There are three types of surface contracts: (1) regular contracts; (2) temporary contracts; and (3) emergency contracts.
Regular contracts should be used whenever possible. Regular surface contracts may have a base contract term as determined by the Postal Service. However, due to Service Contract Act considerations, when the purchase/SCM team plans to award a surface contract with a base term of more than 5 years, the team must seek and receive an exemption from the Department of Labor’s Wage and Hour Division.
Temporary contracts may be used only when (a) the need for the service is expected to be 2 years or less, or (b) the need for the service has been established, but the duration, frequency, or volume of mail are not certain. Temporary contracts must be replaced with regular contracts as soon as service requirements are firmly established.
Temporary service contracts may not exceed a term of 2 years and may be terminated by either party by 30-day written notice without entitlement or liability.
Emergency contracts may be entered into only when an emergency exists and must terminate when the emergency ceases and the Postal Service is able to otherwise obtain service. No emergency contract may remain in effect more than 6 months without the approval of the manager, Transportation Portfolio. Circumstances under which emergency contracts may be awarded include the following:
