B08_140L6325Q0044_-_Attachment_01_-_SOW.pdf

BLM Alaska – Solicitation – 140L6325Q0044

Statement of Work

Bureau of Land Management, Alaska Fair Market Value Assessment for Selected Mineral Commodities

SECTION A – INTRODUCTION

The contractor shall prepare a fair market value (FMV) mineral commodity evaluation report for the Bureau of Land Management (BLM), Alaska State Office, Anchorage, Alaska. The purpose of the report is to determine the FMV of federal mineral material commodities and the associated authorizations granted by contracts for removal of those materials from federal lands managed by the BLM, US Fish and Wildlife Service (FWS), and US Forest Service, Region 10 (USFS), across the state. BLM guidance will be used to determine FMV across the jurisdictions of each of the federal agencies. The contractor must be a certified mineral appraiser.

The BLM requires the preparation of a FMV evaluation of all mineral materials sold, which conforms to the requirements of BLM H- 3630-1 Mineral Materials Evaluation Handbook. It is expected that the FMV determination shall utilize a comparable sales approach for evaluating mineral material values. This evaluation will also be used by USFS and FWS to determine FMV for materials disposal on their respective managed lands. Data acquired through this contract will be shared with these other agencies.

Under Federal law and regulation, the BLM is responsible to determine when and where the disposal of mineral material resources will be appropriate on lands within its administrative jurisdiction. Sale of mineral materials from lands administered is to be no less than fair market value as required by federal regulations (43 CFR 3602.13). For purposes of this Statement of Work, the determination of FMV will be made through an evaluation conducted by a qualified contractor.

Evaluations must be updated as the market changes, and at appropriate intervals. Regulatory guidance can be found in 43 CFR §3600. General commodity appraisal information can be found in BLM Handbook H-3630-1.

The BLM and USFWS conduct similar mineral commodity evaluations for the disposal of mineral materials within their respective agency jurisdictions. Forest Service Manual FSM 2856 – Appraisal, is used to guide FMV determinations, while regulatory guidance is found in 36 CFR 228.43 and 36 CFR 228.48. The FWS, as a ‘sister’ Bureau within the Department of Interior, relies on the BLM guidance and its determination of FMV.

Responsibilities:

The contractor will be responsible for identifying the current FMV commodity prices for existing competitive mineral materials sales contracts.

The BLM, USFS, and FWS (the ‘Agencies’) will allow the Contractor to review relevant information in its possession. All data provided by the Agencies will be treated as public data unless the Contractor is notified that it is to be held strictly CONFIDENTIAL.

The U.S. Department of Interior Division of Minerals Evaluation (DME) is responsible for review and concurrence of evaluation methods for this report to ensure adequacy and defensibility. If evaluation procedures/methods cannot be justified or defended, a new market evaluation will be necessary.

All confidential materials provided by the Agencies will be returned and the Contractor will retain no copies.

Any derivative materials and/or work products, including computer spreadsheets and background work, will also be returned and not retained unless individually approved in writing by the Agency to be retained. All data, analysis, findings, software files, and reports will be provided to the Agencies and treated by the Contractor to be CONFIDENTIAL unless notified to the contrary.

Scope of Work For the FMV, a separate market rate sheet shall be generated for each applicable commodity category, by Market Area. Market Areas are regions in the State with similar supply and demand characteristics regarding material commodity sales and availability. For the BLM, logical market areas will be defined within each of the three districts—Arctic, Anchorage, and Fairbanks—and further subdivided as appropriate within each district.

Market Areas for the USFS will be based on the administrative boundaries of Ranger Districts within USFS-managed federal lands of the Chugach and Tongass National Forests.

The mineral materials subject to this evaluation may include detrital materials (sand, silt, sand and gravel) as well as various quarry-type materials (such as shot rock, crush rock, riprap, and armor stone). The specific commodities appraised will be based on current commodities sold within each of the USFS and BLM jurisdictions.

Generally, it is expected that the evaluation process will include the discovery of comparable sales, a field inspection of selected material sites as necessary during the summer of 2026, market formulation/study, preparation of a preliminary report detailing progress to date, foundational information collected, an updated schedule for technical analysis, and the final report completion. The final report will include commodity price lists and evaluation figures. All things considered, the final report is expected by January 2027.

Final estimations of FMV for will be reported as value per bank cubic yard.

The appraiser may need to review mineral material sites that are near federally-administrated lands, but not necessarily under the directed jurisdiction of the Agencies. The contract appraiser shall also have access to review information of public record in the Agencies possession.

SECTION B - SUPPLIES OR SERVICES

The contractor shall provide all necessary labor, supervision, equipment, materials, and supplies to produce the FMV report, in accordance with the specifications, terms and conditions contained herein. All data, assessments, findings, conclusions, recommendations, reports, and other items are to be kept strictly CONFIDENTIAL, and will remain so at the discretion of the Federal Government.

SECTION C - BLM FMV REPORT SPECIFICATIONS

General The FMV report shall follow commodity evaluation guidance and the format found in BLM H-3630-1 Mineral Materials Evaluation Handbook, where applicable, with supportable language to defend findings. After technical review, the DME will perform a third-party independent review and concur with the report in consideration of determining whether the contractor achieved all necessary processes, methods and procedures that achieve justifiable and defensible results. After approval of the final report, the contracting office can issue final payment.

The initial inspection and collection of data regarding mineral materials will be compiled into a draft mineral evaluation report. This draft report will contain progress to date, foundational information collected, and a projected schedule for technical analysis. A complete and itemized bill of cost should be included with the draft report.

Completed copies of the final report as described within this section will be delivered, along with an itemized bill of cost to the BLM. Deliverables and Dates may be found in Section F.

Report Contents The format of the report shall be of a professional quality in a manner acceptable to the BLM. The report shall contain the following information:

Part I - Introduction

A. Title Page

B. Table of Contents

C. Summary of Facts and Conclusions - The contractor shall report the major facts and conclusions that led to the final estimate(s) of value for each mineral material commodity.

1. Date of Evaluation

2. Property Ownership (e.g., fee federal estate, split estate with federal mineral estate, and non-federal surface estate, other)

3. General description of the geographic areas delineated (i.e., market areas)

4. Map illustrating the boundaries of the market areas

5. Brief property description of each site within the market area

6. Highest Value Use of Mineral Material

7. Unusual features of subject property

8. Summary of conclusions and final estimate of FMVs.

D. Statement of Assumption and Limiting Conditions - All assumptions and limiting conditions that apply to the evaluation of each mineral material commodity in the mineral material commodity FMV report shall be listed.

E. Scope of the Evaluation - The contractor shall describe the scope of investigation and analysis that was undertaken in preparing the mineral material commodity FMV report. Describe the visits, with dates, to the subject and comparable sites. Include the geographical area and time span searched for the market data. Also include a description of the type of market data researched, market accessibility and how the data was confirmed. State the references and data sources relied upon in making the evaluation. Show this information within the applicable approaches to value. Discuss the applicability of all standard approaches to value, and explain and discuss the exclusion of any approach (i.e., comparables, purchase price as a percent of retail sale price, and income methods).

F. The Purpose of the Evaluation - This shall include the reason for the evaluation, and the definition of all evaluation methods.

G. Summary of Evaluation Problems - The purpose of this section is to describe the specific evaluation problems encountered by the contractor that will be discussed in detail in the body of the FMV report.

However, explanation must be to the extent of obtaining reasonable and justifiable results and include supportable and defensible information.

Part II - Data Analysis and Conclusions

A. Definition of Market Value - The price given to minerals and materials in-place and as is, subject to evidence of prospective buyers and sellers; who are reasonably knowledgeable about the commodity;

who act in their own best interests; are free from undue pressure for completing the transaction; and a reasonable time period is given for the transaction to be completed.

B. Highest Value Use of Mineral Material Commodity - In the case of the Regional Mineral Material

Value Schedule update, the appraisal will form the basis for valuing mineral material commodities over broad geographic areas. While there may be some sites presently operating in these areas, other future sites have yet to be identified. In mineral material evaluations, the highest and best use analysis pertains to the mineral being appraised, not the land on which the material is situated. The intended use by an identified prospective purchaser may or may not be the highest and best use. In the case of the site-specific reports, the analysis will focus on determining value and use of those specific commodities, and rely on as broad or narrow a geographic area as necessary to obtain adequate market information.

C. Analysis of Market Boundaries - The contractor will present the theory and procedures involved in the identification of market areas within BLM Districts and if applicable, USFS Ranger Districts. The contractor’s methods and approaches in delineating distinct markets must be supported by factual data.

The contractor should consult minerals staff from the BLM and/or USFS in its efforts to delineate market areas. Viable hauling distances and availability of commodities to identified markets should be used in delineating market boundaries.

D. Other Definitions - Other terms of a technical or specialized nature are to be clearly defined. These may be included in the Addenda if the list is lengthy.

E. Discussion of Evaluation Process – The comparable sales approach for determining FMV will be typically utilized for this regional FMV evaluation; however, the percent of retail sales price or income approach may be used, if more applicable, for a market area. This section will present the theory and procedures involved in using the approach to determine FMV, as well as a description of the steps involved in a value assignment and why a particular approach was considered to be most applicable.

Base the opinion on an objective and fully described market analysis of the subject material’s suitability and the probable use which would be contemplated by typical buyers and sellers rather than an abstract remote possibility. Rationale for using or not using a particular evaluation process must be provided and the contractor should indicate the advantages of one methodology over another.

Comparable Sales Approach – In determining FMV of the subject property, the comparable sales approach is the preferred method. This approach should be used unless no comparable sales are available or the comparable sales are determined to be unacceptable. Sales from private, and federal, state, and local government sites must be described in sufficient detail to identify if they are comparable to the BLM sites, and the extent to which they are or are not comparable. Comparisons should focus on recent sales that have occurred within two years. Older sales may be used in the evaluation if the contractor shows correlation with the present market trend and if the contractor makes appropriate adjustments for market changes over time.

The following information should be identified for the comparable sales used in this report:

Date of sale:

Distance to market: Type of deposit:

Type of products sold or that can be sold: Production rates:

Sale price:

Rent paid to owner:

Other charges or sale costs, if any (e.g., fees, environmental analysis): Site operation authorizations:

Operating costs (mining, processing fees, and other costs):

Contingencies/conditions of sale, i.e., mining, reclamation, duration, and bonding requirements:

Ownership (private sector, governmental agency, split estate):

Include the most appropriate descriptive graphical information on each sale comparable including ground and or aerial photographs, plat maps and topographic maps each clearly labeled.

A Percent of Retail Sales Price – This method is a variation of the market approach used in situations where there is insufficient local market data. Lack of local market data may require substantial and difficult to support adjustments of data from different areas. If an analogous remote market can be identified, this method requires collection and analysis of transactions in similar areas (similar in value, overburden, rehabilitation costs, etc.). Where possible, both royalty and finished product retail sale price data is collected for the same site. This data is then used to derive a typical ratio of the purchase price to the selling price of the finished product f.o.b. at the desired location (i.e., the production site, retail yard, delivery point, etc.). This ratio is applied to the typical selling price of the finished product from producers where retail sale prices are available to arrive at an indication of the value of the in-place mineral materials.

Income Approach – This approach converts income into an estimate of value. Cash flow and discounted cash flow (DCF) are examples of this approach. The contractor will, as needed, perform cash flow analyses using well-established industry models and standards, as well as defend and support all data points.

F. Reconciliation - It is necessary to summarize the information presented in the FMV report. The contractor should reiterate the conclusions from the analysis of market boundaries and from the approach to value. The reasoning for selecting a final estimate of value should be sound and presented at this point. The final FMV estimate for each material should be reasonable and based on the data presented and reasoning involved.

G. Contractor’s Certification - The FMV report shall include a contractor’s signed and dated statement that the contractor, to the best of his or her knowledge and belief, certified that:

1. The statements of fact contained in the report are true and correct.

2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions, limiting conditions, and legal instructions, and are the personal, unbiased professional analyses, opinions, and conclusions of the contractor.

3. The compensation received by the contractor for the commodity evaluation is not contingent on the analyses, opinions, or conclusions reached or reported.

4. The commodity evaluation was determined and the evaluation report prepared in conformity with well-established industry standards and the BLM Handbook H-3630-1, where it applies and accompanied by as much as necessary supportable data to develop defensible results.

5. No one provided significant professional assistance to the contractor. If professional assistance was provided to the contractor, the name of the individual providing such assistance must be stated and his/her professional qualifications should be included in the addenda of the evaluation report.

6. The contractor’s certification shall also include the contractor’s estimate of the market value of the material commodities as of the effective date of the report. This certification is to be followed by the contractor’s signature and date.

Part Ill – Addenda

A. Commodity valued.

B. Title reports, etc.

C. Comparable sales location map - This map will show the location of sales used in estimating market value of the subject mineral material commodities. A separate map shall be prepared for each mineral material commodity. All sales for an individual commodity should be shown on one map if possible, but the map should be of sufficient detail that when combined with the plat maps, it could be used to locate the property with certainty by a third party. A series of maps may be needed to accomplish this. If data is confidential, the map should be marked “confidential.”

D. Comparable sales data sheets - Data sheets must be included on each comparable sale used in the

FMV report, as well as sales that were not comparable. Also, include comparable map(s) and photo(s) for each individual sale with that sale’s data sheet rather than in a separate section. If the sale data is confidential, the data sheet MUST be marked “confidential.”

E. Other material - Include pertinent documents, charts, maps, etc., not included in the exhibits listed above.

SECTION D - GOVERNMENT FURNISHED PROPERTY

The contractor shall have access to review information of public record in BLM possession. If required, a list of all existing disposal sites on BLM and USFS managed land in the state and spatial data are available upon request.

SECTION E - DELIVERIES OR PERFORMANCE

1. All contract tasks shall be completed and delivered to the Contracting Officer within 320 days after award is issued.

2. The initial inspection and collection of data regarding mineral materials at will be compiled into a draft evaluation report as required in Section F. This draft report will contain progress to date, foundational information collected, and projected schedule for technical analysis. A complete itemized bill of cost should be included with the preliminary report.

3. Completed copies of the final report as described within this request will be delivered, along with an itemized bill of cost to the BLM as specified in Section F.

Deliverables and Dates – The table below lists the contract deliverables along with the due date.

Deliverable Item Date

Draft Report - Data Collection and Draft Evaluationi:

1. Digital Copy provided to Project Manager and COR 210 days after Contract Award

Final Evaluation Reporti:

2. Digital copy, in-color, complete with figures/maps, to be provided to Project Manager and COR.

3. Six (6) Hardcopies, in color, with complete set of figures/maps provided to the Project Manager.

90 days after Draft Evaluation Report

BLM Report Acceptanceii iSubject to BLM’s internal and technical review process, typically within 2 weeks of receipt.

iiSubject to review and concurrence with DME, typically within 2 weeks of receipt.