Summary of Changes

Permanent Note: On May 1, 2006, the Interim Internal Purchasing Guidelines were replaced by the Postal Service’s Supplying Principles and Practices (SPs and Ps).

Effective September 1, 2013, the following parts and sections of the SPs and Ps have been revised or deleted:

Process Step 2: Evaluate Sources

2-18 Select Contract Type

2-18.7, Time-and-Materials Contracts has been revised to define material and material handling costs and to state that profit or fees will not be paid on the cost of material or material handling.

7 General Practices

7-7 Laws

7-7.1, Federal Laws Applicable to the Postal Service has been updated to reflect citations to the laws mandated in 39 CFR either as enacted or since amended.

Clauses and Provisions

Clause 2-38: Payment (Time-and-Materials and Labor-Hour Contracts) (September 2013) has been revised to emphasize that (1) allowable costs of direct materials will be determined by the contracting officer in accordance with 2-34, Conduct Price/Cost Analysis, in effect on the date of contract;
(2) reasonable and allocable material handling costs may be included in the charge for materials to the extent clearly excluded from the hourly rate;
(3) profit or fees will not be paid on the cost of materials or materials handling; and (4) profit or fees will not be paid on the cost of subcontracts.