HCR_Terms_and_Conditions_01Apr2019_v3.pdf

HIGHWAY CONTRACT TRANSPORTATION

Terms and Conditions

Date of Issue: April 1, 2019 v.3

Table of Contents

PART 1- STATEMENT OF WORK

PART 2 – PROVISIONS

Provision 1-1: Supplier Clearance Requirements (March 2006) (MODIFIED) Provision 1-4: Prohibition Against Contracting with Former Postal Service Officers or PCES Executives (March 2006) Provision 1-5: Proposed Use of Former Postal Service Employees (March 2006) Provision 3-1: Notice of Small-, Minority-, and Woman-Owned Business Subcontracting Requirements (February 2018) Provision 4-1: Standard Solicitation Provisions (November 2007) (MODIFIED) Provision 4-3: Representations and Certifications (November 2012) Provision 9-1: Equal Opportunity Affirmative Action Program (March 2006) Provision 9-2: Preaward Equal Opportunity Compliance Review (March 2006)

INSTRUCTIONS TO OFFERORS PROVISION

PART 3 – CLAUSES

Clause B-1: Definitions (March 2006) (Modified) Clause B-3: Contract Type (March 2006) (Modified) Clause B-9: Claims and Disputes (March 2006) Clause B-15: Notice of Delay (March 2006) Clause B-16: Suspensions and Delays (March 2006) Clause B-19 Excusable Delays (March 2006) Clause B-22: Interest (March 2006) Clause B-26: Protection of Postal Service Buildings, Equipment, and Vegetation (March 2006) Clause B-30: Permits and Responsibilities (March 2006) Clause B-39: Indemnification (March 2006) Clause B-64: Accountability of the Supplier (Highway) (March 2006) Clause B-65: Adjustments to Compensation (March 2006) (Modified) Clause B-67: Changes (Transportation) (March 2006) (Modified) Clause B-68: Changes in Corporate Ownership or Officers (March 2006) Clause B-69: Events of Default (March 2006) (MODIFIED) Clause B-74: Payment (Highway) (March 2006) (Modified) Clause B-77: Protection of the Mail (March 2006) Clause B-78: Renewal (March 2006) (Surface Transportation) (Modified) Clause B-79: Forfeiture of Compensation (March 2006) Clause B-80: Laws and Regulations Applicable (March 2006) Clause B-81: Information or Access by Third Parties (May 2006) Clause B-82: Access by Officials (March 2006)

Clause 1-1: Privacy Protection (October 2014) Clause 1-7: Organizational Conflicts of Interest (March 2006) Clause 1-11: Prohibition Against Contracting with Former Officers or PCES Executives (March 2006) Clause 1-12: Use of Former Postal Service Employees (March 2006) Clause 2-19: Option to Extend (Services Contract) (March 2006) Clause 3-1: Small-, Minority-, and Woman-Owned Business Subcontracting Requirements (February 2018) Clause 3-2: Participation of Small-, Minority-, and Woman-Owned Businesses (February 2018) Clause 4-1: General Terms and Conditions (July 2007) (Modified) Clause 4-2: Contract Terms and Conditions Required to Implement Policies, Statutes or Executive Orders (July 2014)

A. INCORPORATION BY REFERENCE

Clause 7-4: Insurance (March 2006) (MODIFIED) Clause 7-6: Federal, State, and Local Taxes (March 2006) Clause 7-10: Sustainability (July 2014) (Modified) Clause 9-9: Equal Opportunity Preaward Compliance of Subcontracts (March 2006) Clause 9-12: Fair Labor Standards Act and Service Contract Act Price Adjustment (February 2010) Administrative Official Clause Electronic Communication and Interactivity Clause Safety Rating (Federal Motor Carrier Safety Administration) Clause Subcontracting Clause Usage of Postal Facilities Clause

PART 1- STATEMENT OF WORK

PART 2 – PROVISIONS

Provision 1-1: Supplier Clearance Requirements (March 2006) (MODIFIED) The contract resulting from this solicitation will require the contractor or its employees (including subcontractors and their employees) to have access to occupied postal facilities, and/or to postal information and resources, including postal computer systems. Clearance will be required before that access will be permitted in accordance with MI PO-530-2009-4, Screening Highway Transportation Contractor Personnel, or any superseding management instruction. It is the supplier’s obligation to obtain and supply to the Postal Service the forms and information required by that regulation.

Offerors must familiarize themselves with the requirements of that regulation, taking into account in their offers the time and costs associated with the screening.

Provision 1-4: Prohibition Against Contracting with Former Postal Service Officers or PCES Executives (March 2006) The offeror represents that former Postal Service officers or Postal Career Executive Service (PCES) executives will not be employed as key personnel, experts or consultants in the performance of the contract if such individuals, within 1 year of their retirement from the Postal Service, will be performing substantially the same duties as they performed during their career with the Postal Service. In addition, no contract resulting from this solicitation may be awarded to such individuals or entities in which they have a substantial interest, for 1 year after their retirement from the Postal Service, if the work called for in the solicitation requires such individuals to perform substantially the same duties as they performed during their career with the Postal Service.

Provision 1-5: Proposed Use of Former Postal Service Employees (March 2006) In its proposal, the supplier must identify any former Postal Service employee it proposes to engage, directly or indirectly, in the performance of the contract. The Postal Service reserves the right to require the supplier to replace the proposed individual with an equally qualified individual.

Provision 3-1: Notice of Small-, Minority-, and Woman-Owned Business Subcontracting Requirements (February 2018) When the contract value is estimated at $1 million or more, all offerors, except small businesses, must submit with their proposals the contract-specific subcontracting plan required by Clause 3-1: Small-, Minority-, and Woman-Owned Business Subcontracting Requirements. Generally, this plan must be agreed to by both the offeror and the Postal Service before award of the contract. Lack of submittal of a contract-specific subcontracting plan may make the offeror’s proposal unacceptable for award.

All offerors, must be capable of reporting as required by Clause 3-2: Participation of Small-, Minority-, and Woman-Owned Businesses. Reporting is required when the contract value is estimated at $500,000 or more.

Provision 4-1: Standard Solicitation Provisions (November 2007) (MODIFIED)

a. Submission of Offers. The Postal Service will provide a Postal Service (PS) Form 7405, Order /

Solicitation / Offer / Award, to offerors for signature and inclusion with the proposal package.

The proposal(s) submitted by the offeror will require, at a minimum:

i. Solicitation number.

ii. The name, address and telephone number of the offeror.

iii. Price and any discount terms.

iv. “Remit to” address, if different than mailing address.

v. A completed copy of the representations and certifications (Provision 4-3).

vi. Acknowledgment of Solicitation Amendments.

http://blue.usps.gov/policy/clauses/provision.htm http://blue.usps.gov/policy/clauses/provision.htm

vii. PS Form 7405, Order / Solicitation / Offer / Award.

b. Business Disagreements. Business disagreements may be lodged with the Supplier

Disagreement Resolution Official (SDRO) if the offeror and the Contracting Officer have failed to resolve the disagreement as described in 39 CFR Section 601. The SDRO will consider the disagreement only if it is lodged in accordance with the time limits and procedures described in 39 CFR Section 601. The SDRO’s decisions are available for review at www.usps.com.

c. Late Proposals. Proposals or modifications of proposals received at the address specified for the receipt of proposals after the exact time specified for receipt of proposals will not be considered unless determined to be in the best interest of the Postal Service.

d. Type of Contract. Fixed Price with Economic Price Adjustment. Adjustments will be made in accordance with the contract and Management Instruction PM-4.4.1-2005-1, which can be found at http://about.usps.com/management-instructions/p441051.pdf.

e. Contract Award. The Postal Service may evaluate proposals and award contracts without discussions with offerors. Therefore, the offeror’s initial proposal 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 proposals if such action is in the best interest of the Postal Service; accept other than the lowest price proposal, and waive informalities and minor irregularities in proposals received.

f. Multiple Awards. The Postal Service intends to award one or more contracts under this solicitation.

g. 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 Supplying Principles and Practices, and its date. The text of incorporated terms may be found in Section 9 (for Provisions) or Section 10 (for Clauses) of the Supplying Principles and Practices, accessible online at http://about.usps.com/manuals/pm/welcome.htm .

Provision 4-2: Evaluation (March 2006) (MODIFIED)

a. General. The Postal Service will award a contract resulting from this solicitation to the offeror whose offer conforming to the solicitation is deemed to offer the Postal Service the best value, price and other factors as specified considered. Each offeror will be required to submit a two-volume proposal. The Technical Evaluation will be based on the first volume, whereas the Price Evaluation will be based on data provided on PS Form 7405. Supplier Eligibility will be graded on a pass/fail basis. Offerors who do not “pass” the Supplier Eligibility criteria will be deemed “not eligible” and will not be further evaluated for award. This subparagraph is continued in the Supplemental Evaluation Provision below.

b. Reserved

c. Notice of Award. A written notice of award or acceptance of proposal mailed or otherwise furnished to the successful offeror within the time for acceptance specified in the proposal will result in a binding contract without further action by either party. Before the proposal’s specified expiration time, the Postal Service may accept a proposal (or part of a proposal), whether or not there are negotiations after its receipt, unless a written notice of withdrawal is received before award.

Provision 4-3: Representations and Certifications (November 2012) A. Type of Business Organization. The offeror, by checking the applicable blocks, represents that it:

1. Operates as:

http://about.usps.com/manuals/pm/welcome.htm

__ a corporation incorporated under the laws of the state of ________; or country of________________ if incorporated in a country other than the United States of America.

__ an individual;

__ a partnership;

__ a joint venture;

__ a limited liability company;

__ a nonprofit organization; or __ an educational institution; and

2. Is (check all that apply) __ a small business concern;

__ a minority business (indicate minority below):

__ Black American __ Hispanic American __ Native American __ Asian American:

__ a woman-owned business; or __ none of the above entities.

a. A small business concern for the purposes of Postal Service purchasing means a business, including an affiliate, that is independently owned and operated, is not dominant in producing or performing the supplies or services being purchased, and has no more than 500 employees, unless a different size standard has been established by the Small Business Administration (see 13 CFR 121, particularly for different size standards for airline, railroad, and construction companies). For subcontracts of $50,000 or less, a subcontractor having no more than 500 employees qualifies as a small business without regard to other factors.

b. Minority Business. A minority business is a concern that is at least 51 percent owned by, and whose management and daily business operations are controlled by, one or more members of a socially and economically disadvantaged minority group, namely U.S. citizens who are Black Americans, Hispanic Americans, Native Americans, or Asian Americans. (Native Americans are American Indians, Eskimos, Aleuts, and Native Hawaiians.

Asian Americans are U.S. citizens whose origins are Japanese, Chinese, Filipino, Vietnamese, Korean, Samoan, Laotian, Kampuchean (Cambodian), Taiwanese, in the U.S. Trust Territories of the Pacific Islands or in the Indian subcontinent.)

c. Woman-owned Business. A woman-owned business is a concern at least 51 percent of which is owned by a woman (or women) who is a U.S. citizen, controls the firm by exercising the power to make policy decisions, and operates the business by being actively involved in day-to-day management.

d. Educational or Other Nonprofit Organization. Any corporation, foundation, trust, or other institution operated for scientific or educational purposes, not organized for profit, no part of the net earnings of which inures to the profits of any private shareholder or individual.

3. Is (check all that apply) __ a Postal Service employee or a business organization substantially owned or controlled by such an individual __ a spouse of a Postal Service employee or a business organization substantially owned or controlled by such an individual

__ another family member of a Postal Service employee or a business organization substantially owned or controlled by such an individual

__ an individual residing in the same household as a Postal Service employee or a business organization substantially owned or controlled by such an individual.

(Note: Offers from any of the sources listed in subparagraph A.3, may not be considered for an award pending review and recommendation by the Postal Service Ethics Office.)

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 U.S. Taxpayer Identification Number (TIN) in the space provided. The TIN is the offeror’s Social Security number or other Employee Identification Number (EIN) used on the offeror’s Quarterly Federal Tax Return, U.S. Treasury Form 941, or as required by Internal Revenue Service (IRS) regulations. Offeror’s TIN:

3. IRS Form W-9, Request for Taxpayer Identification Number and Certification. You must complete a copy of IRS Form W-9 and attach it to this certification.

4. Check this block if the offeror is owned or controlled by a parent company:

5. 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:__________________________________

6. 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 have been 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 this 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 (This certification must be completed with respect to any offer with a value of $100,000 or more.)

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 E.1 and E.2 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 the Conduct Supplier Capability Analysis topic of the Evaluate Proposals task of Process Step 2: Evaluate Sources, in the Postal Service’s Supplying Practices). 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 E.1 and E.2 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 E.1 and E.2 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.

Provision 9-1: Equal Opportunity Affirmative Action Program (March 2006) The offeror, by checking the applicable block or blocks, represents that it (1)__ has developed and has on file, __ has not developed and does not have on file, at each establishment, affirmative action programs as required by the rules and regulations of the Secretary of Labor (41 CFR 60-1 and 60-2) and __ has, __ has not filed the required reports with the Joint Reporting Committee, or (2) __ has not previously had contracts subject to the written affirmative action program requirement of the rules and regulations of the Secretary of Labor.

Provision 9-2: Pre-award Equal Opportunity Compliance Review (March 2006) If the contract award will be $10 million or more, the prospective supplier and its known first-tier subcontractors with subcontracts of $10 million or more will be subject to a pre-award compliance review.

In order to qualify for award, the prospective supplier and first-tier subcontractors must be found in compliance pursuant to 41 CFR 60-1.20.

SUPPLEMENTAL EVALUATION PROVISION

Evaluation Factors:

Supplier Eligibility (Pass / Fail):

The offerors’ ability to meet all the required criteria that are necessary to perform operations, to include the following:

a. Persons ineligible to become suppliers.

1. Employees of the U.S. Postal Service or members of their immediate families.

2. Business organizations substantially owned or controlled by Postal Service employees or their immediate families.

3. Suppliers suspended, debarred, ineligible, or proposed for suspension, debarment, or ineligibility are also excluded from conducting business with the Postal Service as agents, subcontractors, or representatives of other suppliers.

b. Persons eligible to become suppliers. Subject to the foregoing exceptions, the following are eligible to hold mail transportation contracts:

1. An individual (if at least 21 years of age).

2. A partnership, if any partner meets the foregoing age qualification of an individual.

3. A corporation.

Past Performance (less important than Supplier Capability and Management Plan, more important than Sustainability Plan) Using the information provided in the offeror’s proposal and with its own information and data, the Postal Service will evaluate the following, which are not sub factors but will be considered in reaching an overall rating for this evaluation factor:

a. Quality & Timeliness: Listing of current or recent Postal and non-postal contracts. For each contract listed, the offeror should provide a record of on-time performance rates and adherence to contract requirements. The Postal Service will evaluate its own data regarding service performance in connection with the evaluation.

b. Business Relations: Established productive business relations (a history of being reasonable and cooperative with customers; commitment to customer satisfaction; integrity, and ethics).

c. Cost Control: Demonstrated ability to accurately forecast and contain costs.

Supplier Capability (most important, same as Management Plan) The extent to which the offeror has the resources (e.g., financial, technical, equipment, etc.) adequate to perform the work will be evaluated. The offeror must address the following in the supplier capability section of the proposal. These are not sub factors but will be considered in coming up with an overall rating for this evaluation factor:

a. The ability to meet the required delivery schedule (e.g., able to begin operations on effective date of start-up of contract performance), considering all existing commitments, including pending awards.

b. The ability to provide the necessary equipment.

c. A sound record of integrity and business ethics.

d. The necessary organization, experience, accounting and operational controls, technical skills, and production and property controls.

e. Acceptable financial condition that will allow the Contracting Officer to determine that operations are likely to remain ongoing. Documentation should include a recent credit report. The offeror may also consider submitting additional documentation as applicable to the service. Such documentation might include a current financial statement (income statement, balance sheet, and statement of cash flows) and/or funding documentation from a financial institution.

f. Proof of Worker’s Compensation Insurance, if applicable, as demonstrated by a copy of the Insurance Certificate. If Workmen’s Compensation Insurance is not applicable to the subject service, the offeror must specifically list in its proposal that it is not applicable.

Management Plan (most important, same as Supplier Capability) The offeror must include a detailed management plan in its proposal. The Management Plan, at a minimum, must address the offeror’s plan for all situations listed below. These are not sub factors but will be considered in coming up with an overall rating for this evaluation factor.

a. Ability to conduct normal operations to include all bulleted items below

• Maintaining adequate staffing levels including drivers and supervisors. Include the planned hours for portal time, layover, and pre/post inspections.

• Compliance with Department of Labor (DOL) and Department of Transportation (DOT) regulations

• Implementation of GPS or other technology-driven solutions

• Implementation of safety program and driver training program

• Ability to monitor service performance

• Ability to close-out, receive, and dispatch all surface vehicles

• Ability to secure the mail

b. Ability to handle contingency operations to include

• Overflow mail

• Less Mail Transportation Equipment (MTE) than required

• Damaged containers

• Damaged or non-labeled mail

• Schedule changes

• Equipment breakdowns

• Inclement weather during operations

• Labor disruptions including, but not limited to, walkouts or strikes

• Staffing shortages relating to medical or other emergencies

• Delays caused by environmental issues such as fuel spills, chemical spills, or other HAZMAT

Sustainability Plan (least important) The offeror must include a detailed sustainability plan in its proposal. The Sustainability Plan, at a minimum, must address the items listed below. The following are not sub factors but will be considered in coming up with an overall rating for this factor.

a. A listing of the Make, Model, Age, and Class of Vehicle that it plans to use for the solicited service.

b. For each class of vehicle listed, the offeror should list the average Miles Per Gallon (MPG) fuel efficiency

c. An explanation of the number of scheduled miles, portal miles, backhaul miles, maintenance miles, and any other miles that will be included in the contracted service

d. The amount of gallons of fuel that the offeror is proposing for this service

e. Whether the vehicles operate using alternative fuel. If so, please state the type (CNG, LNG, etc.).

f. Whether the vehicles are California Air Resources Board compliant (if applicable)

g. A plan to improve the fuel efficiency of the vehicles over the life of the contract. The plan should describe the offeror’s current sustainability initiatives and metrics, as well as suggested initiatives on which the offeror will work collaboratively with the Postal Service.

Price Proposal Evaluation:

Box 2 on PS Form 7405 (Rate of Compensation) will be used to analyze each of the offeror’s proposal(s). The offered price must include all elements of cost the offeror expects to incur in performing service. The rates may be carried out to a maximum of four decimal places.

Best Value Decision:

Award will be made to the offeror who proposes the best value to the Postal Service. Technical Factors are slightly more important than price. In determining potential tradeoffs to arrive at the best value selection, the Postal Service will assess the strengths, weaknesses, and deficiencies between or among competing technical proposals from the standpoint of 1) what the difference might mean in terms of anticipated performance; and 2) what the evaluated cost would be for the Postal Service to take advantage of that difference.

Award will not necessarily be made to the offeror who provides the highest-rated technical proposal or to the offeror who offers the lowest price. Price is more important in selecting between or among closely ranked technical proposals. In making any price-technical tradeoff, the Postal Service also does not intend to pay a premium price unless there is a significant technical advantage justifying a higher price.

The Postal Service reserves the right to not award a contract based on this solicitation should it deem that a non-award is in its best interest. Awards will not be made to offerors whose proposals are not competitively priced or to offerors with poor technical proposals.

INSTRUCTIONS TO OFFERORS PROVISION

In order for the Postal Service to evaluate proposals in accordance with the criteria stated in Provision 4-2 and in the Supplemental Evaluation Provision, the following information must be provided. In general, the offeror must provide specific facts in lieu of broad generalizations and flowery descriptions. The offeror must also complete and return the Representations and Certifications (Provision 4-3 below). Instructions for proposal submittal are contained in the table below.

Proposals are to be divided into two volumes as shown in the table below. Page number limitations are also noted in the table below. Page limitation excludes coversheets, dividers, tables of contents, and attachments required by solicitation. Text in all volumes may be single-spaced and no smaller than Arial 10 point font. Graphics may include fonts no smaller than Arial 8 point as displayed. Margins may be no less than one (1) inch on any side, top, or bottom.

Postal Service E-Sourcing Registration: All prospective offerors must register at https://uspsprod.emptoris.com/emptoris/sso_login.jsp#/login/loginPage and enter the required information.

All proposal submissions must be submitted electronically by the time and date indicated on Form 7435.

Failure to submit the required information for Volume 1 and Volume 2 as outlined below may result in a proposal being deemed unacceptable. Unacceptable proposals will not be considered for evaluation or award.

Volume 1

Section Criteria Page Limit 1 Supplier Eligibility 2 2 Past Performance 3 3 Supplier Capability 3 4 Management Plan 5 5 Sustainability Plan 3

Volume 2

Section Criteria Page Limit 1 Completed and Signed PS Form 7405 1 2 Completed Price Worksheet 1 3 Representations and Certifications (Provision 4-3) 5 4 Subcontracting Plan (If Applicable) 5

Volume 1

Evaluation Factors

• Section 1- Supplier Eligibility The offeror must allow the evaluation team to determine that the offeror is eligible to perform all the services required for the full term of the resultant contract Information submitted must allow the evaluators to determine the offeror’s eligibility relating to the factors set forth in “Supplier Eligibility” in Provision 4-2, Evaluation and in the Supplemental Evaluation Provision.

• Section 2- Past Performance

The offeror must submit information that will allow the evaluation team to determine its performance level on contracts and other business arrangements of similar size and scope.

Information submitted must allow the evaluators to determine the offeror’s past performance relating to the factors set forth in “Past Performance,” in Provision 4-2, Evaluation and in the Supplemental Evaluation Provision.

• Section 3- Supplier Capability

The offeror must allow the evaluation team to determine that the offeror is able to perform all the services required for the full term of the resultant contract. Information submitted must allow the evaluators to determine the offeror’s capability relating to the factors set forth in “Supplier Capability” in Provision 4-2, Evaluation and in the Supplemental Evaluation Provision. This https://uspsprod.emptoris.com/emptoris/sso_login.jsp#/login/loginPage solicitation must be addressed as though this is the first time an offeror is doing business with the Postal Service.

• Section 4- Management Plan Offerors must provide a Management Plan for dealing with normal daily operations, as well as unscheduled and unexpected events affecting the expeditious operation of the network.

Information submitted must allow the evaluators to determine the offeror’s capability relating to the factors set forth in “Management Plan” in Provision 4-2, Evaluation and in the Supplemental Evaluation Provision.

• Section 5- Sustainability Plan

The offeror must include a detailed sustainability plan in its proposal. The plan must describe the offeror’s current sustainability initiatives and metrics, as well as suggested initiatives on which the offeror will work collaboratively with the Postal Service. Information submitted must allow the evaluators to determine the offeror’s capability relating to the factors set forth in “Sustainability Plan” in Provision 4-2, Evaluation and in the Supplemental Evaluation Provision.

Volume 2

Section 1 - PS Form 7405 The offeror must provide a completed and signed PS Form 7405.

The following instructions must be closely followed 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 the offered price as calculated on the Price Worksheet Attachment. 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.

Complete the remainder of the form, including the appropriate certificate, and other items on the reverse, and sign the form as offeror.

Section 2 - Price Proposal The offeror must provide its price proposal in accordance with the unit type(s) identified on PS Form 7405 using box 2 (Rate of Compensation). PS Form 7405 will be used to analyze each of the offeror’s proposal(s). The offered price must include all elements of cost the offeror expects to incur in performing service. The rates may be carried out to a maximum of four decimal places.

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 contract price will neither be increased nor decreased if the actual distance is greater or less than advertised. Suppliers are expected to state all mileage necessary to accomplish the service to include any portal, fueling or other mileage necessary even in excess of schedule mileage.

The hours shown on the schedule 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. However, Suppliers are expected to state all hours necessary to accomplish the service in their cost proposal to include wash-up, vehicle inspection, and portal time even if it is in excess of schedule hours.

Section 3 - Representations and Certifications The Representations and Certifications pursuant to Provision 4-3 must be executed and returned with the proposal.

Section 4 - Subcontracting Plan (If applicable) If required, the offeror must submit a subcontracting plan in this section of its proposal. See Clause 3-1:

Small-, Minority-, and Woman-Owned Business Subcontracting Requirements.

A subcontract is defined as any agreement (other than one involving an employer-employee relationship) entered into between a Postal Service supplier and subcontractor calling for supplies or services required for performance of the contract or subcontract

PART 3 – CLAUSES

Clause B-1: Definitions (March 2006) (Modified)

As used in this contract, the following terms have the following meanings:

a. 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.

b. Administrative Official – See the Administrative Official Clause below.

c. Mail – U.S. and foreign materials, equipment and supplies sent or carried in the postal system.

d. Route – The course of travel as described in this contract, as the same may be extended, curtailed, or otherwise altered in accordance with the terms of this contract.

e. Supplier – The person or persons, partnership or corporation that will be providing the service advertised in this solicitation.

Clause B-3: Contract Type (March 2006) (Modified)

This is a Fixed Price contract with Economic Price Adjustment. Adjustments will be made in accordance with the contract and Postal Service Management Instruction PM-4.4.1-2005-1, which can be found http://about.usps.com/management-instructions/p441051.pdf.

Clause B-9: Claims and Disputes (March 2006)

a. This contract is subject to the Contract Disputes Act of 1978 (41 U.S.C. 7101-7109) ("the Act" or

"CDA").

b. Except as provided in the Act, all disputes arising under or relating to this contract must be resolved under this clause.

c. "Claim," as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to this contract. However, a written demand or written assertion by the supplier seeking the payment of money exceeding $100,000 is not a claim under the Act until certified as required by subparagraph d.2 below. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a claim under the Act. The submission may be converted to a claim under the Act by complying with the submission and certification requirements of this clause, if it is disputed either as to liability or amount is not acted upon in a reasonable time.

d.

(1) A claim by the supplier must be made in writing and submitted to the contracting officer for a written decision. A claim by the Postal Service against the supplier is subject to a written decision by the contracting officer.

(2) For supplier claims exceeding $100,000, the supplier must submit with the claim the following certification: "I certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of my knowledge and belief, that the amount requested accurately reflects the contract adjustment for which the supplier believes the Postal Service is liable, and that I am duly authorized to certify the claim on behalf of the supplier."

(3) The certification may be executed by any person duly authorized to bind the supplier with respect to the claim.

e. For supplier claims of $100,000 or less, the contracting officer must, if requested in writing by the supplier, render a decision within 60 days of the request. For supplier-certified claims over $100,000, the contracting officer must, within 60 days, decide the claim or notify the supplier of the date by which the decision will be made.

f. The contracting officer's decision is final unless the supplier appeals or files a suit as provided in the Act.

g. When a CDA claim is submitted by or against a supplier, the parties by mutual consent may agree to use an alternative dispute resolution (ADR) process to assist in resolving the claim. A certification as described in d(2) of this clause must be provided for any claim, regardless of dollar amount, before ADR is used.

h. The Postal Service will pay interest in the amount found due and unpaid from:

(1) The date the contracting officer receives the claim (properly certified, if required); or

(2) The date payment otherwise would be due, if that date is later, until the date of payment.

i. Simple interest on claims will be paid at a rate determined in accordance with Clause B-22: Interest.

j. The supplier must proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action arising under the contract, and comply with any decision of the contracting officer.

Clause B-15: Notice of Delay (March 2006)

Immediately upon becoming aware of any difficulties that might delay deliveries under this contract, the supplier will notify the contracting officer in writing of them. The notification must identify the difficulties, the reasons for them, and the estimated period of delay anticipated. Failure to give notice may preclude later consideration of any request for an extension of contract time.

Clause B-16: Suspensions and Delays (March 2006)

a. If the performance of all or any part of the work of this contract is suspended, delayed, or interrupted by:

(1) An order or act of the contracting officer in administering this contract; or

(2) By a failure of the contracting officer to act within the time specified in this contract - or within a reasonable time if not specified - an adjustment will be made for any increase in the cost of performance of this contract caused by the delay or interruption (including the costs incurred during any suspension or interruption). An adjustment will also be made in the delivery or performance dates and any other contractual term or condition affected by the suspension, delay, or interruption. However, no adjustment may be made under this clause for any delay or interruption to the extent that performance would have been delayed or interrupted by any other cause, including the fault or negligence of the supplier, or for which an adjustment is provided or excluded under any other term or condition of this contract.

http://blue.usps.gov/policy/clauses/clauses.htm

b. A claim under this clause will not be allowed:

(1) For any costs incurred more than 20 days before the supplier has notified the contracting officer in writing of the act or failure to act involved; and

(2) Unless the claim, in an amount stated, is asserted in writing as soon as practicable after the termination of the delay or interruption, but not later than the day of final payment under the contract.

Clause B-19 Excusable Delays (March 2006)

a. Except with respect to defaults of subcontractors, the supplier will not be in default by reason of any failure in performing this contract in accordance with its terms (including any failure by the supplier to make progress in the prosecution of the work that endangers performance) if the failure arises out of causes beyond the control and without the fault or negligence of the supplier. Such causes may include, but are not restricted to, acts of God or of the public enemy, acts of the government in its sovereign capacity or of the Postal Service in its contractual capacity, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually severe weather, but in every case the failure to perform must be beyond the control and without the fault or negligence of the supplier.

b. If failure to perform is caused by the failure of a subcontractor to perform or make progress and arises out of causes beyond the control of both the supplier and subcontractor, and without the fault or negligence of either of them, the supplier will not be deemed to be in default, unless:

(1) The supplies or services to be furnished by the subcontractor are obtainable from other sources;

(2) The contracting officer orders the supplier in writing to procure the supplies or services from other sources; and

(3) The supplier fails to comply reasonably with the order.

c. Upon request of the supplier, the contracting officer will ascertain the facts and extent of failure, and if the contracting officer determines that any failure to perform was occasioned by any of the said causes, the delivery schedule will be revised accordingly, subject to the rights of the Postal Service under any termination clause included in this contract.

d. As used in this clause, the terms "subcontractor" and "subcontractors" mean subcontractor(s) at any tier.

Clause B-22: Interest (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.

Clause B-26: Protection of Postal Service Buildings, Equipment, and Vegetation (March 2006)

The supplier must use reasonable care to avoid damaging buildings, equipment, and vegetation (such as trees, shrubs, and grass) on the Postal Service installation. If the supplier fails to do so and damages any buildings, equipment, or vegetation, the supplier must replace or repair the damage at no expense to the Postal Service, as directed by the contracting officer. If the supplier fails or refuses to make repair or replacement, the supplier will be liable for the cost of repair or replacement, which may be deducted from the contract price.

Clause B-30: Permits and Responsibilities (March 2006)

The supplier is responsible, without additional expense to the Postal Service, for obtaining any necessary licenses and permits, and for complying with any applicable federal, state, and municipal laws, codes, and regulations in connection with the performance of the contract. The supplier is responsible for all damage to persons or property, including environmental damage, which occurs as a result of its omission(s) or negligence. The supplier must take proper safety and health precautions to protect the work, the workers, the public, the environment, and the property of others.

Clause B-39: Indemnification (March 2006)

The supplier must save harmless and indemnify the Postal Service and its officers, agents,…