Notwithstanding the debarment, suspension, or proposed debarment of a supplier, the Postal Service may continue contracts or subcontracts in existence at the time the supplier was debarred, suspended, or proposed for debarment unless the VP, SM, directs otherwise.
When the circumstances giving rise to the debarment or suspension also constitute a default in the supplier’s performance of the contract, termination for default under the contract’s “default” clause is appropriate. A decision as to the type of termination action, if any, to be taken should be made only after review by the Postal Service CO and technical personnel and by Legal Counsel to ensure the propriety of the proposed action.
If the supplier presents a significant risk to the Postal Service in completing the current contract, the CO shall determine whether termination for convenience or cancellation under appropriate contract provisions is in the Postal Service’s best interest. In making this determination, the CO shall consult with Legal Counsel and should consider the following factors:
For suppliers or subcontractors that are debarred, suspended, or proposed for debarment, unless the VP, SM, makes a written determination of the compelling reasons for doing so, and with exception for service changes under mail transportation contracts, COs may not place orders exceeding the guaranteed minimum under indefinite-quantity contracts; place orders under optional use Federal Supply Schedule contracts, blanket purchase agreements, or basic ordering agreements; or add new work, exercise options, or otherwise extend the duration of current contracts or orders.
