2-19.1 Renewals

The renewal of a contract is the extension of contract performance by the mutual agreement of the parties for a specific period beyond that of the original contract term. When the purchase⁄SCM team foresees the potential need for such an extension, for example, when there is a continuing need for a service (e.g., cleaning, technical) or an ongoing need for a certain type of supply, renewals should be considered and Clause B-78: Renewal should be included in the contract. If, within a reasonable time before the contract expires (6 months, for example), the purchase⁄SCM team decides that an extension is needed, discussions and negotiations should be opened with the supplier to determine whether both parties can agree upon the renewal. During these discussions, the scope of the original contract should not be significantly changed; if the Postal Service’s needs have changed, a new contract should be solicited. The renewal price must be negotiated and adjusted as necessary during the discussions to reflect current market pricing. If the parties agree upon the renewal, the contract is modified to reflect the new agreement. The term of any renewal may not exceed 4 years, and no contract may be renewed more than once.