Skewed Bidding Presents Costly Problems for the Forest Service Timber Sales Program
RCED-83-37
Published: Feb 09, 1983. Publicly Released: Feb 15, 1983.
Skip to Highlights
Highlights
GAO was requested to examine the use of skewed bids on Forest Service timber sales. Skewed bidding occurs when a bidder in a multispecies sale loads most of the bid value on a single tree species and offers the minimum price for the other species. GAO reviewed timber sales in the Forest Service's three western regions where multispecies sales are common and skewed bidding occurs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Forest Service to control the use of skewed bids on future timber sales. In the short term, the Forest Service could adopt a bid premium distribution procedure, whereby the total bid premium on a timber sale would be spread among the species offered for sale in proportion to the volumes and values of the individual species. In the long term, the Forest Service could require adoption of the fixed-price, lump-sum, tree measurement sales method once industry's concerns about this method are resolved to the Forest Service's satisfaction. |
Closed – Implemented
Department of Agriculture-revised regulations to control skewed bidding were published in the Federal Register on November 6, 1987, requesting comments by January 5, 1988. The Forest Service issued final regulations on July 7, 1988.
|
| Department of Agriculture | The Secretary of Agriculture should require the Forest Service to prohibit logging on a species-by-species basis on skewed bid sales to reduce the adverse effects of past skewed sales. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
Full Report
Office of Public Affairs
Topics
Federal procurement policyForest managementNational forestsQuestionable procurement chargesSales contractsSolicitation specificationsTimber salesSpeciesBiddersBidding