USPS | re: supply

news our suppliers can use


Issue 4  


January 2010












On January 30, 2009, President Obama signed three Executive Orders (EO) relating to government contracting. While none of the EOs applies to the U.S. Postal Service (USPS), we wanted to provide a general overview of the applicability to government suppliers.

EO 13494, Economy in Government Contracting, prohibits suppliers from using federal funds to cover costs for activities undertaken to persuade employees in any way regarding their rights to organize and participate in collective bargaining.

EO 13495, Nondisplacement of Qualified Workers under Service Contracts, requires suppliers to provide employment opportunities to qualified service employees working on a previous contract before the employment opportunities are offered to others, when the contract is valued at $100,000 or more and calls for the same or similar services at the same location.

EO 13496, Notification of Employee Rights under Federal Labor Laws, requires contracts to include a requirement that suppliers post notices about their employees’ rights under the federal labor laws.

Executive Orders 13494, 13495, and 13496 are not currently effective with respect to government contracting, as the necessary regulations to implement the EOs by the Federal Acquisition Regulation Council and/or the Department of Labor have not yet been issued. However, even when these regulations are issued, they will not be applicable to USPS contracts because the Postal Service is exempt from the statutes that are the authority for these EOs. In the future, the USPS may consider adopting these EOs. If we do, guidance will be issued in the USPS Supplying Principles and Practices, including the addition of any necessary solicitation provisions and contract clauses. Back to Top ›


The Postal Supplier Council (PSC) is an assembly of almost 100 invited USPS key suppliers and Postal Service stakeholders who have pledged to work collaboratively on mutually beneficial projects outside their contractual relationships.

Postmaster General and CEO, John E. Potter, addresses the Postal Supplier Council on December 2, 2009
Postmaster General and CEO, John E. Potter, addresses the Postal Supplier Council on December 2, 2009

The Postal Supplier Council held its annual Conference at USPS Headquarters in Washington, D.C., on December 1 and 2. This event was attended by more than 130 people, including PSC members and their business guests. Supplier members benefited from having the opportunity to hear from postal executives on a variety of topics to help them learn about USPS needs and how to work more efficiently with us. Attendees also were provided an opportunity to visit a USPS “sales booth” and several “technology booths” demonstrating eBuy2, eSourcing, SCRMS (Supply Chain Relationship Management System) and SEAM (Solution for Enterprise Asset Management). Topics and speakers included:

  • Postal Service Highlights
    – John E. Potter, Postmaster General and Chief Executive Officer
  • Service and Costs
    – Patrick R. Donahoe, Deputy Postmaster General and Chief Operating Officer
  • Growing Revenue
    – Robert F. Bernstock, President, Mailing and Shipping Services
  • Managing / Protecting Liquidity
    – Joseph Corbett, Chief Financial Officer and Executive Vice President
  • Sustainability
    – Samuel M. Pulcrano, Vice President, Sustainability
  • Supply Management Update
    – Susan M. Brownell, Vice President, Supply Management

Feedback on the event was favorable and heralded as a success in helping to achieve the PSC goal of improving communication between the USPS and its supplier community.

Deputy Postmaster General and COO, Pat Donahoe, speaks to the Postal Supplier Council on December 1, 2009.
Deputy Postmaster General and COO, Pat Donahoe, speaks to the Postal Supplier Council on December 1, 2009.

To learn more about the PSC go to

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As part of our continuing efforts to integrate supply chain management in the USPS, several organizational change efforts are underway. These changes will reduce organizational costs and increase efficiencies through consolidation, standardization and leveraging requirements. As a result, we will be better equipped to support our ongoing commitment to effective, efficient and environmentally responsible supply chains.

First, Area Distribution Networks transportation contracting offices consolidated from 11 field transportation offices into five offices with one satellite branch. See Issue 2 of re:supply for more details about this change.

Second, seventy-four field District Purchasing Specialist positions are being eliminated, and replaced with a Purchasing Shared Service Center (PSSC) structure operating in two locations. The interim Eastern PSSC office, located in Windsor, Connecticut, is now operational and covers all Postal Service locations. Both Eastern and Western PSSCs, covering their respective Postal Service areas, are scheduled to be fully operational by April 1. In conjunction with this change, the Chicago and San Francisco Western Services Category Management Center offices are being consolidated and relocated with the Denver PSSC/CMC location. The San Francisco and Chicago offices will be closed on April 30 and September 30, respectively.

Third, changes are underway to support Asset Management Integration (AMI) objectives. This includes renaming Supply Management Operations to Asset Management and creating a new organizational structure to effectively support AMI’s objectives and vision to significantly improve the Postal Service’s ability to manage its sizable investment in material inventories and physical assets.

Creating the new infrastructure involves realignment of the two Stamp Service Centers and consolidating 80 field Stamp Distribution Offices and Accountable Paper Depositories, with the exception of Hawaii, Puerto Rico, and Alaska, into six Stamp Distribution Centers (SD.C.s), which will report to Asset Management.

Further, we are eliminating seventy field District Material Management Specialist positions and creating positions to staff two new functions: Asset Accountability and Asset Management Planning. Change management efforts related to personnel selections started in Quarter 1 for both the District and Headquarters phases of the AMI organizational change, and these efforts will continue through June.

To see the latest Supply Management organization chart reflecting these changes click here.

For more information about who buys what commodities, visit the Supply Management webpage at

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Online purchasing is going to improve for 60,000 Postal eBuy users. In case you didn’t know, eBuy is the Postal Service’s enterprise requisition workflow and catalog ordering system and currently houses close to 100 supplier catalogs. The upgrade to eBuy2 started in December 2009 and is now in full swing. This upgrade will improve the user experience with side-by-side comparison shopping (with photos), improved search and reporting capabilities, and expanded use of Energy Star® and other “green” indicators.

The enhanced features of eBuy2 will help users find what they need at the best value to the Postal Service, and the improved reporting capability and stronger financial controls will help USPS meet SOX requirements and drive down costs. Users will be able to continue to purchase from the current supplier catalogs as eBuy2 goes live. And, they’ll have other product choices in 2010, when additional supplier catalogs are added to the eBuy2 system.

Questions about the eBuy2 implementation can be sent to

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The Postal Service continues to deliver on its longstanding commitment to Supplier Diversity. Annualized contract values with small businesses exceeded $3 billion in fiscal year 2009. During the same period, contracts with minority-owned businesses were nearly $371 million and contracts with women-owned businesses reached $696 million. In addition, Supplier Diversity program advocates and internal business partners represented the Postal Service at 29 business opportunity and trade fairs across the country. These events reached more than 35,000 potential suppliers.

This month the Postal Service once again was honored by as a multicultural business opportunities leader. Over 600,000 diversity business owners had the opportunity to participate in an online election to determine the “Top” government organizations. The USPS placed in the top five government organizations at number two behind NASA. A complete list of winners is available at:

Rupert R. Warner Jr., a member of the USPS Supplier Diversity Team, also was honored as a “Champion of Diversity” by Rupert joins 14 other distinguished individuals who were recognized for their outstanding achievements in various diversity initiatives within their companies and communities. A complete list of the 2010 Champions of Diversity is available at:

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If you are interested in learning more about what will drive the Postal Service’s new business model, Click here to access the information on

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WASHINGTON — President Barack Obama has appointed Postal Service Board of Governors member Alan C. Kessler of Philadelphia to a second term that will expire Dec. 8, 2015.

The Postal Service Board of Governors is comparable to a board of directors of a private corporation. The Board includes nine Governors, who are appointed by the President with the advice and consent of the United States Senate.

The nine Governors select the Postmaster General, who becomes a member of the Board, and those 10 select the Deputy Postmaster General, who also serves on the Board. The Postmaster General serves at the pleasure of the Governors for an indefinite term. The Deputy Postmaster General serves at the pleasure of the Governors and the Postmaster General.

The Board directs the exercise of the powers of the Postal Service, directs and controls its expenditures, reviews its practices, conducts long-range planning, and sets policies on all postal matters. The Board takes up matters such as service standards, capital investments and facilities projects exceeding $25 million. It also approves officer compensation.

Kessler, who was first appointed by President Clinton in 2000, served as chairman of the Board of Governors from January 2008 to January 2009. He currently serves as co-chair of the board’s Governance and Strategic Planning Committee. Kessler is an attorney and partner in the international, Philadelphia-based firm of Duane Morris LLP.

The Board of Governors meets on a regular basis. Meeting locations are generally in Washington, D.C., but may be scheduled in some other city where the members can see firsthand a Postal Service or large mailer's operation.

All meetings are open to the public, unless the Board specifically votes to close all or part of a meeting in line with exemptions permitted by the Government in the Sunshine Act [5 U.S.C. 552b(b)].

More information about the Postal Service Board of Governors is available at:

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Register to Do Business with USPS

If the shoe fits, wear it. If it doesn’t, return it using one of the package return services available from the U.S. Postal Service.

Customers looking for reliable, cost-effective solutions for returning merchandise have several options available through Returns@Ease at

Merchandise Return Service provides shippers with the flexibility to offer customers package return options using First-Class Mail, Priority Mail, or other package services.

Parcel Return Service provides qualifying high-volume business mailers with convenience and cost savings through a work-share discount program. Shippers can take advantage of the work-share discounts by enrolling in the program directly or by working with an approved third-party reverse logistics provider.

Shippers choosing either Merchandise Return Service or Parcel Return Service can simply include a return label with the original order or send it to customers by mail or e-mail.

Consumers returning holiday gifts from friends and family can rely on the ease and convenience of online solutions at Click-N-Ship to pay for postage, print shipping labels and request package pickup. They’ll also receive an online discount for postage and free Delivery Confirmation service on Priority Mail and Express Mail packages. Back to Top ›

Register to Do Business with USPS

Don’t Forget to Register!
Since the launch of the new USPS eSourcing solution earlier this year, we have had more than a thousand suppliers register and have conducted a number of electronic solicitations with the solution.

As a reminder, this is the solution the USPS is using to conduct electronic competitive solicitations, such as RFIs, RFPs, optimization events, and reverse auctions.

How Do Suppliers Register?
For instructions on how to register your company in the USPS eSourcing solution, please visit the USPS supplier registration site:

The person registering the supplier organization (i.e., account executive, sales manager, etc.) is the Application Manager and is responsible for managing the supplier account. This person will have overall account administration responsibilities, including entering and maintaining supplier data and authorizing additional users within the supplier’s organization. Suppliers will need to review and update their data on a yearly basis.

After completing the eSourcing registration process, the Postal Service will review the registration entry for completeness and accuracy within one business day of supplier entry. Once the entry is approved, the supplier will be notified the same day via e-mail of their log-in credentials, enabling them to participate in events.

Questions? Contact the USPS eSourcing technology support team at

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Contact Us!

We value your questions and feedback to this newsletter. Please feel free to reply to this message with your feedback or mail to:

US Postal Service
Supply Management Communications
475 L’Enfant Plaza, SW Room 4320
Washington DC 20260-4320

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