Form 1221-2 (June 1969) UNITED STATES Release DEPARTMENT … · 2020. 11. 5. · Form 1221-2 (June...

Form 1221-2

(June 1969)

UNITED STATES

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

OREGON STATE OFFICE

MANUAL TRANSMITTAL SHEET

Release

5-252

Date

12/01/2016

Subject Oregon State Office Annual Forest Product Sale Plan H-5410-1

1. Explanation of Materials Transmitted: Subsequent to the issue of the Oregon Forest

Product Sale Procedure Handbook (FPSPH) in June 2016, the Washington office

issued new Stewardship Contracting Policy. Minor edits were needed to the FPSPH

to ensure compliance with these new policies.

2.

3. Reports Required: None

4. Materials Superseded: Page 3 of H-5410-1 Release 5-252 (06/17/16).

5. Filing Instructions: File as directed below.

Remove page 3 and replace with the attached page.

Remove Insert

Page 3, Release 5-252 Page 3, Release 5-252

(06/17/16) (12/01/16)

(Total: 1 sheet) (Total: 1 sheet)

Signed by

Cathy L. Harris

Assoc. Deputy State Director for

Resource Planning, Use & Protection

Table of Contents-v

H-5410-1 – ANNUAL FOREST PRODUCT SALE PLAN – (Public)

BLM MANUAL SUPPLEMENT Rel. 5-252

Oregon State Office 06/17/16

Supersedes Rel. All

Table of Contents

I. Introduction .............................................................................................................................. 1

II. Factors in Development of Annual Forest Product Sale Plans ................................................ 1 A. Volume Included in Plan .................................................................................................. 1

1. Districts with an Allowable Sale Quantity ................................................................ 1 2. Districts with a Probable Sale Quantity .................................................................... 2

B. Priority Listing .................................................................................................................. 2 C. Timing .............................................................................................................................. 2 D. Government Agency Cooperation .................................................................................... 2

1. Miscellaneous Agencies and Clearinghouses ........................................................... 2 2. Small Business Administration (SBA) ...................................................................... 2

a. BLM Non-activated Program ............................................................................. 2

b. BLM Activated Program .................................................................................... 2 E. Public Review and Publication of District Forest Product Sale Plans ............................. 2

1. Public Review ........................................................................................................... 3 2. Publication Process ................................................................................................... 3

F. Statewide Plan .................................................................................................................. 3

III. Tract Selection and Plan Preparation ....................................................................................... 3 A. Evaluation of Proposed Sale Tracts .................................................................................. 3

1. Long-Range Plan Development Factors.................................................................... 3 2. Short-Range Plan Development Factors ................................................................... 3

B. Development and Approval of Annual Sale Plans ........................................................... 4 1. State Director Responsibilities .................................................................................. 4 2. District Manager Responsibilities ............................................................................. 5

IV. SBA Set-Aside Timber Sale Programs .................................................................................... 5

V. Monitoring Sale Plan Development – Sale Plan Modification ................................................ 6

Glossary of Terms ........................................................................................................................... 1

Illustration 1 ................................................................................................................................. 1-1 Sample Available Cut Computation

Appendix ..................................................................................................................................... A-1

BLM–SBA Set-Aside Timber Sale Program

1




Supersedes Rel. All

I. INTRODUCTION.

The authority, responsibility, and policy pertaining to the sales of forest products are set forth in

Bureau of Land Management (Bureau, BLM) Manual Sections 5000-1 and 5400. This handbook

sets forth detailed procedures for annual forest product sale planning. This planning will be

coordinated with other vegetative projects (e.g., stewardship and fuels) to most effectively manage

the entire forest management program of work. There is a wide spectrum of sale plans across the

Bureau in terms of size, scope, and complexity.

With the exception of the non-activated small business set-aside program, the procedures in this

handbook are tailored to the western Oregon program. However, the procedures also apply to the

Public Domain timber sale program and should be employed to meet the following objectives.

Compliance with statute, regulations, and policy

Land use plan compliance

Establish appropriate priorities for tract selection

Ensure sales are economically viable and likely to solicit bids

Achieve annual work-plan-established performance targets

Achieve and maintain appropriate program work efficiency and workload measure unit

costs

Early identification of problems regarding the attainment of performance targets

established in the annual work plan directives

Provide sufficient consistency in process, and timely notification for interested publics,

other agencies and clearinghouses, and the forest product industry

II. FACTORS IN DEVELOPMENT OF ANNUAL FOREST PRODUCT SALE PLANS.

The District Manager, with direction from the State Director, develops the annual forest product

sale plan. The District Manager must consider planning decisions and information, advice and

assistance from other Government agencies, and suggestions from interested private groups and

individuals. The plan lists location, quantity, and timing of individual tracts to be offered for sale,

and includes additional information and summaries beneficial to prospective purchasers.

A. Volume Included in Plan. In all cases, the actual annual performance measure target will

be contingent on funding and established through annual work plan directives. The maximum

volume that can be offered may be constrained by Allowable Sale Quantity (ASQ) or Probable

Sale Quantity (PSQ) computations. If the required level of volume to be offered cannot be met, the

District Manager must confer with the State Director to resolve the differences.

1. Districts with an Allowable Sale Quantity. For each sustained yield unit having an

ASQ, the District Manager will establish a potential level of sale offering for the plan year based

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Supersedes Rel. All

on available cut procedures. ASQs are usually computed in conjunction with land use planning

that allocates particular lands to comprise the harvest land base. Volume that is credited as ASQ

volume is referred to as chargeable (or regulated) volume.

2. Districts with a Probable Sale Quantity. Districts in the Public Domain program may

elect to compute a PSQ as a means of establishing a potential level of sustainable sale offering for

a set period of time.

B. Priority Listing. The salvage of damaged and/or dead timber has the highest priority and

is scheduled for offering as early as practical. Subsequent priorities are set in relation to advance

planning. Planners should be mindful of constraints in acquiring access and the establishment of

property lines, and following management direction in the land use plan and activity plans, and

meeting performance targets when planning and scheduling treatments.

C. Timing. Plans cover a fiscal year (October 1 through September 30) and should be

completed and approved well in advance of implementation. When the volume offered in Districts

with established sale programs is significant to local industry, the plan will be published for

distribution at least three months in advance of the new fiscal year. Publication will occur through

posting of annual sale plans on the district Internet site.

D. Government Agency Cooperation.

1. Miscellaneous Agencies and Clearinghouses. Appropriate liaison with local

Government offices and clearinghouse groups should be maintained to ensure full cooperation

between agencies, and to ensure all legal requirements, including any necessary Section 7

consultation under the Endangered Species Act, are met prior to publication of any notice of sale.

This may include Federal and State agencies charged with management and/or protection of soil,

air, water, fish, wildlife, forest practices, roads, and cultural resources.

2. Small Business Administration (SBA). The SBA regulations at 13 CFR 121.501-508

define two types of set-aside programs, regular and Special Salvage Timber Sale (SSTS). The

BLM set-aside program divides SBA’s regular program into two separate programs,

Non-activated Program and Activated Program (see H-5400-1, SALES OF FOREST

PRODUCTS, appendix 5).

a. BLM Non-activated Program. Bureau operations are governed by the 1959

BLM-SBA Agreement (amended in 1966). The SBA should be allowed sufficient opportunity to

review proposed annual forest product sale plans in advance of publication or implementation. The

SBA may request individually designated sales for consideration as set-aside sales.

b. BLM Activated Program. BLM–SBA operations in western Oregon are

governed by an activation agreement. This set-aside program is managed on the basis of two

six-month analysis periods during the fiscal year. Ideally, tracts that qualify for set-aside offerings

for a designated market area should be scheduled equitably throughout the fiscal year. Thus, if

set-aside sales are triggered at the end of a given analysis period, a better opportunity to correct the

deficiency of sales to small business would occur in the following six-month period.

E. Public Review and Publication of District Forest Product Sale Plans.

3


Rel. 5-25212/01/16

BLM MANUAL SUPPLEMENT

Oregon State Office

Supersedes Rel. 5-252 (06/17/16)

1. Public Review. The State Director determines the extent, as well as the necessity, for

notifying the public and inviting general public review of proposed forest product sale plans.

2. Publication Process. After completion of the public review processes, if required, the

plan is submitted to the State Director for approval. Upon approval, the plan is published in final

form. The plan will be posted on the district Internet site and distributed to interested parties; an

appropriate news release will be sent to local news media as directed by the State Director.

F. Statewide Plan. Approved district plans are consolidated into a statewide annual forest

product sale plan. Statewide plans are supplied to interested individuals and groups at the

discretion of the State Director, and to the Director as specified in annual work plan directives.

III. TRACT SELECTION AND PLAN PREPARATION.

Selection of tracts in the formulation of long-range sale plans and short-range (typically annual)

sale plans, will address the factors described in this section, if applicable. Effective long-range and

short-range planning readily culminates in the development of an annual sale plan that will

produce the intended projects in the intended year.

A. Evaluation of Proposed Sale Tracts. In addition to the factors identified in section II,

district personnel must consider the following in selection of individual tracts and the entire

package of tracts to be included in the annual forest product sale plan.

1. Long-Range Plan Development Factors.

a. Forest management activity plans, including the five-year forest product or

timber sale plans, and fuels projects.

b. Land use plan recommendations or decisions as available, or other land use

planning guides and multiple-use restrictions (e.g., watershed analysis, air quality plans, habitat

management plans).

c. Transportation plan.

d. Access and property line establishment needs, and initiation of work prior to

development of short-range plans.

e. Survey (Special Status Species for example) and clearance (such as cultural

resources) needs, and initiation of work prior to development of short-range plans.

f. Any necessary “over planning” of project acres (to address acres deleted from

the project area during planning) to ensure achievement of performance targets.

g. Court-imposed restrictions.

2. Short-Range Plan Development Factors.

a. Forest management activity plans, as available.

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b. ASQ and available cut, or PSQ, and/or annual work plan performance targets.

c. Priority areas for forest/ecosystem health/fuels reduction treatments; need to

address public safety concerns; and diseased, dying, or salvageable forest products not previously

scheduled for sale.

d. Externally-generated requests for projects.

e. Coordination with local landowners.

f. Identification of any valid water rights.

g. Government-to-Government coordination with Indian tribes (refer to Land Use

Planning Handbook H 1601-1).

h. Needed road construction and/or improvement.

i. Silvicultural prescription development requirements.

j. Determination if the public is best served by a lump sum or a scale sale, and if a

scale sale appears appropriate, how the scaling will be accomplished and if third party scaling is

allowed (refer to 43 CFR 5442.2).

k. Cutting method requirements (selective cut, shelterwood, regeneration harvest,

clearcut, thinning, etc.).

l. Logging design and system requirements, including suitable locations for

landings as well as the availability of guyline and tailhold anchors.

m. Reforestation needs, including availability of seed, planting stock, vegetation

control, site preparation, and so forth.

n. Projects that may be categorically excluded from the analysis necessary for an

environmental assessment or impact statement (refer to the Bureau's National Environmental

Policy Act Handbook H-1790-1).

o. Small business set-aside program, if applicable.

B. Development and Approval of Annual Sale Plans. The following are responsibilities of

the State Director and District Managers in order to ensure timely preparation and completion of

annual forest product sale plans.

1. State Director Responsibilities.

a. Maintain data on volume offered by chargeable and non-chargeable

components, and available cut computations, if applicable (see illustration 1).

b. Establish and issue a coordinated schedule of district forest product monthly

sale dates to avoid conflicts between district and other agency sale plans.

5




Supersedes Rel. All

c. Issue direction on format and content for sale plans. Plans must include sale

name, month of sale, volume, location, and if set-aside for small business (if applicable). In

addition, if sales are set aside for small business, the sale plan must designate if each set-aside sale:

(1) qualifies for set-aside based on current road control policy elements number “a” through “d”

only; or (2) involve large business road agreements under policy element number “e”.

d. Issue policy directing the process to be used for public involvement,

coordination with other agencies, and state and area-wide clearinghouses during sale plan

development and for any subsequent revisions of final sale plans.

e. Issue performance and workload measure targets in annual work plan directives.

f. Review and approve district sale plans.

g. Complete the statewide sale plan and submit to the Director.

2. District Manager Responsibilities.

a. If applicable, complete available cut computations (see illustration 1).

b. Formulate the proposed plan to meet the performance measure targets specified

by the State Director.

c. Review forest product sale names prior to publication of the annual forest

product sale plan. Ensure sale names are practical and professional, and that the public can

construe no implied derogatory references to people, places, or things. Geographically-based sale

names can be useful for locational reference. Ensure sale names are unique within the district.

d. Submit draft sale plans to the SBA and other Government agencies; state and

area-wide clearinghouses; and to the media, public, local collaboratives, and industry as directed

by the State Director.

e. For activated small business set-aside program areas, identify tracts that qualify

for set-aside sale (see appendix section IV.A).

f. Respond to any SBA requests for set-aside tracts in a non-activated small

business set-aside program area (see appendix section IV.B).

g. Complete and forward the proposed plan to the State Director for approval. If

performance targets cannot be met, explain this to the State Director and offer alternatives.

Resolve program level with the State Director.

h. As directed by the State Director: (1) publish the approved plan and post it on

the district Internet site; (2) prepare and issue news release to news media; and (3) distribute the

plan to industry, SBA, other interested Government agencies, interested public groups, and

appropriate state- and area-wide clearinghouses.

IV. SBA SET-ASIDE TIMBER SALE PROGRAMS.

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The SBA regulations at 13 CFR 121.501-508 define two types of set-aside programs, regular and

SSTSs. The BLM set-aside program divides SBA’s regular program into two separate programs,

Non-activated Program and Activated Program (see the appendix for SBA set-aside policies and

procedures).

V. MONITORING SALE PLAN DEVELOPMENT – SALE PLAN MODIFICATION.

District sale plans may be modified or otherwise changed to accommodate program or work plan

revisions, changes in management objectives, input from the SBA, and so on. The State Director

must approve significant changes such as deletions, substitutions, and fiscal year quarter of

offering, and notify the Director if performance targets cannot be met. Upon approval of a change,

the District Manager will prepare a change notice that is distributed in the same manner and extent

as the original plan. Rationale for sale plan modification normally found acceptable includes:

Unexpected natural disasters create a need to restructure harvest priorities.

Tracts must be delayed or replaced due to failure to secure access, belated identification

of restrictive multiple-use considerations, or need to balance offerings (or add tracts) to meet

performance targets.

Changes in funding and personnel that affect planned sale work.

Additional tracts with set-aside status are included or deleted.

Planned levels of harvest are changed for the sale plan year after preparation of the plan.

District personnel must monitor sale plan progress on a continuous basis to ensure tracts are

prepared and offered as scheduled and to promptly identify significant factors that might lead to a

formal modification of the sale plan. District plans may be modified to reflect necessary changes in

sale schedules. The changes may come about through reallocation of forest products to be sold,

tract rescheduling, etc. In Districts associated with the non-activated small business program, the

SBA may petition for additional set-aside sales or to withdraw a previously designated set-aside

sale. Although the need to make changes in the plan may originate in a variety of places, the

District Manager initiates the operational cycle for formal modification.

Glossary of Terms-1

H-5410 – 1 ANNUAL FOREST PRODUCT SALE PLAN – (Public)



Supersedes Rel. All

Glossary of Terms

30/70 Rule. For regular set-aside sales (not SSTS), no more than 30 percent of the advertised

sawtimber volume from a set-aside sale purchased by a small business concern may be

delivered for manufacturing to a business that is not a small business, as defined by SBA.

Above-cost timber sale. A timber sale whose total revenue exceeds the total cost of preparing and

administering the sale (see below-cost timber sale).

Allowable cut. The figure obtained from an allowable sale quantity computation that represents

the average annual allowable sale quantity (i.e., the amount that would be consistently offered

every year in an even-flow scenario contingent on sufficient funding and manageable

priorities).

Allowable sale quantity (ASQ). The ASQ is the quantity of timber that may be sold from an area

covered by a Resource Management Plan during a time period specified by the plan to ensure

sustained yield. Allowable sale quantity is synonymous to Annual Productive Capacity and

Annual Sustained Yield Capacity. Contingent on funding, the ASQ is usually offered for sale

annually on an average annual basis (see also available cut procedure; timber production

capability classification).

Annual forest product sale plan. A short-range plan for all advertised sales of forest products from

a given area during the fiscal year.

Authorized manager. The Bureau of Land Management line official authorized to manage Bureau

personnel, funding, and processes in support of the sale, disposal, and free use of forest

products. This individual may also sign planning (National Environmental Policy Act)

documents. This individual may or may not be the Contracting Officer.

Available cut procedure. The method used to compute the planned level of timber (and possibly

convertible) sale offerings in any given year during the life of an approved land use and/or

forest management activity plan. It utilizes the computed average annual ASQ level for the

year in question and adjusts for past year differences between the planned timber sale

offerings and actual timber sales sold.

Below-cost timber sale. A timber sale whose total revenue does not exceed the total cost of

preparing and administering the sale (see above-cost timber sale).

Chargeable volume. Volume, when sold (presuming award and completion of harvest) that is

credited as allowable sale quantity volume and is used in available cut computations over the

course of land use plan implementation. Volume harvested from those lands dedicated to

sustained yield management (see also harvest land base), which contributes to the allowable

sale quantity. Includes volume from forest product sales. (Synonym: regulated volume)

Contracting Officer. The Bureau of Land Management official who has authority conferred in the

1203 Manual Section (Delegation of Authority) to execute contracts and delegate authority to

take action in connection with the contract.

Glossary of Terms-2




Supersedes Rel. All

Data adjustments at time of recomputation. The data reported over the five-year period in the

Semi-annual Status Reports used for market share recomputations.

Environmental assessment. A concise public document that serves to: (1) analyze and document

whether a proposed action will have significant environmental impact and therefore requires

an environmental impact statement, or (2) document a finding of no significant impact and an

environmental impact statement is not necessary. An environmental assessment includes

descriptions of the proposed action and affected environment; alternatives to the proposed

action, and an environmental effects analysis (including cumulative) of the proposed action

and alternatives; and a listing of agencies and persons consulted.

Forest management activity plan. A type of implementation plan for the disposal of forest

products, which usually describes multiple years and projects and applies management

direction to meet land use plan objectives (e.g., five-year forest product or timber sale plans).

(Synonyms: timber management plan; timber harvest plan; allowable cut plan)

Harvest land base. Lands available for timber harvesting on a programmed, sustained basis.

Generally, a harvest land base does not include non-managed or other reserved lands,

non-forested lands, or areas that the timber production capability classification inventory has

determined are not capable of sustained timber production.

Land use plan. A set of decisions that establish management direction for lands within an

administrative area, as prescribed under the planning provisions of the Federal Land

Management and Policy Act of 1976; an assimilation of land use plan-level decisions

developed through the planning process outlined in 43 CFR § 1600, regardless of the scale at

which the decisions were developed. Usually prepared in conjunction with an environmental

impact statement. (Synonym: Resource Management Plan)

Non-manufacturer. A concern that (including its affiliates and its use of leased facilities, and

including concerns with whom it or its affiliates subcontract for the manufacture of one or

more products) manufactured or contracted for manufacture less than 50 percent of its annual

merchantable timber sale volume removed from Bureau of Land Management lands within a

specific market area (BLM–SBA 1990 Revised Operating Procedures).

Original base share. The original small business share percentage for each market area that was

initially established in 1972 using the five-year base period of calendar years 1968 to 1972,

inclusive. Any market share percentage established by prescribed periodic recomputations

must not be less than 50 percent of the Original Base Share established for the 1968 to 1972

base period.

Probable sale quantity (PSQ). PSQ is the allowable harvest level that can be maintained without

decline over the long term if the schedule of harvests and regeneration is followed. PSQ

recognizes a level of uncertainty in meeting the determined PSQ level; this uncertainty is

typically based on environmental factors that preclude harvesting at a particular time (e.g.,

because of watershed or habitat concerns). A PSQ is not a commitment to offer for sale a

specific level of timber volume every year. Although similar to an ASQ in terms of

computation, the PSQ may rely on less intensive inventory data.

Glossary of Terms-3




Supersedes Rel. All

Qualified set-aside tracts. Sale tracts that qualify for set-aside designation using only the road

control policy elements.

Rights of road ownership. The rights of road ownership include: (1) use of the road, (2) first right

of maintenance on the road and collection of pro-rata expenses from other users (maintenance

and/or surface replacement fees) or allowing for operator maintenance, (3) collection of road

use fees from other users for amortization of the replacement cost of the road, and (4)

establishing reasonable traffic regulations for road use that are applicable to all users of the

road, including the road owner.

Road control. The right to use the road and authorize third parties to use the road subject to the

rights of the road owner.

Set-aside sale. A designation of timber for sale that is limited to bidding by small business

concerns as defined by the Small Business Administration in its regulations (13 CFR Part 121)

under the authority of Section 15 of the Small Business Act of July 18, 1958 (72 Stat. 384), as

codified and amended (15 U.S.C. 631 et seq.).

Small business concern. A private business that meets the criteria for small business established by

the Small Business Administration in regulations at 13 CFR Part 121 under the authority of

Section 15 of the Small Business Act of July 18, 1958, as amended (15 U.S.C. 631, et seq.).

Special status species. Collectively, Federally listed or proposed and Bureau sensitive species, that

include both Federal candidate species and delisted species that are within five years of

delisting (refer to Manual Section 6840).

Timber production capability classification. An analytical tool that inventories and identifies sites

as capable of sustained intensive timber management without degradation of their productive

capacity. This tool evaluates a site’s soil depth, available moisture, slope, drainage, and

stability to determine site capacity for timber management activity. Sites that prove incapable

of sustaining intensive timber management are typically not included in the harvest land base.

Tract. An individual sale unit area (cutting area), or aggregate of sale units, that would comprise an

individual project or sale and ultimately be included in a single contract for sale or disposal.

Trigger for set-aside sales. When the small business sector fails to purchase at least 90 percent of

the adjusted small business share of volume in a six-month period on a market area, where the

adjusted small business share equals the small business share of volume for the period plus

any deficit or minus any surplus volume from the preceding analysis period.

Illustration-1-1




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Illustration-1 Sample Available Cut Computation

Sample Available Cut Computation - FY 2005

Burns District

Assumptions:

- Computed ASQ is 3,400 MBF.

- Decadal ASQ is 34,000 MBF (average annual ASQ x 10).

- Land Use Plan has been implemented for five years (2000-2004).

- Available cut computation is being completed for FY 2005.

Chargeable Volume Sold (MBF)

FY 2000 3,200

FY 2001 3,300

FY 2002 3,450

FY 2003 3,350

FY 2004 3,100 (may be a preliminary estimate)

Total 16,400

MBF

Decadal Cut

34,000

Total Volume Sold, FYs 2000-2004 16,400

Balance 17,600

Available Cut, FY 2005 (Balance/5)* 3,520

* Total Balance divided by remaining years in decade. In this

sample computation, 3,520 MBF can be offered for sale in FYs

2005-2009, contingent on funding.

Appendix-1




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Appendix

BLM–SBA Set-Aside Timber Sale Program

Table of Contents

I. Introduction .............................................................................................................................. 5 A. Cooperative Jurisdiction and Administration ................................................................... 5

1. Operating Procedures ................................................................................................ 5 B. SBA Small Business Timber Programs ............................................................................ 5

1. Regular Set-Aside Timber Sale Program .................................................................. 5 2. Special Salvage Timber Sale Program ...................................................................... 6

C. BLM Small Business Timber Programs ........................................................................... 6 1. Activated Set-Aside Program .................................................................................... 6 2. Non-activated Program ............................................................................................. 6

D. Small Business Size and Manufacturing Classification ................................................... 6

II. Determination of Small Business Market Share Percentages .................................................. 8 A. Small Business Original Base Shares ............................................................................... 8 B. Five-Year Recomputation of Small Business Market Shares .......................................... 9

1. Data Analysis Period for Recomputation of Small Business Market Share

Percentages ......................................................................................................... 9 2. Calculating the Indicated Market Share .................................................................... 9 3. Crediting Volumes for Appealed, Litigated, Defaulted, or Assigned Timber

Sales ................................................................................................................... 9 4. Data Adjustments ...................................................................................................... 9

a. Sales Abnormally Terminated Prior to Harvest ................................................. 9 b. Set-Asides Sold to Large Business .................................................................... 9

5. Accounting for Deficits and Surpluses ...................................................................... 9 6. Rounding of Share Percentages ................................................................................. 9 7. Effective Date of New Shares and Use in Determination of Triggers and

Set-Asides ........................................................................................................ 10 C. Limits on Market Shares and Share Change .................................................................. 10

1. Share of 50 Percent or Less ..................................................................................... 10 2. Share over 50 Percent .............................................................................................. 10 3. No Market Share over 80 Percent ........................................................................... 10 4. Review of Market Area ........................................................................................... 10

III. Operation of the Regular Set-Aside Timber Program ........................................................... 10

A. Semi-annual Status Report of Small Business Purchases .............................................. 10 1. Purchase Records Maintenance ............................................................................... 10

2. Analysis of Purchases .............................................................................................. 11 3. Analysis Review and Report ................................................................................... 11 4. Report Distribution .................................................................................................. 11

B. Semi-annual Analysis of Small Business Purchases ...................................................... 11 1. Analysis Periods ...................................................................................................... 11 2. Small Business Share of Volume ............................................................................ 11 3. Adjusted Small Business Share of Volume ............................................................. 11

Appendix-2




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4. Current Deficit or Surplus ....................................................................................... 11

5. Trigger for Set-Aside Sales ..................................................................................... 11 C. Crediting Sawtimber Volumes in the Semi-annual Analysis ......................................... 11

1. General .................................................................................................................... 11 2. Unit of Measure ....................................................................................................... 12 3. Sale Date ................................................................................................................. 12 4. SBA Size/Class ....................................................................................................... 12 5. Open Sales Purchased by Manufacturers ................................................................ 12 6. Open Sales Purchased by Non-manufacturers ........................................................ 12 7. Set-Aside Sales Purchased by Manufacturers or Non-manufacturers .................... 12 8. No-Bid Sales ........................................................................................................... 13

a. Crediting No-Bid Set-Aside Sales Reoffered and Purchased as an Open Sale 13 b. Date for Crediting No-Bid Sales Purchased under 90-Day Sale Provisions .... 13

D. Data Adjustments in the Semi-annual Analysis ............................................................. 13

1. Time Limit for Making Adjustments in the Semi-annual Analysis ........................ 13 2. Delays in Contract Award and Failure to Award .................................................... 13 3. Appealed, Litigated, Defaulted, or Assigned Timber Sales .................................... 13 4. Sales Abnormally Terminated Prior to Harvest ...................................................... 13 5. Data Adjustments at Time of Recomputation ......................................................... 13

a. Sales Abnormally Terminated Prior to Harvest ............................................... 14 b. Set-Asides Sold to Large Business .................................................................. 14

E. Semi-annual Status Report Workbook ........................................................................... 14 1. Volume Distribution Period Worksheets ................................................................ 14 2. Summary Worksheet ............................................................................................... 14

IV. Scheduling and Selection of Regular Set-Aside Sales .......................................................... 14 A. Annual Timber Sale Plan ................................................................................................ 14

B. Scheduling Set-Aside Sales ............................................................................................ 15 C. Set-Aside Selection Procedures ...................................................................................... 15 D. Set-Aside Volume Objective .......................................................................................... 16

1. Trigger ..................................................................................................................... 16 2. Initial Trigger .......................................................................................................... 16 3. Trigger within One Year of Recomputation (Final) ................................................ 16 4. Twenty Percent Open Volume Limitation .............................................................. 16

5. Set-Aside Volume Deferred to Future Periods ....................................................... 16 E. SBA Form 441 – Joint Set-Aside for Small Business .................................................... 16

1. Top Right-Hand Corner .......................................................................................... 16 2. Columns on the Right-Hand Side (RHS) ................................................................ 17 3. Columns on the Left-Hand Side (LHS) ................................................................... 17

4. No Sales Selected for Set-Aside .............................................................................. 17

5. Signatures ................................................................................................................ 17

F. Criteria for Evaluation of Proposed Set-Aside Tracts .................................................... 17 H. Use of Reciprocal Right-of-Way Agreements for SBA Set-Aside Timber Sales .......... 18 I. Non-activated Small Business Set-Aside Program ........................................................ 19 J. Rejection of SBA Request for Set-Aside Sales .............................................................. 19

V. Special Salvage Timber Sale Program .................................................................................. 20

Appendix-3




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A. Cooperative Jurisdiction and Administration ................................................................. 20

B. SSTS Small Business Qualifications .............................................................................. 20 C. Operational Guidelines ................................................................................................... 21

VI. Preparation for Sale ............................................................................................................... 21

VII. Sale Advertisement ................................................................................................................ 21 A. Regular Set-Aside Timber Sale Notice .......................................................................... 21 B. SSTS Notice ................................................................................................................... 22 C. Forest Product Sale Prospectus ...................................................................................... 22

VIII. Conduct of Sales ............................................................................................................. 22

A. Auction Language .......................................................................................................... 23 B. Qualifications of Bidders for SBA Set-Aside Sales including SSTSs ........................... 23

1. Self-Certification ..................................................................................................... 23 2. Eligibility ................................................................................................................. 23

C. Rejection of Bids ............................................................................................................ 23 1. Bid Deposit .............................................................................................................. 23

2. Bid Price .................................................................................................................. 23 3. Qualifying Documents – Set-Aside Sales including SSTS ..................................... 23

D. No-Bid Set-Aside Sales .................................................................................................. 24 1. Ninety-Day Sale Re-offer ........................................................................................ 24 2. Abandon Set-Aside Status for 90-Day Sale ............................................................ 24

3. Delivery Requirements for 90-Day Sales ................................................................ 24 4. Unsold 90-Day Sale ................................................................................................ 24

5. Modification of a No-Bid Set-Aside Sale ............................................................... 24 6. Crediting Volume for No-Bid Sales ........................................................................ 24

IX. Award of Contract ................................................................................................................. 25 A. Pre-award Qualifications ................................................................................................ 25

1. SBA Certificate of Competency Program ............................................................... 25 2. Financial Statement ................................................................................................. 25

3. Evaluation of Prior Performance ............................................................................. 26 4. COC Referral ........................................................................................................... 26

B. Small Business Size Standard Protest ............................................................................ 26 C. Award of Set-Aside Sales ............................................................................................... 27

1. Delay Award of Set-Aside Sales for Five Days ...................................................... 27

2. SBA Form 723 for Regular Set-Aside Sales ........................................................... 27 3. The 30/70 Rule for Regular Set-Aside Sales .......................................................... 28 4. Recordkeeping for Regular Set-Aside Sales ........................................................... 28

D. Small Business Size Classification ................................................................................. 28

X. Contract Administration ........................................................................................................ 28 A. Monitoring the 30/70 Rule ............................................................................................. 29

Glossary of Terms ......................................................................................................................... 31

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Illustration 1 .................................................................................................................................. 33

Memorandum of Understanding (MOU) WO-11 Illustration 2 .................................................................................................................................. 35

BLM–SBA Revised Operating Procedures, 1990

Illustration 3 .................................................................................................................................. 39 SBA Regulations at 13 CFR Part §121.501-508

Illustration 4 .................................................................................................................................. 41 Self-Certification Clause Bidder Statement (Form 5430-1)

Illustration 5 .................................................................................................................................. 43

Small Business Certification Required on Preferential Sales of Set-Aside Timber

(SBA Form 723) Illustration 6 .................................................................................................................................. 45

BLM Director Activation Memorandum Illustration 7 .................................................................................................................................. 47

Bureau of Land Management Western Oregon – Small Business Market Shares

Illustration 8 .................................................................................................................................. 49 Semi-Annual Status of Small Business Purchases Volume Distribution Worksheet

Illustration 9 .................................................................................................................................. 59 Set-Aside for Small Business (SBA Form 441)

Illustration 10 ................................................................................................................................ 63

Example of Agreement Language from a Non-SBA Qualified Permittee Illustration 11 ................................................................................................................................ 65

Formal Rejection of SBA Request for Set-Asides (SBA Form 441, page 2) Illustration 12 ................................................................................................................................ 67

Special Salvage Timber Sale Program and Operating Procedures, April 1, 1985

Illustration 13 ................................................................................................................................ 69 Set-Aside Timber Sale Notice

Appendix-5




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I. INTRODUCTION.

The U.S. Small Business Administration (SBA), the U.S. Department of the Interior (USDI), and

the Bureau of Land Management (BLM, Bureau) developed programs to aid and assist qualified

small business concerns.

A. Cooperative Jurisdiction and Administration. A national-level Memorandum of

Understanding (MOU) WO-11 (illustration 1) between the USDI and the SBA with respect to

timber and forest products, dated March 10, 1959, and amended on July 25, 1966, sets forth

agreement to establish a small business timber sale program to assure accomplishment of the

objectives of the Small Business Act (15 U.S.C. 631, et seq.). The objective of the MOU is to

assure that a fair proportion of the total sales of Federal timber is made available to small business

concerns.

The BLM and SBA jointly developed guidelines and procedures to implement the small business

set-aside timber sale program, and agreed to activate the program in western Oregon on January 1,

1974. Under this program, appropriate sales of timber and related forest products on lands under

the jurisdiction of the BLM are set aside for small business competition. Size standards and

requirements for purchasers of Federal timber sales set aside for preferential bidding by small

businesses are established in SBA regulations at 13 CFR Part §121 (illustration 2).

1. Operating Procedures. The BLM and SBA periodically review the operational

procedures guiding this program as determined necessary to assure that the declared policy of

Congress as expressed in Section 15 of the Small Business Act is carried out. Such reviews will

include opportunity for comment from the affected timber industry. The decision and revised

operating procedures for the BLM–SBA Set-Aside Timber Sale Program, excluding market share

recomputation procedures, are shown in illustration 3.

The current Operating Procedures for Conducting the Five-Year Recomputation of Small Business

Market Share Percentages, updated in Instruction Memorandum No. OR-2008-089, are detailed

in section II.

B. SBA Small Business Timber Programs. SBA regulations define two types of small

business set-aside programs: the regular set-aside timber sale program and the Special Salvage

Timber Sale (SSTS) program. The term “set-aside,” when used alone without qualification, means

a regular set-aside sale. Procedures and guidelines apply only to the regular set-aside program

unless otherwise stated.

1. Regular Set-Aside Timber Sale Program. A small business concern, as defined in

SBA regulations, is one primarily engaged in the logging or forest products industry; is

independently owned and operated; is not dominant in its field of operation; and together with its

affiliates does not employ more than 500 persons.

A bidder on a set-aside sale must certify at the time of bid that the bidder is a qualified small

business concern by submitting BLM form 5430-1, Self-Certification Clause Bidder Statement,

(see the BLM online forms library; illustration 4).

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The purchaser of a regular set-aside sale must also certify at the time of sale contract execution that

no more than 30 percent of the advertised sawtimber volume will be delivered to a business that is

not a small business as defined by the SBA, in accordance with SBA requirements set forth in 13

CFR §121.507. This is commonly referred to as the 30/70 Rule. The purchaser must sign SBA

form 723, Small Business Certification Required on Preferential Sales of Set-Aside Timber

(illustration 5). Form 723 is then annexed to the set-aside timber sale contract.

2. Special Salvage Timber Sale Program. For purposes of purchasing special salvage

timber sales, a small business concern, as defined in SBA regulations, is primarily engaged in the

logging or forest products industry; is independently owned and operated; and together with its

affiliates does not employ more than 25 persons.

A bidder on an SSTS must also certify at the time of bid that the bidder is a qualified small

business concern by submitting BLM form 5430-1, Self-Certification Clause Bidder Statement

(see forestry forms SharePoint).

The 30/70 rule does not apply to the special salvage timber sale program; therefore, the purchaser

of an SSTS does not sign SBA form 723.

See section V below for detailed information on the SSTS program.

C. BLM Small Business Timber Programs. The BLM has two general types of small

business programs: activated and non-activated. The activated BLM–SBA set-aside timber sale

program operates only in western Oregon (illustration 6). Similar programs may be implemented

in other areas as needed upon initiative of the SBA. Procedures and guidelines apply only to the

activated program unless otherwise stated.

1. Activated Set-Aside Program. The BLM–SBA set-aside timber sale program is

activated in western Oregon and is governed by the activation agreement of January 1, 1974,

between the BLM and SBA. The activated program is managed on a current systematic,

percentage share basis. Small business market share percentages are computed at five-year

intervals and are used for a total of 10 six-month analysis periods. Regular review at six-month

intervals determines whether set-aside timber sales are required.

2. Non-activated Program. The non-activated program includes all other areas under

the jurisdiction of the BLM outside of western Oregon. Set-aside sales offered in the non-activated

program occur on an as-needed basis upon the initiative of the SBA, the District Manager, or the

State Director.

D. Small Business Size and Manufacturing Classification. The SBA size definition is the

basis for analyzing the set-aside program. For purposes of the regular set-aside timber sale

program, a small business is defined as having no more than 500 employees; a big or large

business is one with more than 500 employees. To be qualified for the SSTS program, a business

must have no more than 25 employees.

A non-manufacturer is defined as “a concern that (including its affiliates and its use of leased

facilities, and including concerns with whom it or its affiliates subcontract for the manufacture of

Appendix-7




Supersedes Rel. All

one or more products) manufactured or contracted for manufacture less than 50 percent of its

annual merchantable timber sale volume removed from Bureau of Land Management lands within

a specific market area."

The BLM uses the codes in table 1 to represent business size in the Timber Sale Information

System (TSIS).

Table 1. BLM codes to designate business size and manufacturing capability

Employee

Number Size Code Manufacturing Class Code

Size/Class

Combinations

< 500 Small S Manufacturer M SM or SN

>500 Large L Non-manufacturer N LM or LN

< 25 SSTS

qualified M MM or MN

E. Market Areas. Program administration requires establishment of small business market

areas. When the program was activated in western Oregon, a small business market area was no

smaller than a BLM master unit (MU) and generally no larger than a BLM district. Elsewhere, a

market area was ordinarily no smaller than a BLM district and no larger than a state.

Beginning with fiscal year (FY) 2006, a small business market area (MA) in western Oregon will

ordinarily be no smaller than a Resource Area (RA), with the exception of Klamath Falls1, and

generally no larger than a BLM District. Elsewhere, a market area will ordinarily be no smaller

than a BLM District and no larger than a State.

Table 2 lists the SBA market areas for western Oregon as established January 1, 1974, when the

SBA set-aside program was activated based on master units, and the current MA boundaries that

correspond to resource areas.

Table 2. Western Oregon market areas

District Market Area Resource Area Original Master Unit

Salem

Salem-1 Tillamook Tillamook RA Columbia MU

Salem-2 Mary’s Peak Mary’s Peak RA Alsea/Rickreal MU

Salem-3 Cascades Cascades RA Clackamas-Mollalla MU

Santiam River MU

Eugene Eugene all RAs

Roseburg Roseburg all RAs

Medford

Medford-1 Josephine Grants Pass RA Josephine MU

Medford-2

Jackson/Klamath

Ashland RA Jackson MU

Butte Falls RA

1 The Klamath Falls portion of the Medford-2 Jackson/Klamath Market Area only includes the O&C lands west of

Highway 97 that are managed by the Klamath Falls RA.

Appendix-8




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District Market Area Resource Area Original Master Unit

Klamath Falls RA

(O&C lands west

of Hwy 97)

Klamath Falls MU

Coos

Bay Coos Bay all RAs

The Oregon State Director, in consultation with District Managers and the SBA, may change the

market area boundaries if deemed appropriate following market analysis and an opportunity for

comment from the affected timber industry (see section II.D).

II. DETERMINATION OF SMALL BUSINESS MARKET SHARE PERCENTAGES.

A. Small Business Original Base Shares.

1. The small business Original Base Share percentage for each market area was initially

established in 1972 using the five-year base period of calendar years 1968 to 1972, inclusive (table

3).

Table 3. Original base shares

District Market Area

Original

Base Share

(%)

Coos Bay Coos Bay 58

Eugene Eugene 45

Medford

Medford 1 - Josephine 63

Medford 2 -

Jackson/Klamath 57

Roseburg Roseburg 43

Salem

Salem 1 - Mary's Peak 42

Salem 2 - Tillamook 53

Salem 3 - Cascades 26

2. Timber sale volumes purchased by large and small businesses, as defined by the

SBA, were analyzed for the base period to derive the base average share percentage bought by

small businesses in each market area. Purchases by firms that changed size status during the

five-year period were tallied according to the size of the firm as of December 31, 1972. Ratios of

non-manufacturer volume of log deliveries to small and large businesses (from a two-year history

of non-manufacturer log deliveries) were used for crediting non-manufacturer purchases to small

and large businesses.

3. Any share percentage established by prescribed periodic recomputations must not be

less than 50 percent of the original base share established for the 1968 to 1972 base period.

Appendix-9




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B. Five-Year Recomputation of Small Business Market Shares. Small business market share

percentages will be recomputed at regularly scheduled five-year intervals for each market area.

New market shares are normally used for a total of 10 six-month analysis periods. The original

base shares and historic shares for each market area are shown in illustration 7. Current

recomputation procedures are described below.

1. Data Analysis Period for Recomputation of Small Business Market Share

Percentages. The data period for recomputation analysis will cover five full years beginning and

ending at fiscal half-years. New shares will be effective on the first day of the following fiscal

year. For example, for the 2010 recomputation, the small business market share percentages will

be based on the analysis period April 1, 2005, through March 31, 2010. New market shares were

effective on October 1, 2010.

2. Calculating the Indicated Market Share. The Indicated Market Share for each market

area is calculated as a cumulative percentage by dividing total small business sawtimber purchases

over the data analysis period by the total sawtimber volume sold over the analysis period. The

indicated share for each market area will be adopted as the new small business market share

subject to the limitations in section II.C.

3. Crediting Volumes for Appealed, Litigated, Defaulted, or Assigned Timber Sales. In

all cases of appealed, litigated, defaulted, or assigned timber sales, sawtimber volume will be

credited to the size/class of the initial purchaser using the bid date of the timber sale. No

adjustments will be made for defaults, assignments to a third party, or change in size/class of a

purchaser during a recomputation period. No adjustments will be made for sales unawarded but

not terminated, including sales under protest, appeal, or litigation.

4. Data Adjustments. Document all data adjustments. Adjustments to data will be made

in only two cases.

a. Sales Abnormally Terminated Prior to Harvest. Sales that are abnormally

terminated prior to harvest (withdrawn, turned back, or otherwise cancelled) will be removed from

the data used for the recomputation. In this context, “prior to harvest” means no trees are cut in

relation to the sale, including right-of-way trees.

b. Set-Asides Sold to Large Business. For no-bid set-aside sales that are

subsequently purchased by a large business, the volume will be credited to small business in the

semi-annual analysis but will be credited to large business in recomputations.

5. Accounting for Deficits and Surpluses. Beginning with the 2005 Recomputation, and

for all future recomputations, no volume will be carried forward from the previous five-year

period. All deficits and surpluses will be dropped on the effective date of the new shares.

6. Rounding of Share Percentages. Round share percentages to the nearest whole

percent. For example, round 20.6 percent up to 21 percent and round 20.4 percent down to 20

percent. Where applicable, use the odd-even rule. For example, raise 19.5 percent to 20 percent

and lower 20.5 percent to 20 percent.

Appendix-10




Supersedes Rel. All

7. Effective Date of New Shares and Use in Determination of Triggers and Set-Asides.

In all cases, trigger status is determined on the last day of the semi-annual period. If a market area

is triggered, sales are selected for set-aside in the following six-month period; and the volume

objective is based on the current share in effect on the date of the trigger. New shares following

recomputation are made effective on the first day of a six-month period and are first used to

determine trigger status at the end of that same period. For example, new shares made effective on

April 1 are first used to determine a trigger on the following September 30. Shares made effective

on October 1 are first used to determine a trigger on the following March 31. If triggered, the

volume objective for set-aside in the following six months would be based on the new share that is

now in effect.

C. Limits on Market Shares and Share Change. The indicated market share for each market

area will be adopted as the new small business market share subject to the following limitations.

1. Share of 50 Percent or Less. If the current share is 50 percent or less, the change in

share will be limited to 10 share percentage points.

2. Share over 50 Percent. If the current share is over 50 percent, the change in share will

be limited to 10 percent of the current share.

3. No Market Share over 80 Percent. In no case will the small business market share

exceed 80 percent or be less than one-half the original base share established in 1972 (table 3).

4. Review of Market Area. In each market area where the Indicated Share would have

changed more than 10 percentage points without the limits in paragraphs 1 or 2 above, the BLM, in

consultation with the SBA, may conduct a review of the market area to determine the suitability of

the limited share and the impacts of the limit. Such review will include an opportunity for

comment by the affected industry. The review will consider changes in the structure of the

industry, capacity of firms active in the area, timber supply, probable effects on communities

where manufacturing facilities are located, effects of carryover volumes, and other items deemed

appropriate. If, based on the analysis and comments from the affected industry, there are strong

reasons that the change in share should exceed the 10 share percentage points limit, an alternative

share may be proposed and established.

D. Changing Small Business Market Area Boundaries. The State Director, in consultation

with the District Manager and SBA, determines appropriate MAs.

III. OPERATION OF THE REGULAR SET-ASIDE TIMBER PROGRAM.

A. Semi-annual Status Report of Small Business Purchases.

1. Purchase Records Maintenance. The Oregon State Director and District Managers

will maintain records of small business purchases and/or offerings by market area to monitor

program achievement. Copies of timber sale notices and sale results are also provided on a regular

and timely basis to the SBA Regional Representative for monitoring purposes.

Appendix-11




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2. Analysis of Purchases. District personnel analyze the status of small business purchases

for each market area at the end of each six-month analysis period. Upon completion of the analysis, District

personnel advise the Oregon State Director and the SBA of the analysis results.

3. Analysis Review and Report. State Office personnel review the Districts’ analyses, in

consultation with the SBA Regional Representative, and complete the Semi-annual Status Report of Small

Business Purchases at the end of each six-month period for each market area.

4. Report Distribution. Copies of the report are forwarded to the District Offices, the SBA

Regional Representative, and interested members of the timber and small business community. Ideally the

report is sent within 30 days of the end of the six-month analysis period.

B. Semi-annual Analysis of Small Business Purchases.

1. Analysis Periods. The analysis periods for determining the status of small business

purchases and whether set-aside sales will be required, are the two six-month periods, October 1

through March 31 and April 1 through September 30.

2. Small Business Share of Volume. The small business share of volume for the

analysis period is determined by multiplying the small business market share percentage by the

total volume of timber sold during the period.

3. Adjusted Small Business Share of Volume. The adjusted small business share of

volume for each market area is the small business share of volume in the current analysis period

plus any deficit volume or minus any surplus volume from the preceding analysis period.

4. Current Deficit or Surplus. The current deficit or surplus volume for the market area

is equal to the adjusted small business share minus the volume purchased by the small business

sector in the analysis period.

5. Trigger for Set-Aside Sales. Calculate the adjusted small business share in each

market area at the end of each analysis period. If the analysis shows that the small business sector

failed to purchase at least 90 percent of the adjusted small business share volume, this triggers

set-aside sales for the next six-month regulatory period. Upon completion of the analysis, District

personnel advise the Oregon State Director and the SBA of the results.

a. In all cases, trigger status is determined on the last day of the semi-annual

period. If a market area is triggered, sales are selected for set-aside in the following six-month

period; and the volume objective for set-aside is based on the current share in affect on the date of

the trigger.

b. If set-asides are triggered in a market area, the BLM and SBA negotiate the

selection of sale tracts to be set aside in the following six-month period.

C. Crediting Sawtimber Volumes in the Semi-annual Analysis.

1. General. Only volume sold as sawtimber is included and credited in the semi-annual

analysis and in market share recomputations. Only sawtimber sales offered competitively with

advertised value greater than or equal to $2000 are included in the analysis. Negotiated sale

Appendix-12




Supersedes Rel. All

volumes are not included in the operation of the six-month analysis nor in five-year

recomputations. Whether advertised or negotiated, SSTS volumes are not included in the

calculations for the semi-annual analysis or for share recomputations.

2. Unit of Measure. Beginning in FY1999, 100 cubic-foot (CCF) volumes are used in

all SBA calculations and reports. The Timber Sale Information System converts the BLM standard

reporting unit of 1000 board feet (MBF) to CCF for SBA purposes, using the conversion factor of

1 MBF = 1.67 CCF.

3. Sale Date. Credit purchased sawtimber volume to the size/class of the purchaser

using the sale date (i.e., offer date) of the timber sale. The only exception to using the initial sale

date for crediting volume may occur when a no-bid sale is purchased under the 90-day sale

provisions (section III.E).

4. SBA Size/Class. The SBA size definition will be the basis for analyzing the set-aside

sales. The State Director maintains a list of all timber operators within the State Director's area of

jurisdiction; SBA size definitions are used to rate each business as large or small. Manufacturing

capability of each operator is included. This list must be updated periodically with information

furnished by the Districts and SBA representatives. The record is used to:

a. Check against the small business qualifiers for set-aside sales,

b. Monitor small business purchases, and

c. Recompute the small business market shares.

5. Open Sales Purchased by Manufacturers. Sawtimber volume purchased by a

manufacturer in an open sale is fully credited to the size of the manufacturer on the sale date, either

Small Manufacturer (SM) or Large Manufacturer (LM).

6. Open Sales Purchased by Non-manufacturers. Volume purchased in an open sale by

a non-manufacturer (SN or LN) is credited to small business and/or large business based on the

ratio of non-manufacturer volume of log deliveries to small and large business (from a two-year

history of non-manufacturer log deliveries) in that market area. The State Director will update the

ratios annually, based on rolling two-year historical log delivery data obtained from the BLM form

5450-15, Log Scale and Disposition Report (see the BLM online forms library), as entered into the

TSIS.

7. Set-Aside Sales Purchased by Manufacturers or Non-manufacturers. Set-aside

volume purchased by a small manufacturer or a small non-manufacturer is credited entirely to

small business in the semi-annual analysis and in share recomputations.

For no-bid set-aside sales that are subsequently purchased by a large business in accordance with

section III.E, below, the volume will be credited to small business in the semi-annual analysis but

will be credited to large business in recomputations.

Appendix-13




Supersedes Rel. All

8. No-Bid Sales. No-bid sales are not credited in the semi-annual analysis because the

SBA set-aside program is based on sold volumes, where there is a purchaser with a size/class.

However, track no-bid sales for documentation purposes, in particular, no-bid set-aside sales.

When no-bid set-aside sales are subsequently purchased by a large business in accordance with the

90-day sale provisions (H-5440-1, CONDUCT OF SALES), credit the volume to small business in

the semi-annual analysis, and credit the volume to large business in market share recomputations.

a. Crediting No-Bid Set-Aside Sales Reoffered and Purchased as an Open Sale.

When a no-bid set-aside is purchased as an open sale re-offered to all bidders, and as the same sale

without modification except for the set-aside provisions, and within the time limits given above,

the volume is credited entirely to small business in the semi-annual analysis regardless of the

size/class of the purchaser. If the purchaser is a large business, the volume will be credited to small

business in the semi-annual analysis but will be credited to large business in recomputations.

b. Date for Crediting No-Bid Sales Purchased under 90-Day Sale Provisions. Use

the sale date for crediting volumes of all sales purchased under the 90-day sale provisions, whether

originally no-bid as an open or no-bid as a set-aside (per BLM and SBA agreement, 12/04/08). The sale date

is the date the bid sheet is completed at the end of the oral auction (if needed), or at the end of the seven-day

waiting period.

D. Data Adjustments in the Semi-annual Analysis.

1. Time Limit for Making Adjustments in the Semi-annual Analysis. For the

semi-annual analysis, corrections for errors or other adjustments to data are only allowed in the

current six-month period being analyzed and in one prior period.

2. Delays in Contract Award and Failure to Award. Do not make adjustments to data

for delays in contract award. If it is determined that the purchaser will not be awarded the contract,

make adjustments in accordance with the time limits in F.1, above.

3. Appealed, Litigated, Defaulted, or Assigned Timber Sales. In all cases, sawtimber

volume will be credited to the size/class of the initial purchaser using the sale date of the timber

sale. No adjustments will be made for defaults or assignments to a third party. No adjustments will

be made for sales unawarded but not terminated, including sales under protest, appeal, or

litigation.

4. Sales Abnormally Terminated Prior to Harvest. Sales that are abnormally terminated

prior to harvest (withdrawn, turned back, or otherwise cancelled) will be removed from the data

used for the semi-annual analysis if termination occurs within the same semi-annual analysis

period as the sale date, or in one ensuing six-month period. In this context, “prior to harvest”

means no trees were cut in relation to the sale, including right-of-way trees. Make adjustments in

accordance with the time limits in D.1, above.

5. Data Adjustments at Time of Recomputation. The data reported in the Semi-annual

Status Reports over the five-year period are used for market share recomputations. Additional data

adjustments are allowed at time of recomputation in only two cases.

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a. Sales Abnormally Terminated Prior to Harvest. Sales that are abnormally

terminated prior to harvest (withdrawn, turned back, or otherwise cancelled) will be removed from

the data used for the recomputation. In this context, “prior to harvest” means no trees are cut in

relation to the sale, including right-of-way trees.

b. Set-Asides Sold to Large Business. For no-bid set-aside sales that are

subsequently purchased by a large business, the volume will be credited to small business in the

semi-annual analysis but will be credited to large business in recomputations.

E. Semi-annual Status Report Workbook. The Semi-annual Status Report of Small Business

Purchases is available electronically as a Microsoft Excel™ workbook (illustration 8). The

workbook includes individual worksheets for each semi-annual period as well as a summary

worksheet for the five year recomputation period. All volumes are displayed in CCF.

1. Volume Distribution Period Worksheets. The TSIS semi-annual SBA report

electronically populates the individual semi-annual period worksheet data fields. District

personnel are responsible for promptly entering contract data in TSIS. Volume credit is distributed

to appropriate columns and the totals credited to small and large business is summed

automatically. Non-manufacturer volume credit is also electronically populated from the TSIS

two-year rolling average of non-manufacturer delivery report on an annual basis.

No-bid sales should be entered for documentation purposes. Do not enter the volume in column 6.

Special salvage timber sales are reported in the Excluded Section at the bottom. If needed, use the

Remarks section at the bottom for additional information.

2. Summary Worksheet. Formulas are used to automatically calculate the Small

Business Share of Volume for the period (col 4), the Adjusted Small Business Share of Volume

(col 5), 90 percent of the Adjusted Share (col 6), Current Deficit/Surplus (col 9), and Trigger

Status (col 10). If triggered, the set-aside volume for next period is manually entered in column 11.

Formulas are also used to automatically calculate the cumulative volume sold (col 3), cumulative

volume purchased by small businesses (col 8), and the cumulative percentage purchased by small

businesses (col 13). If no data adjustments are needed at time of recomputation, this cumulative

percentage would equal the indicated market share. Period 10 from the previous five-year period is

included on the summary sheet because the data analysis period for the 2010 five-year

recomputation will be 04/01/2005 through 03/31/2010. (IM No. OR-2008-089)

IV. SCHEDULING AND SELECTION OF REGULAR SET-ASIDE SALES.

A. Annual Timber Sale Plan. In addition to the requirements and responsibilities for

development and implementation of the annual timber sale program set forth in this handbook

section, the following direction applies specifically to the BLM–SBA set-aside program.

Regulations in 43 CFR 5410.0-6 direct that an annual timber sale plan will “indicate generally the

probable time when various tracts of timber included in the plan will be offered for sale, set-asides

if any, and the probable location and anticipated volumes of such tracts.”

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In some circumstances the SBA Regional Representative may request the District Manager to

provide a draft of the proposed annual sale plan for SBA review. The District Manager prepares a

draft of the proposed annual sale plan for SBA review and identifies tracts that qualify for set-aside

designation utilizing only the road control policy elements described in section IV.H, below. The

District manager sends the proposed sale plan to the SBA Regional Representative who may

subsequently make specific set-aside requests. The SBA should be allowed sufficient time and

opportunity to review the proposed annual timber sale plan in advance of final publication of the

advertisement of sales.

B. Scheduling Set-Aside Sales. The BLM–SBA set-aside program is managed on the basis

of two six-month analysis periods during the fiscal year, October 1 through March 31 and April 1

through September 30. Ideally, tracts that qualify for set-aside offerings should be scheduled

equitably throughout the fiscal year for a designated market area. Thus, if set-aside sales are

triggered at the end of a given analysis period, there would be a better opportunity to correct the

deficiency of sales to small business in the following six-month period.

C. Set-Aside Selection Procedures. If set-aside sales are triggered in a market area, the

following actions must be taken.

1. District personnel will coordinate and consult with the BLM State Office and/or the

SBA Regional Representative, as necessary, to discuss all of the tracts listed in the sale plan that

qualify for set-aside in the triggered market area and that will be offered during the next

semi-annual period. The criteria-for-evaluation elements are examined at this time (section IV.F).

2. The BLM and SBA will negotiate the selection of proposed set-aside tracts.

Sufficient set-aside volume should be selected to approximate the predicted adjusted small

business share for the next period (section IV.D).

3. Under formal procedures, SBA will request the BLM approval of proposed set-aside

tracts on SBA form 441, Joint Set-Aside for Small Business (illustration 9). If the BLM and SBA

are in agreement on the set-aside sales to be offered during the next regulatory period, SBA form

441 is signed by the District Manager and the SBA Regional Representative (section IV.E).

In some circumstances a less formal process is used in which form 441 originates at the BLM: the

District Manager recommends set-aside sales to the SBA on SBA form 441 and sends two signed

copies to the SBA Regional Representative in lieu of an SBA request for set-asides. This less

formal process has proven to be more efficient for both agencies, especially when a good working

relationship between the SBA and District exists.

4. If the evaluation criteria do not permit setting aside the full volume of the adjusted

small business share, commitment may be made to offer the full set-aside volume in more than one

six-month period.

5. The BLM and SBA retain the prerogative to create or withdraw set-aside sales

should circumstances warrant such action. In such a case, a Revised form 441 is executed.

6. In the event a determination is made to reject an SBA request for set-aside, the

procedures described below in section IV.K should be implemented.

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D. Set-Aside Volume Objective. Effective October 1, 1990, where a set-aside program is

triggered in a market area, the set-aside volumes will be subject to the following limitations.

1. Trigger. If the calculations at the end of a six-month period indicate a set-aside

program is triggered for the following period, then the set-aside volume objective will be

approximately equal to the full small business share of the total planned sales volume plus the

deficit except as described in 2 and 3 below.

2. Initial Trigger. When an initial trigger occurs, that is, when set-asides are triggered in

a period that follows a period when no trigger occurred, the volume set-aside will be

approximately equal to one-half the sum of the small business share of planned sales volume plus

the deficit. The exception to this will occur with (3), below.

3. Trigger within One Year of Recomputation (Final). If the small business set-aside

program is triggered during either of the final two six-month periods of the five-year

recomputation period, then the set-aside volume will be approximately equal to the full small

business share plus the deficit regardless of whether it is an initial trigger.

4. Twenty Percent Open Volume Limitation. No less than twenty percent of each

market area’s total sale program volume offerings in an analysis period must be available for open

bidding. In no case will the set-aside volume exceed 80 percent of the planned total sale program

for the analysis period.

5. Set-Aside Volume Deferred to Future Periods. If the evaluation criteria do not permit

setting aside the full volume of the adjusted small business share, BLM may choose to offer the

full set-aside volume in more than one six-month period.

E. SBA Form 441 – Joint Set-Aside for Small Business. When the BLM and SBA have

agreed on which sales will be set-aside for the next six-month period in a Market Area, the District

Manager and the SBA Regional Representative sign SBA form 441, Joint Set-Aside for Small

Business. A signed copy is retained by the District and SBA, and a copy is forwarded to the

Oregon State Office.

The SBA developed an electronic version of form 441 as a Microsoft Excel™ workbook

(illustration 9).

The workbook contains three worksheets for each of the three different trigger situations described

in section IV.D, above: Trigger, Initial Trigger, and Final Trigger (within one year of

recomputation). Select the appropriate worksheet, copy it, rename it with the fiscal-half, and enter

the following information and data.

1. Top Right-Hand Corner. Enter Market Area, location, and current small business

market share percentage. The Case No. is the fiscal half-year for which set-asides are being

selected and corresponds to the Sales Period. For example, Case No. FY2009-1 for Sales Period

10/01/2008 to 03/31/2009. Date Screened is the date that the BLM and SBA have come to

agreement on the set-aside selections even though the form 441 may not be signed yet.

Appendix-17




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2. Columns on the Right-Hand Side (RHS). Enter the names of all sawtimber sales

planned for the six-month period along with the corresponding estimated sawtimber volumes in

CCF. Formulas at the bottom will calculate the Total Planned Sales Volume and calculate 80

percent of the Total Volume for purposes of the 20 percent open volume limitation.

3. Columns on the Left-Hand Side (LHS). When specific sales have been selected for

set-aside, carry those sale names to the LHS with the corresponding estimated sawtimber volumes

in CCF. At the bottom of this column, enter the absolute value of the Deficit Volume that caused

the trigger as reported on the current Semi-Annual Status Report for the Market Area. Formulas

will calculate the Total Set-Aside Volume and the Set-Aside Volume Objective as described in

section IV.D, above.

4. No Sales Selected for Set-Aside. If no sales are selected for set-aside in the fiscal

half-year for the Market Area, state this on the LHS along with the reason. For instance, “No sales

selected because no sales are planned” or “No sales selected due to the 20 percent open volume

limitation.”

5. Signatures. When agreement has been reached, the District Manager signs and dates

two copies of form 441. Under the informal process, both copies are forwarded to the SBA

Regional Representative, who then signs and dates both copies. The SBA retains one original and

returns one original to the District. A copy is also forwarded to the Oregon State Office.

F. Criteria for Evaluation of Proposed Set-Aside Tracts. For both the activated and

non-activated programs, individual tracts are evaluated based on the following factors.

1. BLM timber sale program requirements.

2. Volume and type of timber offered, including species mix and size of material.

3. Size and topography of the sale area.

4. Timber sale complexity in relation to the capabilities of the small business

community.

5. Designated logging equipment and logging methods.

6. Road construction requirements.

7. Other anticipated contractual requirements.

8. Status of road control on roads to be used for timber removal. (See sections IV.G and

H, below.)

9. Needs of the local community and industries for economic stability and assuring that

a fair portion of sales are made to small business concerns based on:

a. Competition and demand for sales.

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b. Past history of sales purchased by small business concerns.

G. Privately Owned or Controlled Roads. In selection of set-aside sales for preferential

bidding by small business, the status of road control on the roads to be used for timber removal

must be considered. Effective May 13, 1976, operating procedures were adopted for gaining

access to SBA set-aside timber sales. Set-aside sale contract areas will be accessed using one or a

combination of the following.

1. Public roads.

2. Roads owned or controlled by the Federal government.

3. Roads owned or controlled by a private firm or individual, but over which the

Federal government has use rights for its licensees by means of a non-exclusive easement.

4. Roads owned or controlled by a permittee of the Federal government who qualifies

as a small business concern as identified by the SBA, when such roads are subject to use by the

Federal government and its licensees and permittees through a Bureau right-of-way permit or

agreement.

5. Roads owned or controlled by a permittee of the Federal government who does not

qualify as a small business concern as defined by the SBA when such roads may be used by the

Federal government and its licensees and permittees through a Bureau right-of-way and road-use

permit or agreement executed on or after July 18, 1958. (This includes any such permit or

agreement executed on or before July 18, 1958, but which has been assigned or superseded by a

new permit or agreement executed on or after July 18, 1958).

Policy element 5 will only be applied as a last resort when the other four elements have been

exhausted, or when an equitable distribution of set-aside sales is impaired. If policy element 5 is

considered, additional procedures are required (see section IV.H, next).

H. Use of Reciprocal Right-of-Way Agreements for SBA Set-Aside Timber Sales. The

BLM issued IM No. OR-2003-100 to clarify procedures for SBA set-aside timber sales that

involve BLM Reciprocal Right-of-Way Agreements with non-SBA qualified permittees that

predate the July 18, 1958, amendment to the Small Business Act.

Pre-1958 reciprocal right-of-way agreements that have not been assigned or superseded by a new

permit and agreement on or after July 18, 1958, continue in effect throughout western Oregon.

Many pre-1958 agreements include language requiring that the permittee be allowed to bid on any

Federal timber offered for sale in the agreement area. This situation could prevent the BLM from

meeting the objectives of the USDI and SBA timber sale program MOU where the permittee does

not qualify as a small business under 13 CFR Part 121. For this reason, access to Federal timber

considered for SBA set-aside timber sales should be thoroughly reviewed with respect to the use of

pre-1958 reciprocal right-of-way agreements.

The BLM should not consider the tributary timber for SBA set-aside timber sales where the terms

of the agreement allow the permittee to bid on that timber or, alternatively, the BLM may attempt

to obtain a written waiver of the applicable agreement provisions from the permittee. If necessary,

Appendix-19




Supersedes Rel. All

utilize access under reciprocal right-of-way agreements that predate July 18, 1958, only after

obtaining written agreement from a non-SBA qualified permittee (illustration 10).

I. Non-activated Small Business Set-Aside Program. Under this program, SBA determines

if a need exists for set-side implementation. District personnel refer any industry requests or

suggestions for set-aside sales to the SBA Regional Representative. After a review of the District

proposed sale plan, the SBA may request the set-aside of a specific tract or tracts. Formal request is

submitted on SBA form 441, Joint Set-Aside For Small Business, in the same manner as for the

activated program.

The District Manager evaluates the SBA proposal to determine from past purchase records if the

set-aside request is warranted, and/or if the tract or tracts nominated qualify.

1. Upon a favorable evaluation by the District Manager of the SBA request for set-aside

sales via submission of form 441, the following action should take place for tracts deemed suitable

for set-aside.

a. The District Manager signs and distributes SBA form 441. The District

Manager's signature constitutes agreement between the BLM and SBA.

b. The District Manager makes appropriate notation beside the sale number on the

annual timber sale plan to denote the tract or tracts that have been set-aside for small business

concerns.

2. Where tracts are deemed as not suitable for set-aside:

a. The District Manager contacts the SBA to negotiate suitable substitution of tract

or tracts to offer as set-aside.

b. If the SBA agrees to a change, it amends SBA form 441 and resubmits it to

District Manager who then proceeds pursuant to paragraph I.1.a, above.

c. If SBA and the District Manager cannot agree to a change, the District Manager

rejects the request and proceeds in accordance with direction described below in section IV.J, next.

J. Rejection of SBA Request for Set-Aside Sales. The following applies to both the

Activated and Non-activated Programs when the District Manager has an unfavorable evaluation

of an SBA request for set-aside sales.

1. The District Manager documents reasons for rejecting the SBA proposal on the

reverse side of SBA form 441. The original and two copies are forwarded to the Oregon State

Director (illustration 11).

2. The Oregon State Director evaluates the set-aside request and the District Manager's

reasons for rejection.

3. The Oregon State Director contacts the SBA Regional Representative and seeks to

have the SBA reconsider the request or rescind proposal.

Appendix-20




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a. If the SBA rescinds its proposal, return all copies of SBA form 441 to the

District Manager with a memorandum notifying the District Manager of SBA's decision, and sends

a copy of the memorandum to the SBA.

b. If agreement is reached with the SBA to proceed with the set-aside sale, the

Oregon State Director signs SBA form 441 and returns the original to the District Manager

together with a memorandum stating reasons for supporting the SBA request. The District

Manager then forwards one signed copy to the SBA.

4. If agreement is not reached with the SBA, the Oregon State Director notifies the

BLM Director of the decision to reject the SBA request and sends a copy of the memorandum to

the SBA Regional Representative.

5. The BLM Director contacts the SBA Administrator and attempts to resolve the

disagreement.

a. If the differences are resolved, the BLM Director notifies the Oregon State

Director, who in turn instructs the District Manager of the resolution.

b. If the differences are unresolved, the SBA has 20 days after notice of

disagreement to submit questions to the Secretary of the Interior for a final determination.

c. If the SBA does not act in specified 20-day period, the BLM Director decides on

the BLM's course of action. No action is taken to advertise sales in dispute until a final decision is

reached.

V. SPECIAL SALVAGE TIMBER SALE PROGRAM.

The SSTS program is independent of the regular SBA set-aside program. Timber volumes from

SSTSs are not included in the semi-annual analysis, market share recomputations, or other BLM–

SBA Timber Program calculations. However, the Districts are encouraged to offer SSTSs when

appropriate to support the loggers who operate in their area.

A. Cooperative Jurisdiction and Administration. The BLM and the SBA agreed to activate

the SSTS program in western Oregon on April 1, 1985 (illustration 12). The agreement provides

for preferential award of certain salvage sales offered to loggers and forest product concerns

qualified under size standards published in SBA regulations at 13 CFR §121.

B. SSTS Small Business Qualifications. In order to be eligible to purchase an SSTS as a

small business, a concern must:

1. Be primarily engaged in the logging or forest products industry;

2. Be independently owned and operated;

3. Not be dominant in its field of operations; and

Appendix-21




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4. Together with its affiliates, not employ in excess of 25 individuals during any pay

period for the past 12 months.

C. Operational Guidelines. District Managers in the five western Oregon Districts will use the

following guidelines for the SSTS program.

1. Special salvage timber sales:

a. Contain a predominance of insect-infested, dead, damaged, or down timber, plus

associated trees that should be removed for stand improvement;

b. Have a contract period no longer than one year; however, where a sale is sold

part way through a logging season, the sale period may extend through the following operating

season;

c. Involve only minor road construction or reconstruction and maintenance;

d. Do not involve catastrophic damage, such as fire or windstorm, or a loss

resulting from a single, identifiable event that affects volume of more than one million board feet

in the affected district within any six-month period.

2. SSTSs may be advertised or negotiated but must, in all cases, meet the SBA size

standard and other requirements given above.

3. A special salvage timber set-aside sale may be reassigned only to another party that

qualifies for the preferential award.

VI. PREPARATION FOR SALE.

Preparation of all timber sales is to be conducted consistent with direction contained in H-5420-1,

PREPARATION FOR SALE.

VII. SALE ADVERTISEMENT.

Advertising requirements for the sale of timber and forest products are addressed in detail in

(H-5430-1, ADVERTISEMENT). The district prepares a notice for small business set-aside sales

in the same way as a regular notice, except that certain portions of the notice refer to specific

set-aside bidding requirements.

A. Regular Set-Aside Timber Sale Notice. The district prepares a notice for small business

set-aside sales in much the same way as a regular notice, except that certain portions of the notice

refer to specific set-aside bidding requirements (illustration 13). The following language must be

included in the notice for regular SBA set-aside sales:

FOR SBA SET-ASIDE TRACTS, the bidder must not have been determined by the

Small Business Administration to be ineligible for preferential award for set-aside sales

and must accompany the bid deposit with a self-certification statement that the bidder is

qualified as a small business concern as defined by the Small Business Administration in

Appendix-22




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its regulations, Title 13, Chapter I, Part 121 (Revision 7) as amended, of the Code of

Federal Regulations. The form 5430-1, Self Certification Statement, is attached hereto.

The successful bidder will be required to sign SBA form 723, "Small Business

Certification Required on All Preferential Sales of Set-Aside Timber," at the time the

timber sale contract is signed. Section 2(a) of form 723 requires that successful bidders on

SBA set-aside tracts must comply with delivery requirements pertaining to timber

volume. No more than 30 percent of the timber volume from a set-aside sale may be

delivered for manufacturing to a business that is not a small business, as defined by the

SBA (13 CFR 121.507 (a)). A copy of SBA form 723 is attached.

In addition to those forms described in Timber Sale Handbook H-5430-1, ADVERTISEMENT,

section V.A.2, attach the following forms to the sale notice for a regular set-aside sale: form

5430-1, Self-Certification Clause (illustration 4); and SBA form 723, Small Business Certification

Required on all Preferential Sales of Set-Aside Timber (illustration 5).

B. SSTS Notice. The district prepares a notice for an SSTS in much the same way as for a

regular set-aside sale, except that SBA form 723 is not required and is not attached to the notice.

The following language must be included in the notice for special salvage set-aside sale tracts:

“This is a special salvage timber sale set-aside for preferential bidding by small business concerns

having 25 or fewer employees as defined by the Small Business Administration.”

“FOR SET-ASIDE TRACTS, the bidder must not have been determined by the Small Business

Administration to be ineligible for preferential award of set-aside sales and must accompany the

deposit with a self-certification statement that the bidder's business is qualified as a small business

concern as defined by the Small Business Administration in its regulations, Title 13, Part 121 as

amended, of the Code of Federal Regulations. Form 5430-1, Self Certification Statement, is

attached hereto.”

In addition to those forms described in timber sale handbook H-5430-1, ADVERTISEMENT,

section V.A.2, attach form 5430-1, Self-Certification Clause, to the SSTS notice. Do not attach

SBA form 723 to an SSTS notice.

C. Forest Product Sale Prospectus. The sale prospectus is a supplemental document to the

newspaper advertisement and the forest product sale notice, and provides more detailed

information regarding the sale than is contained in the forest product sale notice. If the sale is a

regular small business set-aside, the heading contains the title, "Set-Aside Sale." If the sale is an

SSTS, the heading contains the title, "SSTS Set-Aside Sale." The applicable phrase may also be

stamped at the top of the page.

VIII. CONDUCT OF SALES.

Requirements for conducting the sale of timber and forest products are addressed in detail in

Timber Sale Handbook (H-5440-1, CONDUCT OF SALES). In addition to the standard

requirements for open sales, the following material specifically applies to sales designated for

preferential bidding by small businesses under the BLM–SBA Set-Aside Program.

Appendix-23




Supersedes Rel. All

A. Auction Language. During an oral auction for an SBA set-aside sale, add the following

sentences to standard auction language to be read aloud, as described in H-5440-1, CONDUCT OF

SALES.

For set-aside tracts, the bidder must not have been determined by the Small Business

Administration to be ineligible for preferential award of set-aside tract sales. A

self-certification statement must be submitted with the bid that shows that the bidder is

qualified as a small business concern as defined by the Small Business Administration in

its regulations. The self-certificate clause must be dated with today’s sale date. The

contract will not be awarded to the high bidder for a period of five days. During this

period, a bidder or other interested party may protest the small business status of the high

bidder. If a protest is received, the contract will not be awarded, pending determination of

the high bidder’s qualifications by the Small Business Administration. Protests must be

submitted in writing.

The successful bidder will be required to sign SBA form 723, Small Business Certification

Required on All Preferential Sales of Set-Aside Timber, at the time they sign the timber sale

contract. Section 2(a) of form 723 requires that successful bidders of SBA set-aside tracts

must comply with delivery requirements pertaining to timber volume. No more than 30

percent of the timber volume from a set-aside sale contract may be delivered for

manufacturing to a business that is not a small business, as defined by the SBA.

B. Qualifications of Bidders for SBA Set-Aside Sales including SSTSs. In sales of forest

products set aside for preferential award to small business concerns, the bidder must meet the

following additional requirements to qualify for bidding. These conditions apply to both the

regular set-aside and SSTS programs.

1. Self-Certification. A self-certification statement must be submitted that shows the

bidder is a small business concern as defined by the Small Business Administration in its

regulations at 13 CFR 121. The certification is made on form 5430-1, Self-Certification Clause

(illustration 4). The self-certification statement must accompany the purchaser’s bid deposit (43

CFR §5441.1) and be dated with the sale day’s date.

2. Eligibility. For set-aside tracts, the bidder must not have been determined by the

SBA to be ineligible for preferential award of set-aside sales.

C. Rejection of Bids. The Timber Sale Contracting Officer, or the Sale Supervisor

conducting the sale, is authorized to reject any or all bids during a sale when it is in the interest of

the Government to do so. During regular sales, a bid should be rejected in the following situations.

1. Bid Deposit. The bid deposit submitted is less than the required amount.

2. Bid Price. The total bid price does not equal or exceed the advertised total appraised

price.

3. Qualifying Documents – Set-Aside Sales including SSTS. The Bidder for a small

business set-aside sale fails to submit a properly completed Self-Certification Clause, form

5430-1, to qualify for bidding.

Appendix-24




Supersedes Rel. All

D. No-Bid Set-Aside Sales.

1. Ninety-Day Sale Re-offer. When an offered set-aside sale receives no bids, promptly

open the sale to all bidders, without modification or adjustment to sale terms except for removal of

set-aside provisions, under the 90-day sale provisions (H-5430-1, ADVERTISEMENT). The

purpose is to provide a fair opportunity for all potential purchasers to bid on the same sale under

the same terms and conditions except for the set-aside provisions.

The sale may be kept open for a lesser period, for example 30 days; however, if a lesser period of

time is selected, it must be stipulated in the sale notice. Except for carryover time due to the

required seven-day posting period of a bid on a 90-day sale, the sale cannot be offered beyond the

stipulated time period without first re-appraising and re-advertising the sale. Whenever possible,

the open sale offering should remain within the same six-month period as the original set-aside

sale that went no-bid.

Bids may be received from both small and large business concerns and the sale awarded to the high

bidder without concern for size standards of the high bidder. The SBA Regional Representative

must be notified of the results of such a 90-day offering.

2. Abandon Set-Aside Status for 90-Day Sale. Remove all set-aside references, clauses,

and forms from the sale notice and prospectus, but do not make any modifications or adjustments

to the sale terms, or rollback the price as may be allowed for other no-bid sales in H-5430-1,

ADVERTISEMENT.

3. Delivery Requirements for 90-Day Sales. When a regular no-bid set-aside sale is

reoffered under the 90-day sale provisions as the same sale open to all bidders, the SBA

Regulations at 13 CFR 121 do not apply to the sale offering. Therefore, no 30/70 rule delivery

requirements apply, and the Purchaser does not sign SBA form 723.

4. Unsold 90-Day Sale. If the no-bid sale still does not attract bidders under the 90-day

sale provisions, re-offer the sale under the same initial classification (open or set-aside). If the sale

is re-offered during a subsequent triggered period then the sale must be designated set-aside. If the

trigger has been satisfied or the sale is re-offered in an open period then the sale may be an open

sale.

5. Modification of a No-Bid Set-Aside Sale. If any modifications or adjustments are

made to the sale terms of a no-bid set-aside prior to re-offering as an open sale, the sale will no

longer be considered the same sale. For this purpose, modifications of sale terms include, but are

not limited to, adjustments to sawtimber volumes, appraised price (including a price rollback),

logging method, or contract length.

6. Crediting Volume for No-Bid Sales. For no-bid set-aside sales that are subsequently

purchased by a large business under the 90-day sale provisions, the volume will be credited to

small business in the semiannual analysis but will be credited to large business in recomputations

(section III.B).

Appendix-25




Supersedes Rel. All

For no-bid sales that are subsequently modified, the re-offer will be credited as an open sale in the

six-month period in which it sells, and will not be automatically credited to small business in the

semi-annual analysis.

IX. AWARD OF CONTRACT.

The authority, responsibility, and policy pertaining to the award of a timber sale contract is set

forth in H-5450-1, AWARD OF CONTRACT, which establishes the basic procedural guidelines

for open and set-aside timber sales. The following material specifically applies to sales purchased

by small businesses as defined by SBA, or to sales offered as set-aside sales.

A. Pre-award Qualifications. Before awarding a timber sale contract, the Contracting Officer

must determine that the high bidder, or prospective purchaser, is qualified to carry out the terms of

the contract.

1. SBA Certificate of Competency Program. The Certificate of Competency (COC)

Program is authorized under section 8(b)(7) of the Small Business Act. Procedures are set forth in

SBA regulations at 13 CFR §125.5. A COC is a written instrument issued by the SBA to a

Government contracting officer, certifying that one or more named small business concerns

possess the responsibility to perform a specific Government contract. The COC program is

applicable to all Federal timber sales where the apparent high bidder is a small business, as defined

by SBA, whether the sale is a set-aside or not.

a. A contracting officer must, upon determining that a small business apparent

high bidder is non-responsible, refer that small business to SBA for a possible COC, even if the

next highest bidder is also a small business (13 CFR §125.5(a)(2)).

b. Elements of responsibility include, but are not necessarily limited to,

competency, capability, capacity, credit, integrity, tenacity, or perseverance (13 CFR §125.5(c)).

Non-responsibility is not the same as non-responsiveness.

c. A contracting officer who determines that a small business apparent high bidder

lacks any element of responsibility, must refer the matter in writing to the SBA Office of

Government Contracting area office serving the area where the sale is located.

d. Contract award must be withheld by the contracting officer for a period of 15

working days (or longer if agreed to by SBA and the contracting officer) following receipt by the

appropriate Government Contracting Area Office of a referral that includes all required

documentation (13 CFR §125.5(c)(3)).

e. The SBA Area Director, Office of Government Contracting, will make a final

determination, in writing, to issue or to deny the COC (13 CFR §125.5(g) and (i)(3)).

2. Financial Statement. For a first-time high bidder, or a high bidder with a history of a

defaulted contract, the contracting office should request a financial statement. Request for a

financial statement in association with a negotiated cash sale is discretionary with the Timber Sale

Contracting Officer.

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As a general rule, the financial statement is evaluated by the State Director who will advise the

Timber Sale Contracting Officer of the financial capability of the high bidder and whether to

accept or reject the high bid. If the high bidder is a small business, as defined by the SBA, and

appears to lack the financial capability to meet contract requirements, the State Director will

advise the Timber Sale Contracting Officer to withhold awarding the contract to allow the high

bidder to secure a Certificate of Competency from the SBA.

3. Evaluation of Prior Performance. If BLM records reveal that a high bidder, or

prospective purchaser, has been a notoriously poor performer or an irresponsible operator (i.e., a

history of repetitive BLM demands or suspensions to correct delinquent payments or to complete

contract requirements, or alleged violations of export rules) but the operator has not been

interdicted, debarred, suspended, or otherwise disqualified from buying BLM forest product, the

contract should not be awarded pending a review of the matter by the State Director. If the high

bidder is a small business as defined by SBA, the high bidder will be referred to SBA for a

Certificate of Competency.

4. COC Referral. If the small business apparent high bidder is referred for a Certificate

of Competency from the SBA, then:

a. The Timber Sale Contracting Officer advises the high bidder that award of

contract is being withheld until a Certificate of Competency is obtained.

b. The Timber Sale Contracting Officer forwards the COC referral package to the

appropriate SBA Government Contracting Area Office. (For Oregon: SBA, Office of Government

Contracting - Area VI). The referral will include all pertinent available information concerning the

company, the sale in question, a copy of the bid record for the sale, and any other justification and

documentation used to arrive at the non-responsibility determination in accordance with 13 CFR

§125.5(c).

c. The SBA will normally make a decision within 15 working days of a request by

the BLM.

(1) If the SBA issues the certificate, the Timber Sale Contracting Officer

proceeds with award of contract.

(2) If SBA does not issue the certificate, the bidder fails to qualify.

B. Small Business Size Standard Protest. The process and requirements for size protests and

formal size determinations are defined in SBA Regulations at 13 CFR §121.1001-1010.

1. For advertised set-aside sales including SSTSs, a grace period of five working days

must be allowed, extending from day of sale, prior to formally awarding the contract to the high

bidder. During this period, other qualified bidders may protest in writing the size standard of the

apparent high bidder.

2. In the event a written protest is received, the Timber Sale Contracting Officer must

not award the contract pending a determination of the high bidder's qualifications by the SBA.

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3. The District Manager forwards to the appropriate SBA Government Contracting

Area Office (for Oregon: SBA, Office of Government Contracting - Area VI) copies of the written

size protest and bid record for the sale.

4. SBA then has the responsibility to make a size determination pursuant to SBA rules

and regulations. When the SBA receives a size protest, it will:

a. Notify the contracting officer, protested concern, and the protestor that the

protest has been received (13 CFR §121.1008).

b. Make a formal size determination within 10 working days, if possible (13 CFR

§121.1009).

c. Promptly notify the contracting officer, protested concern, and the protestor in

writing of the results of the size determination (13 CFR §121.1009).

5. A contracting officer may award a contract based on the SBA’s formal size

determination.

a. If the high bidder is determined to be a small business, the Timber Sale

Contracting Officer continues with award of set-aside contract.

b. A determination by the SBA of "other than small business" makes the high

bidder ineligible to receive the set-aside contract. The Timber Sale Contracting Officer notifies the

high bidder of disqualification.

(1) Under such circumstances, the bid deposit of the high bidder will be

returned. The notice should be sent by certified mail.

(2) The contract is offered to the remaining SBA-qualified small business

bidders. If another bidder is willing to accept the contract, the Timber Sale Contracting Officer

must again provide for a grace period of five working days prior to awarding the contract. The

grace period begins from date of notification of remaining bidders. The Timber Sale Contracting

Officer contacts all remaining bidders, and advises that another bidder will be awarded the contract

if the qualifications are met.

C. Award of Set-Aside Sales.

1. Delay Award of Set-Aside Sales for Five Days. For advertised set-aside sales

including SSTSs, a grace period of five working days must be allowed, extending from day of sale,

prior to formally awarding the contract to the high bidder. During this period, other qualified

bidders may protest in writing the size standard of the apparent high bidder (H-5450-1, AWARD

OF CONTRACT). If no protests are received within the five-day period, proceed with contract

award.

2. SBA Form 723 for Regular Set-Aside Sales. At the time of contract execution for a

regular set-side timber sale contract, the purchaser certifies his/her agreement to the requirements

of SBA Regulations at 13 CFR 121 by signing SBA form 723, Small Business Certification

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Required on Preferential Sales of Set-aside Timber. This agreement is annexed to the set-aside

contract, thereby incorporating the delivery requirements of the 30/70 rule. The triplicate pages of

the form, or copies thereof, are filed in the following manner:

a. White copy to timber purchaser.

b. Yellow copy to Agency contract file.

c. Pink copy to SBA Regional Representative.

3. The 30/70 Rule for Regular Set-Aside Sales. SBA form 723 specifies detailed

requirements for regular set-aside sales. It does not apply to SSTSs. Paragraphs 1, 2(a), 2(c), and 3

correspond to SBA Regulations at 13 CFR §121.507(a), which define requirements of the 30/70

rule:

No more than 30 percent of the advertised sawtimber volume from a set-aside

sale may be delivered for manufacturing to a business that is not a small

business, as defined by SBA.

4. Recordkeeping for Regular Set-Aside Sales. Paragraph 2(b) on SBA form 723

corresponds to SBA Regulations at 13 CFR §121.507(b) and 13 CFR §121.507(c), which define

detailed requirements for recordkeeping.

Records of transactions regarding sawtimber sold or exchanged from the set-aside sale will be

maintained by the set-aside purchaser, and by re-purchasers of the set-aside sawtimber. Records

will be made available upon request of the Contracting Officer or SBA Representative. At a

minimum, the records must contain the sawtimber volume re-sold, the date, and the name, address,

and size of the company to whom the sawlogs were delivered.

D. Small Business Size Classification. The State Director classifies and lists all timber

operators who operate within the State Director's area of jurisdiction as to large business, small

business, and manufacturing capability in relation to SBA size definitions. This list must be

updated periodically from information furnished by the Districts and SBA representatives. The

record is used to:

1. Check against the small business qualifiers for set-aside sales.

2. Monitor small business purchases.

3. Re-compute the small business market shares.

X. CONTRACT ADMINISTRATION.

The authority, responsibility, and policy pertaining to the award of a timber sale contract is set

forth in H-5450-1, AWARD OF CONTRACT, which establishes the basic procedural guidelines

for open and set-aside timber sales. The following material specifically applies to sales purchased

by small businesses as defined by the SBA, or to sales offered as set-aside sales.

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A. Monitoring the 30/70 Rule. The Contracting Officer monitors delivery of timber from

set-aside sales in the course of administering the set-aside timber sale contract. If noncompliance

with set-aside requirements is suspected, notify the SBA. If the SBA determines that the 30/70 rule

has been violated, appropriate action should be taken.

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Glossary of Terms

30/70 Rule. For regular set-aside sales (not SSTS), no more than 30 percent of the advertised

sawtimber volume from a set-aside sale may be delivered for manufacturing to a business that

is not a small business, as defined by SBA.

Non-manufacturer. A concern that (including its affiliates and its use of leased facilities, and

concerns with whom it or its affiliates subcontract for manufacture of one or more products)

processes less than 50 percent of its annual merchantable timber sale volume removed from

BLM lands within a specific market area (BLM–SBA 1990 Revised Operating Procedures).

Original Base Share. Original small business share percentage for each market area that was

initially established in 1972 using the five-year base period of calendar years 1968-1972,

inclusive. Any market share percentage established by prescribed periodic recomputations

must not be less than 50 percent of the Original Base Share established for the 1968-1972 base

period.

Qualified set-aside tracts. Sale tracts that qualify for set-aside designation utilizing only the road

control policy elements.

Set-aside sale. A timber sale offering that is limited to bidding by qualified small business

concerns as defined by the Small Business Administration in its regulations (13 CFR Part 121)

under the authority of Section 15 of the Small Business Act of July 18, 1958 (72 Stat. 384), as

codified and amended (15 U.S.C. 631 et seq.).

Small business concern. A private business that meets the criteria for small business established by

the U.S. Small Business Administration in regulations at 13 CFR Part 121 under the authority

of Section 15 of the Small Business Act of July 18, 1958, as amended (15 U.S.C. 631, et seq.).

Tributary Timber. Timber for which its associated volume contributes to the road cost sharing

calculations found in the western Oregon reciprocal right of way program.

Trigger for set-aside sales. When the small business sector fails to purchase at least 90 percent of

the adjusted small business share of volume in a six-month period on a market area, where the

adjusted small business share equals the small business share of volume for the period plus

any deficit or minus any surplus volume from the preceding analysis period.

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Illustration 1 Memorandum of Understanding (MOU) WO-11

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Illustration 2 BLM–SBA Revised Operating Procedures, 1990

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Illustration 2 cont'd

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Illustration 3 SBA Regulations at 13 CFR Part §121.501-508

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Illustration 4 Self-Certification Clause Bidder Statement (Form 5430-1)

(See the BLM online forms library)

Form 5430-1 UNITED STATES (May 1965) DEPARTMENT OF THE INTERIOR (formerly 4 - 1560) BUREAU OF LAND MANAGEMENT

SELF CERTIFICATION CLAUSE BIDDERS STATEMENT

The bidder represents that he is is not a small business concern as defined by Title 13, Chapter 1,

Part 121 of the Code of Federal Regulations, as amended.

(Date) (Signature of Bidder)

Title 18 USC, sec. 1001, makes it a crime for any person knowingly and willfully to make to any department or agency of the

United States any false, fictitious or fraudulent statements or representations as to any matter within its jurisdiction.

INSTRUCTIONS

In order to qualify for a set-aside sale, all bidders must certify to being a small business concern by submitting an executed Self Certification Clause. The date on the Self Certification Clause and the sale date must be the same. A Self Certification Clause must accompany the deposit to qualify for each set-aside sale. After a sale

award is made, the Self Certification Clause will be immediately returned, with the deposit, to the unsuccessful bidders but may be re-submitted to qualify for other set-aside sales offered on the same date. The Self Certification Clause submitted by the successful bidder will be retained by the Bureau of Land Management.

GPO 850 – 444 GPO 905716

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Illustration 5 Small Business Certification Required on Preferential Sales of Set-Aside Timber

(SBA Form 723)

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Illustration 6 BLM Director Activation Memorandum

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Illustration 7 Bureau of Land Management Western Oregon – Small Business Market Shares

District - Market Area

Original

Base2

(%)

Fiscal Years

CY1973-

FY1978

(%)

1979-

19853

(%)

1986-

19904

(%)

1991-

19955

(%)

1996-

20006

(%)

2001-

20057

(%)

2006-

20108

(%)

2011-

20159

(%)

Coos Bay 58 58 58 57 57 61 66 67 67

Eugene 45 45 42 41 41 51 56 50 60

Medford 1-Josephine 63 63 61 59 59 65 68 61 64

Medford

2-Jackson/Klamath 57 57 57 54 54 52 57 51 56

Roseburg 43 43 47 45 45 51 56 50 53

Salem 1-Mary's Peak

(Alsea/Rickreal) 42 42 43 42 42 52 57 56 54

Salem 2-Tillamook

(Columbia) 53 53 52 50 50 60 54 49 43

Salem 3-Cascades

(Clackamas/Mollala/

Santiam River)

26 26 31 30 30 40 50 60 66

2 1973 original base computation. Based upon sale data for the period 01/01/1968 through 12/31/1972. Non-mfg

purchases credited 100% to Small business. 3 1978 Recomputation. Based upon sale data for the period 01/01/1973 through 03/31/1978. Non-mfg purchases

credited 100% to Small business. 4 1985 Recomputation. Based upon sales data for the period 04/01/1978 through 03/31/1985. Non-mfg purchases

credited 50% to Small business. Surplus volumes dropped effective 04/01/1985. 5 1990 Consensus Agreement between Large & Small Business dated 09/06/1990. No recomputation. All shares to

remain in effect until scheduled 1995 recomputation. All surplus and deficit volumes dropped effective 10/01/1990. 6 1995 Recomputation. Based upon sales data for the period 04/01/1985 through 03/31/1995. Non-manufacturer

purchases credited on annually updated 2-year rolling average of historical log delivery data. 7 2000 Recomputation. Based upon sales data for the period 10/01/1990 through 09/30/2000. Non-manufacturer

purchases credited on annually updated 2-year rolling average of historical log delivery data. 8 2005 Recomputation. Coos Bay, Eugene, Roseburg, Salem-1 shares were effective 10/01/2006. Medford-1,

Medford-2, Salem-2, and Salem-3 were effective 04/01/2008. All surplus and deficit volumes were dropped on

effective date of new share, respectively. 9 2010 Recomputation. Based upon sales data for the period 10/01/2005 through 09/30/2010. Non-manufacturer

purchases credited on annually updated 2-year rolling average of historical log delivery data.

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Illustration 8 Semi-Annual Status of Small Business Purchases Volume Distribution Worksheet

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Semi-annual Status of Small Business Purchases Summary Worksheet

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Appendix-53




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Appendix-54




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Appendix-55




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Appendix-57




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Appendix-58




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Illustration 9

Set-Aside for Small Business (SBA Form 441)

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Illustration 10 Example of Agreement Language from a Non-SBA Qualified Permittee

Access under pre-1958 Right-of-Way and Road Use Agreements

to Accomplish SBA Set-Aside Timber Sales

Bureau of Land Management (BLM) records indicate that BLM and (insert permittee name) have

entered into Reciprocal Right-of-Way Agreement No(s). (insert right-of-way agreement

number[s]), which is/are dated (insert right-of-way agreement origination date[s]). The BLM is

planning the (insert sale name) timber sale, Tract No. (insert tract number), located in (insert legal

description). In conformance with the United States Department of the Interior/Small Business

Administration 1959 Memorandum of Understanding, as amended, the Small Business

Administration has requested that the BLM set aside this timber for sale for offering to a small

business concern, as defined in 13 Code of Federal Regulations Part 121. To access the lands

where this timber sale is located, the BLM must use the roads and/or right(s)-of-way described in

the Right-of-Way Agreement No(s). listed above. (Insert permittee name) is not a small business

concern. The BLM requests that you, the (insert permittee representative’s name) representative,

waive its right to bid on the subject timber sale. All other conditions and terms of the agreement

would remain in effect. BLM requests that you also grant access to BLM so that it may award a

Small Business Administration set-aside timber sale on the lands described above.

___ (Insert permittee name) agrees to waive its right to bid on the (insert sale name) timber sale. It

also agrees to grant the BLM access to the lands described above.

___ (Insert permittee name) does not agree to grant the access requested.

Signed:_________________________________

Title: __________________________________

Date: __________________________________

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Illustration 11 Formal Rejection of SBA Request for Set-Asides (SBA Form 441, page 2)

2. Statement by Authorized Manager if rejecting:

I have tabulated the advertised timber sale purchase record for the BLM Blue Mountain District for

the past five fiscal years. The results are as follows.

Total Volume Volume Purchased

FY Sold (MMBF) By MMBF Percent

2005 3.2 2.1 66%

2006 0.0

2007 4.0 3.1 78%

2008 2.7 1.4 52%

2009 3.6 2.3 64%

A check with the contiguous U.S. Forest Service (USFS) Ranger Districts over the same period of

time reveals that large business purchased an average of 46 percent of USFS volume offerings and

small business the remaining 54 percent. This ratio was rather consistent throughout the five-year

period (i.e., no downward trend was displayed in small business purchases).

Within this District there are six small business concerns and four large. Of the six small firms, five

compete regularly and successfully for BLM timber. One small firm, Robertson Lbr. Co., has been

unable to compete successfully within the small business community, much less with large

business community, due to antiquated plant and logging facilities. The only Federal timber this

company has been able to purchase has been small quantities of negotiated salvage on the National

Forest. The USFS salvage program has declined in recent years, hence, the reason for Robertson

Lbr. Co. request through SBA for set-aside sales on both BLM and USFS. Mr. Robertson feels that

if a larger proportion of volume was specifically set-aside for small business, he would have the

opportunity to be assured of a continuous supply of reasonable stumpage to support his present

operation.

The record shows, that for other than one operator, the small business community has established a

strong, aggressive timber purchase position for BLM offerings on this District. A demonstrated

"need" to support the small business community does not exist; therefore, the SBA proposal to

set-aside tracts 2010-5, 2010-6 and 2010-8 is rejected. These sales will be offered as originally

planned and scheduled.

District Manager

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Illustration 12 Special Salvage Timber Sale Program and Operating Procedures, April 1, 1985

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Illustration 13 Set-Aside Timber Sale Notice

SBA SET-ASIDE SALE

THIS IS A SMALL BUSINESS SET-ASIDE SALE FOR PREFERENTIAL BIDDING BY

SMALL BUSINESS CONCERNS AS DEFINED BY THE SMALL BUSINESS

ADMINISTRATION.

Roseburg District Tract No. 2

South Valley Resource Area Sale Date: August 25, 2009

Sale Name: Bear Bones Commercial Thinning

Sale No. 09-09 Douglas County, Oregon: O&C: Oral Auction

Bid Deposit Required: $8,600.00

All timber designated for cutting on NE¼, E½NW¼, E½SW¼, SE¼, Section 27, T. 21. S., R.

4. W., Willamette Meridian

Approx. No.

Merch. Trees

Est. Vol.

MBF 32' Log

Est. Vol. C.

Cu. Ft. Species

Est. Vol.

MBF 16' Log

Appraised

Price Per

MBF

(Est. Vol.) Times

Appraised Price)

10,521 2,297 4,889 Douglas-fir 2,862 $27.70 $79,277.40

386 107 221 Grand Fir 132 $23.80 $3,141.60

22 2 5 Western Hemlock 3 $19.30 $57.90

71 7 17 Incense-cedar 9 $243.20 $2,188.80

258 9 25 Ponderosa Pine 12 $29.00 $348.00

11,258 2,422 5,157 3,018 $85,013.70

FOR SBA SET-ASIDE TRACTS, the bidder must not have been determined by the Small

Business Administration to be ineligible for preferential award for set-aside sales and must

accompany the bid deposit with a self-certification statement that the bidder is qualified as a

small business concern as defined by the Small Business Administration in its regulations,

Title 13, Chapter I, Part 121 (Revision 7) as amended, of the Code of Federal Regulations.

The form 5430-1 Self Certification Statement is attached hereto. The successful bidder will be

required to sign SBA form 723 "Small Business Certification Required on All Preferential

Sales of Set-Aside Timber" at the time the timber sale contract is signed. Section 2(a) of form

723 requires that successful bidders on SBA set-aside tracts must comply with delivery

requirements pertaining to timber volume. No more than 30% of the timber volume from a

set-aside sale may be delivered for manufacturing to a business that is not a small

business, as defined by the SBA (13 CFR 121.507 (a)). A copy of SBA form 723 is attached.

CRUISE INFORMATION: 3P (Volume Table Cruise) - The Douglas-fir has been cruised

using the 3P system to select sample trees. Part of the sample trees have been felled, bucked,

and scaled and the remainders have been cruised and their volume computed on form class

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tables for estimating volume in 16-foot lengths. The sample tree volumes were expanded to a

total sale volume.

The volume of all other species has been determined by individual tree measurements using a

100% cruise.

With respect to merchantable trees of all species: the average tree to be harvested is 15.1”

D.B.H.O.B., the average log contains 62 bd. ft., the total gross volume is approximately 3,213

M bd. ft. (MBF) and 94 percent recovery is expected.

CUTTING AREA: An area of approximately 213 acres in 4 cutting area is to be thinned and

2 acres of right-of-way are to be clearcut. This acreage (also shown on Exhibit A) has been

computed with a Trimble Pro XLR™ Global Positioning System receiver. Acreage was

calculated based on Global Positioning System procedures including differential correction.

TIMBER ACREAGE:

Area 1: 65 acres Area 4: 40 acres

Area 2: 94 acres R/W: 2 acres

Area 3: 14 acres

ACCESS: Access to the sale area is provided by Government, County, and privately

controlled roads.

DIRECTIONS TO SALE AREA: To reach the sale area in Section 27, T. 21 S., R. 4 W.,

W.M., go north from Roseburg on Interstate-5 to Exit 163. Exit Interstate-5 and proceed east

on County Road 62 approximately 2 miles to the junction with BLM Road No. 21-4-28.

Proceed east on BLM Road No. 21-4-28 and follow the Exhibit D map to the sale area.

ROAD MAINTENANCE: Maintenance and rockwear fees of $6,789.11 will be required to

be paid to the BLM. Maintenance fees of $593.62 will be required to be paid to Fly Wright

Timber Company.

ROAD CONSTRUCTION: Estimates include the following: construct 28+00 stations of

14-foot subgrade and renovate 27+00 stations of 14-foot subgrade and decommission 53+37

stations.

DURATION OF CONTRACT will be 36 months for cutting and removal of timber.

SPECIAL PROVISIONS: This contract will contain special provisions regarding logging;

environmental protection; road construction, renovation, maintenance and use; fire

protection; slash disposal; log export, and nonsegregated facilities. Administrative check

scaling of logs may be required under the terms of this contract.

In addition, a special provision is included in the contract that enables the Contracting Officer

to suspend or terminate the contract in order to comply with: (1) Federal resource protection

law (including but not limited to the Endangered Species Act, Migratory Bird Treaty Act,

Bald Eagle Treaty Act, and Clean Water Act); (2) a court order; (3) the (district name) District

Record of Decision (ROD)/Resource Management Plan (RMP) as it relates to Federal listed

species; (4) BLM Manual 6840 as it relates to Federal proposed, Federal candidate, Bureau

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sensitive, or State listed species or habitat; or (5) survey and manage, and/or protection buffer

standards and guidelines, established in the Rod and RMP. This contract provision limits the

liability of the Government to the actual Out-of-Pocket Expenses incurred by the Purchaser

that have not been amortized by the removal of timber from the contract area. The types of

actual costs are defined in the contract as “Out-of-Pocket Expenses.” In the event that

operating time is lost as a result of the incorporation of additional contract requirements or

suspension-related delays, an extension of time, with or without reappraisal depending on the

reason for the suspension, will constitute a full and complete remedy for any claim that delays

due to the suspension hindered performance of the contract or resulted in damages of any kind

to the Purchaser. In the event of a suspension that lasts longer than 30 days, the First

Installment may be reduced and/or the unamortized Out-of-Pocket Expenses of road or other

construction may be refunded or transferred to another contract at the election of the

Purchaser. (Include this sentence for salvage sales only: In the event that a Court-ordered

suspension lasting 30 days or more during periods that operations may proceed under the

contract, the Contracting Officer shall unilaterally modify the contract based on reappraisal of

the remaining volume as of the date that the suspension is lifted. This reappraisal will make

adjustments to Exhibit B of the contract without considering any changes to the market price

of timber.)”

Form 1221-2 (June 1969) UNITED STATES Release DEPARTMENT … · 2020. 11. 5. · Form 1221-2 (June...

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Transcript of Form 1221-2 (June 1969) UNITED STATES Release DEPARTMENT … · 2020. 11. 5. · Form 1221-2 (June...