AG-3187-S-15-0049_RFP_Attachment_04.pdf

Basic Timber Sale Preparation

Basic Timber Sale Preparation

Course Introduction

Course Goals and

Objectives:

1) Overview of the

USFS Timber Sale Prep Process

2) Role of the Sale Prep Forester

“Can the USFS be more efficient in preparing timber sales?”

Why are YOU here?

The USFS Forester “ The training of a Forester should lead him to be practical in the right sense of that word, which emphatically is not the sense of abandoning standards of work or conduct in order to get immediate results.”

Gifford Pinchot

Evolution of the

Agency and the Role of the Forester

USFS

Forester in the 21st

Century

The National Environmental Policy Act (NEPA) of 1969

The Forest and Rangeland Renewable Resources Planning Act (RPA) of 1974

The National Forest Management Act (NFMA) of 1976

USFS Timber Management

Legislation and Authority

“…cultivate and maintain tree stands in a manner that promotes and achieves a diverse pattern of vegetation that best meets the needs of people now and in the future.”

1. To provide a continuous supply of National Forest System timber for the use and necessities of the citizens of the United States.

2. To provide an even flow of National Forest System timber in order to facilitate the stabilization of communities and opportunities for employment.

3. To manage and provide for regeneration of tree stands.

4. To maintain a diversity of forest vegetation types and resources consistent with forest plans.

5. To plan and conduct cost-effective timber sales and other timber management activities.

6. To restore and maintain healthy forest conditions through the reduction of hazardous fuels.

The Gate System Gate 1- Initial

Planning

Gate 2 - Project

Analysis - DN

Gate 3 - Sale Prep

Gate 4 - Advertise

Gate 5 - Bid Opening

Gate 6 - Award

Course Agenda

References Behan, R.W. 1966. The myth of the omnipotent forester. J. For.

64:398-407.

Pinchot, G.P. 1914. The training of a forester. J.B. Lippincott Company, Philadelphia, PA. 180 p.

U.S. Forest Service. 2002. Forest Service Handbook 2409.18, Timber Sale Preparation Handbook . Washington, D.C.: U.S.

Forest Service.

U.S. Forest Service. 2009. Forest Service Manual 2400, Timber Management. Washington, D.C.: U.S. Forest Service.

U.S. Forest Service. 2013. Task Force Report: Issues and concerns on costs of sale prep and cruising in the US Forest Service. Unpublished.

Zivnuska, J.A. 1963. Forestry: A profession or a field of work? J.

For. 61:339 –340.

Preparation

Gate 1- Initial Planning of a

Timber Sale Project

• Definition & Purpose

• Tasks & Activities

Gate 1 Overview

• Basic Principles/NFMA

• Planning and Analysis Levels

Timber Sale Planning

• Present vs. Desired Conditions

• IDT & Scoping

Timber Sale Project Initiation

• Logging/Transportation Plan

• Feasibility Analysis

Timber Sale Project Plan

Timber Sale Preparation Process

Forest Plan Implementation

Initial Timber Sale Planning

Purpose and Need

Public Issues

External Partners

Resource & Mgmt Issues

Potential Outputs

Harvest System

Plan

Feasibility Analysis

Trivial Pursuit ?

Key Tasks

• Identify - Forest Plan Goals & Objectives

• Develop - Preliminary Estimates

• Analyze - Financial Efficiency

• Determine - Project Feasibility

• Document - Findings and Determinations

Timber Sale Planning

The National Forest Management Act of 1976 (NFMA)

“…establishes standards for how the FS manages national forests, requires development of land management plans…”

Key Principles of NFMA

• Public Participation

• Multiple Use and Sustained Yield

• Interdisciplinary Planning Process

• In Accordance with NEPA of 1969

• Suitability Assessment for

Management Activity

Forest Plan Analysis

1) Size and Extent

2) Suitability for Timber

Management

3) Management

Objectives

4) Preliminary

Financial and Economic Information

Landscape Analysis

• used to identify opportunities for vegetation management that will achieve the objectives outlined in Forest plans in a manner consistent with ecosystem management principles.

Project Level Analysis (Timber Sale Preparation Process)

• General plan created to achieve a goal, usually over a long period of time

Gate 1:

Strategic

• Used for a specific plan that is created to achieve a particular goal

Gate 2:

Tactical

• Links Strategy to Tactics, field ops Gate 3:

Operational

Project Initiation

Location

Resource Analysis

• Present

Conditions

• Management

Area/Forest Plan Compatibility

Project Initiation

Location

Desired and Future Conditions

PURPOSE

& NEED

IDT SCOPING

PROPOSED

ACTION

Timber Sale Project Plan

• Preliminary Decision Document - details the early overview of a proposed project

• Addresses issues influencing timber sale project decisions

• Provides Options to Forest Supervisor

• Documents feasibility and efficiency analysis for preparing sales/projects

Timber Sale Project Plan Contents

Project Area

Resource Objectives

Critical Issues

Preliminary Direction

Financial Analysis

Forest Plan Suitability

Map Line Officer Approval

Sources of Information

• Forest Plan

• Existing Landscape or Area

Analysis

• Resource Data

• Public and Partner Comments

• Specialist Reports

Harvest System & Transportation Plan

• Primarily map based, involves a large number of acres, identifies potential logging systems and general strategy of harvesting, and access needs

• AKA: Logging Plan, Transportation Plan, Area Harvest Plan, Paper Plan

Example 1: Strategic Plan For Analysis Area Results

1680 acres

12.3 miles of road 50% Skyline or Helicopter >65% 15% Skyline – 2 drum, uphill 50-65% 15% Track (tractor to KMC) 35-50% 10% RTS –Cable & Grapple <35% 10% Inaccessible/riparian Majority of sales will be high cost logging systems. Silvicultural treatments may be limited by both physical and economic feasibility.

Landscape Capabilities Example 2:

• Tractor Ground <30% 12,450 acres

• Cable Ground >30% 15,200 acres*

• Helicopter (unroaded) 5,180 acres

• *9,500 acres of which are 30-45% slopes with < 1,000 feet yarding distance and special ground-based equipment is capable to meet desired conditions.

Gate 1Harvest Plan

• Determine what system pencils out best.

• Most efficient method is not always the cheapest alternative

Feasibility Analysis

FEASIBILITY

Forest Plan

Financial Efficiency Salability

Sale- Specific Factors

Financial Efficiency

• Used to determine if proposal is a Prudent means of achieving Forest Plan objectives.

• Use Financial Analysis to determine the preliminary financial efficiency…

Gate 1 Financial Analysis

FSH 2409.18,22.2

• Utilize a “Least-Cost” methodology

– Ensure all harvest methods are evaluated

– Do not “over engineer” road systems

– Short term financial efficiency (3 to 10 years)

– Calculate the present net value (PNV) for the project using the appropriate revenues and cost estimates

– Document analysis for alternative comparison during Gate 2

PNV Revenue Sources

• Appropriate revenues sources

– 3-year average of timber sale revenues

– Timber sale appraisals

– Average revenues from comparable sales

– Adjust estimates considering the mix of products (saw timber, pulp, biomass)

PNV Direct Costs

• Appropriate cost inclusions

– Sale administration

– Sale preparation (starting at Gate 1)

– Other resource support

– Brush disposal (FS costs)

– Road design and engineering (excluding deposits)

– Road maintenance (FS costs)

– All stewardship (service) costs

Example of Gate 1 Short-Term Financial Analysis Information

Salability

• Is there a reasonable chance that the timber sale will be purchased ?

• Ideal time to collaborate with Industry Partners and gather input on economic feasibility of proposed project.

Before Moving to Gate 2

Signed T.S.

Project Plan

TIM

Certification Report

Gate 1 Outputs

TIMBER

SALE

PROJECT

PLAN

Gate 1 Certification

“The proposed National Forest timber sale project is feasible to prepare and will be consistent with the forest plan, and further investment of resources and capital in the proposal is warranted.”

IN SUM…

Determine (and document):

1. Primary Purpose of Proposal

2. Forest Plan Objectives

3. Feasibility of Proposed Project

4. If further Investment of Resources and Capital is Warranted

Gate 1 Exercise

• Note: Develop a class exercise with a mock proposal. Provide background info on project but leave enough info out of the background info for the groups to do some basic calculations ( potential volume, revenue and costs, etc.) Groups will determine if project should go forward.

• Example project can be used for illustration of subsequent gates and exercises.

• Also – provide example timber sale project plans in Workbook or Removable Media device.

Skills and involvement at Gate 2 – NEPA Analysis (will be working with ID team)

• Understand financial efficiency analysis process so as to provide a revenue/cost ratio and financial present net value.

(FSH 2409.18 32)

• Understanding of and ability to provide estimate of expected revenue from the timber.

• Provide the tradeoffs between logging systems. “Whole tree, tree length, cut to length, forwarding, cable, animal”.

• Understanding of how the requirements for special logging systems and mitigation measures may impact revenues the sale may produce.

• Understanding of transportation planning.

• Be able to provide input to the ID team on logging systems and their capabilities and limitations.

• Be able to discuss the available contract provisions and how they can be used to protect a given resource, or to provide a needed mitigation.

• Ability to provide input to the ID team on the feasibility of mitigation measures.

• Understand the process of entering a project into the Timber Information Manager (TIM) system and be able to complete all needed data entry and produce a signed gate 2 certification form.

SBA in Gate 2 - may affect how sales in the project are designed if SBA is triggered (size, etc.).

2. Gate 2, Project Analysis, Assign, and Decision Notice. During the timber sale project area design (environmental analysis) phase, develop alternative designs and analyze them for environmental effects. Provide an analysis of financial and, if needed, economic efficiency. Concurrently, develop an analysis file to store the information that is gathered. The documentation and analyses are submitted to the responsible line officer to make a NEPA decision.

• Responsible line officer makes a decision

• Develop a timber sale project implementation plan that provides detailed instructions for field layout of all sale elements.

• Sale area design phase is the selection of the preferred alternative and the signature on the decision document by the official authorized to approve the project.

Gate 2 – Certification

• Timber Sale Project Design –

Line Officer

– “This National Forest timber sale project has a signed NEPA decision document by the responsible official, has an analysis file documenting the analysis and the information used in the analysis, and a sale implementation plan (project plan) which provides field instruction for carrying out the selected alternative.”

Purpose for Planning Project

Required by law (NFMA,NEPA) Agency direction, FSM 2432.21 “To plan and develop project activities, including logging and transportation systems that achieve forest plan objectives, integrated resource requirements consistent with the forest plan, and meet forest plan standards and guidelines in the most cost efficient manner”

Project Planning Analysis Questions

• Given:

• 1) Desired vegetative condition

• 2) Existing harvest technology

• 3) Various management constraints

• 4) Other considerations

• A) Where and when should units be harvested?

• B) How should units be cut?

• C) What road access is needed to carryout management?

• D) What are the economic and vegetative effects of different harvesting schedules?

• E) What roads are excess to management needs? Or how long before a re-entry is scheduled?

Gate 2: Planning Process

Scenarios

ID Team

Analysis Area

Proposed Action

Develop Alternatives

Compare/Analyze Alternatives

Goals and Objectives

Priorities and Issues

Human Judgment

TM Sale Planning Flow

Need for timber sale or harvest activity

(i.e.economic, forest health, growth, etc.)

Transportation/Logging Initial Paper Plan

Field Verification of Paper Plan, Profile

Analysis

Transportation/Logging Final Plan

Gate 2 : Tasks

• Conduct intensive area recon to identify resource values, problems, control points, boundaries & treatments

• Determine least-cost road package for sale (construction, reconstruction, maintenance, & haul capability)

• Complete a financial analysis, to identify the most cost-efficient alternative

• Conduct analysis and issue decision

Scoping

Alternatives

Objections

Notifications Monitor and Evaluate Appeals

Plan

Consistency

NEPA Applies

Consistency with Laws

PROPOSED ACTION

Purpose and Need

Effects

Findings

Area

Area

Letter of Management Intent

YES, or “may be” or “normally required” (36 CFR 220.5(a))

Categorical Exclusion

NO, fits a category in FSH 1909.15 ch. 30

AND

no extraordinary circumstances related to the proposed action

EA

Environmental

Assessment

Proposal Scoping

Are Effects Significant?

NO, or Unknown if significant

EIS

Environmental

Impact Statement

Are Effects Significant?

YES

NO FONSI

NEPA Document Types

Record of Decision

Decision Memo

Decision Memo required? YES

Decision Notice

1-

Yarding Alternatives and Access Options

Profile Analysis will depend upon your yarding alternative

Gate 3 Preparation of a Timber Sale

Timber Designation, Marking, and Cruising

Laws and Regulations

• Laws

– Multiple-Use Sustained-Yield Act (1960)

– National Environmental Policy Act (1969)

– National Forest Management Act (1976)

• Regulations

– US Code, Title 16, Chapter 36, Part 223

• Sale and Disposal of National Forest System Timber, Special Forest Products, and Forest Botanical Products

Forest Service Directives

• FS Manuals

– FSM 2440 – Designating, Cruising, Scaling, and Accountability

• FS Handbooks

– FSH 2409.11 – National Forest Log Scaling

– FSH 2409.11a – National Forest Cubic Scaling

– FSH 2409.12 – Timber Cruising

– FSH 2409.15 – Sale Administration

– FSH 2409.18 – Timber Sale Preparation

Cruiser Certification Levels

• Qualified

– Implements cruise plan

– Certification exam and field test

• Advanced

– Designs and implements cruise plan

– Certification exam

• Check

– Inspect timber sale cruises

– Certification exam

• Master

– Coordinates Regional quality control program

– Certified by Regional Forester

Scaler Certification Levels

• Production

– Qualified – Scales logs for value

– Advanced – Additional log and load accountability duties

• Check

– Responsible for quality control and accuracy of scaling.

• Master

– Check scale and training duties.

• Utilization

– Can scale incidental amounts of timber for payment.

Cruise Plan

Silvicultural Guides

Payment Method

Tree Measurement Sale

Scaled Sale

Error Standards

Quality Control

Paint Color Codes

Unit Marking Guidelines

DxD and DxP

Tracer Paint

Sampling Method

Tree Based Methods

Plot Based Methods

Cruise Design

Pre-Cruise Data

Stratification

Sample Sizes

Cruise Design Tools

Sale Unit Maps

Distance-Direction

GPS

Orthophotography

Product Merchantability Specifications

Special Instructions

Cruise Data

Processing Cruise Data

Failed Error Standard

Certification of Cruise

Questions?

Gate 3- Preparation of a Timber Sale (1300-1700)

In depth review of considerations for field work accomplished in Gate 3. Emphasis on implementation of NEPA decision on the ground and efficiency measures related to layout, designation and timber cruising strategies.

• Referencing NEPA and the Forest Plan: Implementing NEPA on the ground.

• Sale Layout - Overview of layout from beginning to end: taking map delineated units, specified road locations to the field, determining access including temporary road locations, skidding patterns, landing locations (number and size), flagging units, area determination.

1. Gate 3 Overview

i. Gate 3 Definition - These activities include the implementation of the sale plan that was prepared at Gate 2 and the timber sale appraisal that initiates Gate 4.

Gate 3 includes activities leading to the implementation of the timber sale project plan for individual timber sales, such as data gathering and on-the-ground marking, designating, and delineating the boundaries needed to properly support the appraisal, preparation of the contract, and post-award sale administration.

ii. Gate 3 Purpose - the implementation of the decision notice on the ground –field work These activities should represent the most cost-effective means of implementing the sale design.

iii. Gate 3 Activities – Identification of individual timber sales in the timber sale project;

completion of all field layout activities; documentation of items for use in preparing appraisal, contract preparation, offering;

and line officer certification

iv. Gate 1 Outputs – field prep, line officer certification:

“Timber Sale Summary” - that the timber sale has been prepared in accordance with 36 CFR 223.30; is consistent with the Forest plan and applicable National Environmental Policy Act (NEPA) decisions; and is feasible based on Forest plan objectives, financial efficiency, and salability to potential purchasers.

a. 36 CFR 223.30:

2. Forest Plan and NEPA Implementation

i. Sources for Design Criteria, Layout specifications – Resource protection guidelines, sale preparation guidance (cruise plan, marking and layout guides, specialist reports, timber sale project plan

ii. Quality Control – 42 Provide for the review of sale preparation work by competent, experienced specialists. The review must determine that sale preparation followed the sale implementation plan and other resource protection requirements or guidance for sale preparation. The review must include on-the-ground review of quality and compliance with environmental analysis for a sample of the sales as determined by the appropriate line officer.

iii. Documentation – 44.1 - Documentation includes, but is not limited to, the following:

1. Cruise design.

2. Cruise results.

3. Marking guides.

4. Other resource surveys and data.

5. The TIM certification form, “Timber Sale Summary.”

6. Presale cards, cutting unit cards, or aerial photos used by field people.

iv. Sale Tracking and Reporting - 44.2

Incorporate into TIM the information developed or updated at Gate 2. The following information is appropriate:

1. Sale number and name.

2. State and county.

3. Legal description of the sale.

4. Salvage status and percent of salvage volume.

5. Sale objective codes.

6. Cruise volume data.

7. Cutting and payment unit descriptions.

8. Contract species names and conversion factors.

Update the estimated miles of specified road construction and reconstruction, and the estimated bid date for the timber sale in TIM.

Enter or update the required data for timber sale activities into the Forest Service Activities Tracking System (FACTS) to track the activities on timber sale projects and timber sales.

B division

Module objectives

• Explain the highlights of the B Division that I think you should be familiar with not the entire thing.

• The B Division is extensive and is something to spend the rest of your career reading.

• Think of it as reference material

• Ask questions.

The B Division

• The boiler plate language of the Contract

• All these sections are all very relevant and are tied to the other A and C divisions as well as the SAM

• If you’re a sale administrator and CO you are forced to become more familiar with this division than if you are prep forester.

B1.0 Sale Area

• Defines the SAM and its requirements and limitations

• B1.2 deals with mining claims

B2.0 Timber Specifications

• Defines what is included timber B2.1

• Damaged timber B2.13

• Undesignated timber that has been cut

• Clearing limits for roads and trails B2.32

• Timber designations by silvicultural methods

– B2.31, B2.33, B2.34, B2.35, B2.36 (connects to A3, SAM and C Division)

• Volume Estimates (B2.4)

• Minor Changes (B2.37)

3.0 Rates of Payment

• Payment rates on the contract

• Be familiar with

– Escalation B3.2 and B3.21

– Rate redetermination B3.3

– Connection to Base Rates

• Other payments

– B3.41 Material not in A2

– Timber cut through mistake, negligence, damaged or willfully cut.

– B3.47 Defect caused by abnormal delay

B4.0 Payments

• Defines payment methods and schedules

• B4.211 Downpayment

• B4.213 Periodic Payment Schedule (A19)

• $.22 Temporary Reduction of Downpayment

• B4.31 Blanket Payment Bond

5.0 - transportation

• Important section deals with road construction and maintenance

• Authorization for purchaser to build roads

6.0-Operations

• This is a long section that deals with operational provisions.

• Some important provisions that are here

– B6.23 Protection of improvements

– B6.4 conduct of logging

– B6.6 Erosion control

– B6.7 Slash disposal

7.0 – Fire Precautions and Control

• Provisions dealing with fire.

• The most commonly cited is:

– B7.2 Fire Precautions (C7.2)

• Know the difference between

– B7.41 Operations Fire

– B7.42 Negligent fire

8.0 – Other Conditions

• Section 8.0 mainly deals with Contract term adjustments and extensions, modifications, termination etc…

• You should be familiar with:

– B8.2 Period of contract

– Know the difference between B8.21 Contract Term

Adjustment and B8.23 Contract Term Extension

– B8.212 Market-Related Contract Term Addition

– B8.32 Modification for Catastrophe

• Connection to Sale Area Boundary.

9.0 – Performance and Settlement

• Performance Breach, Settlement, Bonds, etc..

• Be Familiar with

– B9.1 Performance Bond

– B9.22 Contract Documents (very important in contract prep).

– B9.3 Breach

• Understand the process

– B9.6 Contract Closure

Gate 4 Bid Package Advertisement

Prospectus Bid Form

Sample Contract

Advertisement

• Two Types – Preliminary and Regular

• General information to bid on sale

• Prepared in Timber Information Manager

(TIM)

• Reference FSH 2409.18, Sec 57

Preliminary Advertisement

• Used when advertising would preclude adequate on-the-ground examination because of time of season

• Precursor to regular advertisement

• Published for not less than 30 days

• Not prepared in TIM

Regular Advertisement

• TIM automatically prepares the advertisement

• Must be clear, concise, and only essential details

• Any additional information should be in prospectus

• Sales of unusual interest may include some information ordinarily included in prospectus, but is not generated in TIM

Prospectus

• Generated in TIM

• For Stewardship sales, see FSH 2409.19

Chapter 60

• Required for all advertised sales over

$10,000

• Optional for sale under $10,000

• Two types

– Prospective Bidder Letter

– Prospectus

Prospective Bidder Letter

– Informs interested persons that a timber sale is being offered, and that a complete bid package is available upon request

– Must be delivered on or before the date of advertisement

• Specific Information about the sale

• Attracts interest to the sale offering

• Directs attention to new and changed procedures

• Furnishes information in addition to that contained in the advertisement or prospective bidder letter

• Has 20 Blocks to either populate through TIM or are canned information

• Reference 2409.18, Chapter 56.2

• 2. Bidding

– Sealed Auction

– Oral Auction

• Weighted Average Stumpage Rate Bidding

• Total Sale Value Bidding

• Generated in TIM

• Reference 2409.18, 58

• Sealed versus Oral Auction

• Types of Bid Forms o For 2400-3(S)(T)(P), 2400-4, 2400-6(T) FS-2400-14 UR – Unit Rate Bidding FS-2400-14TV – Total Sale Value Bidding FS-2400-14WA – Weighted Average Bidding o For 2400-13(T), Integrated Resource Timber Contract

(IRTC)

FS-2400-14BV – Best Value FS-2400-14BVU – Best Value Unit Rate o Advertisement and Short Bid Form FS-2400-42a For soliciting and receiving bids on short-noticed advertised sales. See FSH 2409-.18, 58.3.

Sample Contract

• 2400-6(T)

• 2400-13(T)

Summary

• Bid Package includes the advertisement, prospectus, and bid form

• Need to be up on TIM to generate these documents

Timber Sale Appraisal

History

1. General Land Law Revision Act of March 3,

2. Act of June 4, 1897 --- Organic Administration Act

3. June 30,1897 --- First Edition of “Rules and Regulations Governing Forest Reserves, Established Under Section 24 of the Act of March 3, 1891”

History – Part Deux

4. Transfer of Forest Reserves to USDA – February 1,

5. “The Use of the National Forest Reserves, Regulations and Instructions”

6. 1906 “Use Book” - Amended Appraisal Instructions

7. 1907 – Forest Reserves Renamed National Forests

History – Part Trois

8. 1907 “Use Book” - New Guidelines for

Determining Timber Values

9. Timber Sale Portion of the First National Forest Manual Issued 1911

10.1914 Timber Appraisal Manual

11.1922,1931 and 1956 Timber Appraisal Manuals

History – Part Quatre

12.1973 - TEA (Transaction Evidence

Appraisal) Tested for Pulpwood Sales on Chippewa and Hiawatha NFs in R9.

13.1976 - WO Approves TEA for Pulpwood on All Forests in R9 and Sawtimber on Five R9 Forests.

14.1978 - WO Approves TEA for All Sales in R9

History – Part Cinq

15.1979 – WO Approves TEA for All of R8 After Trial on R8 Mountain Forests in 1978.

16.1980 - Northern Region Begins Study of Regression Analysis TEA.

17.1983 - Senate Requests Appraisal Study

18.1983 - National Appraisals Working Group Established

History – Part Six

19.1986 - Region 3 Implements TEA

20.1996 – Regulations Revised to Eliminate Residual Value as the Primary Appraisal Method for All but Region 10

Appraisal Objective

• Fair Market Value

Rates

Types of Appraisal

1. TEA

2. Residual Value

3. Comparison

4. Standard Rate

5. Rate Redetermination

Types of Appraisal Special Appraisals

1. Damage

2. Trespass

3. Timber Property

4. Settlement

Differences/Similarities Between Regions Using TEA

1. Transaction Evidence Appraisal System

2. Standard Base Period

3. Sales Included in Data Base (assume all regions include only competitively sold sales)

4. Base Period Price (BPP)

5. Base Period Costs

6. Market Adjustment

7. Other adjustments – not tracked as a base cost (may not be used by all regions)

8. Roll-Back (Competition) Factor

9. Requirements for a 2400-17 (Appraisal

Summary Report)

10. Market Areas and Appraisal Zones

Additional Information About Unusual Adjustments

1. Definition

2. Distinct from “risk” adjustment

3. Direct Adjustment

4. Regional Differences

5. Caution

Regional Examples of Unusual Adjustments

– R1

• Extremely long skidding distances

• Costs associated with special C Provisions

– R2

• Burned Timber

• Deteriorating "Live" Timber

• Unusual Species and Form

• Move-in Adjustment

• Sorting and Handling Adjustment

• Skid Distance Adjustment

• Low Stump Requirement,

• High Risk.

Adjustments

– R3

• Green Lumber Haul - A $10/CCF cost adjustment made in lieu of appraising for a green lumber haul when a mill does not have a planer.

• Sawtimber rate adjustment to cover negative value of pulp in multi-product sales.

– R4

• Heavy bluestain in ponderosa pine sawtimber.

– R5: called “sale specific adjustment”

• Application of borate compound on stumps.

• Tillage of trails, temporary roads and landing.

Adjustments

– R6

• Portable toilets

• Swing units

• More than one intermediate support in a multi-span unit

• Truck assist for log haul

– R8

• Helicopter logging costs

– R9

• No haul on weekends

• Coordination required with highway reconstruction

Timber Sale Appraisal Report

• A Portion of the Timber Sale Report

• Documents Appraised Value Development

• Provides Enough Detail for Approving Officer to Support the Appraised Value

• Some Items to Discuss

Form 2400-17 Report of Timber Sale

• There are two sides of the 2400-17 form:

• Appraisal Summary Report Side

• Report of Timber Sale Side

B1.0 Sale Area Map

◦ Establishes the SAM boundaries and lists what needs to be identified on the SAM referencing applicable provisions

FSH 2409.18 Chapter 50 § 53.54 and Ex 1-4

◦ Establishes policies and standards for the SAM

B9.22 Contract Documents

◦ Establishes the order of precedence for contract documents.

Read these

Preferred scale is 1:15,840. 4in = 1 mi.

SAM intended to be B&W so that it can be copied by the purchaser. Colors may be used on supplemental maps.

SAM and the provisions must have the same info. …as shown on SAM.

Keep the map clean and uncluttered. Use a table if the field of the map gets to crowded.

Good example of this in the FSH.

B6.22 Protection of Improvements

◦ Important provision

Reference provisions by number only do not include additional information.

Use the SAM as a base for the KV and BD maps.

The SAM and Hazard Reduction Map are often combined on the same map.

◦ Purchaser responsibilities under C6.7

◦ “Sale area and hazard reduction and site preparation map” Do not include temporary road locations.

◦ Prepare those on a separate map for the sale administrators use. May include other info from the sale layout notes (unit cards).

Reference FSH 2409.19 Chapter 10 Also referred to as the Sale Area Improvement

(SAI) plan map A component of the SAI plan and often overlooked Typically a SAM that shows the SAI plan activities.

The sale area boundary and the KV boundary can be the same.

◦ If they are different both must be on the SAI map

◦ The KV boundary cannot be larger.

◦ The KV boundary cannot be greater than ¼ mile outside the cutting unit boundaries

42.23 Brush Disposal Treatment Plan Map

◦ Must be included (May be included in SAI Map) Shows Sale Area Boundary Specific location and extent of each BD project

Use SAI map as base layer of map.

Stewardship Authority 1984 to 1991

◦ Land Management Service Contracts LMSC’s

1992, Stewardship End-Results Contracts pilot on 2 Forests.

◦ Kaibab and Dixie

Pilot ended

1999 to 2003 5-year pilot authority granted, 84 projects 2003, 10-year authority granted, expiring in FY13 Extended with CR’s until Farm Bill made it permanent in 2014

Emphasis of Stewardship Trade goods for services Best value Goods are traded 1:1 for work

◦ No overhead costs

Land Management Goals

1. Road and trail maintenance or obliteration to restore or maintain water quality;

2. Soil productivity, habitat for wildlife and fisheries, or other resource values;

3. Setting prescribed fires to improve composition, structure, condition, and health of stands or to improve wildlife habitat;

4. Removing vegetation or other activities to promote healthy forest stands, reduce fire hazards or achieve other land management objectives;

5. Watershed restoration and maintenance;

6. Restoration and maintenance of wildlife and fish habitat;

and

7. Control of noxious and exotic weeds and reestablishing native plant species.

Only the Regional Forester has the authority to approve stewardship projects in the Region for the Forest Service.

Forests submit their proposals and they are reviewed

Proposals outline the project and activities Proposals need to meet the intent of the stewardship legislation.

Once approved the stewardship area is defined

Stewardship areas may be defined by

◦ geographic features e.g. a watershed.

◦ administrative e.g. district boundary.

Only the approved activities can occur in each stewardship area.

Difference between a stewardship and a timber sale contract Economics Timber sale

◦ Sold to highest bidder

◦ Excess money is returned to treasury and/or collected in trust funds

Stewardship

◦ Awarded on best-value basis

◦ No funds returned to treasury

◦ retained receipts

◦ Mandatory & optional work

Mandatory vs. optional work Two types of stewardship activities

◦ Mandatory – Top priority items

◦ Optional – Would like to do

A single item can be split between mandatory and optional

◦ 100 acres mandatory slashing

◦ 500 acres optional slashing

◦ Purchaser may bid 2 different prices for the same work

Retained Receipts Receipts

◦ Generated when timber is traded for work and visa versa.

◦ The contractor generates credit when they perform work and the FS generates receipts when timber is removed.

Excess receipts

◦ Are receipts left over on the contract after all the work is done. This is a positive balance to the FS.

Retained receipts

◦ The receipts that are moved into a forest account and

“retained “ for future use.

Stewardship contract types Types of stewardship contracts

◦ Integrated Resource Timber Contract (IRTC)

◦ Integrated Resource Service Contract (IRSC)

◦ Stewardship service contract

◦ Stewardship agreement

Integrated Resource Timber Contract (IRTC) Value of goods > than value of services

◦ Economically viable Timber sale

Cannot add additional dollars to it Generates retained receipts All the work is identified up front Work cannot be added after award Trust fund collections allowed (KV, BD) Davis-Bacon rates do not apply Administered the same as a timber sale

IRTC Economics Timber value (80K) Value of services (20k) Timber value-Services=

Excess or Retained receipts (60K)

Those receipts can be used for optional work items on the contract or on other stewardship projects.

Integrated Resource Service Contract (IRSC) Value of goods < than value of services Appropriated dollars and retained receipts can be added to it.

Does not generate retained receipts No trust fund collections Davis-Bacon rates apply to road construction.

Service contract Act wages apply to service work Can add additional work to the contract Indefinite Delivery Indefinite Quantity (IDIQ)

Complex administration

IRSC Project – Economics Total value of project =

$100,000

◦ Value = Timber value

(20K) + value services (80k)

Appropriated funding needed=(80K-20K) = 60k

◦ Funded with appropriated dollars and/or retained receipts

Stewardship Service Contract Common service contract implemented in a stewardship area Projects without timber removal Usually a single task or category of work, such as slashing (fuels work), road construction, planting, culverts etc…

There are many service contracts in place for reoccurring work (IDIQ)

Stewardship Agreement Contract between the FS and a partner(s) May or may not include timber removal All parties share a mutual interest and benefit 20% minimum funding by partner

◦ In-kind, non-cash, cash, etc…

◦ Partners contribution must commensurate with the benefits gained

◦ Remainder contributed by FS (80%) as cash or timber value

Stewardship Agreement

Contract consists of a master agreement with supplemental project agreements

(SPA)

Contract development is in cooperation with G&A, Forest, and the partners.

Work can be accomplished on non-FS lands that benefit the FS (Wyden amendment)

No trust funds or retained receipts

Stewardship Agreements (presented 2/18/15) o Modeled after the Partner Cost-Share Agreement Between the USFS and a Non-Profit organization, Agency or Tribe o Allows use of Stewardship authorities (10 yr. term, goods for services) o 20% minimum Partner contribution required o Administered by G & A Specialist and Resource Specialist o Timber CO sells and disposes of forest product at appraised value, through the Partner o Any forest product values offsets other costs (not counted as GOV’s share) o Service rates are often negotiated between the Partners.

Stewardship Agreements

Stewardship Agreements- cont.

o Modifications to the agreement can be made fairly easily

(requires mutual consent).

o Best value principles handed to partner, and other work components.

o Fiscal augmentation can occur;

• Appropriated funds

• In-kind contributions

• Partner derived funds o Funding does not need to be committed before agreement is made.

o Two Agreement template types

• Master Agreement with Supplemental Project Agreements (SPA)

• Single Agreements “stand alone”

Stewardship Agreement Templates http://fsweb.wo.fs.fed.us/fm/stewardship/contracts/index.shtml http://fsweb.wo.fs.fed.us/aqm2/wo/grants/Templates.php or

Master Stewardship Agreements components

• Identifies purpose

• Statement of Mutual Benefit

• States legal relationship between the partner and USFS

• Lists principal contacts

• Defines what is in the SPA

• Many “boiler plate” legal statements (FAR)

• Specifies Agreement close out

Incorporated Appendices

FS1500-21B_Financial Plan.xlsx

Seiler – Split Forest Restoration Project

Dixie National Forest Project funding:

• Value of goods =$50,000

• Forest Service cash = $240,000

• Partner Contribution $177,000

• Project Total = $467,000

Projects

• Aspen Regeneration

• Fuels Reduction

• Pre-Commercial Thinning

• Riparian System Restoration

• Fencing

Uncompahgre Stewardship Project

GMUG National Forests Project funding:

• Value of goods =$1,700

• Forest Service cash = $100,000

• Partner Contribution $26,350

• Project Total = $128,050

Projects

• Mark 900 acres for treatment

• Upgrade existing haul route

• Thin 52 acres of Ponderosa Pine

• 100 acres of winter range enhancement PJ density reduction (mastication):

Opportunity to Utilize Partner Resources

• In-kind contributions a.Expand organizational capacity b.Grants from non-federal source c.Third Party Contributions

• Goods for services

•Partner technical assistance

Benefits: More Resources to Implement Projects

• Bundling increases scale and scope of project

• Forest moves closer to meeting FLRMP goals

• Goods and services respond to local needs

• Multiple contractors involved

• Open and fair competition generates interest/support

• Long term, landscape scale commitment to work in those areas (10 year agreement terms).

•Provides long term opportunity for local contractors

• Project awarded with a Supplemental Project Agreement (SPA)

• The SPA can be modified based upon project conditions

• Provides both parties the opportunity to pursue other funding

• Simplifies acquisition process

• Promotes community involvement and interpretation

STEWARDSHIP AGRE

BENEFITS:

Rocky Mountain Region – Master Agreement with MDF

Timber Sale Report (TSR)

Handbook Direction Include sufficient written explanations of data sources and premises in the report.

The amount of detail needed depends on:

• Volume

• Value

• Complexity, and… the need to provide essential info to the approving officer (to support the appraised value).

Handbook Direction continued Items to discuss in the report:

1). Logging method, transportation, period of operation.

2). Factors that effect cost and value:

-location w/ respect to market/mills -appraisal point, haul distance -means and cost of transport 3). Deviations from appraisal zone averages, development of specialized costs.

Beyond Handbook Direction

Use of appraisal spreadsheets: Although this is a common and accepted means for summarizing cost information, supplemental narrative information is important and necessary to comply with the intent of the handbook direction.

Outline/Format: Elements to include (and/or consider including) in a TSR I. Summary of Recommendations (synopsis)

a. summarized volume by spp and product

b. total sale acres (treatment acres)

c. quadratic mean diameter (QMD)

d. advertised rates (FSH 2409.18, ch 55.3)

e. road constr costs and required completion date

f. required deposits

g. trust fund collections (ch 54.11)

h. contract term (contract section A15)

i. normal operation season (A16)

Outline/Format continued..

II. Description (of sale area)

a. location

i. legal description (contract section A1)

ii. gross/net acreage

b. transportation routes

c. appraisal points (by product)

TSR Outline/Format continued..

III. Conditions of Sale

a. planned cutting methods

i. Rx, designation, paint color

ii. boundary designation, method, paint color

b. SAI needs (FSM 2432.44)

c. slash treatment (FSM 2432.44)

d. water quality protection and erosion control

e. sale design features and mitigation

IV. Cruise Volumes

a. overview;

i. cruise method, timing, version, SE%

b. contract volume summary

i. crosswalk with cruise report info

ii. summarize by spp, product, live/dead component, pymt unit

iii. ROW volume for spec rd. clearing

c. area determination (FSH 2409.12, ch 50)

V. Appraisal

a. appraisal data

i. direction (FSH 2409.22)

ii. current appraisal bulletin #

iii. base period price or selling values

b. fall, buck, skid, yard costs (FSH 2409.18, ch 45.36a)

c. haul costs (ch 45.36b)

d. road maint costs; responsibility, deposits (including SRR)

e. slash disposal rqmts (Purch and/or deposits)

TSR Outline/Format V. Appraisal – continued

f. temp road needs, costs (FSM 2432.34b, FSH 2409.18, ch 43.2)

g. unusual adjustments ex: long skid, sort/handle, high risk (regional allowances)

h. competition factor, profit & risk allowance

V. Appraisal – continued

i. specified road costs (FSM 2432.34a, FSH 2409.18, ch 43.3)

j. base rates; by spp, product (FSH 2409.18, ch 45.42, 55.3, contract section A4)

k. fire precautionary period and Purch’s obligation calculation (contract A12-13)

l. termination date (contract- A15)

m. periodic payment calculation (contract sections; A19, B4.213)

V. Appraisal – continued

n. bid guarantee (FSH 2409.18, ch 55.1)

o. performance bond calculation (ch 55.1)

p. distribution of stumpage receipts

VI. Approval

a. signature page with blocks for preparer, reviewer, approver based on delegations of authority (FSM 2404.28, Exhibit 01)

TSR - Summary

Development of any given TSR and appraisal requires judgment by the appraiser to determine the level of detail needed to clearly document assumptions, rationale for cost allowances, and rationale behind other information that is incorporated into sale design, layout, and the contract.

Logging Plan

Handbook Direction:

No known FSH reference other than direction to discuss logging and transportation methods under FSH 2409.18, ch 48.

Logging Plan Outline/Format

Items to include (and items to consider including) in the logging plan:

I. Overview: Information pertinent to operating the sale.

a. introductory narrative; general info about the sale.

b. species and products involved

c. logging systems by unit (unit cards)

I. Overview – continued

d. transportation info;

i. road access (existing, new spec road construction, planned temp roads)

e. landings

i. planned locations

ii. skidding pattern/cable yarding design

f. calculations for avg skid/yard distances

g. special protection measures (skid/yard, timing restrictions)

II. Attach a MAP showing aforementioned items

a. cutting units

b. transportation system (including temp)

c. landing locations

d. protection features

Paper Plan Corridors, Roads, Landings, Profiles, Sensitive Areas, Yarding Distances

(Landscape Limits)

Trust Fund Management

Knutson-Vanderburg (CWKV/K2) Brush Disposal (BDBD)

Salvage Sale Fund (SSSS) Road Maintenance Deposits (CWF2)

Trust Fund History Trust Fund Policy Management Collection Accounting

So What’s the BOOK Say?

Authorities & Responsibilities

– FSH 2409.19 – Renewable Resources HB

– 2409.19 - Zero Code

– 2409.19 - 10 - CWKV Project Planning

– 2409.19 - 20 - CWK2 Project Planning

– 2409.19 - 30 - CWKV Collections, Costs, and Accounting

– 2409.19 - 40 - Brush Disposal Fund Collections, Costs, and

Accounting

– 2409.19 - 50 - Timber Sale Pipeline Restoration Fund

– 2409.19 - 60 - Stewardship Contracting

– 2409.19 - 70 - Salvage Sale Fund Collections, Costs and

Accounting

– 2409.19 - 90 - Budget and Finance Procedures For K-V, BD, and

SSF Collections

– FSH 7709.59_60 – Road Maintenance https://fs.usda.gov/wps/myportal/fsintranet/!ut/p/c5/pZDbjoIwFEW_ZT7AtA0X20eacvUyICDIi0FEJIDVkSnK1wsfIDOJ5zzurOzsBRIw_CUVZZG2Jb-kNYhBou5lupUN4krwGxkY2hirOnEoNK35kO_e5r4i_YeGb06DEzQkygf02O2ApKj5YdgYsawijK86prPzvacytUSj6eUxCrlEke0vglkkP3kmlCYnDGKsnZt7YVNyVGPVdZ6o6KFieGllluQhzF__xG4UeSi4rfb1zL7-ON3hxL22Xxp4MVdpK9A2WNZyJ21c-MDC2oUZiEb30y7HfGrvH77WFm9ycG3CMO7zaoO1rxcXQy6e/dl3/d3/L2dJQSEvUUt3QS9ZQnZ3LzZfNEJWNEY5UDMwTzFGODBJODg2RTlKQjBHSDc!/?subject=10015&topic=90011&target=60012801&view=chapter 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Knutson-Vandenberg (CWKV)

The Knutson-Vandenberg Act of 1930

– Establish forest tree nurseries and do all other things needful in preparation for planting on National Forests.

– To collect or to purchase tree seed or young trees, to plant trees, and to do all other things necessary for reforestation by planting or seeding National Forests and for the additional protection, care, and improvement of the resulting plantations or young growth.

Knutson-Vandenberg

– Require any purchaser of National Forest timber to make deposits of money in addition to the payments for the timber, to cover the cost to the United States of (1) planting (including the production or purchase of young trees, (2) sowing with tree seeds (including the collection or purchase of such seeds), (3) cutting, destroying, or otherwise removing undesirable trees or other growth, on the National Forest land cut over by the purchaser, in order to improve the future stand of timber, or (4) protecting and improving the future productivity of the renewable resources of the forest land on such sale area, including sale area improvement operation, maintenance and construction, reforestation and wildlife habitat management.

Knutson-Vandenberg

– Such deposits shall be covered into the Treasury and shall constitute a special fund, …… That any portion of any deposit found to be in excess of the cost of doing said work shall, upon the determination that it is so in excess, be transferred to miscellaneous receipts, Forest Service Fund. (16 U.S.C.

576b)

Knutson-Vandenberg CWKV (Cooperative Work)

Amended K-V Act in 1976 – NFMA Maintained 1930 types of work; added protection, improvement and maintenance of productivity of renewable resources.

Extended area covered to timber sale area Retained reforestation as the primary purpose for collection and expenditure of K-V funds

Congressional intent of amendment

– 1976 amendment extended the scope of sale area betterment beyond reforestation to include improvement of “other multiple use opportunities of timber sale areas…