Form 5440-9 - Deposit And Bid For Timber Or Vegetative Resource (Page 3 of 4) in pdf

INSTRUCTIONS TO BIDDERS

1. AUTHORITY

Timber located on the revested Oregon and California Rail-

road 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. 1 1 &la); h k r located on other lands

and

other vegetative resources

on all 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 3 1,

1947 (61

S t a t .

681),

amcndcd,

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

are codified in 43 CFR Group

5400.

2. QUALlFlCA TlONS OF BIDDERS

bidder for sale of tirnberlvegetative

resources must be either (a) a citizen of the United

States,

(b) a partnership com-

posed 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 timberlvegetative resource is located.

3 .

INSPECTION O F TIMBER/VEG ETA TI VE RESOURCES

Bidder is in-

vited, urged, and cautioned to inspect the timberlvegetative resource prior to sub-

mitting

bid. By executing the timbertvegetative resource sale contract, bidder

warrants that the contract is accepted on

the

basis of his examination and inspection

of the timberlvegetative resource and his opinion of its value.

4. DISCLAIMER OF WARRANTY

Government expressly disclaims any war-

ranty of

the

fitness of

the

designated timbertvegetative resource for any purpose of

the bidder; all timberfvegetative resources are to be sold "As Is" without any war-

ranty of merchantability by Government. Any warranty

as to the quantity or quality

of timberlvegetative resource to be sold is expressly disclaimed by Government.

5. BIDS

Sealed

or written bids for not less than the advertised appraised price,

per timbertvegetative resource must be submitted in duplicak to the District Manager

who issued

7Tmber/Vegetative Resource Sale Notice.

(a) Sealed Bid Sales

Bids will

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 TimberNegetative Resource,

time bid is

to be opened, tract number, and legal description of land on which timbertvegeta-

tive

resource

is located. In event of a tie, the high bidder shall be determined by

lot from among those who submitted the tie bids.

(tt)

Auction Sales

Submission of the required bid desposit and a written bid

is rcqulrsd to

qualii

for oral b i d d i n g .

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

first to submit his bid deposit and written bid shall be declared the high

bidder. If the officer conducting the sale cannot determine who made the first sub-

mission of high tie written bids, the high bidder shall be determined by lot. High

bidder must confirm his bid, in writing, immediately upon being declared high bidder.

CFR

5442.2, bids will not be considered

in resale of timber/vegetative resource remaining from an uncompleted contract from

any person or affiliate of such person who failed to complete the original contract

because of (1) cancellation for the purchaser's breach or (2) through failure to com-

plete payment by expiration date.

(d) When it is in the interest of the Government to do

so,

may

reject any and

all bids and may waive minor deficiencies in bids or in sale advertisement.

6. BID FORMS

All sealed, written bids, and confirmation of oral bids shall

submitted on forms provided by Government.

(a)

Lump

Sum

Sales

Bids shall specify (1) Bureau of Land Management es-

timated volumc,

(2) price per unit,

and

(3) total purchase price. Estimated volume

and price per unit

to k uscd for administrative and Pppraisal purposes only. Upon

award

of contract, high bidder shall be liable for total purchase price, including any

adjustment which

may

be made

a result of reappraisal if

extension of t i m e is

granted, even thaugh quantity of timbcr/vcgetative resource acbually cut, removed,

or designated for taking is more or less than the estimated volume or quantity listed.

Timber Scale Sales

Bids must state price per thousand

board

feet that

will be paid for each species. High bidder will be

determined by rmdtiplying bid

price per

thausand board

feet per species by Bureau of Land Management estimate

of volumc of each species. Purchaser shall be liable for purchase price of

mer-

chantable

timber

sold under

contract

even though

all such

timber

not

actually

cut

and

r~moved prior to expiration of time for cutting and removal as specified in

cmmact.

*RppZies

t o Timber

Ody

7 . BID DEPOSIT

All

bidders must make a deposit of not less

than the

amount

specified in the

7iderlVegetafive Resource Notice.

Deposit may be in the form

of cash, money orders,

banlr

drafts, cashiers or certified checks made payable to

the Dcparbnent of the Interior-BLM, bid bonds of a corporate surety shown on

the approved list of the United

States

T r e a s u r y

- * ,

or any approved guaran-

teed remittance approved by the Authorized Officer. Upon conclusion of bidding,

the bid deposit of all bidders, except high bidder, will be returned.

The

cash deposit

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 cor-

porate surety bid bond, will be returned at

the

time

the

contract is signed by the

Government.

D OF CON TRACT

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 quali-

fied or responsible or

unless

all bids

are

rejected. If

high

bidder is not qualified or

responsible or fails to sign and return the contract together with required perfor-

mance bond and any required payment, contract may be offered and awarded to the

highest bidders qualified, responsible, and willing to accept the contract.

9. TIMBERNEGETATIVE RESOURCESALE CONTRACT

Tobeexecuted

by purchaser, has been prepared by Government, and may be examined in the Dis-

trict Manager's office.

10. PERFORMANCE BOND

(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 pri-

or to payment as provided in 43 CFR 545 1.2, or in the event the purchaser is a holder

of an unresolved default the bond may

tte

increased as provided

43 CFR 5450.1(b).

Performance bond may

(1) bond of a corporate s u m shown on approval list

issued by the United States Treasury Department and executed on an approved stan-

dard form,

(2) personal surety bond executed on

approved

standard

form if Govern-

ment determines principals and bondsman

are

capable of canying out the terms of

the contract, (3) cash bonds, (4) negotiable securities of

the

United States, or (5)

Any guaranteed remittance approved by the Authorized Officer.

(b)

If purchaser elects

to cut timber without skidding or yarding it to a loading point

or removing it prior to the payment of the second or subsequent installments, Govern-

ment shall require an increase in amount of performance bond initially required by

an amount equal to the value of timber 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 covered by the bond increase. This increased amount of bond

shall

used to assure payment for timber cut in advance of payment.*

11. PAYMENT BOND

If purchaser elects to (a) cut and remove timber, or

(b) remove timber already cut which has been secured by an

increased

performance

bond as provided in paragraph lo@) above, before payment of the second or subse-

quent installments, Government shall require a payment

bond

on a form supplied

by Government. firchaser shall obtain written approval from Government of pay-

ment bond prior to cutting and/or removal of timber covered by the bond. Payment

bond shall be used to assure payment for timber cut andlor removed in advance of

payment.*

12. PA YMEN T OF PURCHASE PRICE

For sales of $500 or more, Govern-

ment may allow payment by installments. Except as discussed in paragraphs 10 and

11 above, no part of any timbertvegetative resource sold may be severed, cut, or

removed unless advance payment has been made as provided in contract.

13.

LlQUlDA TED DAMAGES

Within thirty (30) days from receipt of

Timber/

Vegetative Resource 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

liquidated

damages.

14. NINETY-DA Y SALES

If no bid is received within time specified in the

advertisement of sale and if Government determines

that

there has been no signifi-

cant rise in

the market

value

timberlvegetative resource, it may, in its discretion,

keep

the sale open, not to ex&

Rinety

(90) days.

15. UNAUTHORIZED USE OF GOVERNMENT PROPERTY

sale

may

refused

to high bidder who has

been

notified that hc

has failed

make satisfacto-

ry arrangements for payment of damages resulting from unauthorized use of, or in-

jury to, property of

the

United

States.

Form 5440-9 - Deposit And Bid For Timber Or Vegetative Resource Page 3

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