Forest Service Timber Sales Program: Questionable Need for Contract TermExtensions and Status of Efforts to Reduce Costs

摘要

This statement is provided to record observations on two distinct issuesconcerning the timber sales program of the Department of Agriculture's Forest Service. The first relates to work performed at the request of Representative Vic Fazio and involves a December 1990 regulation that allows for 1-year extensions in the length of timber sales contracts in response to drastic reductions in the prices for wood products. Representative Fazio has agreed to sharing the conclusions and recommendations on this work. This statement completes the work for him. The second issue, which has been examined at the request of this Subcommittee, is the status of efforts by the Forest Service to respond to a directive in its fiscal year 1991 appropriations act to reduce costs in its timber sales program. In summary, regarding the first issue it is believed that before issuing the final regulation in December 1990, the Forest Service did not thoroughly evaluate the costs and benefits to the government of allowing purchasers to postpone carrying out timber sales contracts and making payments to the federal government. -BKA.