The VP, SM, is authorized to ensure that all Postal Service supplying activities further the business and competitive interests of the Postal Service. In doing so, the VP, SM, has both a fiduciary and a business responsibility to (1) maximize the financial position of the Postal Service and (2) to facilitate the business goals of internal clients. The VP, SM, defines the overall business strategies of the Postal Service’s various supply chains, and, in concert with the Postal Service management involved in the supply chains, manages them to promote the Postal Service’s overall business success. The VP, SM, is also responsible for the effectiveness of supply chain collaboration and planning — internally, and with the supplier community. Because supplier relationships are central to supply chain success, the VP, SM, is responsible for source selection, defining supplier relationship strategies, ensuring that supplier relations are conducted in a fair, objective, and business-like manner, and addressing and resolving supplier relationship issues.
The PRA provides purchasing authority to the postmaster general (PMG), who has delegated all purchasing and related policy development authority to the VP, SM. In turn, the VP, SM, has delegated to individuals the authority to negotiate, award, modify, and terminate contracts, and, in some cases, the authority to redelegate these authorities. Individuals delegated any or all of these authorities must ensure that all of the contractual actions, including negotiations, contract awards, modifications, and terminations, are within the scope of their delegated authority before taking those actions.
The VP, SM, is also responsible for the effective management of Postal Service material throughout its life cycle and the flow of materials through supply chains, ensuring that the best business practices are employed in fulfilling this responsibility.
When required by these Supplying Principles or supplemental guidance, COs must ensure that all required and appropriate reviews and approvals are obtained before taking a particular contractual action.
