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                                                       Calendar No. 406
113th Congress                                                   Report
                                 SENATE
 2d Session                                                     113-179

======================================================================



 
        STEWARDSHIP CONTRACTING REAUTHORIZATION AND IMPROVEMENT

                                _______
                                

                  June 2, 2014.--Ordered to be printed

                                _______
                                

   Ms. Landrieu, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                         [To accompany S. 1300]

    The Committee on Energy and Natural Resources, to which was 
referred the bill (S. 1300) to amend the Healthy Forests 
Restoration Act of 2003 to provide for the conduct of 
stewardship end result contracting projects, having considered 
the same, reports favorably thereon with amendments and 
recommends that the bill, as amended, do pass.
    The amendments are as follows:
    1. On page 2, line 13, strike ``Until September 30, 2023, 
the'' and insert ``The''.
    2. On page 7, line 2, insert ``and section 2(a)(1) of the 
Act of July 31, 1947 (commonly known as the `Materials Act of 
1947') (30 U.S.C. 602(a)(1))'' after ``472a)''.
    3. On page 7, line 2, insert ``and the Director'' after 
``Chief''.
    4. On page 11, strike lines 11 through 14 and insert the 
following:
    (c) Conforming Amendment.--
          (1) In general.--Section 347 of the Department of the 
        Interior and Related Agencies Appropriations Act, 1999 
        (16 U.S.C. 2104 note; Public Law 105-277) is repealed.
          (2) Effect of repeal.--Notwithstanding the amendment 
        made by paragraph (1), nothing in this Act or an 
        amendment made by this Act invalidates or otherwise 
        affects any stewardship contract entered into by the 
        Chief of the Forest Service or the Director of the 
        Bureau of Land Management that is in effect on the date 
        of enactment of this Act.

                                Purpose

    The purpose of S. 1300 is to amend the Healthy Forests 
Restoration Act of 2003 to provide for the conduct of 
stewardship end result contracting projects.

                          Background and Need

    Stewardship end result contracting is a flexible set of 
contracting tools designed to help federal land management 
agencies and their partners restore public lands and provide 
local community benefits. Congress created a pilot stewardship 
contracting program for the Forest Service in the late 1990s. 
In the Consolidated Resolution, 2003 (section 323 of Public Law 
108-7), Congress significantly expanded stewardship 
contracting. Congress extended the authority to both the Forest 
Service and Bureau of Land Management (BLM) and lifted the 
limit on the number of contracts the agencies could enter into 
over a 10-year period until September 30, 2013.
    Stewardship contracting allows the BLM and the Forest 
Service to address the total ecological needs of an area using 
any combination of timber sale contracts, agreements, 
integrated resource contracts and service contracts. The 
agencies can enter into multi-year contracts for up to ten 
years and work with communities to design and implement the 
project with an added benefit of bringing jobs into the local 
community. Furthermore, the agencies can use the value of any 
products removed by the restoration or maintenance work to 
offset the costs of the work. Stewardship contracting has 
become an increasingly important means for the Forest Service 
and BLM to undertake complex, long-term projects that seek to 
restore ecosystems, reduce fire hazards, strengthen or develop 
the infrastructure to utilize restoration byproducts, and 
create local economic benefits. S. 1300 would permanently 
reauthorize the program for the entire United States, with a 
few modifications to the existing program as discussed below.
    S. 1300 would permanently reauthorize stewardship 
contracting authority for the Forest Service and Bureau of Land 
Management. S. 1300 would make two principal modifications to 
the existing stewardship contracting program. First, the 
legislation would allow excess receipts from the stewardship 
contract to be used to pay any agency balances on cancellation 
ceilings, which would also be authorized to be paid in stages 
that are economically or programmatically viable rather than 
upfront as is currently required. This change would be 
consistent with how the Department of Defense handles 
cancellation ceilings for multiyear acquisition contracts. 
Second, the bill would modify the fire liability requirements 
for stewardship service contracts to match those currently in 
place for timber contracts. Timber contracts currently are able 
to cap the fire liability assumed by the contractor for fires 
caused by operations, assuming no gross negligence, but no such 
authority exists for service contracts, which many bidders say 
may make contracts uneconomical. S. 1300 also includes a 
provision that requires the Chief of the Forest Service and 
Director of the Bureau of Land Management to offset any direct 
spending using any amounts that may be available for the 
applicable fiscal year.

                          Legislative History

    S. 1300 was introduced by Senator Flake, McCain, Crapo, 
Risch, and Heller on July 16, 2013. Senators Baucus, Barrasso, 
Heinrich, Enzi, Tester, and Udall of New Mexico were 
subsequently added as cosponsors. A hearing was held by the 
Subcommittee on Public Lands, Forests, and Mining on July 30, 
2013 (S. Hrg. 113-85). At its business meeting on December 19, 
2013, the measure was reported favorably with amendments.
    Similar legislation was also introduced during the 113th 
Congress by Senator Reid (section 8204 of S. 10, the 
Agriculture Reform, Food, and Jobs Act of 2013), Senator Udall 
of Colorado (S. 816, the Stewardship End Result Contracting 
Project Act), Senator Bennet (S. 849, the Permanent Stewardship 
Contracting Authority Act of 2013), and Senator Stabenow 
(section 8204 of S. 954, the Agriculture Reform, Food, and Jobs 
Act of 2013), all of which except S. 816 were referred to the 
Committee on Agriculture, Nutrition, and Forestry. The 
Committee on Agriculture, Nutrition, and Forestry reported S. 
954 on September 4, 2013 (S. Rept. 113-88).
    Similar legislation was subsequently enacted as section 
8205 of the Agricultural Act of 2014, Public Law 113-79 (H.R. 
2642) on February 7, 2014. That legislation did not include the 
cancellation ceiling modifications to stewardship contracting.

                        Committee Recommendation

    The Senate Committee on Energy and Natural Resources, in 
open business session on December 19, 2013, by a voice vote of 
a quorum present, recommends that the Senate pass S. 1300, if 
amended as described herein.

                          Committee Amendments

    During its consideration of S. 1300, the Committee adopted 
four amendments. The first strikes the provision terminating 
the program on September 30, 2023. The second and third clarify 
that the Director of the Bureau of Land Management, as well as 
the Chief of the Forest Service, may enter into stewardship 
contracts. The fourth holds harmless any existing stewardship 
contracts that remain in effect and were issued pursuant to 
previous authority.

                      Section-by-Section Analysis

    Section 1 contains the short title, the ``Stewardship 
Contracting Reauthorization and Improvement Act.''
    Section 2 amends Title VI of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 6591) and inserts a new 
section, Section 602, ``Stewardship End Result Contracting 
Projects.''
    Section 602(a) establishes definitions for the section.
    Subsection (b) gives the Chief of the Forest Service and 
the Director of the Bureau of Land Management the authority to 
enter into stewardship contracts permanently.
    Subsection (c) authorizes certain land management goals of 
a stewardship contract.
    Section 602(d)(1) establishes certain legal perimeters for 
stewardship contracts, including the awarding of contracts on a 
best-value basis. Paragraph (2) is a change in existing law 
which gives the Secretary of Agriculture discretion to consider 
stewardship contracts as a contract for the sale of property 
under such terms as the Secretary may prescribe without regard 
to any other provision of law. Paragraph (3) sets the terms of 
stewardship contracts to be no longer than 10 years. Paragraph 
(4) authorizes the use of goods for services in stewardship 
contracts and establishes methods of appraising the value of 
timber of other forest products. Paragraph (5) allows excess 
receipts from the stewardship contract to be used to pay any 
agency balances on cancellation ceilings, which would also be 
authorized to be paid in stages that are economically or 
programmatically viable rather than upfront as is currently 
required. Paragraph (6) exempts stewardship contracts from 
subsections (d) and (g) of section 14 of the National Forest 
Management Act of 1976 (16 U.S.C. 472a). Paragraph (7) 
authorizes the Secretary of the Interior or the Secretary of 
Agriculture to determine the appropriate contracting officer to 
enter into stewardship contracts, notwithstanding any other 
provision of law. Paragraph (8) requires the Chief of the 
Forest Service and the Director of the Bureau of Land 
Management, within 90 days of enactment, to issue requirements 
that would modify the fire liability requirements for 
stewardship contracts to match those currently in place for 
timber contracts.
    Subsection (e) authorizes the Chief of the Forest Service 
and the Director of the Bureau of Land Management to collect 
monies from stewardship contracts, but the collection is to be 
a secondary objective in negotiating a contract.
    Subsection (f) authorizes the Chief of the Forest Service 
to collect deposits from a contractor covering the costs of 
removal of timber or other forest products, notwithstanding the 
fact that the contractor did not harvest the timber.
    Subsection (g) authorizes the Chief of the Forest Service 
and the Director of the Bureau of Land Management to require 
performance and payment bonds.
    Subsection (h) requires the Chief of the Forest Service and 
the Director of the Bureau of Land Management to establish a 
multiparty monitoring and evaluation process.
    Subsection (i) requires the Chief of the Forest Service and 
the Director of the Bureau of Land Management, within one year 
of enactment, to submit an annual report to Congress on the 
status of the stewardship contracting program.

                   Cost and Budgetary Considerations

    The following estimate of costs of this measure has been 
provided by the Congressional Budget Office:

S. 1300--Stewardship Contracting Reauthorization and Improvement Act

    S. 1300 would permanently reauthorize the Forest Service 
and the Department of the Interior to enter into special 
contracts known as stewardship contracts. Because similar 
provisions were enacted in Public Law 113-79, the Agriculture 
Act of 2014, those provisions of S. 1300 would have no impact 
on the budget.
    The bill also would allow the Forest Service and the 
Department of the Interior to determine the amount of 
appropriated funds they reserve to pay for the costs of 
canceling certain stewardship contracts. Under the 
Antideficiency Act, federal agencies cannot spend funds in 
excess of amounts specifically made available to the agency. 
Because, under S. 1300, the agencies might reserve insufficient 
funds to cover all the costs of canceled contracts, the bill 
would effectively allow them to obligate sums greater than the 
appropriations they have available when they enter into the 
contracts--thus creating direct spending authority. However, 
based on information provided by the Forest Service regarding 
the total amount of potential cancellation costs for all 
stewardship contracts entered into over the 2004-2013 period, 
CBO estimates that enacting this provision would have at most a 
negligible impact on direct spending.
    S. 1300 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Jeff LaFave. The 
estimate was approved by Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S. 1300.
    The bill is not a regulatory measure in the sense of 
imposing Government-established standards or significant 
economic responsibilities on private individuals and 
businesses.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S. 1300, as ordered reported.

                   Congressionally Directed Spending

    S. 1300, as reported, does not contain any congressionally 
directed spending items, limited tax benefits, or limited 
tariff benefits as defined in rule XLIV of the Standing Rules 
of the Senate.

                        Executive Communications

    The testimony provided by Forest Service and Bureau of Land 
Management at the July 30, 2013, Subcommittee on Public Lands, 
Forests, and Mining hearing on S. 1300 follows:

   Statement of Leslie Weldon, Deputy Chief, National Forest System, 
               Forest Service, Department of Agriculture

    Mr. Chairman and Members of the Committee, thank you for 
the opportunity to present the views of the U.S. Department of 
Agriculture (USDA) regarding S. 1300, the ``Stewardship 
Contracting Reauthorization and Improvement Act.'' The Forest 
Service supports reauthorization of stewardship contracting and 
could support the bill if amended.
    Stewardship contracting is a critical tool that allows the 
Forest Service to more efficiently complete restoration 
activities. Reauthorizing stewardship contracting authority and 
expanding the use of this tool are crucial to our ability to 
restore landscapes collaboratively. The authority allows the 
government to carry out restoration work at a reduced cost by 
offsetting the value of the services received with the value of 
forest products removed. In fiscal year 2012, approximately 25 
percent of all timber volume sold on National Forest System 
lands was under a stewardship contract. The stewardship 
contracting authority has proved to be a valuable tool in many 
locations to implement restoration activities and meet multiple 
land management objectives including hazardous fuels reduction, 
wildlife habitat improvement, forest health improvement, and 
non-native invasive plant species control.
    S. 1300 would repeal the existing stewardship contracting 
authority in section 347 of the Department of the Interior and 
Related Agencies Appropriations Act, 1999 and replace it with a 
provision that would be added to the Healthy Forests 
Restoration Act of 2003. That provision would reauthorize 
stewardship contracting for 10 years and provide authority that 
is substantively the same as the existing authority with a few 
exceptions. The bill contains new authority that would:
           Clarify the contracting procedure for 
        stewardship contracting by making clear that the 
        various statutes that apply to normal Federal 
        procurement actions do not apply to these activities;
           Modify the requirement to obligate funds to 
        cover any potential cancellation or termination costs 
        to allow the obligation of funds in economically or 
        programmatically viable stages, providing advance 
        notification of Congress and OMB;
           Require the Chief and Director to modify the 
        fire liability provisions for all stewardship contracts 
        and agreements to mirror the fire liability provisions 
        currently contained in the Forest Service Integrated 
        Resource Timber Contract and Forest Service Timber Sale 
        contracts which limit the contractor's liability for 
        non-negligent fire;
           Allow the Chief and the Director to use 
        excess receipts to satisfy outstanding liabilities for 
        cancelled stewardship agreements and contracts; and
           Allow the Chief and Director to offset 
        spending on stewardship contracting using any 
        additional amounts that may be made available to the 
        Chief or the Director for the applicable fiscal year.
    Consistent with the purposes of S. 1300, the Forest Service 
supports efforts to increase the amount of forest restoration 
work on NFS lands. However, the Forest Service would like to 
work with the Committee on several aspects of the language 
related to the offset for stewardship contracts and agreements 
in this bill as well as to rethink provisions that would waive 
current acquisition laws and practices and not require 
potential termination and cancellation costs to be fully 
funded.
    I want to thank the Committee for its interest, leadership, 
and commitment to stewardship contracting, our national forests 
and their surrounding communities. This concludes my prepared 
statement and I would be pleased to answer any questions you 
may have.
                              ----------                              


    Statement of Ned Farquhar, Deputy Assistant Secretary, Land and 
            Minerals Management, Department of the Interior

    Thank you for the opportunity to testify on S. 1300, the 
Stewardship Contracting Reauthorization and Improvement Act. 
This legislation would provide for the reauthorization of 
stewardship contracting authority for the Bureau of Land 
Management and the U.S. Forest Service. The Department supports 
the reauthorization of stewardship contracting authority, would 
support this legislation if amended, and would appreciate the 
opportunity to work with the sponsor to address a few technical 
concerns.


                               background


    Stewardship contracting authority was established for the 
BLM in the FY 2003 Omnibus Appropriations Act and expires at 
the end of FY 2013. The authority allows the BLM to award 
contracts for forest health and restoration treatments, 
including hazardous fuels reductions, for a period of up to ten 
years and to use the value of timber or other forest products 
removed as an offset against the cost of services received. The 
BLM has enjoyed many successes in using stewardship contracting 
authority, thereby achieving goals for forest and woodland 
restoration and conducting both hazardous fuels reduction and 
habitat restoration treatments. In addition, stewardship 
contracts create jobs and revenue growth for local communities 
and help to protect local communities from wildland fire. From 
2003 through 2012, the BLM entered into over 400 stewardship 
contracts on approximately 108,000 acres of BLM-managed lands. 
The BLM's future strategy for stewardship projects includes 
increasing the size and duration of these projects.


                                s. 1300


    S. 1300 extends until 2023 the authorization of stewardship 
contracting to achieve land management goals. The BLM supports 
stewardship contracting authority, as it provides the BLM with 
needed flexibility to work with contractors to achieve the 
agency's land and forest health goals, and saves taxpayer 
resources because the value of forest products removed are used 
to offset the cost of the management action. In addition, 
changing the requirement to obligate cancellation costs upfront 
is inconsistent with budgeting principles and would understate 
the Government's liability under the contract. Finally, the 
Administration has concerns about broad waivers of long-
standing acquisition laws.


                               conclusion


    The Department looks forward to working with the sponsor 
and the Subcommittee on technical amendments. Thank you again 
for the opportunity to testify, and I would be glad to answer 
any questions.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S. 1300 as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                HEALTHY FORESTS RESTORATION ACT OF 2003


                           PUBLIC LAW 108-148


AN ACT To improve the capacity of the Secretary of Agriculture and the 
Secretary of the Interior to conduct hazardous fuels reduction projects 
  on National Forest System lands and Bureau of Land Management lands 
aimed at protecting communities, watersheds, and certain other at-risk 
    lands from catastrophic wildfire, to enhance efforts to protect 
    watersheds and address threats to forest and rangeland health, 
 including catastrophic wildfire, across the landscape, and for other 
purposes.

           *       *       *       *       *       *       *


                        TITLE VI--MISCELLANEOUS

SEC. 601. FOREST STANDS INVENTORY AND MONITORING PROGRAM TO IMPROVE 
                    DETECTION OF AND RESPONSE TO ENVIRONMENTAL THREATS.

           *       *       *       *       *       *       *


SEC. 602. STEWARDSHIP END RESULT CONTRACTING PROJECTS.

    (a) Definitions.--In this section:
          (1) Chief.--The term ``Chief'' means the Chief of the 
        Forest Service.
          (2) Director.--The term ``Director'' means the 
        Director of the Bureau of Land Management.
    (b) Projects.--The Chief and the Director, via agreement or 
contract as appropriate, may enter into stewardship contracting 
projects with private persons or other public or private 
entities to perform services to achieve land management goals 
for the national forests and the public lands that meet local 
and rural community needs.
    (c) Land Management Goals.--The land management goals of a 
project under subsection (b) may include--
          (1) road and trail maintenance or obliteration to 
        restore or maintain water quality;
          (2) soil productivity, habitat for wildlife and 
        fisheries, or other resource values;
          (3) setting of prescribed fires to improve the 
        composition, structure, condition, and health of stands 
        or to improve wildlife habitat;
          (4) removing vegetation or other activities to 
        promote healthy forest stands, reduce fire hazards, or 
        achieve other land management objectives;
          (5) watershed restoration and maintenance;
          (6) restoration and maintenance of wildlife and fish; 
        or
          (7) control of noxious and exotic weeds and 
        reestablishing native plant species.
    (d) Agreements or Contracts.--
          (1) Procurement procedure.--A source for performance 
        of an agreement or contract under subsection (b) shall 
        be selected on a best-value basis, including 
        consideration of source under other public and private 
        agreements or contracts.
          (2) Contract for sale of property.--A contract 
        entered into under this section may, at the discretion 
        of the Secretary of Agriculture, be considered a 
        contract for the sale of property under such terms as 
        the Secretary may prescribe without regard to any other 
        provision of law.
          (3) Term.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the Chief and the Director 
                may enter into a contract under subsection (b) 
                in accordance with section 3903 of title 41, 
                United States Code.
                  (B) Maximum.--The period of the contract 
                under subsection (b) may exceed 5 years but may 
                not exceed 10 years.
          (4) Offsets.--
                  (A) In general.--The Chief and the Director 
                may apply the value of timber or other forest 
                products removed as an offset against the cost 
                of services received under the agreement or 
                contract described in subsection (b).
                  (B) Methods of appraisal.--The value of 
                timber or other forest products used as an 
                offset under subparagraph (A)--
                          (i) shall be determined using 
                        appropriate methods of appraisal 
                        commensurate with the quantity of 
                        products to be removed; and
                          (ii) may--
                                  (I) be determined using a 
                                unit of measure appropriate to 
                                the contracts; and
                                  (II) may include valuing 
                                products on a per-acre basis.
          (5) Cancellation ceilings.--
                  (A) In general.--The Chief and the Director 
                may obligate funds to cover any potential 
                cancellation or termination costs for an 
                agreement or contract under subsection (b) in 
                stages that are economically or 
                programmatically viable.
                  (B) Notice.--
                          (i) Submission to congress.--Not 
                        later than 30 days before entering into 
                        a multiyear agreement or contract under 
                        subsection (b) that includes a 
                        cancellation ceiling in excess of 
                        $25,000,000, but does not include 
                        proposed funding for the costs of 
                        cancelling the agreement or contract up 
                        to the cancellation ceiling established 
                        in the agreement or contract, the Chief 
                        and the Director shall submit to the 
                        Committee on Energy and Natural 
                        Resources of the Senate and the 
                        Committee on Natural Resources of the 
                        House of Representatives a written 
                        notice that includes--
                                  (I)(aa) the cancellation 
                                ceiling amounts proposed for 
                                each program year in the 
                                agreement or contract; and
                                  (bb) the reasons for the 
                                cancellation ceiling amounts 
                                proposed under item (aa);
                                  (II) the extent to which the 
                                costs of contract cancellation 
                                are not included in the budget 
                                for the agreement or contract; 
                                and
                                  (III) a financial risk 
                                assessment of not including 
                                budgeting for the costs of 
                                agreement or contract 
                                cancellation.
                          (ii) Transmittal to omb.--At least 14 
                        days before the date on which the Chief 
                        and Director enter into an agreement or 
                        contract under subsection (b), the 
                        Chief and Director shall transmit to 
                        the Director of the Office of 
                        Management and Budget a copy of the 
                        written notice submitted under clause 
                        (i).
          (6) Relation to other laws.--Notwithstanding 
        subsections (d) and (g) of section 14 of the National 
        Forest Management Act of 1976 (16 U.S.C. 472a) and 
        section 2(a)(1) of the Act of July 31, 1947 (commonly 
        known as the ``Materials Act of 1947'') (30 U.S.C. 
        602(a)(1)), the Chief and the Director may enter into 
        an agreement or contract under subsection (b).
          (7) Contracting officer.--Notwithstanding any other 
        provision of law, the Secretary or the Secretary of the 
        Interior may determine the appropriate contracting 
        officer to enter into and administer an agreement or 
        contract under subsection (b).
          (8) Fire liability provisions.--Not later than 90 
        days after the date of enactment of this section, the 
        Chief and the Director shall issue for use in all 
        contracts and agreements under subsection (b) fire 
        liability provisions that are in substantially the same 
        form as the fire liability provisions contained in--
                  (A) integrated resource timber contracts, as 
                described in the Forest Service contract 
                numbered 2400-13, part H, section H.4; and
                  (B) timber sale contracts conducted pursuant 
                to section 14 of the National Forest Management 
                Act of 1976 (16 U.S.C. 472a).
    (e) Receipts.--
          (1) In general.--The Chief and the Director may 
        collect monies from an agreement or contract under 
        subsection (b) if the collection is a secondary 
        objective of negotiating the contract that will best 
        achieve the purposes of this section.
          (2) Use.--Monies from an agreement or contract under 
        subsection (b)--
                  (A) may be retained by the Chief and the 
                Director; and
                  (B) shall be available for expenditure 
                without further appropriation at the project 
                site from which the monies are collected or at 
                another project site.
          (3) Relation to other laws.--
                  (A) In general.--Notwithstanding any other 
                provision of law, the value of services 
                received by the Chief or the Director under a 
                stewardship contract project conducted under 
                this section, and any payments made or 
                resources provided by the contractor, Chief, or 
                Director shall not be considered monies 
                received from the National Forest System or the 
                public lands.
                  (B) Knutson-vanderberg act.--The Act of June 
                9, 1930 (commonly known as the ``Knutson-
                Vanderberg Act'') (16 U.S.C. 576 et seq.) shall 
                not apply to any agreement or contract under 
                subsection (b).
    (f) Costs of Removal.--Notwithstanding the fact that a 
contractor did not harvest the timber, the Chief may collect 
deposits from a contractor covering the costs of removal of 
timber or other forest products under--
          (1) the Act of August 11, 1916 (16 U.S.C. 490); and
          (2) the Act of June 30, 1914 (16 U.S.C. 498).
    (g) Performance and Payment Guarantees.--
          (1) In general.--The Chief and the Director may 
        require performance and payment bonds under sections 
        28.103-2 and 28.103-3 of the Federal Acquisition 
        Regulation, in an amount that the contracting officer 
        considers sufficient to protect the investment in 
        receipts by the Federal Government generated by the 
        contractor from the estimated value of the forest 
        products to be removed under a contract under 
        subsection (b).
          (2) Excess offset value.--If the offset value of the 
        forest products exceeds the value of the resource 
        improvement treatments, the Chief and the Director 
        shall--
                  (A) use the excess to satisfy any outstanding 
                liabilities for cancelled agreements or 
                contracts; or
                  (B) if there are no outstanding liabilities 
                under subparagraph (A), apply the excess to 
                other authorized stewardship projects.
    (h) Monitoring and Evaluation.--
          (1) In general.--The Chief and the Director shall 
        establish a multiparty monitoring and evaluation 
        process that accesses the stewardship contracting 
        projects conducted under this section.
          (2) Participants.--Other than the Chief and Director, 
        participants in the process described in paragraph (1) 
        may include--
                  (A) any cooperating governmental agencies, 
                including tribal governments; and
                  (B) any other interested groups or 
                individuals.
    (i) Reporting.--Not later than 1 year after the date of 
enactment of this section, and annually thereafter, the Chief 
and the Director shall report to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Natural 
Resources of the House of Representatives on--
          (1) the status of development, execution, and 
        administration of agreements or contracts under 
        subsection (b);
          (2) the specific accomplishments that have resulted; 
        and
          (3) the role of local communities in the development 
        of agreements or contract plans.
                              ----------                              


  DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES APPROPRIATIONS ACT, 
                                  1999


                           PUBLIC LAW 105-277


  AN ACT Making omnibus consolidated and emergency appropriations for 
fiscal year ending September 30, 1999, and for other purposes

           *       *       *       *       *       *       *


            DIVISION A--OMNIBUS CONSOLIDATED APPROPRIATIONS

    That the following sums are appropriated out of any money 
in the Treasury not otherwise appropriated, for the several 
departments, agencies, corporations and other organizational 
units of the Government for the fiscal year 1999, and for other 
purposes, namely:

SEC. 101.

           *       *       *       *       *       *       *


    (e) For programs, projects or activities in the Department 
of the Interior and Related Agencies Appropriations Act, 1999, 
provided as follows, to be effective as if it had been enacted 
into law as the regular appropriations Act:

           *       *       *       *       *       *       *


TITLE III--GENERAL PROVISIONS

           *       *       *       *       *       *       *


[SEC. 347. STEWARDSHIP END RESULT CONTRACTING DEMONSTRATION PROJECT.

    [(a) In General.--Until September 30, 2014, the Forest 
Service and the Bureau of Land Management, via agreement or 
contract as appropriate, may enter into stewardship contracting 
projects with private persons or other public or private 
entities to perform services to achieve land management goals 
for the national forests and the public lands that meet local 
and rural community needs.
    [(b) Land Management Goals.--The land management goals of a 
project under subsection (a) may include, among other things--
          [(1) road and trail maintenance or obliteration to 
        restore or maintain water quality;
          [(2) soil productivity, habitat for wildlife and 
        fisheries, or other resource values;
          [(3) setting of prescribed fires to improve the 
        composition, structure, condition, and health of stands 
        or to improve wildlife habitat;
          [(4) removing vegation or other activities to promote 
        healthy forest stands, reduce fire hazards, or achieve 
        other land management objectives;
          [(5) watershed restoration and maintenance;
          [(6) restoration and maintenance of wildlife and fish 
        habitat; and
          [(7) control of noxious and exotic weeds and 
        reestablishing native plant species.
    [(c) Agreements or Contracts.--
          [(1) Procurement procedures.--A source for 
        performance of an agreement or contract under 
        subsection (a) shall be selected on a best-value basis, 
        including consideration of source under other public 
        and private agreements or contracts.
          [(2) Term.--A multiyear contract may be entered into 
        under subsection (a) in accordance with section 304B of 
        the Federal Property and Administrative Services Act of 
        1949 (41 U.S.C. 254c), except that the period of the 
        contract may exceed 5 years but may not exceed 10 
        years.
          [(3) Offsets.--
                  [(A) In general.--In connection with 
                agreements or contracts under subsection (a), 
                the Forest Service and the Bureau of Land 
                Management may apply the value of timber or 
                other forest products removed as an offset 
                against the cost of services received.
                  [(B) Methods of appraisal.--The value of 
                timber or other forest products used as offsets 
                under subparagraph (A)--
                          [(i) shall be determined using 
                        appropriate methods of appraisal 
                        commensurate with the quality of 
                        products to be removed;
                          [(ii) may be determined using a unit 
                        of measure appropriate to the 
                        contracts; and
                          [(iii) may include valuing products 
                        on a per-acre basis.
          [(4) Relation to other laws.--The Forest Service may 
        enter into contracts under subsection (a), 
        notwithstanding subsections (d) and (g) of section 14 
        of the National Forest Management Act of 1976 (16 
        U.S.C. 72a).
          [(5) Contracting officer.--Notwithstanding any other 
        provision of law, the Secretary of Agriculture and the 
        Secretary of the Interior may determine the appropriate 
        contracting officer to enter into and administer an 
        agreement or contract under subsection (a).
    [(d) Receipts.--
          [(1) In general.--The Forest Service and the Bureau 
        of Land Management may collect monies from an agreement 
        or contract under subsection(a) so long as such 
collection is a secondary objective of negotiating contracts that will 
best achieve the purposes of this section.
          [(2) Use.--Monies from an agreement or contract under 
        subsection (a) may be retained by the Forest Service 
        and the Bureau of Land Management and shall be 
        available for expenditure without further appropriation 
        at the project site from which the monies are collected 
        or at another project site.
          [(3) Relation to other laws.--The value of services 
        received by the Forest Service or the Bureau of Land 
        Management under a stewardship contract project 
        conducted under this section, and any payments made or 
        resources provided by the contractor or the Forest 
        Service or Bureau of Land Management under such a 
        project, shall not be considered to be monies received 
        from the National Forest System or the public lands 
        under any provison of law. The Act of June 9, 1930 (16 
        U.S.C. 576 et seq.; commonly known as the Knutson-
        Vandenberg Act), shall not apply to stewardship 
        contracts entered into under this section.
    [(e) Costs of Removal.--The Forest Service may collect 
deposits from contractors covering the costs of removal of 
timber or other forest products pursuant to the Act of August 
11, 1916 (39 Stat. 462, chapter 313; 16 U.S.C. 490); and the 
next to the last paragraph under the heading ``Forest 
Service.'' under the heading ``Department of Agriculture'' in 
the Act of June 30, 1914 (38 Stat. 430, chapter 131; 16 U.S.C. 
498); notwithstanding the fact that the timber purchasers did 
not harvest the timber.
    [(f) Performance and Payment Guarantees.--
          [(1) In general.--The Forest Service and the Bureau 
        of Land Management may require performance and payment 
        bonds, in accordance with sections 103-2 and 103-3 of 
        part 28 of the Federal Acquisition Regulation (48 
        C.F.R. 28.103.2, 28.103-3), in an amount that the 
        contracting officer considers sufficient to protect the 
        Government's investment in receipts generated by the 
        contractor from the estimated value of the forest 
        products to be removed under contract under subsection 
        (a).
          [(2) Excess offset value.--If the offset value of the 
        forest products exceeds the value of the resource 
        improvement treatments, the Forest Service and the 
        Bureau of Land Management may--
                  [(A) collect any residual receipts pursuant 
                to the Act of June 9, 1930 (46 Stat. 527, 
                chapter 416; 16 U.S.C. 576b); and
                  [(B) apply the excess to other authorized 
                stewardship demonstration projects.
    [(g) Monitoring, Evaluation and Reporting.--The Forest 
Service and the Bureau of Land Management shall establish a 
multiparty monitoring and evaluation process that accesses the 
stewardship contracting projects conducted under this section. 
Besides the Forest Service and the Bureau of Land Management, 
participants in this process may include any cooperating 
governmental agencies, including tribal governments, and any 
interested groups or individuals. The Forest Service and the 
Bureau of Land Management shall report annually to the 
Committee on Approprations of the House of Representatives and 
the Committee on Appropriations of the Senate on--
          [(1) the status of development, execution, and 
        administration of contracts under subsection (a);
          [(2) the specific accomplishments that have resulted; 
        and
          [(3) the role of local communities in development of 
        contract plans.]

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