Free Motion to Amend/Correct - District Court of Federal Claims - federal

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FLNAL DEFAULTDAMAGE CALCULATIONS BRANNTIMBER SALE CONTRACT 02-006577 NO. USDAFOREST SERVICE KA1BABNATIONALFOREST

The Brann TimberSale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the Regional Forester and in accordancewith Forest Service policy whena thnber sale contract is terminated before completion, the Contracting Officer must determine if the United States has been damaged (FSM 2453.5). Damages the United States for Purchaser's failure to cut and remove due included timber are outlined in contract provision CT9.4-- Failure to Cut. TheBranntimber sale consisted of three (3) separate payment units whenoriginally sold. Onlypayment unit was ever operated, with essentially all of the sawtimberremoved a portion of the pulpwood. remaining mad The volumeof included timber on the Branntimber sale, at the time of termination, was783.81 CCF ofsawtimber and 1395.87CCF ofroundwood. current contract value of the sale at termination was $68,223.02. Thesale The wassold as a Flat Rate. All purchasercredit on the sale wasearnedand either used or transferred to another sale. Anappraisal of the remaining timber at the time of termination, using the standard Forest Service method in use at that time and conditionsof the original contract, resulted in an appraisedvalue of $23,914.08. Based on procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the Branntimber sale contract. The Brarmtimber due sale wasnot re-offered for sale followingthe default. Therefore, no miscellaneouscosts for sale preparation or interest charges(subparagraphs and (d)) are includedin the final calculation. (a) REMAINING TIMBER At the time of default the contract value of the timber at termination was: Unreleased PaymentUnits (# 1 & #3) ~pecies PP-Sawtimber PP Roundwood Volume 776 CCF 823 CCF Rates @Termination $70.30/CCF $ 9.40/CCF SValue $ 54,552.80 $ 7,736.20

Released(Cut-Over)Payment Units (#2) S~ecies PP-Sawtimber PP-Round~vood Volume 7.81 CCF 572.87 CCF Rates ~, Termination $70.30/CCF $ 9.40/CCF $Value $ 549.04 $ 5,384.98 $68 223.02

REMAININGCONTRACT VALUE @ TERMINATION(CCV)

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MISCELLANEOUS COSTS: (MISC$) (a) Costof Resale Therewasno re-offer or resaIe of the Brann timbersale. Therefore, there are no associatedcosts of resale attributable to the damage calculations. None (b) IncreasedPurchaser Credit None (c) Costsfor Failure to CutIndividualTreeson Cut-Over Area: None (d) Interest on Remaining Contract Valuedueto delay in receipt of stumpage payments: Per CT9.4-Failureto Cut (4/82) "interest will be chargedfor the total number months,or portions thereof of from TerminationDate until mid-point of the contract resale period, less any time in excess of one year neededto makethe resale." Since there wasno resale of the Bram~ timber sale there is no mid-point period to calculate interest to and therefore, there are no associated chargesfor interest on delayedreceipt of stumpage payments. None (e) Increased RegenerationCosts: None CALCULATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook 0~SH)2409.22, Section 62.3, an appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volume the and original appraisal conditions. The only value whichhas been updatedis the Quality Adjustment value for the included timber becauseof significant changesin the formulassince the original sale wassold. Appraisal Bulletin Number CY tst Quarter (January) wasused to determine the reappraised value of the sale. 01, 01, Theresults are as follows: .~pecies PP-Sawtimber PP-Roundwood Volume 783.81 CCF 1,395.87 CCF Predicted Bid Rate (Line 28) $29.21/CCF $ 0.73/CCF Total Value $ 22,895.09 $ 1,018.99 $ 23~914.08

TOTAL APPRAISED VALUE @ TERMINATION (AppV)

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A)

Calculation of Final Damages: Volume and Contract Value, remaining timber: Sawtimber a. On area not cut over Pulpwood b. On area cut over Sa~edmber Pulpwood

VOLUME

VALUE

776 823 7.81 572.87

$ 54.552.80 $ 7,736.20 $ 549.04 $ 5.384.98

TOTAL REMAINING TIMBER

Sawtimber 783.81 Pulpwood 1395.87 TOTAL

$ 55.101.84 $ 13.121.18 $ 68~223.02 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 68~223.02

2. 3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of CompletingContractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package) Less Purchaser Credit that HAS NOT been earned: Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted ttigh Bid Appraisal value attermination: (783.81ccf@$29.21/cc~ = $22,895.09 (1395.87 ccf@$0.73/cc0 =$ 1,018.99 a)AddRemaining Effective Purchaser Credit Sub-Total 2. Actual Bid Value of Resale 3. Resale Value

$ $ $ $ $

23,914.08 0.00 23~914.08 0.00 23~914.08

(RESALE VALUEIS THE LARGEROF THE APPRAISAL SUB-TOTAL OR THE ACTUALBID VALUEOF TIlE RESALE)

C)

Calculation of Damages: Maximum Potential Damages(A8) Resale Value (B3) Damages(1-2) Unobligated Cash on Account Estimated Damages Bill Purchaser to Refund Due Purchaser $ $ $ $ 68.223.02 23.914.08 44.308.94 18.314.17

2. 3. 4.

$ 25~994.77 $ 0.00

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FINAL DEFAULT DAMAGECALCULATIONS BROOKBANK MULTI-PRODUCT SALE CONTRACT NO. 05-001822 USDA FOREST SERVICE APACHE-SITGREAVES NATIONAL FOREST

The Brookbank Multi-Product Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 200 I, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminatedbefore completion,the ContractingOfficer must determineif the UnitedStates has been damaged (FSM 2453.5). Damages the United States for Purchaser's failure to cut and due remove included timber are outlined in contract provision CT9.4-- Failure to Cut. The Brookbank Multi-Pmduct sale consisted of six (6) separate payment units whenoriginally sold. Payment units 2, 3, 5 and 6 were operated, with all sawtimberand roundwood removed.Payment units 1 and 4 were partially cut. The remainingvolumeof included timber on the Brookbank Multi-Productsale, at the time of termination, was 1,292 CCF ofsawtimberand 1,903 CCF ofroundwood. current contract The value of the sale at terminationwas $24,348.20.Thereis $2,752.54of Effective PurchaserCredit remaining the sale account. Anappraisal of the remaining on timber at the time of termination, using the standard Forest Servicemethod use at that time andconditionsof the original contract, resulted in an in appraised value of $57,914.19. Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the Brookbank due Multi-Productsale contract. TheBrookbank Multi-Productsale ~vas re-offered for sale following the default, on AugustI, 2001. There were "NoBids" received on the reoffered sale package. Sale preparation charges for the re-offer are displayed below; however,there will be no interest charges (subparagraph(d)) included in the final damage calculations. REMAINING TIMBER At the time of default tbe contract value of the timber at termination was: Released (Partially Cut-Over) PaymentUnits (#1 & ~.pecies PP-Sawtimber PP-Roundwood Volume 1,292 CCF 1,903 CCF Rates (~ Termination $ 5.00/CCF $ 9.40/CCF Value $ 6,460.00 $17,888.20 $ 24,348.20

REMAINING CONTRACT VALUE @ TERMINATION (CCV)

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MISCELLANEOUS COSTS: (MISC$) (a) Cost of Resale The Brookbankmulti-product sale was originally prepared in 1993 and 1994 and needed touch-up marking both cut trees and boundariesprior to re-offering the sale. Additionally, re-cruising of the of remainingvolumewas necessary in order to accurately reflect the remaining volumeon the project. Additional costs for preparation of a newappraisal, prospectus and contract along with the charges associated with preparing the sale of bid openingare included and displaye& Cruising, Vehicle, Supplies, Paint and Data Entry Costs for Recruise of PaymentUnits I and 4: 4- GS-5 Marker/Cruisers I GS-7 Marker/Cruiser Paint and Supplies: 44 person days x $145.00/day 3 person days x $162.00/day = $ 6,380.00 = $ 486.00 = $ 175.00

Data Entry and Cruise Design: 2 person days x $202.00/day = I, GS-9Presale Forester GS-9 1 person day x $202.00/day Sale Administrator, Vehicle Costs: 768 Miles x $0.35/mile= Subtotal, Field Preparationfor Resale Preparation of Appraisal Report, Prospectus and Advertisement: Forester GS-9 Timber Resource Clerk GS-7 Total Sale Package Preparation: Presale Forester GS-9 Contracting Officer GS-12 District Timber Staff GS-11 Misc. Costs: Mailing, Printing Costs, Legal Ads, Subtotal Total Cost for Appraisal and Contract PackagePreparation 2 days @$202.00/day 1 days @$270.O0/day 2 days @$260.O0/day 2 days @$202.00/day 2 days @$180.00/day

= $ 404.00 = $ 202.00 = $ 268.80 = $ 7,915.80

$ 404.00 $ 360.00 $ 764.00

$ 404.00 $ 270.00 $ 520.00 $ 1 I0.00 $1,304.00 $ 2,068.00 $ 9,983.80

TOTAL RESALE COSTS: (b) Increased Purchaser Credit None

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(c) Costs for Failure to Cut Individual Trees on Cut-Over Area or CompletingOther Contractual Requirements: Required final RoadMaintenanceof paymentunit 2 roads which were not completed by Purchaser prior to termination: the workincluded blading, erosion control measuresand water barring. Total Cost was: $ 435.00

(d) Interest on Remaining Contract Value due to delay in receipt of stumpage payments: Per CT9.4-Failureto Cut (4/82) "interest will be chargedfor the total number months,or portions of thereof from TerminationDateuntil mid-pointof the contract resale period, less any time in excess of one year neededto makethe resale." Since there was no resale of the Brookbank multi-product sale there is no mid-pointperiod to calculate interest to and, therefore, there are no associated charges for interest on delayed receipt of stumpagepayments. None (e) Increased RegenerationCosts: None CALCINATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH) 2409.22, Section 62.3, appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updated is the Quality Adjustment value for the included timber becauseof significant changesin the formulas since the original sale was sold. Appraisal Bulletin Number CY 1st Quarter (January) was used 01, 01, determinethe reappraised value of the sale. Theresults are as follows: ~pecies PP-Sawtimber PP-Roundwood Volum~e 1,292 CCF 1,903 CCF Predicted Bid Rate (Line 28) $43.75/CCF $ 0.73/CCF Total Value $ 56,525.00 $ 1,289.19 $57914.19

TOTAL APPRAISED VALUE @ TERMINATION (AppV)

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A)

Calculation of Final Damages:

VOLUME

VALUE

Volume and Contract Value, remaining timber: Sawtimber a. On area not cut over Pulpwood Sawtimber b. On area cut over Pulpwood TOTAL REMAINING TIMBER

0 0 1292 1903

$ 0.00 $ 0.00 $ 6,460.00 $ 17,888.20 $ 6.460.00 $ 17,888.20 $ 24~348.20 $ $ $ $ $ $ $ 0.00 7,915.80 435.00 0.00 2.065.00 0.00 34~764.00

Sa~vtimber 1292 Pulpwood 1903 TOTAL

3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of CompletingContractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package) Less Purchaser Credit that HAS NOT been earned: Maximum Potential Damages

Calculationof Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: (1292 ccf@ 43.75/ccf) = $56,525.00 (1903 ccf@ $0.73/ccf) =$ 1,389.19 a) AddRemaining Effective Purchaser Credit Sub-Total 2. Actual Bid Value of Resale

$ 57,914.19 $ 2.752.54

$ 60~666.73 $ 0.00

3. Resale Value $ 60~666.73 (RESALE VALUE THE IS LARGER THE OF APPRAISAL SUB-TOTALTHE OR ACTUAL VALUE THE BID OF RESALE) C) Calculation of Damages: 1. 2. 3. 4. 5. 6. Maximum Potential Damages(A8) Resale Value (B3) Damages(1-2) Unobligated Cash on Account Damages Due Government Refund Due Purchaser $ 34,764.00 $ 60,666.73 $ (25,902.73) $ 0.00 $. $ 0.00 0.00

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FINAL DEFAI~T DAMAGECALCULATIONS GENTRY MULTI-PRODUCT SALE CONTRACT NO. 04-001939 USDA FOREST SERVICE APACItE-SITGREAVES NATIONAL FOREST

The Gentry Multi-product Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedy breach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordance with Forest Service policy whena timber sale contract is terminated before completion,the ContractingOfficer mustdetermineif the UnitedStates has been damaged 2453.5). Damages the United States for Purchaser's failure to cut and ~SM due remove included timber are outlined in contract provision CT9.4-- Failure to Cut. TheGentry Multi-productsale consisted of four (4) separate payment units when originally sold. harvesting was ever done on any of the payment units. Noroads wereever built and, consequently,no Purchaser Credit was ever earned. The remaining volumeof included timber on the Gentry Multi-product sale, at the time of termination, was 3800CCF sawfimber 893 CCF of and ofroundwood. current The contract value of the sale at terminationwas$230,743.46. sale wassold as a Flat Rate sale so there The will be no adjustmentsto the current contract rates necessary. There is $24,734.01of unearned Purchaser Credit on the sale account. Anappraisal of the remaining timber at the time of termination, using the standardForest Service method use at that time and conditionsof the original contract, resulted in an in appraised value of $145,127.89. Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the GentryMulti-productsale contract. The due Gentry Multi-product sale was re-offered for sale on May30, 2001 and received "NoBids." Therefore, miscellaneouscosts for sale preparation are shown the damage in calculations but there will be no charges for interest on delayed receipt of stumpagedeposits (subparagraph(d)). REMAINING TIMBER At the time of default the contract value of the timber at termination was: Unreleased Payment Units (# 1- 4) Sr~ecies PP-Sawtimber (9-12") PP-Sawtimber (12+) PP Roundwood Volume 1,076 CCF 2,742 CCF 893 CCF Rates ~ Termination $21.89/CCF $73.93/CCF $ 6.50/CCF $Value $ 23,553.64 $ 201,385.32 $ 5,804.50 $ 230~743.46

REMAINING CONTRACT VALUE @ TERMINATION (CCV)

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MISCELLANEOUS COSTS: (MISC$) (a) Cost of Resale Becausethe Gentry Multi-product sale was markedand cruised in 1996 and 1997is did not require any additional marking prior to re-offer. Volume estimates wereconsidered to still be valid at the time of re-offer so there wasno additional cruising either. Costs shown for the preparation of a new are appraisal, prospectus and contract package, along with the associated personnel and miscellaneous charges associated with a timber sale offering. Preparation of Appraisal Report, Prospectus and Advertisement: Forester GS-9 Timber Resource Clerk GS-7 Total Sale Package Preparation: Presale Forester GS-9 Contracting Officer GS-12 District Timber Staff GS-I 1 Misc. Costs: Mailing, Printing Costs, Legal Ads, Subtotal Total Cost for Appraisal and Contract Package Preparation (b) Increased Purchaser Credit None (c) Costs for Failure to Cut Individual Trees on Cut-Over Area: None (d) Interest on Remaining Contract Value due to delay in receipt of stumpagepayments: Per CTgA-Failure Cut (4/82) "interest wilt be chargedfor the total number mnnths,or portions to of thereof fromTerrfflnation Date until mid-pointof the contract resale period, less any time in excess of one year neededto makethe resale." Since there was no resale of the Gentry Multi-pruductsale there is no mid-point period to calculate interest on delayed receipt of stumpage deposits (subparagraph(d)) and, therefore, there are no associated charges for interest due to the delay in receipt of stumpage payments. (e) Increased RegenerationCosts: None 4 days @$202.00/day 2 days @$270.00/day 2 days @$260.00/day $ 808.00 $ 540.00 $ 520.00 $110.00 $1,978.00 $2,748.00 2 days @$205.00/day 2 days @$180.00/day $ 410.00 $ 360.00 $ 770.00

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CALCULATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH) 2409.22, Section 62.3, appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updated is the Quality Adjustment value for the included timber because of significant changesin the formulas since the original sale was sold. Appraisal Bulletin Number CY01, 1st Quarter (January) was used 01, determinethe reappraisedvalue of the sale. Theresults are as follows: ~_pecies PP-Sawtimber PP-Roundwood Volume 3,800 CCF 893 CCF Predicted Bid Rate (Line 28) $38.02/CCF $ 0.73/CCF Total Value $144,476.00 $ 651.89 $145,127.89

TOTAL APPRAISED VALUE @ TEILMINATION (AppV)

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A)

Calculation of Final Damages: Volume and Contract Value, remaining timber: a. On area not cut over Sawtimber Pulpwood b. On area cut over Sawtimber Pulpwood

VOLUME

VALUE

38OO 893 0 0

$ 224.938.96 $ 5,804.50 $ ~0.00 $ 0.00 $ 224,938.96 $ 5,804.50 $ 230~743.46 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2.748.00 $ (24.734.01) $ 208~757.45

TOTAL REMAENINGTIMBER

Sa~vtimber 3800 Pulp~vood 893 TOTAL

3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of CompletingContractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package) Less Purchaser Credit that HAS been earned: NOT Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: (3800 ccf@ 38.029.21/ccf) = $144,476.00 ( 893 ccf @$0.73/ccf) 651.89 a) AddRemaining Effective Purchaser Credit Sub-Total 2. ActuaIBid Value of Resale 3. Resale Value

$ 145~127.89 $ 0.00

$ 145~127.89 $ 0.00

$ 145.127.89

(RESALE VALUEIS THE LARGEROF THE APPRAISAL SUB-TOTAL OR THE ACTUAL BID VALUEOF TIlE RESALE)

C)

Calculation of Damages: 1. 2. 3. 4. 5. 6. Maximum Potential Damages(A8) Resale Value (B3) Damages (1-2) Unobligated Cash on Account Damages Due Government Refund Due Purchaser $ $ $ $ $ $ 208,757.45 145,127.89 63~629.56 0.00 63~629.56 0,00

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FINAL DEFAULT DAMAGECALCULATIONS HUTCH-BOONDOCK MULTIPRODUCT SALE CONTRACT NO. 04-005465 USDA FOREST SERVICE COCONINO NATIONAL FOREST

The Hutch-Boondock Timber Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminated before completion,the Contracting Officer must determine if the United States has been damaged (FSM 2453.5). Damages the United due States for Purchaser'sfailure to cut and remove includedtimberare outlined in contract provision CT9.4-- Failure to Cut. TheHutch-Boondock timber sale consisted of t~vo (2) separate payment units whenoriginally sold. Operationsoccurred both paymentunits with nearly all of the sawtimberand a portion of the pulpwood removed.The remaining volumeof included timber on the Hutch-Boondock timber sale, at the time of termination, was 23 CC~ ofsawfimber 905 CCF and of roundwood. current contract value (CCV) the sale at termination was $9,366.28. The sale was sold as an Escalated The of Rate sale, ho~vever payment all units havebeenreleased and the rates are fixed for the quarter in whichreleased. Therefore,there will be no adjustmentsto the current contract rates. Thesale containeda revised PurchaserCredit limit of $4,786.44.All of the PurchaserCredits were transferred out of the sale and used to pay timber stumpage other sales. on There is no unused, effective purchaser credit (EPC)remainingon the sale account. Anappraisal of the remainingtimber at tbe time of termination, using the standardForest Servicemethod use at that time and conditionsof the original in contract, resulted in an appraisedvalue of $1,455.99. Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damagesdue the United States for default of the Hutch-Boondock Multi-product sale contract. The Hutch-Boondock Multi-Productsale wasnot re-offered for sale followingthe default. Therefore, no miscellaneouscosts for sale preparation or interest charges (subparagraph(a) and (d)) are included in the final calculation of damages. REMAINING TI[MBER At the time of default the contract value of the timber at termination was: Unreleased Payment Units Released (Cut-Over) PaymentUnits yolume ~ PP-Sawtimber 23 CCF 905 CCF PP-Roundwood $ 0.00 SValue $ 859.28 $ 8,507.00 $ 9.366.28

Rate ~ Termination $37.36/CCF $ 9.40/CCF (CCV)

REMAI~NG CONTRACT VAL~ @ TEII3clINATION

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M~SCELLANEOUSCOSTS: (MISC$) (a) Cost of Resale The decision was madeto not re-offer the Hutch-Boondock timber sale. Therefore, there are no associated costs of resale attributable to the damage calculations. (b) Increased Purchaser Credit None (c) Costs of CompletingContract Requirements: At the end of tire last active operations, the operator moved of the sale area with anticipation that operations would off continue in the next field season. However, operations have never resumed.A total of 23 roads have been left open in anticipation of removalof the remainingtimber. Theroads total 7.5 miles and needto be closed pursuant to the contract. RoadClosure work is appraised at $500/mile Total Cost to close 7.5 miles x $500/mile

=$3,750.00

(d) Interest on Remaining Contract Value due to delay in receipt of stumpage payments: The Hutch-Boondock Multi-productsale was not re-sold so there is no mid-point period to calculate interest to. Therefore, there are no associated charges for interest on delayed receipt of stumpage payments. None (e) Increased RegenerationCosts: None CALCULATION OF R_ESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH)2409.22, Section 62.3, an appraisal is done the time of termination of the sale and is based uponthe remainingcontract volume the original appraisal and conditions. The only value whichhas been updated is the Quality Adjustmentvalue for the included timber because of significant changes in the formulas since the original sale wassold. Appraisal Bulletin Number CY01, 1st Quarter 01, (January) wasused to determinethe reappraised value of the sale. Theresults are as follows: ~ PP-Sawtimber PP-Roundwood Volume 23 CCF 905 CCF Predicted Bid Rate (Line 28) $ 34.58/CCF $ 0.73/CCF Total~Value $ 795.34 $ 660.65 $ 1,455.99

TOTAL APPIL~SED VALUE @ TE1EVIINATION (AppV)

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Calculation of Final Damages: Volume and Contract Value, remaining timber: a. On area not cut over Sawfimber Pulpwood Sawtimber b. On area cut over Pulpwood TOTAL REMAINING TIMBER

VOLUME

VALUE

0 0 23 905

$ 0.00 $ 0.00 $ 859.28 $ 8,507.00 $ 859.28 $ 8,507.00 $ 9~366.28 $ 0.00 $. 0.00 $ 3.750.00 $ 0.00 $ 0.00 $ 3,750.00 $ 0.00 $ 13,116.28

Sawtimber 23 Pulpwood 905 Subtotal

3. 4. 5. 6.

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of Completing Contractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package) Subtotal Less Purchaser Credit that HAS been earned: NOT Maximum Potential Damages

B)

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: ( 23 ccf@$34.58/ccf) = (905 ccf@ $0.73/ccf) a) AddRemainingEffective Purchaser Credit Sub-Total 2. Actual Bid Value of Resale 3. Resale Value

795.34 660.65

$ L455.99 $ 0.00

$ 1A55.99 $ 0.00 $ 1,455.99

(I~SALE VALUEIS THE LARGEROF TIlE APPRAISAL SUB-TOTALOR THE ACTUALBID VALUEOF THE RESALE)

C)

Calculation of Damages: 1. 2. 3. 4. 5. 6. Maximum Potential Damages(A8) Resale Value (B3) Damages (1-2) Unobligated Cash onAccount Damages Due Government Refund Due Purchaser $ $ $ $ $ $ 13.116.28 1,455.99 1L660.29 9,381.57 2,278.72 0.00

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FINAL DEFAL~T DAMAGECALCULATIONS JERSEY HORSE TIMBER SALE CONTRACT 05-001756 NO USDA FOREST SERVICE APACHE-SITGREAVES NATIONAL FOREST

The Jersey Horse Timber Sale was cancelled by the Regional Forester, Eleanor S. Tmwns, January on 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminated before completion,the ContractingOfficer must determineif the UnitedStates has been damaged (FSM 2453.5). Damages the United States for Purchaser's failure to cut and due removeincluded timber are outlined in contract provision CT9.4- Failure to Cut. TheJersey Horsetimber sale consisted of seven (7) separate payment units when originally sold. Payment Units 1, 5, 6, and 7 wereoperated and harvested. Payment Units 2, 3, and 4 werenever released for harvest. Theremainingvolumeof included timber on the Jersey Horsetimber sale, at the time of termination, was1,354 CCF ofsawtimber.Thecurrent contract value of the sale at termination was 203,831.16.Current Contract Valueis baseduponthe rates in effect for unreleasedpayment units as of the date of termination. Anappraisal at the time of temaination, using the standard Forest Service method in use at tbat time andthe conditionsof the original contract, resulted in an appraisedvalue of $227,783.42. Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the UnitedStates for default of the Jersey Horsetimber sale contract. The due Jersey Horse timber sale was re-offered for sale following the default, on November 1,200 I. Precision Pine wasthe successful bidder and the sale had a terrfflnation date of December 2004. 31, Miscellaneous costs for sale preparation or interest charges (subparagraph(a) and (d)) are include the final calculation. REMAINING TIMBER At the time of default the contract value of the timber at termination was: Unreleased Payment Units (# 2, 3 & 4) ~pecies PP-Sawtimber Volume 1,352 CCF Rates ~ Temaination $150.54/CCF $Value $ 203,83I. 16

REMAINING CONTRACT VALUE @ TERMINATION (CCV)

$ 203,831.16

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MISCELLANEOUS COSTS: (a) Cost of Resale

~SC$)

This sale was an older sale, markedand cruised in 1991 and 1992, that needed sometouch-up marldng of included timber as well as remarkingof the boundaries, The remaining paymentunits were also recruised to moreaccurately assess the remainingvolumeprior to resale. Additional costs are shown for a newappraisal, prospectus, advertisementand contract packagenecessary for the resale of the timber. Cruising, Vehicle, Supplies, Paint and Data Entry Costs: 4, GS-5 Marker/Cruisers 68 person days × $145.00/day = $9,860.00

Data Entry and Cruise Design 1, GS-9Presale Forester6 days x $202.00/day Vehicle Costs 1,309 Miles x $0.35/mile Supplies and Paint:

=

$1,212.00 $ 458.15 $2,095.00

= =

TOTAL UPDATED CRUISING COSTS

=

$13,625.15

Preparation of Appraisal Report, Prospectus and Advertisement: Presale Forester GS-9 Timber Resource Clerk GS-5 5 days x$202.00/day 2 days x$143.00/dau Subtotal = = = $I,010.00 $ 286.00 $1,296.00

Sale Package Preparation: Pre-Sale Forester GS-9 Contracting Officer GS=I1 Engineering GS-11 Timber Resource Clerk GS-6 Sale Administrator GS-9 Miscellaneous Costs: Mailings/Printing/Legal Ads: 2 days x $202.00/day 2 days x $233.00/day 1 day x $272.00/day 3 days x $161.O0/day 2 days x $206.00/day = = = = = $ $ $ $ $ 404.00 466.00 272.00 483.00 412.00

$ 100.00 Subtotal = $2,137.00 $ 3,433.00

TOTAL COST OF OFFICE PREP FOR RESALE:

(b) Increased Purchaser Credit None

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(c) Costs for Failure to Cut Individual Trees on Cut-Over Area: None (d) Interest on Remaining Contract Value Due to Delay in Receipt of Stumpage Payments: Per CT9.4-Failureto Cut (4/82), subparagraph "interest will be charged for the total number (d) months,or portions thereof from TerminationDateuntil mid-pointof the contract resale period, less any time in excess of one year needed to makethe resale." The Jersey Horsetimber sale was offered for sale on November 2001 and subsequently awarded. The sale had a termination date of December 1, 31, 2004. Theinterest rate in effect at the time of termination was6.0%and the associated charges for interest on delayed stumpage receipts are as follows: Termination Date: January 9, 2001 Re-sale Termination Date: December31, 2004 Therefore: 2001 1/9 through 12/31 = 356 days = 365 days 2002 I/I through 12/31 2003 I/1 through 12/31 = 365 days 366 days 2004 I/I through 12/31 = Total Days: 1,452 days + 2 = 726 days of interest (D) = Unpaid Contract Value at Termination Date: $203,831.16 I = CCV*.06*(D/365) = $203,831.16 *.06" (726/365)

= $ 24,325.71

(e) Increased RegenerationCosts:

CALCULATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH) 2409.22, Section 62.3, appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updatedis the Quality Adjustment value for the included timber because of significant changes in the formulas since the original sale was sold. Appraisal Bulletin Number CY01, 1st Quarter (January) was used 01, determinethe reappraisedvalue of the sale: Theresults are as follows: .~pecies PP-Sawtimber Volume 1,354 CCF Predicted Bid Rate (Line 28) $168.23/CCF Total Value $227,783.42 $227~783.42

TOTAL APPRAISED VALUE @ TERMINATION (AppV)

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Calculation of Final Damages:

VOLUME

VALUE

Volume and Contract Value, remaining timber: a. On area not cut over Sa,~¢imber Pulpwood b. On area cut over Sawtimber Pulpwood TOTAL REMAINING TIMBER

1,354 0 0 0

$ 203,831.16 $ 0.00 $ 0.00 $ 0.00 $ 203.831.16 $ 0.00 $ 203~831.16 $ 0,00 $ 13.615.15 $ 0.00 $. 24.325.71 $ 3,433.00 $ 0.00 $ 245,215.02

Sawtimber 1,354 Pulpwood 0 TOTAL

2. 3. 4. 5. 6. 7. 8, B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of Completing Contractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package) Less Purchaser Credit that HAS been earned: NOT Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: PP-Sawtimber 1,354 CCF@ 168.23/ccf a) AddRemaining Effective Purchaser Credit Sub-Total 2, Actual Bid Value of Resale

$ 227~783.42 $ 0.00

$ 227~783.42 $ 86.290.64

3. Resale Value $ 227 783A2 (RESALE VALUE THE IS LARGER THE OF APPRAISAL SUB-TOTALTHE OR ACTUAL VALUE THE BID OF RESALE) C) Calculation of Damages: 1, 2. 3. 4, 5. 6. Maximum PotentiaI Damages(AS) Resale Value (B3) Damages(1-2) Unobligated Cash on Account Damages due Government Refund Due Purchaser $ 245:215.02 $ 227~783.42 $ 17~431.60 $ 0.00 $ 17~431.60 $ 0.00

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FINAL DEFAULT DAMAGECALCULATIONS LILY TIMBER SALE CONTRACT NO. 03-020140 USDA FOREST SERVICE GILA NATIONAL FOREST

The Lily TimberSale was cancelled by the RegionalForester, Eleanor S. Towns,on January 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminated before completion, the Contracting Officer must determine if the United States has been damaged (FSM 2453.5). Damages the United States for due Purchaser's failure to cut and removeincludedtimber are outlined in contract provision CT9.4- Failure to Cut. TheLily timber sale consisted of three (3) separate payment units whenoriginally sold. Noharvest operations were ever conductedon the sale so all of the original volumeremainsto be removed.The remainingvolumeof included timber on the Lily timber sale, at the time of termination, was 1,890 CCF sawtimberand 750 CCF of ofroundwood. current The contract value of the sale at temaination(CCV) $79,593.90.Tbesale wassold as a Flat Rate sale. There was was purchasercredit on the sale. Anappraisal of the remaining timberat the time of termination, using the standard Forest Service method use at that time and conditionsof the original contract, resulted in an appraisedvalue of $13,728.00. in Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the Lily timber sale contract. TheLily timber sale wasre-offered for sale due on September6, 2001and received "NoBids." Costs associated with the preparation for resale and re-offer are included in the MISC$ calculations. However, since there was no resale, there are no correspondingcharges for interest on delayed stumpagereceipts pursuant to subparagraph(d). REMAINING TIMBER At the time of default the contract value of the timber at terminationwas: Unreleased PaymentUnits ( ALL .~pecies PP-Sawtimber DF&O-Sawtimber PP Round~vood Volume 1,710 CCF 180 CCF 750 CCF Rates ~ Termination $41.59/CCF $20.00/CCF $ 6.50/CCF $Value $ 71,118.90 $ 3,600.00 $ 4,875.00 $79593.90

REMAINING CONTRACT VALUE @ TERMINATION (CCV)

MISCELLANEOUS COSTS: (MISC$) (a) Cost of Resale The sale area and cutting unit boundaries required remarkingprior to the re-offer. There was also sometouch up markingof"cut-tree" marksthough not over the entire sale area.

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RemarkBoundaries, Touch-up mark Included Timber: GS-9 @10 Days @ $213.00/day Paint: 12.0 Gallons @@8.99/Gal Vehicle Costs: 550 miles @.45/mi FOR: 1/3 month @ $350/mo Total Field PreparationCosts: Preparation of Appraisal Report, Prospectus and Advertisement: Forester GS-9 Forestry Technician GS-9 Forestry Resource Clerk GS9/8 Total Sale Package Preparation: Forester GS-11 Forestry Resource Clerk GS-9/8 Mailing, Printing Costs, Legal Ads, Subtotal 3 days @$255.00/day 2 days @$213.00/day $ 765.00 $ 426.00 $125.00 $1,316.00 $ 5,595.15 3 days @$195.00/day 2 days @$213.00/day 2 days @$213.00/day $ 585.00 $ 426.00 $ 426.00 $1,437.00 $2,130.00 $ 348.00 $ 247.50 $ 116.65 $ 2,842.15

Total Cost for Appraisal and Package Preparation:

(b) Increased Purchaser Credit None (c) Costs for Failure to Cut Individual Trees on Cut-Over Area: None (d) Interest on Remaining Contract Value due to delay in receipt of stumpage payments: Per CT9.4-Failureto Cut (4/82) "interest ~vill be chargedfor the total number months,or portions thereof from of TerminationDate until mid-point of the contract resale period, less any time in excess of one year neededto makethe resale." Since the re-offer of the Lily sale resulted in "NoBids" there wasno resale, there wasno mid-pointperiod on whichto base the calculation of interest. Therefore, there are no associated charges for interest on delayedreceipt of stumpage payments. None (e) Increased Regeneration Costs: None

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CALCULATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH)2409.22, Section 62.3, an appraisal is done the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updated is the Quality Adjustment value for the included timber because of significant changesin the formulas since the original sale was sold. Appraisal Bulletin Number CY Ist Quarter 0I, 01, (January) wasused to determinethe reappraised value of the sale. Theresults are as follows: _~ecies PP-Sawtimber DF&O-Sawtimber PP-Roundwood Volume 1,710 CCF 180 CCF 750 CCF Predicted $ $ $ Bid Rate (Line 28) 7.25/CCF 4.35/CCF 0.73/CCF Total Value $12,397.50 $ 783.00 $ 547.50 $13,728.00

TOTAL APPRAISED VALUE @ TERMINATION (AppV)

ThePredicted Bid Value, Line 28, of the appraisal at termination showsa negative value, indicating a deficit timber sale. Rates used, therefore, are the Base Rate values fromthe appraisal, whichare the lowest value that Forest Service timber can be sold for.

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Calculation of Final Damages: Volume and Contract Value, remaining timber: a. On area not cut over Sawtimber(All) Pulpwood b. On area cut over Sawtimber Pulpwood TOTAL REMAINING TIMBER

VOLUME

VALUE

1,890 750 0 0

$ 74.718.90 $ 4,875.00 $ 0.00 $ 0.00 $ 74,718.90 $ 4,875.00 $ 79.593.90 $ 0.00 $ 2842.15 $ 0.00 $ 0.00 $ 2.753.00 $ 0.00 $ 85.189.05

Sawtimber 1,890 Pulpwood 750 TOTAL

3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of Completing Contractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package) Less Purchaser Credit that HAS been earned: NOT Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: (PP-Sawtimber 1,710 CCF@$7.25./CCF) $12,397.50 $ (DF&O-Sa~vtimber180 CCF@ $4.35/CCF) $ 783.00 (PP-Roundwood750 CCF@ $0.73/CCF $0.73/ccf) =$ 547.50 $ a) AddRemainingEffective Purchaser Credit Sub-Total 2. Actual Bid Value of Resale $ $ 13.728.00

0.00 13~728.00 0.00

3. Resale Value $ 13~728.00 (RESALE VALUE THE IS LARGER THE OF APPRAISAL SUB-TOTAL ACTUAL VALUE THE OR THE B1D OF RESALE) C) Calculation of Damages: 1. 2. 3. 4. 5. 6. Maximum Potential Damages (AS) Resale Value (B3) Damages(1-2) Unobligated Cash on Account Damages Due Government Refund Due Purchaser $ $ $ $ 85.189.05 13,728.00 7L461.05 11.700.00

$ 59.761.05 $ 0.00

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FINAL DEFAULT DAMAGECALCULATIONS MANACOTIMBER SALE CONTRACT 04-004625 NO. USDA FOREST SERVICE TONTO NATIONAL FOREST

The Manaco Timber Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminated before completion,the Contracting Officer must determineif the United States has been damaged (FSM 2453.5). Damages the United States for Purchaser's failure to cut and remove due includedtimber are outlined in contract provision CT9.4 Failure to Cut. -The Manaco timber sale consisted of ten (10) separate payment units whenoriginally sold. Payment units I and 2 were operated, with all of the sawtimberand pulp~vood removed. Payment unit 7 wasalso operatedin with five (5) &thesix (6) cutting units completelycut. Theremainingcutting unit wasnever operated. At the time of termination the remainingvolumeof included timber on the Manaco timber sale was 3,514 CCF sawifnber and 902 CCF of ofroundwood. current contract value of the sale at The termination was $173,813.16.The sale wassold as an Escalated Rate sale for sawtimber.The rate used to calculate the current contract value for unreleasedpayment units is the rate in effect at the endof the quarter immediatelypreceding the termination. This rate wasthe Base Rate for the sale. Roundwood was sold at a flat rate. There remains$128,816.00 unearnedpurchasercredit on the sale. There wasno of unusedEffective Purchaser Credit ~PC)remaining. Anappraisal of the remainingtimber at the time of termination, using the standard Forest Service method use at that time and conditionsof the original in contract, resulted in an appraisedvalue of $163,813.48. Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the Manaco due timber sale contract. The Manaco timber sale was re-offered for sale on 8/31/2001 as the "Diamond" timber sale and received "NoBids." Miscellaneouscosts for sale preparation and re-offer are shownin the final damage calculation. There is no calculation of interest for delayed receipt of stumpagecharges (subparagraph (d)). REMALN%NG TIMBER At the time of default the contract value of the timber at terminationwas: Unreleased Payment Units ~pecies Volume PP-Sawtimber 3,468CCF PP Roundwood 836 CCF Released (Cut-Over) Payment Units ~pecies Volume PP-Sawtimber 46 CCF PP-Roundwood 66 CCF $Value $161,435.40 $ 7,858.40 SValue $ 3,989.96 $ 620.40 $173,813.16

Rates @Termination $46.55/CCF $ 9.40/CCF

Rates ~ Termination $84.76/CCF $ 9.40/CCF

REMAINING CONTRACTVALUE @ TERMINATION (CCV)

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MISCELLANEOUS COSTS: (MISC$) (a) Cost of Resale Becausethis sale is an older sale, marked cruised in 1994, it neededtouch-upmarkingof cut trees and and remarking cutting unit boundariesprior to re-offer. Thesale wasalso re-cruised in order to of estimate additional volumedue to growth. Additional costs associated with the resale include the cost of preparing a revised appraisal and contract packageas well as an additional advertisement. Costs shownare those incurred by the Forest to completethe resale package. Remark cutting unit and sale area boundaries, touch-up mark cut trees and re-cruise the sale: of GS 6@$146.00/dayx 28 days GS-7@$105.00/dayx 28 days 2GS-9@$213.00/dayx 56 days Subtotal Paint: 37.5 cases @$72.00/case Vehicle Costs: 1200 miles @.45/mi FOR: I month @ $350/mo Total Field PreparationCosts: Preparation of Appraisal Report, Prospectus and Advertisement: Forestry Technician GS9/5 Forestry Technician GS9/3 Forestry Resource Clerk GS9/8 Total Sale Package Preparation: Forestry Technician GS9/5 Forestry Technician GS9/3 Forestry Resource Clerk GS9/8 Cost to Revise Engineering Package: Engineer GS-11 Review by Forestry TeamLeader Bid Day Attendance Mailing, Printing Costs, Legal Ads, Subtotal 2 days @$195.00/day 3 days @$213.00/day 2 days @$213.00/day 1.5 days @$250.00/day 1 day @$274.00.day .5 day @$274.00/day $ 390.00 $ 639.00 $ 426.00 $375.00 $274.00 $137.00 $125.00 $2,366.00 $3,608.00 2 days @$195.00/day 2 days @$213.00/day 2 days @$213.00/day $ 390.00 $ 426.00 $ 426.00 $1,242.00 $ 4,088.00 $ 2,940.00 $I_~_1 928.00 $18,956.00 $ 2,700.00 $ 540.00 $ 350.00 $22,546.00

Total Cost for Appraisal and Package Preparation:

(b) Increased Purchaser Credit None

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(c) Costs for Failure to Cut Individual Trees on Cut-Over Area: None (d) Interest on Remaining Contract Value due to delay in receipt of stumpage payments: Per CT9.4-Failureto Cut (4/82) "interest will be chargedfor the total number months,or portions of thereof from Termination Date until mid-point of the contract resale period, less any time in excess of one year neededto makethe resale." Since there was no resale of the Manaco timber sale there are no associated charges for interest on delayed receipt of stumpagepayments.
None

(e) Increased RegenerationCosts: None CALCULATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH) 2409.22, Section 62.3, appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updated is the Quality Adjustment value for the included timber because of significant changesin the formulas since the original sale was sold. Appraisal Bulletin Number CY01, Ist Quarter (January) wasused 01, determinethe reappraisedvalue of the sale. Theresults are as follows: _Species PP-Sawtimber PP-Roundwood Volume 3,514 CCF 902 CCF Predicted Bid Rate (Line 28) $46.43/CCF $ 0.73/CCF Total Value $163,155.02 $ 658.46 $163.813.48

TOTAL APPRAISED V~UE @ TERMINATION (AppV)

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A)

Calculation of Final Damages: Volume and Contract Value, remaining timber: a. On area not cut over Sawtimber Pulpwood b. On area cut over Sawtimber Pulpwood

VOLUME

VALUE

3,468 836 46 66

$ 161,485.40 $ 7.858.40 $ 3,898.96 $ 620.40 $ 165,334.36 $ 8,478.80 $173~813.16 $ $ $ $ $ $ $ 0.00 22.546.00 0.00 0.00 3,608.00 (128,816.00) 71.151.16

TOTAL REMAINING TIMBER

Sawtimber 3,514 Pulpwood 902 TOTAL

3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of CompletingContractual Requirements Interest on remainingcontract value Other Damages (Office Prep of Resale Package Less Purchaser Credit that HAS been earned: NOT Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: (3,514 ccf @$46.43/ccf) = $163,155.02 658.46 ( 902 ccf@ $0.73/ccf) =$ a) AddRemainingEffective Purchaser Credit Sub-Total 2. Actual Bid Value of Resale

$ 163~813.48 $ 0.00

$ 163~813.48 $ 0.00

3. Resale Value $ 163,813.48 (RESALE VALUE THE IS LARGER THE OF APPRAISAL SUB-TOTAL ACTUAL VALUE THE OR THE BID OF RESALE) C) Calculation of Damages: 2. 3. 4. 5. 6. Maximum Potential Damages (A8) Resale Value ~3) Damages(1-2) Unobligated Cash on Account Damages Due Government Refund Due Purchaser $ 71.151.16 $ 163.813.48 $ (92,662.32) $ 0.00 $ 0.00 $ 0.00

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FINAL DEFAULT DAMAGECALCULATIONS MONUMENTMULTI-PRODUCT SALE CONTRACT NO. 04-005564 USDA FOREST SERVICE COCON1NO NATIONAL FOREST

The Monument Multi-product Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - _Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminated before completion,the ContractingOfficer mustdetermineif the UnitedStates has been damaged (FSM 2453.5). Damages the United States for Purchaser's failure to cut and due removeincluded timber are outlined in contract provision CT9.4-- Failure to Cut. The Monument Multi-productsale consisted of two (2) separate payment units whenoriginally sold. harvest operations wereever conducted the sale and, therefore, all of the original sale volume on remains to be harvested. The remainingvolumeof included timber on the Monument Multi-productSale, at the time of termination, was 1,461 CCF sawtimberand 1,100 CCF of ofroundwood. current contract value The (CCV) the sale at termination was$100,922.00.The sale was sold as a Flat Rate sale. Thesale of contained a Purchaser Credit limit ors 22,649.28. All of the required roadworkwas completedand accepted and all purchasercredit wasearned. Theearned purchaser credit was subsequentlytransferred out of this sale to pay stompage charges on other timber sales. There is no earned Effective Purchaser Credit (EPC)remainingon the account. Anappraisal of the remainingtimber at the time of termination, using the standard Forest Service method use at that time and conditionsof the original contract, in resulted in an appraisedvalue of $ 20,526.50. Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the Monument due Multi-product sale. The Monument Multi product Sale was re-offered for sale on September18, 2001 and received "No Bids." REMAINING TIMBER At the time of default the contract value of the timber at termination was: Unreleased PaymentUnits (All) ~_pccies PP-Sa~vtimber PP Roundwood Volume 1,461 CCF 1,100 CCF Rates ~ Termination $62.00/CCF $ 9.40/CCF $Value $ 90,582.00 $10,340.00

REMAINING CONTRACT VALUE @ TERMINATION (CCV)

$100922.00

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MISCELLANEOUS COSTS: (MISC$)

(a) Cost of Resale A reviewof the markingon the sale revealed that the Cut Tree Mark~lue Paint) was still in fairly goodcondition. That is, all the markswereidentifiable and it wasfelt that the markwouldhold up for the duration of any resale contract period. District personnelconcluded that re-cruising (re-measuring) the sale wasnot necessary. The sale wasreoffered using the volume the original sale offering. of Preparation of Appraisal Report, Prospectus and Advertisement: Forester GS-11 Timber Resource Clerk GS-7 Total Sale PackagePreparation: Presale Forester GS-9 Contracfinig Officer GS-12 Distgrict Timber Staff GS-11 Misc. Costs: Mailing, Printing Costs, Legal Ads, Subtotal Total Cost for Appraisal and Contract PackagePreparation 2 days @$200.O0/day 2 days @$270.O0/day 2 days @$260.O0/day $ 400.00 $ 540.00 $ 520.00 $110.00 $1,570.00 $2,450.00 2 days @$260.00/day 2 days @$180.00/day $ 520.00 $ 360.00 $ 880.00

(b) Increased Purchaser Credit None (c) Costs for Failure to Cut Individual Trees on Cut-Over Area: None (d) Interest on Remaining Contract Value due to delay in receipt of stumpage payments: Per CTg.4-Fallureto Cut (4/82) "interest will be chargedfor the total number months,or portions of thereof from Termination Date until mid-point of the contract resale period, less any time in excess of one year neededto makethe resale." Since the re-offer resulted in "NoBids" there was no resale of the Monument Multi-productsale and there is no mid-point period to calculate interest to. There are no associated charges for interest on delayed receipt of stumpagepayments. None (e) Increased RegenerationCosts: None

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CALCULATION OF RESALE VALUE: In accordance with provision CT9.4 and Forest Service Handbook ~SH)2409.22, Section 62.3, an appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updated is the Quality Adjustment value for the included timber becauseof significant changes in the formulas since the original sale wassold. Appraisal Bulletin Number CY 01, 01, 1st Quarter (January) wasused to determinethe reappraised value of the sale. Theresults are as follows: _Species PP-Sawtimber PP-Roundwood Volume 1,461 CCF 1,100 CCF Predicted Bid Rate (Line 28) $13.50/CCF $ 0.73/CCF Total Value $19,723.50 $ 803.00 $ 20~526.50

TOTAL APPRAISED VALUE @ TERMINATION (AppV)

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A)

Calculation of Final Damages: Volume and Contract Value, remaining timber: a. On area not cut over Sawtimber Pulpwood b. On area cut over Sawtimber Pulpwood

VOLUME

VALUE

1,461 1,100 0 0

90,582.00 10,340.00 0.00 0.00 $ 90,582.00 $ 10,340.00 $100, 922°00 0.00 $ $ 2,450.00 $ 0.00 $ 0.00 0.00 $ $ 0.00 $ 103.372.00

TOTAL REMAINING TIMBER

Sawtimber 1,461 Pulpwood 1,100 TOTAL

2. 3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Office Prep Only) Cost of CompletingContractual Requirements Interest on remainingcontract value Other Damages Less Purchaser Credit that HAS been earned: NOT Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) Predicted High Bid Appraisal value at termination: (1,461 ccf@ $13.50/ccf) = $19,723.50 (1,100 ccf@ $0.73/ccf) 803.00 a) AddRemaining Effective Purchaser Credit Sub-Total 2. Actual Bid Value of Resale

$ 20,526.50 $ 0.00

$ 20,526.50 $ 0.00

3. Resale Value $ 20,526.50 (RESALE VALUE THE IS LARGER THE OF APPRAISAL SUB-TOTALTHE OR ACTUAL VALUE THE BID OF RESALE) C) Calculation of Damages: 1. 2. 3. 4. 5. 6. Maximum Potential Damages(A8) Resale Value 03) Damages(1-2) Unobligated Cash on Account Damages Due Government Refund Due Purchaser $103.372.00 $ 20.526.50 $ 82,845.50 $ 12,000.00 $ 70~845.50 $ 0.00

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FINAL DEFAULT DAMAGECALCULATIONS O.D. RIDGE TIMBER SALE CONTRACT NO. 06-001574 USDA FOI~ST SERVICE APACHE-SITGREAVES NATIONAL FOREST

The O.D. Ridge Timber Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedybreach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminatedbefore completion,the ContractingOfficer must determineif the United States has been damaged (FSM 2453.5). Damages the United States for Purchaser's failure to cut and due remove included timber are outlined in contract provision CT9.4-- Failure to Cut. TheO.D. Ridgetimber sale consisted of six (6) separate payment units whenoriginally sold. Through contract modification, payment units 2 and 3 were split into units 2 and 2Aand 3 and 3A, respectively. Payment units 1, 2, 3, 4, 5, and 6 wereoperated and harvested. Payment units 2Aand 3Awere never released for harvest and ~vere not operated. The remainingvolume included timber on the O.D. Ridge of timber sale, at the time of termination, was1,281 MBF ofsawtimber. current contract value of the sale The at termination (CCV) $292,663.18.The sale was sold as an Escalated Rate sale. Rates used was calculate CCV unreleasedpayment for units are those in effect at the end of the quarter immediately precedingthe terminationfor default. All purchasercredit on the sale wasearned and used. Anappraisal of the remaining timberat the time of termination, using the standard Forest Service method use at that in time and conditions of the original contract, resulted in an appraised value of $455,374.20 Basedon procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the UnitedStates for default of the O.D. Ridge timber sale contract. The due O.D. Ridge timber sale wasre-offered for sale following the default on July 11, 2001and was sold to ReidheadBrothers. Miscellaneouscosts for sale preparation and interest charges (Subparagraph(a) and (d)) are include in the final calculation. REMAINING TIMBER At the time of default the contract value of the timber at termination was: Unreleased Payment Units (2A & 3A) ~ecies PP-Sawtimber DF-Sawtimber ES -Sawtimber Volume 1,154 MBF 40 MBF 24 MBF Rates ~ Termination $249.95/MBF $ 62.82/MBF $ 71.17/MBF $Value $ 288,442.30 $ 2,512.80 $ 1.708.08 $292,663.18

REMAINING CONTRACT VALUE @ TERJVIINATION (CCV)

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MISCELLANEOUS COSTS: (M~SC$) (a) Cost of Resale The O.D. Ridge sale is an older sale and had previously been remarkedin 1999. However,there was a need to recruise the sale to accurately determinethe remainingvolumeprior to reoffer. Thefollowing costs represent the cost ofrecruising the sale as well as preparing a revised appraisal and a new contract packagefor offer. Cruising, Vehicle, Supplies, Paint and Data Entry Costs for Re-cruise of Payment Units 2A and 3A: 4- GS-5 Marker/Cruisers Paint and Supplies: 66.25 days x $143.00/day $ 9,473.75 $ 124.40

Data Entry and Cruise Design: 2.75 days x $202.00/day GS-9Presale Forester Vehicle Costs 1056 Miles x $0.35/mile= Subtotal, Field Preparationfor Resale Preparation of Appraisal Report, Prospectus and Advertisement: Forester GS-9 Timber Resource Clerk GS-7 Total Sale Package Preparation: Presale Forester GS-9 Contracting Officer GS-12 District Timber Staff GS-I 1 Misc. Costs: Mailing, Printing Costs, Legal Ads, Subtotal Total Cost for Appraisal and Contract Package Preparation 2 days@$202.00/day i days@$270.00/day 2 days@$260.00/day 2 days@$202.00/day 2 days@$180.OO/day

$ 555.50 $ 369.60 $10,523.25

$ 404.00 $ 360.00 $ 764.00

$ 404.00 $ 270.00 $ 520.00 $I10.00 $ 1,304.00 $ 2,068.00

TOTAL I~SALE COSTS:

$12,591.25

b) Increased Purchaser Credit None (c) Costs for Failure to Cut Individual Trees on Cut-Over Area:

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None (d) Interest on Remaining Contract Value due to delay in receipt of stumpagepayments: Per CT9.4-Failureto Cut (4/82), "interest will be chargedfor the total number months,or portions of thereof fromTerminationDate until mid-point of the contract resale period, less any time in excess of one year neededto makethe resale." Interest is chargedat the current rate being paid for borrowing by the United States (as calculated and published by the Treasury Departmentin TFRM 6-8020-20). The current interest rate in effect as of January, 2001is 6 %per annum. sale wassold on July 11, 2001 The and the reoffered sale had a termination date of December 2003. 31, Termination Date: January 9, 2001 Re-sale Termination Date: December31, 2003 Therefore: 2001 1/9 through 12/31 = 356 days 365 days 2002 I/I through 12/31 = 2003 I/I through 12/31 = 365 da2~ Total Days: = 1086 days + 2 = 543 days of interest (D) Unpaid Contract Value at Termination Date: $292,663.18 I = CCV*.06*(D/365) = $292,663.18 *.06* (543/365) = $ 26,123.20

(e) Increased RegenerationCosts: None CALCULATION OF RESALE VALUE: In accordance with provision CT9.4and Forest Service Handbook (FSH) 2409.22, Section 62.3, appraisal is done at the time of termination of the sale and is based uponthe remainingcontract volumeand the original appraisal conditions. The only value whichhas been updated is the Quality Adjustment value for the included timber because of significant changes in the formulas since the original sale was sold. Appraisal Bulletin Number CY01, 1st Quarter (January) wasused 01, determinethe reappraisedvalue of the sale: Theresults are as follows: _Species PP-Sawtimber DF-Sawtimber ES-Sawtimber Volume 1,154 MBF 40 MBF 24MBF Predicted Bid Rate (Line 28) $387.26/MBF $132.44/MBF $132.44/MBF Total Value $ 446,898.04 $ 5,297.60 $ 3,178.56 $ 455,374.20

TOTAL REAPPRAISED VALUE @ TERMINATION (AppV)

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A)

Calculation of Final Damages: Volume and Contract Value, remaining timber: a. On area not cut over Sawtimber (ALL) Roundwood b. On area cut over Sawtimber Pulpwood

VOLUME

VAL~

1,218 MBF 0 0 0

$ 292,663.18 $ 0.00 $ 0.00 $ 0.00 $ 292,663.18 $ 0.00 $ 292,663.18 $ $ $ $ $ $ $ 0.00 10.523.25 0.00 26,123.20 2.068.00 0.00 38,714.45 331,377.63

TOTAL REMAINING TIMBER

Sawtimber 1,218 MBF Pulpwood 0.001 TOTAL

°

3. 4. 5. 6. 7. 8. B)

Liquidated Damages Cost of Resale (Field Preparation Only) Cost of CompletingContractual Requirements Interest on remainingcontract value Other Damages(Office Prep of Resale Package) Less Purchaser Credit that HAS been earned: NOT SUBTOTAL Maximum Potential Damages

Calculation of Resale Value: (Use the Predicted Bid Value, Line 28, of the appraisal) 1. Predicted High Bid Appraisal value at termination: $ $ $ $ $ Sub-Total 2. Actual Bid Value of Resale 3. Resale Value 455,374.20 446,898.04 5,297.60 3.178.56 0.00

PP-Sawtimber 1,154 MBF@ $387.26/MBF DF-Sawtimber 40 MBF @ $132.44/MBF ES-Sawtimber 24MBF @ $132.44/MBF a) AddRemainingEffective Purchaser Credit

$ 455t374.20 $ 81.263.20 $ 455.374.20

(RESALE VALUEIS THE LARGEROF THE APPRAISAL SUB-TOTAL OR THE ACTUALBID VALUEOF THE RESALE)

C)

Calculation of Damages: 1, 2. 3. 4. 5, 6. Maximum Potential Damages(AS) Resale Value (B3) Damages(1-2) Unobligated Cash on Account Damages Due Government Refund Due Purchaser $ 331.377.63 $ 455.374.20 $ (123.986.57) $ 0.00 $ 0.00 $ 0.00

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FENAL DEFAULTDAMAGE CALCULATIONS SAGENAW-KENNEDY TIMBER SALE CONTRACT 01-006585 NO. USDAFOREST SERVICE KA[BABNATIONAL FOREST

The Saginaw-Kennedy Timber Sale was cancelled by the Regional Forester, Eleanor S. Towns,on January 9, 2001, for failure to remedy breach pursuant to special contract provision CT9.3 - Breach. As directed by the RegionalForester and in accordancewith Forest Service policy whena timber sale contract is terminated before completion, the Contracting Officer must determine if the United States has been damaged 0?SM 2453.5). Danlagesdue the United States for Purchaser's failure to cut and removeincluded timber are outlined in contract provision CT9.4-- Failure to Cut. TheSaginaw-Kennedy timber sale was never operated during the life of the contract with the exception of the completionof all specified road construction/reconstruction. All purchaser credit was earned and posted to the timber sale statement of account ($14,480) and a total of $5,075.53was subsequentlytransferred another timber sale. Athe time of temaination, the remainingvolnnae of included timber on the SaginawKennedytimber sale was 2268 CCFofsawtimber and 1658 CCFofroundwood. The current contract value at temaination was$142,593.20.The sale wassold as a Flat Rate sale. Therewas a total of $9,764.47of Effective Purchaser Credit (EPC)remainingon the sale. Anappraisal of the remainingtimber at the time termination, using the standard Forest Service method use at that time and the conditions of the original in contract, resulted in an appraised value of $35,071.58. Based on procedures and applicable costs described in provision CT9.4, the following outlines the calculation of damages the United States for default of the Saginaw-Kennedy due timber sale contract. The Saginaw-Kennedy timber sale was not re-offered for sale following the default. Therefore, no miscellaneous costs for sale preparationor interest charges (subparagaph and (d)) are included in the final calculation. (a) REMAINING TIMBER At the time of default the contract value of the timber at temainationwas: Unreleased PaymentUnits (All) .~pecies PP-Sawtimber PP Roundwood Volume 2268 CCF 1658 CCF Rates @Termination $56.00/CCF $ 9.40/CCF SValue $127,008.00 $ 15,585.20 $142.593.20

REMAINING CONTRACT VALUE@ TERMINATION (CCV)

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MISCELLANEOUS COSTS: (1V[ISC$) (a) Cost of Resale There wasno re-offer or resale of the Saginaw-Kennedy timber sale and, therefore, there are no associated costs of resale attributable to the damage calculatio