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.

Con

(e) Oaths. See § 521.3 (d) (9). (f) Employment of assistants. tract 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. 6589, 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 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 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 require

[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 Redesignated 29 F.R. 6539, May 30, 1964. 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

§ 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

AUTHORITY: The provisions of this Part 531 issued under 5 U.S.C. 301, 39 U.S.C. 501, 505.

SOURCE: The provisions of this Part 531 appear at 30 F.R. 10135, Aug. 14, 1965, unless otherwise noted. Redesignated at 31 FR. 15351, Dec. 8, 1966.

§ 531.1 Applicability.

These rules and regulations apply to air carriers engaged in transporting airmail and air parcel post in interstate air transportation.

§ 531.2 Definitions.

(a) Air carrier. A citizen or company of the United States authorized by the Civil Aeronautics Board to engage in interstate air transportation.

(b) Interstate air transportation. The carriage of mail by aircraft between a place in any State of the United States, or the District of Columbia, and a place in any other State of the United States, or District of Columbia; or between places in the same State of the United States; or between places in the same territory or possession of the United States, or District of Columbia; or between places in any State of the United States, or District of Columbia, and a place in Puerto Rico or U.S. Virgin Islands or terminal points in Canada; or between or within Puerto Rico and the U.S. Virgin Islands.

(c) Mail. United States or foreign transit airmail.

ments and related coding on pouch labels.

(b) For giving mail priority. Air carriers are required to give the following priority to mail:

(1) From each point served, the normal mail load for each trip must be given priority of transportation over all other traffic on each trip designated for transportation of mail.

(2) The normal mail load for each trip is determined, at the option of the air carrier, for each day of the week on (i) basis of the mail tendered to that trip on the same day of the week for the 5 previous weeks or (ii) basis of the weight of mail tendered to the trip on Tuesday, Wednesday, Thursday, and Friday of the preceding week. When a holiday occurs on one of those days, substitute the same day of the second previous week. In either method of computing the average, exclude mail tendered under abnormal conditions. When an air carrier elects to use one of the two methods it must continue to use the selected method on Form 2760, Air Carrier's Reply-Refusal/Removal of Airmail.

(3) No part of the mail load, either local boarding or through mail, will be displaced when a trip requires additional fuel.

(4) Mail in excess of normal mail load must be given priority over all other traffic except confirmed revenue passengers and their baggage. Mail aboard a plane must not be removed to accommodate local boarding passengers or extra fuel.

(5) Intra-Alaska air carriers must provide the same priority for normal mail flow as any certificated air carrier. When it is not possible for an air carrier to move all available mail above normal out of gateway cities because of unusual heavy local mailings or peak volumes of mail received by boat or truck, the priority of movement is further defined in this order-airmail, first-class, newspapers, perishable parcels, and then bulk mail. Subsequent trips of a carrier will continue this priority of movement until the peak volume is transported.

(6) In loading, unloading, transferring mail to connecting planes, and delivering mail to the designated postal representative, mail must be given preference over all other cargo.

(c) For protecting mail. (1) Air carriers are held strictly responsible and accountable for mail in their custody. Mail must not be left exposed on trucks

or otherwise subjected to depredation or weather. In transporting mail between point of exchange with the post office and aircraft ramp positions, carriers must provide adequate and suitable vehicles that will (i) prevent mail from being lost or dropped en route and (ii) protect mail from depredation and weather. Take every precaution to protect mail from fire. Mail handlers must be identified by badges or distinguishing caps or clothing or must be prepared to exhibit their airline identification cards on request of postal employees concerned.

(2) When an air carrier discovers a pouch damaged so that loss or depredation could result, the air carrier will turn in the pouch to the first possible postal unit for repouching and redispatch. Form 2734, “Airmail Exception Record," must accompany the damaged pouch to the postal unit.

(d) For cooperating with postal inspectors. Postal inspectors are special representatives of the Postmaster General. All employees of air carriers engaged in transportation of mail are required to cooperate with and assist inspectors in performing their duties which may include opening pouches and sacks and examining mail therein.

(e) For providing quarters-(1) At air stops. When requested to do so by the Department, air carriers must furnish adequate and suitable quarters at air stops as necessary for the receipt, dispatch, distribution, and transfer of mail, unless and until otherwise provided by the Department.

(2) Location of quarters. Quarters must be located to provide expeditious handling of mail to and from planes and conveniently accessible to mail-carrying vehicles.

(3) Requests for changes in quarters. Requests by air carriers or officials of the postal service for changes in existing quarters or establishment of new quarters must be made through the transportation division involved.

(f) For obtaining routing from postal unit (1) Interrupted transportation. Any carrier in possession of mail on which he does not have proper routing knowledge will immediately request the necessary information from the local postal unit.

(2) Overload situations. When all available mail cannot be transported on an intended flight, the air carrier with

the overload situation must promptly inform postal personnel at the airport mail facility or air stop post office and obtain instructions concerning priority to be given in loading mail that can be accommodated. Anticipate potential overload situation as much in advance of flight time as possible. Off-loading of mail already on board in order to carry mail for destinations of greater postal advantage will not be required if this would entail unreasonable delay in departure of the flight.

(g) For preparing and submitting schedules (1) Preparation. Air carriers shall prepare schedules as follows: (i) Arrange schedules north to south and east to west, with flights listed in chronological order left to right.

(ii) Show on related schedules for each route all restrictions on the transportation of mail.

(2) Submission. (i) Air carriers shall submit with proposed new schedules a brief explanatory letter or cover sheet detailing proposed changes.

(ii) Copies of changes to existing schedules must be filed with the Post Office Department, Air Transportation Branch, Bureau of Transportation and International Services, Washington, D.C. 20260, not less than 10 days prior to effective date. The date of filing will be the date of receipt by the Air Transportation Branch.

(iii) Air carriers shall distribute copies of proposed new schedules or changes to existing schedules as follows: (a) Three copies to Air Transportation Branch.

(b) One copy to transportation division in each region concerned.

(c) States-Alaska and Intra-Alaska air carriers must send one copy to the Director, Transportation Division, Post Office Department, Post Office Box 9000, Seattle, Washington 98109.

The

(3) Designation of service. transportation division will advise the Air Transportation Branch of local service carrier flights that are not needed for the transportation of mail. The Air Transportation Branch will notify the air carriers of flights designated for transportation of the mail, by publishing Departmental schedules.

through the Regional Director, Post Office Department, Seattle, Washington 98124.

[30 F.R. 10135, Aug. 14, 1965, as amended at 31 F.R. 9643, July 16, 1966; 31 F.R. 13794, Oct. 27, 1966. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 531.4 Flight operations.

(a) Scheduled operations—(1) Maintaining schedules. Air carriers will operate designated flights as shown in filed schedules except where prevented from doing so by weather or other causes beyond their control.

resumed

(2) Off schedule operations. In the event of an operation other than as shown by published schedules, the carrier will be responsible for notifying all on-line postal units as soon as possible, except that advice need not be given of delays of less than 30 minutes. sections, (b) Originating flights, and delayed operations. Delayed scheduled trips may operate with available mail from the initial terminal or intermediate points. When a scheduled trip has been canceled at the initial terminal or at some intermediate point, a section may be originated at any intermediate point on the route.

(c) Omissions of service. If a scheduled stop will not be made by a trip, the air carrier must immediately notify the local postal representative. If service is to be suspended for 1 week or more, the air carrier must immediately notify the Air Transportation Branch, Bureau of Transportation and International Services, Washington, D.C., 20260; the directors, transportation divisions, in the regions concerned; and the postal units concerned. The same offices must be notified when service is to be resumed.

(d) Emergency trips and extra sections. Emergency trips and extra sections operated by the air carrier may be used for transportation of mail. It may be placed on the plane at an unscheduled stop when offered for dispatch by the local postal representative, except that mail will not be accepted if the air carrier is not authorized to serve that city.

(e) Holding orders. In unusual situations, the Domestic Transportation Division, Bureau of Transportation and International Services, may require the holding of planes at junction points for the connection of mail. If any air carrier desires to take exception to a holding order, a complete statement giving the particulars will be submitted by the air