Although most contracts included bonds, some did not. We Observed Established Financial Procedures at the Projects We Visited

During our project site visits, we observed evidence of established  procedures in place for accounting for project funds, including procedures  for receiving and tracking timber payments and tracking retained receipts  and expenditures, as well as other steps taken to provide financial  accountability. The Agencies Have Not Provided Substantial Guidance on Community Involvement, and Efforts to Involve Communities Varied among Projects

Despite the stewardship contracting legislation’s emphasis on meeting  community needs, the Forest Service initially provided little guidance on  incorporating community involvement in stewardship contracting pilot  projects; as a result, the type and extent of field staffs’ efforts to involve  communities in projects varied considerably among the projects we  reviewed. Because the Forest Service Initially Provided Little Guidance on Community Involvement, the Type and Extent of Community Involvement Varied Significantly among Projects

Although the stewardship contracting legislation explicitly stated that  stewardship projects are “to achieve land management goals for the  national forests that meet local and rural community needs,” the Forest  Service initially provided only minimal guidance on soliciting and  incorporating community involvement in stewardship contracting projects,  and most managers we spoke with articulated their frustration with the  overall lack of guidance on community involvement. For example, the manager  of the Upper Blue project in Colorado told us that public involvement in  her project led to the development of more stringent criteria for protecting  water quality during project activities. The Main Boulder project manager  in Montana told us that public involvement in his fuels reduction project  led to improved relations with the public, which in turn persuaded a  neighboring landowner to offer the agency access across his land to an  isolated parcel of public land needing fuel reduction. Neither Agency’s 2004 Guidance Clarifies How Community Involvement Should Be Incorporated

Despite the many project managers who told us they wanted additional  guidance on obtaining and incorporating community involvement, the  Forest Service’s recent stewardship contracting handbook does not contain  specific guidance in this area, and BLM’s guidance document is similarly  lacking. Both Agencies Have Additional Projects Planned and Intend to Assess the Effectiveness of Stewardship Contracting

Both the Forest Service and BLM plan to use stewardship contracting in the  future. The project was subsequently altered to incorporate activities  to reduce wildfire risk and was completed in 2004. Objectives, Scope, and Methodology

Based on the congressional request letters of July 2002 and March 2003,  and subsequent discussions with your staffs, we agreed to determine (1)  the status of each stewardship project and the land management goals they  address; (2) the extent to which the agencies have contracting and financial  controls in place that ensure accountability in managing stewardship  projects; (3) the steps the agencies have taken to involve communities in  designing, implementing, and evaluating stewardship projects; (4) each  agency’s plans for future use of stewardship contracting; and (5) the Forest  Service’s response to concerns raised about 6 specific stewardship  projects.
Why GAO Did This Study

In their efforts to reduce hazardous fuels and the risk of wildfire on the nation's public lands, the Forest Service and the Bureau of Land Management (BLM) expect that stewardship contracting will play a major role. Stewardship contracting involves the use of contracting authorities--such as the exchange of goods for services--first authorized in 1998 and intended to help the agencies achieve land management goals that meet community needs. GAO was asked, among other things, to determine (1) the contracting and financial controls the agencies use to ensure accountability in managing stewardship contracting projects and (2) the steps the agencies have taken to involve communities in the projects.

What GAO Found

Although the Forest Service provided limited initial guidance on establishing contracting and financial controls, the eight stewardship projects GAO visited had incorporated such controls. (BLM was first granted stewardship authority in 2003 and had no projects under way at the time of GAO's review.) The projects generally used pre- and post-award controls, such as reviews of contractor bids using preestablished criteria, and performance and payment bonds to ensure completion of required activities. GAO's review of selected financial controls at the projects we visited showed that they appeared to have procedures in place to account for retained receipts, including tracking funds received and expended, and had incorporated procedures designed to ensure the completion of specific work tasks before contractors were paid. Both the Forest Service and BLM issued guidance in January 2004 containing such controls for future projects. The Forest Service initially provided minimal guidance on soliciting and incorporating public involvement in stewardship contracting projects and, as a result, the type and extent of efforts to involve communities varied considerably among the projects GAO reviewed. However, managers who did not incorporate public input may have missed valuable opportunities to strengthen their projects. For example, one project manager said that public involvement led to more stringent criteria for protecting water quality, and another reported that public involvement improved agency access to public lands needing fuel reduction. Although most managers GAO spoke with said they wanted additional guidance on public involvement, the Forest Service's recently issued stewardship contracting handbook does not contain specific guidance for obtaining community input--and BLM's recent guidance is similarly lacking. Without such guidance, each project manager must independently determine the type and extent of community involvement to solicit and then develop and implement community involvement procedures--an inefficient process that could lead to variation in community involvement across stewardship contracting projects in both agencies.