Congress afforded the Postal Service broad powers of operation in the marketplace, excluding it from most Federal laws and regulations concerning contracts, property, works, officers, employees, budgets, and funding; as well as the establishment, adjudication, and judicial review of administrative procedures and determinations. Most important, the Postal Service is not subject to the FAR, which is the primary regulation governing all Federal executive agencies in their purchasing of goods and services with appropriated funds. Please see Clauses and Provisions for a complete list of clauses and provisions applicable to the Postal Service.
There are a number of laws governing purchasing and material management at the Postal Service. Some of those laws are mandated in 39 CFR either as enacted or since amended, and others are applied to the Postal Service by its own terms. SM must comply with those requirements in all activities.
The followings laws are applicable to the Postal Service:
The Service Contract Act applies to any contract whose principal purpose is to provide services to be performed by service employees.
Many types of services are covered by the Service Contract Act, which attempts to cover contract workers who do not fall under the Davis-Bacon Act for construction and the Walsh-Healey Public Contracts Act for supplies. 29 CFR 4, Subpart C, and CFR 4.101 provide examples of coverage. The Service Contract Act does not cover executive, administrative, or professional personnel. If services are only incidental to the performance of a contract, the Service Contract Act does not apply.
The Service Contract Act also applies to subcontracts under covered contracts, and suppliers must include the Service Contract Act provisions in subcontracts for services. Except where indicated, the terms “contract” and “supplier” include “subcontracts” and “subcontractors” in this part.
The following contracts are exempt from the Service Contract Act (subject to the subsequent condition):
- Any contract for construction, alteration, or repair, including painting and decorating.
- Any work covered by the Walsh-Healey Public Contracts Act.
- Any contract for transporting freight or personnel by ship, plane, bus, truck, express, railway line, or oil or gas pipeline when published tariff rates are in effect or rates are covered by Section 10721 of the Interstate Commerce Act.
- Any service contract with a radio, telephone, telegraph, or cable company subject to the Communications Act of 1934.
- Any contract for public utility services, including electric light and power, water, steam, and gas.
- Any employment contract with individuals for direct services.
- Any contract that is principally for contract postal units.
- Contracts with common carriers for mail transportation by rail, air (except air-taxi routes), bus, or ocean vessel on regularly scheduled runs over established routes, when mail accounts for a small portion of the revenue.
- Contracts for mail service with an individual owner/operator, when it is not believed that the supplier will hire service employees under the contract except for short vacations or unexpected contingencies or emergencies.
- Contracts principally for the maintenance, calibration, or repair of:
This last exemption applies only when the supplier certifies that:
The Service Contract Act applies to any contract whose principal purpose is to provide services to be performed by service employees.
Many types of services are covered by the Service Contract Act, which attempts to cover contract workers who do not fall under the Davis-Bacon Act for construction and the Walsh-Healey Public Contracts Act for supplies. 29 CFR 4, Subpart C, and CFR 4.101 provide examples of coverage. The Service Contract Act does not cover executive, administrative, or professional personnel. If services are only incidental to the performance of a contract, the Service Contract Act does not apply.
The Service Contract Act also applies to subcontracts under covered contracts, and suppliers must include the Service Contract Act provisions in subcontracts for services. Except where indicated, the terms “contract” and “supplier” include “subcontracts” and “subcontractors” in this part.
- Contracts Over $2,500 — Clause 9-10 — Service Contract Act must be included in every contract for services covered by the Service Contract Act that is over $2,500 or is modified to exceed $2,500. This includes indefinite-delivery contracts and ordering agreements when orders are expected to aggregate more than $2,500. Clause 9-10: Service Contract Act is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders when checked off by the CO.
- Contracts of $2,500 or Less — Every contract of $2,500 or less for services covered by the Service Contract Act must include Clause 9-11: Service Contract Act — Short Form. Clause 9-11: Service Contract Act — Short Form is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders when checked off by the CO.
- Multiyear Service Contracts and Service Contracts With Renewal Options — Except for mail transportation contracts, multiyear service contracts and service contracts with options to renew that include Clause 9-10: Service Contract Act or Clause 9-11: Service Contract Act — Short Form must also include Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment. Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders when checked off by the CO.
The CO must file a notice of intent to make a service contract with the Wage and Hour Division, Employment Standards Administration, Department of Labor, for any contract over $2,500 covered by the Service Contract Act. SF 98, Notice of Intention to Make a Service Contract, must be used. The notice must be accompanied by SF 98 or a statement indicating the numbers and classes of service employees expected to perform the contract or a statement that the number will not exceed five (5).
Whenever possible, notice of intent must be filed at least 60 days (30 days for unanticipated requirements) before a competitive solicitation is issued, noncompetitive negotiations begin, an option is exercised, a contract is extended, or the anniversary date of a multiyear contract. If it is not possible to file a notice before the 30-day limit, it must be filed as soon as possible, with an explanation of why it was not filed on time.
If the contract will be for substantially the same services as are being furnished at the same location by an incumbent supplier whose contract the proposed contract will succeed and the wages and fringe benefits of the service employees are determined by a collective bargaining agreement, the agreement must be filed with the SF 98 along with any related documents specifying wages and fringe benefits that will apply to the contract. If the CO believes that the collective bargaining agreement was not the result of “arm’s-length” negotiations, a statement of the facts leading the CO to that conclusion must accompany the agreement, and the Office of Special Wage Standards must be advised if the wages and fringe benefits vary substantially from those for similar services.
If more than five (5) service employees will be involved in performing work covered by the Service Contract Act, the contract may not be awarded without a Department of Labor determination of applicable minimum wages and fringe benefits, unless the determination will be incorporated in the contract after award.
The required determination will normally be issued by the Wage and Hour Division, Employment Standards Administration, in response to the notice of intent filed under the Notice of Intent to Make a Service Contract, in sufficient time to be included as an attachment to the solicitation.
If the place of performance is unknown when the solicitation is issued, a wage determination need not be included in the original solicitation. Instead, when proposals are received, a notice of intent must be filed in accordance with Notice of Intent to Make a Service Contract, showing each location where the contract might be performed, so that a wage determination may be made for each. The wage determination that applies to the successful potential supplier must be included in the contract. If the Department of Labor finds this impracticable, the department may issue a composite wage determination.
The CO must contact the Wage and Hour Division to find out whether a wage determination is still current when a solicitation or negotiation has been delayed for more than 60 days from the anticipated date of award stated on the SF 98 submitted. Any wage determination received in response must replace the earlier wage determination.
When a Notice of Intent to Make a Services Contract has been filed, but the wage determination has not been received in time for attachment to the solicitation, the solicitation must state that the wage determination will be issued as an amendment to the solicitation or incorporated into the contract at the time of award.
Any revision of a wage determination received less than 10 days before proposals are due is not effective unless there is enough time to notify potential suppliers. If the contract action involves noncompetitive procedures, exercise of an option, or extension of a contract, any revision of a wage determination received after award is not effective if performance begins within 30 days after award; otherwise, any revision received at least 10 days before performance begins is effective.
If circumstances require that a contract be awarded before a wage determination is obtained, the contract must include Clause 9-10: Service Contract Act and provide for equitable adjustment of the contract terms when the wage determination is incorporated, effective from the date of issuance unless another effective date is specified in the determination. The notice of intent, if not already filed, must be filed promptly and explain the need for immediate award.
The Wage and Hour Division may require that a wage determination be applied to a contract retroactively, if the contract is subject to the Service Contract Act and more than five (5) service employees are involved in performing the work. If the CO questions the applicability of the Service Contract Act to the contract, the CO must forward the matter for resolution to assigned Legal Counsel. If it is determined that the Service Contract Act is not applicable to the contract, the CO must advise the Department of Labor of the basis for this determination. No further action is needed unless the Secretary of Labor determines that the contract is subject to the Service Contract Act.
If a wage determination does not contain all the classifications and rates requested in the notice of intent, those classifications for which no determinations were received must be deleted from the attachment incorporating the wage determination. When omitted classifications or classifications not previously contemplated are found necessary after award, they must be incorporated following the procedures in Clause 9-10: Service Contract Act.
The following requirements apply to contract awards under the Service Contract Act:
General questions about the Service Contract Act may also be directed to any regional office of the Employment Standards Administration of the Department of Labor.
A violation of the stipulations of Clause 9-10: Service Contract Act or Clause 9-11: Service Contract Act — Short Form makes the responsible party liable for the sum of any deductions, rebates, refunds, or underpayments due employees. At the written request of a district director (or above) of the Department of Labor, as much of the accrued payment due on the contract (or any other contract between the supplier and the Postal Service that has not been assigned) must be withheld as is necessary to pay the employees. Withheld sums must be kept in an escrow fund. Any compensation that the Postal Service or the Wage and Hour Division have found to be due must be paid directly from the withheld payments.
If the withheld payments are insufficient to reimburse the underpaid employees, this fact must be reported to the General Accounting Office (for possible setoff), the Wage and Hour Division of the Department of Labor, and the Department of Justice. The United States may bring an action to recover the remaining amount. Any sums recovered must be held in the escrow fund and paid, on order of the Secretary of Labor, directly to the underpaid employees.
Any violation of Clause 9-10: Service Contract Act or Clause 9-11: Service Contract Act — Short Form may be cause for termination of the supplier’s right to continue the work. If the contract is terminated, the Postal Service may enter into other contracts or arrangements to complete the work, charging any additional costs to the terminated supplier.
The comptroller general is responsible for sending a list of names of people or firms in violation of the Service Contract Act to all government agencies. Unless the Secretary of Labor recommends otherwise, Postal Service contracts may not be awarded to any violator on the list (or to any firm, corporation, partnership, or association in which such violator has a substantial interest) for 3 years from the date the list was published.
The Secretary of Labor administers and enforces the Service Contract Act.
The Davis-Bacon Act requires that construction contracts over $2,000 contain a provision setting the minimum wages to be paid to all classes of laborers and mechanics working on the work site. Minimum wage rates are determined by the Secretary of Labor on the basis of prevailing wage rates. Further guidance concerning the Davis-Bacon Act is provided in Handbook P2, Design and Construction Purchasing Practice.
The Copeland Anti-Kickback Act applies to any contract over $2,000 subject to the Davis-Bacon Act. The Copeland Act makes it unlawful to force laborers or mechanics to give up any part of their compensation except for permissible deductions such as taxes and union dues.
This act allows for the operation of food service and vending facilities by the blind on Federal properties to expand the economic opportunities of the blind, and for other purposes. Postal facilities are to include space for vending facilities operated by or on behalf of the blind.
Blind suppliers licensed under the provisions of the Randolph-Sheppard Act or by a state licensing agency must be given priority for the operation of food vending services in Postal Service facilities. See Handbook AS-707H, Contracting for Food Services, and Handbook EL-602, Food Service Operations, for additional details.
The Miller Act requires contract surety bonds on Federal construction. Specifically, a contractor on a Federal project must post two bonds — a performance bond and a labor and material payment bond. The surety company issuing these bonds must be listed as a qualified surety on the Treasury List http://www.fms.treas.gov/c570/c570.html, which the U.S. Department of the Treasury issues each year.
The Miller Act payment bond covers subcontractors and suppliers of material who have direct contracts with the prime supplier. These are called first-tier claimants. Subcontractors and material suppliers who have contracts with a subcontractor, but not those who have contracts with a supplier, are also covered and are called second-tier claimants. Anyone further down the contract chain is considered too remote and cannot assert a claim against a Miller Act payment bond posted by the contractor.
A subcontractor or supplier who has a direct contract with the prime supplier has no duty to provide any notice to the prime supplier before filing a suit on the bond. When the claimant is a second-tier subcontractor or material supplier, however, formal notice must be given to the prime supplier within 90 days of the last date the claimant furnished labor or materials for the project.
The final step in perfecting a claim on a payment bond is filling a lawsuit. For both first-tier and second-tier claimants, suit must be filed no sooner than 90 days after the last labor and material were furnished and no later than 1 year after that date. Full text of the Miller Act can be found on http://www.sio.org/html/miller.html.
The Miller Act provides that before a contract that exceeds $100,000 in amount for the construction, alteration, or repair of any building or public work of the United States is awarded to any person, that person shall furnish the United States with the following:
The Contract Work Hours and Safety Standards Act requires that certain contracts contain a clause specifying that no laborer or mechanic doing any work under the contract may be required or permitted to work more than 40 hours in any workweek unless paid at least one and one-half times the basic rate of pay for all overtime hours. A violation makes the supplier liable for liquidated damages. Lease agreements, being subject to Reorganization Plan No. 14 of 1950 under 39 U.S.C. 410(d), are subject to the safety standards of the Contract Work Hours and Safety Standards Act, in addition to the overtime pay requirements.
The Secretary of Labor is responsible for enforcement of the Work Hours and Safety Standards Act and may permit variations and exemptions from the Work Hours and Safety Standards Act’s requirements when necessary in the public interest or to prevent injustice or undue hardship (29 CFR 5.14).
Clause 9-2: Contract Work Hours and Safety Standards Act — Overtime Compensation is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders and must be checked off by COs for all contracts, lease agreements, and ordering agreements that may involve the employment of laborers or mechanics, except:
Under 39 U.S.C. 2201, the Postal Service may not contract for supplies to be manufactured by convict labor, except for purchase from Federal Prison Industries, Inc. The Postal Service may purchase supplies from firms employing persons on parole or probation under the conditions set forth in Executive Order (EO) 11755, December 29, 1973, as amended, which the Postal Service has elected to follow.
Except for purchases from Federal Prison Industries, Inc., all contracts involving the employment of labor must contain Clause 9-1: Convict Labor. Clause 9-1: Convict Labor is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders.
The Postal Service uses Federal Prison Industries, Inc. (UNICOR) as a source of supply for:
Price and delivery terms must be reasonable compared with those available in the commercial marketplace (as determined by market research or other means not involving obtaining competitive proposals).
Supplies and services available from Federal Prison Industries are listed in its Schedule of Products brochure. This brochure and individual product and service catalogs (which provide detailed ordering instructions) are available at Federal Prison Industries’ Web site (www.unicor.gov) and are available from:
UNICOR CORPORATE DIVISION
FEDERAL PRISON INDUSTRIES INC
320 FIRST STREET NW
WASHINGTON DC 20534-0001
The Walsh-Healey Public Contracts Act applies to indefinite-delivery contracts and ordering agreements if the aggregate amount of all orders is expected to exceed $10,000 during the year following award. Indefinite-delivery contracts and ordering agreements not initially subject to the Walsh-Healey Public Contracts Act become subject to the Walsh-Healey Public Contracts Act if orders will exceed $10,000 during any year after the first year. Applicability must therefore be determined annually until the contracts or agreements become subject to the Act.
If a contract for $10,000 or less is modified to exceed $10,000, the Walsh-Healey Public Contracts Act applies. If a contract that exceeds $10,000 is modified to $10,000 or less, the work performed after the modification is subject to the Walsh-Healey Public Contracts Act if both parties agreed to the modification.
The following purchases are exempt from the Walsh-Healey Public Contracts Act:
When a contract subject to the Walsh-Healey Public Contracts Act is awarded, the CO, under the regulations or instructions issued by the Secretary of Labor, must:
The Secretary of Labor may allow exceptions to the requirement that the representations and stipulations of the Walsh-Healey Public Contracts Act be included in contracts. The CO must submit requests for exceptions to the Administrator, Wage and Hour Division, Department of Labor, through the manager, SM Infrastructure.
The Walsh-Healey Public Contracts Act requires that certain contracts for the manufacture or furnishing of supplies must incorporate the Walsh-Healey Public Contracts Act requirements by reference. No CO, supplier, or subcontractor may purchase quantities amounting to less than $10,000 to avoid compliance with the Walsh-Healey Public Contracts Act.
All contracts subject to the Walsh-Healey Public Contracts Act must include Clause 9-6: Walsh-Healey Public Contracts Act, which is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders, and must be checked off by the CO, as appropriate.
The Freedom of Information Act (FOIA) provides the public with a right of access to records (hard-copy and electronic) that are maintained by Federal agencies, including the Postal Service. The FOIA contains exemptions that authorize the withholding of certain information. Postal Service regulations implementing the FOIA are located in 39 CFR 265. For procedures that implement FOIA, consult Handbook AS-353, Guide to Privacy and the Freedom of Information Act. For Postal Service Supplying Practices pertaining to FOIA, refer to the Section 7-14, Privacy Considerations. For additional information, visit www.usps.com/foia.
The Fair Labor Standards Act provides for minimum wages and maximum work hours, and it appoints the Wage and Hour Division of the Department of Labor to interpret and enforce the Fair Labor Standards Act (including investigating and inspecting general suppliers). The Fair Labor Standards Act applies to all employees (with some exceptions) engaged in interstate or foreign commerce, the production of supplies for such commerce, or any closely related process or occupation essential to such production. It also prohibits oppressive child labor.
Suppliers or their employees who inquire concerning the applicability or interpretation of the Fair Labor Standards Act must be advised that rulings fall under the jurisdiction of the Department of Labor and must be referred to the Regional Administrator, Wage and Hour Division, Department of Labor.
The Privacy Act provides privacy protections for personal information maintained by Federal agencies. The Privacy Act provides privacy protections for personal information that agencies maintain in a “system of records,” which includes files, databases, or programs from which personal information is retrieved by name or other identifier. Postal Service regulations regarding the Privacy Act are located in 39 CFR 266 and 39 CFR 268. Handbook AS-353, Guide to Privacy and the Freedom of Information Act, describes procedures relating to the Privacy Act, a full description of Privacy Act protections, as well as the Postal Service systems of records.
When an agency maintains a system of records, it must publish a notice that describes the system in the Federal Register. The notice must document how the agency manages personal information within the system. This includes how information is collected, used, disclosed, stored, and discarded. It also includes how individuals can exercise their rights to obtain access to and amend their personal information that is maintained in the system. The Privacy Act further requires that the Postal Service provide an appropriate privacy notice to individuals when they are asked to provide information about themselves.
The Privacy Act provides criminal penalties, in the form of fines, for any officer or employee who:
The Privacy Act also provides criminal penalties, in the form of fines, for any person who knowingly and willfully requests or obtains under false pretenses any record about another individual.
The Architectural Barriers Act requires that Postal Service buildings (both owned and leased) are accessible to the physically handicapped. Like Section 508 of the Rehabilitation Act of 1973, the Architectural Barriers Act impacts the cost of constructing or leasing buildings. Accessibility requirements of the Americans with Disabilities Act, applicable to private structures, have less stringent standards and put the burden on lessor, as opposed to the lessee. Full text of the Architectural Barriers Act can be found on http://www.access-board.gov/about/ABA.htm.
The Administrative Dispute Resolution Act (ADRA) constitutes a mandate to all Federal agencies to provide ADR services. It requires the Postal Service to have policies that address the use of ADR techniques and to appoint a dispute resolution specialist. For Postal Service practices concerning ADR, consult Sections 2-37, Hold Discussions, and 2-38, Negotiate with Suppliers, as well as Section 7-4, Supplier Disagreement Resolution.
ADRA requires the Postal Service to examine the use of ADR in connection with:
For the purpose of the statute, alternative means of dispute resolution include conciliation, mediation, facilitation, fact finding, minitrials, and the use of an SDR Official.
ADRA:
The Rehabilitation Act of 1973 requires suppliers to take affirmative action to employ and advance qualified individuals without discrimination as to their physical or mental handicaps.
With the exceptions outlined below, every contract for supplies or services (including construction and transportation services) over $2,500 must include Clause 9-3: Davis-Bacon Act, which is incorporated by reference in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders, and must be checked off by the CO when applicable.
The Postal Service complies with the Rehabilitation Act of 1973, EO 11758 of January 15, 1974, and the implementing regulations of the Secretary of Labor (41 CFR 60—741). The requirements of Clause 9-13: Affirmative Action for Handicapped Workers does not apply to any agency, instrumentality, or subdivision of the state or local government that does not participate in work under the contract.
The VP, SM, may exempt any supplier or subcontractor (or any group or category of supplier or subcontractor) from any provisions of Clause 9-13: Affirmative Action for Handicapped Workers in the Postal Service’s interest. The CO must submit a justification for any proposed exemption to the VP, SM.
Section 508 of the Rehabilitation Act is a law that requires Federal agencies, including the Postal Service, to procure electronic and information technology (EIT) that is accessible to persons with disabilities. The law requires that EIT equipment and systems procured on or after June 21, 2001, comply with standards written by the Architectural and Transportation Barriers Compliance Board (Access Board). These standards were published December 21, 2000, in the Federal Register. EIT includes technology such as web pages, software applications, computers, self-contained kiosks, copiers, multimedia, and telecommunications systems. These standards are intended to make these technology products more accessible to individuals with disabilities.
Under Clause 9-13: Affirmative Action for Handicapped Workers, the CO must provide the supplier with Department of Labor notices that state the supplier’s obligations and handicapped individuals’ rights under the Employment of the Handicapped program. These notices may be obtained from:
OFFICE OF INFORMATION
EMPLOYMENT STANDARDS ADMINISTRATION
US DEPARTMENT OF LABOR
WASHINGTON DC 20210-0001
When performance under Clause 9-13: Affirmative Action for Handicapped Workers requires revision of a collective bargaining agreement, the unions that are parties to such agreements must be advised that the Department of Labor will give them appropriate opportunity to express their views. Neither the CO nor any representative of the CO may discuss with representatives of the supplier or of the unions any aspects of the collective bargaining agreements.
The CO must forward any complaint concerning the Rehabilitation Act through channels to the VP, SM. No investigation or attempt to resolve the complaint may be made without specific instructions from the VP, SM.
When SM Infrastructure is notified that the Department of Labor has imposed sanctions on a supplier (such as withholding progress payments, terminating or suspending the contract, or debarring the supplier) for violation of Clause 9-13: Affirmative Action for Handicapped Workers, the CO must put the sanctions into effect as soon as possible.
The Javits-Wagner-O’Day Act requires that the Postal Service and other Federal agencies purchase certain supplies and services from qualified workshops that employ people who are blind or severely disabled. The Committee for Purchase from People Who Are Blind or Severely Disabled determines which supplies and services must be purchased and their price. Additional information on the applicability of the Javits-Wagner-O’Day Act can be found in Section 2-13, Purchase From Mandatory Sources.
Except as provided in submitted reports, every contract for supplies or services (including utility, construction, and transportation services) or for the use of real or personal property (including lease arrangements) in the amount of $25,000 or more must include Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans, which is included in Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders, and must be checked off by the CO as applicable. No CO, supplier, or subcontractor may purchase quantities of supplies or services in less-than-normal quantities to avoid application of Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans.
The Vietnam Era Veterans Readjustment Assistance Act of 1972, EO 11701 of January 23, 1973, the Veterans Employment Opportunities Act of 1999, and the implementing regulations of the Secretary of Labor (41 CFR 60—250) require suppliers to take affirmative action to employ, and advance in employment, qualified special disabled veterans, veterans of the Vietnam era, and other eligible veterans without discrimination based on their disability or veterans’ status, and to list all employment openings with appropriate local employment services.
Contracts may not be awarded to suppliers that have not submitted an annual Form VETS-100, Federal Contractor Veterans’ Employment Report. To determine whether a report has been submitted, COs must:
The CO must submit a detailed justification for any proposed exemption to the VP, SM, for submission through channels to the PMG and the director, Office of Federal Contract Compliance Programs (OFCCP).
The CO must furnish the supplier appropriate notices for posting when such notices are prescribed by the director, OFCCP at the Department of Labor’s Employment Standards Administration.
The CO must forward any complaint concerning the Vietnam Era Veterans Readjustment Assistance Act of 1972 through channels to the VP, SM. No investigation or attempt to resolve the complaint may be made without specific instructions from the VP, SM.
When SM Infrastructure is notified that the Department of Labor has imposed sanctions on a supplier (such as withholding progress payments, terminating or suspending the contract, or debarring the supplier) for violation of Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans, the CO must put the sanctions into effect as soon as possible.
The CDA creates a comprehensive system for resolving disputes between a supplier and SM at the Postal Service relating to the performance of most purchase contracts. The trigger point for this system is the CO’s decision. The claims of both the supplier and the Postal Service must be the subject of a CO’s decision. The supplier may appeal such a decision to the appropriate agency board of contract appeals; such boards are specifically authorized by the CDA. Alternatively, the supplier, in lieu of appealing a CO’s decision to a board of contract appeals, may file suit on its claim in the United States Court of Federal Claims (CFC). In both forums, the claim is heard de novo. If the supplier or the Postal Service (with the approval of the Attorney General) wishes, either may appeal a decision of a board of contract appeals or the CFC to the United States Court of Appeals for the Federal Circuit (CAFC). Additional information regarding the CDA procedures can be found in 39 CFR sections 601.109 through 601.112, and regulations governing proceedings under the CDA before the Postal Service Board of Contract Appeals can be found at 39 CFR Part 955.
The CDA applies to nearly all contracts with the Postal Service, express or implied, executed on or after March 1, 1979, for:
The Postal Service will pay interest on late payments and unearned prompt payment discounts in accordance with the Prompt Payment Act, 31 U.S.C. 3901 et. seq., as amended by the Prompt Payment Act Amendments of 1988, P.L. 100—496, in accordance with Clause 4-1: General Terms and Conditions, paragraph i, or Clause B-22 : Interest.
Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders.
Clause 9-1: Convict Labor.
Clause 9-2: Contract Work Hours and Safety Standards Act — Overtime Compensation.
Clause 9-6: Walsh-Healey Public Contracts Act.
Clause 9-10: Service Contract Act.
Clause 9-11: Service Contract Act — Short Form.
Clause 9-12: Fair Labor Standards Act and Service Contract Act — Price Adjustment.
Clause 9-13: Affirmative Action for Handicapped Workers.
Clause 9-14: Affirmative Action for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans.
