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The protesters
contend that considering the costs of processing the timber at
large business mills in conducting each appraisal “inflated” the
appraised value because this analysis does not take into account
that the small business processing mills are located farther
away from the sale location than the large business mills, and
therefore small businesses would have higher hauling costs than
were accounted for in the appraisal. The protesters argue that
because the timber sales were set aside for small businesses,
and small businesses are prohibited from reselling more than 30
percent of the timber to large businesses, the Forest Service’s
use of the estimated costs based on the use of large business
mills for more than 30 percent of the timber volume in
developing the appraisal was improper. The protesters argue that
the agency’s use of large business data for all of the timber
volume constitutes a violation of the Small Business Act, the
NFMA, implementing regulations, and Forest Service policies.
New As to the NFMA, that Act authorizes the Forest Service,
under rules and regulations prescribed by the Secretary of
Agriculture, to sell “at not less than appraised value, trees,
portions of trees, or forest products located on National Forest
System lands.” 16 U.S.C. sect. 472a(a); 36 C.F.R sect. 223.60.
This requirement for an appraisal is to ensure that the public
receives fair value from the sale of timber. American Forest
Prods. Co., AGBCA No. 79-170-1, Oct. 18, 1984, 85-1 BCA para.
17,720 at 88,459. Contrary to the protesters’ arguments, neither
the NFMA, implementing regulations, nor Forest Service policies
require that appraisals take into account that a particular
acquisition is set aside for small businesses.[5] Thus, the
Forest Service was not required by the NFMA or its implementing
regulations to create a separate or different appraisal method
for small business set-aside timber sales in order to encourage
small business sales. (Poston
Logging; Shasta Green, Inc; Sierra Cedar Products; Trinity River
Lumber Company; Freres Lumber Co., Inc., B-310081; B-310275;
B-310290; B-310370; B-310370.2; B-310371; B-310373; B-310467;
B-310470, November 13, 2007.) (pdf) |
