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RCED-83-37 1 (1983-02-09)

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BY THE COMPTROLLER GENERAL RELEASED

Report To The Honorable

Eugene A. Chappie

House Of Representatives


OF THE UNITED STATES




Skewed Bidding Presents Costly

Problems For The Forest Service

Timber Sales Program


The practice of skewed bidding--in which a
bidder in a multispecies timber sale at-
tributes most of the total bid value- to one
species and bids the minimum price on the
other species in the sale--has been wide-
spread in the Forest Service's three western
regions, is continuing, and has caused costly
problems for the Service's timber sales
program. At the 11 western national forests
GAO reviewed, about $1.9 million in sales
revenues was forgone on skewed bid timber
sales closed during the last 2 fiscal years for
which data was available--i 980 and 1981.
The Service must devote administrative
resources to deal with harvest management
problems caused by skewed bidding. The
Service could reduce these problems by
modifying its sales procedures to control
skewed bidding.









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0                                                          GAO/RCED-83-37
            7<                                             FEBRUARY 9, 1983

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