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Summary of Changes

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 February 28, 2018 the following sections of the SPs and Ps have been revised:

2 — Evaluate Sources

  • 2-18.8, Indefinite-Delivery Contracts, has been revised and includes new subsections as follows:
  • 2-18.8.1, General, has been revised from the original text within 2–18.8, Indefinite-Delivery Contracts, to provide additional guidance on what is established within an indefinite-delivery contract, such as, (1) whether the award is for a single indefinite-delivery contact or multiple indefinite-delivery contracts; (2) the need for defined procedures for ordering, billing, and payment methods; and as applicable, designated ordering officials; (3) the pricing structure for orders (such as, firm-fixed price, time and material, labor-hour, cost reimbursement, etc.); and, (4) the differences between orders issued by contracting officers and orders placed through alternative methods (such as, designated ordering officials, online catalogs, automated processes, etc). In addition, there is a general discussion on funding procedures; and, the use of the estimated total dollar value of the contract to determine appropriate reviews and approvals.
  • 2-18.8.2, Types of Indefinite-Delivery Contracts, has been revised from the original text of 2-18.8, Indefinite-Delivery Contracts, to provide additional guidance on minimums and maximums within the indefinite-quantity contract type definition.
  • 2-18.8.3, Pricing, has been revised from the original text in 2-18.8, Indefinite-Delivery Contracts, to provide a discussion on pricing structures (such as, firm-fixed price, time and material, labor-hour, cost reimbursement, etc.), the inclusion of relevant payment clauses for those pricing structures, and examples to assist contracting officers with determining fair and reasonable pricing for the indefinite-delivery contract.
  • 2-18.8.4, Award of a Single Indefinite-Delivery Contract or Multiple Indefinite-Delivery Contracts, is new and discusses the factors that the purchase/SCM teams should consider during purchase planning, the business circumstances that support the award of a single or multiple indefinite-delivery contract(s), and the need to document the decision during purchase planning of whether to award a single or multiple indefinite-delivery contract(s).
  • 2-18.8.5, Determining Whether to Compete Orders – Multiple Awards, is new and discusses how further competition of orders should be considered by the purchase/SCM team. Examples are provided that support a decision to compete or not.
  • 2-18.8.6, When Order Issuance Will Be Determined Through Further Competition – Multiple Awards, is new and discusses the use of Clause 2-39, Ordering, specifying evaluation factors for orders, and the need for contracting officers to document the rationale supporting a decision to exclude one or more of the awardees from competition; or the selection of a single awardee for a particular order.
  • 2-18.8.7, Ordering, is new and provides a cross-reference to 4.1.4, Orders against Indefinite-Delivery Contracts, and the discussion therein for orders against a single award and multiple award indefinite-delivery contracts.
  • 2-18.11, Ordering Agreements, has been revised with minor edits throughout, specifies that reviews and approval are required and includes electronic ordering.
  • 2-21.4, Management Involvement, was revised to describe how the Commodity Sourcing Strategy Planning process is used in category management and SM efforts to enhance supplier diversity in our contracting processes.
  • 2-21.8, Training and Development, was revised to clarify supplier diversity training requirements for buying functions.
  • 2-21.9, Tracking Progress, was revised to replace “quarterly” with “annual” goal setting and “semi-annual” monitoring.
  • 2-21.11, Recognition, has minor changes to clarify the process.
  • 2-39, Subcontracting with SMWOBs, was revised to clarify reporting requirements and change report submission requirements from “quarterly” to “semi-annually”.
  • 2-39.1, Subcontracting Plans, was revised to clarify reporting requirements, change report submission requirements from “quarterly” to “semi-annually”, and define how a total dollar range may be used in planning under indefinite-delivery contracts.
  • 2-39.4, Clauses and Provisions, was revised to require these provision and clauses to be included in all solicitation and contracts.
  • 2-41, Obtain Selected Reviews and Approvals, has been revised, reorganized, and includes new subsections as follows:
  • 2-41.1, General, has been revised with minor edits.
  • 2-41.2, Estimated Total Dollar Value, has been revised from the original language in 2-41.2.2, Reviews and Approvals, to further define the estimated total dollar value of a contract, and requires contracting officers to use this value when they determine who the appropriate review and approval authority should be for a particular contractual action.
  • 2-41.3, Reviews and Approvals, has been revised for clarity and reorganized from the original language in 2-41.2, Reviews and Approvals of Contractual Actions, and subsections 2-41.2.1 through 2–41.2.4. New subsections were included to expand upon the review and approvals required for delivery and task orders against indefinite-delivery contracts.
  • 2-41.3.1, Review and Approval Authorities, has been revised from the original language in 2-41.2.2, Reviews and Approvals, and includes new language describing; who would have review and approval authority, that reviews and approvals are based upon the estimated total dollar value of the proposed action, that reviews and approvals subsequent to award will depend on the dollar value of the individual action, and in no case may the individual seeking the review and approval be the same individual performing the review and approval. The latter is to ensure a separate and independent evaluation as to the review and approval.
  • 2-41.3.2, Reviews and Approvals of Contract Awards, Modifications, and Ordering Agreements, has been revised from the original language in 2-41.2.2, Reviews and Approvals, and describes the review and approval thresholds for contract awards, modifications, and ordering agreements.
  • 2-41.3.3, Reviews and Approvals of Purchase Plans, has been revised from the original language in 2-41.3.2, Purchase Plans, and includes a discussion on out-of-scope modifications and language requiring review and approval by VP, SM for values of $10 million or more.
  • 2-41.3.4, Reviews and Approvals of Delivery and Task Orders Against Indefinite-Delivery Contracts, is new and includes language within its subsections that discuss the requirements for reviews and approvals on orders for single award and multiple award indefinite-delivery contracts, and, the reviews and approvals for the determination for placement of an order to a single supplier where orders are competed under multiple award indefinite-delivery contracts.
  • 2-41.3.4.1, Reviews and Approvals of Orders – Single Awards, is new and discusses the review and approval process for orders issued by a contracting officer under a single award indefinite-delivery contract. Introduces a VP SM notification requirement for firm-fixed priced orders valued at $10 million or more where a review and approval is not required. Establishes reviews and approvals for orders issued by a contracting officer that are valued at $1 million or more, when the contracting officer is negotiating the price of any single order based upon the pricing structure or negotiating a firm-fixed price order that could be based upon a combination of labor hour rates, labor category mix, or other direct costs. Those orders will follow the review and approval process as described within 2-41.3.2, Reviews and Approvals of Contract Awards, Modifications, and Ordering Agreements. In addition, the section describes the criteria to be used for the review and approval of the order as documented in the Order Placement Memorandum (OPM).
  • 2-41.3.4.2, Reviews and Approvals of Orders – Multiple Awards, is new and discusses the review and approval process for orders issued by a contracting officer under a multiple award indefinite-delivery contract. Orders valued at $1 million or more require reviews and approvals by a contracting officer with appropriate delegated authority. If the order is under $1 million, reviews and approvals are not required beyond that of the contracting officer with appropriate delegated authority. In addition, the section describes the criteria to be used for the review and approval of the order as documented in the OPM.
  • 2-41.3.4.3, Reviews and Approvals for the Determination for Placement of an Order to a Single Supplier – Multiple Awards, is new and discusses the process for when an order valued at $1 million or more where the contract provides for the opportunity for further completion of orders, is planned to be issued to a single supplier without further competition. Introduces the requirement to support the rational for order placement with a single supplier valued at $1 million or more with a compelling business justification (CBJ) that is prepared by the client with concurrence from a PCES Manager within the client’s organization. A CBJ is not required for orders less than $1 million. Introduces the requirement for a written contracting officer’s determination (COD) as to whether placing the order is in the best business interest of the Postal Service for all orders issued to a single supplier. Establishes the review and approval of the COD for orders of $1 million up to $5 million by the SM CMC Manager, orders of $5 million up to $10 million by the SM Portfolio Manager, and for orders of $10 million or more by the VP, SM. A decision to compete among a limited number of awardees under multiple award indefinite-delivery contracts also requires a COD, but does not require a separate review and approval.
  • 2-41.3.5, Terminations, has been revised with minor edits throughout from the original language in 2-41.3, Terminations.
  • 2-41.3.6, Exemptions, is new and describes the types of contractual actions that are exempt from the review and approval requirements.
  • 2-41.4, Review and Approval Process for Competitive Actions, has been revised from the original language in 2-41.2.3, Review and Approval Process for Competitive Actions, by adding two new elements that the review and approval process must focus on: (1) that the contract file adequately documents which supplier offers the best value to the Postal Service; and, (2) whether the file contains a determination that the contract price is fair and reasonable.
  • 2-41.5, Review and Approval Process for Noncompetitive Actions, has been revised from the original language in 2-41.2.4, Review and Approval Process for Noncompetitive Actions, by adding the requirement that the contract file contain a determination that the price is fair and reasonable.
  • 2-41.6, Actions Exceeding a Contracting Officer’s Delegated Authority, has been revised with minor editorial changes for clarity from the original language in 2-41.4, Actions Exceeding a Contracting Officer’s Delegated Authority.
  • 2-41.7, Reporting and Certifying Contractual Actions Valued at $25 Million or More, has been revised from the original language in 2-41.5, Reporting and Certifying Contractual Actions Valued at $25 Million or More, to provide clarity for reporting indefinite-delivery contracts and their orders.
  • 2-41.8, Consultation with Assigned Counsel and the General Counsel/Law Department, has been revised from the original language in 2-41.6, Consultation with Assigned Counsel and the General Counsel/Law Department, to include two additional bullets: (1) to consult Counsel for modifications of standard clauses; and, (2) to consult Counsel for review of communications with the supplier on claims and the final decision letters.
  • 2-41.9, Other Topics Considered, retains the original language found in 2-41.7, Other Topics Considered.

4 — Deliver and Receive Requirements

  • 4-1, Ordering, has been revised, reorganized, and includes new subsections as follows:
  • 4-1.2, Federal Standard Requisitioning and Issue Procedure, has been revised to update the title of Handbook AS-701, Material Asset Management to Asset Management and include a reference to Handbook F-3, Treasury Management.
  • 4-1.3, Contract Vehicles for Ordering, has been revised to include alternative methods of ordering and a discussion on funding.
  • 4-1.4, Orders Against Indefinite-Delivery Contracts, has been revised, reorganized, and includes new areas of discussion as follows:
  • 4-1.4.1, General, has been revised to define a delivery and task order, and includes a discussion on contracting officer and alternative methods for placement of orders. Additionally, this subsection provides references to other sections on the use of single award and multiple award indefinite-delivery contracts and ordering procedures.
  • 4-1.4.2, Ordering, is new and discusses how and when orders may be placed, describes order completion dates and how the order may exceed the indefinite-delivery contract’s period of performance, and a discussion on contracting officer and alternative methods for placement of orders.
  • 4-1.4.3, Orders Against Single Award Indefinite-Delivery Contracts, has been revised, reorganized, and includes new subsections as follows:
  • 4-1.4.3.1, General, is new and incorporates some of the original language in 4-1.4.2, Single Indefinite-Delivery Contracts, where orders follow the noncompetitive or competitive code based upon the indefinite-delivery contract unless otherwise re-classified; that orders under a single award does not require competition; and, that orders placed under alternative methods must follow defined procedures established in the contract.
  • 4-1.4.3.2, Ordering Procedures and Documentation – Single Awards, is new and discusses procedures and documentation for orders against single award indefinite-delivery contracts, and provides additional information on the OPM requirements.
  • 4-1.4.4, Orders Against Multiple-Award Indefinite-Delivery Contracts, has been revised, reorganized, and includes new subsections as follows:
  • 4-1.4.4.1, General, is new and incorporates some of the original language in 4-1.4.3, Multiple Indefinite-Delivery Contracts, where orders follow the noncompetitive or competitive code based upon the indefinite-delivery contract unless otherwise re-classified; includes new language that addresses the competition of orders issued by contracting officers; and, that orders placed under alternative methods must follow defined procedures established in the contract.
  • 4-1.4.4.2, Decision for Order Placement – Multiple Awards, is new and includes guidance on when further competition of an order may be in the interest of the Postal Service, and when further competition may not be warranted. Examples of such circumstances are provided. In addition, the subsection provides further discussion on the CBJ and COD requirements.
  • 4-1.4.4.3, Ordering Procedures and Documentation – Multiple Awards, is new and describes that orders from multiple award indefinite-delivery contracts may be issued by the contracting officer with competition, issued by the contracting officer without competition, and may be placed by designated ordering officials or through automated processes when defined procedures are established in the contract. Additionally, this subsection further describes procedures and documentation requirements for the OPM.
  • 4-1.4.5, Communication and Reporting, is new and discusses a streamlined notification process for unsuccessful offerors on orders under multiple award indefinite-delivery contracts; and, that the PAEA reporting requirements applies to any delivery or task order valued at $25 million or more.
  • 4-1.4.6, Orders With Another Agency, is new and describes that the Postal Service may place orders under an indefinite-delivery contract awarded by another federal agency subject to the terms and conditions of that particular contract and the procedures defined there in. Consultation with Legal Counsel should be considered, purchase planning, and reviews and approvals apply.
  • 4-1.5, Orders Against Ordering Agreements, includes minor edits and clarifies the need for reviews and approvals for orders valued at $10,000 or more.

7 — General Practices

9 — Solicitation Provisions

  • Provision 3-1: Notice of Small-, Minority-, and Woman-Owned Business Subcontracting Requirements, was revised to remove the language referencing commercial purchasing procedures, and included a reference to Clauses 3-1: Small-, Minority-, and Woman-Owned Business Subcontracting Requirements, and 3-2: Participation of Small-, Minority-, and Woman-Owned Business for reporting requirements, with their associated thresholds. This provision will be required in all solicitations and contracts.

10 — Contract Clauses




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