Our SPs&Ps establish a general purchasing process that contains elements common to our purchases regardless of the product or service being purchased. USPS’s framework consists of identifying needs, evaluating sources, selecting suppliers, delivering and receiving requirements, managing and measuring the contract, and end of life. The framework is designed to ensure three important results:
A basic foundation of our purchasing policy is competition. We compete the majority of our contracts valued at more than $10,000. Our policy is to secure “adequate” competition, which means that we seek a sufficient number of qualified suppliers to ensure that the required quality and quantity of goods and services are obtained when needed, and that the price is fair and reasonable. Competition is sought from a wide range of firms to ensure that we do business with the “best” performers.
Many of our contracting opportunities are publicized locally in various media (i.e. trade journals and local and national newspapers). We also publish announcements on Federal Business Opportunities (FedBizOpps), a government website that contains thousands of federal business contracting opportunities. Our supplier registration e-Sourcing system allows suppliers to register with USPS to provide their most up-to- date business information.
Under our purchasing process, we evaluate supplier proposals to determine the best value. Awards are not based exclusively on lowest prices, although price can be a significant factor in the evaluation. To determine best value, we evaluate such factors as past performance, the capability of the supplier to perform the work, and other proposal-specific performance factors. We may invite suppliers to provide oral presentations regarding their proposals to allow the opportunity for meaningful two-way communication.
The local buying authority (i.e. postmasters) can purchase supplies and services necessary to meet day-to-day operational needs. These purchases are made at local offices throughout the country using an USPS-authorized purchase card and are not subject to the rules, regulations, and guidance contained in the CFR and SPs&Ps, with the exception of the Davis Bacon and Service Contract Acts. A single purchase cannot exceed $10,000 or the limitations set within the Acts.
Prequalification is the process of up-front identification of top quality suppliers able to compete for specific types of contract opportunities. The benefits to us are twofold: (1) competition is enhanced and (2) quality performance is promoted. Benefits to suppliers include a more comprehensive opportunity to familiarize themselves with our requirements before solicitations are issued, which, in turn, yields lower proposal preparation costs.
We use prequalification for a single purchase or for a series of purchases (excluding local buys). Prequalification opportunities are publicized in the same manner as contract opportunities, and suppliers are evaluated using the same general process previously discussed.
USPS has reduced transactional costs significantly using e-Commerce. Integrating electronic business solutions for all supply processes is the goal of USPS. We will automate as much of the supply chain as possible. We expect the suppliers that we do business with will have the capability to conduct procurement transactions electronically as well.
USPS is required to be in compliance with the Prompt Payment Act (PPA). The payment method and frequency of payments are determined by the contract terms, which are subject to the requirements of the PPA. Payment of local buys are often made without prior knowledge of the terms and condition of payment, but are often found on the invoice or receipt of goods and services. If payment terms are not agreed upon prior to the receipt of goods and services, USPS will follow the guidelines of the PPA and process payment within 30 days of receipt of invoice or receipt of goods or services, whichever occurs later. Payments can be made with the purchase card (local buys), electronic funds transfers or by check.
