5178. An unsatisfactory explanation or no reply may become the basis for assessing fines against messengers.

(ii) Distribution and traffic managers or regional operations directors may assess fines against messengers in amounts of $1 or more depending on the 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. (i) The transportation requirements and procurement officer will direct investigation of complaints of improper or unsatisfactory service.

(ii) The regional operations director will investigate complaints of irregular handling of advertisements or bids.

[26 F.R. 11632, Dec. 6, 1961, as amended at 27 F.R. 4836, May 23, 1962; 30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966] § 522.4

Protection of mail.

(a) Failure to protect mail. Mail messengers may be held financially liable for loss or damage to mail in their custody. They are also accountable and answerable in fines for failure to:

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

(2) Guard the pouches and other mail in their custody from 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 letter box (other than METRO seriessee § 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.

[26 F.R. 11633, Dec. 6, 1961, as amended at 30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 522.5 Termination of service.

(a) For cause. See § 521.3(g) (3) (x) and (xi).

(b) For improper service. Distribution and traffic managers must try to correct irregularities by cooperating with the postmasters in direct action and the imposition of fines. If this fails, the following steps should be taken, as appropriate:

(1) Consideration should be given to terminating the designation and advertising for another messenger.

(2) If necessary to replace the mail messenger immediately, the transportation requirements and procurement officer 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 requirements and procurement officer. If time is a factor, the report may be made by wire.

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

(2) The transportation requirements and procurement officer 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 transportation requirements and procurement officer must use Form 5440 C-D-E "Contract Route Service Order" in giving notice of discontinuance of service and elimination of expenditure. He should also indicate the substituted service, if any.

(d) By messenger. (1) If a messenger dies, resigns, or abandons the service for any reason, the postmaster shall immediately report the facts to the transportation requirements and procurement officer 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 immediate 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 must ascertain whether he desires 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 transportation requirements and procurement officer may designate a temporary messenger. When the 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.

[26 F.R. 11633, Dec. 6, 1961, as amended at 30 F.R. 10152, Aug. 14, 1965; 30 F.R. 12467 Sept. 30, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 522.6 Payments.

(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 division, each trip certified for payment under this section. (See § 522.3 (b) (3).)

(b) Termination. (1) The postmaster must immediately notify the transportation requirements and procurement officer when the service of a messenger is terminated.

(2) The transportation division must immediately notify the postal data center

(a) Authorization. (1) Highway post. offices are bus-type vehicles operated over designated routes, authorized by the Post Office 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) Services-(1) Location. Highway post offices are set up in areas where highway transportation and 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.

[26 F.R. 11634, Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 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.

The

(2) See § 521.3(c) (2) (i) (e). (b) Agreement of contractors. 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 the 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. The specifications (POD Publication 10) require the use of the latest safety features to give the greatest possible protection to personnel and mail. The required construction 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 the 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 of age. 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).

(ii) Supervision. Drivers must comply with all proper orders and instructions of the foreman 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. The driver must: (a) Comply with the applicable provisions of subparagraph (4) and (5) of this paragraph regarding the operation of the vehicle and the 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. The contractor must place the 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 the protection of the general public and operating personnel as prescribed by applicable State and Federal laws and regulations governing the 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 distribution and traffic manager 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 transportation requirements and procurement officer and the supervising postmaster.

(6) Transporting, transferring, and delivering mail. The contractor must: (i) 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 hand-to-hand exchange of mail between clerks in the door of the vehicle and clerks on duty at the installation. The transportation requirements and procurement officer is expected to make reasonable adjustments in these requirements by agreements with postmasters and contractors to assure on-time 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 must 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 distribution and traffic manager 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 the mail service or to serve the public interest.

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

(f) Forfeitures or contract annulment. See § 521.3(g) (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 § 521.3 (h) (1).

(2) Allowance for detours. See § 521.3 (h) (4).

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

(4) Deductions and fines. See § 521.3 (g) (1) and (2).

(1) Inspection of highway post office vehicles. Vehicles and equipment shall be inspected by officials of the postal service to assure compliance with departmental instructions.

[26 F.R. 11634, Dec. 6, 1961, as amended at 30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 523.3 Reports and certifications.

(a) Recurring reports. See § 521.7(b). (b) Special reports of irregularities. Postmasters and other designated installation heads shall analyze trip reports promptly upon receipt, and shall submit a narrative report to the director, transportation division, when the following irregularities occur:

(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 the driver's failure to report or due to 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.

(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.

(ii) 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:

(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]

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

service.

delivery and 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]