as a convenience to the carriers provided compensation not exceeding pro rata pay is accepted for the facilities furnished. Any deficiency may be provided in another car in the train when necessary and in such case full pay will be made for the standard car authorized.

(2) The Department does not require and will not authorize railway post office equipment longer than the standard lengths specified herein. However, as a convenience to the carriers, and to enable them to obtain revenue from the operation of space which otherwise might be unused, the Department will accept the excess space beyond the standard lengths authorized for the accommodation of lesser storage unit service when needed.

(3) Cars in excess of 60 feet in which a railway post office unit of 60 feet is partitioned from the remainder of the car may be accepted to fulfill an authorization for a railway post office car of 60 feet.

(4) When a railroad company is unable to furnish cars of the standard length authorized for storage car service, the Department may accept cars less than 60 feet in length, inside measurement, provided compensation not exceeding pro rata pay is accepted for the length of the car furnished. The Department may accept storage cars of greater length than the standard, provided compensation not exceeding prorata pay is accepted in accordance with rules and regulations of the Postmaster General.

(c) Modification of authorizations. (1) Authorizations for full railway post office car service and railway post office apartment service shall be subject to modification at any time to provide for new and additional service, discontinuance of service, or reduction in service.

(2) Regular authorizations for storage car service and lesser storage unit service shall not be discontinued or reduced during the calendar month unless discontinuance or reduction in the service is necessitated by service changes. Regular authorization for storage car service and lesser storage unit service shall be subject to modification at any time to provide for new and additional service.

(3) Requests for excess service may be made at any time during the calendar month.

(d) Cancellations. (1) Whenever there is insufficient mail on any day to warrant the operation of a full storage car, the regular authorization may be cancelled by a representative of the Post Office Department at the initial point of the run of the car. Reasonable advance notice of such cancellation shall be given to the railroad company at the initial point of the run of the car to permit the car to be removed from the train.

(2) Authorizations for classes of service other than full storage car service shall not be cancelled during the calendar month.

(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.

[26 F.R. 11625, Dec. 6, 1961, as amended at 28 F.R. 6451, June 22, 1963; 29 F.R. 6536, May 20, 1964. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 521.2 Postal services.

(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 con

tract and any subsequent orders changing the service.

(ii) 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 the 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. Transportation requirements and procurement officers 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. Transportation requirements and procurement officers are authorized to vary from this standard whenever service conditions require.

(v) Except when space is available at a loading platform where tailgate exchange 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 transportation requirements and procurement officers, it is in the best interest 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 property 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 the key is no longer needed. When old keys are recovered or new ones issued, notify the distribution and traffic manager, 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.

(v) Star route contractors or carriers must not have access to rotary, LA, street letter box (other than METRO seriessee subparagraph (4) of this paragraph) or post office workroom keys.

(3) At railroad stations. (i) 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 the 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). (i) The director, transportation division, intrasectional may require star route contractors or carriers on intrasection 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, overthe-road transport between larger post offices.

(ii) The director, local services 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 or postmaster at the head 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 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. (1) 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.

(ƒ) 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