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Employee Vehicle Lease Termination and Reactivation Procedure

Due to pending computer system changes at the St. Louis Accounting Service Center (ASC), the computer program that processes payments for employee vehicle lease contracts will be replaced. The new system will not have the capability to calculate the Consumer Price Index (CPI) adjustment for vehicle lease payments. This article outlines the procedures required to ensure that the respective employees continue to be compensated for using their personal vehicles in lieu of Postal Service-owned vehicles.

Note: These procedures do not apply to contractual Carrier Drive-Out Agreements.

The Philadelphia Vehicles Category Management Center (CMC) will formally notify all employees with existing vehicle lease contracts that the contract will be cancelled 130 days from the date of the notice. A copy of the notice to the employee will also be sent to the respective postmaster or station manager. Effective November 23, 2006, postmasters and station managers who require the continuation of the employee vehicle use for business must complete PS Form 8048, Commercial Emergency Vehicle Hire, available at The daily rate mutually agreed to by the postmaster or station manager and the employee should include the allowance for the CPI portion of the daily rate, since it will no longer be automatically calculated.

The postmaster or station manager must forward the completed form to the servicing Vehicle Maintenance Facility (VMF) manager who will facilitate the addition of the agreed-upon rates into the VMF and St. Louis ASC computers. The CMC will not re-issue formal contracts. Employee vehicle usage reporting procedures to the VMF (such as employee, days used, miles driven) and subsequent payments to the employee remain the same. PS Forms 8048 must be completed and submitted to the VMF no later than 4 weeks prior to the end of the 130 day period mentioned above.

— Vehicles CMC,
Supply Management, 11-23-06