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(a) Definition. Star route service is the means used by the Post Office Department for intercity highway transportation of mail. Routes are operated under formal contracts, awarded after competitive bidding, and may provide box delivery, collection, and other services normally furnished by rural carriers.

(b) Head of route. The term "head of a route" means the first post office referred to in the statement of service. It may be the initial point originally named or one later stated as a result of change in the route. The office from which a carrier starts his trip is not necessarily the head of a route.

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(a) Exchange of mail—(1) At post offices. (i) The carrier must exchange mail at each post office on the route in accordance with the terms of the contract and any subsequent orders changing the service.

(11) Where tailgate exchange at a loading platform cannot be made at an intermediate post office and the carrier cannot drive his vehicle near the door of the post office, the postmaster must arrange to take the mail. A carrier must not leave his vehicle containing mail unprotected. In no case shall mail be thrown on the ground.

(iii) All intermediate post offices on star routes must be supplied by carriers on both outward and inward trips unless otherwise specified. Directors, transportation divisions, may change the frequency of supply to intermediate offices, without issuance of formal orders on Form 5440-C, Contract Route Service Order, provided distances as shown in the statement of service are not affected.

(iv) Where no time is specified at intermediate offices, mail should be exchanged within 10 minutes. Directors, transportation divisions, are authorized to vary from this standard whenever service conditions require.

(v) Except when space is available at a loading platform where tailgate ex

change may be made, a contractor or carrier is required to deliver mail into and take mail from the post office at each end of his route.

(vi) Employees of postal installations served by star routes may be required to load or unload contractors' vehicles or to assist contractors in loading and unloading mail, when, in the judgment of directors, transportation divisions, it is in the best interests of the Postal Service to do so.

(2) Through lobbies or lockers of post offices. (i) Mail may be exchanged, when authorized, through the lobby of a post office when no one is on duty. For this purpose the contractor will be provided a key to the lobby. A lobby exchange can be authorized only where the screen work extends to the ceiling; all doors, windows, and wickets connecting the lobby with the working portion of the post office are securely locked; and police protection is adequate. If any doubt exists as to the propriety of a lobby exchange, secure approval of the postal inspector in charge.

(ii) Exchanges may also be made through lockers when approved by the postal service officer, or the director, transportation division, and the postal inspector in charge. Locks and keys for lockers may be provided by either the postmaster or the contractor.

(iii) Postmasters shall obtain a signed receipt for each key furnished to star route contractors or carriers for use in exchanging mail through the lobby or locker of the post office. Reclaim the key and surrender the receipt when key is no longer needed. When old keys are recovered or new ones issued, notify the designated administrative postmaster of the route, who will maintain a current record of all outstanding keys.

(iv) Keys furnished to star route contractors or carriers must be protected against theft at all times. Do not allow examination of the key or its possession by an unauthorized person. Where feasible, keys should not be retained by drivers between trips, but should be turned in to the headout installation for safekeeping.

(v) Star route contractors or carriers must not have access to rotary, LA, SR series padlock, street letterbox (except METRO series-see subparagraph (4) of this paragraph), or post office workroom keys.

(3) At railroad stations. (1) Where a star route terminal is at a railroad station at which no agent is on duty, the carrier may be required to exchange mail with trains, unless locker service is provided. Where catcher service is provided, the carrier may be required to hang pouches and take charge of mail dispatched from trains.

(ii) Where a railroad agent is on duty and the exchange of mail would impose a hardship on the carrier or delay mail for the star route, the carrier must deliver the mail to, and receive it from, the agent who must make the exchange with the train.

(4) Through collection boxes (collections only). (1) The Director, transportation division, may require star route contractors or carriers on intrasectional routes to make collections from hasp and staple-type collection boxes locked by METRO series padlocks. Generally this type collection will not be required on intersectional star routes because this would dilute their essential purpose of high-speed, over-the-road transport between larger post offices.

(ii) The director, postal operations division, will arrange for and keep record of, METRO padlocks and keys issued for use by star route contractors or carriers who are authorized to make collections from collection boxes. The METRO keys will be issued to the administrative postmaster of the star route on which collections are authorized. Such postmaster will be responsible for issuing the keys to the contractors and recovering the keys when no longer needed for collections. See sub-paragraph (2) (iv) of this paragraph.

(b) Box delivery and collection service (1) Duties of postmasters. Postmasters shall:

(i) Upon request of a patron for box delivery and collection service, complete and furnish patron Form 5431, Star Route Box Patron Notice. If uncertain as to the type of box service required by the contract, ascertain contract requirements from the director, transportation division.

(ii) Arrange mail addressed to patrons served through boxes in the order of delivery by the carrier, unless the contract requires that the carrier arrange his mail in proper order for distribution.

(ill) Make a table and routing case available to the carrier if the contract

requires that he case his mail and instruct him in the distribution and arrangement of mail in proper order for delivery to patrons.

(iv) Deliver to carrier any mail addressed to a patron of his office who: (a) Lives on or near the star route or which box delivery is required.

(b) Has provided suitable box or sack. See § 159.4 of this chapter.

(c) Has completed and filed a Form 5431 with the postmaster.

(v) Instruct carrier as to proper point at which mail is to be delivered.

(vi) Withhold delivery of registered, insured, certified, and COD mail to carrier for delivery. See § 159.3 (b) (4) of this carrier deliver such mail.

(vii) Tie out and place in pouch mail addressed to patrons of his office who reside along road traveled by carrier after serving another post office on the route. This mail is removed from pouch by the postmaster at office last supplied before serving such patrons and handed to carrier for delivery. See § 159.3(b) (4) of this chapter.

Postmasters must not deliver mail to carrier outside of regular lock pouch before it has reached the post office to which it is addressed.

(2) Duties of carriers and patrons. (1) See §§ 159.3 and 159.4 of this chapter for the principal duties of carriers and patrons.

(ii) If the contract requires that the carrier case his mail, he must:

(a) Report to post office in sufficient time to distribute mail in advance of scheduled departure time.

(b) Accept mail addressed to patrons of the route, from the postmaster, and arrange it in order of delivery.

(c) Prepare and maintain a list of the names of the patrons served, arranged in alphabetical order with the box number opposite each name.

(d) Markup and forward mail for patrons on his route who have filed a change of address order and make appropriate entry in the roster book.

(c) Sale of stamps and stamp supplies. If contract requires carrier to sell stamps and stamp supplies, he must:

(1) Carry a stock sufficient to meet the needs of his patrons.

(2) Accept a fixed credit of postage stamp stock. Fixed credit will be provided by the postmaster at the head of the route. Where the carrier serves pa

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(a) Contract terms. Contracts are made for terms of 4 years or for the remainder of a contract term set for the State in which the route is located. To spread the workload, contract terms are staggered for the different States within regions.

(b) Types of contracts. Star routes are classified according to services required as follows:

(1) Serving post offices and performing delivery and collection service to box patrons.

(2) Serving post offices but not performing box delivery and collection service.

(3) Performing box delivery and collection service to box patrons but not serving post offices.

(4) Serving post offices and providing rural delivery features to box patrons.

(5) Providing rural delivery features to patrons but not serving post offices. (6) Handling restricted classes of mail for post offices only.

(7) Handling empty equipment primarily.

(c) Obtaining bids.-(1) Advertisements-(i) Issuance and distribution. When it becomes necessary to advertise for bids for a 4-year contract term or for the remainder of a regular contract term, when less than 4 years, advertisements will be prepared on Form 5435, Advertisement for Mail Service, by the director, transportation division. Advertisements will allow at least 30 days' posting from the date of receipt until the closing date for bids, except in emergencies when the advertisements will contain an explanation for the shorter posting period. Sufficient copies of advertisements will be prepared by the director, transportation division, for distribution to postmasters at post offices named in advertisements, prospective bidders, and other interested persons. Form 5468-5468-A, Star or Water Route Bid and Bond-Work Sheet, is used in submitting bids.

(ii) Distances stated in advertisements. Most advertisements inviting proposals for star route service show the one-way length of the routes and refer to:

(a) Distances traveled by carriers where service is in operation.

(b) Distances by shortest public roads between points named on new routes. Distances stated in advertisements are believed to be substantially correct. The pay will be neither increased nor decreased if the actual distance is greater or less than advertised, provided the points to be supplied are correctly stated.

(iii) Advertising by postmasters. Postmasters must:

(a) Post copies of bulletin advertisements in conspicuous places in the lobbies of their post offices for the periods stated in the advertisements.

(b) Obtain the widest possible publicity, without expense to the Postal Service, to gain the attention of interested persons.

(c) Familiarize themselves with the advertisements and attached instructions, and the services to be performed.

(d) Maintain an ample supply of proposal forms (Form 5468-5468-A) while advertisement is pending. Make immediate request to director, transportation division, for needed forms, telephoning or telegraphing that office when necessary to obtain forms during last few closing days for receipt of bids.

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(e) Furnish prospective bidders copy of the advertisement and bid form on request.

(2) Requirements of bidders-(i) Eligibility. Any person who is at least 21 years of age and who is a citizen of the United States, or has filed a declaration of intention within the past 7 years to become a citizen, may submit a proposal and enter into a contract for carrying the mail, subject to the following restrictions:

(a) No proposal for a contract for star route service shall be considered unless the bidder is a legal resident of one of the counties crossed by the roads over which the mail is to be carried or a legal resident of a county adjoining one through which the mail is to be carried, with this exception: Proposals for carrying mail will be accepted from firms, companies, or corporations actually engaged

in some business other than transportation of mail under a contract within the counties in which individuals are restricted as to residence.

(b) No postmaster, assistant postmaster, clerk employed in any post office, rural carrier, special delivery messenger, or other postal employee, including substitute or temporary, shall be a bidder, contractor, or concerned in a bond or contract for carrying mail on a star route.

(c) No member of the immediate family of a postmaster or assistant postmaster shall be awarded a contract or be a surety on a bond, or be a subcontractor or carrier on a star route; except, that a person who becomes a member of the immediate family of a postmaster or assistant postmaster after being awarded a contract or after being recognized as a subcontractor may continue to perform such contract and is eligible for a renewal contract. "Immediate family," as used in this section, means spouse and other persons related to the postmaster or assistant postmaster by blood who are regular members of the postmaster's or assistant postmaster's household.

(d) No contract for carrying mail will be made with any person who has entered or proposed any combination to prevent the making of any bid for carrying mail or who has agreed, or given or promised any consideration, to induce another person not to bid for such a contract.

(e) No contract will be made with a person known to have been convicted of a crime such as embezzlement, robbery, burglary, larceny, perversion or other notoriously immoral acts; known to have associated with known criminals; or known to have a record of serious moving traffic violations, unless he has since been rehabilitated and has become a responsible citizen.

(f) A married woman may contract or be surety as though she were unmarried where the laws of the State permit. When a woman bids or signs as surety, whether she is married or single must be stated.

(ii) Knowledge of service factors. Bidders should familiarize themselves with: (a) Service to be performed, including mileage and time required.

(b) Estimated weight and volume of mail to be carried and size of vehicle required.

(c) Condition of roads, including toll charges.

(d) Laws and regulations governing the operation of motor vehicles.

(e) Other circumstances affecting the cost of operation, without regard to the prevailing rate of pay or amount of bond specified.

(iii) Bonds. (a) Each proposal must be accompanied by a bond executed by a qualified surety company or by two or more individual sureties, each of whom must own real estate worth at least the face amount of bond required, over and above all debts, judgments, mortgages, executions, and exemptions.

(b) As a part of the bond, the individual sureties must sign a statement showing the amount of real estate owned by them, a brief description of the real estate, its estimated market value, where it is situated, and in what county and State the titles are recorded.

(c) When the laws of the State permit, a husband and wife owning real estate as "tenants by the entireties," are acceptable as one surety provided both execute the bond. Any other two or more persons owning real estate as "joint tenants" are acceptable as one surety, provided all parties concerned execute the bond. In these cases, at least one other qualified surety is necessary.

(d) The obligation under the bid bond is that the bidder will execute a contract with good and sufficient sureties (see paragraph (d) (2) of this section) and that service will be performed according to the contract. If an accepted bidder fails to enter into the prescribed contract or, after having executed a contract, fails to perform service in accordance with the contract, he and his sureties are liable for the amount of the bid bond.

(e) No proposal for the transportation of the mail shall be considered when accompanied by a bond executed on behalf of a surety by or through any organization of mail transportation contractors or an officer or employee of such organization, nor shall any such proposal be considered when a portion of the bond premium, a commission on the bond sale, or any other thing of value accrues to any organization of mail transportation contractors or officer or employee thereof as a result of the execution of the bond.

(f) Amount of bond required with bid is stated in advertisement.

(g) Following is a list of surety companies, and locations of their principal offices, approved by the Treasury Department as acceptable on Federal bonds. However, only a few of these companies underwrite star route bonds. In many cases, local agents for surety companies have been instructed by the surety companies that they have no authority to execute star route bonds although this exception may not be reflected in the agent's general power of attorney.

The Aetna Casualty & Surety Co., Hartford, Conn.

Aetna Insurance Co., Hartford, Conn.
Agricultural Insurance Co.,

N.Y.

Watertown,

Allegheny Mutual Casualty Co., Meadville, Pa.
Allied Insurance Co., Los Angeles, Calif.
Allied Mutual Insurance Co., Des Moines,
Iowa.

Allstate Insurance Co., Skokie, Ill.
American Automobile Insurance Co., San
Francisco, Calif.

American Bonding Co., Los Angeles, Calif.
American Casualty Co., of Reading, Pa.,
Chicago, Ill.

American Credit Indemnity Co., of New York, Baltimore, Md.

American Employers' Insurance Co., Boston, Mass.

American Fidelity Co., Manchester, N.H. American Fire and Casualty Co., Orlando, Fla.

American and Foreign Insurance Co., New York, N.Y.

American General Insurance Co., Houston, Tex.

American Guarantee & Liability Insurance Co., Chicago, Ill.

American Home Assurance Co., New York, N.Y.

American Indemnity Co., Galveston, Tex. American Insurance Co., San Francisco, Calif.

American International Insurance Co., New York, N.Y.

American Manufacturers Mutual Insurance, Co., Chicago, Ill.

American Motorists Insurance Co., Chicago, Ill.

American Mutual Liability Insurance Co., Wakefield, Mass.

American National Fire Insurance Co., New York, N.Y.

American Re-Insurance Co., New York, N.Y. American States Insurance Co., Indianapolis, Ind.

Argonaut Insurance Co., Menlo Park, Calif. Associated Indemnity Corp., San Francisco, Calif.

Atlantic Insurance Co., Dallas, Tex.

Atlantic Mutual Insurance Co., New York, N.Y.

Auto-Owners Insurance Co., Lansing, Mich. Balboa Insurance Co., Los Angeles, Calif. Bankers Multiple Line Insurance Co., Chicago, Ill.

Bankers and Shippers Insurance Co., of New York, New York, N.Y.

Birmingham Fire Insurance Company of Pennsylvania, New York, N.Y.

Boston Old Colony Insurance Co., New York, N.Y.

Buckeye Union Insurance Co., Columbus, Ohio.

Camden Fire Insurance Association, Philadelphia, Pa.

Capitol Indemnity Corp., Madison, Wis.
Cascade Insurance Co., Tacoma, Wash.
Celina Mutual Insurance Co., Celina, Ohio.
Centennial Insurance Co., New York, N.Y.
Century Indemnity Co., New York, N.Y.
Cincinnati Insurance Co., Cincinnati, Ohio.
Charter Oak Fire Insurance Co., Hartford,
Conn.

Citizens Insurance Co. of New Jersey, Hartford, Conn.

Commercial Insurance Co. of Newark, NJ., New York, N.Y.

Commercial Standard Insurance Co., Fort Worth, Tex.

Commercial Union Insurance Co. of America, Boston, Mass.

Connecticut Indemnity Co., Hartford, Conn. Consolidated Insurance Co., Indianapolis, Ind.

Consolidated Mutual Insurance Co., Brooklyn, N.Y.

Continental Casualty Co., Chicago, Ill. Continental Insurance Co., New York, N.Y. Cosmopolitan Mutual Insurance Co., New York, N.Y.

Cumis Insurance Society, Inc., Madison, Wis. Emmco Insurance Co., South Bend, Ind. Empire Fire & Marine Insurance Co., Omaha, Nebr.

Employers Casualty Co., Dallas, Tex. Employers' Fire Insurance Co., Boston, Mass. Employers Mutual Casualty Co., Des Moines, Iowa.

Employers Mutual Liability Insurance Co. of Wisconsin, Wausau, Wis.

Employers Reinsurance Corp., Kansas City, Mo.

Equitable Fire & Marine Insurance Co., Hartford, Conn.

Farmers Elevator Mutual Insurance Co., Des Moines, Iowa

Farmers Mutual Hail Insurance Co. of Iowa, Des Moines, Iowa.

Federal Insurance Co., New York, N.Y. Federated Mutual Implement & Hardware Insurance Co., Owatonna, Minn.

Fidelity & Casualty Co. of New York, New York, N.Y.

Fidelity and Deposit Co. of Maryland, Baltimore, Md.

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