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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 April 1, 2023 the following parts and sections of the SPs and Ps have been revised:
2 — Evaluate Sources
- 2-18.6.5, Clauses, has been revised to include the re-titled Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts. This list of clauses was re-formatted. Additionally, all instances of “must” has been revised to “should” because not all of the clauses listed are regulatory but are necessary, as applicable, for ensuring the Postal Service’s best interests are protected.
- 2-18.13, Clauses and Provisions, has been revised to include the re-titled of Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts and the list of clauses was re-formatted. Additionally, all instances of “must” has been revised to “should” because not all of the clauses listed are regulatory but are necessary, as applicable, for ensuring the Postal Service’s best interests are protected.
- 2-26.4.1, Past Performance, has been revised to include in paragraph b., the requirement for documenting the contract file with evidence of supplier eligibility for award within the review of past performance.
3 — Select Suppliers
- 3-5, Appoint Contracting Officer’s Representatives, changed “delegated” to “appointed.”
- 3-5.2, Evaluate Background and Training, includes a requirement for CORs to retake the COR training at least once every five-years or more frequently if required by the CO (example due to a substantive revision or new version of the course being released). A waiver example is included when a CO may waive the training requirement when the situation warrants.
- 3-5.3, Formally Designate COR, revised the first bullet point into two separate points. Included a disclosure that the contracting officer may, in his or her sole discretion, revoke the appointment of the COR at any time.
5 — Measure and Manage Supply
- 5-13.1, Termination for Convenience, has been revised to include the re-titled of Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts, and more detailed information from the revised clause about the convenience termination process, such as the provision of a 180-day time limit for a supplier to submit a termination for convenience settlement proposal was included. Additionally, all instances of “must” has been revised to “should” because not all the clauses listed are regulatory but are necessary, as applicable, for ensuring the Postal Service’s best interests are protected.
- 5-13.2, Termination for Default, has been revised to include the re-titled Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts. Additionally, all instances of “must” has been revised to “should” because not all the clauses listed are regulatory but are necessary, as applicable, for ensuring the Postal Service’s best interests are protected.
- 5-13.2.5, Contracts Other Than Fixed-Price, title has been revised to
5-13.2.5, Cost-Reimbursement Contracts Terminations, and the topic’s discussion updated to clarify the applicability of Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts. Additionally, all instances of “must” has been revised to “should” because not all the clauses listed are regulatory but are necessary, as applicable, for ensuring the Postal Service’s best interests are protected.
- 5-13.7, Clauses and Provisions:, the title to Clause B-12: Termination for Convenience or Default has been revised to the new title of Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts and the list of clauses was re-formatted.
7 — General Practices
- 7-3.1.7.b, Contracts Exceeding $100,000, has been slightly revised to clarify payment bonds.
- 7-3.1.7.c, Contracts Valued at $100,000 and Less, has been revised to remove the use of alternative payment protections for construction contracts.
- 7-3.1.8, Deposit of Assets Instead of Surety Bonds, has been revised to include performance bonds, a textual change from information service center to appropriate accounting service center for depositing currency, checks, and drafts, and clarifies that an inventory of the items deposited be maintained by the contracting officer placed within the contract file. Also, the text has been corrected for capitalization and spelling errors.
- 7-13, Supply Chain Security, has been revised to update reference of the Postal Service Information Security Requirements for Suppliers guide to new Handbook AS-805-I, USPS Information Security Requirements for Suppliers. The Handbook is available to suppliers at about.USPS.com link.
- 7-14, Privacy Considerations, has been revised to update reference of the Postal Service Information Security Requirements for Suppliers guide to new Handbook AS-805-I, USPS Information Security Requirements for Suppliers.
8 – Commodity Specific
- 8-4.5, Security Considerations, has been revised to correct formatting for Handbook AS-805-A, Information Resources Certification and Accreditation Process, and update reference of the Postal Service Information Security Requirements for Suppliers guide to new Handbook AS-805-I, USPS Information Security Requirements for Suppliers.
9 — Solicitation Provisions
10 — Contract Clauses
- Clause B-12: Termination for Convenience or Default, has been revised to the re-titled Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts to clarify the types of contracts in which it is intended to be used.
- Paragraph (a), the current text providing for a supplier to take curative action within 10 days or a longer period specified by the contracting officer has been deleted. Also, text from Clause 4-1(m) was copied and inserted into paragraph (a).
- Paragraph (d), the term “settlement claim” or “claim” has been replaced by the terms “settlement proposal” and “proposal.” The text has been revised to specify that, with a termination for convenience, the supplier may submit a “termination settlement proposal” and to allow the contracting officer to require that a proposal valued at $100,000 or more be certified. In addition, current language allowing a termination claim to be filed any time after 180 days, subject to contracting officer approval, has been eliminated. In such cases, the contracting officer will have the authority to determine the amount due the supplier and pay that amount.
- Paragraph (f), has been revised to add language making the terms of paragraph (f), subject to the provision of paragraph (d).
- Paragraph (h), has been revised to state that if a termination settlement is not reached, the supplier may submit a claim and request a final decision. Also, if a supplier fails to submit a termination proposal within the 180-day time frame, then the supplier’s right to pursue a claim has been waived. Additionally, the term “review” has been replaced by the term “appeal.”
- Clause B-20: Invoices, has been revised to match the proper information an invoice should contain within Clause 4-1.g. Invoices, subparagraph (2).
- Clause B-69: Events of Default, has been retitled to Clause B-69: Events of Default (Surface Transportation), and revised to remove the explicit cross-reference to Clause B-12: Termination for Convenience or Default since most surface transportation contracts are fixed-price, the termination clause that should be used is Clause 4-20: General Terms and Conditions (Surface Transportation). Additionally, the clause has been revised to clarify that when a supplier with multiple contracts incurs a “default event” with respect to one of them, the Postal Service has the right to terminate all of the supplier’s contracts with the Postal Service, and not only the contract on which the event occurred. Whether to exercise such a right remains within the discretion of the Postal Service. Also, removed the use of PS Form 7465, Transportation Services Subcontract, under paragraph h. regarding any breach by the supplier or subcontractor of any warranty.
- Clause B-74: Payment (Surface Transportation), has been revised to include language on overpayments and interest.
- Clause 2-10: Liquidated Damages, clause B-12 references have been revised to the re-titled Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts.
- Clause 4-1: General Terms and Conditions, has been revised as follows:
Paragraph (a), The new language makes it clear we can seek an equitable adjustment if the Postal Service decides to accept nonconforming goods or services.
Paragraph (b), the “(4)” contained in the penultimate sentence has been deleted because it was a typo.
Paragraph (c)(3), Changes, the term “affects” (“If any such change affects . . . “), has been replaced by “increases or decreases” to clarify that an equitable adjustment may be used for increased or decreased work.
In paragraph, (c)(4), Changes, the term “claim” has been replaced with “request,” for accuracy, as a request for equitable adjustment is not yet a “claim” under the Contract Disputes Act. Also, the second sentence has been eliminated and included the “final payment” portion of Clause 4-1: General Terms and Conditions.
Paragraph (d), titled “Reserved” has been retitled “Time is of the Essence”, and language has been added to make it clear that delivery times and performance are material contract terms, the breach of which justify a termination for default.
Paragraph (g), Invoices, language has been added to indicate that by submitting a final invoice and receiving final payment, all contract obligations have been satisfied.
Paragraph (h), Patent Indemnity, language has been added to include indemnification for infringement of trade dress and misappropriation of trade secrets or confidential information.
Paragraph (i), Payment, language has been added to allow for the Postal Service to collect interest on amounts due by the supplier to the Postal Service. Also, electronic payment is noted as the preferred method, and overpayment language has been added.
Paragraph (l), Termination for Convenience, have been made to mirror similar processes in revised Clause B-12: Termination for Convenience or Default — Cost-Reimbursement Contracts.
Paragraph (m), Termination for Default, language has been added stating that if a termination for default is found to have been improper, the termination will be deemed a termination pursuant to paragraph (l). In addition, text from Clause B-12(a) was copied and inserted into paragraph (m). Also, some additional language was added which explicitly sets forth additional bases for default.
Paragraph (p), Limitation of Liability, has been deleted because it was intended to apply to contracts for commercial items and is contrary to use in other contracts
Paragraph (r), Order of Precedence (OOP), has been revised to (1) The Schedule of Goods/Services section of PS Form 8203; (2) The Statement of Work (SOW) or Statement of Objectives (SOO) (if there are both, the SOO takes precedence over the SOW) and any accompanying Postal Service appendices, attachments, or addenda, to the SOW or SOO; (3) The Postal Service provisions and clauses in the Terms and Conditions; (4) Other Postal Service-provided attachments to this solicitation or contract; (5) Supplier-provided attachments to this contract, such as computer software license agreements, end user licensing agreements, or technical proposals; and (6) The remainder of PS Form 8203.
Paragraph (u), Unauthorized Obligations, is a new paragraph that protects the Postal Service against supplier instruments of terms; such as, End User License Agreements, Terms of Service or other terms of service that suppliers request be attached to contracts with the Postal Service.
- Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders has been revised to correct a reference in paragraph b.(5), Availability, describing the requirement for the supplier to maintain the information identified within paragraph b(1)-(4), versus a. through d., of this clause for the period stated.
- Clause 4-19: Information Security Requirements, has been revised to correct formatting for Handbook AS-805-A, Information Resources Certification and Accreditation Process, and update reference of the Postal Service Information Security Requirements for Suppliers guide to new Handbook AS-805-I, USPS Information Security Requirements for Suppliers.
- Clause 4-20: General Terms and Conditions (Surface Transportation), has been revised to match Clause 4-1: General Terms and Conditions for paragraphs a., b., c., d., and i.
- Clause 7-3: Deposit of Assets Instead of Surety Bonds, has been revised to clarify that the Postal Service versus the contracting officer will hold the assets in an account for the supplier’s benefit.
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