4-1.5 Orders against Ordering Agreements

4-1.5.1 General

As discussed in 2-18.11, Ordering Agreements, an ordering agreement is an agreement negotiated between the Postal Service and the supplier that contains terms and conditions applicable to future contracts. Contracts are formed once orders are placed. Contracting officers issue task orders, and suppliers propose prices based on labor rates and other applicable costs established in the ordering agreement. The contracting officer may either accept the proposed price or schedule a time to negotiate with the Supplier to reach agreement. Contracting officers may place orders against a single ordering agreement or against multiple ordering agreements.

4-1.5.2 Competition

As discussed in 2-18.11.4, Ordering, competition must be obtained prior to placing an order valued at $10,000 or more; if orders are placed noncompetitively, the order is subject to the noncompetitive policies and procedures discussed in 2-10, Determine Extent of Competition, and 2-41, Obtain Selected Reviews and Approvals. Orders may be competed among firms holding ordering agreements or on the open market.