VII. Contracting with Partners

Contracting with Nonprofits and Community-Based Organizations

The classification of the partner organization is an important factor for contracts. The federal government cannot enter into contracts with organizations that are loosely formed and have no official structure or legal status. Nonprofits and community-based organizations must have an official sanction, usually 501(c)(3) status, to be eligible for contracts.

Certified small businesses receive the majority of the Forest Service's contracts (solicitations) for goods and services. By definition, nonprofits and community-based organizations are not small businesses. Regardless of size, they are legally considered to be the same as large businesses and are treated like universities and large corporations for contracting purposes. For the Forest Service to solicit goods or services from a nonprofit or community-based organization, it must first determine that the goods or services cannot be supplied by any small business.

For organizations and projects that meet the qualifications described above, the following contracting opportunities are available:

• Micro-purchasing – Any procurement less than $2,500 is not subject to the small business set-aside. These awards can be given directly to nonprofit or community-based organizations. No competitive bidding is required. A project, however, cannot be split into a series of small tasks for the sole purpose of staying below the $2,500 threshold.

• Simplified Acquisition Less Than $25,000 – If a contracting officer can make a case that there are no small businesses that offer the particular good or service needed, then quotes can be taken from nonprofits and/or community-based organizations. Competitive bidding can be limited to three offers and can be kept local.

• Simplified Acquisition Over $25,000 but Under $100,000 – Again, if a determination is made that no small businesses can offer the particular good or service needed, then competitive bidding is open to everyone. An announcement has to be made in Federal Business Opportunities, also known as FedBizOps (http://www.fedbizopps.gov/).

• Sole Source Determinations – A sole source determination means that there is no business or organization that has the capacity and qualifications to provide the good or service in question except for the specific organization identified. If a sole source determination is made, the Forest Service can contract directly with the identified nonprofit or community-based organization. This determination is made by the contracting officer and is based on unique characteristics that an entity brings to a project that no other organization possesses.

• General Services Administration (GSA) Schedule – There are several GSA schedules for consulting services for which nonprofits or community-based organizations might qualify. A specific GSA schedule that may lend itself to these types of organizations is Federal Supply Schedule 874, Management, Organizational, and Business Improvement Services. More information is available at the GSA website ( http://www.gsa.gov/).

• National Fire Plan – Within the National Fire Plan legislation, there is an exemption to the Small Business Act and Federal Acquisition Streamlining Act which makes it easier to contract with local nonprofit entities as well as other organizations. The Forest Service cannot “sole source” contract with nonprofits, but some contracting opportunities are allowed which were not previously available for projects funded under Title II of the National Fire Plan.

• Stewardship Contracting – These contracts are for projects that meet community needs and have Forest Service land management objectives. Stewardship contracting is a tool that provides the Forest Service and the Bureau of Land Management (BLM) with increased flexibility to contract for treatments that improve forest or rangeland health, restore water quality, improve fish and wildlife habitat, or reduce hazardous fuels. Successful stewardship contracting is built on good collaboration involving a diverse group of community members and individuals representing community-based groups, interest groups, and public agencies.

  • The Forest Service Stewardship Contracting website
    ( http://www.fs.fed.us/forestmanagement/projects/stewardship/index.shtml)
    provides detailed information on the authorizing legislation, specific types of stewardship contracts, who to contact for more information, reports and reviews of the program's progress, lessons learned about collaboration, and success stories. In addition, the website provides guidance to field-level employees on how to effectively use stewardship contracts.

  • Additional information is available through the Red Lodge Clearinghouse
    ( http://www.redlodgeclearinghouse.org/legislation/stewardship.html)
    and the Pinchot Institute
    (http://www.pinchot.org/community/stewardship_contracting.htm).

National Forest Foundation • USDA Forest Service • Partnership Resource Center