|
Supplying Principles and Practices > USPS Supplying Practices Commodity Specific
Design and construction purchasing is the purchase of architect/engineer,
construction, and related services. This section covers the purchase of:
• Services related to facilities design
• Construction
• Construction management
The Postal Service purchases architect-engineer (A/E) services from
prequalified suppliers based on demonstrated competence and qualification
for the type of services required. Fees are negotiated after selection.
Generally, A/E contracts are awarded in accordance with the guidelines of the
Supplying Practices. However, when the guidelines of this section conflict
with any other guidelines of the Practices, the guidelines of this section
govern.
A/E services are professional services requiring the performance or approval
by a registered or licensed architect or engineer associated with the design or
construction of real property, as well as incidental services that members of
those professions may logically or justifiably perform in relation to
construction, alteration, or repair of buildings, site improvements, roads, or
other kinds of real property. Such incidental services include:
• Master planning
• Architectural and engineering studies
• Investigations
• Surveys
• Reports
• Design development
• Drawings preparation
• Specification preparation
• Interior design
• Space planning
• Environmental services
• Observation and reporting of the work performed during
construction, alteration, or repair
Environmental A/E services are those environmental services which require
performance or approval by a registered or licensed architect or engineer.
Environmental A/E services should be purchased using the procedures in this
section. Other environmental services such as continuous monitoring and/or
testing for environmental compliance at postal facilities do not require
performance by a registered or licensed architect or engineer. These services
should be purchased in accordance with the practices discussed in Special
Categories of Purchases.
For each contract for which the fee is expected to exceed $50,000, a notice
of intent to contract for A/E services must be publicized in the
Government-wide Point of Entry (GPE) available at www.fedbizopps.gov
(further details can be reviewed in the Issue Request for Proposals (RFP)
and Publicize Requirements topic of the Perform Solicitation-Related
Activities task of Process Step 2: Evaluate Sources). The notice must solicit
submission of Standards Forms (SF) 254, Architect/ Engineer and Related
Services Questionnaire and 255, Architect/Engineer and Related Services
Questionnaire for Specific Project. For each contract for which the fee is not
expected to exceed $50,000, publicizing should be limited to the area in
which the project will be performed.
Contracting Officers establish teams to evaluate and select A/E suppliers.
Each selection team must be composed of at least two members with one
member designated as the chairperson. Team members must be appointed
from among professionally qualified Postal Service personnel who collectively
have experience in architecture, engineering, construction, and purchasing,
although staff limitations or project-specific considerations may require that
individuals working under contract for the Postal Service be appointed to the
selection team. These individuals may be appointed only on a case-by-case
basis subject to approval of the Contracting Officer. Each project file must
contain written certification by each evaluation team member that he or she
has no conflict of interest that may impair their objectivity in the selection
process.
Less complex, low dollar A/E projects may be awarded directly without the
formation of an A/E selection team. For these projects, the Contracting
Officer may appoint an individual from the A/E selection team to recommend
three or more qualified suppliers from existing SF 254 and SF 255
information. If the number of known qualified suppliers is insufficient to
provide a competitive review, then the project may be publicized within the
area in which the project is to be performed.
Before discussions or negotiations of any proposed contract or contract
modification is initiated, an independent Postal Service estimate of the cost
for the required A/E services must be developed, based on a detailed
analysis of the costs expected to be generated by the work. Consideration
must be given to the estimated value of the services and to the scope,
complexity, and nature of the project. Detailed information about cost
estimates is contained in the Develop Preliminary Total Cost of Ownership
Estimates topic of the Conceptualize Need task of Process Step 1: Identify
Needs and the Conduct Should-Cost Analysis topic of the Collect Ideas and
Build Fact Base task of Process Step 2: Evaluate Sources.
The independent estimate must be revised as required during discussions or
negotiations to reflect changes in or clarification of the scope of the work to
be performed. A fee estimate based on the application of percentage factors
to cost estimates for the various segments of the project may be developed
for comparison purposes, but such an estimate must not be used as a
substitute for the independent Postal Service estimate. To the extent
necessary, the cost breakdown figures in the Postal Service estimate may be
revealed during discussions or negotiations provided that the overall amount
of the Postal Service estimate is not disclosed. Any change in the Postal
Service estimate during or after price discussions or negotiations must be
specifically but succinctly explained in the contract file.
The guidelines of the Conduct Price/Cost Analysis topic of the Evaluate
Proposals task of Process Step 2: Evaluate Sources (relating to cost
analysis, guidelines of cost or pricing data, and preparation of discussions
memoranda) apply to purchases of A/E services. Because of the procedures
used to purchase A/E services and the lack of price competition, price
analysis is normally insufficient.
The Contracting Officer is responsible for negotiating a fair and reasonable
fee for the services to be performed. In determining a fair and reasonable fee,
the Contracting Officer should compare the independent Postal Service
estimate with the A/E supplier's proposal. Also, the Contracting Officer should
consider previous prices paid for similar services. Additional guidelines are
contained in Handbook P-2, Design and Construction Purchasing Practices.
Discussions and negotiations will be conducted initially with the A/E supplier
given the highest technical ranking. If a mutually satisfactory contract cannot
be achieved with that supplier, the discussions or negotiations must be
terminated. Discussions or negotiations will then be initiated with the supplier
next in order of preference. This procedure must be repeated until a mutually
satisfactory contract has been negotiated. Depending on the particular
business situation, the Contracting Officer may, at his or her discretion,
complete A/E requirements in accordance with the Supplying Principles and
Practices (P&P). In these instances, award will be made to the A/E supplier
offering the best value to the Postal Service. More information about
discussions is available in the Hold Discussions topic of Evaluate Proposals
task of Process Step 2: Evaluate Sources. More information about
negotiations is available in the Negotiate with Suppliers topic of the Perform
Preaward Activities task of Process Step 2: Evaluate Sources.
The project manager responsible for monitoring the performance of an A/E
Supplier must complete an objective written evaluation of the Supplier's
performance, including any environmental elements, using Forms 7477-A,
A/E's Performance Design Phase Evaluation, and 7477-B, A/E's
Performance Construction Phase Evaluation. For further guidance see
Handbook P-2, Design and Construction Purchasing Practices.
The Postal Service requires that a large number of small repair and alteration,
environmental and other projects be performed each year. Indefinite-quantity
(IQC) A/E contracts permit a large number of projects to be accomplished at
one or more facilities through the issuance of delivery (work) orders against a
single contract rather than through individual RFPs. Each indefinite-quantity
contract is limited to the geographic area that has been described in the RFP.
Multiple awards may be made if provided for in the RFP.
Limitations regarding contract term, dollar limitations, and delivery (work)
order limits are issued by the VP, SM, or authorized designee.
Guidance for indefinite-quantity A/E services contract preparation is
contained in Handbook P-2, Design and Construction Purchasing Practices.
This section applies to the purchase of construction. When the guidelines of
this section conflict with any other guidelines of the Supplying Practices, the
guidelines of this section govern.
Construction means construction, alteration, repair (including painting and
improvements of all types), environmental work (asbestos abatement, UST
removal/replacement, etc.), and demolition of buildings, structures, and
improvements of all types. The term does not include other investigative work
such as engineering, environmental or other studies that is not part of the
beginning of the construction process. Normally, construction does not
include any construction work pursuant to a lease and performed by the
lessor (see Handbook RE-1, Realty Acquisitions and Management).
Generally, construction is purchased in accordance with the process steps in
the Supplying Practices. Suppliers should be prequalified, and depending on
the particular business situation, purchase or prequalification opportunities
may be publicized in accordance with the Issue Request for Proposals (RFP)
and Publicize Requirements topic of the Perform Solicitation-Related
Activities task in Process Step 2: Evaluate Sources. When the Contracting
Officer determines that the price proposed by a lessor offers the best value to
the Postal Service, alterations, repairs, and improvements to be
accomplished by the lessor may be performed without competition. The
bonding requirements discussed in the Bonds, Insurance, and Taxes topic of
General Topics must be met for all construction contracts.
Generally, contracts for construction should be firm fixed price contracts.
Such contracts may be:
• Lump-sum contracts for the total work or for defined parts of it
• Unit-price contracts in which a unit price is paid for a specified
quantity of work, such as cubic yards of earth or concrete, or
square yards of pavement
• A combination of both (of the above)
However, any contract type discussed in the Select Contract Type topic of the
Develop Sourcing Strategy task of Process Step 2: Evaluate Sources may
be used.
The supplier may seek approval to substitute equal products or processes for
those specified by brand name (see Clause B-63: Materials and
Workmanship). Accordingly, the request for proposals (RFP) should identify
any products or processes that may not be substituted after award. See
Handbook P-2, Design and Construction Purchasing Practices for further
guidance.
As discussed in the Issue Request for Proposals (RFP) and Publicize
Requirements topic of the Perform Solicitation-Related Activities task of
Process Step 2: Evaluate Sources, a presolicitation notice may be issued for
construction projects. Notices may be distributed to plan hold rooms,
companies on solicitation mailing lists maintained by the purchasing office,
and any other known interested parties within the Postal Service or members
of the public. Any presolicitation notice issued must include a statement of
the project's magnitude in terms of physical characteristics and an estimated
price range (for example, 30,000 sq. ft. building with an estimate cost range
of $500,000 to $1,000,000 for the project). However, in no event may the
statement disclose the Postal Service estimate.
Preproposal conferences are discussed in detail in the Issue Request for
Proposals (RFP) and Publicize Requirement topic of the Perform
Solicitation-Related Activities task of Process Step 2: Evaluate Sources.
Handbook P-2, Design and Construction Purchasing Practices may also be
leveraged for further guidance. The design A/E must be available to help
interpret plans and specifications.
Provision must be made for suppliers to inspect the construction site. Also,
suppliers must be given the opportunity to examine data available to the Postal
Service that may provide information affecting performance of the work, such
as boring samples, and original boring logs. This information should be
assembled in one place and be made available to all offerors in the same
manner. When feasible, a record should be kept of the identity and affiliation of
all offerors' representatives inspecting the site or examining the data.
In establishing the time for contract completion, the Purchase/SCM Team
should consider, among other things, the nature and complexity of the
project, the construction seasons involved, the availability of equipment, labor
and other factors and the increased cost for an aggressive project schedule.
In any given contract, separate completion periods may be established for
separable items of work. When such periods are shown, requests for time
extensions must be evaluated for each item, and all affected completion
periods must be modified when appropriate.
Liquidated damages are discussed in the Terminate Contract topic of the
Make Payment task of Process Step 5: Measure and Manage Supply and in
the Bonds, Insurance, and Taxes topic of General Topics. Construction
purchase contracts may contain Clause 2-10: Liquidated Damages, as well
as other clauses relevant to liquidated damages, and the insertion of this
language into contracts must be considered. For additional information on
calculating the liquidated damages rate for construction projects see the
guidelines in Handbook P-2, Design and Construction Purchasing Practices.
When different completion periods for separate parts or stages of the work
are specified in the contract, the clause may be revised to provide for
liquidated damages for each separate part or stage in which delay will
damage the Postal Service.
RFPs permitting alternate proposals must require the base proposal to
include all features considered essential to a sound and adequate building
design. Any alternates to be included in the specifications should represent
significant amounts of work in relation to the base proposal, and they should
generally be structured as "add" or "deduct" alternates. When accurate cost
estimates are not available, a base proposal may be required for the
minimum acceptable project, with "add" alternates for desired materials or
equipment. When budget constraints exist, a base proposal may be required
for the plans and specifications as stated, with "deduct" alternates for desired
materials or equipment to be used to bring proposals back within budget.
RFP documents calling for alternates must clearly state that the Postal
Service reserves the right to accept or reject any and all alternate prices, as
may be determined by the Contracting Officer to be in the Postal Service's
interests.
Unless the Supplier is required to perform a significant part of the contract
work with its own forces, it may be difficult to obtain adequate Supplier
supervision of the work. To address this problem, each Postal Service
construction contract must contain Clause B-42: Performance of Work by
Supplier, establishing the minimum percentage of the work that the Supplier
must perform, consistent with customary or necessary specialty
subcontracting and the complexity and magnitude of the work. The
percentage may be increased for contracts with unusual requirements
(i.e., environmental, mechanical).
The development, review, finalization, and issue of the request for proposals
(RFP) are discussed in detail in the following topics of Process Step 2:
Evaluate Sources:
• Start Request for Proposals (RFP) Development (of the Prepare
Project task)
• Review and Finalize Request for Proposals (RFP) (of the Perform
Solicitation-Related Activities task)
• Issue Request for Proposals (RFP) and Publicize Requirements
(of the Perform Solicitation-Related Activities task)
Handbook P-2, Design and Construction Purchasing Practices may also be
leveraged for further information.
RFPs may be furnished (with plans and specifications) without charge to
organizations that maintain plan hold rooms, or other types of organizations,
for the benefit of suppliers, subcontractors, and material suppliers. The extent
of this distribution (geographical or otherwise) may be determined on a
case-by-case basis by the Contracting Officer.
Release of the plan holders list may be determined only after careful review
of the Privacy Considerations topic of the General Practices and the content
of Handbook AS-353.
A notice of intent to make award must be furnished to the successful offeror
no later than the time set for acceptance in the RFP or any extension to
which the offeror has agreed. The notice must advise the supplier of any
required bonds and the date by which the supplier must execute and return
such bonds. When all required bonds have been received, the Contracting
Officer will make award and issue a notice to proceed. The Contracting
Officer may issue the notice to proceed at the time of award or may issue it at
the preconstruction conference. The Contracting Officer then will send a
written notice of the award to all offerors who submitted a proposal and any
other known interested parties within the Postal Service or the public.
The project manager responsible for monitoring the performance of a
construction Supplier must complete Form 5002, Construction Supplier
Performance Evaluation, of the Supplier's performance, including any
environmental elements, for each project. For further guidance see
Handbook P-2, Design and Construction Purchasing Practices.
The Postal Service requires a large number of small repair and alteration,
environmental, and other projects to be performed each year.
Indefinite-quantity construction contracts permit a large number of projects to
be accomplished at one or more facilities through the issuance of delivery
(work) orders against a single contract rather than through individual RFPs.
A request for proposals (RFP) must be used to request proposals based on a
unit price schedule prepared by the Postal Service. Offerors must be required
to submit a multiplier that will apply equally to all prices listed in the unit price
schedule. The multiplier submitted by the offeror must not be more than two
decimal places (e.g., 1.22 or 0.97). Each indefinite-quantity contract is limited
to a specific geographic area.
Limitations regarding contract term, dollar limitations, and delivery (work)
order limits are issued by the VP, SM, or authorized designee. Delivery (work)
orders are limited to the geographic area described in the contract. No new
construction or building expansion work may be ordered under an
indefinite-quantity construction contract, except for site preparation or
foundation work for a pre-engineered building purchased directly from the
manufacturer. The Contracting Officer may request quotations from an
indefinite-quantity construction supplier for work items not covered by the unit
price schedule and order such items, in addition to ordering covered work.
However, not more than 25 percent of the cost of any delivery (work) order
may be for such uncovered work.
Guidance for indefinite-quantity construction contract preparation is contained
in Handbook P-2, Design and Construction Purchasing Practices.
Liquidated damages are discussed in the Terminate Contract topic of the
Make Payment task of Process Step 5: Measure and Manage Supply and in
the Bonds, Insurance, and Taxes topic of General Topics. Indefinite quantity
construction contracts may contain Clause 2-10: Liquidated Damages, as
well as other clauses relevant to liquidated damages, and the insertion of this
language into contracts must be considered. For additional information on
calculating the liquidated damages rate for construction projects see the
guidelines in Handbook P-2, Design and Construction Purchasing Practices.
When different completion periods for separate parts or stages of the work
are specified in the contract, the clause may be revised to provide for
liquidated damages for each separate part or stage in which delay will
damage the Postal Service.
IQC construction Supplier evaluation will be conducted in the same manner
as regular contract construction Supplier evaluation.
Generally, design-build contracts are awarded following the same guidelines
contained in the Supplying Practices. However, because these purchases call
for a combination of services, the purchasing process is somewhat unique.
When the guidelines of this section conflict with any other guidelines of the
Supplying Practices, these govern.
Under design-build contracting, one entity or supplier performs both
architecture-engineering and construction under one single contract providing
single-source responsibility for delivering the project design and construction.
The design-build entity or supplier can assume several organizational
structures. Most common are suppliers possessing both design and
construction resources in-house. Others are combinations of a joint venture
between designer and supplier, a constructor-led team with the designer in a
subcontract role, or a designer-led team with the constructor in a
subcontractor role.
The practices discussed in the Supplying Practices and the procedures listed
in Handbook P-2, Design and Construction Purchasing Practices regarding
publicizing, RFPs, and contracts apply to the purchase of design-build
services. Prequalificiation procedures should ordinarily be used in connection
with design-build services, regardless of contract type.
Fixed-price design-build contracts are suitable for use on small, simple
projects with well-defined scopes, for which design has been developed to at
least the 30 percent level through Standard Plans or otherwise. The
fixed-price is comprised of fixed fees for A/E services (which cover all costs
of remaining design work and A/E construction services, plus associated
overhead and profit) and a fixed-price to complete all construction work
(which covers all construction overhead and profit). The contract is awarded
based upon the guidelines contained in the Supplying Practices.
Cost-reimbursable design-build contracts are suitable for use on all major
projects for which the scope or complexity dictate the use of design-build
construction delivery services. Cost-reimbursable design-build contracts must
be based on a Guaranteed Maximum Price (GMP) which must be determined
through competition or through discussions. The GMP is comprised of fixed
fees for A/E services (which cover all costs of remaining design work and A/E
services during construction, plus associated overhead and profit),
reimbursable direct construction costs, and a construction services fee (which
covers all construction overhead and profit). If the supplier's total fees and
actual construction costs together exceed the GMP as adjusted for changes
(if any), the adjusted GMP is the amount paid for complete performance; if
they do not exceed the adjusted GMP, the Postal Service and the supplier
share the savings in accordance with a contractually established ratio.
Cost-reimbursable design-build contracts with a competitive Guaranteed
Maximum Price (GMP) are suitable for use on projects for which design has
been developed to at least the 30 percent level and a reliable estimate of the
maximum cost to construct the facility can be made. The contract is awarded
based on the guidelines in the Supplying Practices.
Cost-reimbursable design-build contracts with a negotiated Guaranteed
Maximum Price (GMP) are suitable for use on all major projects when factors
such as significant ambiguities concerning the scope of the project,
requirements for integration with fixed mechanization, or new types of
projects prevent the development of a reliable estimate of the maximum cost
to construct the facility. The Postal Service provides the offerors with design
which is less than 30 percent developed (typically only 10 percent developed)
along with a Construction Cost Limit (CCL). The CCL is the Postal Service
budget estimate of the total cost to construct the facility including the offeror's
overhead and profit. These contracts are awarded through the following
purchase process:
• Phase I covers the completion of design to the point where a
GMP can be reasonably negotiated and is awarded based upon
the procedures covering evaluation of technical and management
proposals and price proposals.
• Phase II covers all remaining design and all construction work
and is awarded based upon negotiation of a CCL within the GMP.
If a CCL cannot be negotiated within the GMP, the Postal Service may
require the supplier to redesign within the CCL at no cost to the Postal
Service or may withdraw from the project. If the supplier withdraws, the
Postal Service keeps the design and uses it to contract with a different
supplier using a fixed-price design-build contract or a cost-reimbursable
design-build contract with a competitive GMP.
Fixed-price contracts with economic price adjustment and contracts with
performance incentives may be used. See the Supplying Practices and
Handbook P-2, Design and Construction Purchasing Practices for further
guidance.
RFPs and contracts for design-build are unique. Guidelines regarding
applicable contract clauses and solicitation provisions are provided in
Handbook P-2, Design and Construction Purchasing Practices.
In addition to the technical proposal, offerors must also furnish Standard
Form 254, Architect-Engineer and Related Services Questionnaire, and
Standard Form 255, Architect-Engineer and Related Services Questionnaire
for Specific Project. See Handbook P-2, Design and Construction Purchasing
Practices for further guidance.
The project manager responsible for monitoring the performance of a
design-build contract must complete an objective written evaluation of the
supplier's performance including any environmental elements.
A CMSS supplier monitors the management, coordination, and general
direction of the work and progress of a construction supplier. The CMSS
supplier maintains a full-time staff at the project site during construction. A
CMSS supplier may be retained at any time during the project planning,
design, or constricting phase. During the construction phase the CMSS
Supplier must maintain a full-time staff at the project site.
The Supplying Practices and Handbook P-2, Design and Construction
Purchasing Practices offer guidance regarding publicizing requirements,
RFPs, and contracts, which applies to the purchase of construction
management support services.
Contracts for construction management support services may be
indefinite-quantity contracts or a single fixed-price contract for a single
project. In order to facilitate the expeditious assignment of CMSS suppliers to
projects where their services are needed, construction management support
services contracts are generally awarded as indefinite-quantity contracts
requiring the CMSS supplier to provide a range of construction services for
multiple construction contracts over a specified period of time and within a
specified geographic area. Limitations regarding contract term, dollar
limitations, and (delivery) work order limits are issued by the VP, SM, or an
authorized designee.
The Postal Service may contract with a CMSS supplier rather than exercising
an A/E construction-management option to perform field duties during
construction. The CMSS supplier may not prepare working drawings, design,
or specification that will be used for construction services.
Guidelines regarding applicable contract clauses and solicitation provisions
are provided in Handbook P-2, Design and Construction Purchasing
Practices.
See Handbook P-2, Design and Construction Purchasing Practices for
guidance on the evaluation and selection process.
The offeror's price proposal is a multiplier factor that is applied to each
work-day category. The multiplier submitted by the offeror must not be more
than two decimal places (e.g., 1.22 or 0.97).
See Handbook P-2, Design and Construction Purchasing Practices for
guidance on the contract award process.
The project manager responsible for monitoring the performance of a CMSS
Supplier must complete an objective written evaluation using Form 7477-A,
A/E's Performance Design Phase Evaluation and 7477-B, A/E's Performance
Construction Phase Evaluation, of the Supplier's performance, including any
environmental elements, for each project. For further guidance see
Handbook P-2, Design and Construction Purchasing Practices.
When the Postal Service requires environmental engineering services such
as the design and/or monitoring of environmental mitigation, abatement, or
clean-up measures, an engineering supplier should be retained using the
procedures applicable to procurement of A/E services. In those cases where
a supplier is hired to both design and perform environmental mitigation,
abatement, or clean-up measures, the supplier should be retained using the
procedures applicable to purchase of design-build services.
Mail transportation purchasing is the purchase of mail transportation and
related services. The following addresses the purchase of mail transportation
services authorized in Part V of title 39, U.S. code, and those authorized
under applicable guidelines of 49 U.S.C. 41904. It also addresses the
purchase of ancillary services directly related to the transportation of mail.
Generally, and depending on the item being purchase, mail transportation is
purchased following the policies and procedures contained in the Supplying
Practices. In case of any conflict between this section and those Practices,
the guidelines of this section govern.
Administrative officials are Postal Service officials designated by a
Contracting Officer to supervise and administer a Supplier's performance of
mail transportation and related services. Officials so designated do not have
the authority to make contract changes as described below.
A Contracting Officer may designate, by name and position title, Postal
Service employees to serve as Contracting Officers' representatives (see the
Appoint Contracting Officer's Representatives (CORs) topic of the Plan for
Contract Management task of Process Step 3: Select Supplier). These
individuals are authorized to take actions related to the award and
administration of specified contracts. Designations must be in writing and
must clearly specify the contracts or types of contracts over which the
Contracting Officer's representative has delegated authority. Designations
remain in effect until:
• Revoked by the Contracting Officer or the Contracting Officer's
successor; or
• Revoked by the departure or reassignment of the individual
designated.
A Contracting Officer's representative is authorized to:
• Review and grant contract adjustments when the annual
compensation paid under the contract will not increase or
decrease by more than 10 percent.
• Discuss, approve, and sign orders and contract modifications
changing service schedules, provided that the annual
compensation paid under the contract will not increase or
decrease by more than 10 percent; and
• Review and sign contract modifications having no effect on cost
or price.
A Contracting Officer's representative may not award, agree to, or sign any
contract or, except as described above, any contract modification or
termination notice. Only Contracting Officers have such authority.
CORs must be employed in the Executive and Administrative Schedule or the
Postal Career Executive Service. They may not redelegate their authority.
They may, however, assign the performance of administrative tasks to their
subordinates.
If suppliers have not been prequalified, the Contracting Officer, working with
the Purchase/SCM Team, must establish a list of potential suppliers for each
RFP, and maintain lists of potential suppliers for services solicited on a
recurring basis. Suppliers wishing to be included on the national mailing list
may apply by submitting Form 5436, Mailing List Application - Mail
Transportation Services, or by letter providing the information required by the
Purchase/SCM Team. Suppliers must be retained on mailing lists for 2 years
from the date of their application or the date of their most recent response to
a solicitation, which ever is later. Those that have been removed from mailing
lists may be reinstated by filing a new application.
The Purchase/SCM Team, using its knowledge of the marketplace and
depending on the particular purchase, should solicit enough mailing list
suppliers to ensure adequate competition. In addition, the Contracting Officer
may have an announcement of the request for proposals (RFP) published in
the Government-wide Point of Entry (GPE). Announcements of RFPs may be
made available to newspapers, other news media, and trade journals at no
cost to the Postal Service. Paid commercial announcements or
advertisements may be used when determined by the Contracting Officer to
be in the Postal Service's interest. Unless precluded by urgency, any
announcement must appear at least 30 days before the date for receipt of
proposals.
Information relevant to contract type is available in the Select Contract Type
topic of the Develop Sourcing Strategy task of Process Step 2: Evaluate
Sources.
There are three types of surface contracts: (1) regular contracts;
(2) temporary contracts; and (3) emergency contracts.
Regular contracts should be used whenever possible. Regular surface
contracts may have a base contract term as determined by the Postal
Service. However, due to Service Contract Act considerations, when the
purchase/SCM team plans to award a surface contract with a base term of
more than 5 years, the team must seek and receive an exemption from the
Department of Labor's Wage and Hour Division.
Temporary contracts may be used only when (a) the need for the service is
expected to be 2 years or less, or (b) the need for the service has been
established, but the duration, frequency, or volume of mail are not certain.
Temporary contracts must be replaced with regular contracts as soon as
service requirements are firmly established.
Temporary service contracts may not exceed a term of 2 years and may be
terminated by either party by 30-day written notice without entitlement or
liability.
Emergency contracts may be entered into only when an emergency exists
and must terminate when the emergency ceases and the Postal Service is
able to otherwise obtain service. No emergency contract may remain in effect
more than 6 months without the approval of the manager, Transportation
Portfolio. Circumstances under which emergency contracts may be awarded
include the following:
• A catastrophic event has interrupted normal transportation operations.
• Strikes or other labor disputes are causing service interruptions.
• A mail transportation supplier has been suspended or removed or a
contract has been terminated.
• A sole highway supplier has died or become incompetent and the
estate representative will not continue service.
• The generation of mail at unanticipated locations or an unexpected
increase in mail volume at regular locations exceeds the mail hauling
capacity of the Postal Service or regular suppliers.
Transportation contracts are distinguished by the mode of transportation
service provided. A contract for any mode of service may require container
and additional services such as stevedoring, terminal handling, and ground
drayage between postal facilities and the supplier's facilities. The modes
follow:
• Air Taxi. Air taxi contracts call for the transportation of mail by
dedicated aircraft operating between two or more specified
points. In most cases, these contracts also call for the exclusive
use of the entire aircraft capacity for the transportation of mail.
Handbook PO-513, Mail Transportation Handbook, and more
specifically, Handbook PO-509, Air Taxi Contract Administration,
provides guidelines and procedures in the purchase and
administration of air taxi contracts. If any conflict occurs between
the handbooks and these guidelines, these guidelines apply.
• Air Network. Air transportation network contracts call for the
transportation of mail by air carrier, usually by dedicated aircraft
between points where hub transfers are used.
• Air Segment. Air transportation segment contracts call for the
transportation of mail by air carrier between an origin and a
destination specified by the Postal Service.
• Air System. Air system contracts call for the transportation of mail
from, to and between any point(s) within the air carrier's existing
transportation system or network. The air carrier's existing
system may be modified from time to time as determined by the
air carrier. An air carrier's transportation system consists primarily
of transportation by aircraft, but may include road feeder service
(RFS) connections. Such contracts may be awarded either (a)
through a competition in which price is a factor in the selection
decision; or (b) on the basis of a uniform or common rate set by
the Postal Service. If price is a factor in selecting air system
suppliers, the purchasing procedures contained in the Supplying
Practices should be followed. If set rate contracts are solicited,
the purchasing method used must be authorized by the manager,
Transportation Portfolio. The method used may deviate from
those in the Supplying Practices, so long as those procedures (a)
are reasonably adapted to negotiated, set rate contracting; and
(b) are approved in writing, prior to issuance of a RFP, by the
manager, Transportation Portfolio.
• Surface Airlift. A surface airlift contract calls for the airlifting of
surface mail to its destination.
• Highway. Highway transportation is the surface transportation of
mail by means other than bus, rail or water. Service may be
between either two or more designated points (over the road) or
within a local metropolitan area (shuttle service). Highway
transportation contracts may include requirements for the in-route
distribution of mail in specially designed and equipped vehicles,
box delivery, collections and other services similar to those
provided by rural carriers. Under these contracts, another suitable
means of transportation may be authorized when the use of a
motor vehicle would prove impracticable.
• Rail Transportation. A rail transportation contract calls for the
transportation of mail in rail carrier supplied or Postal
Service-furnished equipment by freight carriers or their
subcontractors. These contracts may incorporate one or many
origin/destination segments. Handbook PO-513, Mail
Transportation Handbook, provides guidelines and procedures in
the purchase and administration of rail contracts. If any conflict
occurs between the handbook and these Practices, these
Practices apply.
• Amtrak Transportation. An Amtrak transportation contract
consists of mail movement from various origins to various
destinations via Amtrak passenger train network. Mail is
transported in either mail handling cars (MHCs), baggage cars or
other equipment as specified in the requirements. Handbook
PO-513, Mail Transportation Handbook, provides guidance and
procedures for the purchase and administration of the Amtrak
contract. If any conflict occurs between the handbook and these
Practices, these Practices apply.
• Intermodal Transportation. Intermodal transportation is the
transportation of mail in carrier-supplied or Postal
Service-furnished equipment by the use of intermodal carriers or
subcontractors. These Intermodal carriers include rail carriers,
highway suppliers, or third party intermodal companies.
Intermodal transportation is the combination of more than one
mode of transportation to move mail between origin and
destination (for example, the use of highway and rail
transportation to complete one movement of mail from origin
entry to destination arrival).
• Bus. Bus contracts call for the transportation of mail by passenger
common carriers in passenger-carrying or other motor vehicles
on the routes on which they are permitted to carry passengers.
These contracts may either cover a segment of the particular bus
service or may cover the entire bus system or network.
• Domestic Inland Water. A domestic inland water contract calls for
the transportation of mail in vessels between points within the 48
contiguous states or between points within Alaska, Hawaii, or
U.S. territories and possessions. Such a contract may include
guidelines requiring box delivery, collection and other services
similar to those furnished by highway suppliers or rural carriers.
• Domestic Offshore Water. Domestic offshore water contracts call
for the transportation of mail in vessels between points in the 48
contiguous states and offshore points and points in Alaska,
Hawaii, or U.S. territories and possessions.
• International Ocean. An international water contract is a contract
with U.S. or foreign-flag carriers for the transportation of mail by
vessel from points in the United States or its territories and
possessions to points in foreign countries.
Ground transportation network contracts call for the transportation of mail by
ground truck operations and may include ancillary terminal handling or
delivery requirements as determined by the Postal Service.
Terminal handling contracts call for the sorting, dispatching, loading, or
unloading of mail into and out of transportation equipment. These services
may be performed at the supplier or the Postal Service terminal handling
facility and may or may not be ancillary in nature to the line-haul services
performed by the same or other suppliers.
Leased trailer contracts call for the lease of trailers for transportation of mail
within geographical areas designated by the Postal Service. These contracts
may contain provisions for trailer maintenance and repair service and load
restraint systems, and other related requirements determined to be in the
best interest of the Postal Service.
The following may be used to obtain mail transportation services:
• Domestic Air Transportation Services. Transportation of mail
between points within the state of Alaska performed by scheduled
air carriers and paid for at rates of compensation established by
the Department of Transportation in its service mail rate orders
(30 U.S.C. 5402(f)).
• International Ocean Transportation. International ocean
transportation services may be obtained on a per-pound basis by
tender. Mail of all classes and empty mail equipment may be
tendered to U.S. and foreign-flag steamship companies for
transportation in accordance with the scheduled rates at Figure 1
(International Ocean Transportation Schedule of Rates), unless
the responsible manager has negotiated other rates. Mail may be
tendered at postal facilities for transport by the steamship
company to the pier, or at the carrier's facility. The schedule or
negotiated rates include any costs incurred for such transport.
• International Air Transportation. International air transportation
services other than those for which the Postal Service has
contracting authority under Title 39 U.S.C. 5402(a) and (b) and
49 U.S.C. 41904 must be obtained from carriers with permits and
reimbursed pursuant to Department of Transportation service
mail rate orders.
Figure 3
International Ocean Transportation Schedule of Rates
|
Distance (Nautical Miles)
|
Rate (cents/lb)
|
|
0-499
|
$16.0
|
|
500-999
|
16.4
|
|
1,000-1,499
|
16.7
|
|
1,500-1,999
|
17.1
|
|
2,000-2,499
|
17.4
|
|
2,500-2,999
|
17.8
|
|
3,000-3,499
|
18.1
|
|
3,500-3,999
|
18.4
|
|
4,000-4,499
|
18.8
|
|
4,500-4,999
|
19.1
|
|
5,000-5,499
|
19.5
|
|
5,500-5,999
|
19.8
|
|
6,000-6,499
|
20.2
|
|
6,500-6,999
|
20.5
|
|
7,000-7,499
|
20.8
|
|
7,500-7,999
|
21.2
|
|
8,000-8,499
|
21.5
|
|
8,500-8,999
|
21.9
|
|
9,000-9,499
|
22.2
|
|
9,500-9,999
|
22.6
|
|
10,000-10,499
|
22.9
|
|
10,500-10,999
|
23.2
|
|
11,000-11,499
|
23.6
|
|
11,500-11,999
|
23.9
|
|
12,000-12,499
|
24.3
|
|
12,500-12,999
|
24.6
|
|
13,000-13,499
|
25.0
|
|
13,500-13,999
|
25.3
|
|
14,000-14,499
|
25.7
|
|
14,500-14,999
|
26.1
|
Competitively awarded regular and temporary mail transportation contracts
may be renewed by the mutual agreement of the Postal Service and the
supplier. Clause B-78, Renewal, must be included in contracts that are
considered for renewal. Regular or temporary highway and inland water
contracts that have been wholly subcontracted less than 6 months before
their expiration date (except those subcontracted by an immediate family
member of a deceased or incompetent supplier) may not be renewed. Wholly
subcontracted contracts that have been in effect for greater than 6 months
are eligible for renewal and may be renewed by mutual agreement between
the Postal Service and the subcontractor; when this happens, the
subcontractor becomes the prime Supplier under the renewal contract.
Emergency contracts may not be renewed.
There are two types of contract renewals: (1) renewals of regular and
temporary contracts; and (2) short-term contract renewals (see below). The
renewal term of a regular contract is determined by the purchase/SCM team
and must be based on operational requirements, market conditions, and any
other relevant business factors; decisions to renew a contract for a period
longer than the original term must be reviewed and approved by the
next-higher level of contracting authority. The renewal term of a temporary
contract may not exceed 2 years.
The service provided at the beginning of the renewal term must be the same
as that existing at the end of the previous contract term.
Renewals involve the following procedures:
• Establishing Requirements. Before entering into discussions for the
renewal of a contract, the Purchase/SCM Team must determine the
need to be met by the renewal contract and a reasonable rate for the
service.
• Determining Satisfactory Service. Contracts should not be renewed
with suppliers who are currently providing less than satisfactory service.
Faults in service which do not rise to the level of deficiencies thereby
justifying termination for default may be sufficient to support a
determination not to renew.
• Negotiating Service and Price. Having determined that a contract is
appropriate for renewal, the Contracting Officer with the assistance of
the Purchase/SCM Team enters into discussions with the Supplier on
the terms of the renewal contract. Before agreeing to the final terms,
the Purchase/SCM Team must determine that renewal offers the best
value and most advantageous alternative to the Postal Service, price
and other factors considered. For the purpose of this determination,
"other factors" may include the benefits of continuity of service and the
potential costs of disruption arising out of resolicitation.
If agreement is reached on the renewal terms, the existing contract is
modified to reflect any adjustments in service, terms and conditions, and
rates. If a contract will not be renewed, or terms for renewal cannot be
agreed upon in whole or in part, any continuing service requirement may be
resolicited.
The determinations made throughout the renewal process must be
thoroughly documented in the contract renewal file.
Pending full renewal in accordance with the guidelines above, an expiring
contract that is eligible for renewal may be renewed for short terms of up to 1
year by mutual agreement of the parties. When the full renewal is approved,
the short-term renewal may be converted into a full-term renewal to cover the
full remaining term of the contract. Examples of circumstances under which a
short-term renewal may be appropriate include:
• A craft union Article 32 process has not been completed.
• The expiring contract is under review in the non-renewal appeal
process.
• When the need for service under the expiring contract has not been
determined or definitive service requirements have not been
completed.
Contracting Officers, working with the Purchase/SC M Team, may take action
to discontinue, extend, or curtail contracts; to change and restate service
required; and to increase or decrease frequencies. The Purchase/SCM Team
must carefully consider the effect of any proposed contract change. No
change may be authorized that is contingent on or related to a change in
another contract service without the concurrence of the Contracting Officer
responsible for the other service.
A contract, or any part of a contract, should be terminated if it becomes
unnecessary or if it is to be superseded by some other service. The Supplier
must be notified in writing of the termination and is entitled to the indemnity
provided in the contract. If it is more advantageous to operate than to pay the
indemnity, the service should be continued. Discontinuance of service under
the contract may, in some instances, be to the advantage of the Supplier. In
these instances, if the Supplier is willing to waive the indemnity, the waiver
must be included in a contract modification discontinuing the service. In the
case of highway or inland domestic water routes, the waiver must be included
in a supplemental agreement signed by the Supplier.
Suppliers should be provided as much advance notice as possible when a
contract is to be terminated before the end of its term. Specific requirements
for notice may be stated in the contract. A Supplier may be notified by letter
of intent to discontinue in advance of issuing a formal notice. In the case of
highway, inland domestic water routes or air taxi, the termination must be
approved by the manager, Transportation Portfolio, prior to being issued.
There are two general types of service changes: minor service changes and
major service changes. They are affected by contract modification.
A minor service change is any change that results in a change in equipment
type or termini; an extension; a curtailment; a change in line of travel; or a
permanent increase in the frequency or number of trips which, either
individually or in combination with previous changes, does not increase by
more than 100 percent the mileage required at the beginning of the contract
or renewal term. An insignificant minor service change is one that increases
the Supplier's rate of pay by no more than $2,500. A significant minor service
change is one that increases the Supplier's rate of pay by more than $2,500.
A major service change is any service change other than a minor service
change.
Insignificant Minor Service Change. Insignificant minor service changes
resulting in increased compensation to the Supplier may be ordered by the
Contracting Officer as a unilateral contract modification. They do not require
the Supplier's approval. The Contracting Officer may authorize an equitable
increase in compensation at the existing rate or at such other rates as the
Contracting Officer determines to be fair and reasonable. If the Supplier
considers the amount of increase inequitable, the Contracting Officer must
attempt to negotiate a mutually agreeable increase and incorporate it by
contract modification. If time permits, the Contracting Officer may discuss the
change and increase in compensation with the Supplier; if an agreement on
compensation is reached, the change may be made by contract modification.
If agreement cannot be reached, the Contracting Officer may issue a
unilateral contract modification and determine the amount of increased
compensation, subject to Clause B-9: Claims and Disputes.
Significant Minor Service Change. Significant minor service changes are
made by contract modification, incorporating a price adjustment, with the
agreement of the Supplier.
Major Service Change. Major service changes are discussed with the
Supplier and effected by contract modification. The Contracting Officer must
obtain the approval of the manager, Transportation Portfolio, before entering
into discussions regarding major service changes. When determining
whether or not to recommend or approve the negotiation of a major service
change, the Purchase/SCM Team must take into consideration indemnity
liability, the Supplier's experience in operating a service of the scope
required, past performance, rate, and any factors that would indicate the
proper course of action to take in the best interests of the Postal Service.
When a major service change is not approved by the manager,
Transportation Portfolio, the old service may be terminated and the new
service purchased.
Other Surface Contracts and Air Contracts. Service changes for contracts
other than those discussed in above may be made, consistent with the terms
of the contract, provided that these changes do not:
• Alter the original intent of the contract; or
• Transform the service into an entirely new service.
Exceptional service is additional service to perform scheduled or backup
route operations (such as extra trips, detour miles, and additional equipment).
Exceptional service may be required only when an unanticipated increase in
mail volume or other conditions arise that require the performance of
additional service or equipment. Whenever feasible, Contracting Officers
should hold discussions or negotiations with suppliers to establish the rate to
be paid for exceptional service before its performance. When discussions or
negotiations in advance would delay the mail or otherwise not be feasible, the
Contracting Officer or a designated representative may order the Supplier to
perform such service at pro-rata pay.
If no rate of pay for exceptional service has been negotiated in advance, the
Supplier may be paid a lump sum reimbursement for the difference between
costs incurred as a direct result of performing exceptional service and
pro-rata payment, provided that such costs are adequately supported by
evidence satisfactory to the Contracting Officer. Claims for compensation
above pro-rata pay for exceptional service must be filed in writing with the
Contracting Officer, with full supporting documentation, no later than 90 days
after the performance of the service.
Disputes regarding compensation are handled as provided in Clause B-9:
Claims and Disputes.
Improvement of mail service must be the primary consideration in ordering a
schedule change. Schedules may not be changed for the convenience of
suppliers, subcontractors, or drivers unless the change will in no way be
detrimental to the Postal Service. The Purchase/SCM Team must consider
the following before making schedule changes:
• Financial effect on the Supplier. Reversing a schedule or
requiring an excessive layover might cause sufficient increase in
cost of operation to provide the basis for a request for pay
adjustment.
• Hardship on suppliers or customers. Arbitrary action should be
avoided and reasonable effort should be made to work out
arrangements satisfactory to suppliers.
• Schedule realism. Schedules may not be set that would require
running times in violation of established speed limits.
The Purchase/SCM Team must ensure that schedule changes are
coordinated with all those responsible for other affected services.
The service and rate of compensation under emergency contracts may not
be changed unless specifically authorized in the contract or by the manager,
Transportation Portfolio.
It is essential to be aware of the following clauses:
• Clause B-71: Termination for Convenience (Transportation), must
be included in all regular and temporary highway and air taxi
contracts.
• Clause B-72: Termination for Convenience - Emergency
Contracts, must be included in all emergency highway and air taxi
contracts.
• Clause B-67: Changes (Transportation), must be included in all
highway transportation regular and temporary contracts.
For the purpose of this section, a subcontract is any agreement, other than
an employer-employee agreement or a temporary agreement for labor by an
owner-operator as described below, between a party that has contracted with
the Postal Service to transport mail and a third party, in which the third party
agrees to provide all or part of the contract service or goods or services that
support performance of the prime contract. An employer-employee
agreement is one under which the employee is subject to the continuing
authority of the mail transportation supplier to supervise and direct the
manner of work performance of the employee. Such an employer-employee
agreement is also characterized by, expressly or implied, the employer's
responsibility to pay compensation directly to the employee and to withhold
taxes and amounts for social security benefits from the employee's
compensation for the work performed under the agreement. If an
owner-operator, because of illness or temporary equipment failure, is
required to obtain labor from another in order to continue performance of the
service as required by the contract, that transaction is not a subcontract
within the meaning of this section.
The Subcontracting With Small, Minority, and Woman-Owned Businesses
topic of the Perform Preaward Activities task of Process Step 2: Evaluate
Sources, is applicable to subcontracts under this section.
All subcontracts that require the subcontractor to handle, deliver, or otherwise
to have access to the mail must be approved by the Contracting Officer,
except that a supplier may, without approval of the Contracting Officer,
subcontract the whole or part of a contract or irregular mail movements such
as plant loads with one or more owner-operators who provide and drive their
own vehicles.
Execution by a supplier of a subcontract for the performance of contract
service and its approval by the Postal Service does not release the Supplier
from its contractual obligations, nor from liability for damages.
Whenever the Purchase/SCM Team determines that a Supplier has breached
the contract by subcontracting the whole or part of the contract contrary to
the requirements of these Guidelines, the Contracting Officer may terminate
the contract for default.
Subcontractors performing contract service must meet the same capability
and qualification requirements as the prime Supplier.
If a whole contract is subcontracted, the subcontract must be for the full
remainder of the contract term, and the subcontractor's initial rate of pay
must be the same as the Supplier's unless there is a change in operations
costs resulting from a service change or from the enactment of a statute or
ordinance or the adoption of lawful regulations by any federal, state, or local
agency.
When a subcontract is terminated, the prime Supplier may be required to
take charge of the route. A subcontract to provide contract service may be
terminated at the subcontractor's request only with the prior approval of the
Contracting Officer, which will be given only for good cause. Subcontracts for
contract service are automatically terminated by death of the subcontractor or
abandonment of the service by the subcontractor.
When a subcontractor performing contract service fails to comply with the
terms of a contract, the Contracting Officer notifies the prime Supplier of the
subcontractor's irregularities. The Contracting Officer may require removal of
the subcontractor for failure to perform and that the prime Supplier resume
route operations, or exercise any other remedies provided by the contracts
with the prime Supplier.
Other Surface Contracts and Air Contracts. For other surface and air
contracts whose terms permit subcontracting, the Supplier must give the
Contracting Officer advance notice of its intent to subcontract. The Supplier
may enter into a subcontract unless notice of disapproval is received from the
Contracting Officer within 30 days of the date the notice was given.
In the case of highway or domestic inland water contracts, when the
Purchase/SCM Team determines that it is in the best interest of the Postal
Service, a Supplier may be released from a contract if unable to perform
adequately due to a disability, or when the Supplier's life or the public safety
would be endangered by the Supplier's continued performance. Whenever
practicable, a replacement contract should be awarded before the current
Supplier is released. The Supplier must waive any indemnity as a condition of
release. For other than highway or domestic inland water contracts, a
Supplier may be released only as provided in the terms of the contract.
The Contracting Officer may make deductions from the payment due Supplier
for failure to perform contractually required service, and may assess
damages for delinquencies with regard to any contractual requirements as
provided in the terms of the contract. The Contracting Officer may also
change or remit deductions and damages. Suppliers are also answerable in
damages to the Postal Service for the proper care and transportation of the
mail. Such damages, as determined by the Contracting Officer, may be
withheld by the Postal Service from compensation otherwise due the
Supplier. Suppliers are accountable to the Postal Service for loss or damage
to the mail or any part thereof due to (1) loss, riffling, damage, wrong delivery,
depredation, or other mistreatment of the mail by the Supplier or any of the
Supplier's officers, agents, or employees, or (2) the failure of the Supplier or
any of the Supplier's officers, agents, or employees to exercise due care in
the custody, handling, or transportation of the mail.
When a Supplier has committed a breach of the contract not sufficiently
serious to warrant termination, the Supplier may be assessed damages in an
amount determined by the Contracting Officer, in accordance with the terms
of the contract.
When a Supplier, or Supplier's agent or employee, permits loss or damage to
the mail, the Contracting Officer may withhold from the Supplier's
compensation as damages the value of the mail lost or damaged plus
administrative costs of handling the irregularity. When a Supplier holding
several contracts is subject to a fine or assessment for damages on one
contract, the Contracting Officer may withhold compensation due under other
contract held by the Supplier until such fines and damages have been
recovered.
The procedures below are to be followed upon the death or legally adjudged
incompetence of an individual contracting in his or her own name (sole
proprietorship), or in the name of a corporation all of whose stock is
substantially owned by the individual (closely held corporation) and the
Supplier is a highway or inland domestic water Supplier. These procedures
do not apply when the death or incompetence of an owner or officer of a
corporation does not significantly impair the corporation's ability to perform
the contract service.
The Contracting Officer must act to maintain continuity of service. If a prime
contract is affected, the representative of the estate (administrator, executor,
or immediate family member) must be contacted to ascertain whether the
estate wishes to continue to perform the service. If a subcontract is affected,
the subcontract may be terminated and the prime Supplier is responsible for
performance of the service.
The death of a sole proprietor terminates the contract, and the estate has no
obligation to continue to provide the service. The representative of the estate
may operate the route with the consent of the Contracting Officer. If there is
reason to deny consent, the Contracting Officer must promptly submit a full
written report to the manager, Transportation Portfolio, for determination. The
Contracting Officer must document the file with evidence of the
representative's authority to represent and assume control of the Supplier's
business.
When an individual regains competence during the performance of the
contract by a representative, the individual may apply to the contracting office
for reinstatement as supplier. Any such application must be approved by the
manager, Transportation Portfolio, before reinstatement.
When the Supplier is a partnership, and the death or incompetence of a
member of the partnership dissolves the partnership, the surviving partner or
partners may continue to operate the route. At the request of the surviving
partner or partners, the Contracting Officer will order a simple name change
to recognize the new contracting entity.
When the representative of an estate assumes a route, the contract rate
remains the same. Pending pay adjustment requests are processed under
instructions in effect at the time of adjustment. The operator of the route is
entitled to all benefits of the adjustment.
The representative of an estate may subcontract all or part of the route in
accordance with the discussion of subcontracts above.
If a contract expires while being performed by the representative of an estate,
the contract cannot be renewed, unless the representative is the surviving
spouse or child of the deceased, in which case the contract may be renewed
in that individual's name. If the representative of an estate does not want to
continue the service, or if consent is denied for the representative to continue
the service, the Contracting Officer should purchase emergency service and
issue a RFP for a new permanent service contract. Procedures for
processing payments to deceased or incompetent suppliers are described in
Handbook PO-513.
Any individual 21 years of age or older, any partnership in which at least one
partner is 21 years of age or older, and any corporation in which at least one
of the officers is 21 years of age or older may hold mail transportation
contracts. See the General Practices for restrictions concerning contracts
with Postal Service employees and business organizations substantially
owned or controlled by Postal Service employees or their immediate families.
RFPs may establish other eligibility requirements as needed.
The following persons are ineligible to perform services under a contract:
• Persons on parole or under suspended sentence for commission
of a felony.
• Persons with known criminal records which involve convictions for
offenses involving moral turpitude or dishonesty.
• Persons who associate with convicted felons.
• Persons known to engage in the illegal use, possession, sale, or
transfer of narcotics or other drugs.
• Persons who knowingly submit false data or conceal data for the
purpose of gaining employment.
• Persons whose traffic records indicate that their driving motor
vehicles would be hazardous (applies only to drivers and
assistants).
• Pilots with unsatisfactory aircraft operations safety performance
records. Persons who through their abusive or disruptive behavior
would pose a danger to fellow workers.
Supplier employees engaged as drivers of vehicles with a GVW of 10,001
lbs. or more must be at least 21 years old. All other drivers must be at least
18 years old. No supplier, subcontractor, or employee of a supplier or
subcontractor may be allowed access to mail matter or postal operational
areas unless he or she displays a valid identification card issued by the
Postal Service. Unless they have been excepted ("exempted"), the Postal
Service will not issue the identification cards described above to individuals
until they have been screened to determine their suitability for that access.
Forms and procedures for screening are as set forth in Handbook PO-508
and in any applicable Management Instruction.
Persons employed by suppliers whose own security screening procedures
have been approved by the Contracting Officer and reviewed by the
Inspector-in-Charge.
Persons who are civil service personnel otherwise subject to investigation
under Executive Order 10450.
• Persons previously screened under another contract with a break
in service of less than 1 year.
• Persons hired for service in an emergency of not more than 15
days. (This does not exempt regular relief or substitute
employees or those repeatedly hired on an emergency basis.)
• Persons employed to transport plant-load mail, but only if such
mail is not generated with regularly recurring frequency.
Notification of Supplier. The Contracting Officer will notify the Supplier of the
grounds on which any person has been denied access to the mails under the
procedure set out herein. Any decision as to whether a supplier,
subcontractor, or contract or subcontract employee is to be denied access to
the mail or precluded from operating a vehicle transporting mail must be
made by the Contracting Officer in accordance with the eligibility
requirements above.
Disclosure of Information. All information obtained or developed in the
screening program must be restricted from disclosure outside the Postal
Service to anyone other than the Supplier, subcontractor, or contract or
subcontract employee concerned.
General. The Purchase/SCM Team Is responsible for monitoring contract
performance in a manner appropriate to ensure that the Supplier provides all
services and equipment required under the terms of the contract.
Unsatisfactory Service. The Purchase/SCM Team under the direction of the
Contracting Officer must take necessary action to correct any problem
caused by unsatisfactory Supplier performance. If the remedies and
damages discussed above are insufficient, termination for default should be
considered.
Major Irregularity. A major irregularity is an action or service deficiency
requiring summary suspension or removal of the Supplier in the public
interest (such as subcontracting without approval, or theft, deliberate loss,
damage, or abandonment of the mail or contract operation). When a major
irregularity occurs, the Contracting Officer may take immediate suspension or
removal action, without prior notice to the Supplier. Suspension may be with
or without pay, as provided in the contract.
|
