of the carriers. These contracts, worth
an estimated $348 million, will allow the
Postal Service to enhance its competitive
position by using performance data to
manage mail flows. The Postal Service will
realize a savings of $2.6 million for 2003 and
expects to achieve an additional savings of
$4.2 million in 2004. In addition to the CAIR-
03 contracts, five alternate methods of
transportation contracts were awarded for
point-to-point segments where CAIR carriers
cannot travel. These contracts will save
approximately $5 million per year.
A contract was awarded for electricity
service for approximately 750 Postal Service
accounts in New Jersey. The contract is for
two years and includes three one-year
renewal options. This contract reduces the
cost of electricity through the competitive
purchase of electricity generation under
deregulation, reduces administrative effort
through a single contract, and leverages the
requirements of all eligible facilities within
participating utility service areas. During the
initial two-year contract term, preliminary and
conservative reductions are estimated
between 5 and 10 percent, or $1.1 million to
$2.2 million, based on estimated spending of
$22 million.
e. Security- and
Environmental-Related
Purchases
In response to the anthrax contamination
of the mail in 2001, the Postal Service sought
methods to quickly and accurately detect
biohazards in the mail stream. A Phase One
contract was awarded in 2002 for a
Biohazard Detection System at a not-to-exceed
cost of $175 million. Under the terms
of the contract, the supplier will manufacture
and install an initial 742 units nationwide.
Phase One deployment is planned to begin in
January and end in October 2004. If Phase
Two is approved, the supplier will deploy an
additional 962 units with deployment
planned for 2005.
A $26.4 million, cost-reimbursable
contract was awarded for pre-construction
consulting services, restoration, and remediation
|
work for the decontamination of anthrax
in the Curseen-Morris P&DC in Washington,
DC. This project was completed in December
2003.
As a result of the September 11, 2001,
terrorist attacks, a contract estimated to be
between $15 and $20 million was awarded
for the renovation and fix-up of the Church
Street facility in New York City, which is adjacent
to the site of the former World Trade
Center. The facility was being renovated at
the time of the attacks, but due to environmental
concerns, it is now being cleaned.
Renovations will take place once the cleaning
has been completed.
A contract was issued for facilities
Program Management Services for multidisciplinary
professional services to support the
Postal Service's real estate and facilities
needs nationwide. The supplier may support
single or multiple projects for new construction
lease, new construction owned, repair
and alteration, asset management and development,
and specialty projects such as
security upgrades and environmental remediation.
The not-to-exceed cost of the
contract is $900 million.
A contract for 6,240 alternative fuel
carrier route vehicles was awarded in the
amount of $121.4 million. This initial
purchase will allow the Postal Service to meet
its commitment to deploy 15,000 vehicles
through 2008 under its labor contract agreement
with the National Rural Letter Carriers
Association (NRLCA). This acquisition will also
meet the alternative fuel requirement of the
Energy Policy Act of 1992 that requires 75
percent of fleet purchases to be capable of
operating on an alternative fuel.
f. Major Purchases
In the Design and Construction commodity,
a guaranteed maximum price with shared
savings contract was negotiated for nearly
$167 million for the construction of a
976,340 square-foot processing and distribution
center, a vehicle maintenance facility,
and a warehouse in Philadelphia. |
Chapter 1
Compliance with Statutory Policies Introduction
- Fundamental Service to the People
- The Workforce
- Service to Small or Rural Communities
- Postal Cost Apportionment and Postal Ratemaking Developments
- Transportation Policies
- Postal Service Facilities, Equipment, and Supplies
Chapter 2 Postal Operations
Chapter 3 Financial Highlights
Chapter 4 2003 Performance Report and Preliminary 2005 Annual Performance Plan |