Notwithstanding the suspension, debarment, ineligibility, or proposed debarment of a supplier, the Postal Service may continue contracts or subcontracts in existence at the time the supplier was suspended or debarred, became ineligible, or was proposed for debarment unless the VP, SM directs otherwise. However, Contracting Officers may not add new work to any existing contract, by exercise of an option or otherwise, without the prior approval of the VP, SM, unless the work is classified as an insignificant or significant minor service change to a mail transportation contract or a minor administrative change, such as a change of address. See 7-11.4.3 for more information.
When the circumstances giving rise to the suspension, debarment, or ineligibility also constitute a default in the supplier’s performance of the contract, termination for default may be appropriate. A decision as to the type of termination action, if any, to be taken should be made only after review by the Contracting Officer, Purchase/SCM Team, and assigned counsel to ensure the propriety of the proposed action. If the supplier presents a significant risk to the Postal Service in completing the existing contract, the Contracting Officer must determine whether termination for convenience or otherwise is in the Postal Service’s best interest. In making this determination, the Contracting Officer must consult with assigned counsel and consider the following factors:
Except for the mail transportation service and minor administrative changes discussed above and the exceptions discussed below, Contracting Officers may not solicit or award new contracts, add new work, exercise options, or otherwise extend the duration of existing contracts or orders for suppliers or subcontractors that are, or are proposed to be, suspended, debarred, or ineligible.
In certain circumstances, soliciting or awarding a contract to a suspended, debarred, and ineligible supplier may be in the best interest of the Postal Service. Similarly, adding work, modifying, or renewing contracts of suspended, debarred, or ineligible suppliers may be in the best interest of the Postal Service. In such cases, the Contracting Officer must do the following:
The Contracting Officer’s request must identify the suspended, debarred, or ineligible supplier or suppliers. Where applicable, the identities of corporate officers, agents, affiliates, or others proposed for suspension, debarment, or ineligibility should be included in the request. In addition, the request must clearly identify and explain the cause or causes for suspension, debarment, or ineligibility. Requests may be for the following actions:
Note: Service change requests for mail transportation contracts with a suspended, debarred, or ineligible supplier must be made in accordance with 39 CFR 601.113(d)(5). In addition, modifications that are minor administrative changes, such as a change of address, may be made without the approval of the VP, SM.
