Technical Assistance in Forestry Management - Final.pdf

STATE OF MARYLAND

DEPARTMENT OF NATURAL RESOURCES FOREST

SERVICE (DNR)

REQUEST FOR PROPOSALS (RFP)

TECHNICAL ASSISTANCE IN FORESTRY MANAGEMENT &

CERTIFICATION OF MARYLAND’S STATE FORESTS

RFP NUMBER K00R3600046

ISSUE DATE: FEBRUARY 17, 2023

NOTICE

A Prospective Offeror that has received this document from a source other than eMarylandMarketplace

(eMMA) https://procurement.maryland.gov should register on eMMA. See Section 4.2.

MINORITY BUSINESS ENTERPRISES ARE ENCOURAGED TO

RESPOND TO THIS SOLICITATION.

Technical Assistance in Forestry Management & Certification of Maryland’s State Forests

Solicitation #: K00R3600046

RFP Document

RFP for Department of Natural Resources Forest Service Page ii of 99

VENDOR FEEDBACK FORM

To help us improve the quality of State solicitations, and to make our procurement process more responsive and business friendly, please provide comments and suggestions regarding this solicitation.

Please return your comments with your response. If you have chosen not to respond to this solicitation, please email or fax this completed form to the attention of the Procurement Officer (see Key

Information Summary Sheet below for contact information).

Title: Technical Assistance in Forestry Management & Certification of Maryland’s State Forests

Solicitation No: K00R3600046

1. If you have chosen not to respond to this solicitation, please indicate the reason(s) below:

Other commitments preclude our participation at this time

The subject of the solicitation is not something we ordinarily provide

We are inexperienced in the work/commodities required

Specifications are unclear, too restrictive, etc. (Explain in REMARKS section)

The scope of work is beyond our present capacity

Doing business with the State is simply too complicated. (Explain in REMARKS section)

We cannot be competitive. (Explain in REMARKS section)

Time allotted for completion of the Proposal is insufficient

Start-up time is insufficient

Bonding/Insurance requirements are restrictive (Explain in REMARKS section)

Proposal requirements (other than specifications) are unreasonable or too risky (Explain in

REMARKS section)

MBE or VSBE requirements (Explain in REMARKS section)

Prior State of Maryland contract experience was unprofitable or otherwise unsatisfactory.

(Explain in REMARKS section)

Payment schedule too slow

Other: __________________________________________________________________

2. If you have submitted a response to this solicitation, but wish to offer suggestions or express concerns, please use the REMARKS section below. (Attach additional pages as needed.)

REMARKS:

Vendor Name: ________________________________ Date: _______________________

Contact Person: _________________________________ Phone (____) _____ - _________________

Address: ______________________________________________________________________

E-mail Address: ________________________________________________________________

RFP for Department of Natural Resources Forest Service Page iii of 99

STATE OF MARYLAND

DEPARTMENT OF NATURAL RESOURCES FOREST

SERVICE (DNR)

KEY INFORMATION SUMMARY SHEET

Request for Proposals Services - Technical Assistance in Forestry Management &

Certification of Maryland’s State Forests

Solicitation Number: K00R3600046

RFP Issue Date: February 17, 2023

RFP Issuing Office: Department of Natural Resources Forest Service (DNR or the

"Department")

Procurement Officer: Raelene Glasgow

580 Taylor Ave, B-4 e-mail:

Office Phone:

Raelene.glasgow2@maryland.gov

(410)260-8055

Proposals are to be sent to: Submit Via eMMA

Pre-Proposal Conference: March 2, 2023, at 1:00 p.m. Local Time

See Attachment A for directions and instructions.

Questions Due Date and Time March 15, 2023, at 1:00 p.m. Local Time

Proposal Due (Closing) Date and Time:

March 30, 2023, at 1:00 p.m. Local Time

Offerors are reminded that a completed Feedback Form is requested if a no-bid decision is made (see page iv).

MBE Subcontracting Goal: None

VSBE Subcontracting Goal: None

Contract Type: Fixed price

Contract Duration: Five (5) years base period with two (2) one-year option periods

Primary Place of

Performance:

Chesapeake Forest Office

6572 Snow Hill Road

Snow Hill, MD 21863

SBR Designation: No

Federal Funding: No

RFP for Department of Natural Resources Forest Service Page iv of 99

TABLE OF CONTENTS – RFP

1 Minimum Qualifications

1.1 Offeror Minimum Qualifications – Functional Area 2

2 Contractor Requirements: Functional Areas 1 & 2 Scope of Work

2.1 Functional Area 1: Technical Assistance in Forest Management - Summary Statement

2.2 Background, Purpose and Goals

2.3 Technical Assistance in Forest Management: Responsibilities and Tasks

2.4 Functional Area 2: State Forest Certification - Summary Statement

2.5 Background, Purpose and Goals

2.6 State Forest Certification: Responsibilities and Tasks

3 Contractor Requirements: General

3.1 Contract Initiation Requirements

3.2 End of Contract Transition – Functional Areas 1 & 2

SPECIAL TRANSITION REQUIREMENT FOR FUNCTIONAL AREA 1 – The following section of 3.2.1, I through III pertain to Technical Assistance in Forest Management

3.3 Invoicing

3.4 Liquidated Damages

3.5 Disaster Recovery and Data

3.6 Insurance Requirements

3.7 Security Requirements

3.8 Problem Escalation Procedure

3.9 SOC 2 Type 2 Audit Report

3.10 Experience and Personnel

3.11 Substitution of Personnel

3.12 Minority Business Enterprise (MBE) Reports

3.13 Veteran Small Business Enterprise (VSBE) Reports

3.14 Work Orders

4 Procurement Instructions

4.1 Pre-Proposal Conference

4.2 eMaryland Marketplace Advantage (eMMA)

4.3 Questions

4.4 Procurement Method

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4.5 Proposal Due (Closing) Date and Time

4.6 Multiple or Alternate Proposals

4.7 Economy of Preparation

4.8 Public Information Act Notice

4.9 Award Basis

4.10 Oral Presentation

4.11 Duration of Proposal

4.12 Revisions to the RFP

4.13 Cancellations

4.14 Incurred Expenses

4.15 Protest/Disputes

4.16 Offeror Responsibilities

4.17 Acceptance of Terms and Conditions

4.18 Proposal Affidavit

4.19 Contract Affidavit

4.20 Compliance with Laws/Arrearages

4.21 Verification of Registration and Tax Payment

4.22 False Statements

4.23 Payments by Electronic Funds Transfer

4.24 Prompt Payment Policy

4.25 Electronic Procurements Authorized

4.26 MBE Participation Goal

4.27 VSBE Goal

4.28 Living Wage Requirements

4.29 Federal Funding Acknowledgement

4.30 Conflict of Interest Affidavit and Disclosure

4.31 Non-Disclosure Agreement

4.32 HIPAA - Business Associate Agreement

4.33 Nonvisual Access

4.34 Mercury and Products That Contain Mercury

4.35 Location of the Performance of Services Disclosure

4.36 Department of Human Services (DHS) Hiring Agreement

4.37 Small Business Reserve (SBR) Procurement

4.38 Maryland Healthy Working Families Act Requirements

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5 Functional Areas 1 & 2 - Proposal Format

5.1 Two Part Submission

5.2 Proposal Delivery and Packaging

5.3 Volume I - Technical Proposal

5.4 Volume II – Financial Proposal

6 Evaluation and Selection Process

6.1 Evaluation Committee

6.2 Technical Proposal Evaluation Criteria

6.3 Financial Proposal Evaluation Criteria

6.4 Reciprocal Preference

6.5 Selection Procedures

6.6 Documents Required upon Notice of Recommendation for Contract Award

7 RFP ATTACHMENTS AND APPENDICES

Attachment A. Pre-Proposal Conference Response Form

Attachment B. Financial Proposal Instructions & Form

Attachment C. Proposal Affidavit

Attachment D. Minority Business Enterprise (MBE) Forms

Attachment E. Veteran-Owned Small Business Enterprise (VSBE) Forms

Attachment F. Maryland Living Wage Affidavit of Agreement for Service Contracts

Attachment G. Federal Funds Attachments

Attachment H. Conflict of Interest Affidavit and Disclosure

Attachment I. Non-Disclosure Agreement (Contractor)

Attachment J. HIPAA Business Associate Agreement

Attachment K. Mercury Affidavit

Attachment L. Location of the Performance of Services Disclosure

Attachment M. Contract

Attachment N. Contract Affidavit

Attachment O. DHS Hiring Agreement

RFP for Department of Natural Resources Forest Service Page vii of 99

Attachment P. BIWEEKLY MEETING SUMMARY (Sample)

Attachment Q. FUNCTIONAL AREA 1 - CONTRACT COMPLIANCE CHECKLIST

Corporate Diversity Addendum……………………………………………………………….96

Appendix 1. – Abbreviations and Definitions

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1 Minimum Qualifications

1.1 Offeror Minimum Qualifications – Functional Area 2

The Offeror must provide proof with its Proposal that the following Minimum Qualifications have been met:

1.1.1 For State Forest Certification - Functional Area 2: The Offeror must be accredited by the Forest

Stewardship Council (FSC) General Accreditation Standard (FSC-STD-20-001) to perform an audit. The Offeror must also be able to demonstrate conformance with current Sustainable

Forestry Initiative (SFI) Section 10: SFI 2022 Audit Procedures and Auditor Qualifications and

Accreditation. As proof of meeting both requirements, the Offeror shall provide proof of current accreditation / certification to audit Forest Management certificate holders to the FSC and/or SFI programs and standards. Include date of accreditation and copy of letter or certificate issuing accreditation notification.

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

RFP for Department of Natural Resources Forest Service Page 2 of 99

2 Contractor Requirements:

Functional Areas 1 & 2 Scope of Work

2.1 Functional Area 1: Technical Assistance in Forest Management - Summary

Statement

2.1.1 The Department of Natural Resources Forest Service (DNR or the "Department") is issuing this

Request for Proposals (RFP) seeking the services of a Land Management Contractor. The Land

Management Contractor is to provide technical forest management and forestry assistance as it relates to the sale of forest products, the implementation of silvicultural activities and cultural treatments, and adherence to Certification protocols on the lands of Chesapeake Forest and

Pocomoke State Forest. The Land Management Contractor is retained to provide both the field support and management required to complete activities as designated in each annual work plan.

2.1.2 It is the State’s intention to obtain goods and services, as specified in this RFP, from a Contract between the selected Offeror and the State.

2.1.3 The Department intends to make a single award as a result of this RFP. See RFP Section 4.9

Award Basis for more Contract award information.

2.1.4 An Offeror, either directly or through its subcontractor(s), must be able to provide all goods and services and meet all of the requirements requested in this solicitation and the successful Offeror

(the Contractor) shall remain responsible for Contract performance regardless of subcontractor participation in the work.

2.2 Background, Purpose and Goals

2.2.1 History of Current Activities: Since 2002 Chesapeake Forest Lands have been under a Land

Management contract. The current contract expires on August 31, 2023. The Land Management contractor selected through this RFP and awarded the new contract will work with the incumbent contractor to assume on-going operations and provide for a smooth and efficient transition. This includes the assumption of existing operations implemented through the current CFL & PSF annual work plan.

2.2.2 Description of Property - The Chesapeake Forest comprises 75,760 acres broken out into 187 management units located in Caroline, Talbot, Dorchester, Wicomico, Worcester and Somerset

Counties. Pocomoke State Forest comprises 18,492 acres broken into 15 management units with the majority of the lands located in Worcester County with small portions in Wicomico and

Somerset Counties. Additional information on each State Forest along with detailed management plans can be found on the DNR-Forest Service website at:

http://dnr.maryland.gov/forests/Pages/mdforests.aspx

2.2.3 Summary of Goals and Objectives for Chesapeake and Pocomoke State Forest:

2.2.3.1 To create a sustainable Forestry Project that is economically self-supporting and contributes to both state and local economies.

2.2.3.2 To implement land management strategies that support abundant and diverse plant and animal life, improve water quality, and provide recreation opportunities.

http://dnr.maryland.gov/forests/Pages/mdforests.aspx

RFP for Department of Natural Resources Forest Service Page 3 of 99

2.2.3.3 To implement land management strategies that will result in Chesapeake and Pocomoke

State Forest being eligible to retain dual forest certification under both FSC and SFI

Standards.

2.2.4 Contract Types and Fees: This contract is made up of management activities performed and priced under a Fixed Price that is referred to as the ‘Base Fee,’ and completed Annual Work Plan

(AWP) project activities referred to as ‘Implementation Fees’ that are performed and priced under a Fixed Price Indefinite Quantity for payment of completed projects determined by ‘acre’ increments. Eligible Expenses are a third category that are simply Cost-Reimbursement at cost for eligible expenses.

The Base Fee and Implementation Fee are priced in the Attachment F-Price Proposal by fiscal year. The prices approved at contract award by fiscal year are the prices to be utilized in the contract. Eligible Expenses are NOT priced on Attachment F since these costs vary year to year and are tied to Annual Work Plans (AWP) developed by the Department. All payment of fees and eligible expense reimbursements are paid based on the revenues generated by the forestry activity related to the contract.

2.2.4.1 Base Fee: Based upon a Fixed Price as priced on a fiscal year basis. It is paid to the contractor based on a payment schedule (see Section 3.3.7) that includes but is not limited to the activities listed below. The Base Fee shall include any related overhead, in-direct costs, or fee related to the provision, implementation, and maintenance of the activity:

Activities that fall under this category include but are not limited to:

1) Project and Contract Management, including Contract support personnel

2) Implementation of the Annual Work Plans to include budgeting, reporting, any amendments thereof, as well as meetings

3) Financial accounting, books and records keeping, all invoicing, and participation in audits

4) Forest Management Services that includes Regeneration harvest and intermediate thinning operations; post-harvest and thinning operations; site preparation and regeneration;

cultural treatments; and road maintenance and/or construction

5) Forest Certification includes preparation and participation in annual field audits carried out by FSC and SFI auditors.

6) Data Collection/Forest Inventory & Mapping that includes data collection and inventories of environmentally sensitive sites, and quarterly updates of mapping and standing data information

7) Subcontract Management, which includes the tracking of all harvesting activities performed by logging companies which involves maintaining records of tonnage harvested by operator and delivered to mills on a weekly basis.

8) Insurance requirements

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9) All transition planning and implementation

10) Contract closeout planning and implementation, and ownership of data/records

11) Payment of Expenses and Fees/Invoicing

12) Payments to all subcontractors and maintaining records of all payments made.

2.2.4.2 Implementation Fee [See Section 2.3.12]: Is Indefinite quantity with fixed unit pricing, this fee is a fully loaded rate by fiscal year for the work designated under this area. ‘Fully loaded’ means that the rate includes all overhead, in-direct costs and any related fee. This rate by fiscal year approved at contract award is the amount paid to the contractor for each acre where projects are completed and documented within the State’s Annual Work Plans and associated Contractor’s Annual Budgets. The Annual Work Plans forecast approximately 2,500 acres per year wherein work activity will be completed. The State only makes payment for each acre once the work activity for that acre has been completed and based upon what has been forecasted and documented within the AWP's for that acreage. In addition, the implementation Fee would cover any prescribed work that is completed for acreage that the State adds during the course of the contract.

2.2.4.3 Eligible Expenses Reimbursement [See Section 2.3.13]: Eligible Expenses are Cost-

Reimbursements paid at cost with no contractor fees attached, which includes but is not limited to expenses incurred by the contractor for payments in subcontracting forest project activities or purchasing materials to implement silvicultural activities. The contractor is responsible for all work delineated in the RFP to include any delegated work to sub-contractors. Examples are: subcontracting aerial applications of herbicides, subcontracting logging (Cut & Haul expenses), purchasing or contracting materials and equipment for logging and road establishment. These eligible expenses are reimbursed at their costs and passed to the State without any additional contractor overhead costs, indirect costs, or fees added. Copies of invoices required for reimbursement of eligible expenses. Eligible

Expenses will vary year to year and are based on activities as outlined in each Annual

Work Plan (AWP) that is developed by the Department.

For informational purposes only, approximate prior Fiscal Year Eligible Expenses from a previous contract:

Eligible Expense FY12 FY13 FY14 FY15

Cut & Haul (Logging

Expenses) $890,320 $575,376 $717,838 $737,191

Land Management Expenses $43,720 $79,394 $75,857 $75,893

2.3 Technical Assistance in Forest Management: Responsibilities and Tasks

The Contractor shall be responsible for providing experienced staff and technical expertise for managing silvicultural operations on CFL & PSF, to meet specified deadlines, for assuring the technical quality of all work and products and providing the material resources necessary to meet project requirements.

RFP for Department of Natural Resources Forest Service Page 5 of 99

The Offeror shall have a minimum of two personnel that would be able to retain a license from the

Maryland Board of Licensing as a Licensed Professional Forester. Proof of meeting this requirement, the

Offeror shall provide either a copy of such license or proof that the personnel meet both the educational and experience requirements in order to obtain the license.

The following sections 2.3.1 through 2.3.11 are activities covered under the Base Fee.

2.3.1 STAFFING REQUIREMENTS

2.3.1.1 The Contractor in their proposal must document experience in all areas of timber sale administration, forest management, silvicultural practices, specifically including but not limited to, the following categories.

A) Timber Sale Administration*

1. Timber sale contract development

2. Forest Product values

3. Logging techniques

4. Logging inspections

5. Best Management Practices (BMP)

6. Master Logger Program

* Must adhere to state timber sale administration guidelines as per MD DNR Forest Service - Timber

Operation Order 2022-601, effective 2/24/2022, and BPW Advisory No: 2005-2, Forest Products Sales

Policy Copies of both documents available from the State Forest Manager

B) Forest Management: Timber Inventory Techniques & Silvicultural practices as follows:

1. Reforestation & natural regeneration

2. Commercial & pre-commercial thinning

3. Forest fertilization

4. Regeneration harvest types

5. Chemical release work

6. Forest road layout

7. Site preparation methods

8. Mapping experience utilizing GPS equipment.

9. G.I.S. experience utilizing ArcMap Software

2.3.1.2 The Contractor shall provide staffing as outlined below during the term of the contract.

1) Project Manager: The Contractor shall provide for a single point of contact, namely the

Contractor's Project Manager that has the authority and capability to address all issues as they arise during the life of the contract. The Project Manager shall provide examples of experience performing management of projects with similar size and/or complexity as required in the RFP. The Project Manager at a minimum must have a BS Degree in a field of forestry and be licensed by the Maryland Division of Occupational and Professional

Licensing as a Professional Forester. The Contractor must document at least four years of experience for the Project Manager in forest management, including experience involving the sale of forest products.

RFP for Department of Natural Resources Forest Service Page 6 of 99

2) Field Forester: Under supervision of a Project Manager, carries out field assignments associated with this RFP. The Field Forester at a minimum must have a B.S. Degree in the field of forestry and be licensed by the Maryland Division of Occupational and Professional

Licensing as a Professional Forester. The Contractor must document a minimum of two years of experience for the Field Forester in forest management.

3) Field Technician: Under supervision of the Project Manager carries out assignments such as data collection, data entry, logging inspections and field activity support. Requires an A.S.

Degree in Forestry or equivalent forestry field experience. The Contractor must provide documentation showing experience in field data collection, logging inspections and any other forestry field work.

4) G.I.S. Position: Either identified as a separate staff position or specifically demonstrated under experience for one of the above-described positions. This person shall have experience in utilizing ESRI ArcGIS software specifically in ArcMap, Catalog and Tool Box as components, using version 10 or most current versions. The Contactor must provide documentation of all GIS experience for the individual that will be performing the duties as listed under this position.

2.3.2 CONTRACT MANAGEMENT

2.3.2.1 Contract Kick-Off Meeting: Within fifteen (15) business days after contract award and execution, the Contractor shall meet with the State MFS representatives in a Contract

Kick-off Meeting. The Contractor shall be prepared to discuss all aspects of the new contract. The discussion will include contact information for applicable State and

Contractor personnel, contract transition and implementation, the State’s Annual Work

Plan, the Contractor’s Annual Budget, the contract deliverables (format and timing for submission) along with the Contract Compliance Checklist.

2.3.2.2 Maintain Local Presence - Location: Because of the extensive interaction required between the contractor, MFS staff, other MFS contractors, other government agencies, and other DNR divisions, a locally staffed field office by the Contractor is required to be located within 40 miles of the State Forest Manager field office that is located at 6572

Snow Hill Road, Snow Hill, Maryland.

2.3.2.3 Required Computer Software and GIS System: The Contractor shall maintain all information collected under the contract using Microsoft software (Word, Excel, Access) and all mapping and database management activities required under the contract shall be done utilizing ESRI software, Arc GIS with Arc Map, Catalog and Tool Box as components, using version 10 or most recent revision.

2.3.2.4 Contract Compliance Checklist: The Contractor or his designated representative must participate in a meeting every two weeks with the Contract Monitor to review work carried out under this contract. At this meeting a Contract Compliance Checklist should be completed by the Contract Monitor to verify work accomplishments by the contractor related to the AWP. At this biweekly meeting, the contractor will also provide a detailed summary of current, started, and recently completed harvests, as well as miscellaneous activities completed in the previous two weeks. The Contract Compliance Checklist will be the document used to verify payments to the Contractor for work done as specified in

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Section 2.3.11 through 2.3.13. See sample Biweekly Meeting Summary, Attachment “P”;

and Contract Compliance Checklist, Attachment “Q”.

2.3.2.5 Contractor Expenses: The Contractor is responsible for payment from the Contractor’s own income of all expenses, other than Eligible Expenses, incurred by the Contractor in operating its business (“Contractor Expenses”), including but not limited to expenses for:

1) Salaries, benefits, training and travel expenses of the Contractor’s employees and subcontractors.

2) Office Space: Office and business equipment used in fulfilling Contractor responsibilities, including motor vehicles and maintenance, office equipment, computers, associated software and furniture, and equipment used for mapping, burning, and inventorying.

3) Communication expenses, including telephones, faxes, postage, shipping expenses and the cost of oral and written reports communicating information about the Property and its management.

4) Financial, accounting expenses required pursuant to the terms of this contract and Insurance expenses.

5) Expenses associated in assisting with the development of the Annual Work Plan and with the supervision and monitoring of activities in the Annual Work Plan and Budget; and,

6) Expenses associated with providing required documentation for payment of all invoices.

7) Expenses related to establishing & maintaining a Bank Line of Credit to pay Eligible Expenses.

2.3.2.6 Performance Standards of Contractor and Staff: The Contractor shall exercise reasonable care in performing the Scope of Work hereunder.

1) Activities undertaken by the Contractor and its employees, agents, contractors, and sub-contractors shall be performed in a manner that adheres to the FSC Principles and Criteria as outlined in version 5. The standards can be found at the following website:

https://fsc.org/en/forest-management-certification

2) All work performed by the Contractor and its employees, agents and subcontractors shall done in a diligent, competent and professional manner, and in accordance with all applicable laws.

All work activities performed by the Contractor and its employees, and subcontractors shall also adhere to the SFI standards, which can be found at the following website:

https://www.forests.org/forestmanagementstandard/

3) The Contractor shall ensure that the Scope of Work shall be performed in a timely manner in order to complete AWP projects as specified. The Contractor shall also ensure that the Scope of

Work is performed in accordance with the approved “Annual Work Plan”, as may be amended as necessary pursuant to the provisions of Section 2.3.6

2.3.3 SUBCONTRACT MANAGEMENT

2.3.3.1 Contracting Services: The Contractor is responsible for all contracting services as describe below.

1) Selection of Subcontractors: The Contractor shall be responsible for the selection of subcontractors, utilizing selection methods that will ensure that the subcontractors have the requisite experience, competence and professional expertise needed to perform the quality of work required by this RFP. The MFS encourages the Contractor to give selection preference to https://www.forests.org/forestmanagementstandard/

RFP for Department of Natural Resources Forest Service Page 8 of 99 the extent possible to Subcontractors based in the local community that qualify as minority-owned business or certified small businesses. All Subcontractors will be deemed independent contractors and not employees of the Contractor or MFS. Subcontractor selection shall be aimed at negotiating fiscally responsible financial terms to ensure that CFL and PSF are operated as an economically self-supporting project. The Contractor shall not have an ownership interest in, or in any way be legally or financially affiliated with any Subcontractor selected to perform work hereunder.

2) Negotiation of Subcontracts: The Contractor shall negotiate prices, the scope of work, timing requirements and other contract terms and conditions, and draft written agreements with all

Subcontractors. If so, requested by the MFS, the Contractor shall develop form subcontracts for use in subcontracting, and make the forms available for review and comment by the MFS.

3) Responsibility for Contract Obligations: The Contractor shall be the contracting party under all subcontracts and shall be responsible for all obligations and payments due there under. The

Contractor shall submit to the Contract Monitor on a weekly basis an invoice for re-imbursement by the State for all Eligible Expenses to meet its financial obligations under Subcontracts, as more particularly described in Section 2.3.13. See section 3.3 for Invoice Information. The

Contractor shall not commit to financial obligations greater than those identified in the MFS approved Annual Work Plan and Budget. Failure to adhere to this requirement will be grounds for contract termination.

4) Monitoring of Performance under Subcontracts: The Contractor shall monitor the work and progress of Subcontractors to ensure quality work and compliance with terms and provisions of

Subcontracts. The Contractor shall review Subcontractors’ invoices for accuracy, make payments to Subcontractors when due, and maintain accurate accounts of all transactions. The Contractor shall be responsible for enforcing all Subcontracts, providing notices of default, monitoring cures of default, and pursuing actions necessary to ensure compliance with Subcontracts.

2.3.3.2 Payments to Subcontractors and Maintaining records of Payments made.

1) The Contractor is required to pay all Subcontractors that carry out work as specified under the

AWP and the Annual Budget. The Contractor must maintain records of all invoices paid which will be used as documentation for payments of Eligible Expenses as outlined in sections 2.3.13

& 3.3.5.

2) When Logging subcontractors are hired by the Contractor, the following additional records for the Wood Settlement process must be maintained for the Contractor to be paid the Cut & Haul expense:

a) The actual wood settlement from the mill or chip mill where the timber was delivered.

Retain a record of the printout generated by the scale house at the mill where the wood is delivered. For the wood buyers that have older scale systems retain copies of scale tickets and a settlement summary.

b) The logger load sheet. Maintain a load sheet filled out by the logger that indicates the product and destination of the load when it leaves the woods. Once delivered the logger must fill in the scale ticket number information. This should then be reconciled with the actual scale tickets received from the mill. These records must also be maintained should a mill require verification that this was FSC certified wood. FSC chain of custody audits, require this verification.

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c) The “Logger Wood Settlement Worksheet” which lists the number of loads, product, tons, and cut & haul price due the logger. This is information must be provided as documentation for reimbursement of the Cut & Haul Expense to the Contractor. This sheet must also include the amount of State Timber Revenues sent to the State Account either by direct deposit or check. The State Revenue amount must be omitted from any information provided to the logger as part of their payment settlement.

d) The “State Timber Revenue Deposits” verification sheet the State Contract Monitor will provide copies of all State Timber Revenue deposits generated through this contract to the

Contractor. The deposits must be verified by the Contractor as to their accuracy against the

Wood Settlement Worksheet as noted in c. above.

e) For all other logging operations that are contracted through the Buyer of the wood products, the Contractor must maintain records as specified in section 2.3.3.2 with the following exception: The Wood Settlement Worksheet would only record number of loads, product, and tons. The sheet should still include the amount of State Timber Revenues sent to the

State Account either by direct deposit or check unless the buyer purchased the wood products as a lump sum amount. In this case the revenue amount would not be listed.

Contractor verification of State Timber Revenue Deposits would still be handled as noted in d) above.

f) The Contractor may suggest modifications to the process as outlined in Section 2.3.3.2, but any changes in the process will require written approval by the Contract Monitor.

2.3.4 IMPLEMENTATION OF THE ANNUAL WORK PLAN

2.3.4.1 Annual Work Plans Prepared by the State and Annual Budgeting Prepared by the

Contractor: The Annual Work Plans for the upcoming fiscal year are prepared by the State

(MFS). On an annual basis, the Contractor prepares its Annual Budget based upon that applicable year’s Annual Work Plan for that fiscal year.

2.3.4.2 The State’s Annual Work Plan and the matching Contractor’s Annual Budget are completed in advance of the applicable fiscal year. Within the first ten (10) business days after contract execution by DNR, the Contractor shall meet with State and incumbent-contractor representatives to receive information on the existing Annual Work Plan’s budget for that fiscal year. (See also Transition Plan, Section 3.2)

1) For the Contract Kick-off meeting, held within fifteen (15) business days after contract execution, the Contractor must provide their assessment of the existing Contractor’s Annual

Budget and the State's Annual Work Plan.

2) Thereafter during the term of the contract, the State will provide its Annual Work Plan for the upcoming fiscal year approximately April 1 to the Contractor. The Contractor must provide a matching Annual Budget as directed by the Contract Monitor by approximately June 1st.

2.3.4.3 The MFS’s Annual Work Plan for Forest management activities shall be governed by the

AWP's prepared by the MFS, and the Annual Budget prepared by the MFS Contractor and approved by MFS. The Contractor’s performance of the Scope of Work shall be done in accordance with the terms of this RFP. All activities associated with the Scope of Work

RFP for Department of Natural Resources Forest Service Page 10 of 99 shall be identified in the MFS AWP and the Contractor’s Annual Budget and approved by

MFS prior to commencement of work. The Annual Work Plan and Contractor’s Budget serves to organize the activities and approval process for the Contractor. The Contractor is responsible for evaluating potential activities, preparation of the proposed Annual Budget, implementation of the approved Annual Work Plan and Budget, all as more fully described in Section 2.3.5 through 2.3.11 of this RFP. Unless explicitly approved by the

MFS or stated otherwise in the Contract, the Contractor shall not undertake activities or programs not approved as part of the Annual Work Plan and Budget.

2.3.5 CONTRACTOR’S ANNUAL BUDGET

Within thirty (30) days of receiving the approved Annual Work Plans (AWP) for CFL and PSF, the Contractor shall deliver to the MFS for review and approval a proposed Annual Budget for each year during the Term. The MFS shall review and provide comments on the Budget in accordance with and pursuant to the time frames and schedule set forth under Section 2.3.5.3 of this RFP. The

MFS shall exercise good faith in its review, negotiation, and approval of the proposed Annual

Budget. Notwithstanding the foregoing, the MFS reserves the right to approve and establish the final terms and conditions of the Contractor’s proposed Annual Budget, in accordance with the

Goals and Objectives for the Property (Section 2.2.3), which approval shall not be unreasonably withheld.

2.3.5.1 The Annual Budget shall contain the following information:

1) Annual financial budget projections, containing anticipated state revenues from proposed timber sales. Revenues shall include all income earned from timber harvest and thinning activities, associated with the Property and approved by the MFS pursuant to the Annual

Work Plan;

2) Cost associated with Road construction and repair and maintenance related to

Silvicultural Operations;

3) Contract Fees, which are the Base Fee, (as provided by Notice-To-Proceed), plus the

Implementation Fees as determined under Section 2.3.12 of this RFP;

4) Cost associated for work completed by utilizing any services provided by subcontractors, such as road work, reforestation, pre-commercial thinning, application of herbicides, including services for timber harvest or thinning operations known as the cut and haul expenses;

5) Anticipated costs for any materials to be purchased by the Contractor and listed as an eligible expense under Section 2.3.13 of this RFP; and,

2.3.5.2 Balanced Budget Required

1) Annually the Contractor is required to propose a balanced budget in connection with its management of the Property, unless otherwise allowed by the MFS. The Contractor’s proposed Budget shall project a positive cash flow, unless otherwise pre-approved in writing by the MFS.

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2) If during the course of the year, a negative cash flow develops during implementation of the CFL or the PSF Annual Work Plan, the Contractor shall identify in Quarterly Reports prepared pursuant to Section 2.3.8, activities in the CFL & PSF Annual Work Plan to be deferred in order to avoid and prevent managing the Property at a deficit.

3) Adjustments made in the CFL & PSF Annual Work Plans to avoid or correct a negative cash flow from the Property, shall be documented in an amendment to the Annual Work

Plans and submitted to the MFS for approval. The MFS will respond in writing within ten

(10) business days as to approval or to request additional information from the contractor.

See Section 2.3.6.

2.3.5.3 Schedule for Submitting and Approving the Annual Budget

Annual Budgets for each year of the Agreement are in effect from the first (1st) of July to the following thirtieth (30th) of June for each year during the term. The Contractor shall submit a draft budget to the MFS at least one month in advance but not later than the first

(1st) of June. The MFS will review the draft budget and then discus and finalize any changes prior to the end of June in each year of the contract. Note: For the first year of the new contract the Contractor will assume the existing budget prepared by the incumbent contractor and negotiate and changes within the first 30 days of the new contract.

2.3.6 AMENDMENTS TO ANNUAL WORK PLAN & BUDGET

2.3.6.1 The Contractor may make recommendations to the MFS about revising the Annual Work

Plan and Budget during the course of a Fiscal Year to address and take advantage of unforeseen situations such as a change in market or weather conditions, and in order to balance the Budget for the Annual Work Plan. Any Amendments to the Annual Work Plan and Contractor’s Budget, agreed to by the MFS, shall be acknowledged in a written instrument signed by both parties.

2.3.6.2 In the event of catastrophic situations, including but not limited to weather events, insect and disease infestations, wildfire or major market changes, MFS and Contractor agree time is of the essence and shall make a reasonable effort to immediately meet to review the situation and, agree to and implement necessary changes to the Annual Work Plan and

Budget.

2.3.7 DISPOSITION OF STATE TIMBER REVENUES

2.3.7.1 All State Timber Revenues received from the sale of forest products must be deposited into a state account as directed by the Contract Monitor. Deposits can be done by forest product companies either through direct deposit or by sending a company check to the

Contract Monitor.

2.3.7.2 All timber revenues either submitted via direct deposit or by check must have supporting documentation indicating tonnage purchased by the forest products company. The contractor will verify all timber revenues via records maintained for all harvest activities.

2.3.8 QUARTERLY REPORTS

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2.3.8.1 The Contractor shall provide to the MFS, work activity, timber revenue and expense reports within thirty, (30) days of the beginning of each Fiscal quarter, for activities conducted during the preceding Fiscal quarter (the “Quarterly Reports”). The Quarterly

Reports shall contain a narrative description of on-going activities specific to each forest

(CFL & PSF).

2.3.8.2 The Quarterly Reports shall contain a full accounting of all financial transactions involving both State Forests (CFL & PSF) and this Agreement, including a summary of the actual Expenses incurred and State Timber Revenues earned, as compared to estimated

Expenses and projected Revenues set forth in the then current Annual Work Plan and

Budget.

2.3.9 REQUIRED MEETINGS

2.3.9.1 The Contractor is required to meet with the Contract Monitor or his designated representative at a minimum every two weeks. The meeting is to review work carried out under the previous two weeks of the contract. At this meeting, the contractor will provide a detailed summary of current, started, and recently completed harvests, as well as miscellaneous activities from the previous two weeks of the contract. A Contract

Compliance Checklist should be completed by the Contract Monitor at each meeting and retained on file and used to certify payments of the Base Fee, Implementation Fee and

Eligible Expenses.

2.3.9.2 A quarterly meeting, which may supplement one of the two monthly meetings, is required within ten (10) business days after the end of each Fiscal quarter. This meeting will verify the work accomplished by the contractor that is to be paid under the Implementation Fee as outlined in Section 2.3.12 of this RFP.

2.3.9.3 An annual meeting is required within ninety (90) days of the end of each fiscal year (June

30th) during the Term for the purpose of evaluating adherence to the FSC and SFI certification standards, and for providing recommendations to the Director of Maryland’s

DNR Forest Service that the contractor believes would be potentially helpful to improve performance in meeting both FSC and SFI standards.

2.3.10 BOOKS, RECORD KEEPING

2.3.10.1 Books and Records: The Contractor shall keep at its sole cost and expense adequate and accurate books and records for all activities pursued, conducted, managed or monitored by the Contractor hereunder, including State Timber Revenues, Eligible Expenses, Base Fee, and Implementation Fee. The Contractor’s accounts and management records under this contract must be maintained separately from any other of the Contractor’s records. The contract monitor or his designated representative shall be given access to these records when requested.

2.3.11 PROJECT MANAGEMENT- The contractor shall perform the following services in the three primary project management areas.

2.3.11.1 FOREST MANAGEMENT: The Contractor shall provide forest management services to manage the timber resources on CFL & PSF under the five (5) following areas.

I) Regeneration Harvest and Intermediate Thinning Operations. The contractor shall provide the following six (6) services for all regeneration and intermediate harvests. Note

RFP for Department of Natural Resources Forest Service Page 13 of 99 for all harvesting done under sealed bid the contractor must follow the most current DNR-

Forest Service Timber Operations Order, copy of which will be provided to the contractor.

1) Marking Harvest and Thinning Areas. The Contractor shall clearly mark all boundaries, buffers and sensitive areas in conjunction with harvest and thinning activities on the Property, prior to the commencement of any regeneration harvest or Intermediate thinning activities. All marking of buffers associated with ESA’s, Vernal Pools, Riparian Areas and any other designated environmentally sensitive area shall be done in accordance with the Sustainable Plan and or the Policy

Handbook for CFL and PSF. Copies of the documents for PSF and CFL will be provided to the contractor, but also can be located on the MFS website at:

https://dnr.maryland.gov/forests/Pages/mdforests.aspx

2) Coordinate and Monitor two types of Timber Sales

(a) For Intermediate Thinnings: The Contractor shall estimate timber volumes using general practiced forestry methods and negotiate either written per unit sales prices for the timber or offer thinning opportunities under sealed bid.

(i) When the Contractor sells timber based on a negotiated per unit price, the contractor may subcontract the logging company to do the harvesting. If the Contractor subcontracts the harvesting, they also will pay the cut and haul fee to the logging company. The cut and haul fee paid to the logging company would be handled as an

Eligible Expense as detailed in Section 2.3.13 of this RFP.

(ii) The contractor shall endeavor to merchandize all wood harvested through intermediate thinning in order to obtain the best prices possible for the state timber. This requires the Contractor to ensure that the logging company separates out pulpwood, small sawtimber and poles\piling material.

(b) For Regeneration Harvests: The Contractor shall estimate the timber volume contained in harvest areas using generally practiced forestry methods and advertise timber for sale. The Contractor shall offer timber for sale through a sealed bid process unless another method is approved in advance by the MFS.

3) Prepare Permits. The Contractor shall prepare and execute all required timber harvest and sediment and erosion control permits; and work with appropriate agencies and units of government to assist with a timely approval.

4) Monitor Harvest Operations. The Contractor shall monitor all regeneration harvest and intermediate thinning operations conducted on the Property a minimum of twice a week for compliance with the Sustainable Forest Management

Plan, specifications in the timber contract, Forest Harvest Best Management

Practices (“BMP”) and utilization specifications. Compliance details provided in the CFL & PSF Sustainable Management Plan and the CFL & PSF Policy Manual.

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5) Prepare Inspection Reports. The Contractor shall prepare and deliver to the

Owner at least two (2) inspection reports per harvest or thinning operation, including an interim report and final report, reporting on compliance with the

Harvest Requirements, utilizing the pre-approved report format supplied by or approved by the MFS.

6) Enforcement. In the event the Contractor’s inspections reveal violations with the

Harvest Requirements, the Contractor shall so notify the responsible parties in writing, providing copies of such notices to the MFS, and oversee a cure of such violations.

II) Post Harvest and Thinning Activities: Upon completion of a regeneration harvest operation, the Contractor shall identify and delineate the harvested area utilizing GPS mapping. If any harvest involves only an intermediate thinning or a selective harvest of a timber stand, the Contractor shall also complete a timber inventory of the residual stand.

All data on mapping and inventories shall be provided to the Contract Monitor at a minimum on a quarterly basis.

III) Site Preparation and Regeneration. The contractor shall perform the three (3) services following site preparation and site regeneration services.

1) Develop Regeneration Plan. The Contractor shall evaluate for treatment each existing harvest area and planned regeneration harvest site individually, to address each site’s specific condition and needs for effective forest regeneration. The

Contractor shall develop regeneration plans for the Property including GPS mapping of areas designated for planting, and requirements and methods for site preparation, grass and other herbaceous control and conifer release (the

“Regeneration Plan”). Natural regeneration will be utilized by the Contractor whenever possible as the most desirable method of regeneration. The

Regeneration Plan shall be pre-approved by the MFS as part of the Annual Work

Plan and Budget.

2) Cool Storage of Seedlings. The Contractor shall contract with the Maryland State

Forest Tree Nursery for the purchase, delivery and cool storage of seedlings at a location in close proximity to the Property and monitor the effectiveness of the cool storage of seedlings.

3) Monitoring and Inspection of Plantings. The Contractor is responsible for subcontracting for nursery, delivery and planting services to implement the approved Regeneration Plan. The Contractor shall supervise, inspect and monitor all planting operations. The Contractor shall complete survival counts after plantings during the fall and winter and provide annual planting and survival reports to the Contract Monitor on or before December 31st of each calendar year.

IV) Cultural Treatments. The Contractor shall implement cultural treatments as identified in the Annual Work Plan, such as but not limited to the following three (2) cultural treatments, pre-commercial thinnings and chemical applications.

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1) Pre-commercial Thinning. The Contractor is responsible for pre-commercial thinning work and monitoring any pre-commercial thinning activities. The

Contractor shall also prepare maps of areas thinned and provide a completion report to the contract Monitor.

2) Herbicide Applications. The Contractor is responsible for evaluating all tracts that would benefit from herbicide applications, recommend chemical formulations, method of application, and other treatments as specified in the Annual Work Plan.

If such applications are approved by the MFS pursuant to the Annual Work Plan, the Contractor shall arrange for the purchase of chemicals, contract for application services, monitor activities, and maintain accurate accounts of all chemical application activities. Prior to any aerial application, Contractor will identify landing zones, notify the Contract Monitor and other landowners in the general vicinity of the area being treated The Contractor shall supply the Contract Monitor with a report upon completion of such activities.

V) Road Maintenance and/or Construction: The Contractor shall determine the layout of any logging road, logging deck, skid trail that may be required to carry out the Forest

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