BPW Advisory 2005-2 Forest Products Sales Policy

​​Purpose: To set forth procedures for the Department of Natural Resources to follow in selling or otherwise disposing of forest products derived from State forests and other State properties administered and managed by DNR.
 
Authority: Any real or personal property of the State may be sold or disposed of for a consideration the Board of Public Words decides is adequate. Section 10-305, State Finance and Procurement Article, Annotated Code of Maryland.
 
Background: This Forest Products Sales Policy was first approved as the Timber Sales Policy in 1976; since then, the Board has revised the policies and procedures five times, most recently in 1987.This Advisory supersedes the 1987 “Timber Sales Policy,” and renames the Policy the “Forest Products Sales Policy.”
 
Policy:
  1. Forest Products Sales: DNR will conduct and supervise sales of forest products from State forests and other State properties administered and managed by DNR in accordance with this Forest Product Sales Policy and appropriate forest management practices.
  2. Two Sales Methods: Except in the case of State forests and other DNR-managed State properties acquired in whole or in part with proceeds of outstanding State general-obligation bonds, DNR may conduct forest product sales using either of the following methods:
    1. One-step Method - DNR may, by competitive bid, sell forest products to a person who, after award, will enter the DNR property, harvest the forest products, and remove the products.
    2. Two-step Method - DNR may procure forest-harvesting services from licensed forest-products operators possessing Maryland Master Logger status. DNR may, by competitive bid, then sell the harvested products. (The Department of General Services, as the control agency for maintenance contracts within Board of Public Works jurisdiction, may sub-delegate approval authority of the forest-harvesting contracts to DNR.)
  3. Bond-Financed Property: In the case of State forests and other DNR-managed State properties acquired in whole or in part with proceeds of outstanding State general obligation bonds, DNR is required to use the two-step method. DNR shall deposit proceeds from such sales in the Forest or Park Reserve Fund established under Section 5-212 of the Natural Resources Article, Annotated Code of Maryland.
  4. Sales of $50,000 or Less: The Board of Public Works delegates to DNR the authority to approve individual forest product sales that are reasonably anticipated to generate revenue of $50,000 or less and that are conducted as follows:
    1. DNR shall conduct sales reasonably anticipated to generate revenue between $5,000 and $50,000 by soliciting in writing competitive bids, to be submitted in writing - sealed or unsealed - as directed in the solicitation. DNR shall award these contracts on a lump sum or cost-per-weight basis.
    2. DNR shall conduct sales reasonably anticipated to generate revenue of $5,000 or less by soliciting orally or in writing bids from at least one bidder. For standing firewood timber sales with an estimated value of $5,000 or less, DNR may determine before accepting bids that payment will be in the form of processed and delivered firewood instead of cash. The high bidder is the bidder offering the greatest volume of firewood processed and delivered according to DNR specifications.
    3. Before awarding any contract in excess of $50, DNR must obtain approval from its Office of the Attorney General and its procurement officer.
  5. Sales in Excess of $50,000: DNR shall conduct sales reasonably anticipated to generate revenue in excess of $50,000 by soliciting in writing competitive sealed bids. DNR must obtain Board of Public Works approval for all forest product sales with anticipated revenue greater than $50,000. DNR shall award these contracts on a lump sum or cost-per-weight basis.
  6. Rejecting All Bids:  After opening of bids but before contract award, DNR may reject all bids in whole or in part if DNR determines that this action is fiscally advantageous or otherwise in the State’s best interest. 
  7. Maryland Master Logger: Effective January 1, 2006, forest product contractors (excluding contractors on firewood sales) must utilize only those licensed forest products operators possessing Maryland Master Logger status. 
Questions may be addressed to:
Maryland Department of Natural Resources
Tawes State Office Building, 580 Taylor Avenue
Annapolis, Maryland  21401
Fax: 410.260.8595
Toll Free: 877.620.8367
Don VanHassent, Director/State Forester
Kenneth W. Jolly, Associate Director