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This report reviews the types of contracts used in the management of public forests. Agreements for forest utilization are analysed along with contracts for the acquisition of goods and services. The study illustrates the importance of an effective institutional and legal framework. The key elements to consider when awarding contracts are detailed, along with valuation, administration and ensuring the terms of the contract are fulfilled. Special attention is given to the importance of awarding contracts through a transparent and competitive process.
The Department of Agriculture's Forest Service and the Department of the Interior's Bureau of Land Management (BLM) have stewardship contracting authority, which allows the agencies to trade goods -- such as timber -- for services (e.g., thinning forests or rangelands) that the agencies would otherwise pay for with appropriated dollars, and to enter into stewardship contracts lasting up to 10 years. The authority is set to expire in 2013. This report determines: (1) the extent to which the agencies are using stewardship contracting; and (2) what successes and challenges the agencies have experienced in using it. In doing so, the auditor assessed agency data, reviewed project files, and visited projects in numerous locations. Illus.