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

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

Updated September 27, 2022
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).
make stewardship contracting an administrative efficiency
tool, through which FS and BLM may reduce the
To execute a project under the stewardship contracting
complexity and cost of implementing restoration projects.
authority, FS and BLM enter into a single contract or
agreement for services rendered (services) and timber or
The stewardship contracting mechanism allows FS and
other forest products sold (goods). FS and BLM award
BLM to combine a contract for the sale of forest products
contracts and agreements on a best value basis, meaning the
with a contract for restoration services. FS and BLM also
agencies consider proposal quality, expertise, past
may enter into stewardship agreements, generally if the
performance, and price in awarding a contract. FS and
project provides mutual benefit to both the partner and the
BLM may give a procurement preference to contractors that
agency. Projects using either mechanism aim to achieve
would promote an innovative use of forest products.
specified land management goals on lands in the National
Generally, stewardship contracts must be completed in 10
Forest System (NFS), managed by the FS, or public lands
years. In Section 207 of the FY2018 omnibus
managed by BLM. Unless otherwise specified, stewardship
appropriations bill (P.L. 115-141), Congress authorized the
project refers to both contracts and agreements.
Secretaries of Agriculture and the Interior to extend
contract terms on a one-time basis to 20 years for lands in
Project Attributes
specified areas.
Stewardship projects are used to achieve specified land
management goals, or end results. Activities conducted as
Legislative History
part of the project, including restoration services or forest
Congress first authorized stewardship contracting pilot
product harvesting, contribute to these goals, which may
projects in the FY1999 omnibus appropriations act (P.L.
include any of the following (as specified in 16 U.S.C.
105-277) and subsequently extended and expanded the
§6591c):
authority several times. Congress made it permanent in
2014 through Section 8205 of P.L. 113-79 (16 U.S.C.
 Road and trail maintenance or obliteration to restore or
§6591c). A brief legislative history is below:
maintain water quality.
 Soil productivity, habitat for wildlife and fisheries, or
 P.L. 105-277, Section 347 (FY1999 omnibus
other resource values.
appropriations act): Authorized FS to enter into 28 pilot
 Setting of prescribed fires to improve the composition,
stewardship contracts with private entities, each of up to
structure, condition, and health of stands or to improve
10 years in duration. Required nine projects to be in FS
wildlife habitat.
Region 1.
 Removing vegetation or other activities to promote
 P.L. 106-113, Section 341 (FY2000 consolidated
healthy forest stands, reduce fire hazards, or achieve
appropriations act): Amended P.L. 105-277 to authorize
other land management objectives.
FS to use agreements as well as contracts.
 Watershed restoration and maintenance.


P.L. 106-291, Section 338 (FY2001 Interior and Related
Restoration and maintenance of fish and wildlife.
Agencies appropriations act): Authorized FS to enter
 Control of noxious and exotic weeds and reestablishing
into 28 additional pilot projects. Required nine projects
native plant species.
to be in FS Region 1 and three to be in FS Region 6.
In pursuit of a project’s specified goals, FS and BLM may
 P.L. 107-63, Section 332 (FY2002 Interior and Related
engage in restoration services, such as noxious weed
Agencies appropriations act): Authorized FS to enter
treatment, prescribed fire, or vegetation planting; this is the
into 28 additional pilot projects. Required nine projects
services portion of a stewardship contract. Contracts also
to be in FS Region 1 and three to be in FS Region 6.
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
Both FS and BLM awarded the greatest number of
appropriations act): Authorized both FS and BLM to
contracts, with the greatest amount of acreage in contracts
enter into an unrestricted number of stewardship
awarded, in FY2010. In FY2021, FS awarded 141 contracts
contracts and agreements through FY2013. This was the
comprising 165,448 acres. In FY201, BLM awarded two
first time Congress authorized BLM to use stewardship
contracts with a total of 853 acres. Changes in use of the
contracting.
authority over time may reflect changes in funding and an

increased prioritization of large-scale projects, among other
P.L. 113-79, Section 8205 (2014 farm bill): Congress
factors.
permanently authorized FS and BLM to enter into
stewardship contracts and agreements (16 U.S.C.
Receipts and Offsetting
§6591c).
FS and BLM may trade goods for services under a
Congress amended the authority in Sections 204 through
stewardship contract by offsetting the cost of restoration
207 of P.L. 115-141, as discussed above.
services with the value of harvested timber or other forest
products. If the product value is greater than the cost of
Statistics
services rendered, FS and BLM may retain the additional
FS has awarded more contracts comprising more total
money, known as excess receipts. FS and BLM have
acreage than BLM (see Figure 1 and Figure 2). Among
established dedicated funds for these receipts. Excess
other factors, this may relate to the fact that FS manages
receipts are a mandatory appropriation to the respective
more forest than BLM and thus may be able to offer more
agency’s dedicated fund. FS and BLM may use these funds
projects trading goods for services (see below). Stewardship
for other stewardship contracting projects or to cover
contracts may have terms of up to 10 years. Therefore, the
cancellation ceiling obligations (see below) from
number of contracts awarded in a year, as shown, is likely
stewardship contracts.
to be lower than the number of active contracts in that year.
Similarly, the number of acres in awarded contracts in a
Revenues from federal lands sometimes are shared with
year is likely to be less than the number of acres in active
other entities, such as states or counties, under various
contracts in that year.
statutory authorities. As specified in 16 U.S.C. §6591c(3),
forest product sale revenues, as well as the value of services
Figure 1. Stewardship Contracts or Agreements
or resources provided for a stewardship project by the
Awarded by Year, FY2003-FY2021
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 the
government terminates the contract for convenience before
the contract’s expiration. FS and BLM may obligate funds
for cancellation ceilings in economically or
programmatically viable stages. This provision allows FS
and BLM to obligate such funds in stages, rather than

obligating them when the contract is entered.
Figure 2. Acres (Thousands) in Awarded Stewardship
Contracts or Agreements by Year, FY2003-FY2021
If FS or BLM intends to enter into a stewardship contract
with a cancellation ceiling higher than $25 million, without
proposed funding for the costs of canceling the contract, the
agency must report the proposed project to Congress and to
the Office of Management and Budget.
Anne A. Riddle, Analyst in Natural Resources Policy
IF11179

Sources for Figures 1 and 2: Forest Service (FS) and Bureau of
Land Management budget justifications and BLM legislative affairs
office.
https://crsreports.congress.gov

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

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