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Permanent Note: On May 1, 2006, the Interim Internal Purchasing Guidelines were replaced by the Postal Service's Supplying Principles and Practices (SPs and Ps).
The SPs and Ps have been updated to reflect the following:
Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders
Clause 4-2 has been revised to add a section regarding Payment Offsets. This section provides information about the Postal Service’s participation in the Treasury Offset Program of the Department of Treasury’s Financial Management Service.
Process Step 2, Evaluate Sources
2-1 Develop Purchase Plan
- The title of this topic has been revised as this section now addresses purchase plans only.
- Section 2-1.1 has been retitled “General” and discusses purchase plans including a requirement for a written purchase plan for all purchases valued at $1 million or more.
- Some minor rewrites have been made to 2-1.2, Preliminary Sourcing Strategy.
- Section 2-1.3, Components of a Purchase Plan, has been revised by adding several new components, including sustainability, key milestones, and required reviews and approvals. The current paragraph discussing project plans and milestones has been deleted as superfluous.
- Section 2-1.4, Purchase Plan Review and Approval, has been added. This section establishes that all purchase plans for contracts valued at $1 million or more must be reviewed and approved and directs readers to a new 2-41, Obtain Selected Reviews and Approvals, for more information regarding approval authorities and other information.
2-10 Determine Extent of Competition
- Section 2-10.1, Market Surveillance, has been revised by rewriting the first and second sentences and deleting the phrase “and buying is anticipated.”
- The text regarding reviews and approvals in 2-10.3, Noncompetitive Purchases, has been deleted and replaced by several new sections: 2-10.3.3, “Additional Information” section directs readers to 2-20, Develop and Finalize Sourcing Strategy, for further discussion of sole sourcing as a sourcing strategy; 2-10.3.4, Reviews and Approvals, addresses reviews and approvals of purchase plans (stating that the plans must include the business case for the proposed noncompetitive purchase as discussed in MI SP-2007-1) and contract awards and directing readers to a new 2-41, Obtain Selected Reviews and Approvals; and a new 2-10.3.5, Endorsements, section has been added to state that proposed noncompetitive purchases valued at $250K must be endorsed by the VP of the requesting organization.
2-11 Develop Life-Cycle Support Plan
- 2-11.3, Life-Cycle Phases, has been revised to add logistics support to the elements that should be included in the life-cycle support plan.
2-20 Develop and Finalize Sourcing Strategy
- 2-20.1, Sourcing Strategy, has been revised for clarity.
- 2-20.3, Single Sourcing, has been revised to make clear the difference between single sourcing and sole sourcing.
- 2-20.4, Sole Sourcing, has been slightly rewritten for clarity and to state that a client’s bona fide need for a sole source may justify this sourcing approach.
- 2-20.5, Noncompetitive Purchases, has been revised for clarity and to include new text directing readers to 2-10, Determine Extent of Competition and 2-41, Obtain Selected Reviews and Approvals topics. Lastly, 2-20.7, Other Considerations, has been added to highlight the discussion of prequalification and auctions.
2-24 Review and Finalize Request for Proposals
2-40 Produce Contract Award Recommendation
- 2-40.1, General, and 2-40.2, Recommendation, have been slightly rewritten for clarity.
- A new 2-40.4, Required Preaward Activities, has been added to direct users to the new 2-41, Obtain Selected Reviews and Approvals, and 2-42, Postal Accountability and Enhancement Act-Related Reports, and to 3-1.1, Award and Notification.
2-41 Obtain Selected Reviews and Approvals
This new topic combines new and current text concerning the most commonly required, purchasing-related, reviews and approvals. It is not intended to be comprehensive and does not include all of the actions requiring review and approval contained in the SPs and Ps. It does not include the requirement that the use of a letter contract must be approved by a Portfolio manager, for example. It incorporates text from some current topics (such as that addressing contractual actions exceeding a contracting officer’s authority), adds text from other current sources, and adds new text addressing new matters like review and approval of purchase plans and contract awards and consultations with the Law Department. Specifics follow:
- 2-41.1, General, discusses the value of reviews and approvals. It also directs readers to the Actions Requiring Review, Approval, Consultation and Concurrence Exhibit in the Users Aids section of the SPs and Ps for a comprehensive list of all purchasing-related actions requiring review, approval, consultation or concurrence.
- 2-41.2, Reviews and Approvals of Contract Awards, Modification and Terminations: 2-41.2.1 General, establishes the review and approval requirements and 2-41.2, Review and Approval Authorities, established the review and approval authorities. 2-41.2.3, Terminations, discusses these purchasing-related actions and necessary reviews and approvals.
- 2-41.3, Review and Approval Process, delineates the review and approval process.
- 2-41.4, Reviews and Approvals of Purchase Plans Valued at $1 Million and More, addresses these reviews and approvals.
- 2-41.5, Noncompetitive Contractual Actions and Purchase Plans and 2-41.6, Actions Exceeding a Contracting Officer’s Delegated Authority, is revised text from 2-20, Develop and Finalize Sourcing Strategy.
- 2-41.9, Consultation with Assigned Counsel and the Law Department. This section has been added to alert contracting officers and purchase/SCM teams to the types of supplying-related matters which should be discussed with assigned counsel and the Law Department.
2-42 Postal Accountability and Enhancement Act-Related Reports and Certifications
This new topic discusses the reporting and quarterly certification requirements of the Postal Accountability and Enhancement Act.
Process Step 3, Select Suppliers
3-1 Award Contract and Notify Suppliers
- 3-1.1, Award and Notification, has been revised to include new material describing the sort of information unsuccessful offerors should be told in their written notifications.
3-5 Appoint Contracting Officer’s Representative
- 3-5.2, Evaluate Background and Training, has been revises to state that COR training and certifications are available through the Contracting Officer’s Representative training course 34Q0108, accessible through the Learning Management System (LMS), and that, in addition to the Standards of Ethical Conduct for Employees of the Executive Branch, all CORs must be familiar with the Supplemental Standards of Ethical Conduct for Employees of the Postal Service.
Process Step 5, Measure and Manage Supply
5-8 Contract Modifications
- 5-8.1, Types, is a new header applicable to the discussion that follows on types of modifications.
- 5-8.2, Reviews, Approvals and Reports, is a new section stating that all contract modifications valued at $100,000 or more must be approved by the appropriate authority, and that modifications valued at $25 million or more must be reported to the Disclosure Committee. Cross references to 2-41, Obtain Selected Reviews and Approvals and 2-42, Postal Accountability and Enhancement Act are provided.
5-13 Terminate Contract. This topic has been revised in the first paragraph by adding a statement regarding the Postal Accountability and Enhancement Act-related reporting requirement for any termination with a potential termination liability of $25 million or more.
7 General Practices
7-3.1 Bonds
Several changes related to the Miller Act and performance and payment bonds have been made in this General Practice. Specifics follow:
- 7-3.1.5, Performance Bonds, and 7-3.1.6, Payment Bonds, have been slightly rewritten for clarity.
- 7-3.1.7, Performance and Payment Bonds for Construction Contracts, has been revised. A new 7-3.1.7.a, Miller Act, states that the Act requires performance and payment bonds for contracts valued at more than $100,000, and a new
7-3.1.7.b, Contracts Exceeding $100,000, discusses this matter further. A new 7-3.1.7.c, Contracts Less than $100,000, states that a payment bond or alternate payment protection plan is not required for construction contacts valued at $100,000 or less.
7-7.1.1 Service Contract Act
This General Practice has been revised in a number of areas. The discussion of Exemptions has been revised to reflect changes in the Department of Labor’s regulations, including revised conditional exemptions for maintenance, calibration and repair of certain equipment, and new conditional exemptions for other services. A discussion of price adjustments has been added; this new text addresses when price adjustments are necessary, and whether and to what extent the Postal Service and suppliers are responsible for absorbing costs in the event of a change in wage determinations for multiyear contracts and contracts with options or renewals. Lastly, text discussing Notices of Intent and Minimum Wage Determinations have been updated to keep it current with DOL regulations and to highlight the e98 application process. A new Provision 9-4: Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment and Other Conditionally Exempted Contracts – Certification, Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment, and Clause 9-15: Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment and Other Conditionally Exempted Contracts – Requirements, have either been added or revised to reflect these changes. Specific citations follow:
- 7-7.1.1.2, Exemptions, has been rewritten for increased clarity and reorganized as 7-7.1.1.2.a, Statutory Exemptions, 7-7.1.1.2.b, Secretary of Labor Exemptions, 7-7.1.1.2.c, Exemption for the Maintenance, Calibration, or Repair of Certain Equipment, and 7-7.1.1.2.d, Other Conditionally Exempted Contracts. These paragraphs also contain revisions and additions to reflect updates in DOL regulations.
- Current 7-7.1.1.3, Requirements, has been deleted and relevant information moved to other sections, and a new 7-7.1.1.3, Price Adjustments, has been added.
- 7-7.1.1.4, Provisions and Clauses, has been revised to change the provision and clause prescriptions.
- Current 7-7.1.1.5, Notice of Intent, has been deleted and relevant information incorporated into a revised 7-7.1.1.5, Minimum Wage Determinations, which also has been revised to reflect new procedures.
- Current 7-7.1.1.7, Award, has been revised to reflect new procedures and contract information, and renumbered as
7-7.1.1.6.
7-7.1.5 Miller Act
This General Practice has been revised by deleting most of the material and providing readers a cross-reference to the discussion at 7-3.1, Bonds, and 7-3.1.7, Performance and Payment Bonds for Construction Contracts.
7-7.1.16 Vietnam Era Veterans Readjustment Assistance Act of 1974
7-11 Supplier Suspension, Debarment and Ineligibility
Throughout: Throughout this topic, the phrase “debarment, suspension, and ineligibility” and variations thereof, has been changed to “suspension, debarment, and ineligibility,” and various parts have been rewritten and reorganized for clarity. Specific substantial changes follow:
- 7-11.2, Suspension and Debarment Coordinator, has been revised by deleting the statement that the Coordinator will assist the General Counsel and the Vice President, Supply Management, when a supplier opposes a proposed suspension or debarment. This text has been moved to 7-11.3, Supplier Recourse.
- 7-11.4, Supplier Capability Analysis, has been revised to state that proposals, quotations, or offers, from suspended, debarred, or ineligible suppliers (“listed suppliers”) may not be considered unless the VP, SM, has determined that doing so is in the best interests of the Postal Service, and that no award is made to a supplier on the GSA and USPS lists unless the award is consistent with the GSA Summary Code or has been determined to be in the Postal Service’s best interests by the VP, SM.
- 7-11.5, Effect of Suspension or Debarment on Existing Contracts. A new paragraph, 7-11.5.1, Existing Contracts, has been added and current text has been revised to state that contracting officers may not add new work to an existing contract, by exercise of an option or otherwise, unless the work is classified as an insignificant minor service change to a mail transportation contract or a minor administrative change. Exceptions to this policy are discussed in a new 7-11.5.3, Soliciting and Awarding Contracts.
- 7-11.5.2, Termination, is a new paragraph containing information on this subject.
- 7-11.5.3, Soliciting and Awarding Contracts, is a new paragraph stating that in certain circumstances, contracting officers may solicit and award contracts, or add new work to existing contracts, of suspended, debarred or ineligible suppliers. Such actions must be reviewed and approved by the VP, SM, and the approval process in contained in this paragraph and a new paragraph 7-11.5.4, Request to Do Business with a Suspended, Debarred, or Ineligible Supplier.
Clauses and Provisions
Clause 1-1: Privacy Protection was updated to reflect the correct date of (July 2007)
Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment, has been revised to clarify the price adjustment process, and to state that the supplier and the CO will negotiate whether and to what extent either party will absorb the costs of a wage change.
Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans, has been revised to reflect the new $100,000 threshold for application of the Vietnam Era Veterans Readjustment Assistance Act of 1974.
Clause 9-15: Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment and Other Conditionally Exempted Contracts – Requirements, is a new clause delineating the requirements for exemption from the Service Contract Act.
Provision 9-4: Exemption from Application of the Service Contract Act to Contracts for Maintenance, Calibration, or Repair of Certain Equipment and Other Conditionally Exempted Contracts – Certification, is a new provision delineating the certification requirements for exemption from the Service Contract Act.
Tools and Techniques
A Purchase Plan Template has been added to 2-1, Develop Purchase Plan.
A Request for Business with Debarred or Suspended Supplier has been added to 7-11, Supplier Suspension, Debarment and Ineligibility.
Codification:
The SPs and Ps have been enhanced using the Alternate Codification Format. Codification is a system for numbering the chapters, subchapters, parts, and sections of a document. The codified version also provides an added measure of effectiveness in future search and reference capabilities.
The following table is an illustration of the Standard and Alternate Codification Formats:
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