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Supplying Principles and Practices
Supplying Principles and Practices
Supplying Principles and Practices
Updated Through December 31, 2008
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
USPS Supplying Practices General Practices
Appointment and Selection of Contracting Officers
Develop Commodity Strategy
Bonds, Insurance, and Taxes
Supplier Disagreement Resolution
Emergencies
Deviations
Laws
Equal Employment Opportunity
Material and Property Accountability
Continuous Improvement
Supplier Debarment, Suspension, and Ineligibility
Contracts with former Postal Service Officers, Executives, and Employees, and Employees and their Immediate Families
Supply Chain Security
Privacy Considerations
USPS Supplying Practices Process Step 1: Identify Needs
Define and Understand Client Needs, Goals, and Strategies
Form Purchase/SCM Team
Identify Key Stakeholders
Prepare Preliminary Business Justification for the Need
Assess Resources
Involve Suppliers Early
Develop Preliminary Total Cost of Ownership Estimates
Identify Cost Reduction Levers
Develop Demand Management Strategy
Conduct Market Research and Benchmarking Analysis
Define Requirements
Analyze State of Technology
Revisit/Update Resource Assessment
Develop, Issue, and Analyze Responses from Request for Information (RFI)
Manage Risks
Conduct Make vs. Buy Decision Analysis
Analyze Unsolicited Proposals
Develop Logistics Support Strategy
Update Business Justification
USPS Supplying Practices Process Step 2: Evaluate Sources
Develop Purchase Plan and Best Value Parameters
Start Request for Proposals (RFP) Development
Update/Refine Total Cost of Ownership (TCO) Analysis
Formulate Project Budget and Request Funding
Perform Value Chain Mapping and Analysis
Involve Suppliers in Planning
Conduct Should-Cost Analysis
Conduct Spend Analysis
Perform Switching-Cost Analysis
Determine Extent of Competition
Develop Life Cycle Support Plan
Develop Preliminary Investment Recovery Plan
Purchase From Mandatory Sources
Clarify Data Rights and Intellectual Property Issues
Consider Auctions
Consider Performance-Based Contracting Arrangements
Determine Need for Progress or Advance Payment
Select Contract Type
Consider Use of Renewals and Options
Develop and Finalize Sourcing Strategy
Define Supplier Diversity Objectives
Prequalify Suppliers
Define Contract Management Metrics
Review and Finalize Request for Proposals (RFP)
Form Proposal Evaluation Team
Develop Proposal Evaluation Strategy
Issue Request for Proposals (RFP) and Publicize Requirements
Conduct Reverse Auctions Where Appropriate
Issue Amendments
Receive and Record Proposals
Implement Proposal Evaluation Strategy
Assess Technology Implications
Perform Risk Analysis on Supplier Proposals
Conduct Price/Cost Analysis
Conduct Supplier Capability (Technical and Financial) Analysis
Evaluate Foreign and Domestic Proposals
Hold Discussions
Negotiate with Suppliers
Subcontracting with Small, Minority, and Women Owned Business
Produce Contract Award Recommendation
USPS Supplying Practices Process Step 3: Select Suppliers
Award Contract and Notify Suppliers
Announce Award
Provide Feedback
Conduct Postaward Orientation Where Applicable
Appoint Contracting Officer's Representatives (CORs)
Define and Initiate Contract Management Activities
Finalize Investment Recovery Plan
USPS Supplying Practices Process Step 4: Deliver and Receive Requirements
Ordering
Shipping
Receipt and Inspection
Acceptance
Returns
USPS Supplying Practices Process Process Step 5: Measure and Manage Supply
Develop, Finalize, and Implement Cost Management Plan
Conduct Material Planning Activities
Implement Life Cycle Support Plan
Develop, Finalize, and Implement Inventory Control Plan
Implement Investment Recovery Plan
Execute Quality Assurance Plan (QAP)
Evaluate Contract Effectiveness
Contract Modifications
Share Lessons Learned
Decide to Renew a Contract or Exercise Options
Process Invoices
Make Payment
Terminate Contract
Close Out Contract
Recognize and Reward Supplier
USPS Supplying Practices Process Step 6: End of Life
Dispose
Write Off Inventory
Other Topics Considered
Evaluate and Analyze Actual TCO
USPS Supplying Practices Commodity Specific
Design and Construction Purchasing
Mail Transportation Purchasing
Professional/Technical and Consultant Services
Information Technology
Solicitation Provisions
Provision 1-1 Supplier Clearance Requirements (March 2006)
Contract Clauses
Clause B-1 Definitions (March 2006)