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16 U.S.C. 472a:  Sale of timber at appraised value

Comptroller General - Key Excerpts

The protesters contend that considering the costs of processing the timber at large business mills in conducting each appraisal “inflated” the appraised value because this analysis does not take into account that the small business processing mills are located farther away from the sale location than the large business mills, and therefore small businesses would have higher hauling costs than were accounted for in the appraisal. The protesters argue that because the timber sales were set aside for small businesses, and small businesses are prohibited from reselling more than 30 percent of the timber to large businesses, the Forest Service’s use of the estimated costs based on the use of large business mills for more than 30 percent of the timber volume in developing the appraisal was improper. The protesters argue that the agency’s use of large business data for all of the timber volume constitutes a violation of the Small Business Act, the NFMA, implementing regulations, and Forest Service policies.

New As to the NFMA, that Act authorizes the Forest Service, under rules and regulations prescribed by the Secretary of Agriculture, to sell “at not less than appraised value, trees, portions of trees, or forest products located on National Forest System lands.” 16 U.S.C. sect. 472a(a); 36 C.F.R sect. 223.60. This requirement for an appraisal is to ensure that the public receives fair value from the sale of timber. American Forest Prods. Co., AGBCA No. 79-170-1, Oct. 18, 1984, 85-1 BCA para. 17,720 at 88,459. Contrary to the protesters’ arguments, neither the NFMA, implementing regulations, nor Forest Service policies require that appraisals take into account that a particular acquisition is set aside for small businesses.[5] Thus, the Forest Service was not required by the NFMA or its implementing regulations to create a separate or different appraisal method for small business set-aside timber sales in order to encourage small business sales.  (Poston Logging; Shasta Green, Inc; Sierra Cedar Products; Trinity River Lumber Company; Freres Lumber Co., Inc., B-310081; B-310275; B-310290; B-310370; B-310370.2; B-310371; B-310373; B-310467; B-310470,  November 13, 2007.)  (pdf)

Comptroller General - Listing of Decisions

For the Government For the Protester
Poston Logging; Shasta Green, Inc; Sierra Cedar Products; Trinity River Lumber Company; Freres Lumber Co., Inc., B-310081; B-310275; B-310290; B-310370; B-310370.2; B-310371; B-310373; B-310467; B-310470,  November 13, 2007. (pdf)  
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