Updated September 10, 2021
Stewardship End Result Contracting: Forest Service and
Bureau of Land Management
Stewardship end result contracting, often called
specified forest products, such as timber, within the contract
stewardship contracting, is a Forest Service (FS) and
area, if it also contributes to the goals of the project (e.g.,
Bureau of Land Management (BLM) contracting
selective logging of diseased or insect-infested trees); this is
mechanism that allows these agencies to pursue land
the goods portion of a stewardship contract. For example, a
management goals by combining restoration services and
contract specifying a desired goal of enhancing migratory
forest product harvesting into a single project (see below).
bird habitat may authorize the contractor to cut and sell
FS and BLM may “trade goods for services” in a given
certain species (i.e., sell goods) to alter forest stand
project by applying the value of harvested forest products
composition, install nest boxes, and relocate trails to
toward the value of restoration services. These features
improve habitat (i.e., perform services). To execute a
make stewardship contracting an administrative efficiency
project under the stewardship contracting authority, FS and
tool, through which FS and BLM may reduce the
BLM enter into a single integrated resource contract or
complexity and cost of implementing restoration projects.
stewardship agreement for services rendered (services) and
timber or other forest products sold (goods). FS and BLM
The stewardship contracting mechanism allows FS and
award contracts and agreements on a best value basis,
BLM to combine a contract for the sale of forest products
meaning the agencies consider proposal quality, expertise,
with a contract for restoration services. FS and BLM also
past performance, and price in awarding a contract. FS and
may enter into stewardship agreements, generally if the
BLM may give a procurement preference to contractors that
project provides mutual benefit to both the partner and the
would promote an innovative use of forest products.
agency. Projects using either mechanism aim to achieve
Generally, stewardship contracts must be completed in 10
specified land management goals on lands in the National
years. In Section 207 of the FY2018 omnibus
Forest System (NFS), lands managed by FS, or public lands
appropriations bill (P.L. 115-141), Congress authorized the
managed by BLM. Unless otherwise specified, stewardship
Secretaries of Agriculture and the Interior to extend
project refers to both contracts and agreements.
contract terms on a one-time basis to 20 years for lands in
specified areas.
Project Attributes
Stewardship projects are used to achieve specified land
Legislative History
management goals, or end results. Activities conducted as
Congress first authorized stewardship contracting pilot
part of the project, including restoration services or forest
projects in the FY1999 omnibus appropriations act (P.L.
product harvesting, contribute to these goals, which may
105-277) and subsequently extended and expanded the
include any of the following (as specified in 16 U.S.C.
authority several times. Congress made it permanent in
§6591c):
2014 through Section 8205 of P.L. 113-79 (16 U.S.C.
§6591c). A brief legislative history is below:
Road and trail maintenance or obliteration to restore or
maintain water quality.
P.L. 105-277, Section 347 (FY1999 omnibus
Soil productivity, habitat for wildlife and fisheries, or
appropriations act): Authorized FS to enter into 28 pilot
other resource values.
stewardship contracts with private entities, each of up to
Setting of prescribed fires to improve the composition,
10 years in duration. Required nine projects to be in FS
structure, condition, and health of stands or to improve
Region 1.
wildlife habitat.
P.L. 106-113, Section 341 (FY2000 consolidated
Removing vegetation or other activities to promote
appropriations act): Amended P.L. 105-277 to authorize
healthy forest stands, reduce fire hazards, or achieve
FS to use agreements as well as contracts.
other land management objectives.
Watershed restoration and maintenance.
P.L. 106-291, Section 338 (FY2001 Interior and Related
Agencies appropriations act): Authorized FS to enter
Restoration and maintenance of fish and wildlife.
into 28 additional pilot projects. Required nine projects
Control of noxious and exotic weeds and reestablishing
to be in FS Region 1 and three to be in FS Region 6.
native plant species.
P.L. 107-63, Section 332 (FY2002 Interior and Related
In pursuit of a project’s specified goals, FS and BLM may
Agencies appropriations act): Authorized FS to enter
engage in restoration services, such as noxious weed
into 28 additional pilot projects. Required nine projects
treatment, prescribed fire, or vegetation planting; this is the
to be in FS Region 1 and three to be in FS Region 6.
services portion of a stewardship contract. Contracts also
include provisions for contractors to harvest and sell
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Stewardship End Result Contracting: Forest Service and Bureau of Land Management
P.L. 108-7, Section 323 (FY2003 consolidated
Figure 1. Stewardship Contracts or Agreements
appropriations act): Authorized both FS and BLM to
Awarded by Year, FY2003-FY2020
enter into an unrestricted number of stewardship
contracts and agreements through FY2013. This was the
first time Congress authorized BLM to use stewardship
contracting.
P.L. 113-79, Section 8205 (2014 farm bill): Congress
permanently authorized FS and BLM to enter into
stewardship contracts and agreements (16 U.S.C.
§6591c).
Congress amended the authority in Sections 204 through
207 of P.L. 115-141, as discussed above.
Statistics
FS has awarded more contracts comprising more total
acreage than BLM (see Figure 1 and Figure 2). Among
other factors, this may relate to the fact that FS manages
more forestland than BLM and thus may be able to offer
Figure 2. Acres (Thousands) in Awarded Stewardship
more projects trading goods for services (see below).
Contracts or Agreements by Year, FY2003-FY2020
Stewardship contracts may have terms of up to 10 years.
Therefore, the number of contracts awarded in a year, as
shown, is likely to be lower than the number of active
contracts in that year. Similarly, the number of acres in
awarded contracts in a year is likely to be less than the
number of acres in active contracts in that year.
Sources for Figures 1 and 2: U.S. Department of Agriculture
(USDA), Forest Service (FS), FS FY2021 budget justification, and BLM
legislative affairs office.
Both FS and BLM awarded the greatest number of
contracts, with the greatest amount of acreage in contracts
awarded, in FY2010. In FY2020, FS awarded 156 contracts
comprising approximately 71,000 acres. In FY2020, BLM
awarded seven contracts with a total of approximately
6,000 acres. Changes in use of the authority over time may
reflect changes in funding and an increased prioritization of
large-scale projects, among other factors.
Receipts and Offsetting
FS and BLM may trade goods for services under a
stewardship contract by offsetting the cost of restoration
services with the value of harvested timber or other forest
products. If the product value is greater than the cost of
services rendered, FS and BLM may retain the additional
money, known as excess receipts. FS and BLM have
established dedicated funds for these receipts. Excess
receipts are a mandatory appropriation to the respective
agency’s dedicated fund. FS and BLM may use these funds
for other stewardship contracting projects or to cover
cancellation ceiling obligations (see below) from
stewardship contracts.
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Stewardship End Result Contracting: Forest Service and Bureau of Land Management
Revenues from federal lands sometimes are shared with
the contract’s expiration. FS and BLM may obligate funds
other entities, such as states or counties, under various
for cancellation ceilings in economically or
statutory authorities. As specified in 16 U.S.C. §6591c(3),
programmatically viable stages. This provision allows FS
forest product sale revenues, as well as the value of services
and BLM to obligate such funds in stages, rather than
or resources provided for a stewardship project by the
obligating them when the contract is entered.
contractor, FS, or BLM, are not considered monies received
from the NFS or the public lands. Therefore, excess receipts
If FS or BLM intends to enter into a stewardship contract
are not included in the calculations for any applicable
with a cancellation ceiling higher than $25 million, without
revenue-sharing programs related to NFS and public lands.
proposed funding for the costs of canceling the contract, the
agency must report the proposed project to Congress and to
Contract Cancellation
the Office of Management and Budget.
In Section 204 of P.L. 115-141, Congress authorized FS
and BLM to include a cancellation ceiling in stewardship
Anne A. Riddle, Analyst in Natural Resources Policy
contracts. A cancellation ceiling represents the maximum
amount a contractor may recover in the event the
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government terminates the contract for convenience before
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