PART 1. STATEMENT OF WORK 1.1 Overview The U.S. Postal Service (USPS) has entered into an agreement with Global eProcure to provide the USPS access to technology allowing for a private marketplace to advertise highway contract transportation requirements. This web-based solution for transportation management and execution will enable the USPS to electronically tender, negotiate, and award transportation contracts. All highway transportation suppliers who elect to participate on the USPS web-based marketplace agree that the terms and conditions contained in this document apply to the contracts that are awarded on the marketplace (Global eProcure). Any terms and conditions that are unique to the specific requirement (event or load) will be addressed separately on the load information sheet or attached to the load in a schedule or load note on the marketplace. The supplier also agrees that by participating in the bid process of an event with unique requirements, it is agreeing to the terms and conditions specified in the schedule or load notes associated with the event (load). Following are the terms and conditions that apply to all routes advertised on the USPS web-based marketplace (currently Global eProcure). 1.2 Schedule, Frequency, And Service Requirements 1.2.1 Schedule The service requirements will be stated on the Load Information Sheet on the USPS marketplace. The load information sheet may include the type of equipment, the required bid type (e.g., annual rate, round-trip rate, trip rate, rate per mile), the reserve amount, and the bid increments. Also available on the load information sheet may be a link to a Highway Contract Route (HCR) schedule or special load requirements. The HCR schedule will include the stops for each trip and the load/unload requirements (times). 1.2.2 Service Requirements Suppliers should not assume that parking will be available (or allowed) at any postal facility. The estimated total number of miles and per trip miles is given only as information. Prior to submitting a proposal, suppliers should make their own determination regarding the actual number of miles required and time needed to operate the route. The estimated hours are approximately the number of hours needed to operate the trips as they are shown in the schedule. Also included in the total estimated hours is the number of hours needed for dock sortation, loading and unloading. Prior to submitting a proposal, the supplier must determine the actual hours based on its operation required to run the service. SPECIAL NOTE: Any additional hours or miles which may result from the supplier's unique operations should be included in the proposal price. The miles and hours shown on the USPS schedules are the estimated minimum miles and hours necessary to operate the trips and do not include wash-up time, vehicle inspection, etc. 1.2.3 Work Requirements The supplier may be required to load and unload when requested by postal officials. Information on the load and unload times are defined in the schedule that is linked to the load event on the marketplace. a. Approximate daily average loading and unloading times at the headout and terminus office will be described on the schedule. b. Sufficient time for loading and unloading at intermediate office(s) is included in the en route schedule. c. At offices where postal personnel are on duty, supplier will inquire prior to departure to determine if all mail has been tendered. d. If required, the supplier will drop trailers upon arrival at destinations as directed by a postal official and will pick up outbound loads at location(s) directed by a postal official prior to departure. e. In order to maintain schedule, postal personnel may assist with loading and unloading. Assistance with loading and unloading will be at the option of postal personnel. f. Information designating the Administrative Official for this route will be described on the load posted on the marketplace. g. The supplier will be required to report in sufficient time to load and depart on schedule. h. The supplier will be required to load, transport, and unload all classes of mail at the headout, en route, and destinating offices. i. If required, the supplier may be assigned lobby/vestibule keys or CMS wands, to be used in the delivery and collection of mail along the contract route. These are accountable items that must be signed out prior to the start of the designated trip(s) and turned in at the end of the trip(s). Loss, negligent damage, or failure to turn in accountable item(s) as scheduled may result in assessment of damages or termination of the contract. 1.3 Vehicle Requirements And Specifications a. The number and type of vehicles required will be described on the marketplace and the schedule linked to the event (load). The following describes the types of vehicle that are similar to those requested in the past. The supplier will also be required to have readily available sufficient stand-by equipment of the type(s) requested in the specific service requirements to perform extra trips, to permit vehicle maintenance, and to prevent delays in emergencies such as mechanical failures and poor weather conditions. b. Tractors and trailers used on the awarded routes must be spotted as directed by the contracting officer or authorized representative. c. The suspension and tires on vehicle(s) must be compatible with the gross axle weight rating. d. Interior side and front walls of the cargo compartment for trailers and straight trucks must be fully covered with ¼” plywood, floor to ceiling. Installation of a durable flat sheet scuff liner (metal, fiberglass, etc.) is also required and must be bonded over the plywood without any protruding fasteners. Two bands of scuff lining must be applied to the full length of each interior side wall and the front wall; one band 26 inches wide positioned from the floor to a height of 26 inches and a second band 6 inches wide positioned immediately above the upper retainer rail or, in the absence of an upper rail, 67 inches on center above the floor. The Postal Service intends to transport mail loaded on pallets, in wheeled containers, metal and non-metal containers, in sacks, and loose loaded. The cargo compartment must be constructed so that it is protected from damage during loading and unloading by either manual or mechanized methods. e. The cargo compartment must be equipped with a load restraint system as indicated in the Vehicle Specifications (Attachment B). The cargo compartment must also be equipped with E-type shoring bar(s) and ratchet type restraining straps (see Vehicle Specifications, Attachment B). Trailers must be equipped with either two (2) rows of e-tracks or logistic posts with two (2) straps placed every 10 feet at minimum. f. The rear door for trailers and straight trucks must be full roll-up type equipped with a security locking device, safety chain, and pull-down strap. g. Each cargo compartment (for trailers and straight trucks) must have interior lights which are adequate to provide sufficient light for safe loading and unloading and operate off the electrical system of the vehicle. h. Each vehicle must, at a minimum, be licensed to carry the combined vehicle curb weight, crew weight, and payload weight specified in the requirements. The suspension and tires on vehicles must be compatible with the gross axle weight rating. i. All equipment shall be presented for inspection at the location and time indicated by the contracting officer or authorized representative. Equipment used on the contract must at all times be maintained in a condition that reflects favorably on the Postal Service and is acceptable to the contracting officer or authorized representative for the full term of the contract and any subsequent renewals that might be negotiated. j. In the event the Postal Service deems it necessary to tender to the supplier for transportation on this route trailers other than those provided by the supplier, the supplier shall not be liable for trailer license, temporary permits, or other fees imposed by state or local agencies. The supplier will not be tendered, nor transport, any trailer which does not meet the minimum requirements for safety as required by the Motor Carriers Safety Regulations, and by other requirements imposed by state or local governments. No additional compensation will be allowed the supplier for transporting trailers other than those the supplier furnishes, nor will any deduction be made from the contract rate of pay, when the Postal Service tenders to the supplier trailers other than those furnished by the supplier, unless the tender of such trailers is because the supplier fails to provide the contractually obligated number of trailers to the Postal Service. In the latter event, a sum equal to the cost the Postal Service incurs in furnishing trailer(s) will be deducted from the pay normally due the supplier. k. All vehicles used for this service must be licensed for the maximum weight allowed by applicable state laws. l. The supplier will be required to provide as a minimum the vehicle(s) described on the marketplace and in the schedule linked to the event (load). 1.3.1. Tandem Axle Tractor (Double Drive) (N/A cubes) a. The minimum acceptable gross vehicle weight rating (GVW/GCW) for the tractor(s) listed above must equal or exceed the combined weight of the following: 1. The curb weight of the tractor; 2. An operating crew's weight of 600 pounds; 3. The curb weight of the required trailer (if trailers are required); and 4. A payload weight of 47,000 pounds. SPECIAL NOTE: The tractor curb weight includes the weight of the tractor with all installed attachments, accessories, equipment and a full complement of fuel, lubricants and coolant. b. Tractors used under this contract must be equipped with a sliding fifth wheel so that trailers of any legal length may be transported. 1.3.2. Single Axle Tractor (N/A cubes) a. The minimum acceptable gross vehicle weight rating (GVW/GCW) for the tractor(s) listed above must equal or exceed the combined weight of the following: 1. The curb weight of the tractor; 2. An operating crew's weight of 600 pounds; 3. The curb weight of the required trailer (if trailers are required); and 4. A payload weight of 40,000 pounds. SPECIAL NOTE: The tractor curb weight includes the weight of the tractor with all installed attachments, accessories, equipment and a full complement of fuel, lubricants and coolant. b. Tractors used under this contract must be equipped with a sliding fifth wheel so that trailers of any legal length may be transported. 1.3.3. Straight Trucks For straight trucks, the supplier may be required to provide the cargo compartment measurements described below: Cube Payload EXTERIOR INTERIOR Max, Length Max. Width Max. Height Min. Length Min. Width Min. Height 600 7,200 24 8.5 13.5 12.0 7.5 7.0 800 9,600 28 8.5 13.5 16.0 7.5 7.0 1000 12,000 32 8.5 13.5 20.0 7.5 7.0 1200 15,000 36 8.5 13.5 24.0 7.5 7.0 1350 15,000 36 8.5 13.5 24.0 7.5 7.0 For vans that are 800 cubes or above, the bed height from the ground must be a minimum of 48 inches and a maximum of 52 inches. The minimum acceptable gross vehicle weight rating (GVW/GCW) for the vehicles listed above must equal or exceed the combined weight of the following: 1. The curb weight of the vehicle; 2. An operating crew's weight of 600 pounds; and 3. The payload weight of indicated above for the specific vehicle. SPECIAL NOTE: The vehicle curb weight includes the weight of the tractor with all installed attachments, accessories, equipment and a full complement of fuel, lubricants and coolant. For the vehicles specified above, each cargo compartment must contain three louvers that can be opened and closed in order to provide proper ventilation for the transportation of live mailable matter. The louvers must be located in the upper side front left, the upper side front left, and the upper side front right, and the upper side right rear of the cargo compartment. The louvers must be at least 6 inches by 10 inches in size. 1.3.4. Trailers a. The required trailer size will be described on the web-based marketplace. Trailer specifications also are appended to this agreement. b. Each trailer must contain three louvers that can be opened and closed in order to provide proper ventilation for the transportation of live mailable matter. The louvers must be located in the upper side front left, the upper side front right, and the upper side right rear of the trailer. The louvers must be at least 6 inches by 10 inches in size. c. Interior side and front walls of the trailer must be fully covered with 1/4" plywood, floor to ceiling. Installation of a durable flat sheet scuff liner (metal, fiberglass, etc.) is also required and must be bonded over the plywood without any protruding fasteners. Two bands of scuff lining must be applied to the full length of each interior side wall and the front wall; one band 26 inches wide positioned from the floor to a height of 26 inches and a second band 6 inches wide positioned immediately above the upper retainer rail or, in the absence of an upper rail, 67 inches on center above the floor. The Postal Service intends to transport mail loaded on pallets, in wheeled containers, metal and non-metal containers, in sacks and loose loaded. The cargo compartment must be constructed so that it is protected from damage during loading and unloading by either manual or mechanical methods. d. Trailers must be equipped with a load restraint system with door saver as indicated in Specification B and Specification D. The cargo compartment must also be equipped with 0 metal E-type shoring bar(s) and two (2) ratchet type restraining straps for every ten (10) feet. e. Trailers used on this contract must have rear doors that are equipped with security locking device, safety chain and pull-down strap. f. Trailer landing gear must be equipped with sand pads. g. NOTE: Refrigerator-type trailers are not acceptable. 1.4 General Requirements And Prohibitions The supplier shall provide transportation services as specified in this Statement of Work and Specifications. 1.4.1. Sanctity of the Mail The supplier shall carry all mail tendered for transportation under this contract, whatever may be its size and weight, with certainty, celerity, and security, in accordance with the operating schedule and between the points fixed in the schedule, as modified from time to time pursuant to this contract. The supplier, when so directed by the contracting officer, shall (i) load and unload mail, (ii) make the exchange of mail, and (iii) perform all minor administrative services as may be necessary to track and trace the mail. Passengers, freight and other traffic, if authorized by this contract, may be accommodated, but shall not delay the mail or reduce the contracted cubic capacity. In the event that this is a contract for carriage of mail by domestic water vessel, the supplier shall serve terminal post offices without regard to distance from the nearest landing, unless the Postal Service has previously assumed such a terminal service, and shall serve all intermediate post offices along the route located not more than one-fourth of a mile from the vessel landing. 1.4.2 Extra Trips Supplier will be required to perform additional trips of service as outlined below: The supplier must proceed to perform any extra trips ordered by the contracting officer or authorized representative. The supplier must provide such service departing from the office having the requirement for service within (4) hours after notification by the contracting officer or authorized representative. Extra round trips of service shall be performed within the total elapsed time (total hours) reflected in the regular trip schedule. 1.4.3. Protection of the Mail The supplier shall protect the mail from loss, depredation, or damage. The mail shall be transported in an enclosed, water-proof compartment, equipped with secure locking devices, which shall be kept locked at all times except when access thereto is required for performance of service under this contract. The supplier shall await completion of all delayed mail connections except when otherwise directed by the contracting officer or authorized representative, or the supplier's vehicle is carrying passengers on a fixed schedule. If the supplier is authorized to carry passengers, the mail must be carried in a compartment separate from the passengers so that they cannot have access to the mail. The supplier shall not transport hitchhikers in vehicles while the vehicles are being used in the performance of service on this contract. 1.4.4. Appearance of Equipment The supplier shall at all times maintain its transportation equipment used under this contract so as to present a professional and safe appearance, as determined by the contracting officer (or his designee) conducting inspection of the transportation equipment. The supplier may use a sign on its vehicle(s) that states "United States Mail," but only when vehicle(s) are being used in the performance of service under this contract. Vehicle(s) (including both tractors and trailers) which are painted red, white and blue must have inscribed on their doors in black letters at least one inch high the following words: "United States Mail Contractor." Trailers so painted must also bear the same inscription on the front of the trailer in black letters two inches high and placed sufficiently high to be visible above the tractor unit. 1.4.5. Alcohol and/or Drugs The supplier and his/her employees must not perform contract operations while under the influence of alcohol, narcotics, or any other substance that tends to impair judgment; nor will they consume any of the foregoing while engaged in contract operations. 1.4.6. Weapons and Explosives No person while on Postal property, or while performing services under a Postal contract, shall carry firearms, other dangerous or deadly weapons, or explosives, either openly or concealed. 1.4.7. Carriage of Letters The supplier shall not carry letters outside of the mails. 1.4.8. Denial of Access to the Mails The supplier shall deny access to the mail to any employees or personnel when required to do so by the contracting officer. 1.4.9. Suitability of Contract Personnel In conducting operations under this contract, the supplier shall not employ any individual who is: lacking sufficient ability to perform properly the required duties; not a reliable and trustworthy person of good moral character; or barred by law or Postal Service regulations from performing such duties. The Postal Service has a Zero Tolerance Policy regarding workplace violence. Suppliers and their employees must conduct themselves in a professional and business-like manner, since poor conduct has a direct reflection on the Postal Service. Zero Tolerance means that we will not ignore any incident of verbal or physical action on the part of any supplier (or the supplier’s employee) that could cause injury to another. Suppliers and their employees are required to maintain a neat, clean and professional appearance reflecting a positive image while engaged in contract operations. Driver uniforms are not required under this contract. Suppliers who require their drivers to wear uniforms may include the cost only in the general overhead line. 1.5 Liability For Equipment Damage And Repairs a. Either party's liability for loss of or damage to the equipment of the other party shall be governed by this subparagraph a as follows: (1) The Postal Service shall be liable to the supplier for loss of or damage, exclusive of fair wear and tear, to equipment of the supplier only when such loss or damage is caused by a negligent act or omission of the Postal Service, or of its employees, agents, suppliers, or subcontractors. (2) The supplier shall be liable to the Postal Service without regard to fault or negligence, for the loss of or damage, exclusive of fair wear and tear, to equipment furnished by the Postal Service while the equipment is in the custody and control of the supplier. For the purposes of this subparagraph a, equipment furnished by the Postal Service includes equipment owned or leased by the Postal Service, and equipment of other Postal Service mail transportation suppliers or of their subcontractors. (3) The Postal Service may deduct from any compensation otherwise due the supplier a sum or sums equal to the amount(s) for which the supplier is liable to the Postal Service under subparagraph a. (2). b. Either party's liability for ordinary repairs to or maintenance of the equipment of the other party shall be governed by this subparagraph b as follows: (1) The supplier, and not the Postal Service, shall be liable for the cost of all repairs to or maintenance of equipment furnished by the supplier under this contract (including any equipment leased by the supplier from the Postal Service). (2) In the event that any equipment used by the supplier breaks down en route between postal facilities, the supplier shall secure any tires, tire repairs, or other ordinary repairs or maintenance needed to put the equipment back in service at the supplier’s cost. This obligation extends to all equipment used by the supplier under this contract, including equipment owned or leased by the Postal Service, and equipment of other Postal Service mail transportation suppliers or of their subcontractors. (3) If, pursuant to subparagraph b.(2) above, the supplier repairs equipment owned or leased by the Postal Service, or equipment of other Postal Service mail transportation suppliers or their subcontractors, the Postal Service shall, upon submission of a properly documented claim to the contracting officer, reimburse the supplier for the cost of such repairs. Such reimbursement shall include additional costs, if any, associated with delays in securing repairs, when such delays are beyond the control and without the fault or negligence of the supplier. The supplier must obtain the contracting officer's approval for repairs in excess of $500.00 to Postal Service equipment or equipment of other Postal Service mail transportation suppliers or of their subcontractors. 1.6 Screening/Identification Requirements The Postal Service entrusts transportation contract employees to handle the mails and operate motor vehicles on behalf of the Postal Service. Postal Service policy requires that all such persons be screened to determine eligibility as drivers and to allow access to the mails and mail processing facilities. Suppliers and contract employees who transport mail matter or are allowed access to postal operational areas must be screened in accordance with Management Instruction PO-530-2004-2, Screening Highway Transportation Contract Employees, as amended, revised, or reissued from time to time. 1.7 Safety Requirements The supplier shall conduct its operations under this contract in full compliance with (i) the United States Department of Transportation (DOT) Motor Carrier Safety Regulations, as set out in 49 C.F.R. Parts 390 - 397, (ii) all other applicable federal laws and regulations, and (iii) all applicable state laws and regulations. The supplier shall maintain its vehicles in mechanically sound condition and, upon receipt of written notice from the DOT or the contracting officer, shall take such action as is necessary to maintain its equipment in a safe condition and comply with such written notice. Upon written notice from the contracting officer, the supplier shall submit any or all of its equipment, as specified in such notice, for inspection by the Postal Service at a location designated in such notice. In addition, the supplier shall meet each and every one of the following requirements: 1.7.1. Drivers Drivers of motor vehicles must be at least 21 years of age, except that (i) if the vehicle driven is used exclusively under contract with the Postal Service, and (ii) the manufacturer's gross vehicle weight rating is 10,000 pounds or less, the driver must be at least 18 years of age. Drivers must be properly licensed to operate the vehicles they will drive under this contract. 1.7.2. Lightweight Mail Trucks A lightweight mail truck is a vehicle whose manufacturer's gross vehicle weight rating is 10,000 pounds or less. Suppliers and drivers of motor vehicles which are used to transport mail under a contract with the Postal Service who are exempt from compliance with DOT regulations are required to comply with the following minimum requirements: (1) Qualifications of Drivers Drivers must meet the minimum physical requirements imposed by state or local authorities to obtain permits to operate the vehicles they will drive under this contract. (2) Driving of Motor Vehicles (a) Driving Rules Drivers must obey all laws, ordinances, and regulations of the jurisdiction in which they operate motor vehicles under this contract. They must not be permitted to drive when fatigue, illness, or other causes impair their ability or alertness, or when under the influence of drugs or intoxicating beverages. Any driver convicted of driving while under the influence of drugs or intoxicating beverages may be denied access to the mail as a driver for up to five years from the date of offense. (b) Inspection of Equipment Drivers shall satisfy themselves that the emergency equipment is in place and ready for use and the following parts and accessories are in good working order: (i) Servicing and parking brakes (ii) Steering mechanism (iii) Lighting devices and reflectors (iv) Tires (v) Horn (vi) Windshield wipers (vii) Rear vision mirrors 1.7.3. Safe Loading and Security of Equipment Drivers responsible for loading or assisting in the loading of their vehicles must ensure that loads are properly distributed and secured and that doors, tailgates, and other equipment are fastened properly to permit safe operations. 1.7.4. Hazardous Conditions Extreme caution, even to the extent of stopping operation if necessary, shall be exercised by drivers when hazardous road or weather conditions prevail. 1.7.5. Stopped Vehicles Whenever a motor vehicle becomes disabled and cannot be removed from the traveled portion of the highway or the shoulder thereof, for any cause other than necessary traffic stops, the driver shall immediately activate the vehicular hazard warning signal flashers and continue the flashing until the driver places the warning devices as follows: (1) During Daylight Hours Three bi-directional reflective triangles, or three lighted fusees or three liquid burning flares placed in the center of the traffic lane 100 feet to the rear and 100 feet in front of the vehicle. (2) When Lighted Lamps Are Required Three bi-directional reflective triangles, or six lighted fusees or three liquid burning flares placed 100 feet in front, 100 feet to the rear, and along the side of the vehicle. Warning devices should be placed at least 100 feet but no more than 500 feet from the vehicle, but in all should allow ample warning to other drivers regardless of a curve, crest of a hill, or obstruction of view. 1.7.6. Emergency Equipment Vehicles shall be equipped with no less than the following ready for use: (1) Fire Extinguisher One four-pound CO2 or one four-pound dry chemical fire extinguisher. (2) Spare Fuses One of each kind of fuse (or equivalent) used on the vehicle. (3) Tire Chains One set for at least one drive wheel on each side of the vehicle. The contracting officer may exempt vehicles that are operated in areas where the weather does not require tire chains. (4) Warning Devices One of the following combinations: (a) Three bi-directional emergency reflective triangles; or (b) At least six fusees; or (c) Three three liquid burning flares. Flame producing devices shall not be carried on a motor vehicle using compressed gas as a motor fuel 1.7.7. Hours of Service for Drivers Drivers will not be permitted or required to exceed the hours of “on duty” and “driving time” as specified by the Department of Transportation (DOT). 1.8 Insurance Requirements If this contract requires the operation of a motor vehicle, the supplier shall establish and maintain continuously in effect a policy or policies of liability insurance for all motor vehicles to be used under this contract providing, at a minimum, the following coverage: a. Vehicles with a gross vehicle weight rating of under 10,000 pounds: (1) Limit for bodily injuries to or death of one person: $100,000 and (2) Limit for bodily injuries to or death of all persons in any one accident: $500,000 and (3) Limit for loss or damage in any one accident to property of others (other than mail): $100,000. In the alternative to (1), (2) and (3) above, a combined single limit (CSL) for bodily injury to, or death of persons and loss or damage of property per single accident: $600,000. b. Vehicles with a gross vehicle weight rating of 10,000 pounds or more, require a minimum of $750,000 Combined Single Limit (CSL). Coverage must meet all minimum insurance requirements imposed by federal, state and local law or regulation when such requirements exceed the minimum coverage required by the Postal Service as stated above. The supplier shall furnish to the contracting officer, prior to commencement of service under this contract, and thereafter as the contracting officer may require, proof that the supplier has all required insurance, plus a copy of the applicable policy or policies. 1.9 Vehicle Inspection By Law Enforcement Officials Heightened security concerns have resulted in increased occurrences of law enforcement inspections of cargo areas of mail hauling vehicles. To protect the security and sanctity of the mails, USPS Standard Operating Procedures (SOP) set forth national policy, procedures, and instructions for Highway Contract, Rail and Postal Vehicle Service (PVS) drivers operating USPS authorized mail hauling vehicles subject to inspections by law enforcement officials. For vehicles under the seal program, this requires law enforcement officials (local, state and federal) to cut postal seals to view the cargo area, subsequently imposing potential risks to the security and sanctity of the mail, particularly Registered Mail. Guidelines for these procedures are in Attachment D. 1.10 National Security Heightened security concerns have resulted in increased occurrences of law enforcement inspections of cargo areas of mail hauling vehicles. To protect the security and sanctity of the mails, USPS Standard Operating Procedures (SOP) set forth national policy, procedures, and instructions for Highway Contract, Rail and Postal Vehicle Service (PVS) drivers operating USPS authorized mail hauling vehicles subject to inspections by law enforcement officials. For vehicles under the seal program, this requires law enforcement officials (local, state and federal) to cut postal seals to view the cargo area, subsequently imposing potential risks to the security and sanctity of the mail, particularly Registered Mail. Guidelines for these procedures are attached in Part 4. 1.11 Cell Phone Requirement Suppliers must ensure that each driver has a working, rechargeable cell phone with them on their routes that is continually turned on and available for use. The phone service for the phones should be that which provides the most comprehensive coverage for the area serviced by that company. However, minimally the phone service must have included, and activated, sufficient roaming function as to cover the entire range of service for the truck routes. Each phone should be equipped with sufficient peripheral devices to ensure its continual and safe operation, as appropriate for the jurisdictions in which it operates. The phone service must have voice mail enabled and accessible by the driver. The cost of these required cell phones and any monthly service charges are considered supplier overhead and will not be reimbursed separately by the Postal Service over and above the annual contract cost. 1.12 Additional Information a. The contract rate must include all elements of cost the supplier expects to incur in performing the service. The supplier must include the total anticipated costs (based on the total regular hours) for vacation time or other fringe benefits in the contract rate. Adjustments to include these costs in the second or subsequent years of the contract will not be allowed. Included in the cost comprising the total contract rate are those associated with the payment for vacation time and other fringe benefits as outlined in the applicable Department of Labor Wage Determination. The wage determinations for highway transportation service with the U.S. Postal Service are accessible through a link on the Global eProcure website b. The supplier, depending on actual route operations, may be required to pay round trip compensation to drivers even though the contract requires one-way trips. In this, and all other cases, it is the SUPPLIER'S RESPONSIBILITY to verify DOL requirements and include the cost in the proposed price. Adjustments to include these costs at a later time will not be allowed. c. The following requirements apply to vehicle(s) used on this contract whose Gross Vehicle Weight Rating (GVWR) is 10,001 pounds or greater: In order to be awarded a contract, a supplier may not be rated unsatisfactory on the Department of Transportation (DOT) Unsatisfactory Safety Rating Report at that time when the contracting officer makes the determination of responsibility. The supplier must provide a DOT number. If the supplier does not have a DOT number, a copy of the application form (FORM MCS 150, Motor Carrier Identification Report) submitted to DOT must be provided to the contracting officer. Immediately upon receipt, but not more than six months from the date of the application, the DOT number must be provided to the contracting officer. Failure to provide the DOT number within six months of application may result in termination of the contract for default. If a supplier receives a DOT unsatisfactory rating during the term of the contract, the unsatisfactory rating must be resolved within six months of that rating. Failure to resolve the unsatisfactory rating may result in termination of the contract for default. During the term of the contract the Postal Service, its designated representative, or the DOT may randomly inspect vehicles used in the performance of service on this contract. If the equipment fails to meet DOT safety requirements, the equipment must be placed "Out of Service" at the expense of the supplier and suitable replacement equipment must be provided. Failure by the supplier to meet DOT safety standards on equipment may result in the termination of this contract for default. During the term of the contract, the Postal Service may require the supplier to attend up to three safety seminars sponsored by the Postal Service and/or DOT, at no additional charge to the Postal Service. 1 Page