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(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:

(a) Route.

(b) Trip Number.

(c) Date.

(d) Time.

(e) Place.

(f) Weather conditions.

(g) Injuries.

(h) Damages.

(i) Other vehicles or object involved. (j) Any other pertinent information.

86--085-68-37

(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]

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Records and reports.

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 service.

collection

(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 faithfu! 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 across the territory of the United 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) Qualifications. See § 521.3 (e) (7) (ii). (ii) Persons ineligible. See § 521.3 (c) (2) (i) (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

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525.6

525.7

(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]

Payments.

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.

(a) Authorization. Transportation of mail by contract motor vehicles may be authorized in cities, under formal contract with bond.

(b) Advertisements. Contract motor vehicle service is advertised the same as star routes on Form 5435, "Advertisement for Mail Service." See § 521.3 (c) (1).

(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

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(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 shall 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 issue officer will 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

§ 522.3(d) (2).

irregularities. See

(3) Assessing fines. See 522.3(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]

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(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. See § 521.9.

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

Sec.

PART 526-CONTRACT PAY ADJUSTMENTS

526.1 Eligibility for adjustment. 526.2 Requests for adjustment. 526.3 Comparative cost statement and operating data.

AUTHORITY: The provisions of this Part 526 issued under 5 U.S.C. 301, 39 U.S.C. 501, 6423.

§ 526.1

Eligibility for adjustment.

The laws authorizing pay adjustments provide that the compensation of a contractor may be readjusted with his consent for increased or decreased costs occasioned by changed conditions occurring during the contract term which could not reasonably have been anticipated at the time of contracting or renewing. Only regular contractors or subcontractors are eligible for consideration (star, T-route, water, mail messenger, contract motor vehicle, and highway post office).

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

§ 526.2 Requests for adjustment.

The written request must be by the contractor or subcontractor hereafter stated as the requester. It is unlawful for a Government official to encourage such claim. The postmaster shall forward all requests to the distribution and traffic manager.

[26 F.R. 12218, Dec. 21, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 526.3 Comparative cost statement and operating data.

(a) Furnishing forms. When the director, transportation division, receives a readjustment request, either through a postmaster or directly from a contractor or subcontractor, he shall distribute Form 5478, "Comparatice Cost Statement and Operating Data, Contract Services," under cover of Form 5478-A, "Transmittal Letter and Instructions for Completing Form 5478," as follows:

(1) For routes under postmaster's supervision. The supervising postmaster shall be furnished five copies of Form 5478, and one copy of Form 5478-A addressed to the contractor or subcontractor. Transmit forms to postmaster by Form 13, Routing Slip, calling his attention to procedural instructions in Paragraph (b) of this section.

(2) For routes not under postmaster's supervision. When the verification or comments of a postmaster are desired, the postmaster shall be furnished five copies of Form 5478, and one copy of Form 5478-A addressed to the contractor or subcontractor. Transmit forms to postmaster by Form 13, calling his attention to procedural instructions in paragraph (b) of this section; otherwise, the contractor or subcontractor will be furnished directly with three copies of Form 5478 under cover of Form 5478-A.

(b) Completing forms. (1) When the postmaster receives Forms 5478 and 5478-A, he shall deliver two Forms 5478 and the Form 5478-A to the requester. He shall retain two Forms 5478 and independently complete the postmaster section of the forms.

(2) When the requester returns Form 5478, the postmaster shall review the form with him for reasonableness, accuracy, and completeness. The postmaster shall point out any obvious errors or discrepancies, and suggest correction; but shall not suggest increasing the amounts claimed.

(3) The postmaster shall compare the information independently collected as instructed in subparagraph (1) of this paragraph. If substantially in agreement, he shall transcribe the information in the Postmasters' Statement to the requester's completed form and shall sign and forward the form to the distribution and traffic manager. The postmaster shall retain a copy of the form showing his comments and statements.

(4) If the postmaster and the requester disagree, the postmaster shall sign one of the forms completed by him and forward it with the requester's Form 5478 to the distribution and traffic manager.

(c) Highway post office readjustments. The processing of HPO readjustments will be handled directly between distribution and traffic managers and contractors or subcontractors. Form 5478 for this service need not have the Postmasters' Statement completed.

[26 F.R. 11637, Dec. 6, 1961, as amended at 29 F.R. 6539, May 20, 1964. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

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