Section ENV.02.23 — Tribal Timber Sale Bid Policy

(a) Purpose. The purpose of this policy is to refine the bidding process for sales of forest products by the Tribe and the BIA. The intent of this Policy is to facilitate the Tribe in obtaining the best possible timber sales, consistent with federal law, while encouraging Tribal loggers to participate in the bidding process in a meaningful manner.

(b) Coverage and Scope.

(1) This Policy applies to the open market sale of standing timber and the tribal forest enterprise sale of standing timber (except for emergency and small lot tribal forest enterprise sales).

(2) Certain federal laws, including 25 C.F.R. Ch. 163, or other contracts and grants may supersede or contain provisions that are inconsistent with this Policy. If the federal law/contract/grant provisions are mandatory, those provisions of the contract/grant contract shall control, and the remaining portions of this Policy shall be adhered to.

(3) If the Tribal Council has approved a tribal forest enterprise sale of standing timber, then the Tribe reserves the right to have the BIA negotiate the tribal timber sale directly with the Tribe at appraised rates as per 25 C.F.R. 163.13(c).

(4) This Policy does not apply to change orders or change directives, which are added work or services within the general scope of an on-going project.

(5) This Policy does not prohibit the Tribe retracting any invitation for bids.

(1) The Committee shall compile and regularly update a list of Approved Loggers. The Committee shall submit the list of Approved Loggers to Tribal Council by July 1 of every year.

(2) The criteria for determining Approved Loggers include the ability to obtain and maintain comprehensive and worker's compensation insurance, ability to obtain and maintain bonding, experience, reliability, previous references, background/portfolio of the enterprise, technical ability, financial ability, applicable certification and/or licenses, proof of ownership of equipment, tax numbers or other factors the Forestry Committee deems important.

(3) The Committee reserves the right to remove an enterprise from the Approved Logger's list for non-compliance with tribal law and/or their contract.

(4) If the Committee determines that a Tribal Logger is ineligible to be an Approved Logger, the Tribal Loggers must be notified in writing regarding what the specific deficiencies are and/or what must be corrected to gain or maintain status.

(d) Tribal Logger Preference.

(1) The Committee shall apply preference when an Approved Tribal Logger's submitted bid at least meets the BIA's or Tribe's minimum bid rates.

(2) The Approved Tribal Logger's submitted bid is within 10% of the highest submitted bid.

(3) An Approved Tribal Logger whose bid is within 10% of the highest submitted bid, shall be required to match the highest submitted bid, with the understanding that the Tribe will rebate the matched amount (with no interest) upon successful completion of the timber sale.

(A) The BIA may require that the Approved Tribal Logger, in writing or fax, affirmatively agree to match the highest submitted bid by 3pm, the next business day.

(4) For example:

Timber Company ABC bids $100,000

Tribal Logger bids #1 $ 92,000

Tribal Logger bids #2 $ 94,000

Tribal Logger bids #3 $ 87,000

Tribal Logger #3 bid is too low to be considered for preference. The bid is below the 10% maximum difference to be considered for the sale.

Tribal Logger bid #1 is within the 10% maximum difference. However, Tribal Logger bid #2 is the higher bid between the eligible Tribal Loggers. Therefore, Tribal Logger Bid #1 does not receive the timber sale contract.

Tribal Logger bid #2 is the highest preference bid with the 10% maximum difference. #2 would be required to match the $100,000 bid, but will receive a rebate of $6,000 upon the successful completion of the timber sale.

Timber Company ABC would not get the timber sale contract because Tribal Logger bid #2 would be awarded the timber sale contract. Because Tribal Logger #2's bid is within 10% of the highest bid (Timber Company ABC), and it would match the $4,000 difference, Timber Company ABC and Tribal Logger #2 are essentially bidding at $100,000.

(5) Preference shall not be adhered to if there are no Approved Tribal Loggers' bids within 10% of the highest bid.

(6) Although this Policy is intended to aid Tribal Loggers in obtaining timber sales contracts, no legal rights or remedies are created by this Policy.

(7) Applicant(s) for Indian preference will be required to provide certification of membership from the Tribe.

(8) An applicant seeking preference has the burden to demonstrate that the enterprise is eligible for preference, by providing proof of at least 51% ownership at the time of bid submission.

(e) Compliance.

(1) The Forestry Department and Committee are bound by this Tribal Timber Bid Sale Policy and shall fully comply with all terms of this Policy. The Forestry Department and Committee shall not divide projects, or take other actions to avoid being subject to this Policy.

(2) The Tribe's Legal Department shall review all contracts before the Tribe signs the contract.