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 June 20, 2020, the following parts and sections of the SPs and Ps have been revised:

7— General Practices

• 7-7.1.16.1, General, is a new section describing the various regulations and laws relative to the Vietnam Era Veterans Readjustment Assistance Act of 1974 (38 U.S.C. 4212) and their purpose.
• 7-7.1.16.2, Applicability, has been renumbered and updated based upon changes to the regulation and discusses requirements for implementation within solicitations for contracts valued at $150,000 or more. Solicitations must include Provision 9-5: Compliance with Veterans’ Employment Reporting Requirements; Clause 4-1: Standard Solicitation Provisions, must be checked-off by the contracting officer as applicable; Clause 9-14: Equal Opportunity for VEVRAA Protected Veterans and Clause 9-16: Employer Reports on Employment of Protected Veterans and, Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders, must be checked-off by the contracting officer as applicable.
• 7-7.1.16.3, Contract Requirements, has been revised in its entirety based upon changes to the regulation. A discussion of Clause 9-14: Equal Opportunity for VEVRAA Protected Veterans, that requires suppliers to abide by the requirements of the equal opportunity clause found in 41 CFR 60-300.5(a) prohibiting discrimination against qualified protected veterans for employment, and flow down this clause to subcontracts valued at $150,000 or more, unless exempted. Clause 9-16: Employer Reports on Employment of Protected Veterans, discusses supplier annual reporting requirements; and Provision 9-5: Compliance with Veterans’ Employment Reporting Requirements, which serves as representation by the supplier that reporting has been completed. In addition, guidance is provided to contracting officers for implementation and documentation requirements.
• 7-7.1.16.6, Complaints and Noncompliance, has been renumbered and updated to clarify supplier noncompliance process under the Act.
• 7-7.1.16.7, Department of Labor Sanctions, has been renumbered and updated to reflect the new title of Clause 9-14: Equal Opportunity for VEVRAA Protected Veterans.
• 7-7.1.19, Clauses and Provisions, has been revised to update the title of Clause 9-14 to Equal Opportunity for VEVRAA Protected Veterans and include references to a new Clause 9-16: Employer Reports on Employment of Protected Veterans, and revised Provision 4-1: Standard Solicitation Provisions.

8 — Commodity Specific

• 8-2, Transportation Purchasing, replaces the original title of Mail Transportation Purchasing, to broadly reflect the various modes of transportation and ancillary services related to the transportation of mail.
• 8-2.1, General, the title is new and the original paragraph is revised to clarify the authority for the purchase of mail transportation.
• 8-2.2, Purchasing Method, is renumbered from 8-2.1, and revised to include ancillary services directly related to the transportation of mail.
• 8-2.3, Surface Transportation, is new and replaces the original section 8-2.3, COR. That section is removed as Surface Transportation uses Administrative Officials (AO) to manage local supplier operations.
• 8-2.3.1, Contract Types, and its subtopics are modified in accordance with statues and regulations.
• 8-2.3.2, Purchase Plans, is new and replaces 8-2.3.1, Authority and Limitations under the 8-2.3, COR section that is removed. This new section describes the result of an approved deviation from the purchase planning requirements within 2-1, Purchase Plans, for the purchase of motor vehicles types of mail transportation services.
• 8-2.3.3, Administrative Officials, is renumbered from 8-2.2, moved under 8-2.3, Surface Transportation, and revised to clarify their oversight authority. Original 8-2.3.2, Restrictions, under the 8-2.3 COR section is removed.
• 8-2.3.4, Labor Considerations, is new and notifies contracting officers that Surface transportation contracts may be subject to a labor process as set forth in labor agreements between the Postal Service and the various unions.
• 8-2.3.5, Death or Incompetence of Supplier, is renumbered from 8–2.16, moved under 8-2.3, Surface Transportation, and is revised to provide for continuity of service through an appropriate sourcing method that is in the best interest of the Postal Service.
• 8-2.3.6, Contract Renewals, is renumbered from 8-2.9, and moved under 8-2.3, Surface Transportation.
• 8-2.3.6.1, General, is renumbered from 8-2.9.1, moved under
  8-2.3, Surface Transportation, and is revised to clarify the use of
  Clause B-78: Renewal (Surface Transportation).
• 8-2.3.6.2, Term, is retitled and renumbered from 8-2.9.2, Types and Terms and Renewals, moved under 8-2.3, Surface Transportation, and discusses the basis for renewing a regular contract.
• 8-2.3.6.3, Considerations, is new and provides a discussion on what to consider for a contract renewal.
• 8-2.3.7, Clauses and Provisions, is new and provides a list of various revised and new clauses for use in Surface Transportation.
• 8-2.4, Special Considerations Relating to Air Transportation, is a new section with subtopic discussing Alaska and International air transportation. This replaces the original 8-2.4, Establishing Mailing Lists, and 8-2.4.1, Use of Mailing Lists, which are removed as mailing lists have been replaced by an online supplier registration system used by multiple Commodity Management Centers (CMC).
• 8-2.4.1, Alaska Air Transportation, is new and provides the regulatory requirements set by the Department of Transportation.
• 8-2.4.2, International Air Transportation, is new and provides the references to the statutory requirements that affect both process and priority of carriers.
• 8-2.5, Contract Types, is renumbered to 8-2.3.1, Contract Types, and is revised in accordance with statues and regulations.
• 8-2.7, Modes of Transportation, and its subsections are removed in their entirety. The modal definitions are unnecessary, as these definitions reflect the Transportation Portfolio’s organizational commodity structure.
• 8-2.8, Alternatives to Contracts, is removed. The Alaska Air Transportation is moved to 8-2.4.1, Alaska Air Transportation. The ocean transportation priced per pound section is deleted. This service is no longer offered by Ocean Transport Companies, and is replaced with Ocean Transportation Contracts.
• 8-2.9, is renumbered to 8-2.3.6, Contract Renewals.
• 8-2.9.1, General, is revised and renumbered to 8-2.3.6.1, General, to clarify a surface contract renewal may occur with or without a renewal clause owing to the authority provided in 39 U.S.C. 5005(b).
• 8-2.9.2, Types and Terms of Renewals, is removed as contract types are defined in the SPs and Ps, while renewals are renumbered as
  8-2.3.6.2, Term.
• 8-2.9.3, Service, is removed as the renewal term duplicates the definition in 39 U.S.C. 5005(b).
• 8-2.9.4, Procedures, is removed.
• 8-2.9.5, Short Term Renewals, is removed as current practices no longer use this type of renewal.
• 8-2.10, Contract Changes, is replaced with the SPs and Ps, General Clause 4-20: General Terms and Conditions (Surface Transportation), which indicates use Clause B-67: Changes (Surface Transportation).
• 8-2-11, Termination for Convenience, is removed as a commodity specific section. SPs and Ps section 5-13, Terminate Contract, and use of Termination and Notice language within Clause 4-20: General Terms and Conditions (Surface Transportation), paragraph l., provides the guidance.
• 8-2.12, Service Changes to Highway and Domestic Inland Water contracts and its subtopics are removed as a commodity specific section. SPs and Ps 5-8, Contract Modifications, and Clause 4-20: General Terms and Conditions (Surface Transportation) paragraph (c) Changes or B-67: Changes (Surface Transportation) provide the guidance. The internal distinction of a major or minor service change is described within Clause B-67: Changes (Surface Transportation).
• 8-2.13, Subcontracting Highway or Domestic Inland Water Contracts, is duplicative and removed. Clause B-89: Subcontracting (Surface Transportation) is available and requires suppliers to obtain approval from the contracting officer before subcontracting any work awarded under this contract.
• 8-2.14, Release of Supplier, is deleted. Contracting officers may excuse performance in the terms and conditions, and use Clause 4-20: General Terms and Conditions (Surface Transportation), paragraph l., Termination with Notice.
• 8-2.15, Service Deficiencies, is removed as a commodity-specific practice SPs and Ps 5-13, Terminate Contract, and use Clause 4-20: General Terms and Conditions (Surface Transportation), paragraph m., Termination for Default.
• 8-2.16, Death or Incompetence of Supplier, 8-2.16.1, Partnership, 8–2.16.2, Estate Representatives, are modified and in 8-2.3.5, Death or Incompetence of Supplier.
• 8-2.17, Eligibility Requirements (for Suppliers), and its subtopics are removed and available in Management Instruction MI PO-530-2009-4, Screening Highway Transportation Contractor Personnel.
• 8-2.18, Contract Administration, is removed and available in MI PO–531-2019-1, Monitoring Performance of Highway Contract Route Service. Administration is not a commodity-specific activity and is governed by the SPs and Ps as any other Postal Service commodity (e.g., 3-6, Define and Initiate Contract Management Activities).

9 — Solicitation Provisions

• Provision 1-6: Supplier Clearance Requirements (Surface Transportation), is new and specific to Surface Transportation. The base language comes from Provision 1-1: Supplier Clearance Requirements.
• Provision 4-1: Standard Solicitation Provisions, has been revised to include new Provision 9-5: Compliance with Veterans’ Employment Reporting Requirements, with a check-off box used for incorporation by reference within solicitations.
• Provision 4-11: Standard Solicitation Provisions (Surface Transportation), is new and specific to Surface Transportation. The base language comes from Provision 4-1: Standard Solicitation Provisions.
• Provision 4-12: Evaluation (Surface Transportation), is new and specific to Surface Transportation. The base language comes from Provision 4-2: Evaluation.
• Provision 9-5: Compliance with Veterans’ Employment Reporting Requirements, is a new provision requiring suppliers to represent that, if it is subject to the reporting requirements of 38 U.S.C. 4212(d), it has reported.

10 — Contract Clauses

• Clause B-65: Adjustments to Compensation (Surface Transportation), is revised to remove “fuel” from the costs associated with pro rata price adjustments.
• Clause B-67: Changes (Surface Transportation), the title is revised and language to establish the unilateral threshold for Transportation service as currently being practiced. When used in conjunction with Clause 4-20: General Terms and Conditions (Surface Transportation), this clause takes precedence over paragraph c. in Changes within Clause 4-20: General Terms and Conditions (Surface Transportation).
• Clause B-84: Contract Type (Surface Transportation), is new and specific to Surface Transportation. The base language comes from Clause B-3: Contract Type.
• Clause B-85: Administrative Official (Surface Transportation), is new and specific to Surface Transportation. Administrative Officials within the field administer the performance of mail transportation contracts.
• Clause B-86: Electronic Communication and Interactivity (Surface Transportation), is new and specific to Surface Transportation.
• Clause B-87: Price Adjustment — Fuel (Surface Transportation), is new and specific to Surface Transportation.
• Clause B-88: Safety Rating (Federal Motor Carrier Safety Administration) (Surface Transportation), is new and specific to Surface Transportation.
• Clause B-89: Subcontracting (Surface Transportation), is new and specific to Surface Transportation.
• Clause B-90: Use of Postal Facilities (Surface Transportation), is new and specific to Surface Transportation.
• Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders, has been revised to update the title of Clause 9-14: Equal Opportunity for VEVRAA Protected Veterans, and include references to a new Clause 9-16: Employer Reports on Employment of Protected Veterans. A check-off box is used for incorporation by reference within solicitations.
• Clause 4-20: General Terms and Conditions (Surface Transportation), is new and specific to Surface Transportation and is mandatory. The base language comes from Clause 4-1: General Terms and Conditions.
• Clause 7-16: Insurance (Surface Transportation), is new and used within Surface Transportation contracts in conjunction with Clause B-39: Indemnification. The clause stipulates that supplier insurance policies must comply with Federal, state, and local laws, and be sold by bona fide insurance companies and acceptable to the Postal Service. A contracting officer has the discretion to include any specific insurance requirements within the statement of work. Upon request, the supplier will provide proof of insurance and it must be in effect prior to, and maintained through, contract performance. Any insurance lapse will be grounds for termination for default.
• Clause 7-17: Sustainability (Surface Transportation), is new and specific to Surface Transportation. The base language comes from Clause 7-10: Sustainability.
• Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans, has been titled Clause 9-14: Equal Opportunity for VEVRAA Protected Veterans. Sections b.–k. of this clause have been deleted and replaced with b. requiring the supplier to abide by the requirements of 41 CFR 60-300.5(a), prohibiting discrimination against qualified protected veterans, and c. of this clause requiring the supplier to flow down the clause to subcontracts of $150,000 or more unless exempted.
• Clause 9-16: Employer Reports on Employment of Protected Veterans, is a new clause describing supplier reporting requirements.