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§ 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

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(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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Payments.

(g) Payments—(1)

§ 521.3 (h) (1).

(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.

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525.6 525.7

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 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 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 irregularities. See § 522.3 (d) (2).

(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]

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§ 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 5473, 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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(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.

§ 531.3 Air carriers' responsibilities.

(a) For transporting mail. Air carriers are required to transport and transfer mail as ordered on dispatch documents 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.

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