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As discussed in Section 2-18.11, Ordering Agreements, an ordering agreement is an agreement negotiated between the Postal Service and the supplier which contains the terms and conditions applicable to future contracts. Contracts are formed when orders are placed. Contracting officers issue delivery or task orders, and suppliers propose prices based on unit prices, labor rates, and other applicable costs established in the ordering agreement. The contracting officer may either accept the proposed price or schedule a time to negotiate with the supplier to reach agreement. Contracting officers may place orders against a single ordering agreement or against multiple ordering agreements for the same good or service if required.
As discussed in Section 2-18.11.4, Ordering, competition must be obtained prior to placing an order valued at $10,000 or more and is subject to reviews and approvals in Section 2-41, Obtain Selected Reviews and Approvals. If orders are placed noncompetitively, the order is subject to the noncompetitive policies and procedures discussed in Sections 2-10, Determine Extent of Competition, and 2-41, Obtain Selected Reviews and Approvals. Orders may be competed among firms holding ordering agreements or on the open market.
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