April 15, 2019
Stewardship End Result Contracting: Forest Service and
Bureau of Land Management

Stewardship end result contracting, often called
selective logging of diseased or insect-infested trees). This
“stewardship contracting,” is a Forest Service (FS) and
is the goods portion of a stewardship contract. For example,
Bureau of Land Management (BLM) contracting
a contract specifying a desired goal of enhancing migratory
mechanism allowing these agencies to pursue land
bird habitat may authorize the contractor to cut and sell
management goals by combining restoration services and
certain species (i.e., sell goods) to alter forest stand
forest product harvesting into a single project (see below).
composition, install nest boxes, and relocate trails to
FS and BLM may “trade goods for services” in a given
improve habitat (i.e., perform services).To execute a project
project by applying the value of harvested forest products
under the stewardship contracting authority, FS and BLM
toward the value of restoration services. These features
enter into a single integrated resource contract or
make stewardship contracting an administrative efficiency
stewardship agreement for services rendered (services) and
tool, through which FS and BLM may reduce the
timber or other forest products sold (goods). FS and BLM
complexity and cost of implementing restoration projects.
award contracts and agreements on a “best value” basis,
meaning that the agencies consider proposal quality,
The stewardship contracting mechanism allows FS and
expertise, past performance, and price in awarding a
BLM to combine a contract for the sale of forest products
contract. FS and BLM may give a procurement preference
with a contract for restoration services. FS and BLM may
to contractors who would promote an innovative use of
also enter into stewardship agreements, generally if the
forest products. Generally, stewardship contracts must be
project provides mutual benefit to both the partner and the
completed in 10 years. In Section 207 of the FY2018
agency. Projects using either mechanism are used to
omnibus appropriations bill (P.L. 115-141), Congress
achieve specified land management goals on lands in the
authorized the Secretaries of Agriculture and the Interior to
National Forest System (NFS), managed by FS, or on the
extend contract terms on a one-time basis to 20 years for
public lands, managed by BLM. Unless otherwise specified,
lands in specified areas.
“stewardship project” refers to both contracts and
agreements.
Legislative History
Congress first authorized stewardship contracting pilot
Project Attributes
projects in the FY1999 omnibus appropriations act, (P.L.
Stewardship projects are used to achieve specified land
105-277), subsequently extended and expanded the
management goals, or “end results.” Activities conducted as
authority several times, and made it permanent in 2014
part of the project, including restoration services or forest
through section 8205 of P.L. 113-79 (16 U.S.C. §6591c). A
product harvesting, contribute to these goals, which may
brief legislative history is given below:
include any of the following, as specified in 16 U.S.C.
 P.L. 105-277, Section 347 (FY1999 omnibus
§6591c.:
appropriations act): Authorized FS to enter into 28 pilot
 Road and trail maintenance or obliteration to restore or
stewardship contracts with private entities, each of up to
maintain water quality.
10 years in duration. Required nine projects to be in FS
 Soil productivity, habitat for wildlife and fisheries, or
Region 1.
other resource values.
 P.L. 106-113, Section 341 (FY2000 consolidated
 Setting of prescribed fires to improve the composition,
appropriations act): Amended P.L. 105-277 to authorize
structure, condition, and health of stands or to improve
FS to use agreements as well as contracts.
wildlife habitat.
P.L. 106-291, Section 338 (FY2001 Interior and related
 Removing vegetation or other activities to promote healthy
agencies appropriations act): Authorized FS to enter into 28
forest stands, reduce fire hazards, or achieve other land
additional pilot projects. Required nine projects to be in FS
management objectives.
Region 1 and three in FS Region 6.
 Watershed restoration and maintenance.
 Restoration and maintenance of fish and wildlife.
 P.L. 107-63, Section 332 (FY2002 Interior and related
 Control of noxious and exotic weeds and reestablishing
agencies appropriations act): Authorized FS to enter into
native plant species.
28 additional pilot projects. Required nine projects to be
In pursuit of a project’s specified goals, FS and BLM may
in FS Region 1 and three in FS Region 6.
engage in restoration services, such as noxious weed
 P.L. 108-7, Section 323 (FY2003 consolidated
treatment, prescribed fire, or vegetation planting. This is the
appropriations act): Authorized both FS and BLM to
services portion of a stewardship contract. Contracts also
enter into an unrestricted number of stewardship
include provisions for contractors to harvest and sell
contracts and agreements through FY2013. This was the
specified forest products, such as timber, within the contract
first time Congress authorized BLM to use stewardship
area, if it also contributes to the goals of the project (e.g.,
contracting.
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Stewardship End Result Contracting: Forest Service and Bureau of Land Management
 P.L. 113-79, Section 8205 (2014 farm bill): Congress

permanently authorized FS and BLM to enter into
Both FS and BLM awarded the greatest number of
stewardship contracts and agreements (16 U.S.C.
contracts, with the greatest amount of acreage in contracts
§6591c).
awarded, in FY2010. In FY2018, FS awarded 266 contracts
comprising approximately 162 thousand acres. In FY2018,
Congress amended the authority in Sections 204 through
BLM awarded three contracts with a total of approximately
207 of P.L. 115-141, as discussed above.
2 thousand acres. Changes in use of the authority over time
Statistics
may reflect changes in funding and an increased
prioritization of large-scale projects, among other factors.
FS has awarded more contracts comprising more total
acreage than BLM (Figure 1 and Figure 2). Among other
Receipts and Offsetting
factors, this may relate to the fact that FS manages more
FS and BLM may trade goods for services under a
forest land than BLM, and thus may be able to offer more
stewardship contract by offsetting the cost of restoration
projects trading goods for services (see below). Stewardship
services with the value of harvested timber or other forest
contracts may have terms of up to ten years. Therefore, the
products. If the product value is greater than the cost of
number of contracts awarded in a year, as shown, is likely
services rendered, FS and BLM may retain the additional
to be lower than the number of active contracts in that year.
money, known as excess receipts. FS and BLM have each
Similarly, the number of acres in awarded contracts in a
established dedicated funds for these receipts. Excess
year is likely to be less than the number of acres in active
receipts are a mandatory appropriation to the respective
contracts in that year.
agency’s dedicated fund. FS and BLM may use these funds
Figure 1. Stewardship Contracts or Agreements
for other stewardship contracting projects or to cover
Awarded by Year, FY2003-FY2018
cancellation ceiling obligations (see below) from
stewardship contracts.
Revenues from federal lands are sometimes shared with
other entities, such as states or counties, under various
statutory authorities. As specified in 16 U.S.C. §6591c(3),
forest product sale revenues, as well as the value of services
or resources provided for a stewardship project by the
contractor, FS, or BLM, are not considered monies received
from the NFS or the public lands. Therefore, excess receipts
are not included in the calculations for any applicable
revenue-sharing programs related to NFS and public lands.
Contract Cancellation
In Section 204 of P.L. 115-141, Congress authorized FS
and BLM to include a cancellation ceiling in stewardship
contracts. A cancellation ceiling represents the maximum
amount a contractor may recover in the event that the
Figure 2. Acres (Thousands) in Awarded Stewardship
government terminates the contract for convenience before
Contracts or Agreements by Year, FY2003-FY2018
the expiration of the contract. FS and BLM may obligate
funds for cancellation ceilings in stages that are
economically or programmatically viable. This provision
allows FS and BLM to obligate such funds in stages, rather
than obligating them when the contract is entered.
If FS or BLM intend to enter into a stewardship contract
with a cancellation ceiling higher than $25 million, without
proposed funding for the costs of canceling the contract,
they must report the proposed project to Congress and the
Office of Management and Budget.

Anne A. Riddle, Analyst in Natural Resources Policy

IF11179
Source: U.S. Department of Agriculture (USDA), Forest Service
(FS), FS FY2020 budget justification, and BLM legislative affairs office.

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Stewardship End Result Contracting: Forest Service and Bureau of Land Management



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