Supplying Principles and Practices Manual

September 30, 2016

Summary of Changes Introduction to the Postal Service Supplying Principles and Practices United States Postal Service Supplying Principles General Overview of United States Postal Service Supplying Principles Postal Service Supplying Principles 1 USPS Supplying Practices Process Step 1: Identify Needs 1-1 Define and Understand Client Needs, Goals, and Strategies 1-2 Form Purchase⁄SCM Team 1-3 Identify Key Stakeholders 1-4 Prepare Preliminary Business Justification for the Need 1-5 Assess Resources 1-6 Involve Suppliers Early 1-7 Develop Preliminary TCO Estimates 1-8 Identify Cost Reduction Levers 1-9 Develop Demand Management Strategy 1-10 Conduct Market Research and Benchmarking Analysis 1-11 Define Requirements 1-12 Analyze State of Technology 1-13 Revisit⁄Update Resource Assessment 1-14 Develop, Issue, and Analyze Responses from RFI 1-15 Manage Risks 1-16 Conduct Make vs. Buy Decision Analysis 1-17 Analyze Unsolicited Proposals 1-18 Develop Logistics Support Strategy 1-19 Update Business Justification 2 USPS Supplying Practices Process Step 2: Evaluate Sources 2-1 Develop Purchase Plan 2-2 Start Request for Proposal Development 2-3 Update⁄Refine Total Cost of Ownership Analysis 2-4 Formulate Project Budget and Request Funding 2-5 Perform Value Chain Mapping and Analysis 2-6 Involve Suppliers in Planning 2-7 Conduct Should-Cost Analysis 2-8 Conduct Spend Analysis 2-9 Perform Switching-Cost Analysis 2-10 Determine Extent of Competition 2-11 Develop Life-Cycle Support Plan 2-12 Develop Preliminary Investment Recovery Plan 2-13 Purchase From Mandatory Sources 2-14 Clarify Data Rights and Intellectual Property Issues 2-15 Consider Auctions 2-16 Consider Performance-Based Contracting Arrangements 2-17 Determine Need for Progress or Advance Payment 2-18 Select Contract Type 2-19 Consider Use of Renewals and Options 2-20 Develop and Finalize Sourcing Strategy 2-21 Define Supplier Diversity Objectives 2-22 Prequalify Suppliers 2-23 Define Contract Management Metrics 2-24 Review and Finalize Request for Proposals (RFP) 2-25 Form Proposal Evaluation Team 2-26 Develop Proposal Evaluation Strategy 2-27 Issue RFPs and Publicize Requirements 2-28 Conduct Reverse Auctions Where Appropriate 2-29 Issue Amendments 2-30 Receive and Record Proposals 2-31 Implement Proposal Evaluation Strategy 2-32 Assess Technology Implications 2-33 Perform Risk Analysis on Supplier Proposals 2-34 Conduct Price⁄Cost Analysis 2-35 (Reserved) 2-36 Evaluate Foreign and Domestic Proposals 2-37 Hold Discussions 2-38 Negotiate with Suppliers 2-39 Subcontracting with SMWOBs 2-40 Produce Contract Award Recommendation 2-41 Obtain Selected Reviews and Approvals 2-42 Postal Accountability and Enhancement Act Related Reports and Certifications 2-43 Simplified Purchasing 3 USPS Supplying Practices Process Step 3: Select Suppliers 3-1 Award Contract and Notify Suppliers 3-2 Announce Award 3-3 Provide Feedback 3-4 Conduct Postaward Orientation Where Applicable 3-5 Appoint Contracting Officers Representatives 3-6 Define and Initiate Contract Management Activities 3-7 Finalize Investment Recovery Plan 4 USPS Supplying Practices Process Step 4: Deliver and Receive Requirements 4-1 Ordering 4-2 Shipping 4-3 Receipt and Inspection 4-4 Acceptance 4-5 Returns

5 USPS Supplying Practices Process Step 5: Measure and Manage Supply 5-1 Develop, Finalize, and Implement Cost Management Plan 5-2 Conduct Material Planning Activities 5-3 Implement Life Cycle Support Plan 5-4 Develop, Finalize, and Implement Inventory Control Plan 5-5 Implement Investment Recovery Plan 5-6 Execute Quality Assurance Plan 5-7 Evaluate Contract Effectiveness 5-8 Contract Modifications 5-9 Share Lessons Learned 5-10 Decide to Renew a Contract or Exercise Options 5-11 Invoices and Other Billing Information 5-12 Make Payment 5-13 Terminate Contract 5-14 Close Out Contract 5-15 Recognize and Reward Supplier 6 USPS Supplying Practices Process Step 6: End of Life 6-1 Dispose 6-2 Write Off Inventory 6-3 Evaluate and Analyze Actual TCO 7 USPS Supplying Practices General Practices 7-1 Appointment and Selection of Contracting Officers 7-2 Develop Commodity Strategy 7-3 Bonds, Insurance, and Taxes 7-4 Supplier Disagreement Resolution 7-5 Emergencies 7-6 Deviations 7-7 Laws 7-8 Equal Employment Opportunity 7-9 Material and Property Accountability 7-10 Continuous Improvement 7-11 Supplier Suspension, Debarment, and Ineligibility 7-12 Restrictions on Contracting with Former Postal Service Officers, Executives, Employees, and Other Sources 7-13 Supply Chain Security 7-14 Privacy Considerations 7-15 Conflicts of Interest 7-16 Sustainability 8 USPS Supplying Practices Commodity Specific 8-1 Design and Construction Purchasing 8-2 Mail Transportation Purchasing 8-3 Professional⁄Technical and Consultant Services 8-4 Information Technology 9 Solicitation Provisions 10 Contract Clauses Acronyms