authorized. Such postmaster will be responsible for issuing the keys to the contractors and recovering the keys when no longer needed for collections. See subparagraph (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.

(iii) 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 on which box delivery is required.

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

(c) Has filed request with the postmaster to have mail delivered by carrier and has completed Form 5431.

(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, unless contract requires that the 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).

(viii) Mark up and forward mail for patrons who have filed change of address cards. Notify carriers who maintain rosters of patrons served of the changes. 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. (i) See § 159.3 and § 159.4 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.

(c) Sale of stamps and stamp supplies. If the contract requires the 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 patrons who receive mail through other offices on the route, the carrier will replenish his fixed credit at those offices in amounts representing sales made by him to the patrons served through these offices.

[26 F.R. 11625, Dec. 6, 1961, as amended at 28 F.R. 6451, June 22, 1963; 30 F.R. 9064, July 20, 1965; 31 F.R. 12637, Sept. 27, 1966. Redesignated at 31 F.R. 15351, Dec. 8, 1966] § 521.3

Contracts.

Contracts are

(a) Contract terms. 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, the contract terms are staggered for the different States within the 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.

Advertise

(c) Obtaining bids-(1) ments-(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.

The

(b) Distances by shortest public roads between points named on new routes. Distances stated in advertisements are believed to be substantially correct. 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.

(e) Furnish prospective bidders a 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 persons who are members of the same household or dependent upon the other for support.

(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, it must be stated whether she is married or single.

(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, 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) Where 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 this bid bond is that the bidder will execute a contract with good and sufficient sureties 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 ac

companied 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) The amount of bond required with the bid is stated in the advertisement. (g) For list of surety companies, approved by the Treasury Department, acceptable on bonds and contracts, see latest Treasury Department notice in the FEDERAL REGISTER.

(3) Instructions to bidders. Postmasters must:

(i) Caution prospective bidders that their proposals must be completed and properly executed, include the required bonds, and must be mailed to reach the distribution and traffic manager within the time limit for the receipt of bids as shown in the advertisements.

(ii) Point out to bidders the instructions attached to the advertisements and on the proposal forms.

(iii) Suggest that bidders contact the proper transportation requirements and procurement officer to obtain definite information regarding local conditions and services required.

(iv) Point out to prospective bidders the legal residence requirements. See Part 526 of this chapter.

(v) "Caution bidders not to submit bids with the expectation of having their pay readjusted if awarded a contract, as no increase will be allowed except for changed conditions as provided by law." See § 521.3(h) (3).

(vi) Advise bidders that no claim for additional pay can be allowed which is based on alleged mistakes or misapprehensions as to service requirements.

(vii) Inform prospective bidders not to permit the use of their names unless they intend to carry the mail or supervise the service in person. Every bidder must sign a statement that his bid is made in good faith and with the intention of performing service if it is accepted.

(viii) Point out to bidders and individuals sureties the obligation under the bid bond. See subdivision (i)(a) of subparagraph (2) of this paragraph.

(ix) Suggest to bidders that if they plan to obtain corporate bid bond

through a local agent, they make sure the agent has authority from the surety company to write this type of bond.

(4) Restriction on postmaster participation. Postmasters are official agents of the Post Office Department. They are liable to dismissal from office for:

(i) Acting as agents of contractors, subcontractors, or bidders, with or without compensation, in any negotiations relating to mail service.

(ii) Divulging the amount of any proposal which they have certified.

(5) Obtaining proposal forms. Proposal forms may be obtained from:

(i) Transportation requirements and procurement officer.

(ii) Postmasters at offices where advertisements are posted.

Similar forms, approved by the Department, are furnished by surety companies and distributed through local agents and postmasters directly to contractors and bidders.

(6) Submitting bids. Bids must be submitted as follows:

(i) Each proposal must be sent in a sealed envelope addressed:

Distribution and Traffic Manager, Post Office Department,

---

(City)

(City)

(State)

and endorsed Mail Proposal, Route from, to

(City)

(State)

(ii) Bids must be mailed in time to reach the distribution and traffic manager at the address and within the time limit specified in the advertisement. Bids received after the time limit specified in the advertisement will not be considered unless they are received before the award of contract is made and it is determined that their failure to arrive on time was due solely to delay in the mail for which the bidder was not responsible.

(iii) If bond is to be executed by a surety company, the proposal should be properly prepared, other than the bond, and transmitted directly to the bonding company in ample time to have it completed and filed in the office of the distribution and traffic manager within the time limit stated in the advertisement.

(iv) When bond is to be executed by a surety company, the certificate as to bidder may be executed prior to the completion of the bond. (See certificate and note on back of proposal, Form 5468 "Star or Water Route Bid and Bond.")

(7) Time limitations. The following time limitations apply:

(i) No withdrawal of a bid will be allowed unless notice of withdrawal is received in the office of the director, transportation division, at least 24 hours before the expiration of the time limit stated in the advertisement.

(ii) The Post Office Department may award a contract at any time within 60 days after the date stated in the advertisement as the closing date for the receipt of bids. A contract may be awarded during an additional 60-day period on written consent of the bidder and his sureties at their bid price.

(d) Award of contracts—(1) Requirements for award. Contracts are awarded to the lowest responsible bidder who tenders sufficient guaranties for celerity, certainty, and security in the faithful performance of service in accordance with the terms of the advertisement. The Postmaster General shall not be bound to consider the bid of any person who has willfully or negligently failed to comply with the terms of a former contract.

(2) Execution of contract. The accepted bidder will be required to execute a contract with good and sufficient sureties satisfactory to the Postmaster General. These sureties can be the same as those furnished on the bid bond. (3) Qualifications of sureties. Although individual sureties on a contract are not required to be owners of real estate, they must be responsible persons and competent to perform the service required by the contract if called on to do so.

(4) Obligation of sureties on contract. Sureties on the contract are, in effect, co-contractors, and in event of default or removal of contractor, are responsible for continued operation of the service. They may also be called on to take over operation of the route in the event of death of the contractor. See § 521.3 (i) (4) (iv).

(5) Filing contract. The successful bidder must execute and file his contract with the transportation requirements and procurement officer within 60 days from the date of acceptance of bid.

(6) Reservations. The Postmaster General reserves the right to:

(i) Reject all bids on any route whenever the interest of the service requires.

(ii) Rescind the acceptance of a proposal at any time before the signing of the formal contract by a representative of the United States, without allowing indemnity.

(iii) Suspend the award of a contract for a period not exceeding 60 days after the date stated in the advertisement as the closing date for receipt of bids and allow a corresponding extension of time for the execution of the contract. It is not always possible to award contracts to be effective on the dates specified in the advertisements.

(iv) Reject bids accompanied by bonds on which there appears as surety the name of a person who is not responsible or who is barred from bidding for any reason.

(v) Disregard the bids of those persons who have not submitted proposals in good faith and do not intend to perform service in accordance with the terms of the advertisement.

(7) Tie bids. When the lowest acceptable bids are at the same rate, preference will be given to the present contractor if his is one of the tie bids. Otherwise, the selection will be made by lot.

(8) Certification. The contractor must certify that he has not employed any person to solicit or secure the contract upon any agreement for a commission, percentage, brokerage, or contingent fees. He must agree not to discriminate against any employee or applicant for employment because of race, color, religion, or national origin.

(9) Oath of contractor. A contractor shall take the required oath when executing his contract.

(e) Contractor's responsibilities—(1) For providing equipment and maintaining. (i) The contractor must furnish adequate and suitable motor vehicles or other equipment necessary to carry the mail.

(ii) Unless otherwise specified, motor vehicles must be used. When road or weather prevent their use, other means of conveyance must be furnished.

(iii) Contracts for certain routes specify the size or number, or both size and number, of vehicles required. Contractors on such routes cannot be required to provide equipment and service in excess of that specified.

(iv) Contractors must maintain their vehicles in a safe and dependable condition and must keep them clean and tidy.

(v) If a truck is used to carry the mail, the director, transportation division, shall require the contractor to provide a truck, the body of which must be fully inclosed, waterproof, equipped with secure locking devices, such as key or

66-086-67-35

combination locks, and kept locked en route between offices.

(2) For performing service. (i) Contractors must perform service on all scheduled days including holidays, unless otherwise specified in contracts.

(ii) The contractor must serve regularly post offices in operation on the date of the advertisement. Also, he must serve regularly post offices established after the date of the advertisement, as well as railroad stations and junction points, which may be included for supply on his routes, without additional compensation if there is no additional travel.

(iii) Contractors must agree in their contracts to deductions from their pay for all regularly authorized service not performed. See paragraph (g)(1) of this section.

on a

(iv) Contractors must not carry mail railroad or electric car except as directed by the Bureau of Transportation.

(3) For giving preference to mail. (i) Contractors must transport the whole of the mail on each scheduled trip during the term of the contract unless otherwise specified. Where a contract specifies only certain classes of mail to be transported, the term the whole of the mail means all mail of the classes specified.

(ii) Star route contractors and carriers may transport passengers, freight, and express so long as it does not interfere with the transportation of the mail, provided all applicable Federal and State laws and regulations are complied with.

(iii) When sent as mail, packages must be carried as such and no charge shall be made by the carrier for transporting them.

(iv) Where permitted by law, the contractor may transport intoxicating liquors outside the mail if carrying them does not interfere with the transportation of the mail.

(v) Contractors and their drivers are prohibited from picking up hitchhikers while transporting the mail.

(4) For maintaining schedules. Contractors and carriers must:

(1)

(a) Carry the mail according to the schedule of departures and arrivals and within the running time stated in the advertisement under which the contract is made, unless the schedule is altered by authority of the transportation requirements and procurement officer. If the schedule is altered by a proper order, they must adhere to the altered schedule.