TENDER PROVINCIAL FOREST BALSAM FIR TIPS STANDING PURCHASE OFFER 2009 EASTERN, CENTRAL AND WESTERN FORESTRY DISTRICTS The Department of Environment, Energy and Forestry, Provincial Forest Section invites tender submissions for Standing Purchase Offers for Balsam Fir Tips in 2009 for each of the Eastern, Central and Western Forestry Districts. The Tender submissions for Standing Purchase Offer for Balsam Fir Tips 2009 will be accepted based on a price per hectare basis. Detailed information and tender forms are available from the appropriate Forestry District Offices or the Provincial Forest web site (www.gov.pe.ca/go/foresttenders Tenders will be received until 1:00 P.M. November 13, 2009 All envelopes must be clearly marked Balsam Fir Tips - Standing Purchase Offer 2009" and must be forwarded to the Forestry District Office for which the tender is being submitted as indicated below: Hon. Richard Brown, Minister Department of Environment, Energy and Forestry Western District Forestry Office Central District Forestry Office Eastern District Forestry Office 4O Hackmatack Road 170 Beach Grove Road P.O. Box 29, St. Peters Bay Wellington R.R.#1 P.O. Box 2000 2580 Cardigan Road P.E.I. Charlottetown, P.E.I. Southampton, P.E.I. C0B 2E0 C1A 7N8 C0A 2A0 Phone: 854-7260 Phone: 368-4800 Phone: 961-7296 HIGHEST OR ANY TENDER NOT NECESSARILY ACCEPTED
TENDERING INSTRUCTIONS BALSAM FIR TIPS - STANDING PURCHASE OFFER 2009 EASTERN, CENTRAL, & WESTERN FORESTRY DISTRICTS 1. Tenders must be received at the Forestry District Office for which the bid is intended no later than 1:00 P.M. November 13, 2009 in sealed envelopes clearly marked " Balsam Fir Tips - STANDING OFFER 2009. Late tenders will not be considered. 2. All tenders must be made on the official tender forms provided by the Department of Environment, Energy and Forestry. All tenderers must provide a statement on the intent for utilization of the balsam fir tips from the Provincial Forest (i.e. collection of tips and manufacturing of Balsam fir wreathes; collection of balsam fir tips and sale of the tips; or a combination thereof in which case the tenderer must specify the amount of tips for each use and a statement of the value added revenues and number of person weeks of employment arising from this collection and manufacturing of Provincial Forest balsam fir tips. The Department of Environment, Energy and Forestry reserves the right to establish the sustainable levels from the Provincial Forest and may limit the amounts available to any individual company. 3. All tenders must be expressed on a price per hectare basis and the tenderer is to identify either the property identification number or the location(s of interest within the Provincial Forests as well as any needs for the creation of an ATV extraction trail. 4. Tenders must be based on a review of the draft forest product sales permit contract which is attached bearing the title Balsam Fir Tips Sales Permit. 6. Individuals or companies with outstanding accounts with the Department of Environment, Energy and Forestry in the form of forest product sales permit contract payments, penalties, or check-off payments at the time of tender opening shall not be eligible for the awarding of any new forest product sales permit contracts. With respect to check-off payments in this clause, those who have paid their second quarter check-off payments (those due for the period up to June 30th, 2009 are considered current for check-off payments. 7. Companies who, within the period between the opening and closing of this tender, have attained eligibility pursuant to Clause 6 by payment of overdue accounts for arrears of forest product sales in the past year may be eligible for balsam fir tips purchase provided under this tender offer provided they make full payment for balsam fir tips under this offer prior to the removal of any such balsam fir tips offered for sale. In this case, payment must be by certified cheque or cash. 8. The tenderer must provide his (her decision to either accept the Balsam Fir Tips offered for sale to the tenderer or reject the offer within 72 hours of the offer of sale by the Department of Environment, Energy and Forestry. In the event the tenderer fails to either accept or reject the offer, the Department of Environment, Energy and Forestry is free to offer the Balsam Fir Tips to another buyer and the tenderer shall not be eligible for any remuneration or costs of any other kind whatsoever. Each Department of Environment, Energy and Forestry Forestry District Office shall maintain a record with the Balsam Fir Tips offered as well as the time and the date of the offer. This record shall constitute the confirmation of the offer s date.
9. All tenderer identification sections of the official tender form as well as the Forestry District for which the tender bid is being submitted must be completed on the official tender form. Tenders with this information partially completed or missing will be considered invalid. NOTE: a separate tender must be submitted for each Forestry District on which the tenderer wishes to submit a tender. 10. In the event of identical tenders, the parties involved in submitting these tenders shall be requested to re-tender at a price equal to or higher than their first tender. With the exception of determining the placement order of the companies that submitted identical tenders, the results of their retender price shall not alter the order of the tender bids. 11. Except as noted in Clause 7 or 9, payment for the Balsam Fir Tips shall be due upon signing of the agreement titled the Balsam Fir Tips Sales Permit. Pursuant to the Forest Management Act R.S.P.E.I. 1988, Cap. F-14, the Balsam Fir Tips cut, harvested or removed under a forest product sales permit shall remain the property of the Government until payment in full is received and the Government shall have first lien and charge upon all property subject to the permit until all the conditions of the permit are satisfied. 12 Overdue accounts shall be levied an interest charge of 1.5 % per month calculated on the outstanding amount owed. HIGHEST OR ANY TENDER NOT NECESSARILY ACCEPTED ref: \wpfiles\contract\08firtip.wpd
TENDER FORM BALSAM FIR TIPS - STANDING PURCHASE OFFER 2009 I of hereby submit a tender(s for the following forest products delivered roadside as listed below: Forestry District: Balsam Fir Tips Dollars per hectare Property Number(s or location(s of interest State the Purpose for the balsam fir tips (see Tendering Instruction # 2: Value Added Projections: Number of person weeks of employment generated: person weeks Notes: Tender price is not to include G.S.T. SIGNATURE: ADDRESS: PHONE #: E-MAIL FAX # TENDER CLOSING DATE: Tenders must be received at the Forests, Fish and Wildlife Division by 1:00 P.M., November 13, 2009. Forestry District of the HIGHEST OR ANY TENDER NOT NECESSARILY ACCEPTED
DEPARTMENT OF ENVIRONMENT, ENERGY AND FORESTRY BALSAM FIR TIPS SALES PERMIT THIS AGREEMENT made the day of, 2009. BETWEEN: The Government of PRINCE EDWARD ISLAND, as represented by the Department of Environment, Energy & Forestry (hereinafter referred to as the "GOVERNMENT". AND: of in the County of, Province of Prince Edward Island, (hereinafter referred to as the "CONTRACTOR". In consideration of the mutual covenants and conditions hereinafter set out, the GOVERNMENT and the CONTRACTOR agree as follows: 1. The GOVERNMENT agrees to sell and the CONTRACTOR agrees to purchase balsam fir tips, hereinafter referred to as the "Tips", that are located upon lands owned by the GOVERNMENT, the identity and location of the lands being set out in Schedule "B" hereto and forming part of this AGREEMENT. 2. The Contractor agrees to pay the GOVERNMENT the sum of, ($ (G.S.T. included of lawful money of Canada, the "Purchase Price" for the Tips referred to in paragraph one hereof and more particularly described in Schedule "B" hereto. 3. The CONTRACTOR agrees to remove all of the Tips harvested from the designated lands of the GOVERNMENT referred to in paragraph one and two hereof and more particularly described in Schedule "B" on or before the day of, 2009. 4. The CONTRACTOR agrees to waive and renounce all claim to the above described Tips unless the Tips are removed on or before the date designated in paragraph three hereof. 5. The CONTRACTOR agrees to suspend all work further to this AGREEMENT upon receiving written notice to that effect from the GOVERNMENT. In the event that work has been suspended, the completion date referred to in paragraph three hereof may, at the sole discretion of the GOVERNMENT, be extended for a period equal to the length of suspension. 6. The CONTRACTOR agrees to remove the Tips in a manner that will cause the least amount of damage to the trees, lands and roads owned by the GOVERNMENT and, where damage is caused to the lands and roads to repair such damage at the CONTRACTOR S cost or, where damage is caused to the tree, pay for the tree wood value at the harvested wood price established by the GOVERNMENT. 7. The CONTRACTOR agrees that upon payment of the Purchase Price in accordance with paragraph two hereof, that the Tips becomes the CONTRACTOR s sole responsibility and that the GOVERNMENT will in no way become responsible to the CONTRACTOR for any loss or damage to the Tips prior to its removal in accordance with paragraph three. 8. The CONTRACTOR agrees with the GOVERNMENT that, pursuant to the Forest Management Act R.S.P.E.I. 1988 Cap. F-14, the balsam fir tips or other forest product cut, harvested or removed under a forest product sales permit shall remain the property of the Government until
payment in full is received and the Government shall have first lien and charge upon all property subject to the permit until all the conditions of the permit are satisfied. 9. Any information provided on this Contract may be subject to release under the Freedom of Information and Protection of Privacy Act R.S.P.E.I. 1988, Cap. F-15.01. You will be consulted prior to release of any information. 10. CONTRACTORS whose work for government involves the collection or use of personal information are subject to the Freedom of information and Protection of Privacy Act. Personal information may not be released to any third party or unauthorized person. 11. The CONTRACTOR agrees with the GOVERNMENT that the CONTRACTOR shall be solely responsible for and shall hold the GOVERNMENT free and harmless from any and all losses, expenses, damages, demands and claims arising out of or in connection with injuries (including death or damages to any and all persons, employees, invitees, servants, and property in any way sustained in connection with or by reason of the performance or non-performance of the terms of this AGREEMENT BY THE CONTRACTOR, its sub-contractors, employees or servants. 12. The CONTRACTOR hereby releases and forever discharges the GOVERNMENT, its agents, servants, and employees of and from all claims, demands, damages, actions or causes of action arising or to arise by reason of the performance or non- performance of the terms of this AGREEMENT by the GOVERNMENT, its agents, servants, or employees, and of and from all claims or demands whatsoever in law or in equity which the CONTRACTOR, his heirs, executors, administrators or assigns can, shall or may have because of such performance or nonperformance. IN WITNESS WHEREOF the GOVERNMENT and the CONTRACTOR have hereunto set their hands and seals on the day and year first above written. SIGNED, SEALED, AND DELIVERED, on behalf of the GOVERNMENT in the presence of: WITNESS SIGNED, SEALED, AND DELIVERED, on behalf of the Contractor in the presence of WITNESS GOVERNMENT of Prince Edward Island, as represented by the Minister of Environment, Energy and Forestry, by his representative, designated pursuant to section 2 of the Forest Management Act, R.S.P.E.I. 1988, Cap. F14 CONTRACTOR Page 5
(BALSAM FIR TIPPING CONTRACT - DISTRICT SCHEDULE A BALSAM FIR TIPPING AGREEMENT SPECIFICATIONS DISTRICT - 2009 TO CONTRACT BETWEEN AND DATED THE DAY OF, 2009 The contractor shall, in accordance with the terms and conditions of the Agreement including attachments: 1. The CONTRACTOR will harvest balsam fir tips from the designated government owned lands according to the following specifications: a The harvested balsam fir tips will not exceed 18 inches in length; b The balsam fir tips shall be harvested from trees less than 30 years of age using a hand pruning clipper or by the harvester snapping the twigs off using their hands; c Upon completion of the prescribed work, the site(s is(are in a clean and orderly condition; d Create harvesting trails for ATV s or other vehicles under 2.0 metres wide which are approved for use in the stand by the Provincial Forest District Senior Technician or Supervisor. 2. Salvage and remove the balsam fir tips from the designated site(s, with the least amount of damage to the standing trees, lands and roads on the property. 3. Repair any damage caused to the lands and the roads during the removal of balsam fir tips from the property or during access trips for planning or implementing the removal. 4. In the event that rutting or other damage that channels water flow occurs, implement erosion control measures so as to stop the erosion process. 5. Operate in accordance with the following penalties which shall be applied for improper harvesting practices by the contractor. (a (b (c Tree stem damage - pay roadside value as determined by the Government for tree stems damaged during the harvest operation. Merchantable tree harvests - pay double the roadside value as determined by the Government for merchantable tree stems cut down or harvested during the balsam fir tip harvesting operation. Non-merchantable standing trees - One dollar ($1.00 for each non-merchantable standing tree cut down or harvested during the balsam fir tip harvesting operation. Initials / Date /
Page 6 (BALSAM FIR TIPPING CONTRACT - DISTRICT d Tipping outside the designated area - pay 10 cents per pound for the estimated harvest weight for balsam fir foliage tipped outside the designated harvest area. 6. All balsam fir tip harvesting and removal is to be completed no later than December 10, 2008, or the Contractor shall forfeit said contract. 7. All trees marking the perimeter of the harvesting area including those as corner posts shall be left standing, so that the blazes and balsam fir tip harvest number remain visible. 8. Agree to suspend all work further to this Agreement upon receiving verbal or written notice to that effect from a Provincial Forest Technician employed with the Department of Environment, Energy and Forestry. 9. Provide payment in the amount of one hundred (100 percent of the tender price, within five (5 days verbal notice that the bid(s has been accepted. If full payment is not received within this five (5 day period the balsam fir tip harvest area(s will be offered to the next acceptable bidder. 10. Waive and renounce all claim to the above described balsam fir tips unless removed on or before the date designated in paragraph 2 hereof. 11. Acknowledges that any balsam fir tips stolen or taken off the property after the signing of this Agreement is not the responsibility of the Government. 12. Acknowledges that the Contractor and its employees are allowed on the property for the purposes of carrying out the work only. 13. Acknowledges that he is required to fully comply with all terms and conditions of this agreement including the Appendices. In the event that the contractor does not fully comply, the GOVERNMENT shall carry out the remaining necessary work and the cost of such work shall be a debt owing to the GOVERNMENT by the contractor. Initials / Date /