impose fines for past failures and order the removal of the driver and vehicle from the route. It may order the employment of temporary service at the expense of the contractor until he provides a satisfactory driver.

(ii) Perform service within the limit of the running time prescribed in the advertisement under which he submitted bid.

(ii) Comply with all orders and instructions from the transportation requirements and procurement officer and the supervising postmaster.

(6) Transporting, transferring, and delivering mail. The contractor must: (i) Transport all mail to the cubical or weight capacity of the vehicle, promptly, reliably, and safely. This includes foreign mail in transit across the continental United States or its territories.

(ii) Transfer mail between the vehicle and postal installations when the vehicle can normally be driven to a point within 150 feet of the door or tailboard space of the installation, or place the vehicle at the platform or loading dock of a postal installation to permit hand-to-hand exchange of mail between clerks in the door of the vehicle and clerks on duty at the installation. The transportation requirements and procurement officer is expected to make reasonable adjustments in these requirements by agreements with postmasters and contractors to assure on-time operation.

(iii) Deliver mail to each intermediate post office on the route on both outward and inward trips unless otherwise instructed by the supervising postmaster.

(7) Transporting postal officials. The contractor must transport on regular trips all duly accredited officials of the Postal Service, traveling on official business, on presentation of their credentials. The contractor or his driver must not make known to any person at any time the presence of a postal inspector in his vehicle or in the vicinity of the route.

(8) Transporting passengers. Contractors are prohibited from carrying passengers in highway post office vehicles, other than postal personnel and contractors' employees. Contractors' employees may be permitted to ride in the driver's compartment when traveling on company business directly related to highway post office service, when such travel does not interfere with safe operation of the vehicle.

(e) Extensions, discontinuances, and changes. The distribution and traffic manager may:

(1) Order an increase in service on any route.

(2) Change schedule of arrivals and departures in all cases, particularly to make them conform to connections with railroads and other mail routes.

(3) Discontinue, change, or curtail the service, to improve the mail service or to serve the public interest.

(4) Extend the service on a route to improve mail service.

(f) Forfeitures or contract annulment. See § 521.3(g) (3).

(g) Subcontracts. Contractors for highway post office service must not subcontract the service unless the subcontract is approved by the director, transportation division. Subcontractors must conform to all requirements stated for the contractor himself. Approved subcontractors must perform the same service required of the original contractor.

(h) Payments—(1) For regular service. See § 521.3 (h) (1).

(2) Allowance for detours. See § 521.3 (h) (4).

(3) Readjustment of compensation. See Part 526 of this chapter.

(4) Deductions and fines. See § 521.3 (g) (1) and (2).

(1) Inspection of highway post office vehicles. Vehicles and equipment shall be inspected by officials of the postal service to assure compliance with departmental instructions.

[26 F.R. 11634, Dec. 6, 1961, as amended at 30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 523.3 Reports and certifications.

(a) Recurring reports. See § 521.7(b). (b) Special reports of irregularities. Postmasters and other designated installation heads shall analyze trip reports promptly upon receipt, and shall submit a narrative report to the director, transportation division, when the following irregularities occur:

(1) Gross negligence on the part of the contractor or his employees.

(2) Trips repeatedly not performed or service omitted.

(3) Delays of 30 minutes or more due to the driver's failure to report or due to equipment failure. (Delays of less than 30 minutes may be briefed in unusual circumstances.)

(4) Heat and light failures of 30 minutes or more during one round trip.

(5) Unsanitary and unclean conditions in the vehicle.

(6) Failure to provide potable water. (7) Loss or damage to mail or postal equipment.

(8) Failure of the contractor or his employees to follow reasonable instructions of postal officials or employees.

(9) Violation of postal laws or regulations.

(10) Failure to give proper supervision to performance of contracted service.

(11) Transporting as cargo matter due to be in the mail.

(12) Entrusting the vehicle to an unsuitable person.

(c) Accident reports-(1) Contractor's report. The postmaster to whom the highway post office is assigned shall require the contractor to submit reports of all accidents occurring when the highway post office is in scheduled operation. Copies of State, municipal, ICC, insurance carrier's accident report forms, or a narrative written report, are acceptable.

(2) HPO supervisor's report. Accidents are reported to the postmaster to whom the highway post office is assigned on trip reports. See that each accident reported on trip report is followed by the contractor's report of accident. Form 1769, "Supervisor's Report of Accident", must accompany trip report if postal employees are injured or government property is damaged.

(3) Postmaster's reports. The postmaster to whom the highway post office is assigned must take the following action on receipt of accident reports:

(i) Advise the inspector in charge immediately of any accidents requiring inspection service attention.

(ii) Report serious accidents immediately to the director, transportation division.

(iii) Compare contractor's report with trip report.

(iv) Prepare and submit a brief abstract of accident to the director, transportation division, to include the following:

(v) Submit contractor's report to regional safety officer and, if postal employees are injured, submit Form 1769. [26 F.R. 11635, Dec. 6, 1961, as amended at 28 F.R. 6453, June 22, 1963; 29 F.R. 6538, May 20, 1964. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 523.4 Screening contractors, subcontractors, and certain employees.

See § 521.9 except that Form 2025 and FD-258 will be sent by the director, transportation division, to the contractor or subcontractor instead of to the postmaster.

[30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

524.6

Contracts.

Routes under administration of postmasters.

524.7 Screening contractors, subcontractors, and certain employees.

AUTHORITY: The provisions of this Part 524 issued under 5 U.S.C. 301, 39 U.S.C. 501, 6101, 6103, 6104, 6405, 6408, 6410, 6413, 6416, 6423, 6433.

§ 524.1 Description.

Water route service is a contract service established by the Post Office Department to provide for the transportation of mail between post offices, or other designated points, via steamboats, or other powerboats, when land transport is unavailable or impracticable. It is operated under formal contracts, awarded after competitive bidding. In addition to transportation of mail, contracts may require:

(a) Box delivery and collection service.

(b) Sale of stamp stock.

(c) Delivery of registered, insured, certified and COD matter.

(d) Acceptance of matter presented for registration, certification, or insurance, or to be sent COD, and money with applications for money orders.

(e) Facilities for distribution of mail en route by postal clerks.

[26 F.R. 11635 Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 524.2 Postal services provided.

(a) Exchange of mail. The contractor shall exchange mail with:

(1) All intermediate post offices and non-post office points on the route, as stated in the advertisement, on both outward and return trips, unless otherwise instructed.

(2) Post offices established after the advertisement is issued. No additional pay is made in such instances if the distance is not increased.

(3) Post offices at each end of the route, unless the distribution and traffic manager has otherwise provided for such terminal service.

(4) Mail carriers on connecting routes, if necessary.

(b) Box delivery and collection service. Advertisements and contracts state whether box delivery and collection service is required. They also state the scope of such service. The instructions contained in Part 159 of this chapter are applicable to water route service, so far as practicable. See also § 521.2 (b) and (c).

(c) Acceptance of mail en route. Every mail carrier shall receive any mail presented to him, if it is properly prepaid by stamps, and deliver it at the next post office at which he arrives. No fees are allowed for this service.

(d) Other postal services. On routes where the provisions of the contract require, the carrier must sell stamp stock and transact money-order and registry business in accordance with the instructions contained in the advertisement. [26 F.R. 11635 Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966] § 524.3 Contracts.

(a) Contract terms. See § 521.3 (a). (b) Obtaining bids. See § 521.3(c) except subparagraph (2) (i) (a) thereof as bidders for water route service are not restricted as to residence.

(c) Award of contract. See § 521.3(d). (d) Contractor's responsibilities—(1) Providing equipment. Contractors must provide:

(i) Steamboats or other powerboats which are safe, suitable, and satisfactory to the Post Office Department.

(ii) The means necessary to transport all mail, regardless of size, weight, or increase in volume during the term of the contract.

(2) Performing service. shall:

Contractors

(i) Carry the mail or supervise the service in person or by an agent.

(ii) Be held accountable for the acts and omissions of the persons to whom they commit the care and transportation of the mail and for careful and faithful performance of duties by those persons. They shall discharge any persons engaged in carrying the mail whenever the distribution and traffic manager requires that they take such action.

(iii) Carry the mail with certainty, celerity, and security.

(iv) Transport foreign mail in transit the territory of the United

across States.

(v) Not carry, otherwise than in the mail, letters that should go by mail or transport any person engaged in carrying letters that should go by mail.

(3) Maintaining schedules. Contractors shall:

(i) Provide service by schedules satisfactory to the distribution and traffic manager.

(ii) Observe the schedule stated in the advertisement or such other schedule of like running time as may be directed by the transportation requirements and procurement officer having supervision over the route.

(4) Giving preference to mail. See § 521.3 (e) (3).

(5) Transporting postal employees and equipment. (i) Postal clerks may be assigned to water routes. The contractor on those routes shall provide and fit up suitable space for their use in accordance with specifications in the advertisements.

(ii) Contractors shall furnish post office officials, on exhibition of credentials, transportation on trips handling mail between scheduled points on the mail route.

(iii) The contractor shall transport, without extra charge, all post office blanks, mail bags, lock and keys, and other postal supplies offered to him. (6) Providing carriers. (i) Qualifica

tions. See § 521.3 (e) (7) (ii). (ii) Persons ineligible. See § 521.3 (c) (2) (1) (e) and (e) (7) (ii).

(e) Renewals, extensions, and changes without advertising—(1) Renewals. See § 521.3 (f) (1).

(2) Extensions of contract period. See § 521.3 (f) (2).

(3) Changes in service-(i) Extensions of service. Service may be increased or extended by allowing a pro rata increase in compensation, but the

(2) Pound rate contracts. Claims for payment for service performed will be submitted by the contractor to the director, transportation division, each accounting period, on Standard Form 1034, "Public Voucher for Purchases and Services Other Than Personal," with two copies of SF 1034A, "Memorandum Copy of SF" 1034, supported by an itemized statement of all service performed, rates per pound, and the amount due. The director, transportation division, will verify all items shown on the itemized statement submitted by the contractor with the reports submitted by the postmasters. SF 1034 will be covered by certification of service on Form 5429, to the postal data center.

(3) Readjustment of compensation. See Part 526 of this chapter.

[26 F.R. 11635, Dec. 6, 1961, as amended at 28 F.R. 6453, June 22, 1963; 29 F.R. 6539, May 20, 1964; 30 F.R. 10152, Aug. 14, 1965; 31 F.R. 12637, Sept. 27, 1966. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 524.4 Protection of mail.

See § 521.6.

[26 F.R. 11636, Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 524.5 Records and reports.

See § 521.7. In lieu of Form 5399, postmasters and other designated installation heads may be required by the director, transportation division, to submit whatever reports are necessary as evidence of service performed.

[31 F.R. 12637, Sept. 27, 1966. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 524.6 Routes under administration of postmasters.

See § 521.8.

[26 F.R. 11636, Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

525.6 Payments.

525.7

Screening contractors, subcontractors, and certain employees.

AUTHORITY: The provisions of this Part 525 issued under 5 U.S.C. 301, 39 U.S.C. 501, 6403, 6416.

§ 525.1 Description.

Contract motor vehicle service is similar to mail messenger service, except that it is provided under formal contracts with bonds for specified terms. It is used for the same purposes as shown for mail messenger service. See § 522.1.

[26 F.R. 11636, Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966] § 525.2

Establishment.

(c) Requirements for bidders. Bidders must meet the following qualifications:

(1) Age. Contract motor vehicle contractors shall not be under 21 years of age, and their assistants not under 18. (2) Residence. See § 522.2(c) (2). (3) Reliability. See § 522.2(c) (3). (4) Dual employment. See § 521.3(c) (2) (i) (b) and (c).

(d) Bid procedure. See § 521.3(c). Form 5449-A, Contract Motor Vehicle Service Bid and Bond-Work Sheet is used in submitting bids for contract motor vehicle service.

(e) Oaths. See § 521.3(d) (9).

(f) Employment of assistants. Contract motor vehicle contractors must either personally supervise their contracts or employ competent supervisors

who will personally supervise performance of the contracts. They may not assign or sublet their contracts without approval of the distribution and traffic manager. They may employ assistants at their own expense. Assistants so employed must meet the minimum requirements shown in paragraph (c) of this section.

[26 F.R. 11636, Dec. 6, 1961, as amended at 29 F.R. 6539, May 20, 1964; 30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 525.3 Operation.

(a) Postal services provided. Contract motor vehicle contractors and their assistants must receive and dispatch mail in accordance with regulations stated for mail messengers. See § 522.3 (a).

(b) Instruction for contractors. Postmasters shail instruct contract motor vehicle contractors as to service requirements in accordance with instructions contained in advertisements.

(c) Changes in service. (1) Extension. The transportation requirements and procurement officer will issue orders for extension of contract motor vehicle service.

(2) Reduction. Postmasters shall report promptly to the transportation requirements and procurement officer when contract motor vehicle requirements are reduced, so that a lower rate may be negotiated.

(d) Irregularities-(1) Observation of service. See § 522.3 (d) (1).

(2) Record of irregularities. See § 522.3(d) (2).

(3) Assessing fines. See 8522.3(d)

(3).

(4) Investigation of complaints. See § 522.3 (d) (4).

[26 F.R. 11636, Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 525.4 Protection of mail.

(a) Contract motor vehicle contractors and their employees must protect the mail in the manner stated in § 522.15. Contractors and sureties may be held financially liable for loss or damage to mail in their custody.

(b) Contractor shall provide vehicles as required by the contract, the bodies of which must be fully enclosed, waterproof, equipped with locking devices such as key or combination locks, and kept locked enroute between exchange points. [28 F.R. 6453, June 22, 1963. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 525.5 Termination.

(a) The director, transportation division, after approval of the Highway Transportation Branch, Bureau of Transportation and International Services, may annul any contract motor vehicle contract for failure by the contractor or any of his employees to perform service or to furnish equipment in accordance with provisions of the advertisement, or for reasons stated in § 521.3(g) (2).

(b) The transportation requirements and procurement officer may discontinue the service under a contract motor vehicle contract whenever the public interest requires discontinuance, by allowing, as full indemnity to the contractor, as extra pay one-twelfth of the per annum rate, unless the contract has been terminated for cause.

[26 F.R. 11636, Dec. 6, 1961, as amended at 29 F.R. 6539, May 30, 1964. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 525.6 Payments.

(a) Certification. Form 2640, "Postmasters Certification of Mail Messenger Service Performed," will be used by postmasters or other designated installation heads to certify performance of contract motor vehicle service.

(b) Contract payments. Postal data centers must pay contract motor vehicle contractors at the close of each accounting period upon certification that service has been performed. Payment may not be made without an order awarding or renewing contract.

(c) Readjustment of compensation. See Part 526 of this chapter.

[28 F.R. 6453, June 22, 1963, as amended at 30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 525.7 Screening contractors, subcontractors, and certain employees.