Executive Summary

This report by an independent review panel examines fire suppression costs for wildfire incidents during Fiscal Year 2006 that exceed $10,000,000 in cost. Its purpose was to: “Determine if the Forest Service exercised fiscal diligence in managing specific incident suppressing activities.” In terms of objectives, the Panel was asked to focus on strategic decisions and actions, compliance with policy and law, and risk analysis and management. There were 20 such fires whose suppression cost approached $500 million in total, exclusive of burned area emergency rehabilitation costs and accounted for over 1.1 million burned acres. One fire (Sawtooth) was excluded as a state managed fire. The fires were in 17 national forests, included five regions, six states and numerous counties.

The Panel conducted site visits on 16 forests where the fires occurred (four forests had two fires exceeding the $10 million mark). These site visits featured strategic discussions of pre-fire conditions, the fire chronology and suppression actions and results, and assessment of cost management and fire outcomes.

The Panel formally voted “No” in terms of the forest having exercised inappropriate or inadequate fiscal diligence for each of the 19 fires they assessed.

A second purpose of the review was for the Panel to address cross-cutting cost management issues and potential strategies that could impact fire suppression costs at strategic levels. The panel acknowledged that current efforts by forests and their incident business advisors to ensure compliance with contracting and resource allocation procedures and to maintain a high level of fiscal vigilance for potential waste and abuse were important, but unlikely to affect spending levels by more than 10%.

Four issue areas are addressed in the recommendations section that could, in the view of the Panel, potentially help contain suppression costs and future increases in wildfire costs at much higher levels. Recommendations are developed for:

• Land Management and Resource Plans and Fire Management Plans as Strategic Frameworks for Managing Fire Suppression Investment
• The Wildland Fire Situational Analysis and Delegation of Authority as Fire Suppression Management and Cost Factors
• Incident Management Team Structure & Transitions As Fire Suppression Cost Factors • Formulating a new Collaborative Cost Management Strategy