Background
Highway contractors and/or leased trailer suppliers occasionally incur
damages to their trailer equipment through the fault or negligence of the
Postal Service. To be reimbursed, a contractor must provide a properly
documented claim.
Scope
An eligible contractor may claim, and is entitled to receive, the actual
cost of returning his or her trailer to its condition before the damage
occurred or replacing the trailer with one of like condition, whichever
amount is less. Other claims that are available to a contractor under the
contract or any applicable laws are not limited by the procedures outlined in this MI. However, the Postal Service will not process more than
one contract claim for a single incident of damage.
Procedures
Submitting Claims
To submit a claim, a contractor must:
1. Obtain a copy of PS Form 5201, Mail Van Inspection, from the
facility where the damage occurred. Identify the nature and extent
of the damage, the vehicles or equipment involved (by vehicle
number), the contract number, the date the damage was incurred
or discovered and, if known, the name of facility where the
damage occurred.
2. Submit a signed Standard Form (SF) 95, Claim for Damage,
Injury, or Death, within 60 days of the date damage was incurred,
to the manager, Transportation Contracts (MTC), who has
jurisdiction for the particular route. A written statement must be
included certifying that damage was caused by Postal Service
negligence accompanied by the PS Form 5201.
3. Include estimates and all supporting documentation, such as
photos, accident reports, witness statements and/or notes from
physical inspection of the equipment to substantiate the claim.
Obtain verbal approval for claims under $100 from the local
administrative official prior to repairs. For damages over $100,
two repair estimates must be obtained and submitted with the SF
95 to the area MTC.
4. Submit proof to the area transportation contract office, as
required by the MTC, that repairs have been made to trailer
equipment.
Processing Claims
To process a claim, the area MTC must:
1. Review the claim and all supporting documentation provided by
the contractor.
2. Complete PS Form 7440, Contract Route Service Order, within
28 days of receipt.
3. Return the claim to the contractor if further documentation or
information is required as described under Submitting Claims. An
explanation letter denying the claim should be sent if claim is
unacceptable.
4. Adjudicate, in case of disputed claims, in accordance with the
claims and disputes clause of the particular contract.
The MTC makes the final decision on all payments for reimbursement
of trailer damage claims.
Establishing a Repair Reimbursement
Schedule
To establish a repair reimbursement schedule, the area MTC, or a designee, based on the type of contract, may:
1. Negotiate an individual schedule with a highway contractor.
2. Describe in each schedule the specific repair items to be
covered, the length of time the schedule remains in effect, and an
agreed upon reimbursable amount for each item, when possible.
3. Discuss with a contractor any scheduled repairs over the
maximum allowable limits of between $500 - $1,000 per item and
establish each schedule for a recommended term of at least one
year.
4. Ensure all damage claims, for the specified types of damage
covered by the schedule, are applied to the schedule in effect on
the date a claim is made by a contractor.
Allocating Expenses
To allocate expenses, the area MTC must:
1. Show a specific facility's finance number on each PS Form 7440,
along with the charges attributable to the facility, and account
number 53137 (Damage to Highway Vans) if the trailer's damage
can be attributed to a specific facility.
2. Charge the finance number on the PS Form 7440 of the last
facility served by the route prior to discovery of damage when
trailer damage can't be attributed to a specific facility.
3. Apply these procedures to both inter- and intra-area
transportation. Provide an information copy of PS Form 7440 to
each plant being charged for damages. Provide a copy of PS
Form 7440 to all Distribution Networks Offices (DNs) involved if
the route on which equipment is damaged serves two or more DN
areas.
4. Monitor all damage caused by facilities in his or her jurisdiction
and request affected offices to take necessary preventive and
corrective actions to minimize any damage.
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