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May 7, 2009
In Reply Refer
5410, 1510 (270) P
Instruction Memorandum No. 2009-120
Expires: 09/30/2010
To:                  AD’s, SD’s, and CD’s
                       Attn:  Contracting Officers
From:              Assistant Director, Renewable Resources and Planning
Subject:          Bureau of Land Management (BLM) Updated Contract Clause for Utilization of Woody Biomass
Program Areas: Forests and Woodlands Management, Fuels Management, and Procurement Contracting
Purposes:  This Instruction Memorandum (IM) updates IM 2007-183 by revising the service contract clause related to the utilization of woody biomass. The Federal Register notice and IM 2007-183 included wording that provided direction to the Bureau of Land Management (BLM), but should not have been included as part of the contract clause. The new clause is hereby modified to delete “If required by law, regulation or Bureau policy, the Government will prepare a timber/vegetative sales notice and/or prospectus, including volume estimates, appraised value and any appropriate special provisions.” The above sentence is instructional to the agencies and in the case of the BLM is a regulatory requirement, but is not a requirement of the contractor.
Policy/Action: The following revised clause will be inserted into Sec. I. of all non-stewardship type service contracts where woody biomass is capable of being offered, unless this woody biomass is reserved for ecological reasons. The contracting officer, working with the responsible official, may decide to include additional stipulations on removal methods, size limitations, or to define reserved areas to protect or conserve natural or cultural resources, and to protect roads, utilities, or improvements.
“Sec. I, Utilization of Woody Biomass
1. The Contractor may remove and utilize woody biomass if:
(a) Project work is progressing as scheduled, and
(b) Removal is completed before contract termination. 
2. To execute this option, the Contractor must submit a written request to the
3. Following receipt of the written request, the Government and the contractor will
     negotiate and execute a separate forest product sales contract under 43 CFR 5400
     for the removal and utilization of the woody biomass. Payment under the forest     
     product sales contract must be at a price equal to or greater than the appraised value of
     the woody biomass. The Contractor must make any appropriate payment specified in
     the forest product sales contract before removal may be authorized.
4. The Contractor must treat any woody biomass not removed in accordance with the
     specifications in the service contract.
5. Any contracts executed are severable; default or termination under either contract does
     not remove the contractor from payment or performance obligations under the other
6. Definitions:
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 material (43 CFR 5400).
Woody biomass means the woody plants and portions of 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 treatment.”
Attachment One provides an example of a table listing forest products available for sale and removal under this revised clause.
To prevent waste of Government resources, the volume and value of vegetative material or timber available for offer within service contracts will be measured and appraised by qualified personnel.  Negotiated sales of timber greater than 250 thousand board feet are restricted under 43 CFR § 5402.0–6.
The quantity of woody biomass offered, not measurable in board feet, to this revised clause is to be reported in the BLM’s MIS system under Program Element HE – Biomass Utilization. The unit of measure to be used is green tons of biomass offered, and is reported in the MIS once for each project. All forest products sold pursuant to this clause are also to be reported in the BLM’s Timber Sale Information System system.
Timeframe: Ongoing                                         
Budget Impact:  Implementing the changes and contract clause has minimal budget implications.
Background: A Department of the Interior memorandum was issued September 9, 2004, requiring each Bureau to develop contract mechanisms to implement the option for biomass removal in all service contracts. The BLM issued IM 2005-160 with definitions and a contract clause.
In June 2005, the final rule in the Federal Register revised the authority of 48 CFR Part 1452 by adding 1452.237-71, a new contract clause for removal and utilization of woody biomass. The Office of the Secretary, per guidance in the Final Rule, directed Bureaus to insert the new clause in all service contracts, unless woody biomass is reserved for ecological reasons. See 70 FR 29208-29211, May 20, 2005, 48 CFR 1437 and 1452 for the Final Rule and contract clause. The BLM issued IM2007 183 which updated the contract clause for utilization of woody biomass by incorporating the Final Rule.
Coordination: This IM was coordinated with the Division of Forests and Woodlands Management (WO-270), the Division of Fire Planning and Fuels Management (FA-600) and the Division of Business Resources (WO-850).
Contact: Additional information is available by contacting Glenn Lahti, Acting BLM Biomass Coordinator at 202-452-7754 or Nancy Adrain, Bureau Procurement Chief at 202-452-5175.
Signed by:                                                                   Authenticated by:
Robert Ratcliff                                                              Robert M. Williams
Acting, Assistant Director                                            Division of IRM Governance,WO-570
Renewable Resources and Planning
1 Attachment

Last updated: 10-20-2009