8-3.3 Personal Services Contracts

Definition — A personal services contract is a contract with an individual under the terms of which the individual will:

  1. Work under the direct supervision of postal personnel;
  2. Work on postal premises and use postal equipment; and
  3. Perform duties similar in nature to those of postal employees.

A personal services contract may create the appearance of an employee-employer relationship, and may result in additional costs, such as tax withholding. For this reason, purchase/SCM teams should strive to use contracting vehicles other than personal services contracts, but, when deemed appropriate, they may be used, subject to the reviews and approvals discussed in Section 7-12, Restrictions on Contracting with Former Postal Service Officers, Executives, Employees, and Other Sources.

Use — Personal services contracts may be awarded for professional/technical services but may not be awarded for consultant services.

Contracts — All personal services contracts should be written to ensure that the Postal Service does not incur unnecessary costs or liabilities. purchase/SCM teams should work with assigned counsel to ensure that the interests of the Postal service are protected in areas such as taxes, unemployment liability, etc.