INSTRUCTIONS TO BIDDERS
1. AUTHORITY – Timber and/or Other Wood Products or Vegetative Resources,
located on the revested Oregon and California Railroad Grant Lands and on the
reconveyed Coos Bay Wagon Road Grant Lands is administered and sold pursuant
to authority of the Act of August 28, 1937 (50 Stat. 874; 43 U.S.C. 1181a); Timber
and/or Other Wood Products or Vegetative Resources located on other public lands
of the United States under jurisdiction of the Bureau of Land Management are
administered and sold pursuant to authority of the Act of July 31, 1947 (61 Stat.
681), as amended, by the Act of July 23, 1955 (69 Stat. 367; 30 U.S.C. 601 et. seq.).
Regulations of the Secretary of the Interior governing sale of Timber and/or Other
Wood Products or Vegetative Resources, are codied in 43 CFR Group 5400.
2. QUALIFICATIONS OF BIDDERS – A bidder for sale of Timber and/or Other
Wood Products or Vegetative Resources must be either (a) a citizen of the United
States, (b) a partnership composed wholly of such citizens, (c) an unincorporated
association composed wholly of such citizens, or (d) a corporation authorized to
transact business in the State in which the Timber and/or Other Wood Products or
Vegetative Resources are located.
3. INSPECTION OF TIMBER AND/OR OTHER WOOD PRODUCTS OR
VEGETATIVE RESOURCES – Bidder is invited, urged, and cautioned to inspect the
Timber and/or Other Wood Products or Vegetative Resources prior to submitting
a bid. By executing the Timber and/or Other Wood Products or Vegetative
Resources sale contract, bidder warrants that the contract is accepted on the basis
of his examination and inspection of the Timber and/or Other Wood Products or
Vegetative Resources and his opinion of its value.
4. DISCLAIMER OF WARRANTY – Government expressly disclaims any
warranty of the tness of the designated Timber and/or Other Wood Products or
Vegetative Resources for any purpose of the bidder; all Timber and/or Other Wood
Products or Vegetative Resources are to be sold “As Is” without any warranty of
merchantability by Government. Any warranty as to the quantity or quality of
Timber and/or Other Wood Products or Vegetative Resources to be sold is expressly
disclaimed by Government.
5. BIDS – Sealed or written bids for not less than the advertised appraised
price, per Timber and/or Other Wood Products or Vegetative Resources must be
submitted in duplicate to the District Manager who issued Timber and/or Other
Wood Products or Vegetative Resources Sale Notice.
(a) Sealed Bid Sales – Bids will be received until time for opening which
is set out in the Notice. Enclose both copies of bid with required bid deposit
in a sealed envelope marked on the outside Bid for Timber and/or Other Wood
Products or Vegetative Resources, time bid is to be opened, tract number, and
legal description of land on which Timber and/or Other Wood Products or
Vegetative Resources are located. In event of a tie, the high bidder shall be
determined by lot from among those who submitted the tie bids.
(b) Auction Sales – Submission of the required bid deposit and a written
bid is required to qualify for oral bidding. Oral bidding shall begin from the
highest written bid. No oral bid will be considered which is not higher than
the preceding bid. In the event there is a tie in high written bids, and no oral
bidding occurs, the bidder who was the rst to submit his bid deposit and
written bid shall be declared the high bidder. If the ofcer conducting the sale
cannot determine who made the rst submission of high tie written bids, the
high bidder shall be determined by lot. High bidder must conrm his bid, in
writing, immediately upon being declared high bidder.
(c) Except as otherwise provided in 43 CFR 5442.2, bids will not be
considered in resale of Timber and/or Other Wood Products or Vegetative
Resources remaining from an uncompleted contract from any person or
afliate of such person who failed to complete the original contract because of
(1) cancellation for the purchaser’s breach or (2) through failure to complete
payment by expiration date.
(d) When it is in the interest of the Government to do so, it may reject any
and all bids and may waive minor deciencies in bids or in sale advertisement.
6. BID FORMS – All sealed, written bids, and conrmation of oral bids shall be
submitted on forms provided by Government.
(a) Timber and/or Other Wood Products or Vegetative Resources
Sales – For each product and species, bids shall specify (1) Bureau of Land
Management estimated unit volume or quantity, (2) bidder’s price per unit
and total value, and (3) bidder’s total purchase price. Estimated volume and
price per unit are to be used for administrative and appraisal purposes only.
Upon award of contract, the high bidder agrees to pay the Government for the
Timber and/or Other Wood Products or Vegetative Resources designated for
removal in accordance with the terms of the contract. Timber and/or Other
Wood Products or Vegetative designated for taking may be less or more than
total estimated volume or quantity shown above.
7. BID DEPOSIT – All bidders must make a deposit of not less than the amount
specied in the Timber and/or Other Wood Products or Vegetative Resources
Notice. Deposit may be in the form of cash, money orders, bank drafts, cashiers
or certied checks made payable to the Department of the Interior – BLM, bid
bonds of a corporate surety shown on the approved list of the United States
Treasury Department (Applies To Timber Only), or any approved guaranteed
remittance approved by the Contracting Ofcer. Upon conclusion of bidding, the
bid deposit of all bidders, except high bidder, will be returned. The cash deposit
of the successful bidder may be applied toward the required sale deposit and/or
the purchase price. Cash not applied to the sale deposit or the purchase price, or
a corporate surety bid bond, will be returned at the time the contract is signed by
the Government.
8. AWARD OF CONTRACT – Government may require high bidder to furnish
such information as is necessary to determine the ability of bidder to perform
the obligation of contract. Contract will be awarded to high bidder, unless he
is not qualied or responsible or unless all bids are rejected. If high bidder is
not qualied or responsible or fails to sign and return the contract together with
required performance bond and any required payment, contract may be offered
and awarded to the highest bidders qualied, responsible, and willing to accept
the contract.
9. TIMBER AND/OR OTHER WOOD PRODUCTS OR VEGETATIVE
RESOURCES SALE CONTRACTS – To be executed by purchaser, has been
prepared by Government, and may be examined in the District or Field Manager’s
ofce.
10. PERFORMANCE BOND – (Primarily Used For Timber Sales)
(a) A performance bond in an amount of not less than 20 percent of
total purchase price is required, but the amount of the bond shall not be in
excess of $500,000, except when the purchaser opts to increase the minimum
bond to permit cutting prior to payment as provided in 43 CFR 5451.2, or
in the event the purchaser is a holder of an unresolved default the bond may
be increased as provided in 43 CFR 5450.1(b). Performance bond may be
(1) bond of a corporate surety shown on approval list issued by the United
States Treasury Department and executed on an approved standard form, (2)
personal surety bond executed on an approved standard form if Government
determines principals and bondsman are capable of carrying out the terms of
the contract, (3) cash bonds, (4) negotiable securities of the United States, or
(5) any guaranteed remittance approved by the Contracting Ofcer.
(b) If purchaser elects to cut Timber and/or Other Wood Products or
Vegetative Resources without skidding or yarding it to a loading point or
removing it prior to the payment of the second or subsequent installments,
Government shall require an increase in amount of performance bond
initially required by an amount equal to the value of Timber and/or Other
Wood Products or Vegetative Resources to be cut. Such increase must be
on a bond rider form supplied by Government and be approved, in writing,
by Government prior to cutting Timber and/or Other Wood Products or
Vegetative Resources covered by the bond increase. This increased amount of
bond shall be used to assure payment for Timber and/or Other Wood Products
or Vegetative Resources cut in advance of payment.
11. PAYMENT BOND–– (Primarily Used For Timber Sales)
If purchaser elects to (a) cut and remove Timber and/or Other Wood Products
or Vegetative Resources, or (b) remove Timber and/or Other Wood Products
or Vegetative Resources already cut which has been secured by an increased
performance bond as provided in paragraph 10(b) above, before payment of the
second or subsequent installments, Government shall require a payment bond on
a form supplied by Government. Purchaser shall obtain written approval from
Government of payment bond prior to cutting and/or removal of Timber and/or
Other Wood Products or Vegetative Resources covered by the bond. Payment
bond shall be used to assure payment for Timber and/or Other Wood Products or
Vegetative Resources cut and/or removed in advance of payment.
12. PAYMENT OF PURCHASE PRICE – For sales of $500 or more, Government
may allow payment by installments. Except as discussed in paragraphs 10 and 11
above, no part of any Timber and/or Other Wood Products or Vegetative Resources
sold may be severed, cut, or removed unless advance payment has been made as
provided in contract.
13. LIQUIDATED DAMAGES – Within thirty (30) days from receipt of Timber
and/or Other Wood Products or Vegetative Resources Sale Contract, the successful
bidder shall sign contract and return it to Government, together with required
bond and any required payment. If successful bidder fails to comply within the
stipulated time, his bid deposit shall be retained by Government as liquidated
damages.
14. NINETY-DAY SALES – If no bid is received within time specied in the
advertisement of sale and if Government determines that there has been no
signicant rise in the market value of Timber and/or Other Wood Products or
Vegetative Resources, it may, in its discretion, keep the sale open, not to exceed
ninety (90) days.
(Continued on Page 4)
(Form 5440-9, Page 3)
