5-11.4 Withholding

The CO may decide to reject an invoice and consequently not pay the supplier. Nonpayment may be damaging to the supplier’s business and may jeopardize performance, as well as harming the working relationship between the Postal Service and the supplier. Therefore, the CO must carefully consider the reasons for withholding or refusing payment and must address problems regarding payment expeditiously.

The CO may refuse to pay the supplier or may withhold payments otherwise due, in whole or in part, when: