Timber Sale Bond - USDA Forest Service in All States
Table of Contents
Brief Summary
Win a National Forest timber sale and the Forest Service will want a performance bond in place before you start cutting. A surety bond lets you meet that requirement without locking up cash or Treasury securities for the life of the contract, and you can ask to have it reduced as the sale is harvested.
Under 36 CFR 223.35, a Forest Service timber sale contract may require the purchaser to furnish a performance bond. The amount is not set by regulation. It is stated in the sale prospectus under 36 CFR 223.83(a)(14) and written into the contract, item A17 on the standard FS-2400-6 form. Cash or United States securities, and approved letters of credit, can stand in for the surety bond.
We can help with all All States bonds!
How to Apply for a Timber Sale Bond:
- Read the sale prospectus for the bid guarantee, downpayment and performance bond amounts.
- Line up surety capacity before bid opening.
- Get the contract's A17 amount and the purchaser name exactly as awarded.
- Deliver the executed performance bond to the contracting officer with the signed contract.
- Request a bond reduction in writing under B9.11 as harvest progresses.
Detailed Information About the All States Timber Sale Bond:
The amount comes from your sale, not a rate table
There is no single Forest Service timber bond amount. Each sale prospectus must list the amount of performance bond required, under 36 CFR 223.83(a)(14). The same prospectus also lists the bid guarantee that must go in with each bid and the downpayment due from the winning bidder. Read the prospectus before you bid so the bond is lined up by award.
What the performance bond covers
On the standard FS-2400-6 timber sale contract, clause B9.1 has the purchaser deliver and maintain a surety bond in the dollar amount stated in A17 as a further guarantee of faithful performance. That covers cutting and removing the timber, required work such as slash disposal and road obligations, and other contract terms. Instead of a surety bond, the purchaser may deposit cash or negotiable United States securities in a Federal Depository, and B9.12 allows approved letters of credit. Any extension of time for completion beyond 1 year needs the surety's consent or a new bond.
You can bring the bond down
Clause B9.11 lets the purchaser ask in writing for the bond to be redetermined. The contracting officer can lower it to no less than remaining obligations, meaning the value of timber still on the sale area, the estimated cost of unfinished work and unpaid billings. During a Forest Service ordered shutdown of more than 30 days, B9.13 allows a temporary reduction, with full restoration within 15 days after the shutdown ends.
A separate payment bond is optional
36 CFR 223.34 requires timber to be paid for before cutting unless the contract allows a payment guarantee. Under B4.3 a purchaser can post a surety bond to guarantee payment and cut down on advance cash deposits. B4.31 allows a blanket bond covering several sales on the same National Forest. Confirm the bond form and the bond approving office with the sale's contracting officer before the bond is issued.
Eligibility and Requirements for an All States Timber Sale Bond:
- Bond penal sum equal to the amount in contract item A17.
- United States, acting through the Forest Service, as obligee.
- Surety consent or a new bond for any extension beyond 1 year.
- Bond maintained until contract obligations and claims are settled.
- Optional payment bond under B4.3 if you want to reduce advance cash deposits.
All States Timber Sale Bond FAQs:
It depends on the sale. The prospectus lists the performance bond amount and the contract states it in item A17.
Yes. B9.1 allows cash or negotiable United States securities in a Federal Depository, and B9.12 allows approved letters of credit.
Yes. Ask the contracting officer in writing under B9.11. The new amount cannot fall below remaining obligations on the sale.
No. The performance bond is under B9.1. A payment bond under B4.3 is optional and guarantees payment for timber cut. Where used, its penal sum stands in lieu of the performance bond for payment purposes.
The surety prices it from the bond amount, your logging experience, financial statements and credit.
