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Supplying Principles and Practices > USPS Supplying Practices General Practices > Contracts with former Postal Service Officers, Executives, and Employees, and Employees and their Immediate Families
Contracts with former Postal Service Officers,
Executives, and Employees, and Employees and
their Immediate Families
The Postal Service does not award contracts to (1) Postal Service
employees, (2) their immediate families, or (3) business organizations
substantially owned or controlled by Postal Service employees or their
immediate families. A Postal Service employee is any Postal Service officer
or any employee working on a full-time or part-time basis in a career or
non-career position, specifically persons in temporary positions such as
Postmaster replacements and rural carrier reliefs. Immediate family refers to
the spouse of, minor child or children of, or other individual related by blood
to an employee and residing in the employee's household.
The prohibition against the award of a contract to Postal Service employees
or their immediate families is waived when the Contracting Officer specifically
authorizes such a waiver in writing under the following circumstances:
• New real estate leases of interior space of 3,000 square feet or
less
• Renewals and extensions of leases of interior space of 3,000
square feet or less
• Renewals and extensions of leases of interior space of 3,000
square feet or more, subject to review and concurrence of the
Associate Ethical Conduct Officer
• Renewals of existing highway contract routes with immediate
family members of a Postal Service employee, subject to review
and concurrence of the Associate Ethical Conduct Officer
• Cleaning service contracts with immediate family members of
nonsupervisory employees
• The licensing of a patented invention that is the sole property of
the employee
• The lease of an individual employee's vehicle in connection with
his or her employment
It is Postal Service policy not to contract with former officers or Postal Service
Executive Service (PCES) executives or entities with which such individuals
have a substantial interest for one year after the date of their separation from
the Postal Service (whether by retirement or otherwise) if the contract calls
for substantially the same duties as they performed during their career with
the Postal Service, as determined by the Vice President of Human
Resources. Purchase teams must enforce this policy when purchasing
professional/technical or consulting services and include Provision 1-4:
Prohibition Against Contracting with Former Officers or PCES Executives, in
relevant solicitations, and Clause 1-11: Prohibition Against Contracting with
Former Postal Service Officers or PCES Executives, in resulting contracts.
The Vice President of Human Resources may grant exceptions to this policy
when he or she determines that doing so is in the best interest of the Postal
Service. All such exceptions must be documented and included in the
contract file.
The Postal Service may contract with former employees (other than former
officers or PCES executives) or with suppliers proposing the use of former
employees during contract performance when the former employee's
expertise will further the success of the purchase and the business and
competitive interests of the Postal Service. Contracts with former employees
or with suppliers offering the services of former employees should not be
confused with the employment of annuitants.
All requests for contracts with former employees (non-officer or executive)
must be forwarded by the purchasing organization to the manager of
Corporate Personnel Management (CPM), for review and approval. The
manager of CPM will decide whether the former employee should be hired as
a retired annuitant or should be contracted with by the purchasing
organization. When appropriate, the purchasing organization may award a
personal services contract to the former employee.
When a supplier proposes using a former employee, the manager of CPM
will review the former employee's employment history and advise the
Purchase/SCM Team as to whether the substitution of another individual is in
the best interests of the Postal Service. If such substitution is the case, the
contracting officer must advise the supplier to propose another individual to
perform the duties called for. If, following contract award, the supplier
proposes the use of a former employee, the same review and approval
process is required before the former employee may begin work.
Purchase teams must consider this policy in light of the particular purchase,
and the potential need for reviews and approvals, and as necessary, include
Provision 1-5: Proposed Use of Former Postal Service Employees, in
relevant solicitations, and
Clause 1-12: Use of Former Postal Service Employees, in resulting
contracts.
Provision 1-4: Prohibition Against Contracting With Former Postal Service
Officers or PCES Executives
Provision 1-5: Proposed Use of Former Postal Service Employees
Clause 1-11: Prohibition Against Contracting With Former Officers or PCES
Executives
Clause 1-12: Use of Former Postal Service Employees
Title 39 Code of Federal Regulations (CFR) 447.31
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