Highway Contract Route (Hcr)

HIGHWAY CONTRACT ROUTE (HCR)

TRANSPORTATION ROUTES ONLY

TERMS AND CONDITIONS, ISSUE 5

BASED ON

THE UNITED STATES POSTAL SERVICE’s

SUPPLYING PRINCIPLES AND PRACTICES (2006)

Effective: April1, 2008

PREFACE

This document presents the Highway Contract Route (HCR) terms and conditions that will apply to all transportation route solicitations and transportation route contracts only. This document is not applicable to contract delivery service (CDS) routes or combination routes.

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.

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.

TABLE OF CONTENTS

Page

PART 1. Statement of Work (Section b)

PART 2. Clauses......

2.1.Payment (Highway) (Clause B-74) (March2006)------

2.1.1Annual Rate Payments------

2.1.2.Other Than Annual Rate Payments------

2.1.3Payment -- Fixed Price (Clause 2-26) (March2006)------

2.1.4Payment Due Date------

2.1.5Interest (Clause B-22) (March2006)------

2.1.6Payment Process------

2.2. Special Clauses------

2.2.1Definitions (Clause B-1) (March2006)------

2.2.2Appeals to Next Higher Contracting Authority------

2.2.3Subcontracting------

2.2.4Clause 1-7 Organizational Conflicts of Interest (March2006)

2.2.5Clause 1-11 Prohibition Against Contracting With Former Postal Service Officers or PCES Executives (March2006)

2.2.6Clause 1-12 Use of Former Postal Service Employees------

2.2.7 Trailers

2.2.8Fuel Cost Management Clause------9

2.2.9Supplier Tax Identification Number or Social Security Number------

2.2.10Usage of Postal Facilities------10

2.2.11D-U-N-S Number------10

2.3. General Clauses------

2.3.1Clause 4-1 General Terms and Conditions (March2006)

2.3.2Changes (Transportation) (Clause B-67) (March2006)------

2.3.3Termination of Contracts------

2.3.4 Safety Rating (Federal Motor Carrier Safety Administration)

2.3.5 Clause 4-2 Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders (March 2006)

PART 3. PROVISIONS......

3.1 Instructions to Offerors------

3.1.1Provision 4-1 Standard Solicitation Provisions (March2006)------

3.1.2Evaluation Information - Addendum to Provision 4-1------

3.1.3Provision 4-2 Evaluation (March2006)------

3.1.4Provision 4-3 Representations and Certifications (March2006)------

PART 4. LIST OF EXHIBITS AND ATTACHMENTS......

Page 1

PART 1. Statement of Work (Section b)

Part 1 includes the Statement of Work (which is Section B in the front of the contract).

PART 2. Clauses

2.1.Payment (Highway) (Clause B-74) (March 2006) (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.

2.1.1Annual Rate Payments

Annual rate payments for services rendered under this contract will be made as follows:

a.The Accounting Service Center (ASC) will pay the supplier automatically at the conclusion of each month for which payment is due.

b.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 for a leap year), and multiplying that result by the number of days in that month. If this contract ends before the end of a month, payment will be based on the number of days within that period during which the contract was in force. The leap year calculation begins on July 1 of the year before the leap year.

c.The contracting officer may authorize (1) adjustments in compensation pursuant to the 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 ASC and the supplier need not submit a separate invoice.

d.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.

e.The supplier must invoice for all payments not covered by paragraphs a and b above.

1.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).

2.Hourly rate payments for operations conducted to stop points other than on the regular schedule.

3.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.

4.Requests for payment for detours must be filed as provided under the detours provision of the Changes clause.

5.All other requests for payments must be submitted in accordance with the Payment – Fixed Price clause.

f.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 will be made as follows:

a.Payment will be made by the Administrative Official’s issuance of a Form5429 “Certification of Exceptional Contract Service Performed”, directly to the Accounting Service Center (ASC). The contracting officer will generally rely on verification data provided through the Administrative Official. Compensation will be based upon the unit rate, multiplied by the actual number of units performed.

b.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.

c.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.

d.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 ASC for such adjustments or changes and the supplier need not separately invoice for them.

e.The supplier must invoice for all payments to include:

1.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.

2.Requests for payment for detours must be filed as provided under the detours provision of the Changes clause.

Note: Some contracts may be paid under the terms and conditions described in Section 2.1.3 of this document.

2.1.3Payment -- Fixed Price (Clause 2-26) (March 2006)(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:

1.The amount due on the deliveries warrants it; or

2.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.

2.1.4Payment Due Date

Payment due for a month will be made by the AccountingServiceCenter within 30 days following the end of that month, 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.

2.1.5Interest (Clause B-22) (March 2006)

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.

2.1.6Payment Process

(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. Special Clauses

2.2.1Definitions (Clause B-1) (March2006) (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.

2.2.2Appeals to Next Higher Contracting Authority

a.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:

1.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.

2.A copy of other related correspondence.

3.A statement of the action or failure to act, from which the appeal is taken.

4.A statement of the reasons why the supplier believes the action taken or failure to act is erroneous.

b.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.

c.Neither the decisionnot 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.

2.2.3Subcontracting (Highway or Domestic Inland Water Contracts)

a.For the purpose of this section, a subcontract is any agreement, other than an employer-employee agreement or a temporary agreement for labor by and owner-operator as described below, between a party that has contracted with the Postal Service to transport mail and a third party, in which the third party agrees to provide all or part of the contract serviceor goods or services that support the performance of the prime contract. An employer-employee agreement is one under which the employee is subject to the continuing authority of the mail transportation 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 and to withhold taxes and amounts for social security benefits from the employees' compensation for the work performed under the agreement. If an owner-operator, 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, that transaction is not a subcontract within the meaning of this section.

b.The Postal Service’sSupplying Principles and Practices(March 29, 2006), Subcontracting with Small, Minority, and Women-owned Businesses, is applicable to subcontracts under this section.

c.All subcontracts that require the subcontractor to handle, deliver, or otherwise to have access to the mail must be approved by the contracting officer, except that a supplier may, without approval of the contracting officer, subcontract the whole or part of the contract for irregular mail movements such as plant loads with one or more owner-operators who provide and drive their own vehicles.

d.Execution by a supplier of a subcontract for the performance of contract service and its approval by the Postal Service do not release the supplier from its contractual obligations, nor from liability for damages.

e.Whenever the Postal Service determines that a supplier has breached the contract by subcontracting the whole or part of the contract contrary to the requirements of the Postal Service’sSupplying Principles and Practices(March29, 2006), the contracting officer may terminate the contract for default.

f.Subcontractors performing contract service must meet the same capability and qualification requirements as the prime supplier.

g.If a whole contract is subcontracted, the subcontract must be for the full remainder of the contract term, and 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.

h.When a subcontract is terminated, the prime supplier may be required to take charge of the route. A subcontract to provide contract service may be terminated at the subcontractor's request only with the prior approval of the contracting officer, which will be given only for good cause. Subcontracts for contract service are automatically terminated by death of the subcontractor or abandonment of the service by the subcontractor.

i.When a subcontractor performing contract service fails to comply with the terms of a contract, the contracting officer notifies the prime supplier of the subcontractor’s irregularities. The contracting officer may require removal of the subcontractor for failure to perform and that the prime supplier resumes route operations, or exercise any other remedies provided by the contracts with the prime supplier.

2.2.4Clause 1-7 Organizational Conflicts of Interest (March 2006) (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.

e.Non-Disclosure of Address Information

1.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.