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Receipt and Inspection

Receipt is an important material management function that concludes the transportation shipment and collects information for material accountability. Inspection comprises measuring, examining, and testing to determine whether the materials provided in the shipment conform to contract requirements. Paragraph a of Clause 4-1: General Terms and Conditions and Clause 2-1: Inspection and Acceptance discuss the general requirements for inspection or acceptance.

Receiving and inspection operations comprise the activities from initial receipt of the material at a facility (commonly at a loading dock or other designated receiving point) to processing the material for final delivery or for storage. Receipt and inspection is a critical control point in the Postal Service's material system. If these functions are performed correctly, any existing discrepancies between what is ordered and received will be uncovered, and errors can easily be corrected at this time, as opposed to later, when the cost to correct them is certain to be higher.

The receipt of requirements and their inspection must be done accurately to conserve and protect Postal Service assets, as well as provide required information to other activities affected by the receiving process. After receipt and inspection is conducted, it is determined whether the materials will be accepted or returned, which are addressed in the Acceptance and Returns topics of the Complete Delivery task of Process Step 4: Deliver and Receive Requirements.

Designated Receiving Points

Each Postal Service stockroom, warehouse, or storage room activity will have designated receiving points staffed and operated by trained, designated receiving personnel. All incoming material and related receiving documents will flow through those designated processing points for control and documentation. Handbook AS-701, Material Management, provides guidance on some of these documentation requirements.

The contract or agreement will specify the receiving location, and all incoming shipments will be directed there (unless otherwise arranged and approved by an authorized Postal Service representative). Designated receiving areas will include a receipt staging area. Incoming materials will be delivered first to the staging area for processing and then to the ultimate consignee or to storage.

Incoming materials must be secured and safeguarded upon receipt. Valuable commodities, such as computers, must be safeguarded during the receiving process.

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Receiving Process

When a shipment arrives:

Receiving personnel check the goods against the Supplier's delivery documents (i.e., packing slip, invoices, and bill of lading) and contractual requirements to ensure that the Postal Service has actually received the material ordered (this is the basis for subsequent activities of the Process Invoices and Make Payment topics of the Make Payment task of Process Step 5: Measure and Manage Supply).

The receiving personnel are to visually inspect the shipment to confirm correct quantity and quality and that no shipping damage has occurred. All discrepancies must be noted on the receiving transaction and appropriately resolved with the Supplier.

In the event that goods are received damaged, the receiving department holds the goods for further action. When a container shows evidence of damage or pilferage (resealed or open containers), this must be called to the attention of the Transportation Management Service Provider (TMSP) (also referred to as the Carrier) representative at once and noted on the receipt bill of lading. Loss and Damage Reporting processes discussed below should be followed.

A receiving report is prepared on which the results of the initial investigation are noted. This is a record of the shipment and the condition of its contents; it notes variances or discrepancies from the contractual requirement. If the order is considered complete, the receiving department closes out its copy of the purchase. If it is not, the contractual requirement is held open, awaiting completion.

If the goods are in order and require no further inspection, then they will be routed to the originating department or to inventory (e.g., warehouse or stockroom).

If the goods are not in order or further inspections are required, then the goods are checked to see whether they conform to specifications, which includes opening up packaging and inspecting for concealed damage (no apparent external container damages, but the product itself is found to be damaged when the container is opened). When damages are found, follow the process steps in Loss and Damage Reporting discussed below.

Postal Service responsibilities after delivery and before Postal Service acceptance or rejection and notification will be addressed in the contractual documentation.

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Loss and Damage Reporting

When damage or loss is detected, receiving personnel must accept the shipment from the carrier and note the problem on the carrier's bill of lading. Receiving personnel should also take pictures of the problem; must notify Topeka Customer Service; and provide relevant data, documents, and details in accordance with the instructions found in Handbook AS-701, Material Management. The receiving department holds the suspect goods pending further instruction.

Topeka Customer Service determines the Postal Service party responsible to resolve the problem and forwards all relevant data, documents, and details to that party, according to the following:

For goods received via U.S. mail, the Contracting Officer or internal shipping activity is notified.

For goods received from a Supplier that shipped f.o.b. destination, the Contracting Officer is notified.

For goods received from a Supplier that delivered the goods via its own equipment, the Contracting Officer is notified.

For goods received as postal freight, Supply Management (SM) Operations is notified.

For goods received that were shipped via TMSP, SM Operations is notified.

Topeka Customer Service will provide a monthly summary report of damage and loss activity to SM Operations for process improvement analysis and action.

Receipt Control, Stock Records, and Documentation

Receiving personnel are responsible for maintaining files on shipments due in. File contents should be reviewed for planning purposes to ensure fast, accurate, and orderly receipt processing. When feasible, arrangements for receiving and storing any large-volume shipments should be made prior to the shipments' arrival.

Each designated receiving location must account for, and provide evidence of, a receiving transaction for all material, merchandise, or supplies accepted by the receiving location. Receiving transaction information must be maintained in the receiving department and made available to the appropriate departments (e.g., Accounts Payable) to ensure the timely completion of the activities associated with the Process Invoices topic of the Make Payment task of Process Step 5: Measure and Manage Supply.

Receiving transaction information must be adequately safeguarded from theft, destruction, or unauthorized use. Receiving transactions must be uniquely identifiable, traceable, and accounted for periodically.

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Supplier's Responsibilities

The Supplier's responsibilities for shipment and delivery must be in accordance with Clause 4-1: General Terms and Conditions (Assignment of Claims); Clause 2-9: Definition of Delivery Terms and Supplier's Responsibilities; Clause B-4: Variation in Quantity; and Clause B-7: Responsibility for Supplies.

If the contract contains a guaranteed-shipping-weight provision, in accordance with Clause B-23: Guaranteed Shipping Weight, the Supplier is responsible for the actual weight at the time of shipment for free-on-board (f.o.b.) origin contracts. If the shipping weight exceeds the specified guaranteed shipping weight, the Supplier will be liable for any resulting excess transportation costs.

If required by the contract, the Supplier must furnish samples for the Contracting Officer's approval. They must be delivered to the Contracting Officer as specified or as directed. The Supplier must prepay all shipping charges on samples, pursuant to Clause B-62: Samples.

At the time specified for first article testing, the Supplier must deliver the units specified in the Schedule to the Postal Service at the testing facility set forth in the Schedule. The shipping documentation accompanying the first article must contain the number of the contract and the lot or item identification, in accordance with Clause 2-5: First Article Approval - Postal Service Testing.

As stated in Clause 2-11: Postal Service Property - Fixed-Price; Clause 2-12: Postal Service Property - Short Form; and Clause 2-13: Postal Service Property - Non-Fixed-Price, if the Supplier uses Postal Service-furnished property in a contract after completing the contract with the Postal Service, the Supplier will either prepare for shipment and deliver f.o.b. origin or dispose of Postal Service property as the Contracting Officer may authorize or direct.

Under Clause 2-15: Special Tooling, the Supplier furnishes lists of special tooling and changes in design to the Contracting Officer. The Supplier then promptly complies with any request by the Contracting Officer to transfer title to any items of special tooling by immediately preparing the items for shipment by properly packaging, packing, and marking, in accordance with any instruction issued by the Contracting Officer, and delivers them to the Postal Service as directed by the Contracting Officer.

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Inspecting Goods

Inspection is a time-consuming activity for the Postal Service. The Supplier is responsible for performing or having performed all inspections and tests necessary to substantiate that the items or services furnished conform to contract requirements.

The inspection type required to ensure that an item meets specification requirements is determined before the contract is issued. Items may be subject to:

100 percent inspection

Sampling - various types of sampling may be used (e.g., single, double, or sequential)

No inspection (e.g., if a Supplier is certified through the technique below)

When authorized in writing by the Contracting Officer, and if the contract includes Clause B-5: Certificate of Conformance, the Supplier may use a Certificate of Conformance for supplies or services that would otherwise require inspection. The Supplier's signed certificate must be attached to the inspection or receiving report. By issuing a Certificate of Conformance, the Supplier is certifying that it is furnishing the supplies called for by the contract and that the supplies are of the quality specified and conform in all respects with the contract requirements.

The Postal Service will inspect (for preliminary review at receipt, and further if required) items at destination for:

Type

Quantity

Damage

Operability

Preservation

Packaging

Marking

The Purchase/SCM Team must determine what quality requirements are needed. In most cases, the Supplier performs all necessary inspection and testing for conformance before delivery. The Postal Service reserves the right to inspect the goods at the point of destination. For goods that will not be fully inspected until they are used, the Contracting Officer must ensure that the contract does not imply acceptance of any Supplier's terms tending to limit the period of time during which defects must be reported if redress is to be obtained.

Refer to Loss and Damage Reporting above for procedures for documenting, reporting, and remedying damaged or discrepant shipments and receiving and reporting concealed damage.

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Inspecting Services

The Contracting Officer's Representative (COR) should verify the compliance of services rendered by one of the following methods:

Review delivered product or service for compliance against the Statement of Work (SOW) and performance requirements

Surveillance or audit of the work in progress

Pursuant to Clause 4-5: Inspection of Professional Services, the Contracting Officer may, at any time or place, inspect the services performed and the products, including documents and reports. In addition to any specific standards of quality set out in the contract, the Contracting Officer may reject any services or products that do not meet the highest standards of professionalism.

Other Topics Considered

Shipping topic, Complete Delivery task, Process Step 4: Deliver and Receive Requirements

Acceptance topic, Complete Delivery task, Process Step 4: Deliver and Receive Requirements

Returns topic, Complete Delivery task, Process Step 4: Deliver and Receive Requirements

Process Invoices topic, Make Payment task, Process Step 5: Measure and Manage Supply

Make Payment topic, Make Payment task, Process Step 5: Measure and Manage Supply

Clauses & Provisions

Clause 4-1: General Terms and Conditions (Assignment of Claims)

Clause 2-1: Inspection and Acceptance

Clause 2-5: First Article Approval - Postal Service Testing

Clause 2-9: Definition of Delivery Terms and Supplier's Responsibilities

Clause 2-11: Postal Service Property - Fixed-Price

Clause 2-12: Postal Service Property - Short Form

Clause 2-13: Postal Service Property - Non-Fixed-Price

Clause 2-15: Special Tooling

Clause 2-23: Reimbursement - Postal Service Testing

Clause 4-5: Inspection of Professional Services

Clause B-4: Variation in Quantity

Clause B-5: Certificate of Conformance

Clause B-7: Responsibility for Supplies

Clause B-62: Samples

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