Retail

CORRECTION

WEBVARS National Deployment

In the article "WEBVARS National Deployment" in Postal Bulletin 22145 (1-6-05, page 81), the byline was incorrectly listed as Self Service and Access Management, Delivery and Retail.

The correct byline is Retail Service Equipment, Delivery and Retail.

— Retail Service Equipment,
Delivery and Retail, 1-20-05

Supply Management

HANDBOOK P-2 REVISION

Design and Construction Purchasing Practices

Effective January 20, 2005, Handbook P-2, Design and Construction Purchasing Practices, is revised to reflect changes in two areas: (1) indirect costs in architect/engineer contracts and (2) price-to-be-determined-later (PDL) modifications.

We will incorporate these revisions into the next update of the online version of Handbook P-2 available on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, under "Policies," click on PolicyNet.

• Click on Handbooks.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

Handbook P-2, Design and Construction Purchasing Practices

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5A Contract Pricing for Architect-Engineer Services

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5.2 Cost Principles

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5.2.2 Contract Costs

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5.2.2.c Indirect Costs

[Revise the second paragraph to delete the words "unallowable costs" to read as follows:]

Indirect costs include allowable labor burden and allowable general and administrative expenses. Methods of developing indirect costs for reviewing and negotiating overhead rates vary widely because companies differ in their individual definitions of indirect costs. To determine indirect costs:

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6B Contract Administration for Construction Contracts

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6.5 Contract Modifications

6.5.1 General

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6.5.1-30 Price to be Determined Later Modification Procedure

[Revise text to read as follows:]

Contracting officers may not use letter contracts or not-to- exceed (NTE) letters in lieu of these price-to-be- determined-later (PDL) procedures. These expedited procedures for issuing contract modifications are used only when an immediate implementation of a construction modification is required to eliminate a hazardous or unsafe condition, to prevent a work stoppage, and/or to avoid an unnecessary increase in cost or time extension. In such cases, a PDL modification letter may be used. Form 4909 must document the reasons for usage of this PDL procedure. Follow the steps in 6.5.1-31 through 6.5.1-33.

6.5.1-31 PDL Modification Letter Request

[Revise text to read as follows:]

The COR prepares the PDL modification letter indicating the NTE dollar amount for the contracting officer's signature and sends it to the contractor via telecopy (fax) or certified letter. The contracting officer must commit funds (Form 4211 is issued) before issuing a PDL modification letter. The modification letter provides the contractor with a detailed scope of work and requests that the contractor provide a detailed cost breakdown, including any additional time required to perform the modified work. The letter must indicate the date by when the final agreement of the PDL must be negotiated (see 6.5.1-32).

6.5.1-32 Final Agreement on PDL Modifications

[Revise text to read as follows:]

Issue a completed modification (Form 7330) based on a final agreement with the contractor as soon as possible after issuance of a PDL modification letter, but prior to 50 percent completion of the modified work or the date indicated in the letter. If final agreement cannot be reached within this time frame, the contracting officer must issue a unilateral modification (Form 7330) establishing an equitable adjustment of the contract price and the time.

6.5.1-33 Monitoring Performance of PDL Modifications

[Revise text to read as follows:]

The project manager of the COR must monitor the progress of the modified work and the date indicated for final agreement and advise the contracting officer accordingly.

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— Supply Management Infrastructure,
Supply Management, 1-20-05