Louisiana-Pacific Corporation v. John R. Block, Secretary of Agriculture

Louisiana-Pacific Corporation (Louisiana-Pacific) appeals from the denial of its prayer for declaratory and injunctive relief to prohibit the U.S. Forest Service (Forest Service) from continuing to set aside certain sales of timber in Mendocino National Forest (Mendocino) to small businesses. Because the Forest Service’s administrative decisions complied with the procedures mandated by law, were based upon consideration of the relevant factors and law, and did not constitute an abuse of discretion, we affirm.

I. Background

A. The Set-Aside Program

In 1971, because of decreasing purchases of federally owned timber by small businesses and in order to fulfill their mutual responsibilities under the Small Business Act (the Act), 15 U.S.C. §§ 631-647 , the Forest Service and the Small Business Administration (SBA) entered into an agreement establishing the small business set-aside program. The program is essentially designed to ensure that small businesses receive a “fair proportion” of the total sales of national forest timber as mandated by the Act. See 15 U.S.C. § 644 (a)(4) (requiring that a fair proportion of total sales of government property be made to small business…