Montana/Dakotas

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United States Department of the Interior
 
BUREAU OF LAND MANAGEMENT
Montana State Office
5001 Southgate Drive
Billings, Montana 59101-4669
http://www.blm.gov/mt 
 
September 11, 2009
 
5400/4000/9210/1510 (MT9230) P
 
 
 
EMAIL TRANSMISSION – 09/11/09
Instruction Memorandum No. MT-2009-
Expires: 9/30/2010
 
To:             Field Managers
 
From:         State Director
 
Subject:     Woody Biomass Utilization Contract Clause
 
Program Area: Procurement, Forest Management, Fuels Management, and Rangeland Management.
 
Purpose: The purpose of this Instruction Memorandum is to provide clarification and additional guidance to Washington Office Instruction Memorandum No. WO-2009-120. This clarification is specifically for integrating a woody biomass utilization contract clause into timber sale, stewardship, hazardous fuel reduction or other contracts where utilization of woody biomass might occur.
 
Policy/Action: This Instruction Memorandum replaces Instruction Memorandum No. MT-2008-022. All timber sale and stewardship contracts will contain one of the following woody biomass utilization options:
 
Option 1:
 
An estimated quantity and minimum acceptable value of woody biomass is identified and included as a line item in the contract. An example of this line item is shown below. It is normally found in Exhibit B or Section B of the contract
 
LINE ITEM 0001- Forest PRODUCTS
 
Line Item #
Product
Species (Specify)
Estimate of Quantity by Unit of Measure
Minimum Acceptable Offer
Offer/Unit of Measure
Contractor’s Offer
Green
Tons
Cords
MBF
0001
Biomass
All
1,000
---
---
$100.00
Lump Sum
 
 

Option 2:
 
If Option 1 was not exercised in the contract, then the following utilization of woody biomass clause will be inserted into the appropriate section of the service contract or in Section 41, Special Provisions, of the timber sale contract.
 
Contract clause:
 
Utilization of Woody Biomass Option
 
1)         In order to execute this option, the Contractor must submit a written request within the time frame that their existing contract is in effect to the Contracting Officer addressing the following:
 
·         How will the woody biomass be removed
·         What date will removal of the woody biomass be completed
·         What is the intended use of the woody biomass, i.e. heat, energy, or manufactured product
·         What is the estimated quantity of woody biomass to be removed
·         What is the Contractor’s Per Unit Price and Total Price offered for the quantity of woody biomass to be removed
 
2)         Upon receipt of the written request, the Contracting Officer will determine the benefits of the sale and removal of the woody biomass. If the request is accepted then the Contracting Officer and the Contractor will either:
 
·         Negotiate a modification to the existing contract or
·         Enter into a separate Forest Product Sales contract under 43 CFR 5400
 
3)         The Contractor is required to treat any woody biomass not removed under the contract modification or separate Forest Product Sales contract in accordance with the specifications of the prime contract.
 
4)         Any Forest Product contracts executed in addition to the prime contract are severable; default or termination/cancellation of the Forest Product contract or the prime contract does not remove the Contractor from payment or performance obligations under the remaining active contract or contracts.
 
5)         Definitions pertaining to Utilization of Woody Biomass:
 
·         Contracting Officer means the Bureau of Land Management official who has the authority to execute the contract and delegate authority to take action in connection with the contract.
·         Authorized Officer means the Bureau of Land Management official who has been delegated authority to take action in connection with the Forest Product contract.
·         Forest Product Sales contract means the agency-specific authorized contract instrument for the sale, barter, exchange, billing or other compensation for the payment, removal, and/or transportation of woody biomass product. (43 CFR 5400)
·         Woody Biomass means the portions of woody plants or trees, including limbs, tops, needles, leaves, and other woody parts, grown in a forest, woodland, or rangeland environment, that are the by-products of management, restoration and/or hazardous fuel reduction treatments.
·         Prime contract means the original contract in effect between the Government and the Contractor for services and/or product removal.
 
Upon receipt of the written request, the Government will determine an estimated quantity, an appraised price, and the benefits of the removal of the biomass. Removal of the woody biomass by the Contractor must be complete prior to expiration of the prime contract. Work on the prime contract must be progressing as scheduled with a reasonable expectation that the prime contract will be completed by its expiration date.
 
If the request is accepted by the Government, one of the following will occur:
 
1)            For service contracts that do not have a bid item to address the product, the Contracting Officer and the Contractor will negotiate and execute a separate Forest Product Sales contract in accordance with 43 CFR 5400.
2)            For stewardship contracts that do not have a bid item to address the product, the Contracting Officer and Contractor will negotiate a modification to add a line item in the contract for the utilization of the woody biomass in accordance with Public Law 108-7.
3)            For timber sale contracts that do not have a bid item to address the product, the Authorized Officer and the Purchaser will negotiate a modification to Exhibit B for the utilization of the woody biomass in accordance with 43 CFR 5400.
 
Timeframe: Effective upon issuance.
 
Budget Impact: In the long run, implementing this strategy is expected to offset or reduce the cost of forest and rangeland health and hazardous fuel reduction treatments.
 
Background: The BLM established a Biomass Policy in FY 2004. The 2005 Energy Policy Act has a section devoted to renewable energy sources (Section 210). The BLM Biomass Policy continues to develop, and changes are updated through a series of Instruction Memorandums. The Bureau and Department are working with other Departments through the Woody Biomass Utilization Group (WBUG) to develop biomass plans at the National level. For a synopsis of Biomass and the Bureau IMs please see http://web.blm.gov/nstc/ForestMang/biomass.html.
 
Manual/Handbook Sections Affected: None
 
Coordination: This IM was coordinated between Forestry, Procurement, Range, and Fire programs in the Montana State Office.
 
Contact: If you have any questions, please contact Bill Hensley, Forester, at 406-896-5042, or Mary Clark, Administrative Officer, Business & Fiscal Services, at 406-896-5205.
 
Signed by:                                                                   Authenticated by:
Gene R. Terland                                                          Janie Fox
State Director                                                              Staff Assistant (MT9200)