HIGHWAY
CONTRACT ROUTE (HCR)
TERMS AND CONDITIONS
BASED ON THE
INTERIM INTERNAL PURCHASING GUIDELINES (IIPG)
ISSUE 3
August 19, 2005
PREFACE
This document represents a sample of the Highway Contract Route (HCR) terms and conditions that will apply to most solicitations and contracts.
Part 1 is the Statement of Work. The schedules for the specific trips are also a part of the Statement of Work.
Part 2 sets forth the general clauses included in the solicitations and contracts. Some of the clauses pertain to all contracts and some clauses may apply to box delivery contracts only, unless specifically called out in the transportation renewal document (Form 7447) or the notice of acceptance document (Form 7409).
Part 3 pertains to solicitations and contains the text of provisions that are intended (1) to inform suppliers fully of the Postal Service's needs for the particular purchase, (2) to explain how proposals will be evaluated, and (3) to identify the particular aspects of value deemed important to the success of the purchase.
Part 4 is a list of the exhibits and attachments mentioned in the solicitation or contract.
The following is a representation of the Terms and Conditions in Highway Contact Routes. Actual Terms and Conditions in the contract solicitation will take precedence over those represented in the Prequalification package attached.
TABLE OF CONTENTS
Page
PART 1. Statement of Work (Section b)
PART 2. Clauses
2.1. Payment (Highway) (Clause B-74) (May 2005)
2.1.1 Annual Rate Payments
2.1.2. Other Than Annual Rate Payments
2.1.3 Payment -- Fixed Price (Clause 2-26) (May 2005)
2.1.4 Payment Due Date
2.1.5 Interest (Clause B-22) (May 2005)
2.1.6 Payment Process
2.2. Special Clauses
2.2.1 Definitions (Clause B-1) (May 2005)
2.2.2 Appeals to Next Higher Contracting Authority
2.2.3 Subcontracting
2.2.4 Clause 1-7 Organizational Conflicts of Interest (May 2005)
2.2.5 Clause 1-11 Prohibition Against Contracting With Former Postal Service Officers or PCES Executives (May 2005)
2.2.6 Clause 1-12 Use of Former Postal Service Employees
2.2.7 Trailers
2.2.8 Fuel Cost Management Clause 9
2.2.9 DPS/Reclassification/PMPC/DPP/FSS
2.2.10 Supplier Tax Identification Number or Social Security Number
2.2.11 Supplier Registration
2.2.12 Loss, Theft, or Unauthorized Use of Designated Card Supplier Fuel Transaction Card
2.3. General Clauses
2.3.1 Clause 4-1 General Terms and Conditions (May 2005)
2.3.2 Changes (Transportation) (Clause B-67) (May 2005)
2.3.3 Termination of Contracts
2.3.4 Clause 4-2 Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders (May 2005)
PART 3. PROVISIONS
3.1 Instructions to Offerors
3.1.1 Provision 4-1 Standard Solicitation Provisions (May 2005)
3.1.2 Evaluation Information - Addendum to Provision 4-1
3.1.3 Provision 4-2 Evaluation (May 2005)
3.1.4 Provision 4-3 Representations and Certifications (May 2005)
PART 4. LIST OF EXHIBITS AND ATTACHMENTS
PART 1. Statement of Work (Section b)
Part 1 includes the Statement of Work (which is Section B in the front of the contract).
The U.S. Postal Service (USPS) has entered into an agreement with Global eProcure to provide the USPS access to technology allowing for a private marketplace to advertise highway contract transportation requirements. This web-based solution for transportation management and execution will enable the USPS to electronically tender, negotiate, and award transportation contracts.
All highway transportation suppliers who elect to participate on the USPS web-based marketplace agree that the terms and conditions contained in this document apply to the contracts that are awarded on the marketplace (Global eProcure). Any terms and conditions that are unique to the specific requirement (event or load) will be addressed separately on the load information sheet or attached to the load in a schedule or load note on the marketplace. The supplier also agrees that by participating in the bid process of an event with unique requirements, it is agreeing to the terms and conditions specified in the schedule or load notes associated with the event (load). Following are the terms and conditions that apply to all routes advertised on the USPS web-based marketplace (currently Global eProcure).
1.2 Schedule, Frequency, And Service Requirements
1.2.1 Schedule
The
service requirements will be stated on the Load Information Sheet on
the USPS marketplace. The load information sheet may include the
type of equipment, the required bid type (e.g., annual rate,
round-trip rate, trip rate, rate per mile), the reserve amount, and
the bid increments. Also available on the load information sheet may
be a link to a Highway Contract Route (HCR) schedule or special load
requirements. The HCR schedule will include the stops for each trip
and the load/unload requirements (times).
Suppliers should not assume that parking will be available (or allowed) at any postal facility.
The estimated total number of miles and per trip miles is given only as information. Prior to submitting a proposal, suppliers should make their own determination regarding the actual number of miles required and time needed to operate the route.
The estimated hours are approximately the number of hours needed to operate the trips as they are shown in the schedule. Also included in the total estimated hours is the number of hours needed for dock sortation, loading and unloading. Prior to submitting a proposal, the supplier must determine the actual hours based on its operation required to run the service.
SPECIAL NOTE: Any additional hours or miles which may result from the supplier's unique operations should be included in the proposal price. The miles and hours shown on the USPS schedules are the estimated minimum miles and hours necessary to operate the trips and do not include wash-up time, vehicle inspection, etc.
The supplier may be required to load and unload when requested by postal officials. Information on the load and unload times are defined in the schedule that is linked to the load event on the marketplace.
a. Approximate daily average loading and unloading times at the headout and terminus office will be described on the schedule.
b. Sufficient time for loading and unloading at intermediate office(s) is included in the en route schedule.
c. At offices where postal personnel are on duty, supplier will inquire prior to departure to determine if all mail has been tendered.
d. If required, the supplier will drop trailers upon arrival at destinations as directed by a postal official and will pick up outbound loads at location(s) directed by a postal official prior to departure.
e. In order to maintain schedule, postal personnel may assist with loading and unloading. Assistance with loading and unloading will be at the option of postal personnel.
f. Information designating the Administrative Official for this route will be described on the load posted on the marketplace.
g. The supplier will be required to report in sufficient time to load and depart on schedule.
h. The supplier will be required to load, transport, and unload all classes of mail at the headout, en route, and destinating offices.
i. If required, the supplier may be assigned lobby/vestibule keys or CMS wands, to be used in the delivery and collection of mail along the contract route. These are accountable items that must be signed out prior to the start of the designated trip(s) and turned in at the end of the trip(s). Loss, negligent damage, or failure to turn in accountable item(s) as scheduled may result in assessment of damages or termination of the contract.
1.3 Vehicle Requirements And Specifications
a. The number and type of vehicles required will be described on the marketplace and the schedule linked to the event (load). The following describes the types of vehicle that are similar to those requested in the past. The supplier will also be required to have readily available sufficient stand-by equipment of the type(s) requested in the specific service requirements to perform extra trips, to permit vehicle maintenance, and to prevent delays in emergencies such as mechanical failures and poor weather conditions.
b. Tractors and trailers used on the awarded routes must be spotted as directed by the contracting officer or authorized representative.
c. The suspension and tires on vehicle(s) must be compatible with the gross axle weight rating.
d. Interior side and front walls of the cargo compartment for
trailers and straight trucks must be fully covered with ¼”
plywood, floor to ceiling. Installation of a durable flat sheet
scuff liner (metal, fiberglass, etc.) is also required and must be
bonded over the plywood without any protruding fasteners. Two bands
of scuff lining must be applied to the full length of each interior
side wall and the front wall; one band 26 inches wide positioned from
the floor to a height of 26 inches and a second band 6 inches wide
positioned immediately above the upper retainer rail or, in the
absence of an upper rail, 67 inches on center above the floor.
The
Postal Service intends to transport mail loaded on pallets, in
wheeled containers, metal and non-metal containers, in sacks, and
loose loaded. The cargo compartment must be constructed so that it
is protected from damage during loading and unloading by either
manual or mechanized methods.
e. The cargo compartment must be equipped with a load restraint system as indicated in the Vehicle Specifications (Attachment B). The cargo compartment must also be equipped with E-type shoring bar(s) and ratchet type restraining straps (see Vehicle Specifications, Attachment B). Trailers must be equipped with either two (2) rows of e-tracks or logistic posts with two (2) straps placed every 10 feet at minimum.
f. The rear door for trailers and straight trucks must be full roll-up type equipped with a security locking device, safety chain, and pull-down strap.
g. Each cargo compartment (for trailers and straight trucks) must have interior lights which are adequate to provide sufficient light for safe loading and unloading and operate off the electrical system of the vehicle.
h. Each vehicle must, at a minimum, be licensed to carry the combined vehicle curb weight, crew weight, and payload weight specified in the requirements. The suspension and tires on vehicles must be compatible with the gross axle weight rating.
All equipment shall be presented for inspection at the location and time indicated by the contracting officer or authorized representative. Equipment used on the contract must at all times be maintained in a condition that reflects favorably on the Postal Service and is acceptable to the contracting officer or authorized representative for the full term of the contract and any subsequent renewals that might be negotiated.
In the event the Postal Service deems it necessary to tender to the supplier for transportation on this route trailers other than those provided by the supplier, the supplier shall not be liable for trailer license, temporary permits, or other fees imposed by state or local agencies.
The supplier will not be tendered, nor transport, any trailer which does not meet the minimum requirements for safety as required by the Motor Carriers Safety Regulations, and by other requirements imposed by state or local governments.
No additional compensation will be allowed the supplier for transporting trailers other than those the supplier furnishes, nor will any deduction be made from the contract rate of pay, when the Postal Service tenders to the supplier trailers other than those furnished by the supplier, unless the tender of such trailers is because the supplier fails to provide the contractually obligated number of trailers to the Postal Service. In the latter event, a sum equal to the cost the Postal Service incurs in furnishing trailer(s) will be deducted from the pay normally due the supplier.
k. All vehicles used for this service must be licensed for the maximum weight allowed by applicable state laws.
l. The supplier will be required to provide as a minimum the vehicle(s) described on the marketplace and in the schedule linked to the event (load).
1.3.1. Tandem Axle Tractor (Double Drive) (N/A cubes)
a. The minimum acceptable gross vehicle weight rating (GVW/GCW) for the tractor(s) listed above must equal or exceed the combined weight of the following:
1. The curb weight of the tractor;
2. An operating crew's weight of 600 pounds;
3. The curb weight of the required trailer (if trailers are required); and
4. A payload weight of 47,000 pounds.
SPECIAL NOTE: The tractor curb weight includes the weight of the tractor with all installed attachments, accessories, equipment and a full complement of fuel, lubricants and coolant.
b. Tractors used under this contract must be equipped with a sliding fifth wheel so that trailers of any legal length may be transported.
1.3.2. Single Axle Tractor (N/A cubes)
a. The minimum acceptable gross vehicle weight rating (GVW/GCW) for the tractor(s) listed above must equal or exceed the combined weight of the following:
1. The curb weight of the tractor;
2. An operating crew's weight of 600 pounds;
3. The curb weight of the required trailer (if trailers are required); and
4. A payload weight of 40,000 pounds.
SPECIAL NOTE: The tractor curb weight includes the weight of the tractor with all installed attachments, accessories, equipment and a full complement of fuel, lubricants and coolant.
b. Tractors used under this contract must be equipped with a sliding fifth wheel so that trailers of any legal length may be transported.
For straight trucks, the supplier may be required to provide the cargo compartment measurements described below:
|
Cube |
Payload |
EXTERIOR |
INTERIOR |
||||
|
|
|
Max, Length |
Max. Width |
Max. Height |
Min. Length |
Min. Width |
Min. Height |
|
600 |
7,200 |
24 |
8.5 |
13.5 |
12.0 |
7.5 |
7.0 |
|
800 |
9,600 |
28 |
8.5 |
13.5 |
16.0 |
7.5 |
7.0 |
|
1000 |
12,000 |
32 |
8.5 |
13.5 |
20.0 |
7.5 |
7.0 |
|
1200 |
15,000 |
36 |
8.5 |
13.5 |
24.0 |
7.5 |
7.0 |
|
1350 |
15,000 |
36 |
8.5 |
13.5 |
24.0 |
7.5 |
7.0 |
For vans that are 800 cubes or above, the bed height from the ground must be a minimum of 48 inches and a maximum of 52 inches.
The minimum acceptable gross vehicle weight rating (GVW/GCW) for the vehicles listed above must equal or exceed the combined weight of the following:
1. The curb weight of the vehicle;
2. An operating crew's weight of 600 pounds; and
3. The payload weight of indicated above for the specific vehicle.
SPECIAL NOTE: The vehicle curb weight includes the weight of the tractor with all installed attachments, accessories, equipment and a full complement of fuel, lubricants and coolant.
For the vehicles specified above, each cargo compartment must contain three louvers that can be opened and closed in order to provide proper ventilation for the transportation of live mailable matter. The louvers must be located in the upper side front left, the upper side front left, and the upper side front right, and the upper side right rear of the cargo compartment. The louvers must be at least 6 inches by 10 inches in size.
a. The required trailer size will be described on the web-based marketplace. Trailer specifications also are appended to this agreement.
b. Each trailer must contain three louvers that can be opened and closed in order to provide proper ventilation for the transportation of live mailable matter. The louvers must be located in the upper side front left, the upper side front right, and the upper side right rear of the trailer. The louvers must be at least 6 inches by 10 inches in size.
Interior side and front walls of the trailer must be fully covered with 1/4" plywood, floor to ceiling. Installation of a durable flat sheet scuff liner (metal, fiberglass, etc.) is also required and must be bonded over the plywood without any protruding fasteners. Two bands of scuff lining must be applied to the full length of each interior side wall and the front wall; one band 26 inches wide positioned from the floor to a height of 26 inches and a second band 6 inches wide positioned immediately above the upper retainer rail or, in the absence of an upper rail, 67 inches on center above the floor.
The Postal Service intends to transport mail loaded on pallets, in wheeled containers, metal and non-metal containers, in sacks and loose loaded. The cargo compartment must be constructed so that it is protected from damage during loading and unloading by either manual or mechanical methods.
d. Trailers must be equipped with a load restraint system with door saver as indicated in Specification B and Specification D. The cargo compartment must also be equipped with 0 metal E-type shoring bar(s) and two (2) ratchet type restraining straps for every ten (10) feet.
Trailers used on this contract must have rear doors that are equipped with security locking device, safety chain and pull-down strap.
Trailer landing gear must be equipped with sand pads.
NOTE: Refrigerator-type trailers are not acceptable.
1.4 General Requirements And Prohibitions
The supplier shall provide transportation services as specified in this Statement of Work and Specifications.
The supplier shall carry all mail tendered for transportation under this contract, whatever may be its size and weight, with certainty, celerity, and security, in accordance with the operating schedule and between the points fixed in the schedule, as modified from time to time pursuant to this contract. The supplier, when so directed by the contracting officer, shall (i) load and unload mail, (ii) make the exchange of mail, and (iii) perform all minor administrative services as may be necessary to track and trace the mail. Passengers, freight and other traffic, if authorized by this contract, may be accommodated, but shall not delay the mail or reduce the contracted cubic capacity. In the event that this is a contract for carriage of mail by domestic water vessel, the supplier shall serve terminal post offices without regard to distance from the nearest landing, unless the Postal Service has previously assumed such a terminal service, and shall serve all intermediate post offices along the route located not more than one-fourth of a mile from the vessel landing.
Supplier will be required to perform additional trips of service as outlined below:
The supplier must proceed to perform any extra trips ordered by the contracting officer or authorized representative. The supplier must provide such service departing from the office having the requirement for service within (4) hours after notification by the contracting officer or authorized representative. Extra round trips of service shall be performed within the total elapsed time (total hours) reflected in the regular trip schedule.
The supplier shall protect the mail from loss, depredation, or damage. The mail shall be transported in an enclosed, water-proof compartment, equipped with secure locking devices, which shall be kept locked at all times except when access thereto is required for performance of service under this contract. The supplier shall await completion of all delayed mail connections except when otherwise directed by the contracting officer or authorized representative, or the supplier's vehicle is carrying passengers on a fixed schedule. If the supplier is authorized to carry passengers, the mail must be carried in a compartment separate from the passengers so that they cannot have access to the mail. The supplier shall not transport hitchhikers in vehicles while the vehicles are being used in the performance of service on this contract.
1.4.4. Appearance of Equipment
The supplier shall at all times maintain its transportation equipment used under this contract so as to present a professional and safe appearance, as determined by the contracting officer (or his designee) conducting inspection of the transportation equipment. The supplier may use a sign on its vehicle(s) that states "United States Mail," but only when vehicle(s) are being used in the performance of service under this contract. Vehicle(s) (including both tractors and trailers) which are painted red, white and blue must have inscribed on their doors in black letters at least one inch high the following words: "United States Mail Contractor." Trailers so painted must also bear the same inscription on the front of the trailer in black letters two inches high and placed sufficiently high to be visible above the tractor unit.
The supplier and his/her employees must not perform contract operations while under the influence of alcohol, narcotics, or any other substance that tends to impair judgment; nor will they consume any of the foregoing while engaged in contract operations.
No person while on Postal property, or while performing services under a Postal contract, shall carry firearms, other dangerous or deadly weapons, or explosives, either openly or concealed.
The supplier shall not carry letters outside of the mails.
1.4.8. Denial of Access to the Mails
The supplier shall deny access to the mail to any employees or personnel when required to do so by the contracting officer.
1.4.9. Suitability of Contract Personnel
In conducting operations under this contract, the supplier shall not employ any individual who is: lacking sufficient ability to perform properly the required duties; not a reliable and trustworthy person of good moral character; or barred by law or Postal Service regulations from performing such duties.
Suppliers and their employees are required to maintain a neat, clean and professional appearance reflecting a positive image while engaged in contract operations.
Driver uniforms are not required under this contract. Suppliers who require their drivers to wear uniforms may include the cost only in the general overhead line.
1.5 Liability For Equipment Damage And Repairs
a. Either party's liability for loss of or damage to the equipment of the other party shall be governed by this subparagraph a as follows:
The Postal Service shall be liable to the supplier for loss of or damage, exclusive of fair wear and tear, to equipment of the supplier only when such loss or damage is caused by a negligent act or omission of the Postal Service, or of its employees, agents, suppliers, or subcontractors.
The supplier shall be liable to the Postal Service without regard to fault or negligence, for the loss of or damage, exclusive of fair wear and tear, to equipment furnished by the Postal Service while the equipment is in the custody and control of the supplier. For the purposes of this subparagraph a, equipment furnished by the Postal Service includes equipment owned or leased by the Postal Service, and equipment of other Postal Service mail transportation suppliers or of their subcontractors.
The Postal Service may deduct from any compensation otherwise due the supplier a sum or sums equal to the amount(s) for which the supplier is liable to the Postal Service under subparagraph a. (2).
b. Either party's liability for ordinary repairs to or maintenance of the equipment of the other party shall be governed by this subparagraph b as follows:
The supplier, and not the Postal Service, shall be liable for the cost of all repairs to or maintenance of equipment furnished by the supplier under this contract (including any equipment leased by the supplier from the Postal Service).
In the event that any equipment used by the supplier breaks down en route between postal facilities, the supplier shall secure any tires, tire repairs, or other ordinary repairs or maintenance needed to put the equipment back in service at the supplier’s cost. This obligation extends to all equipment used by the supplier under this contract, including equipment owned or leased by the Postal Service, and equipment of other Postal Service mail transportation suppliers or of their subcontractors.
If, pursuant to subparagraph b.(2) above, the supplier repairs equipment owned or leased by the Postal Service, or equipment of other Postal Service mail transportation suppliers or their subcontractors, the Postal Service shall, upon submission of a properly documented claim to the contracting officer, reimburse the supplier for the cost of such repairs. Such reimbursement shall include additional costs, if any, associated with delays in securing repairs, when such delays are beyond the control and without the fault or negligence of the supplier. The supplier must obtain the contracting officer's approval for repairs in excess of $500.00 to Postal Service equipment or equipment of other Postal Service mail transportation suppliers or of their subcontractors.
1.6 Screening/Identification Requirements
The Postal Service entrusts transportation contract employees to handle the mails and operate motor vehicles on behalf of the Postal Service. Postal Service policy requires that all such persons be screened to determine eligibility as drivers and to allow access to the mails and mail processing facilities. Suppliers and contract employees who transport mail matter or are allowed access to postal operational areas must be screened in accordance with Management Instruction PO-530-2004-2, Screening Highway Transportation Contract Employees, as amended, revised, or reissued from time to time.
The supplier shall conduct its operations under this contract in full compliance with (i) the United States Department of Transportation (DOT) Motor Carrier Safety Regulations, as set out in 49 C.F.R. Parts 390 - 397, (ii) all other applicable federal laws and regulations, and (iii) all applicable state laws and regulations. The supplier shall maintain its vehicles in mechanically sound condition and, upon receipt of written notice from the DOT or the contracting officer, shall take such action as is necessary to maintain its equipment in a safe condition and comply with such written notice. Upon written notice from the contracting officer, the supplier shall submit any or all of its equipment, as specified in such notice, for inspection by the Postal Service at a location designated in such notice. In addition, the supplier shall meet each and every one of the following requirements:
Drivers of motor vehicles must be at least 21 years of age, except that (i) if the vehicle driven is used exclusively under contract with the Postal Service, and (ii) the manufacturer's gross vehicle weight rating is 10,000 pounds or less, the driver must be at least 18 years of age.
Drivers must be properly licensed to operate the vehicles they will drive under this contract.
1.7.2. Lightweight Mail Trucks
A lightweight mail truck is a vehicle whose manufacturer's gross vehicle weight rating is 10,000 pounds or less. Suppliers and drivers of motor vehicles which are used to transport mail under a contract with the Postal Service who are exempt from compliance with DOT regulations are required to comply with the following minimum requirements:
(1) Qualifications of Drivers
Drivers must meet the minimum physical requirements imposed by state or local authorities to obtain permits to operate the vehicles they will drive under this contract.
(2) Driving of Motor Vehicles
(a) Driving Rules
Drivers must obey all laws, ordinances, and regulations of the jurisdiction in which they operate motor vehicles under this contract. They must not be permitted to drive when fatigue, illness, or other causes impair their ability or alertness, or when under the influence of drugs or intoxicating beverages. Any driver convicted of driving while under the influence of drugs or intoxicating beverages may be denied access to the mail as a driver for up to five years from the date of offense.
(b) Inspection of Equipment
Drivers shall satisfy themselves that the emergency equipment is in place and ready for use and the following parts and accessories are in good working order:
(i) Servicing
and parking brakes
(ii) Steering mechanism
(iii) Lighting
devices and reflectors
(iv) Tires
(v) Horn
(vi) Windshield
wipers
(vii) Rear vision mirrors
1.7.3. Safe Loading and Security of Equipment
Drivers responsible for loading or assisting in the loading of their vehicles must ensure that loads are properly distributed and secured and that doors, tailgates, and other equipment are fastened properly to permit safe operations.
Extreme caution, even to the extent of stopping operation if necessary, shall be exercised by drivers when hazardous road or weather conditions prevail.
Whenever a motor vehicle becomes disabled and cannot be removed from the traveled portion of the highway or the shoulder thereof, for any cause other than necessary traffic stops, the driver shall immediately activate the vehicular hazard warning signal flashers and continue the flashing until the driver places the warning devices as follows:
(1) During Daylight Hours
Three bi-directional reflective triangles, or three lighted fusees or three liquid burning flares placed in the center of the traffic lane 100 feet to the rear and 100 feet in front of the vehicle.
(2) When Lighted Lamps Are Required
Three bi-directional reflective triangles, or six lighted fusees or three liquid burning flares placed 100 feet in front, 100 feet to the rear, and along the side of the vehicle. Warning devices should be placed at least 100 feet but no more than 500 feet from the vehicle, but in all should allow ample warning to other drivers regardless of a curve, crest of a hill, or obstruction of view.
Vehicles shall be equipped with no less than the following ready for use:
(1) Fire Extinguisher
One four-pound CO2 or one four-pound dry chemical fire extinguisher.
(2) Spare Fuses
One of each kind of fuse (or equivalent) used on the vehicle.
(3) Tire Chains
One set for at least one drive wheel on each side of the vehicle. The contracting officer may exempt vehicles that are operated in areas where the weather does not require tire chains.
(4) Warning Devices
One of the following combinations:
(a) Three bi-directional emergency reflective triangles; or
(b) At least six fusees; or
(c) Three three liquid burning flares.
Flame producing devices shall not be carried on a motor vehicle using compressed gas as a motor fuel
1.7.7. Hours of Service for Drivers
Drivers will not be permitted or required to exceed the hours of “on duty” and “driving time” as specified by the Department of Transportation (DOT).
If this contract requires the operation of a motor vehicle, the supplier shall establish and maintain continuously in effect a policy or policies of liability insurance for all motor vehicles to be used under this contract providing, at a minimum, the following coverage:
a. Vehicles with a gross vehicle weight rating of under 10,000 pounds:
(1) Limit for bodily injuries to or death of one person: $100,000 and
(2) Limit for bodily injuries to or death of all persons in any one accident: $500,000 and
(3) Limit for loss or damage in any one accident to property of others (other than mail): $100,000.
In the alternative to (1), (2) and (3) above, a combined single limit (CSL) for bodily injury to, or death of persons and loss or damage of property per single accident: $600,000.
b. Vehicles with a gross vehicle weight rating of 10,000 pounds or more, require a minimum of $750,000 Combined Single Limit (CSL).
Coverage must meet all minimum insurance requirements imposed by federal, state and local law or regulation when such requirements exceed the minimum coverage required by the Postal Service as stated above.
The supplier shall furnish to the contracting officer, prior to commencement of service under this contract, and thereafter as the contracting officer may require, proof that the supplier has all required insurance, plus a copy of the applicable policy or policies.
1.9 Vehicle Inspection By Law Enforcement Officials
Heightened security concerns have resulted in increased occurrences of law enforcement inspections of cargo areas of mail hauling vehicles. To protect the security and sanctity of the mails, USPS Standard Operating Procedures (SOP) set forth national policy, procedures, and instructions for Highway Contract, Rail and Postal Vehicle Service (PVS) drivers operating USPS authorized mail hauling vehicles subject to inspections by law enforcement officials. For vehicles under the seal program, this requires law enforcement officials (local, state and federal) to cut postal seals to view the cargo area, subsequently imposing potential risks to the security and sanctity of the mail, particularly Registered Mail. Guidelines for these procedures are in Attachment D.
Heightened security concerns have resulted in increased occurrences of law enforcement inspections of cargo areas of mail hauling vehicles. To protect the security and sanctity of the mails, USPS Standard Operating Procedures (SOP) set forth national policy, procedures, and instructions for Highway Contract, Rail and Postal Vehicle Service (PVS) drivers operating USPS authorized mail hauling vehicles subject to inspections by law enforcement officials. For vehicles under the seal program, this requires law enforcement officials (local, state and federal) to cut postal seals to view the cargo area, subsequently imposing potential risks to the security and sanctity of the mail, particularly Registered Mail. Guidelines for these procedures are attached in Part 4.
Suppliers must ensure that each driver has a working, rechargeable cell phone with them on their routes that is continually turned on and available for use. The phone service for the phones should be that which provides the most comprehensive coverage for the area serviced by that company. However, minimally the phone service must have included, and activated, sufficient roaming function as to cover the entire range of service for the truck routes. Each phone should be equipped with sufficient peripheral devices to ensure its continual and safe operation, as appropriate for the jurisdictions in which it operates. The phone service must have voice mail enabled and accessible by the driver.
The cost of these required cell phones and any monthly service charges are considered supplier overhead and will not be reimbursed separately by the Postal Service over and above the annual contract cost.
a. The contract rate must include all elements of cost the supplier expects to incur in performing the service. The supplier must include the total anticipated costs (based on the total regular hours) for vacation time or other fringe benefits in the contract rate. Adjustments to include these costs in the second or subsequent years of the contract will not be allowed. Included in the cost comprising the total contract rate are those associated with the payment for vacation time and other fringe benefits as outlined in the applicable Department of Labor Wage Determination. The wage determinations for highway transportation service with the U.S. Postal Service are accessible through a link on the Global eProcure website
b. The supplier, depending on actual route operations, may be required to pay round trip compensation to drivers even though the contract requires one-way trips. In this, and all other cases, it is the SUPPLIER'S RESPONSIBILITY to verify DOL requirements and include the cost in the proposed price. Adjustments to include these costs at a later time will not be allowed.
c. The following requirements apply to vehicle(s) used on this contract whose Gross Vehicle Weight Rating (GVWR) is 10,001 pounds or greater:
In order to be awarded a contract, a supplier may not be rated unsatisfactory on the Department of Transportation (DOT) Unsatisfactory Safety Rating Report at that time when the contracting officer makes the determination of responsibility.
The supplier must provide a DOT number. If the supplier does not have a DOT number, a copy of the application form (FORM MCS 150, Motor Carrier Identification Report) submitted to DOT must be provided to the contracting officer. Immediately upon receipt, but not more than six months from the date of the application, the DOT number must be provided to the contracting officer.
Failure to provide the DOT number within six months of application may result in termination of the contract for default.
If a supplier receives a DOT unsatisfactory rating during the term of the contract, the unsatisfactory rating must be resolved within six months of that rating. Failure to resolve the unsatisfactory rating may result in termination of the contract for default.
During the term of the contract the Postal Service, its designated representative, or the DOT may randomly inspect vehicles used in the performance of service on this contract.
If the equipment fails to meet DOT safety requirements, the equipment must be placed "Out of Service" at the expense of the supplier and suitable replacement equipment must be provided.
Failure by the supplier to meet DOT safety standards on equipment may result in the termination of this contract for default.
During the term of the contract, the Postal Service may require the supplier to attend up to three safety seminars sponsored by the Postal Service and/or DOT, at no additional charge to the Postal Service.
2.1. Payment (Highway) (Clause B-74) (May 2005)(Modified)
General. This is a fixed price contract for highway transportation service to be provided according to the Statement of Work and Specifications indicated in the solicitation, schedule, and special notes. The basis for payment (e.g., annual rate or rate per mile) established for this contract is stated in the solicitation. No adjustments will be made in contract price except as provided below or under other clauses of this contract.
Annual rate payments for services rendered under this contract will be made as follows:
The St. Louis Accounting Service Center (ASC) will pay the supplier automatically at the conclusion of each Transportation Pay Cycle for which payment is due.
Since the fixed price should be expressed as an annual rate, payment will be computed by dividing the annual rate stated in this contract by 365 (or 366 in any portion of the contract term beginning on July 1 of the calendar year and ending on June 30 of the leap year), and multiplying that result by the number of days in that Transportation Pay Cycle. If this contract ends before the end of a Transportation Pay Cycle payment will be based on the number of days within that period during which the contract was in force.
The contracting officer may authorize (1) adjustments in compensation pursuant to the clause Adjustments to Compensation clause, or (2) changes in service requirements or extra trips pursuant to the Changes clause. The Postal Service will file the appropriate documentation with the St. Louis ASC and the supplier need not submit a separate invoice.
The contracting officer may require the supplier to provide additional evidence of performance in a form and content satisfactory to the Postal Service prior to authorizing any payment.
The supplier must invoice for all payments not covered by paragraphs a and b above.
Hourly payments for driver/s waiting time over and above that which is called for in the contract. (Supplier may be required to submit payroll records in support of such claims).
Hourly rate payments for operations conducted to stop points other than on the regular schedule.
Claims for damage to trailers must be filed and documented in accordance with Management Instruction PO-530-2001-2, Processing Trailer Damage Claims, as amended, revised, or reissued.
Requests for payment for detours must be filed as provided under the detours provision of the Changes clause.
All other requests for payments must be submitted in accordance with the Payment – Fixed Price clause.
Deductions may be made from payments otherwise due the supplier under this contract or any other contracts held by the supplier for any amounts for which the supplier is liable as damages or otherwise.
2.1.2. Other Than Annual Rate Payments
Payments other than annual rate payments (trip rate, round-trip rate, rate per mile) will be made as follows:
Payment will be made by the Administrative Official’s issuance of a Form 5429 “Certification of Exceptional Contract Service Performed”, directly to the St. Louis Accounting Service Center (ASC). The contracting officer will generally rely on verification data provided through the Administrative Official. Compensation will be based upon the per round trip rate, multiplied by the actual number of trips performed.
The contracting officer may require the supplier to provide additional evidence of performance in a form and content satisfactory to the Postal Service prior to authorizing any payment.
Payment for items not included in the above must be accompanied by properly completed invoices. Such invoices are subject to verification or audit by the Postal Service. The following is a listing of services that will be paid hereunder:
Hourly payments for driver/s waiting time over and above that which is called for in the contract. (Supplier may be required to submit payroll records in support of such claims).
Hourly rate payments for operations conducted to stop points other than on the regular schedule.
The contracting officer may authorize (i) adjustments in compensation pursuant to the Adjustments to Compensation clause, or (ii) changes in service requirements or extra trips pursuant to the Changes clause. The Postal Service will file the appropriate documentation with the St. Louis ASC for such adjustments or changes and the supplier need not separately invoice for them.
The supplier must invoice for all payments to include:
Claims for damage to trailers must be filed and documented in accordance with Management Instruction PO-530-2001-2, Processing Trailer Damage Claims, as amended, revised, or reissued.
Requests for payment for detours must be filed as provided under the detours provision of the Changes clause.
Deductions may be made from payments otherwise due the supplier under this contract or any other contracts held by the supplier, for any amounts for which the supplier is liable as damages or otherwise.
Note: Some contracts may be paid under the terms and conditions described in Section 2.1.3 of this document.
2.1.3 Payment -- Fixed Price (Clause 2-26) (May 2005) (Modified)
The Postal Service will pay the supplier, upon the submission of proper invoices or vouchers, the prices stipulated in this contract for work or supplies delivered and accepted or services rendered and accepted, less any deductions provided for by the contract. Unless the contract otherwise specifies, payment will be made on partial deliveries accepted by the Postal Service if:
The amount due on the deliveries warrants it; or
The supplier requests it and the amount due on the deliveries is at least $1,000 or 50 percent of the total contract price, whichever is less.
Payment due for a Transportation Pay Cycle will be made by the St. Louis Accounting Service Center within 30 days following the end of that pay cycle, or, if a separate invoice is required, within 30 days after the submission of a proper invoice. Interest will be paid for late payment commencing on the 31st day.
2.1.5 Interest (Clause B-22) (May 2005)
The Postal Service will pay interest on late payments and unearned prompt payment discounts in accordance with the Prompt Payment Act, 31 U.S.C. 3901 et seq., as amended by the Prompt Payment Act Amendments of 1988, P.L. 100-496.
(1) Payment will be made for items accepted by the Postal Service that have been delivered to the delivery destinations set forth in this contract. The Postal Service will make payment in accordance with the Prompt Payment Act (31 U.S.C. 3903) and 5 CFR 1315. All payments under this contract will be made by the Postal Service by electronic funds transfer. Suppliers who are unable to receive payment through EFT, due to causes within its control, may be terminated for default.
(2) In conjunction with any discount offered for early payment, time will be computed from the date of the invoice. For purposes of computing the discount earned, payment will be considered to have been made on the date which appears on the payment check or the date on which an electronic funds transfer was made.
2.2.1 Definitions (Clause B-1) (May 2005) (Modified)
As used in this document, the following terms have the following meanings:
Administrative Official: Any Postal Service official designated by a contracting officer to supervise and administer a contract awarded under this solicitation.
Contracting Officer: The person executing this contract on behalf of the Postal Service, and any other officer or employee who is a properly designated contracting officer; the term includes, except as otherwise provided in the contract, the authorized representative of a contracting officer acting within the limits of the authority conferred upon that person.
Contracting Officer's Representative: A contracting officer's representative who acts within the limits of authority delegated by the contracting officer.
Postal Service: The United States Postal Service.
Route: The route or routes as described in this contract, as the same may be extended, curtailed, or otherwise altered in accordance with the terms of this contract.
Supplier: The person or persons, partnership, or corporation that will be providing the service advertised in this solicitation.
USPS: United States Postal Service.
2.2.2 Appeals to Next Higher Contracting Authority
The supplier may appeal through the contracting officer to the next higher contracting authority: (1) If no settlement is reached, the financial amount resulting from a termination for convenience by the contracting officer under Section 2.3.3b; or (2) the decision of non-renewal. Such an appeal shall be filed in writing by the supplier within five (5) business days after receipt of "Notice of Termination or Non-renewal." The supplier shall include in the appeal the following, as applicable:
A copy of the contracting officer's decision for a termination for convenience, or copy of the contracting officer’s decision letter not to renew the contract.
A copy of other related correspondence.
A statement of the action or failure to act, from which the appeal is taken.
A statement of the reasons why the supplier believes the action taken or failure to act is erroneous.
The contracting officer's decision to not renew the contract shall be stayed until decision on the appeal is rendered by the next higher level of contracting authority.
Neither the decision not to renew the contract, nor the decision on appeal by the next higher level of contracting authority is a dispute under the Claims and Disputes clause. This clause does not apply to contracts terminated under Clause B-67.
A subcontract for the transportation of mail is any agreement, other than an employer employee agreement, between a party that has contracted with the Postal Service to transport mail and a third party, in which the latter agrees to provide all or part of the contract service. An employer-employee agreement is one under which the employee is subject to the continuing authority of the mail supplier to supervise and direct the manner of work performance of the employee. Such an employer-employee agreement is also characterized by, expressly or implied, the employer's responsibility to pay compensation directly to the employee, to withhold taxes and amounts for social security benefits from the employees' compensation for the work performed under the agreement. An agreement between a supplier and a third party for the latter to provide labor for service other than the transportation of mail is not a subcontract within the meaning of this section. When an owner-operator, who because of illness or temporary equipment failure, is required to obtain labor from another in order to continue performance of the service as required by the contract, the resultant transaction is not a subcontract within the meaning of this section.
A supplier may, without approval of the contracting officer, subcontract the whole or part of the contract with one or more owner-operators who provide and drive their own vehicles, provided that the service is for irregular mail movements such as plant loads. All other subcontracts, for either the whole route or any part of it, must be approved by the contracting officer.
Subcontracting is an exceptional action and may be approved only when the supplier offers good and sufficient reasons. The supplier must request permission to subcontract in writing, giving the purchase team its reasons for subcontracting, the desired effective date, and the identity and qualifications of the proposed subcontractor.
Approval by the Postal Service and execution by a supplier of a subcontract does not release the supplier from its contractual obligations, nor from liability for damages.
Whenever the contracting officer determines that a supplier has breached the contract by subcontracting the whole or part of the contract contrary to the requirements of this manual, the contracting officer may terminate the contract for default.
Subcontractors must meet the same responsibility and qualification requirements as the prime supplier.
If the whole contract is subcontracted, the subcontract must be for the full remainder of the contract term. The subcontractor's initial rate of pay will be the same as the supplier's, unless there is a change in operations costs resulting from a service change or from the enactment of a statute or ordinance or the adoption of lawful regulations by any federal, state, or local agency.
When a subcontractor is terminated, the prime supplier may be required to take charge of the route. A subcontract may be terminated at the subcontractor's request only with the prior approval of the contracting officer. Such approval may be given only for good cause, and must be in writing. Subcontracts are automatically terminated by death of the subcontractor or abandonment of the service by the subcontractor.
When a subcontractor fails to meet the terms of a contract, the contracting officer must notify the prime supplier of the subcontractor irregularities. The contracting officer may (a) require removal of the subcontractor for failure to perform, and require the prime supplier to resume route operations, or (b) terminate the prime contract for default.
2.2.4 Clause 1-7 Organizational Conflicts of Interest (May 2005) (Modified)
Warranty Against Existing Conflicts of Interest. The supplier warrants and represents that, to the best of its knowledge and belief, it does not presently have organizational conflicts of interest that would diminish its capacity to provide impartial, technically sound, objective research assistance or advice, or would result in a biased work product, or might result in an unfair competitive advantage, except for advantages flowing from the normal benefits of performing this agreement.
Restrictions on Contracting. The supplier agrees that during the term of this agreement, any extensions thereto, and for a period of 2 years thereafter, neither the supplier nor its affiliates will perform any of the following:
(1) Compete for any Postal Service contract for production of any product for which the supplier prepared any work statement or specifications or conducted any studies or performed any task under this agreement.
(2) Contract (as the provider of a component or the provider of research or consulting services) with any offeror competing for any Postal Service contract for production of any product for which the supplier prepared any work statements or specifications or conducted any studies or performed any task under this agreement.
(3) Contract (as the provider of a component or the provider of research or consulting services) with the offeror which wins award of a Postal Service contract for production of any product for which the supplier prepared any work statement or specifications or conducted any studies or performed any task under this agreement.
c. Possible Future Conflicts of Interest. The supplier agrees that, if after award of this agreement, it discovers any organizational conflict of interest that would diminish its capacity to provide impartial, technically sound, objective research assistance or advice, or would result in a biased work product, or might result in an unfair competitive advantage, except advantages flowing from the normal benefits of performing this agreement, the supplier will make an immediate and full disclosure in writing to the contracting officer, including a description of the action the supplier has taken or proposes to take to avoid, eliminate, or neutralize this conflict of interest.
d. Nondisclosure of Confidential Material
(1) The supplier recognizes that, in performing this agreement, it may receive confidential information. To the extent that and for as long as the information is confidential, the supplier agrees to take the steps necessary to prevent its disclosure to any third party without the prior written consent of the contracting officer.
(2) The supplier agrees to indoctrinate its personnel who will have access to confidential information as to the confidential nature of the information, and the relationship under which the supplier has possession of this information.
(3) The supplier agrees to limit access to the confidential information obtained, generated, or derived, and to limit participation in the performance of orders under this agreement to those employees whose services are necessary for performing them.
Non-Disclosure of Address Information
General: This contract requires the supplier to have access to address information (i.e., addresses and return addresses) that appears on pieces of mail. To ensure the confidentiality of this address information, except as permitted by this clause, no supplier or subcontractor, and no employee or former employee of any supplier or subcontractor may, at any time, during or after the completion of this contract, disclose to any third party any address information obtained in the performance of this contract. This contract does not give the supplier proprietary interest in address information, and the supplier’s right to have, use, and disclose address information is restricted by the terms of this clause.
Restriction of Access. The supplier agrees to control and restrict access to address information to persons who need it to perform work under this contract, and to prohibit the reproduction of this information.
Confidentiality and Non-Disclosure Agreement. The supplier must require an employee (including any employee of a subcontractor) to hold in confidence any and all address information (i.e., addresses and return addresses) disclosed by the Postal Service or otherwise obtained or developed in the course of performance under this contract.
Legal Demands for Information. If a legal demand is made for address information (such as by subpoena), the supplier will immediately notify the contracting officer and the nearest office of the postal inspectors. After notification, the Postal Service will then determine whether and to what extent, to resist the legal demand. Should the Postal Service give in to or unsuccessfully resist a legal demand, the supplier may, with the written permission of the contracting officer, release that address information specifically requested by the legal demand.
Indemnification. The supplier will indemnify the Postal Service, its employees and agents, against all liability (including costs and fees) for damages arising out of the intentional or negligent disclosure of address information other than as permitted by this clause.
Subcontracts. The supplier must include this clause, modified as necessary, in any subcontract.
f. Postal Service Remedy. If the supplier breaches or violates any of the warranties, covenants, restrictions, disclosures or nondisclosures set forth under this clause, the Postal Service may terminate this agreement, in addition to any other remedy it may have for damages or injunctive relief.
2.2.5 Clause 1-11 Prohibition Against Contracting With Former Postal Service Officers or PCES Executives (May 2005)
During the performance of this contract, former Postal officers or Postal Career Executive Service (PCES) executives are prohibited from employment by the supplier as key personnel, experts or consultants, if such individuals, within 5 years after their retirement from the Postal Service, would be performing substantially the same duties as they performed during their career with the Postal Service.
2.2.6 Clause 1-12 Use of Former Postal Service Employees
During the term of this contract, the supplier must identify any former Postal Service employees it proposes to be engaged, directly or indirectly, in contract performance. Such individuals may not commence performance without the contracting officer's prior approval. If the contracting officer does not provide such approval, the supplier must replace the proposed individual former employee with another individual equally qualified to provide the services called for in the contract.
Trailer Services Agreement Clause: The Postal Service and HCR supplier agree that in those instances where extra trailers are required to support postal operations, the Postal Service’s preferred trailer provider will be given the first opportunity to provide the required equipment. If the preferred trailer provider is unable to provide the required equipment in a timely manner, the HCR supplier may secure the needed equipment at the most reasonable rate available. In those instances where the HCR supplier fails to request equipment from the preferred trailer provider, the Postal Service will be liable for reimbursement up to the price that the preferred trailer provider would charge for comparable equipment.
Trailer Markings/Condition: Any and all equipment shall be presented for inspection at the location and time indicated by the contracting officer or authorized representative. Equipment used on the contract must at all times be maintained in a condition that reflects favorably on the Postal Service and is acceptable to the contracting officer or authorized representative for the full term of the contract and any subsequent renewals that might be negotiated. Other than the markings specified in Attachment B (“Vehicle and Load Restraint Requirements”), suppliers are prohibited from adding any graphic material to any trailer utilized in the performance of this Postal Service contract without the express approval of the contracting officer. The supplier shall at all times maintain its transportation equipment used under this contract so as to present a credible appearance and comply with applicable Postal Service regulations.
Barcoding: As a part of the Postal Service’s Surface Visibility Program, suppliers shall allow the necessary space for the placement of barcodes on the suppliers' trailers. Specifications for barcode size, placement, and method of attachment are at the discretion of the contracting officer. Attachment B (“Vehicle and Load Restraint Requirements”), Specification F contains specifications for barcode placement.
Parking: Parking for contract vehicles and trailers at postal facilities may or may not be allowed at the discretion of each facility manager. The supplier is responsible for all costs associated with parking. The supplier must have adequate contingency plans in place should parking at postal facilities be terminated or limited. In no event shall the Postal Service be held liable for, or incur any additional cost associated with, such parking.
2.2.8 Fuel Cost Management Clause
Fuel Management Program: The Postal Service has implemented a program under which postal highway contract route (HCR) suppliers will obtain fuel at certain designated wholesale fuel servicing facilities and retail fuel servicing facilities. This program is being implemented in phases in different areas of the country. If, during the term of this contract, the program is implemented in a geographic area in which the contract is operated, the supplier agrees to participate in the program.
The guidelines for the Fuel Management Program dated March 14, 2005, or as revised, are incorporated as a part of this contract.
Fuel Taxes: The fuel management program is designed to provide opportunity for suppliers to purchase and/or be provided fuel through the use of a fuel transaction card. The program has two elements:
(1) a retail transaction payment card, and
(2) a bulk fuel transaction recording card.
In both the retail and bulk fuel purchasing environments there are certain fuel taxes (Federal and state) that must be paid when fuel is purchased. The Postal Service currently pays these taxes (AS A PASS THROUGH COST) as part of the total price of a gallon of fuel as shown on line six of the contract cost statement (PS Form 7463/7468). The Postal Service agrees to continue to pay these taxes (DIRECTLY TO THE FUEL PROVIDER) to the extent they (THE FUEL TAXES ON LINE 6 OF PS FORM 7463/7468) continue to be an obligation for the HCR supplier.
Road Use Taxes: The Postal Service and the supplier agree that road use taxes (beyond those paid as an incremental component of the total price of a gallon of fuel and shown in the price per gallon shown on line six of PS Form 7463/7468) are not covered by the clause. Road use taxes are today, and will continue to be, paid directly by the HCR supplier. Our current process has a designated provision in the cost statement to display appropriate costs of road use taxes (Line 9). In those instances where a supplier chooses to manage his road use taxes by placing them on line 9 of PS form 7463/7468, reimbursement is included in the normal payment process based on all lines of the negotiated cost statement.
2.2.9 DPS/Reclassification/PMPC/DPP/FSS
This clause applies to box delivery contracts only. If the service is curtailed or terminated due to implementation of Delivery Point Sequence (DPS), Reclassification, Delivery Point Packaging (DPP), Flat Sequencing System (FSS), or Priority Mail Processing Centers (PMPC) the supplier agrees to accept as liquidated damages a sum equal to one-twelfth of the dollar amount of the contract rate reduction.
2.2.10 Supplier Tax Identification Number or Social Security Number
Internal Revenue Service (IRS) mandates that the suppliers name or business name correctly matches the Employer Identification Number (EIN) or Social Security Number (SSN), provided to the contracting officer. IRS considers a name and EIN/SSN combination as incorrect if either the name or EIN/SSN combination shown on your Highway Contract does not match the name and EIN/SSN combination in their files or Social Security Administration (SSA) files. IRS rules require the USPS to withhold 29 percent of payments (backup withholding) made to a supplier if corrective action is not taken once you have been notified of an error. In addition to the backup withholding, the supplier may be subject to additional penalties issued by IRS. Therefore, all suppliers are required to provide the contracting officer with a copy of their EIN as issued by IRS or a copy of their SSN as issued by SSA.
The Postal Service will be implementing a web-based supplier registration system. This system will replace the current National Bidders List. When the system is available, suppliers will be required to complete the supplier registration process.
2.2.12 Loss, Theft, or Unauthorized Use of Designated Card Supplier Fuel Transaction Card
The supplier will be liable for the unauthorized use of the fuel transaction card, except that it shall not be liable for unauthorized use that occurs after the designated card supplier (DCS) has been properly notified. In order to protect the supplier from unauthorized transactions, it is suggested that the supplier review the transaction details on the designated card supplier’s website. The HCR supplier must report the unauthorized use of the fuel transaction card (“card(s)”) and/or the loss or theft immediately by telephoning the designated card provider at its toll free number. This notification must also be received by the Postal Service and/or the designated card supplier in writing. Do not use the lost or stolen card(s) after notifying the designated card supplier. Should an unauthorized use of the card(s) occur, the Postal Service, at our sole discretion, may choose to immediately cancel the card(s). The supplier agrees to assist the Postal Service and/or designated card provider in determining the facts, circumstances and other pertinent information related to any loss, theft, or possible unauthorized use of the card(s) and to comply with such procedures as the Postal Service and/or designated fuel supplier may require in connection with an investigation. Neither the Postal Service nor the designated card provider is responsible for controlling an authorized user’s use of a card. The supplier is responsible for all charges made to the card(s) issued by the designated card supplier.
2.3.1 Clause 4-1 General Terms and Conditions (May 2005) (Modified)
a. Inspection and Acceptance. The supplier will only tender for acceptance those items that conform to the requirements of this contract. The Postal Service reserves the right to inspect or test supplies or services that have been tendered for acceptance. The Postal Service may require repair or replacement of nonconforming supplies or re-performance of nonconforming services at no increase in contract price. The Postal Service must exercise its post acceptance rights (1) within a reasonable period of time after the defect was discovered or should have been discovered and (2) before any substantial change occurs in the condition of the items, unless the change is due to the defect in the item.
b. Assignment. If this contract provides for payments aggregating $10,000 or more, claims for monies due or to become due from the Postal Service under it may be assigned to a bank, trust company, or other financing institution, including any federal lending agency, and may thereafter be further assigned and reassigned to any such institution. Any assignment or reassignment must cover all amounts payable and must not be made to more than one party, except that assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in financing this contract. No assignment or reassignment will be recognized as valid and binding upon the Postal Service unless a written notice of the assignment or reassignment, together with a true copy of the instrument of assignment, is filed with:
(1) The contracting officer;
(2) The surety or sureties upon any bond; and
(3) The office, if any, designated to make payment, and the contracting officer has acknowledged the assignment in writing.
(4) Assignment of this contract or any interest in this contract other than in accordance with the provisions of this clause will be grounds for termination of the contract for default at the option of the Postal Service.
c. Changes (see Section 2.3.2, Clause B-67)
d. Reserved
e. Reserved
f. Reserved
g. Invoices – See Section 2.1 (Payments)
h. Patent Indemnity. The supplier will indemnify the Postal Service and its officers, employees and agents against liability, including costs for actual or alleged direct or contributory infringement of, or inducement to infringe, any United States or foreign patent, trademark, or copyright, arising out of the performance of this contract, provided the supplier is reasonably notified of such claims and proceedings.
i. Payment – See Sections 2.1 (Payments)
j. Risk of Loss. Unless the contract specifically provides otherwise, risk of loss or damage to the supplies provided under this contract will remain with the supplier until, and will pass to the Postal Service upon:
(1) Delivery of the supplies to a carrier, if transportation is f.o.b. origin, or;
(2) Delivery of the supplies to the Postal Service at the destination specified in the contract, if transportation is f.o.b. destination.
k. Taxes. The contract price includes all applicable federal, state, and local taxes and duties.
l. Termination for the Postal Service's Convenience. See Section 2.3.3b.2.
m. Termination for Default. The Postal Service may terminate this contract, or any part hereof, for default by the supplier, or if the supplier fails to provide the Postal Service, upon request, with adequate assurances of future performance. In the event of termination for default, the Postal Service will not be liable to the supplier for any amount for supplies or services not accepted, and the supplier will be liable to the Postal Service for any and all rights and remedies provided by law. The debarment, suspension, or ineligibility of the supplier, its partners, officers, or principal owners under the Postal Service's procedures (see United States Postal Service Interim Internal Purchasing Guidelines (IIPG) May 19, 2005 (Section 3.7) may constitute an act of default under this contract, and such act will not be subject to notice and cure pursuant to any termination of default provision of this contract. If it is determined that the Postal Service improperly terminated this contract for default, such termination will be deemed a termination for convenience.
n. Title. Unless specified elsewhere in this contract, title to items furnished under this contract will pass to the Postal Service upon acceptance, regardless of when or where the Postal Service takes physical possession.
o. Warranty. The supplier warrants and implies that the items delivered under this contract are merchantable and fit for the use for the particular purpose described in this contract.
p. Limitation of Liability. Except as otherwise provided by an express or implied warranty, the supplier will not be liable to the Postal Service for consequential damages resulting from any defect or deficiencies in accepted items.
q. Other Compliance Requirements. The supplier will comply with all applicable Federal, State, and local laws, executive orders, rules and regulations applicable to its performance under this contract. If there are any changes to a federal, state or local law, statute or regulation, executive order or other rule applicable to contract performance during the term of this contract that result in additional contract costs, these costs will be borne by the supplier.
r. Order of Precedence. Any inconsistencies in the provisions of a solicitation, a contract awarded under a solicitation, or a contract awarded without the issuance of a written solicitation will be resolved by giving precedence in the following order:
(1) The Statement of Work and Specifications
(2) The solicitation provisions and instructions
(3) Special clauses and general clauses
(4) Provisions contained in attachments or incorporated by reference.
s. Incorporation by Reference. Wherever in this solicitation or contract a standard provision or clause is incorporated by reference, the incorporated term is identified by its title, the provision or clause number assigned to it in the Postal Service's Interim Internal Purchasing Guidelines (IIPG) May 19, 2005, and its date. The text of incorporated terms may be found in Appendix A (for provisions), or Appendix B (for clauses) of the IIPG, accessible at www.usps.com/business. The following clauses are incorporated in this contract by reference:
(1) B-9, Claims and Disputes (May 2005)
(2) B-15, Notice of Delay (May 2005)
(3) B-16, Suspensions and Delays (May 2005)
(4) B-19, Excusable Delays (May 2005)
(5) B-30, Permits and Responsibilities (May 2005)
(6) B-64, Accountability of the Supplier (Highway) (May 2005)
(7) B-65, Adjustments to Compensation (May 2005) (Modified)
Contract compensation may be adjusted by mutual agreement of the supplier and the contracting officer.
a. In connection with an adjustment, the contracting officer may examine such records and books of account maintained by the supplier as the contracting officer may deem necessary.
b. Adjustments in compensation pursuant to this clause shall be memorialized by formal amendment to the contract.
c. Should the Postal Service introduce procedures which affect the supplier's obligations with respect to the costs of fuel or taxes, the contract price will be adjusted with respect to those costs, pro rata, without entitlement to other compensation for those adjustments, subject to the resolution of any dispute about the adjustments under the Claims and Disputes clause.
Any adjustments shall be made in accordance with the United States Postal Service Management Instruction governing adjustments in effect at the time of contract award.
(8) B-69, Events of Default (May 2005)
t. Shipping. The supplier must deliver goods that meet the prescribed physical limitations of the current USPS Domestic Mail Manual either by its own personnel/equipment or by use of the United States Postal Service, unless the contracting officer grants a waiver of this requirement. The supplier is responsible for ensuring that the packing and packaging are sufficient to protect the goods and ensure usability upon receipt.
2.3.2 Changes (Transportation) (Clause B-67) (May 2005) (Modified)
a. Service Changes
(1) Minor Service Changes. The contracting officer may, at any time, without consulting the supplier, issue orders directing an extension, curtailment, change in line of travel, revisions of route, or increase in frequency of service or number of trips and fixing an adjustment in the supplier’s compensation which increases the supplier’s rate of pay by no more than $2,500. If the supplier believes the increased cost of providing the service required by the order exceeds the increase made in compensation, it may request an adjustment of compensation for the service change.
(2) Other Service Changes. Service changes other than minor service changes, including increases or decreases in compensation, may be made by mutual agreement of the contracting officer and the supplier. Such changes shall be memorialized by formal amendment to the contract.
b. Extra Trips
An extra trip is an additional trip of service operated on an infrequent time basis over the same route or part as normally provided under the terms of the contract. Extra trips shall be negotiated in advance of the performance when the contracting officer deems it appropriate. However, the contracting officer may order the supplier to perform such extra service at pro rata pay. If no rate of pay for extra trips has been negotiated in advance, the supplier shall nonetheless perform such extra trips as are ordered by the contracting officer and may, on an after-the-fact basis, obtain a lump sum reimbursement for the difference between costs incurred as a direct result of performing such extra trips and pro-rata payment for such trips, provided that such claims costs are adequately supported by documentary evidence furnished to the contracting officer. Claims for compensation above pro rata pay for extra trips must be filed in writing with the contracting officer, accompanied by full supporting documentation of costs, no later than 90 days after the performance of such extra trips. When the contracting officer has ordered several extra trips under a single order, the 90-day period begins on the date of performance of the last trip performed under such order. Failure to agree to such compensation above pro rata pay shall be resolved under the Claims and Disputes clause.
c. Detours
When the regular line of travel of a contract route is impassable and the supplier performs full service over another and longer line of travel, the supplier’s compensation shall be equitably increased for such service, provided, however, that such increase:
(1) Comprises at least $1.00 (one dollar) in any Transportation Pay Cycle, and
(2) Does not exceed an amount determined by multiplying the additional miles actually traveled by the rate per mile that applies to the trip on which the detour was made, determined by dividing the regular compensation for the trip by the regular number of miles.
Note: No payments will be made with respect to any detour not reported to the contracting officer or the contracting officer’s designee within 90 days after the detoured service is performed. Supplier will use reasonable efforts to minimize additional costs or delays resulting from detours.
d. The supplier shall proceed diligently in accordance with service changes and extra trips ordered unilaterally by the contracting officer. Disputes concerning such orders shall be resolved pursuant to the Claims and Disputes clause.
e. Liquidated Damages:
For Transportation Contracts, see Section 2.3.3.b.
For Box Delivery and Combination Routes:
(1) If this contract is terminated for convenience due to the implementation of Delivery Point Sequence, Reclassification, Priority Mail Processing Centers, or Integrated Mail Handling Systems, without fault on the part of the supplier, liquidated damages for the termination will be established as one-twelfth of the annual rate. In the event of a partial termination for convenience or other service curtailment for these causes, liquidated damages shall be established in the same proportion as the dollar amount of the contract rate reduction bears to the amount established above.
(2) In all other cases, if this contract is terminated for convenience without fault on the part of the supplier, liquidated damages for the termination will be established as:
(i) One third of the annual rate (if during the first two years), or
(ii) One-sixth of the annual rate (if during the third year), or
(iii) One-twelfth of the annual rate (if during the fourth year).
In the event of a partial termination for convenience or other service curtailment liquidated damages shall be established in the same proportion as the dollar amount of the contract rate reduction bears to (i), (ii), or (ii) above (as applicable).
2.3.3 Termination of Contracts
The Postal Service reserves the right to terminate this contract, or any part hereof, for its sole convenience. In the event of such termination, the supplier must immediately stop all work and must immediately cause any and all of its suppliers and subcontractors to cease work. Subject to the terms of this contract, the supplier will be paid a percentage of the work performed prior to the notice of termination. The supplier will not be paid for any work performed or costs incurred which reasonably could have been avoided.
2.3.3a For Box Delivery and Combination Routes Only
The contracting officer may terminate this contract or the right to perform under it, in whole or in part. Liquidated damages will apply to box delivery and combination routes. The supplier shall be paid as liquidated damages the sum provided for in Section 2.3.2.e. The liquidated damages permitted by this contract, if any, constitute the supplier's full remedy for a whole or partial termination under this clause. For any other type of surface transportation contract, the Postal Service shall not be liable for any damages for a termination effected under this clause.
2.3.3b For Transportation Routes (i.e., Not Box Delivery or Combination Routes)
Based on negotiations prior to contract award or renewal, the contracting officer or the supplier may terminate this contract or the right to perform under it, in whole or in part under 2.3.3c or 2.3.3d.
2.3.3c Termination with Notice
The contracting officer or the supplier, on 60 days written notice, may terminate this contract or the right to perform under it, in whole or in part, without cost to either party.
2.3.3d Termination
for the Postal Service’s Convenience
The
Postal Service reserves the right to terminate a regular contract, or
any part thereof, for its sole convenience. In the event of such
termination, the supplier must immediately stop all work and must
immediately cause any and all of its suppliers and subcontractors to
cease work. After termination, the
supplier may submit to the contracting officer a termination claim in
the form and with the certification prescribed by the contracting
officer. The claim must be submitted promptly, but in no event more
than 180 days after the effective date of termination, unless an
extension in writing is granted by the contracting officer. However,
if the contracting officer determines that the facts justify such
action, any termination claim may be received and acted upon at any
time after the 180-day period. Upon failure of the supplier to submit
a termination claim within the time allowed, the contracting officer
may determine, on the basis of information available, the amount, if
any, due the supplier by reason of the termination and will pay that
amount. The
supplier will not be required to comply with the cost accounting
standards and principles for this purpose. The supplier will not be
paid for any work performed or costs incurred which reasonably could
have been avoided. The supplier and the
contracting officer shall agree upon the whole or any part of the
amount to be paid (including an allowance for the fee) to the
supplier by reason of the termination. The supplier has the right of
review through the contracting officer to the next higher level
contracting authority and/or under the Claims and Disputes clause
of the determination made by the contracting officer pertaining to
the financial amount ONLY except that if the supplier fails to
request an extension of time, the supplier will have no right of
review.
The Postal Service may, under the terms and
conditions it may prescribe, make partial payments against costs
incurred by the supplier in connection with the terminated portion of
the contract whenever, in the opinion of the contracting officer, the
aggregate of the partial payments is within the amount to which the
supplier will be entitled. If the total of these payments exceeds the
amount finally determined to be due under this clause, the excess
must be repaid to the Postal Service upon demand, together with
interest calculated in accordance with the Interest clause of
this contract, for the period from the date the excess payment is
received by the supplier to the date on which the excess is repaid to
the Postal Service. However, no interest will be charged with respect
to an excess payment attributable to a reduction in the supplier's
claim by reason of retention or other disposition of termination
inventory, until 10 days after the date of the retention or
disposition.
Section e of Clause B-67 does not apply to transportation routes. It applies to Box Delivery and Combination Routes only.
2.3.3e Clause B-72 Termination for Convenience - Emergency Contracts (May 2005)
Emergency contracts may be terminated by the Postal Service upon notice of not less than 24 hours, or by the supplier upon written notice of not less than 15 days; without the allowance of any damages or extra pay in lieu of damages.
2.3.4 Clause 4-2 Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders (May 2005)
a. Incorporation by Reference
(1) Wherever in this solicitation or contract a standard provision or clause is incorporated by reference, the incorporated term is identified by its title, the provision or clause number assigned to it in the Postal Service's Purchasing Manual, and its date. The text of incorporated terms may be found in Appendix A (for provisions), or Appendix B (for clauses) of the Purchasing Manual, accessible at www.usps.com/business. The following clauses are incorporated in this contract by reference:
(1) Clause 1-5, Gratuities or Gifts (May 2005)
(2) Clause 9-1, Convict Labor (May 2005)
(3) Clause 9-5, Contract Work Hours and Safety Standards Act - Safety Standards (May 2005)
(4) Clause B-25, Advertising of Contract Awards (May 2005)
(5) Clause B-68. Changes in Corporate Ownership or Officers (May 2005)
(6) Clause B-70, Release of Supplier (May 2005)
(7) Clause B-73, Trailer Damage (May 2005)
(8) Clause B-77, Protection of the Mail (May 2005)
(9) Clause B-78, Renewal Clause (May 2005)
(10) Clause B-79, Forfeiture of Compensation (May 2005)
(11) Clause B-80, Laws and Regulations Applicable (May 2005)
(12) Clause B-81, Information or Access by Third Parties (May 2005)
(13) Clause B-82, Access by Officials (May 2005)
(2) If checked, the following additional clauses are also incorporated in this contract by reference (contracting officer will check as appropriate):
(1) Clause 1-1, Privacy Protection (May 2005) _X__
(2) Clause 1-6, Contingent Fees (May 2005) _X__
(3) Clause 1-9, Preference for Domestic Supplies (May 2005) ___
(4) Clause 1-10, Preference for Domestic Construction Materials (May 2005) ___
(5) Clause 3-1, Small, Minority, and Woman-owned Business Subcontracting Requirements (May 2005) _X__(see Subcontract Policy attachment)
(6) Clause 3-2, Participation of Small, Minority, and Woman-owned Businesses (May 2005) _X__ (see Subcontract Policy attachment)
(7) Clause 9-2, Contract Work Hours and Safety Standards Act - Overtime Compensation (May 2005) ___
(8) Clause 9-3, Davis-Bacon Act (May 2005) ___
(9) Clause 9-6, Walsh-Healey Public Contracts Act (May 2005) __
(10) Clause 9-7, Equal Opportunity (May 2005) _X__
(11) Clause 9-10, Service Contract Act (May 2005) _X__
(12) Clause 9-11, Service Contract Act - Short Form (May 2005) ___
(13) Clause 9-12, Fair Labor Standards Acts and Services Contract Act - Price Adjustments (May 2005) ___
(14) Clause 9-13, Affirmative Action for Handicapped Workers (May 2005) _X__
(15) Clause 9-14, Affirmative Action for Disabled Veterans and Veterans of the Vietnam Era (May 2005) _X__
b. Examination of Records.
(1) Records. "Records" includes books, documents, accounting procedures and practices, and other data, regardless of type and regardless of whether such items are in written form, in the form of computer data, or in any other form.
(2) Examination of Costs. If this is a cost-type contract, the supplier must maintain, and the Postal Service will have the right to examine and audit all records and other evidence sufficient to reflect properly all costs claimed to have been incurred or anticipated to be incurred directly or indirectly in performance of this contract. This right of examination includes inspection at all reasonable times of the supplier's plants, or parts of them, engaged in the performance of this contract.
(3) Cost or Pricing Data. If the supplier is required to submit cost or pricing data in connection with any pricing action relating to this contract, the Postal Service, in order to evaluate the accuracy, completeness, and currency of the cost or pricing data, will have the right to examine and audit all of the supplier's records, including computations and projections, related to:
(a) The proposal for the contract, subcontract, or modification;
(b) The discussions conducted on the proposal(s), including those related to negotiating;
(c) Pricing of the contract, subcontract, or modification; or
(d) Performance of the contract, subcontract or modification.
(4) Reports. If the supplier is required to furnish cost, funding or performance reports, the contracting officer or any authorized representative of the Postal Service will have the right to examine and audit the supporting records and materials, for the purposes of evaluating:
(a) The effectiveness of the supplier's policies and procedures to produce data compatible with the objectives of these reports; and
(b) The data reported.
(5) Availability. The supplier must maintain and make available at its office at all reasonable times the records, materials, and other evidence described in paragraphs (a) through (d) of this clause, for examination, audit, or reproduction, until three years after final payment under this contract or any longer period required by statute or other clauses in this contract. In addition:
(a) If this contract is completely or partially terminated, the supplier must make available the records related to the work terminated until three years after any resulting final termination settlement; and
(b) The supplier must make available records relating to appeals under the claims and disputes clause or to litigation or the settlement of claims arising under or related to this contract. Such records must be made available until such appeals, litigation or claims are finally resolved.
3.1.1 Provision 4-1 Standard Solicitation Provisions (December 2003) (Modified)
a. Submission of Offers. Submit signed and dated offers to the office specified in this solicitation at or before the exact time specified on this solicitation. Offers may be submitted on Form 7405, Order/Solicitation/Offer/Award, letterhead stationary, or as otherwise specified in the solicitation. As a minimum offers must show:
(1) Solicitation number;
(2) The name, address and telephone number of the offeror;
(3) A technical description of the items being offered in sufficient detail to evaluate compliance with the requirements in the solicitation. This may include product literature, or other documents, if necessary;
(4) Terms of any expressed warranty;
(5) Price and any discount terms;
(6) "Remit to" address, if different than mailing address;
(7) A completed copy of the representations and certifications;
(8) Acknowledgment of Solicitation Amendments by signing and returning the amendment, identifying the amendment number and date in the space provided for this purpose on the solicitation form; or by letter or telegram. Acknowledgments of amendments are subject to the Late Submissions and Modifications of Proposals provision of the solicitation. Proposals lacking acknowledgment of an amendment affecting price, quantity, quality, or delivery may be disregarded.
(9) Past performance information, when included as an evaluation factor, to include recent and relevant contracts for the same or similar items, and other references (including contract numbers, point of contact, with telephone numbers, and other relevant information); and
(10) If the offer is not submitted on Form 7405, include a statement specifying the extent of agreement with all terms and conditions and provisions included in the solicitation. Offers that fail to furnish required representations or information, or reject the terms and conditions of the solicitation may be excluded from consideration.
b. Equipment Specifications. When the supplier submits a proposal to this solicitation, it is certifying that it will provide the equipment as specified in the statement of work and schedule provided in the solicitation.
c. Alternative Offers. Offerors may submit alternative terms and conditions or commercial items for satisfying the requirements in the solicitation. Comments or notes must be submitted directly to the contracting officer prior to the solicitation closing date.
d. Late Offers. Offers or modifications of offers received at the address specified for the receipt of offers after the exact time specified for receipt of offers will not be considered unless determined to be in the best interests of the Postal Service.
e. Type of Contract. In most cases, the Postal Service will award a single highway transportation contract to provide the highway transportation services described in the solicitation. However, under certain circumstances, multiple awards may be made to satisfy the total requirement.
The contract will be of the fixed-price type as described in the USPS Interim Internal Purchasing Guidelines (IIPG) May 19, 2005 All proposals must be submitted on a fixed-price basis. Prices may be adjusted in accordance with Section 2.1, Payment. Proposals based on other contract types will not be considered.
f. Contract Award. The Postal Service may evaluate offers and award a contract without discussions with offerors. Therefore, the offeror's initial offer should contain the offeror's best terms from a price and technical standpoint. Discussions may be conducted if the Postal Service determines they are necessary. The Postal Service may reject any or all offers if such action is in the best interest of the Postal Service; accept other than the lowest offer, and waive informalities and minor irregularities in offers received.
g. Multiple Awards. The Postal Service may accept any item or group of items of an offer, unless the offeror qualifies the offer by specific limitations. Unless otherwise provided in the Schedule, offers may not be submitted for quantities less than those specified. The Postal Service reserves the right to make an award on any items for quantity less than the quantities offered, at the unit prices offered, unless the offeror specifies otherwise in the offer.
h. All requests for clarification must be submitted in writing (to include letter, email, or fax) to the contracting officer prior to the expiration date and time of the event.
i. Incorporation by Reference. Wherever in this solicitation or contract a standard provision or clause is incorporated by reference, the incorporated term is identified by its title, the provision or clause number assigned to it in the Postal Service's (IIPG) May 19, 2005 and its date. The text of incorporated terms may be found in Appendix A (for provisions), or Appendix B (for clauses) of the (IIPG) May 2005 accessible online at www.usps.com/business. If checked, the following provision is incorporated in this solicitation by reference:
(Contracting
officer will check as appropriate.)
Provision 3-1,
Notice of Small, Minority, and Woman-owned Business Subcontracting
Requirements (May 2005) x .
Special Notices:
The distance stated in this solicitation is believed to be substantially correct. The amounts payable under this contract will neither be increased or decreased if the actual distance is greater or less than stated, so long as the points to be served are correctly stated. No claim for additional money will be honored if such claim is based on alleged mistakes as to the length of a correctly identified route.
The Fair Labor Standards Act applies to employees of a mail transportation supplier who engage or assist in the contract performance. The minimum wage, maximum work hours and provisions are interpreted and enforced by the United States Department of Labor (DOL). Further information on the requirements and application of this statute may be obtained from the Regional Administrator, Wage and Hour Division, United States Department of Labor, with jurisdiction over your area, or from the DOL at the address indicated below:
Department of Labor
Division of Wage and Hour, Room S3028
Washington DC 20210-0001
Service employees employed under this contract are subject to the Service Contract Act. See Section 2.3.4, Service Contract Act (Clause 9-10) (May 2005)
Note 1: Before submitting your proposal review carefully all requirements set out in statement of work, the schedule, and special notes attached to the schedule.
Note 2: The estimated per trip miles shown on the schedule, or special notes are given only as information. Prior to submitting a proposal for a route, the offeror should determine the actual miles that must be covered. The pay will neither be increased nor decreased if the actual distance is greater or less than advertised, if the points to be supplied are correctly stated. No claim for additional pay can be allowed which is based on alleged mistakes or misapprehensions as to the length of route.
Note 3: The hours shown on the schedule, or special notes are the Postal Service’s estimates of the minimum hours necessary to operate the required trips and are believed to be substantially correct; they do not include wash-up time, vehicle inspections, etc.
Note 4: Eligibility of Offerors
a. Persons ineligible to become suppliers.
Employees of the U.S. Postal Service or members of their immediate families. “Immediate family” means spouse, minor child or children, and other individuals related to the employee by blood who are residents of the employee’s household.
Business organizations substantially owned or controlled by Postal Service employees or their immediate families.
b. Persons eligible to become suppliers. Subject to the foregoing exceptions, the following are eligible to hold mail transportation contracts:
An individual (if at least 21 years of age).
A partnership, if any partner meets the foregoing age qualification of an individual.
A corporation.
c. General Requirements
No proposal for a contract shall be considered unless the offeror submitting it can assure either personal or representative supervision over the operation of the route and can be easily contacted in the event of emergencies, to give personal or representative attention to the problem at hand.
No contract shall be made with any
offeror who has entered into or proposed any combination to prevent
the making of any proposal for carrying mail or who has agreed, or
given or promised any consideration, to induce another potential
offeror not to submit an offer for such a contract. The U.S. Postal
Service may terminate the contract of any supplier so offending and
may disqualify such supplier from contracting for transporting mail
under future contract.
3.1.2 Evaluation Information - Addendum to Provision 4-1
NOTE: The offered price must include all elements of cost the offeror expects to incur in performing service.
A. Price Specific
(1) Proposals must include completion of the appropriate transportation services proposal form (Form 7405)
Each proposal must be submitted on
Form 7405. The following instructions should be closely adhered to
in completing this form:
Item 1. Fill in the solicitation number, date of the solicitation, and the terminal points of the route exactly as they appear on the solicitation.
Item 2. In the first space, write out the exact amount of your
offered price. In the second space, insert the numerical amount.
Make certain that the amounts set forth in both spaces are exactly
the same.
Item 3. In blocks a, b, and c, enter the complete name, address and phone number of the offeror. Enter the offeror’s DOT number in block d. Enter the Employer Identification Number (Social Security Number if the offeror is an individual) in block e. Complete blocks f and g only if proposals are being submitted for box delivery routes. In this case, an offeror must meet the special requirements in the Statement of Work and Specifications.
Complete the remainder of the form, including the appropriate certificate and other items on the reverse, and sign the form as offeror.
If the rate proposed is $2,500 or more per year, complete the Equal Opportunity Representation that appears on the reverse of the form. If the rate proposed is more than $10,000 per year, you must provide the information required under “Parent Company and Taxpayer Identification Number.”
(2) A completed Form 7468-A, Highway Transportation Contract - Proposal or Renewal Worksheet.
Complete Form PS 7468-A, Offerors
are cautioned that the sum of all items entered on this worksheet
must agree with the rate proposed on the Form 7405. If a final
price is negotiated which is different from your initial offer, you
must submit a revised Form 7468-A with your revised offer.
The information provided on your
Form 7468-A will not be used to evaluate the price you have
proposed. This is a competitive, negotiated procurement, and award
will be made based on price and other factors (if any) set out in
Section 3.1.3 of this document. However, the information provided on
the Form 7468-A will establish the base from which the rate of
compensation may be adjusted during the term of any contract.
Failure to submit a satisfactorily completed Form 7468-A may prevent
such adjustments.
Preparing Form 7468-A will assist
you in determining your price for the service being solicited. You
should keep a record of the information furnished for future
reference.
If you receive an award, Form 7468-A furnished by you will not be distributed to individuals other than the supplier.
Fuel Purchase Plan (see attachments under Part 4).
B. Proposal Specific
By submitting an offer to this solicitation, the supplier is acknowledging an understanding of the vehicle requirements as stated in the statement of work, the attached schedule, and special notes, and certifies that such equipment will be provided for this service if the supplier is awarded the contract.
C. Supplier Specific
Upon request from the contracting officer, the supplier may be required to provide additional financial data or other information sufficient to establish the capability of the offeror. Failure to provide such information upon request may be cause for rejection of the offer. Any financial data submitted hereunder or any representation concerning facilities or financing will not form a part of any resulting contract.
D. Past Performance
Past performance may be measured as demonstrated by performance on other transportation service contracts.
3.1.3 Provision 4-2 Evaluation (May 2005) (Modified)
a. General. The Postal Service will award a contract to the offeror whose offer is deemed to offer the Postal Service the best value, price, and other factors as specified. The following performance evaluation factors will be used in the evaluation of offers:
1. Schedule
2. Equipment
3. Supplier Capability
4. Past Performance
The following must be in the supplier’s offer:
Proposed annual rate, trip rate, round-trip rate, cost per hour, or rate per mile, as specified in the solicitation.
Price factors (Section 3.1.2a) will be considered more important than performance evaluation factors.
b. Notice of Award. The Postal Service may accept an offer (or part of an offer), whether or not there are discussions after its receipt, before an offer's specified expiration time, unless a written notice of withdrawal is received before award. A written notice of award or acceptance of an offer mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the offer, will result in a binding contract without further action by either party.
3.1.4 Provision 4-3 Representations and Certifications (May 2005) (Modified)
a. Type of Business Organization.
For type of business organization representations and certifications, please complete Form 7319c in accordance with the instructions below.
b. Parent Company and Taxpayer Identification Number
(1) A parent company is one that owns or controls the basic business polices of an offeror. To own means to own more than 50 percent of the voting rights in the offeror. To control means to be able to formulate, determine, or veto basic business policy decisions of the offeror. A parent company need not own the offeror to control it; it may exercise control through the use of dominant minority voting rights, proxy voting, contractual arrangements, or otherwise.
(2) Enter the offeror's Taxpayer Identification Number (TIN) in the space provided. The TIN is the offeror's Social Security number or other Employee Identification Number used on the offeror's Quarterly Federal Tax Return, U.S. Treasury Form 941. Offeror's TIN: ____________________________
(3) Check this block if the offeror is owned or controlled by a parent company: _____
(4)
If the block above is checked, provide the following information
about the parent company:
Parent Company's
Name:_______________________________
Parent Company's Main
Office:___________________________
Address:_____________________________________________
No.
and
Street:________________________________________
City:________________
State:______ ZIP Code:_____________
Parent Company's
TIN:__________________________________
(5)
If the offeror is a member of an affiliated group that files its
federal income tax return on a consolidated basis (whether or not the
offeror is owned or controlled by a parent company, as provided
above) provide the name and TIN of the common parent of the
affiliated group:
Name of Common Parent:
______________________________
Common Parent's TIN:
_________________________________
c. Certificate of Independent Price Determination
(1) By submitting this proposal, the offeror certifies, and in the case of a joint proposal each party to it certifies as to its own organization, that in connection with this solicitation:
(a) The prices proposed will be arrived at independently, without consultation, communication, or agreement, for the purpose of restricting competition, as to any matter relating to the prices with any other offeror or with any competitor;
(b) Unless otherwise required by law, the prices proposed have not been and will not be knowingly disclosed by the offeror before award of a contract, directly or indirectly to any other offeror or to any competitor; and
(c) No attempt has been made or will be made by the offeror to induce any other person or firm to submit or not submit a proposal for the purpose of restricting competition.
(2) Each person signing the proposal certifies that:
(a) He or she is the person in the offeror's organization responsible for the decision as to the prices being offered herein and that he or she has not participated, and will not participate, in any action contrary to paragraph a above; or
(b) He or she is not the person in the offeror's organization responsible for the decision as to the prices being offered but that he or she has been authorized in writing to act as agent for the persons responsible in certifying that they have not participated, and will not participate, in any action contrary to paragraph a above, and as their agent does hereby so certify; and he or she has not participated, and will not participate, in any action contrary to paragraph a above.
(3) Modification or deletion of any provision in this certificate may result in the disregarding of the proposal as unacceptable. Any modification or deletion should be accompanied by a signed statement explaining the reasons and describing in detail any disclosure or communication.
d. Certification of Nonsegregated Facilities
(1) By submitting this proposal, the offeror certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform services at any location under its control where segregated facilities are maintained. The offeror agrees that a breach of this certification is a violation of the Equal Opportunity clause in this contract.
(2) As used in this certification, segregated facilities means any waiting rooms, work areas, rest rooms or wash rooms, restaurants or other eating areas, time clocks, locker rooms or other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment area, transportation, or housing facilities provided for employees that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, or national origin, because of habit, local custom, or otherwise.
(3) The offeror further agrees that (unless it has obtained identical certifications from proposed subcontractors for specific time periods) it will obtain identical certifications from proposed subcontractors before awarding subcontracts exceeding $10,000 that are not exempt from the provisions of the Equal Opportunity clause; that it will retain these certifications in its files; and that it will forward the following notice to these proposed subcontractors (except when they have submitted identical certifications for specific time periods):
Notice: A certification of nonsegregated facilities must be submitted before the award of a subcontract exceeding $10,000 that is not exempt from the Equal Opportunity clause. The certification may be submitted either for each subcontract or for all subcontracts during a period (quarterly, semiannually, or annually).
e. Certification Regarding Debarment, Proposed Debarment, and Other Matters - A Certification Regarding Debarment, Proposed Debarment, and Other Matters (continuation of Form 7319c) is attached. This certification must be completed with respect to any offer with a value of $100,000 or more in accordance with the following information:
(1) The offeror certifies, to the best of its knowledge and belief, that it or any of its principals:
(a) Are ___ are not ___ presently debarred or proposed for debarment, or declared ineligible for the award of contracts by any Federal, state, or local agency;
(b) Have ____ have not ___, within the three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, state, or local) contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, or receiving stolen property;
(c) Are ___ are not ___ presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated in subparagraph (b) above;
(d) Have ___ have not ___ within a three-year period preceding this offer, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in conjunction with obtaining, attempting to obtain, or performing a public (Federal, state or local) contract or subcontract; violation of Federal or state antitrust statutes relating to the submission of offers; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion or receiving stolen property; and
(e) Are ___ are not ___ presently indicted for, or otherwise criminally or civilly charged by a governmental entity with, commission of any of the offenses enumerated in subparagraph (d) above.
(2) The offeror has ___ has not ___, within a three-year period preceding this offer, had one or more contracts terminated for default by any Federal, state, or local agency.
(3) "Principals," for the purposes of this certification, means officers, directors, owners, partners, and other persons having primary management or supervisory responsibilities within a business entity (e.g., general manager, plant manager, head of a subsidiary, division, or business segment, and similar positions).
(4) The offeror must provide immediate written notice to the Contracting officer if, at any time prior to contract award, the offeror learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.
(5) A certification that any of the items in paragraph (a) of this provision exists will not necessarily result in withholding of an award under this solicitation. However, the certification will be considered as part of the evaluation of the offeror's capability (see IIPG, Section 2.1.9.c.3). The offeror's failure to furnish a certification or provide additional information requested by the contracting officer will affect the capability evaluation.
(6) Nothing contained in the foregoing may be construed to require establishment of a system of records in order to render, in good faith, the certification required by paragraph (a) of this provision. The knowledge and information of an offeror is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.
(7) This certification concerns a matter within the jurisdiction of an agency of the United States and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under section 1001, Title 18, United States Code.
(8) The certification in paragraph (a) of this provision is a material representation of fact upon which reliance was placed when making the award. If it is later determined that the offeror knowingly rendered an erroneous certification, in addition to other remedies available to the Postal Service, the contracting officer may terminate the contract resulting from this solicitation for default.
f. Incorporation by Reference. Wherever in this solicitation or contract a standard provision or clause is incorporated by reference, the incorporated term is identified by its title, its provision or clause number assigned to it in the Postal Service's Interim Internal Purchasing Guidelines (IIPG), and its date. The text of incorporated terms may be found in Appendix A (for provisions), or Appendix B (for clauses) of the IIPG accessible online at www.usps.com/business. The following provisions are incorporated in this solicitation by reference:
(1) Provision A-1, Restriction on Disclosure and Use of Data (May 2005)
(2) Provision 1-4, Prohibition Against Contracting with Former Officers or PCES Executives (May 2005)
(3) Provision 1-5, Proposed Use of Former Postal Service Employees (May 2005)
(4) Provision 9-1, Equal Opportunity Affirmative Action Program (May 2005)
(5) Provision 9-2, Preaward Equal Opportunity Compliance Review (May 2005)
(6) Provision 9-3, Notice of Requirements for Equal Opportunity Affirmative Action (May 2005)
PART 4. LIST OF EXHIBITS AND ATTACHMENTS
A. Applicable Wage Determinations: The attached is a representation of a Wage Determination for a Highway Contact Route. Additionally, a Collective Bargaining Agreement may be attached, depending on supplier and route. The actual Wage Determination in the contract solicitation will take precedence over those represented in the Prequalification package.
B. Vehicle Specifications
C. Standard Operating Procedures for Vehicle Inspections by Law Enforcement Officials, Logistics Order, LO200312
D. Form 7319-C, Representations and Certifications
E. Fuel Management Program