North Hollis Timber Sale Request For Proposals - P.O.W. Report

Sunday, October 1, 2017

North Hollis Timber Sale Request For Proposals

To: Sawmill Operators

Dear Mill Owners:

The Division of Forestry is soliciting Requests for Proposals (RFP) from qualifying businesses interested in negotiating the purchase of one (1) timber sale composed of one (1) unit in the Hollis Area located on Prince of Wales Island. This sale will be sold under AS 38.05.118. The intent of this sale is to supply timber to mill operators doing business within the State of Alaska. The Division of Forestry will require the sale’s saw log volume to be manufactured in the State of Alaska and to produce as much “value-added” and “high value added” product as possible. Limited export of round saw log timber will be considered if identified in the initial proposal. Export shall be a minor component of the sale.

The purchaser will provide the Division of Forestry with certification of scale volume by species and log grade as determined by an independent third party scaling bureau for the volume of domestically or locally processed wood and exported as round logs. Total volume exported as round logs may not exceed the percentage stated in the purchaser’s initial proposal based on the scaled volume divided by the State’s estimate of the total sale volume. The successful proposer will be allowed, and is encouraged, to sell logs that their company does not have the markets or capabilities to manufacture, to other local mills for in-state manufacture. The use and manufacture of utility volume is optional, based on the purchaser’s needs.

The RFP process is designed to provide a fair method to determine which qualifying business would potentially provide the most benefit to the State and the local communities by harvesting and processing a given timber sale offered by the State of Alaska. This process is used due to the high demand for state timber sales. The capabilities represented by the proposer are expected to be in good faith and factual. The Division of Forestry will consider any RFP non-responsive that fails to provide the required information or indicates that submitted performance would be improbable. Should a purchase agreement not be reached between the two parties within 30 days of the selection of the highest scoring proposer, the Division of Forestry will select the next highest scoring proposer for negotiations.

The Division of Forestry is offering one timber sale for negotiated purchase, the North Hollis Timber Sale, administratively referred to as SSE 1346-K. The timber sale area is located approximately 1 mile northeast of the Hollis ferry terminal. The sale area, consisting of approximately 230 acres, is legally defined as within portions of: Sections 25, 26, and 35 of Township 73 South, Range 84 East Copper River Meridian. (see Exhibit A- North Hollis Timber Sale Area Map). Main access to this timber sale area is from the end of Aurora Drive.

The State’s appraised value is an estimate of the sale’s fair market value and is not intended to be the minimum bid. DOF reserves the right to set a minimum acceptable stumpage price.

SSE 1346-K has an estimated saw log volume of 4,933 MBF on approximately two hundred and thirty (230) acres. The State appraised value for this sale is $200,000.00. All sale boundaries are flagged with pink “Timber Harvest Boundary” ribbon.

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