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 July 1, 2014, the following parts and sections of the SPs and Ps have been revised:
Supplying Principles
In the Supplying Principles, the Environmental Responsibility section of the Ethics and Social Responsibility Principle, has been retitled as Sustainability, and states that the Postal Service recognizes that improved environmental performance and responsibility are important to the long-term health and competitiveness of our business, and that sustainable purchasing has the potential to reduce both environmental and financial costs in our operations and network. The Postal Service embraces sustainable practices and improved environmental responsibility in our own operations, and encourages suppliers to improve their environmental and sustainability practices in the performance of their contracts with us by providing environmentally preferable products when practicable and cost-effective. Lastly, when appropriate, the Postal Service will collaborate with suppliers to identify opportunities that may improve the environmental and sustainability aspects of the goods those suppliers provide to us.
Process Step 2: Evaluate Sources
2-10.3.8, Publicizing, has been updated to describe that all noncompetitive contract awards valued at $1 million or more must be publicized in the GPE, and other media as appropriate, upon award.
2-34.4, Pricing Noncompetitive Offers, has been revised to add a cross-reference to a new section (2-34.14, Certification of Cost or Pricing Data).
2-34.5, Use of Independent Cost Estimates, has been revised to state that an Independent Cost Estimate (ICE) is an assessment of the total cost of ownership (TCO) and that, in this phase of the supplying process, total cost of ownership (TCOI) has been further refined through the Conduct Should-Cost Analysis activity of the Collect Ideas and Build Fact Base task of Process Step 2, Evaluate Sources, and that the most recent TCO is consulted to determine the reasonableness and completeness of the proposals and to detect buy-ins, unbalanced pricing, or other gaming techniques.
2-34.6, Cost Analysis, has been revised to state that cost analysis is appropriate when factors effecting the purchase will not ensure a reasonable price because price analysis or another technique appropriate to the goods or services being purchased do not suffice and the Postal Service needs an understanding of the cost buildup of the proposal to verify cost realism and reasonableness. This section is also revised to state the cost or pricing data must be obtained before awarding a noncompetitive contract or modification whenever price analysis or another technique deemed appropriate to the goods or services being purchased is insufficient to determine price reasonableness, and to state that in certain circumstances suppliers are required to certify that the cost or pricing data they submit is accurate, complete and current.
2-34.13, Cost or Pricing Data, has been revised to state that whenever price analysis or some other technique appropriate for the goods or services being purchased is insufficient to determine reasonableness of price, cost or pricing data must be obtained, and under certain circumstances the cost or pricing data that is obtained must be certified, and to state that, if a supplier refuses to provide the necessary cost or pricing data, the contracting officer must withhold award and refer the matter to the relevant Portfolio manager.
2-34.14, Certification of Cost or Pricing Data, is a new section. In this section, circumstances under which cost or pricing data must be certified are delineated, and the details of the certification are described. This section also states that contracting officers must include Clause 5-4, Certification of Cost or Pricing Data, in contracts when the cost or pricing data submitted must be certified, and that the contracting officer must document the extent to which he or she relied upon the cost or pricing data that is certified in negotiating the final price, and that this documentation must be included in the contract file.
2-34.15, Certificate of Current Cost or Pricing Data, is a new section. This section states that when a certification of cost or pricing data is required, a certificate as described in this section must be included in the contract file with the documents supporting the negotiation. The supplier will be required to submit only one certificate, which must be submitted on the date of agreement on price, or, if applicable, an earlier date agreed upon between the parties that is as close as practicable to the date of the agreement on price.
2-34.16, Other Topics Considered, has been recodified from 2-34.14.
2-34.17, Clauses and Provisions, has been recodified from 2-34.15 and revised to state that Clause 5-4, Certification of Cost or Pricing Data, must be included in contracts when cost or pricing data submitted is required to be certified.
2-40.3.2, Contract Files for Noncompetitive Contracts, has been revised to state that if cost and pricing data were certified by the supplier, the contracting officer’s documentation of the extent to which he or she relied upon the certified cost or pricing data in negotiating the final price, should be included in the contract file for noncompetitive contracts.
2-41.2.4, Review and Approval Process for Noncompetitive Actions, has been revised to contain that if cost and pricing data were certified by the supplier, the contracting officer’s documentation of the extent to which he or she relied upon the certified cost or pricing data in negotiating the final price must be included in the review of the noncompetitive contractual action.
Process Step 3: Select Suppliers
3-2.2, Publicizing Contract Awards, has been updated to state that all noncompetitive contract awards valued at $1 million or more must be publicized in the GPE, and other media as appropriate, upon award.
Section 7, General Practices
7-16, Sustainability, this has been added to the SPs and Ps.
7-16.1, General, references the new Sustainability Principle, and goes on to state that the Postal Service recognizes that building sustainability considerations into purchase plans, solicitations, evaluation factors, and best value decisions can have a major impact on the Postal Service’s achievement of its sustainability goals. It also states that a new Clause 7-10, Sustainability, which encourages suppliers to improve sustainability effectiveness in the performance of Postal Service contracts and states that the Postal Service will collaborate with suppliers to identify opportunities to improve sustainability performance and, when deserved, will reward suppliers’ innovation in the area of sustainability improvement, is included in all Postal Service contracts through its incorporation by reference in
Clause 4-2, Contract Terms and Conditions Required to Implement Policies, Statutes, or Executive Orders.
7-16.2, Planning for Sustainability
7-16.2.1, Purchase Planning, states that purchase/SCM teams should discuss the role of sustainability during purchase planning, and that conducting market research and early supplier involvement can support the Postal Service’s sustainability objectives by identifying emerging technologies; alternative approaches; and innovative, more sustainable products and solutions.
7-16.2.2, Commodity Sourcing Strategy Plans, states that, in order to help purchase/SCM teams incorporate sustainability considerations into purchasing decisions, the Postal Service has included several sustainability aspects in its Commodity Sourcing Strategy Plan (CSSP) guidance templates. These provide a framework purchase/SCM teams can use during purchase planning and CSSP analysis, formation, and implementation:
7-16.2.3, Specifications and Statements of Work, states that purchase/SCM teams should consider whether sustainability attributes may be addressed when fulfilling requirements, and that, when sustainability attributes are determined to meet Postal Service requirements, are cost-effective, and are reasonably available, they should be included in specifications, statements of work, and/or statements of objectives.
7-16.2.4, Sustainability as an Evaluation Factor, states that, if a purchase/SCM team decides that a Postal Service sustainability consideration is beneficial to the success of a purchase, then it may be treated as an evaluation factor. The description of the evaluation factor should be as specific as possible.
7-16.3, Environmentally Preferable Products
7-16.3.1, General, states that the Postal Service defines environmentally preferable products (EPPs) as sustainable product alternatives for office, electronics, lighting, cleaning, and maintenance/repair/operational (MRO) products which contain environmentally preferable ingredients and efficient performance features that may help the Postal Service reduce natural resource use and waste generation, lower utility costs at facilities, and operate with less environmental impact and a lower carbon footprint. For the purposes of the Supplying Principles and Practices, EPPs are categorized into five focus categories:
7-16.3.2, eBuy2, states that EPPs are highlighted in eBuy2 with a green leaf icon and can be searched for by using the “Buy EPP” search functionality. In the more detailed product information views, there are corresponding icons for each of the five qualifying EPP categories that indicate why the item is environmentally preferable.
7-16.4, Services, states that sustainability can play a role when purchasing services by requiring EPPs in the performance of the services, and that purchase/SCM teams should consider how sustainable products may be used in the performance of the services.
7-16.5, Innovations, states that the Postal Service encourages suppliers to provide innovative supply chain practices and offer products and services that further the Postal Service’s sustainability objectives. Clause 7-10, Sustainability, which is included in all Postal Service contracts, encourages suppliers to improve environmental sustainability practices in the performance of the contract.
7-16.6, Sustainability Reporting
7-16.6.1, Clause 7-15, Supplier Sustainability Data Reporting, states that Clause 7-15, Supplier Sustainability Data Reporting, which must be included in all contracts valued at $500,000 or more for suppliers who sell the Postal Service EPP goods, requires suppliers to submit calendar-quarter reports containing specific estimates of the quantity (number), weight (in pounds), and dollars ($) associated with EPP goods provided or sold to the Postal Service in the performance of the contract. Upon the award of a contract containing Clause 7-15, the contracting officer will provide the supplier with a Sustainability Reporting Worksheet, which is used in the reporting.
7-16.6.2, Waivers, states that contracting officers may waive inclusion of Clause 7-15 in contracts when faced with compelling business reasons. All such waivers must be approved by the relevant Portfolio manager, and the rationale for the waiver must be documented and kept in the contract file.
7-16.7, Clauses, lists the contract clauses applicable to these new sustainability policies. The new clauses are:
Clause 7–10, Sustainability, which is included in all Postal Service contracts by being incorporated by reference in Clause 4-2, Contract Terms and Conditions Required to Implement Policies, Statutes, and Executive Orders, and encourages suppliers to improve sustainability effectiveness in the performance of Postal Service contracts, and states that the Postal Service will collaborate with suppliers to identify opportunities to improve sustainability performance and, when merited, will reward suppliers’ sustainability innovations.
Clause 7–11, Recycled Content Products, should be included in solicitations and contracts when the purchase includes or could include products manufactured with post-consumer or pre-consumer recycled content materials that are cost-effective and reasonably available to meet the functional business requirements.
Clause 7–12, Bio-Based Content Products, should be included in solicitations and contracts when the purchase includes or could include products manufactured with bio-based content materials that are cost-effective and reasonably available to meet the functional business requirements.
Clause 7–13, Energy Efficiency in Energy Consuming Products, should be included in solicitations and contracts for products and services when the purchase includes or could include use of energy efficient products and services that are cost-effective and reasonably available to meet the functional business requirements.
Clause 7–14, Water Efficiency in Water Consuming Products, should be included in solicitations and contracts for products and services when the purchase includes or could include use of water efficient products and services that are cost-effective and reasonably available to meet the functional business requirements.
Clause 7–15, Supplier Sustainability Data Reporting, which is included in all contracts valued at $500,000 or more for suppliers who sell the Postal Service environmentally preferable product (EPP) goods, unless waived by the Contracting officer. This clause requires suppliers to submit calendar-quarter reports on the use of EPP goods.
Section 10 Contract Clauses
New Contract Clauses
The following new contract clauses have been included as part of these policy changes:
Revised Contract Clauses
Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders (July 2014), has been revised to incorporate (c) Clause 7-10, Sustainability.
