conditions are such that the transportation division designates a specific waiting time more or less than 2 hours.

(3) Where payment for service is on a trip basis, the postmaster shall notify the mail messenger in advance when flights are canceled making service to the airport or heliport unnecessary. The mail messenger must make provisions for receipt of notifications by telephone or other direct means of communication. When so notified, payment for the trip will not be made.

(c) Changes in service—(1) Extension. The postmaster must obtain authorization from the director, transportation division, before extending the service of a mail messenger beyond the limits stated in the advertisements. The transportation division will issue the necessary instructions on Form 5440 C-D-E, Contract Route Service Order.

(2) Reduction. Before making any reduction in service:

(i) Postmasters shall report promptly to the director, transportation division, when requirements are reduced due to curtailment of RPO service, change of location of post office, railroad station, or airport, etc.

(ii) In the event of service changes, postmasters shall not reduce requirements without instructions from transportation division.

(iii) When service is reduced, the transportation division will:

(a) If possible, negotiate a lower rate. (He should request assistance from the postmaster or the postal service officer in this respect.)

(b) If a reasonable lower rate is obtained, restate service and pay on Form 5440 C-D-E.

(c) When a reasonable rate cannot be negotiated, readvertise the route.

(d) Irregularities—(1) Observation of Service. Postal employees shall observe the services performed by mail messengers at railroad stations or other facilities and report any failures or irregularities that come to their attention.

(2) Record of irregularities. (1) The postmaster shall: (a) Keep an accurate record of all delays, omitted trips, and other irregularities, using Form 5177 if delay results in later delivery or missed connections; (b) consult with the messenger concerning the irregularities reported and take any corrective action

possible; (c) report omitted trips when certifying payment on Form 2640, Postmaster's Certification of Mail Messenger Service Performed; (d) immediately issue a brief against the messenger on Form 5178, Notification of Irregularity, for each serious irregularity, unless there is a satisfactory explanation.

(ii) If action by the postmaster fails to cause the messenger to provide improved service, the postmaster will forward the case to the director, transportation division.

(3) Assessing fines. (1) Messengers shall be allowed a reasonable time to explain irregularities briefed on Form 5178. An unsatisfactory explanation or no reply may become the basis for assessing fines against messengers.

(ii) Directors, transportation divisions, or Regional Directors may assess fines of $5 or more against messengers depending on gravity of the irregularity.

(iii) Postal data centers will deduct fines from payment due messengers, upon receipt of Form 5440-C signed by the director, transportation division, or the Regional Director.

(4) Investigation of complaints. (1) The director, transportation division, will direct investigation of complaints of improper or unsatisfactory service. (See subparagraph (2) (ii) of this paragraph.)

(ii) The Regional Director will investigate complaints of irregular handling of advertisements or bids.

(a) Failure to protect mail. Mail messengers may be held financially liable for loss or damage to mail in their custody. They must not smoke or carry lighted cigars, cigarettes, or pipes in the mail compartment of their vehicles. They are also accountable and answerable in fines for failure to:

(1) Carry the mail in a safe and secure manner.

(2) Guard pouches and other mail in their custody against theft or damage by water or any other source.

(3) Return and deliver the mail into the post office, notifying the postmaster, when for any reason he is unable to make proper dispatch of the mail in his custody (for example, a railway post office's failure to catch a pouch from a crane). The mail messenger must not retain mail in his home.

(b) Access to keys. Mail messengers must not have access to rotary, LA, street letterbox (other than METRO series-see § 522.3 (a) (2) (vi) ) or post office workroom keys, unless they are also postal employees and require the key or keys in the course of their postal duties.

(c) Transporting passengers. If passengers are transported, mail must be carried in a separate compartment so passengers will not have access to the mail.

§ 522.5

Termination of service.

(a) For cause. See § 521.4(d) (3) (x) and (xi).

(b) For improper service. The director, transportation division, must try to correct irregularities by cooperating with the postmaster in direct action and the imposition of fines. If this fails, take the following steps, as appropriate:

(1) Consider terminating the designation and advertising for another messenger.

(2) If necessary to replace the mail messenger immediately, the transportation division must authorize the postmaster to employ the temporary service necessary at a rate not exceeding that at which service on the route was authorized.

(3) If temporary service cannot be obtained at the existing rate, the postmaster must ascertain the lowest rate obtainable and report this, with a statement of necessity, to the transportation division. If time is a factor, report may be made by wire.

(c) For changed service conditions. (1) Service may be rendered unnecessary by changed service conditions (such as discontinuance of a post office, extension of rural or star route service, direct supply by highway post office or railroad truck service). A postmaster shall not discontinue service without appropriate instructions from the director, transportation division.

(2) The director, transportation division, may discontinue the service or require postmasters at fourth-class offices to perform it when he considers such action warranted. (See § 522.2(a) (5).)

(3) The director, transportation division, must use Form 5440 C-D-E in giving notice of discontinuance of service

and elimination of expenditure. He should also indicate substituted service, if any.

(d) By messenger. (1) If a messenger dies, resigns, or abandons the service, the postmaster must immediately report the facts to the director, transportation division, for his action. A messenger may resign at any time by giving written notice 45 days in advance. In justifiable cases, the 45-day notice may be waived. If immediately replacement service is necessary, proceed as in paragraph (b) (2) and (3) of this section.

(2) When a messenger is relieved of his contractual obligations due to being called to military service or is compelled to suspend his services because of illness or other valid reason, the postmaster shall ascertain whether he desires the messenger to resume his duties when possible. The postmaster must advise him that his designation will be continued with the provision that changing conditions during his absence may necessitate its reduction or termination. If the messenger wishes to continue with this understanding, his regular service and pay may be suspended pending his return. During the interim, the director, transportation division, may designate a temporary messenger. When temporary service can be obtained only at a higher rate, it can be authorized if the rate is considered reasonable. It may be necessary to advertise for temporary service during the emergency.

(a) Certification. (1) Postal data centers will pay messengers at the close of each accounting period after performed service is certified by postmaster or director, transportation division.

(2) Postmasters and installation heads designated to certify performance of mail messenger service shall use Form 2640, Postmasters Certification of Mail Messenger Service Performed.

(3) Where payment for mail messenger service is made on a trip basis to airports and heliports, and the messenger is not officially notified in advance of cancellation of a flight, and he reports at the post office to perform the trip, the postmaster or installation head shall include the scheduled trip in his certification on Form 2640. The postmaster or installation head shall report by memorandum to the director, transportation

(a) Authorization. (1) Highway post offices are bus-type vehicles operated over designated routes, authorized by the Department for the acceptance, receipt, distribution, storage, dispatch, and delivery of mail by mobile clerks. All these vehicles are operated by private individuals or companies under contract with the Department.

(2) Government-owned HPO vehicles may be operated experimentally or in emergencies.

(b) Title designation. The title of a route is derived in the same manner as that of a railway post office.

(c) Service.-(1) Location. Highway post offices are set up where highway transportation an en route distribution can appreciably advance mail delivery to postal patrons and afford them expeditious dispatch of their outgoing mail.

(2) Schedules. Highway post office routes operate on fixed schedules which are arranged, whenever possible, to provide early morning receipt and late afternoon dispatch for the post offices along the route.

(3) To intermediate offices. The postmaster to whom the highway post office route is assigned shall issue instructions for exchange of mail with intermediate offices.

(4) Supervision over service. Direct supervision of highway post office service will be assigned to the designated postmasters or installation heads.

§ 523.2 Contracting.

(a) Ineligible bidders. (1) Postal employees and members of their immediate families may not submit bids, hold contracts, or be concerned with bonds for highway post office service.

(2) See § 521.3(c) (2) (i) (e).

(b) Agreement of contractors. The contractor must agree not to discriminate against any employee or applicant for employment because of race, religion, color, or national origin. He will be guided by the provisions contained in Form 5466, Highway Post Office Contract General Provisions.

(c) Award of contracts. Contracts for highway post office service are subject to terms of the advertisement for the service and are awarded to the lowest responsible bidder meeting these terms.

(d) Services required of contractor(1) Providing vehicles. The contractor must furnish the specified number of vehicles, fitted up, maintained, and operated in accordance with the specifications, rules, and regulations prescribed by the Postmaster General. He must also have available sufficient spare vehicles to maintain service while regular vehicles are being serviced or repaired. Specifications (POD Publication 10) require the use of the latest safety features to give the greatest possible protection to personnel and mail. Construction requirements limits distortion to a minimum in the event of a collision. These vehicles shall be equipped with letter and paper distributing tables, pouch racks, overhead paper boxes, letter cases, drawer which may be locked with LA locks, clothes locker, folding lavatory, and drinking water container. A screened metal partition must be installed between the driver's compartment and working area.

(2) Providing drivers. The contractor shall furnish drivers who must comply with the following laws and regulations:

(i) Qualifications. Drivers must be licensed chauffeurs not less than 21 years

old. They must be intelligent, of good character, and physically qualified to perform service. They must not have criminal records involving crimes such as those listed in § 521.3 (c) (2) (i) (e) or traffic records that indicate their driving of motor vehicles would be dangerous.

(ii) Supervision. Drivers must comply with all proper orders and instructions of the foremen of their vehicles that are consistent with safety. Safe operation of the vehicle is the responsibility of the driver.

(iii) Schedule of duty. Drivers' schedules must be arranged to comply with Interstate Commerce Commission safety regulations or Post Office Department regulations requiring sufficient rest periods between trips to assure alert, efficient operation of the vehicles.

(iv) Duties. A driver must:

(a) Comply with applicable provisions of subparagraphs (4) and (5) of this paragraph regarding operation of the vehicle and performance of service.

(b) Transfer mail as provided in subparagraph (6) of this paragraph.

(c) Immediately request instructions from the foreman of the vehicle when the highway on the designated route becomes impassable for any reason.

(v) Liability for accidents. The contractor and driver are responsible for accidents occurring in the operation of the vehicle. The Post Office Department is not responsible for damage caused by contract vehicles operated by contractors or their employees.

(3) Placing vehicles. A contractor must place highway post office vehicles at the terminals of the routes at the designated times.

(4) Operating vehicles. The contractor must:

(i) Furnish evidence of financial ability to cover liability for personal injuries in the amount of $100,000.

(ii) Know and comply with both intrastate and interstate laws governing the operation of motor vehicles.

(iii) Observe all safety measures for protection of the general public and operating personnel as prescribed by applicable State and Federal laws and regulations governing operation of motor vehicles, as well as the safety regulations of the Interstate Commerce Commission or those prescribed by the Post Office Department.

(iv) Observe schedules on all routes according to standard time unless otherwise specified.

(5) Performing service. The contractor must:

(i) Perform service promptly, reliably, safely, and without interruption. If he fails to do so after his attention has been called to delinquencies, the director, transportation division, may impose fines for past failures and order the removal of the driver and vehicle from the route. It may order the employment of temporary service at the expense of the contractor until he provides a satisfactory driver.

(ii) Perform service within the limit of the running time prescribed in the advertisement under which he submitted

bid.

(iii) Comply with all orders and instructions from the director, transportation division and the supervising postmaster.

(6) Transporting, transferring, and delivering mail. The contractor must:

(1) Transport all mail to the cubical or weight capacity of the vehicle, promptly, reliably, and safely. This includes foreign mail in transit across the continental United States or its territories.

(ii) Transfer mail between the vehicle and postal installations when the vehicle can normally be driven to a point within 150 feet of the door or tailboard space of the installation, or place the vehicle at the platform or loading dock of a postal installation to permit handto-hand exchange of mail between clerks in the door of the vehicle and clerks on duty at the installation. The director, transportation division, is expected to make reasonable adjustments in these requirements by agreements with postmasters and contractors to assure ontime operation.

(iii) Deliver mail to each intermediate post office on the route on both outward and inward trips unless otherwise instructed by the supervising postmaster.

(7) Transporting postal officials. The contractor shall transport on regular trips all duly accredited officials of the postal service, traveling on official business, on presentation of their credentials. The contractor or his driver must not make known to any person at any time the presence of a postal inspector in his vehicle or in the vicinity of the route.

(8) Transporting passengers. Contractors are prohibited from carrying passengers in highway post office vehicles, other than postal personnel and contractors' employees. Contractors' employees may be permitted to ride in the driver's compartment when traveling on company business directly related to highway post office service, when such travel does not interfere with safe operation of the vehicle.

(e) Extensions, discontinuances, and changes. The director, transportation division, may:

(1) Order an increase in service on any route.

(2) Change schedule of arrivals and departures in all cases, particularly to make them conform to connections with railroads and other mail routes.

(3) Discontinue, change, or curtail the service, to improve mail service or to serve public interest.

(4) Extend the service on a route to improve mail service.

(f) Forfeitures or contract annulment. See § 521.4(d) (3).

(g) Subcontracts. Contractors for highway post office service must not subcontract the service unless the subcontract is approved by the director, transportation division. Subcontractors must conform to all requirements stated for the contractor himself. Approved subcontractors must perform the same service required of the original contractor.

(h) Payments-(1) For regular service. See § 521.4(e) (1).

(2) Allowance for detours. See § 521.4 (e) (4).

(3) Readjustment of compensation. See part 526 of this chapter.

(4) Deductions for service omitted. See § 521.4 (d) (4).

(5) Fine. When a contractor fails to comply with terms of the contract or when serious irregularities occur, the postmaster in charge of the mobile unit and the director, transportation division, will make every effort, by letter or by personal interview, to correct the situation. If the contractor persists in the irregularities, the transportation division may issue an order on Form 5440-C-D-E imposing a fine.

(6) Record of performance. See § 521.5. (i) Inspection of highway post office vehicles. Vehicles and equipment shall

(1) Gross negligence on the part of the contractor or his employees.

(2) Trips repeatedly not performed or service omitted.

(3) Delays of 30 minutes or more due to driver's failure to report or because of equipment failure. (Delays of less than 30 minutes may be briefed in unusual circumstances.)

(4) Heat and light failures of 30 minutes or more during one round trip. (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.

The postmaster in charge of the mobile unit will review the irregularities reported along with the contractors' comments in section 2 of Form 5500; will conIsult with the contractors and take any corrective action possible. When such corrective action fails to cause the contractor to comply with the terms of the contract, the matter should be referred to the director, transportation division, with the complete file.

(b) Accident reports-(1) Contractor's reports. 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.