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United States Department of the Interior
Montana State Office
5001 Southgate Drive
Billings, Montana 59101-4669

 December 14, 2007

In Reply To:
5400/9210/1510 (923) P
Instruction Memorandum No. MT-2008-022
Expires: 9/30/09
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 to Washington Office Instruction Memorandum No. WO-2007-183 for integrating biomass into timber sale, stewardship, and hazardous fuels reduction contracts.
Policy/Action: All timber sale and stewardship contracts and hazardous fuels reduction task orders will contain one of the following biomass utilization options:
Option 1:
Sale of an estimated quantity of biomass in the contract/agreement and is identified as a line item. An example of this line item is described below. It is normally found in Exhibit B or Section B of the contract:
Offerors are further advised that offering a unit price less than the Minimum Acceptable Offer for Total Product, Line Item 0001, may have an adverse effect on the evaluation of their proposal regarding best value. Prices offered and accepted by the Government under line item 0001 for the product will become due and payable to the Government in accordance with the terms specified in this request for quote.
Line Item #
Species (Specify)
Estimate of Quantity by Unit of Measure
Minimum Acceptable Offer
Offer/Unit of Measure
Contractor’s Offer
Lump Sum
Option 2:
If Option 1 is not exercised, then the following utilization of woody biomass clause shall be inserted in Section I of the contract or in Section 41, Special Provisions, of the timber sale contract.
         Utilization of Woody Biomass:
The contractor may remove and utilize woody biomass as long as the contract is completed within the performance period negotiated between the government and the contractor.
The contractor shall submit a written request to the Contracting or Authorized Officer addressing the following:
1)      How the biomass will be removed
2)      When will the biomass be removed
3)      What is the intended use of the biomass, i.e. energy or manufactured product
4)      What is the estimated quantity of biomass to be removed
5)      What is the unit price and total price offered for the amount of biomass removed
Upon receipt of the written request, the Government will determine the benefits of the removal of the biomass. If the request is accepted one of the following will occur:
1)      For service contracts, i.e., hazardous fuels reduction task order that do not have a bid item to address the product, the Government and the contractor will negotiate and execute a separate vegetative sales contract in accordance with 43 CFR 5000.
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 for the utilization of the woody biomass in accordance with 43 CFR 5000.
Definition: Woody biomass means the trees and woody plants, 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 treatment.
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 and Procurement in the Montana State Office.
Contact: If you have any questions, please contact Bill Hensley, Forester, at 406-896-5042, or Mary Clark, Supervisory Procurement Analyst, at 406-896-5202.
Signed by: Howard A. Lemm, Acting State Director
Authenticated by:   Janie Fox (MT920)
Assistant Field Manager, Glasgow – 1
Assistant Field Manager, Havre -1
SOMT - 1

Last updated: 06-28-2012