.3 - Stewardship Credits, applicable E.2.2 and K-G.9#

Slashing (Whipfelling)

Mechanical Piling

Noxious Weed Treatment, Accessible by Highway Vechicles

Snag Creation

Acres

Acres

Acres

Each

488.00

700.00

130.00

54.00

Project Number Project Description Units of Measure Quantity

Bid Rate

Total Credits

Mandatory Stewardship Projects

Slashing (Whipfelling)

Mechanical Piling

Machine Fuelbreak and Fireline Construction

Acres

Acres

Miles

487.00

883.00

.50

Priority Project Description Units of Measure Quantity

Bid Rate

Total Credits

Optional Stewardship Projects

Project Number

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The following definitions are established for the terms used in A.4:

Base Rates are the lowest rates of payment for timber that are authorized by this contract. Base Rates remain constant throughout the life of this contract and are not subject to change by rate redetermination, except for reduction under D.3.1, D.3.2, or D.3.3.

Advertised Rates are the minimum acceptable Bid Rates for timber, exclusive of Required Deposits. These rates are those indicated by appraisal, with a cost allowance made for construction of Specified Roads listed in A.7, but are never less than Base Rates.

Bid Premium Rates are the amounts by which Contractor's bid is in excess of Advertised Rates. The Bid Premium Rates are constant during this contract, except as provided in D.3.1, D.3.2, and D.3.3.

Bid Rates are the rates bid by Contractor (exclusive of Required Deposits for slash disposal, road maintenance, and contract scaling) and are the sum of Advertised Rates and Bid Premium Rates. Until a rate redetermination becomes effective, the Bid Rate for species and products in A.4.1 is the Tentative Rate that is subject to quarterly adjustment under D.2; for species and products in A.4.2, the Bid Rate is the Flat Rate.

Required Deposits are deposits that Contractor may be required to pay for slash disposal (16 USC 490), road maintenance (16 USC 537), and contract scaling (1994 Appropriations Act). Required Deposits may be adjusted as part of a rate redetermination or a Contract Term Extension. The table shows only Required Deposits for slash disposal; road maintenance deposits, if any, are given in K-F.3.2#; and contract scaling deposits, if any, are given in K-G.8.1.6#.

Base Index is the specified average of the lumber or other product selling value index used as the basis for computing adjustment in rates for variance in product selling value, as provided in D.2.

Species Index Name and Date

All All 12

A.6 - High Stumps, applicable to G.4.1.2

Contract Name: IRTC Contract No:

Not Applicable

Maximum Stump Height * (inches)Species Product

A.5 - Indices Used in Quarterly Adjustment, applicable to D.2

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Contract Name: IRTC Contract No:

A.7 - Specified Roads, applicable to F.2

2712181

2712186

2712203C

2712000

2700116

2700120

2700300

2700301

2700320

2700500

2700520

2712170

2712175

2712188

2712196

2712198

2712203

2712206

2712210

2712212

2700422

2712000

2712000

2712181 (C) (segment 0 to 1.42)

2712186 (C) (segment 0 to 1.08)

2712203C (C) (segment 0 to 1.28)

TACOMA DIVIDE (C) (segment 0 to 2.31)

2700116 (R) (segment 0 to .12)

2700120 (R) (segment 0 to .17)

2700300 (R) (segment 0 to 6.9)

2700301 (R) (segment 0 to .53)

2700320 (R) (segment 0 to 2.19)

2700500 (R) (segment 0 to 2.5)

2700520 (R) (segment 0 to .7)

2712170 (R) (segment 0 to .7)

2712175 (R) (segment 0 to .09)

2712188 (R) (segment 0 to .38)

2712196 (R) (segment 0 to .4)

2712198 (R) (segment 0 to .51)

2712203 (R) (segment 0 to 1.48)

2712206 (R) (segment 0 to .3)

2712210 (R) (segment 0 to .35)

2712212 (R) (segment 0 to 3.03)

LITTLE RUBY CREEK (R)

(segment 0 to 1.66)

TACOMA DIVIDE (R) (segment .1 to .97)

TACOMA DIVIDE (R) (segment

2.57 to 5.49)

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

Single Lane - 10 mph

1.42 / 2.29

1.08 / 1.74

1.28 / 2.06

2.31 / 3.72

.12 / .19

.17 / .27

6.9 / 11.1

.53 / .85

2.19 / 3.52

2.5 / 4.02

.7 / 1.13

.7 / 1.13

.09 / .14

.38 / .61

.4 / .64

.51 / .82

1.48 / 2.38

.3 / .48

.35 / .56

3.03 / 4.88

1.66 / 2.67

.87 / 1.4

2.92 / 4.7

33-37 03/04/2019

38-41 03/04/2019

23 03/04/2019

24-32 03/04/2019

19 03/04/2019

19 03/04/2019

19 03/04/2019

19 03/04/2019

19 03/04/2019

20 03/04/2019

20 03/04/2019

21 03/04/2019

21 03/04/2019

22 03/04/2019

22 03/04/2019

22 03/04/2019

22 03/04/2019

23 03/04/2019

23 03/04/2019

23 03/04/2019

20 03/04/2019

21 03/04/2019

21 03/04/2019

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

FS

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Purchaser BC

Name

Design

Class

Appro.

Length

(mi./km.)

Sheet Numbers and

Approval Date Survey Design

Construction

Staking

Performance Responsibility Project

1/Road No.

Indicate timing, i.e., before clearing (BC) or after clearing (AC). Applicable to F.2.1.2.1/

Name and Date of Governing Road Specifications: FP-14 Federal Highway Administration Standard Specifications for Construction of Roads and Bridges on Federal Highway Projects, as amended and supplemented (English)

Road No. Road Name Type of Work Completion

Date

A.8 - Forest Service Engineering Completion Schedule, applicable to F.2.1

Not Applicable

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A.15 - Termination Date, applicable to 1.2

A.14 - Contractor's Obligation per Operations Fire, applicable to H.4.1

Initial Fire Supression, applicable to H.3 Within 5 road miles

Fire Suppression Reinforcement, applicable to H.3.1.2 and H.3.1.3 Within 100 road miles

A.13 - Contractor's Responsibility to Furnish Crews and Equipment for:

April 01 to October 31 , inclusive

A.12 - Fire Precautionary Period, applicable to H.2

December 31, 2026

Contract Name: IRTC Contract No:

All All 20 ALL ALL 6

A.11 - Minimum Scaling Volumes, applicable to G.8.1 Minimum volume for Continuous Scaling Services in two-week period N/A Ton per scaler

A.9 - Scaling Instructions and Specifications, applicable to G.8

Name and Date of Governing Instructions: FSH 2409.11a, National Forest Cubic Log Scaling Handbook, as amended and supplemented

Species Product

Maximum Scaling Length (feet)

Trim Allowance Diameter

Range (inches)

Length Range (feet)

Trim Allowance

(inches)

Species Product

Unit of Measure Site and Geographic Location Method

Standard Estimated Cost per Unit $

All All Ton Contractor shall request an alternate scaling site per G.8.1.1 which meets the requirements contained in G.8.1.4

Total (100%) Weight Scale

.00

A.10 - Scaling Services, applicable to G.8.1

Scaling Specifications

Maximum Amount: $ $300,000.00

Minimum volume for Intermittent Scaling Services N/A Ton on a N/A basis

A.16 - Normal Operating Season, applicable to G.3.1, G.6.6, 1.2.1 and J.3

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K-C.1.1#

K-C.3#

K-C.3.5.2#

K-C.3.5.5#

K-C.3.5.7#

K-D.3.5#

K-D.4.7#

K-E.2.1.5

K-E.2.2

K-E.4

K-F.1.0.1#

K-F.1.2#

K-F.1.3#

K-F.2.1.3#

K-F.2.2.1#

K-F.3.1#

K-F.3.2#

K-G.2.2#

K-G.2.4#

First Period: June 01 to October 31 , inclusive

A.17 - Performance Bond Amount, applicable to J.1

A.21 - Inapplicable Provisions

Contract Name: IRTC Contract No:

Second Period: December 01 to March 01 , inclusive

TIMBER SUBJECT TO AGREEMENT (09/2004)

RESERVE TREES (09/2004)

DESIGNATION BY SPECIES AND DIAMETER (09/2004)

DESIGNATION BY PRESCRIPTION (05/2015)

INDIVIDUAL TREE DESIGNATION (OPTION 1) (06/2008)

SCHEDULED RATE REDETERMINATION (09/2004)

ABNORMAL DELAY (05/2005)

DEPOSITS WHEN PAYMENT GUARANTEED (05/2010)

CHANGES IN STEWARDSHIP CREDITS (06/2008)

PAYMENTS NOT RECEIVED (08/2012)

TEMPORARY ROAD AND LANDING CONSTRUCTION (OPTION 1) (06/2010)

USE OF ROADS BY CONTRACTOR (09/2004)

ROAD COMPLETION DATE (09/2004)

DEPOSIT FOR RECONSTRUCTION ENGINEERING SERVICES (09/2004)

MATERIAL SOURCES (09/2004)

ROAD MAINTENANCE REQUIREMENTS (09/2004)

ROAD MAINTENANCE DEPOSIT SCHEDULE (08/2012)

PROTECTION OF IMPROVEMENTS (05/2008)

SITE SPECIFIC SPECIAL PROTECTION MEASURES (09/2004)

The following listed provisions - are hereby made inapplicable. (Instructions: List by reference number and title.)

E.2.1.5

E.4

I.2.1

I.2.1.2

I.6.4

DEPOSITS WHEN PAYMENT GUARANTEED

PAYMENTS NOT RECEIVED

CONTRACT TERM ADJUSTMENT

MARKET-RELATED CONTRACT TERM ADDITION

DEBARMENT AND SUSPENSION CERTIFICATION

A.18 - Downpayment, applicable to E.2.1.1

Downpayment Amount: Not Applicable

Initial Payment:

Additional Payment:

N/A

A.19 - Periodic Payment Amount, applicable to E.2.1.3

Periodic Payment Determination Date Amount N/A

N/A N/A

A.20 - Market-Related Contract Term Addition Producer Price Index, applicable to 1.2.1.2

Index Name: Softwood Lumber Index Number: 0811

A.22 - List of Special Provisions in Part K

The following listed special provisions are attached to and made a part of this contract. Provisions with reference numbers followed by # contain blanks into which data have been entered for this contract. (Instructions: List by reference number, title, and date.)

Performance Bond Amount:

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K-G.3.1.5#

K-G.3.2#

K-G.3.6#

K-G.4.0.5

K-G.4.1#

K-G.4.2#

K-G.6.0#

K-G.6.2#

K-G.7

K-G.7.4.2#

K-G.8.1.5

K-G.8.4

K-G.8.4.0

K-G.8.5.1

K-G.9#

K-H.1

K-H.2

K-H.2.0.1

K-H.2.2

K-H.3.1

K-I.1.0

K-I.2.1

K-I.2.1.2

K-I.3.1#

K-I.6.4

K-I.6.8# (Option 1)

Contract Name: IRTC Contract No:

PROJECT OPERATION SCHEDULE (05/2005)

PROTECTION OF RESERVE TREES (09/2004)

ACCEPTANCE OF WORK (03/2018)

ALTERNATE REMOVAL OF INCLUDED TIMBER (05/2005)

SPECIFIC REQUIREMENTS (05/2005)

YARDING/SKIDDING REQUIREMENTS (05/2005)

EROSION CONTROL AND SOIL TREATMENT BY CONTRACTOR (03/2017)

SITE SPECIFIC WETLANDS PROTECTION MEASURES (09/2004)

SLASH DISPOSAL (03/2017)

SLASH TREATMENT REQUIREMENTS (OPTION 2) (06/2008)

THIRD PARTY SCALING SERVICES (09/2004)

USE OF PAINT BY CONTRACTOR (OPTION 1) (06/2006)

ACCOUNTABILITY (04/2014)

WEIGHT OF LOST LOADS (04/2014)

STEWARDSHIP PROJECTS (09/2004)

PLANS (05/2005)

SPECIFIC FIRE PRECAUTIONS (05/2005)

BURNING BY CONTRACTOR (06/2006)

EMERGENCY FIRE PRECAUTIONS (06/2018)

ADDITIONAL AREA OF FIRE RESPONSIBILITY (05/2005)

DISCLAIMER OF EXPRESSED OR IMPLIED WARRANTY (05/2005)

CONTRACT TERM ADJUSTMENT (07/2016)

MARKET-RELATED CONTRACT TERM ADDITION (11/2008)

CONTRACT CHANGES (OPTION 1) (05/2005)

DEBARMENT AND SUSPENSION CERTIFICATION (03/2018)

USE OF TIMBER (09/2004)

The following listed special provisions are attached to and made a part of this contract. Provisions with reference numbers followed by # contain blanks into which data have been entered for this contract. (Instructions: List by reference number, title, and date.)

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B.0—CONTRACT AREA

B.1 Contract Area Map. The boundaries of “Contract Area” and any subdivision thereof, are as shown on the attached “Contract Area Map” that is made a part hereof, and were, before contract advertisement, designated on the ground by Forest Service to meet the anticipated needs of the parties. The location of Contract Area and its approxi-mate acreage are stated in A.1. Subdivisions may be revised and additional ones may be established only by written agreement. Subdivisions or cutting units and stewardship project areas may be eliminated from Contract Area under conditions described in G.3.6. Catastrophically Damaged areas may be removed from Contract Area under I.3.2.

Where applicable, the following are also identified on Contract Area Map:

(a) Identified claims limiting Contractor’s rights under B.2;

(b) Subdivisions defined in C.3 where timber is to be Marked after date of contract advertisement;

(c) Boundaries of Clearcutting Units, Overstory Removal Units, and Understory Removal Units under C.3;

(d) Diameter limits for Overstory Removal Units and Understory Removal Units under C.3.3 and C.3.4;

(e) Areas where leave trees are Marked to be left uncut under C.3.5;

(f) Specified Roads listed in A.7;

(g) Sources of base course, surface rock, and rock riprap listed in the Schedule of Items;

(h) Roads where log hauling or use is prohibited or restricted under F.1.2;

(i) Roads and trails to be kept open under G.2.2;

(j) Improvements to be protected under G.2.2;

(k) Locations of known wildlife or plant habitat and cave resources to be protected under G.2.4;

(l) Locations of areas known to be infested with specific invasive species of concern under G.3.5;

(m) Maximum stump heights when more than one height is listed by areas in A.6 under G.4.1.2;

(n) Skidding or yarding methods specified under G.4.2;

(o) Streamcourses to be protected under G.5;

(p) Locations of meadows requiring protection under G.6.1;

(q) Locations of wetlands requiring protection under G.6.2;

(r) Locations of temporary roads to be kept open under G.6.3.1; and

(s) Other features required by Parts A through K.

B.2 Claims. Valid claims are excluded from Contract Area, except those on which timber cutting is authorized in writing by the claimant and except mining claims on which cutting is authorized by the Act of July 23, 1955 (30 USC 614). Claims that limit Contractor’s rights to operate under this contract and that Forest Service has been able to iden-tify are shown on Contract Area Map. Contractor is not obligated to operate contrary to existing claim limitations. For-est Service shall designate boundaries of claims on the ground to the extent necessary to identify Included Timber.

C.0—TIMBER SPECIFICATIONS

C.1 Included Timber. “Included Timber” consists of:

C.1.1 Standard Timber. Live and dead trees and portions thereof that meet Utilization Standards under C.2 and are designated for cutting under C.3.

C.1.2 Substandard Timber. Live and dead trees that:

(a) Do not meet Utilization Standards and

(b) Are located in Clearcutting Units or construction clearings or are otherwise designated for cutting.

C.1.3 Damaged Timber.

C.1.3.1 Damaged by Contractor. Undesignated live trees meeting Utilization Standards:

(a) Within 200 feet slope distance from centerline of roads constructed hereunder that are damaged by Contrac-tor’s construction to the extent that considerable deterioration or mortality is imminent and are designated by Forest Service for felling before the nearest road segment is Substantially Completed or

(b) That are damaged by Contractor in logging or stewardship project operations and are subsequently Marked before Contractor has completed work in the immediate area.

By agreement, such trees may be left without charge if their removal would cause undue damage or be grossly uneconomic.

C.1.3.2 Negligent or Willful Damage. Undesignated timber meeting Utilization Standards and unneces-sarily damaged or negligently or willfully cut by Contractor, if included by Contracting Officer.

C.1.3.3 Damage by Catastrophe. As provided under I.3.2, undesignated live and dead timber within Contract Area, meeting Utilization Standards, and affected by Catastrophic Damage. “Catastrophic Damage” as used hereunder is major change or damage to Included Timber on Contract Area, to Contract Area, to access to Contract Area, or a combination thereof:

(a) Caused by forces, or a combination of forces, beyond control of Contractor, occurring within a 12-month pe-riod, including, but not limited to, wind, flood, earthquake, landslide, fire, forest pest epidemic, or other major natural phenomenon and

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15 Contract 2400-13, (9/04)

(b) Affecting the value of any trees or products meeting Utilization Standards, within Contract Area and estimated to total either:

(i) More than half of the estimated timber volume stated in A.2 or

(ii) More than two hundred thousand cubic feet (2,000 CCF) or equivalent.

Catastrophic Damage does not include changes caused by forest pest epidemics or foreseeable deterioration if Included Timber was sold for salvage or pest control.

C.1.3.4 Minor Damage by Natural Causes. Undesignated trees within Contract Area and meeting Utili-zation Standards, in amounts less than specified in C.1.3.3, that become insect infested, windthrown, suffer serious damage, or die, as designated by agreement.

C.1.4 Unintentionally Cut Timber. Trees, within or immediately adjacent to Contract Area or to road con-struction or other authorized clearing outside Contract Area, not designated for cutting under C.3 but that are cut through mistake by Contractor, when included by Contracting Officer.

C.1.5 Construction Timber. Trees to be used for construction under F.1.

C.1.6 Other Material. Species or products not listed in A.2, upon written approval of Contracting Officer under D.4.1.

C.2 Utilization and Removal of Included Timber. “Utilization Standards” for trees and minimum pieces are stated in A.2. To meet minimum tree specifications, trees must equal or exceed tree diameters listed in A.2 and con-tain at least one minimum piece. Except for timber required or authorized to be left, Contractor shall fell and buck such trees and shall remove from Contract Area and present for Scaling all pieces that:

(a) Meet minimum piece standards in A.2 or

(b) Do not meet such standards, but would have qualified as part of minimum pieces if bucking lengths were var-ied to include such material.

C.3 Timber Designations. Timber designated for cutting shall be confined to Contract Area, except as provided in C.1.3.1, C.1.4, C.1.5, C.3.2, and F.1. Contract Area Map indicates subdivisions, if any, where Marking under C.3.5 is to be done after contract advertisement, except for construction clearing under C.3.2, minor changes under C.3.7, and damaged timber.

The boundaries of Clearcutting Units, Overstory Removal Units, and Understory Removal Units were plainly Marked on ground before contract advertisement and are shown on Contract Area Map. Boundary trees shall not be cut. The number of units and approximate acreage of timber designations are stated in A.3.

C.3.1 Clearcutting Units. All trees that meet Utilization Standards within “Clearcutting Units” are designated for cutting.

C.3.2 Construction Clearing. All timber is designated for cutting that is within the clearing limits of roads constructed hereunder or is in other authorized clearings. All dead or unstable live trees are designated for cutting that are sufficiently tall to reach Contractor’s landings, work areas, or the roadbed of Specified and Temporary Roads when Marked in advance of work in the immediate area. Pieces meeting Utilization Standards from such dead or un-stable live trees shall be removed, unless there is agreement that to do so could damage the road. Such designation may be revised as part of agreed changes in road location under F.2.

C.3.3 Overstory Removal Units. All trees within “Overstory Removal Units” are designated for cutting when they meet Utilization Standards and equal or exceed the diameter limits shown on Contract Area Map.

C.3.4 Understory Removal Units. All trees within “Understory Removal Units” are designated for cutting when they meet Utilization Standards and are smaller than the diameter limits shown on Contract Area Map.

C.3.5 Individual Trees. All trees to be cut, other than in the units described in C.3.1, C.3.2, C.3.3, and C.3.4, are Marked or designated by description. Trees are “Marked” when individually designated by Forest Service with paint marks above and below stump height.

Contract Area Map indicates areas plainly identified on the ground where leave trees are Marked to be left uncut.

C.3.6 Incompletely Marked Timber. Live trees within incompletely Marked subdivisions shown on Contract Area Map at time of contract advertisement shall be designated in accordance with K-C.3.6. A representative sample of the timber to be designated has been Marked prior to contract advertisement in accordance with such rules. The approximate locations of the representative sample areas are shown on Contract Area Map.

C.3.7 Minor Changes. Within Contract Area, minor adjustments may be made in boundaries of cutting units or in the timber individually Marked for cutting when acceptable to Contractor and Forest Service.

C.4 Volume Estimate. The estimated volumes of timber by species designated for cutting under C.3 and ex-pected to be cut under Utilization Standards are listed in A.2. If Contract Area Map indicates that there are incom-pletely Marked subdivisions, the objective of Forest Service shall be to designate for cutting in such subdivisions suffi-cient timber so that Contract Area shall yield the approximate estimated volume by species or species groups stated in A.2. However, the estimated volumes stated in A.2 are not to be construed as guarantees or limitations of the tim-ber volumes to be designated for cutting under the terms of this contract.

Volume adjustments shall not be made under this Section after there is modification for Catastrophic Damage under I.3.2.

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C.4.1 Adjustment for Volume Deficit. If Contract Area Map indicates that there are incompletely Marked subdivisions and if Contracting Officer determines that a deficit in the estimated volume will cause the volume cut to be less than 90 percent of the total estimate shown in A.2, Forest Service, upon request by Contractor, shall desig-nate additional timber within Contract Area. Such additional timber shall be limited to that estimated to be necessary to reach approximately the estimated volumes by species listed in A.2. Any such additional designation shall be con-sistent with land and resource management plans.

C.4.2 Adjustment for Excess Volume. If Contract Area Map indicates that there are incompletely Marked subdivisions and if Contracting Officer determines that the volume cut will be more than 120 percent of the total esti-mated volume listed in A.2, Forest Service, upon request by Contractor, shall make an adjustment in Marking or cut-ting unit boundaries with the objective of designating for cutting the approximate estimated volumes by species listed in A.2. Such adjustments in volumes shall be confined to (a) Marking adjustments on Contract Area and (b) reduction in area to be cut over. Such adjustments or reductions shall not conflict with the silvicultural treatment being applied on Contract Area and shall not materially change the average value by species of the timber designated for cutting.

Such adjustments may be made notwithstanding the provisions of B.1 and C.3.

If the timber designated for cutting is not reduced by such adjustments to less than 120 percent of the total esti-mated quantity listed in A.2, Contractor, after cutting 120 percent of the total estimated volume listed in A.2, may elect to have Contract Area reduced to eliminate the remaining Included Timber. However, where felling operations have been started, units of minimum practical size shall be retained in Contract Area.

D.0—RATES OF PAYMENT

D.1 Current Contract Rates. Included Timber that is removed by Contractor and presented for Scaling in the product form stated in A.2 shall be paid for at Current Contract Rates determined under this Section. “Current Con-tract Rates” shall be (a) Flat Rates and (b) Tentative Rates adjusted by the escalation procedures in D.2. Flat Rates and Tentative Rates shall be those listed in A.4, unless superseded by rates redetermined under D.3 or established for Contract Term Extension. In addition, Required Deposits shall be made as listed in A.4, K-F.3.2, and K-G.8.1.6, or established under D.3 or I.2.3.

In the event Termination Date is adjusted under I.2.1 or I.2.1.2, Current Contract Rates shall be continued in the same manner as immediately prior to the adjustment period.

Notwithstanding I.2.3, Current Contract Rates for timber cut and removed from Contract Area that remains un-scaled after Termination Date, as adjusted or extended, shall be Current Contract Rates in effect on Termination Date.

“Current Contract Value” is the sum of the products of Current Contract Rates and estimated remaining unscaled volumes by species of Included Timber meeting Utilization Standards, less the bid rate for mandatory stewardship projects that have not been completed.

D.2 Escalation Procedure. Tentative Rates for those species and products listed in A.4.1 are subject to quarterly escalation in accordance with the following procedures: The calendar quarter index average for each price index de-scribed in A.5 is the arithmetic average of the three such monthly price indices preceding January 1, April 1, July 1, and October 1. The difference between calendar quarter index average and Base Index listed in A.4.1 shall be the basis for quarterly escalation. To arrive at Current Contract Rates for timber Scaled during the preceding calendar quarter, Tentative Rates for each species shall be reduced or increased by such difference, except when the calendar quarter index average is:

(a) Less than the Base Index, the reduction shall not result in a rate below Base Rate or

(b) Greater than the Base Index, the increase shall not exceed the difference between Tentative Rate and Base Rate.

In the event of Contract Term Extension, the escalation procedure will be used during the extension period, ex-cept that adjusted payment rates for any calendar quarter cannot be less than Tentative Rates, for each species and product group, established under I.2.3 for the extension period.

D.2.1 Unavailable Index. If an index described in A.5 is no longer available, Contracting Officer may replace that index. If Contracting Officer determines that a replacement index does not exist, Current Contract Rates for the remainder of the contract shall be a Flat Rate. Flat Rates will be Tentative Rates adjusted by the arithmetic average of the index described in A.5 for a 12-month period prior to its becoming unavailable using the quarterly adjustment pro-cedure outlined in D.2. Contracting Officer will determine availability and a beginning point to average the index for Flat Rates. Such Flat Rates are subject to rate redetermination as provided elsewhere under this contract.

D.3 Rate Redetermination. Rates may be redetermined as set forth in this Section. Bid Premium Rates shall be added to all redetermined rates, except as provided in D.3.1, D.3.2, and D.3.3.

Rate redeterminations shall be made in accordance with the standard Forest Service methods in effect 45 days prior to rate redetermination. Such methods shall take into consideration factors that may affect timber value at rate redetermination date.

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Redetermined rates shall not be less than Base Rates listed in A.4, except for reduction under D.3.1, D.3.2, or D.3.3. Required Deposits shall be redetermined. Redetermined Specified Road construction cost is subject to the limi-tations of F.2.6.

D.3.1 Rate Redetermination for Environmental Modification. In the event of a contract modification under I.3.3 or partial termination under I.3.4, Contracting Officer shall make an appraisal to determine for each species the difference between the appraised unit value of Included Timber remaining immediately prior to the revision and the appraised unit value of Included Timber to be cut under the modification. The appraisal shall consider the estimated cost of any construction work listed in the Schedule of Items that was performed and abandoned.

Tentative Rates and Flat Rates in effect at the time of the revision will be adjusted by said differences to become Current Contract Rates. Accordingly, Base Rates shall be adjusted to correspond to the redetermined rates if rede-termined rates are less than the original Base Rates, subject to a new Base Rate limitation of the cost of essential reforestation or 25 cents per hundred cubic feet or equivalent, whichever is larger. However, existing Base Indices shall not be changed under this Subsection.

Redetermined rates, or differences for rates subject to D.2, and Required Deposits shall be considered estab-lished under D.1 for timber Scaled subsequent to the contract revision.

D.3.2 Rate Redetermination after Catastrophic Damage. In event of Catastrophic Damage and adjustment, if any, of Included Timber, Contracting Officer shall make an appraisal to determine for each species the catastrophe-caused difference between the appraised unit value of Included Timber remaining immediately prior to the catastro-phe and the appraised unit value of existing and potential Included Timber immediately after the catastrophe. Included Timber is any that would not be eliminated under I.3.2. Potential Included Timber is any that would be added under I.3.2.

Tentative Rates and Flat Rates in effect at the time of catastrophe shall be adjusted by said differences to be-come the redetermined rates for the purpose of a contract modification under I.3.2. Accordingly, Base Rates shall be adjusted to correspond to the redetermined rates if redetermined rates are less than the original Base Rates, subject to new Base Rate limitations of 25 cents per hundred cubic feet or equivalent. However, existing Base Indices shall not be changed under this Subsection.

Upon agreement under I.3.2, redetermined rates and Required Deposits shall be considered established under D.1 for timber Scaled subsequent to Catastrophic Damage.

At time of such appraisal, Specified Road construction cost shall include the estimated cost of any construction work listed in the Schedule of Items performed and abandoned.

D.3.3 Rate Redetermination for Market Change. In the event of delay or interruption, exceeding 90 days, under I.3.3, Contracting Officer shall make an appraisal to determine for each species the difference between the ap-praised unit value of Included Timber immediately prior to the delay or interruption and the appraised unit value of Included Timber immediately after the delay or interruption. The appraisal shall be done after any rate redetermination done pursuant to D.3.1, using remaining volumes.

Tentative Rates and Flat Rates in effect at the time of delay or interruption or established pursuant to D.3.1 will be reduced, if appraised rates declined during the delay or interruption, to become Current Contract Rates. Increases in rates will not be considered. Accordingly, Base Rates shall be adjusted to correspond to the redetermined rates if re-determined rates are less than the original Base Rates, subject to a new Base Rate limitation of the cost of essential reforestation or 25 cents per hundred cubic feet or equivalent, whichever is larger. However, existing Base Indices shall not be changed under this Subsection.

Redetermined rates shall be considered established under D.1 for timber Scaled subsequent to the delay or inter-ruption.

D.3.4 Emergency Rate Redetermination. Forest Service shall redetermine rates if, upon Contractor's appli-cation, Forest Service determies that, because of changes in the timber market since the award date or the last rate redetermination under this provision, the Producer Price Index identified in A.20 has declined by 25 percent. Rates shall be redetermined under D.3 and shall be considered established under D.1 for timber Scaled subsequent to Con-tractor’s application. This Subsection shall not apply during Contract Term Extension.

D.4 Other Payment Rates.

D.4.1 Material Not in A.2. Incidental amounts of products or portions of trees of species listed on A.2 that do not meet Utilization Standards may be removed without charge. Such material may be purposely removed in more than incidental amounts without charge upon written approval of Contracting Officer, and subject to agreement on deposits if needed for road maintenance and use.

Other species or products not listed in A.2 may be cut and removed upon written approval of Contracting Officer and subject to agreement on rates of payment and deposits if needed for road maintenance and use.

When any material suitable for use in a product form included in A.2 is removed in another product form, the rates of payment shall be not less than but approximately equivalent to Current Contract Rates and Required Deposits.

D.4.2 Timber Cut Through Mistake. Undesignated timber meeting Utilization Standards, cut by Contractor through mistake and included by Contracting Officer under C.1.4, shall be removed and paid for at Current Contract

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Rates and Required Deposits, unless such material is not listed in A.2. In such event, Contracting Officer, in accord with standard Forest Service methods, shall establish rates to be paid.

D.4.3 Designated Timber Cut But Not Removed. Standard timber shall be removed, as provided in C.2, prior to acceptance of subdivision for completion of logging and stewardship project operations under G.3.6. There shall be no charge when:

(a) The leaving of incidental material is justified under existing conditions, including those under G.4 or

(b) Cut timber is left by option or requirement, as under C.3.1, C.3.2, and G.4.

D.4.4 Undesignated Timber Damaged Without Negligence. Undesignated timber meeting Utilization Stan-dards, damaged without negligence by Contractor and designated by Forest Service under C.1.3.1, shall be cut, re-moved, and paid for at Current Contract Rates and Required Deposits.

D.4.5 Undesignated Timber Unnecessarily Damaged or Negligently or Willfully Cut. Undesignated tim-ber meeting Utilization Standards and unnecessarily damaged or negligently or willfully cut by Contractor, if included by Contracting Officer under C.1.3.2, shall be cut, removed, and paid for at Current Contract Rates and Required De-posits that are in addition to liquidated damages under D.4.6.

If such timber is of a species or size not listed in A.2 or is of a quality different from designated timber, Contracting Officer shall establish payment rates in accord with standard Forest Service methods.

D.4.6 Liquidated Damages. Unnecessary damage to or negligent or willful cutting of undesignated timber, as described in D.4.5, on portions of Contract Area cut over under this contract is likely to cause substantial silvicultural or other damage to the National Forest. It will be difficult, if not impossible, to determine the amount of such damage.

Therefore, Contractor shall pay as fixed, agreed, and liquidated damages an amount equivalent to the amount pay-able at Current Contract Rates. If designated by Contracting Officer, Contractor shall remove such damaged or cut timber and pay for it at Current Contract Rates.

D.4.7 Defect Caused by Abnormal Delay. Scaling deductions made for rot, check, or other defect resulting from abnormal delay in Scaling caused by Contractor shall be recorded separately and charged to Integrated Re-source Account at Current Contract Rates and applicable deposits.

E.0—PAYMENTS

E.1 Amount Payable for Timber. Current Contract Rates and Required Deposits in effect when the timber is Scaled shall be applied to the Scaled volume to determine the amount Contractor shall pay.

E.2 Integrated Resource Account. “Integrated Resource Account” is an account maintained by Forest Service of all Contractor’s deposits, credits, payment guarantees, and the charges for:

(a) Timber at Current Contract Rates;

(b) Slash disposal, road maintenance, and contract scaling at Required Deposit rates;

(c) Cooperative work at rates established by specific agreement under E.2.1.8;

(d) Stewardship Credits established; and

(e) Other charges provided in this contract.

Cash deposits shall be recorded currently in such account.

Charges for timber cut shall be made when Forest Service prepares and furnishes to Contractor periodic state-ments of volume and value of such timber cut and Scaled. Charges subject to escalation under D.2 shall be made initially on the basis stated in E.2.1.4 and shall be adjusted at the end of each calendar quarter, as provided in D.2.

E.2.1 Cash Deposits. Within the limitations of this Subsection, Contractor shall make cash deposits to meet Contractor’s obligations within 15 days of billing by Forest Service. Deposits shall be made to Forest Service, U.S.D.A., by mail or delivery to the address to be furnished by Forest Service. Forest Service shall explain the bill at the time it requests each deposit.

E.2.1.1 Downpayment. The downpayment amount shown in A.18 may not be applied toward any other payment required under the provisions of this contract, except damages determined pursuant to J.4, transferred to other contracts, or refunded until stumpage value representing 25 percent of the total bid value of the contract has been charged and paid for or the estimated value of the unscaled timber is equal to or less than the amount of the downpayment.

E.2.1.2 Advance Deposits. Contractor agrees to make cash deposits in advance of cutting to meet charges under E.2.

Forest Service billings for advance cash deposits shall be in such amounts that Integrated Resource Account will maintain an unobligated balance equal to the applicable charges for timber that Forest Service estimates will be cut in not less than 30 days and not more than 60 days. This advance cash deposit may be reduced to a smaller amount by the terms of E.2.1.1, E.2.1.3, E.2.1.5, and/or E.2.1.7. Except for amounts required pursuant to E.2.1.1, E.2.1.3, and E.2.1.7, Contractor shall not be required to make advance deposits above those required under this Item.

When the credit balance in Integrated Resource Account is less than the amount due for timber estimated to be cut in 10 days, Contracting Officer will suspend all or any part of Contractor’s Operations until payment or acceptable payment guarantee is received.

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E.2.1.3 Periodic Payment Schedule. Contractor shall make periodic payments for stumpage value, as shown in A.19.

In the event Contractor has not paid the amount(s) stated in A.19 as stumpage for volume removed by the peri-odic payment determination date(s), Forest Service shall issue a bill for collection for the difference between the re-quired amount and payments made by Contractor. If payment(s) fall due on a date other than a normal billing date, the payment date shall be extended to coincide with the next Integrated Resource Account billing date.

The amount of the periodic payment(s) will be reduced if the payment(s) would result in Contractor’s credit bal-ance for timber charges exceeding the Current Contract Value.

Only cash may be used for this purpose. No other form of payment is acceptable. Forest Service will apply the payments to subsequent charges on this contract under the terms of E.2.1.2.

Except for Contract Term Extensions under I.2.3, periodic payment determination date(s) that have not been reached shall be adjusted one day for each additional day of contract time granted.

E.2.1.4 Deposits for Charges Subject to Escalation. Deposits requested to cover estimated charges for timber subject to escalation under D.2 shall be based upon Current Contract Rates and related deposits in effect during previous calendar quarter.

E.2.1.5 Deposits When Payment Guaranteed. To the extent payment guarantee is provided under E.3, requirements for advance cash deposits under E.2.1.2 shall be waived for the value of timber on Contract Area that is cut, but not removed, and for the value of products removed from Contract Area for not more than a monthly billing period, subject to the provisions of E.4.

E.2.1.6 Blanket Cash Deposits. Contractor may make cash deposits under a written agreement to cover charges made under this and other contracts within the same National Forest. Forest Service shall allocate such de-posits to such contracts. When there is to be no timber cutting hereunder for 30 days or more and payment of current charges has been made, the allocation to this contract shall be reallocated to other contracts within the same National Forest at Contractor’s request. Contractor shall not start cutting until allocation has again been made to this contract.

E.2.1.7 Extension Deposits. In the event of Contract Term Extension, Forest Service shall divide the difference between Current Contract Value as of the start of any Contract Term Extension and the credit balance of any deposit made pursuant to E.2.1.3 by the number of whole months remaining in Normal Operating Season(s) within the extension period to determine the amount of each “Extension Deposit.”

Contractor shall make the initial Extension Deposit prior to Forest Service executing the contract modification. In response to Forest Service billing under E.2.1, Contractor shall make advance cash deposits. Such deposits shall at least equal each Extension Deposit required for each whole month remaining in Normal Operating Season(s) during the extension period. Extension Deposits shall be due by the last day of each month during Normal Operating Season whether or not the volume that is covered by such deposits has been Scaled.

Due dates for Extension Deposits during the extension period may be delayed when Contractor earns Contract Term Adjustment if Termination Date, as adjusted, results in one or more additional complete months within Normal Operating Season(s).

E.2.1.8 Cooperative Deposits. On a basis of cooperation or assistance (16 USC 572) and by a written agreement, Forest Service shall perform all or portions of the work that Contractor is obligated to perform under this contract, as well as furnish other Services in connection with activities under this contract. When Forest Service is to perform such work, Contractor shall make one or more deposits to cover the estimated cost of the work. On request of Contractor, Forest Service shall render monthly accounts, as may be specified in such agreement.

E.2.2 Stewardship Credits. “Stewardship Credits” are credits that are earned and established when work described in K-G.9 has been performed and accepted. Stewardship Credits shall be earned at the rate as shown in A.4.3. Earned Stewardship Credits may be used to pay for Included Timber value in excess of Base Rates and Re-quired Deposits. Base Rates and Required Deposits must be paid in cash.

E.2.2.1 Progress Estimates. Forest Service shall make timely estimates of Contractor’s progress on stewardship projects. On the basis of such progress estimates, Forest Service shall credit Integrated Resource Ac-count each month as such work proceeds.

E.2.2.2 Excess Stewardship Credits. In the event there are unused established Stewardship Credits when all of the Included Timber has been cut and removed, Forest Service, at its option, shall either add more timber or make cash payment for the unused Stewardship Credits.

E.2.2.3 Excess Timber Value. In the event the value of Included Timber exceeds the total value of all of the mandatory projects shown in A.4.3, plus the optional projects shown in A.4.3 that Contractor has been authorized to perform:

(a) Contracting Officer shall authorize additional optional projects shown in A.4.3 if the excess timber value ex-ceeds 10 percent of the total timber value, or

(b) Contracting Officer shall authorize additional optional projects shown in A.4.3 or require cash payment if the excess timber value is less than 10 percent of the total timber value, or

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(c) Contractor shall make cash payment for the excess timber value if there are no remaining optional projects shown in A.4.3.

E…