Exhibit 10.23
[LOGO] UNITED STATES POSTAL SERVICE Amendment to Transportation
Services Contract
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Part I - Amendment pursuant to
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1a. Contact No. 1b. Amendment No. 1c. Effective Date 1d. Begin Contract Term 1e. End Contract Term
SNET-01-SER 03 11/06/01 11/06/01 08/26/06
Part B
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1f. For Mail service City & State City and State
in or between Southeast Area
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Part II -- Contractor
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2a. Name and address of contractor (street, city, state and zip__) 2b. Social Security Number or Taxpayer ID No.
Evergreen Aviation Ground Logistics Enterprises Inc. (EAGLE)
EVERGREEN EAGLE 93-0876736
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3850 Three Mile Lane 2c. Telephone (Area code and number)
McMinnville, OR 97128-9496 503 472-9361
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Part III - Description of amendment
1. Incorporate Amendment No. 03 into the contract effective November 6, 2001, as Part B. Part B includes Part I
Schedule (attached), price proposal (attached), and Part 2 Clauses of the original contract SNET-01-SER, which
are incorporated by reference. That portion of contract SNET-01-SER which provides terminal handling services
in support of the agreement between the U.S. Postal Service and its aviation supplier becomes Part A.
2. By negotiated agreement, the supplier will provide terminal handling, sortation, and management services for the
Southeast Area Hub and Spoke facility located at the Atlanta Hartsfield International Airport. The sum cost of
the amendment is $6,278,402.55 per annum based on a KKl frequency (309.07 days per year). See the attached price
proposal.
3. The St. Louis Accounting Service Center will effect weekly payments to the supplier in the amount of $20,313.85
for Part B, after full ramp-up of the operation (date to be determined).
4. The USPS and the THS agree that a less-than-full capacity start-up will begin effective November 6, 2001. Pricing
for less-than-full startup will be negotiated and paid upon receipt of separate claims and detailed documentation
from the supplier.
5. Truck schedules have changed since the original Statement of Work was provided tO the THS for pricing
consideration. The USPS and the THS agree that pries adjustments may be due the THS because of truck schedule
changes. Price adjustments resulting from the truck schedule changes shall be based on the increased or decreased
costs incurred by the THS. Nothing herein is intended to supercede the rights and responsibilities of the parties
under the Changes Clause G.3. Changes (PM Clause B-2) (January 1997) (Tailored) of the contract.
Except as provided herein, all terms and conditions of the contract described in Part I remain unchanged and in full
force and effect. The parties hereunder have caused this amendment to be executed, effective the date set forth in
Part III.
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Contractor U.S. Postal Service
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Signature of person authorized to sign and date Signature of contracting officer and date
/s/ Brian Bauer 12/13/01 /s/ Cheryl R. Brazil 12/13/01
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Signature Date Signature Date
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Name and title of person authorized to sign Name and title of contracting officer
Brian Bauer Cheryl R. Brazil
President Purchasing Specialist
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
Part 1. Schedule
Section A. Items and Prices
A.1 Items and Pricing
The purpose of this amendment is to include the operation and management of
terminal handling and sorting services at the Atlanta GA Hub and Spoke (Atlanta
HASP) as Part B of contract SNET-01-SER. The terminal handling/sorting services
supplier will provide all operation and management services.
The contract (Part B) is of the fixed-price type as defined in Section 2.4.6 of
the USPS Purchasing Manual.
Remainder of page intentionally left blank.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
Section B. Statement of Work and Specifications
B.1 Overview
Hub and Spoke (HASP) overview:
The primary purpose of the Atlanta GA Hub and Spoke Project (Atlanta HASP) is to
provide a complete system for the on-time delivery of the classes of mail
processed at the HASP. This amendment is intended to add, as Part B, the
terminal handling and sorting services and management for terminal handling and
sorting requirements for the Atlanta HASP to the existing Tenninal Handling
Supplier (THS) contract. The existing THS contract supports the shared
transportation network between the U.S. Postal Service (USPS) and its aviation
supplier.
The Atlanta HASP facility will be co-located, on or near the Atlanta Hartsfield
International Airport, with the existing terminal handling operation which
supports the shared transportation network between the USPS and its aviation
supplier. The THS will be responsible for providing the terminal handling
services and the facility for mail sorting, mail drayage, loading and unloading
mail or freight, and maintenance and repair of terminal handling equipment as
specified throughout this Statement of Work.
The hub and spoke network encompassed by this amendment will consist of one
central terminal and sorting facility leased by the THS, and surface (truck)
transportation provided by the USPS.
B.2 Background
The basic purpose of this Statement of Work (SOW) is to detail the duties and
responsibilities of the THS as it relates to the Atlanta HASP operation and the
USPS.
The USPS expects 100% on-time dispatch performance and 100% distribution
accuracy for all mail tendered to and processed by the THS. Prospective
contractors should recognize the importance of achieving this goal.
B.3 Supplier Qualifications
The supplier must demonstrate its ability to meet the service requirements as
specified in this contract.
B.4 Scope
a. The THS must provide terminal handling and mail transfer services to
support the USPS HASP transportation network operating through Atlanta
GA.
b. The THS contractor will provide a secure facility for the building and
breaking of containers and the sorting and transfer of mail between
the USPS and the THS. This facility must have sufficient dock doors to
accommodate the transportation outlined in the attachment, Atlanta
HASP Network Arrival/Departure Profile.
c. The THS will direct inbound door assignments for arriving surface
trips and unload and load containers, pallets and loose mailbags and
parcels from and to surface transportation. The THS will be
responsible to open and distribute the contents of all containers
within the network as well as break and sort pallets as determined by
the USPS. The THS will transport the containers and pallets between
the trucks and the sort area, perform the complete sorting cycle, and
prepare containers, pallets and loose mail for outbound shipment,
sequence load trailers according to USPS provided load plans, and
generally manage the HASP facility.
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Amendment No. 03 SNET-01 SER, Part B November 6, 2001
d. At all times, while mail is in the THS's possession, the THS will
ensure the protection of the mail from depredation and weather damage.
e. The THS will be responsible for all data entry required by this
Statement of Work.
B.5 Term and Frequency of Contract
a. Term
The term of the contract shall be for a term beginning on November
6, 2001 and ending at the close of business August 26, 2006. This
agreement will also contain three 1-year renewal options.
b. Frequency
Service will be a KK1 frequency: daily except Mondays and the day
after the following observed holidays -(New Years Day, Independence
Day, Thanksgiving Day, and Christmas Day). Service will be required on
New Years Day, Independence Day, Thanksgiving Day and Christmas Day.
The USPS reserves the right to cancel operations at the discretion of
the COR.
Annual operation will total 309.07 days per year.
The Atlanta HASP will normally operate six (6) days a week to ensure
the timely delivery of all the classes of mail processed. In the
future, the operation may expand to seven (7) days during peak mail
seasons, such as three weeks prior to Christmas or as a contingency
plan for Acts of God or major work disruptions.
B.6 Subcontracting
a. It is preferred that the THS not subcontract any portion of the work
that is the core function as specified in this contract. Core function
is defined as a directly related task relative to the movement of mail
as outlined in this amendment.
b. The Contracting Officer must authorize any core -function
subcontracting activity, either at inception or at any time through
the term of this agreement, in writing.
c. Non-core support functions will not require prior approval form the
Contracting Officer.
B.7 Division of Operational Responsibilities:
The THS will work closely with the USPS to ensure the smooth operation of the
network and the on-time delivery of the mail entrusted to it. Functional
responsibilities will be divided between the USPS and the THS as follows:
a. USPS: The USPS will provide a management group at the HASP to
coordinate, support and oversee the entire network operation and
contract compliance. The USPS will coordinate HASP operations with
operations at other USPS facilities. The senior USPS manager at the
HASP will be the Contracting Officer's Representative (COR) who will
have the authority to enforce the necessary decisions to ensure the
THS meets the daily service goals.
The USPS reserves the right to enter the building at any time, prior
to, during or after operations.
b. Terminal Handling Supplier (THS): The THS will manage and operate the
unloading, sorting and loading of mail arriving at the Atlanta HASP.
The THS will be responsible for all operations and services, including
but not limited to truck dock operations, mail sorting operations, and
security. The THS will
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
manage inbound and outbound break/bulk operations to receive, unload,
sort, load and dispatch mail via trucks or other conveyances. It will
be the responsibility of the THS to furnish the forklifts and pallet
jacks as needed, in support of HASP operations. The contractor must
process all mail units tendered by the USPS in an efficient and
expeditious manner to meet the departure requirements specified in
this contract. The THS will notify the USPS representative on site
when operational failures are expected to occur.
B.8 Operational Requirements
a. Network City Matrix - Surface
1. The USPS will provide surface transportation between the THS
facility and Postal origins and destinations. The THS will assume
the responsibility of loading and unloading postal rolling stock
for all surface transportation at the THS facility.
2. Surface schedules are shown in the attachment, Atlanta HASP
Network Arrival/Departure Profile. Trucks will operate to and
from, but not limited to, the following Postal facilities:
Atlanta HASP Destinations:
The USPS will provide surface transportation between the HASP and surface
destinations that will include, but not be limited to, the following cities:
Northern HASP , MA Roanoke, VA Mobile, AL
DVDaniels, NJ Greensboro, NC Louisville, KY
New Jersey HASP, NJ Raleigh, NC Cincinnati, OH
New Jersey PMPC, NJ AMC Raleigh, NC Indianapolis, IN
New York, NY Charlotte, NC Lansing, MI
GPO NY Columbia, SC St. Paul, MN
Bronx, NY Greenville, SC Busse HUB, IL
Mid-Island, NY Athens, GA St. Louis, MO
Pittsburg, PA Augusta, GA Kansas City, MO
Pittsburg PMPC, PA Macon, GA Omaha, NE
Harrisburg, PA Albany, GA Omaha MCC, NE
Philadelphia, PA Columbus, GA New Orleans, LA
Philadelphia PMPC, PA Birmingham, AL Shreveport, LA
Capital Beltway HASP Birmingham, AL Annex Southwest Area HASP, TX
Richmond, VA Huntsville, AL Dallas, TX
Norfolk, VA Montgomery, AL Denver, CO
Atlanta, GA PDC Jacksonville, FL West Palm Beach, FL
North Metro, GA Orlando, FL Ft. Lauderdale, FL
Atlanta, GA AMC Miami, FL Memphis, TN
Southeast Area HASP Tampa, FL Jackson, MS
Nashville, TN Chattanooga, TN Little Rock, AK
Knoxville, TN
Placards for the above destinations will be provided for the labeling of the
containers prior to loading out bound transportation.
The USPS reserves the right to adjust the city matrix based on needs with
advanced notice provided to THS. Note: A limited start-up matrix may be
implemented beginning with the November 6 operational start-up date. Pricing for
services performed for less than the complete matrix will be subject to mutual
negotiation between the THS and the Contracting Officer.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
During the peak holiday season (month of December) additional transportation may
be used. The THS may also be required to build/break, as well as to load/unload
full airline containers to/from rollerbed trucks.
b. Volume
The THS must be capable of transferring and sorting volumes up to the
total daily capacity of the surface transportation servicing the HASP.
The USPS may presort the loose load mail it tenders to the supplier
c. Facility
1. The THS facility must be located in close proximity to the
Atlanta GA airport, or other site as designated by the USPS.
2. The THS facility will contain working space sufficient to
accommodate build, break, and sort operations, staging and
storage of empty equipment, loading and unloading of surface
vehicles and other related terminal handling services as outlined
in this amendment
d. Schedules
The THS must adhere to the scheduled times listed in the attachment,
Atlanta HASP Network Arrival/Departure Profile, for arrival,
departure, tender, and delivery. Schedules and operations under the
current THS agreement supporting the shared network between USPS and
its aviation supplier shall remain separate and unchanged. The
Delivery Time is the USPS expectation for on-time delivery
performance. The THS will be responsible for timely receiving and
dispatching of all surface transportation at THS facility. Regardless
of the posted schedules, the THS will be expected to service trucks
that arrive late. Operations will begin Sunday 2200 through completion
of operations on Monday A.M. Hours of operation subject to change
based on requirements.
The THS is expected to move all available mail on the first available
transportation, or as directed by the USPS representative.
Note: The THS may be requested to begin earlier with notification by
2000 hours the previous day. Surface schedules provided in the
attachments are subject to change. Notice of permanent changes will be
provided at least five (5) working days in advance. Notification of
changes due to unforeseen circumstances (weather, accidents, etc.)
will be provided as soon as the USPS is able to provide this
information.
e. Special Handling Procedures
1. Hazardous Materials (HAZMAT)
Hazmat and restricted materials are defined as a substance or
material in a quantity and form that may pose a risk to health,
safety, or property in commerce. The THS will comply with Title
14, CFR, Part 139, and Hazardous Materials Regulations (HMR: 49
CFR 100 through 199), and any state, IAA. The THS will establish
and maintain a Hazmat response team and develop and initiate a
continued training program in accordance with Part 139.321, Title
14, CFR.
2. Live Animals
The THS will be required to handle live animals with certain
restrictions and conditions (see Domestic Mail Manual, sections
124.63 and 124.64).
3. Non-transferable Pieces
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
The THS must isolate all non-transferable pieces and those
believed to be potentially hazardous including, but not limited
to, damaged mail, mail without routing information, and tender
them to the Postal Service as directed by the Contracting Officer
or representative.
B.9 Operational Responsibilities
a. THS Provided Operation. The THS must provide the following features
for HASP activities:
1. The THS will provide the necessary personnel to meet and direct
the inbound trucks, unload the containers and loose mail and
transport to the sort area, induction area, or directly to
outbound trucks.
2. The THS operation must provide adequate and suitable office space
for the USPS. This space will include communication tools such as
telephones and fax machines. The THS will bill the USPS directly
for use of this equipment. Office space must allow for set up and
operation of computer equipment. The USPS will provide basic
office furnishings for the Postal employees' offices.
3. The THS operation must provide adequate space to accommodate the
building/breaking for the number of containers specified by the
USPS and working space sufficient to allow for the number of
separations specified in this solicitation. The THS must also
provide adequate space for the staging and/or storage of empty
equipment and space for the staging of inbound and outbound
Postal rolling stock and pallets awaiting dispatch.
4. The THS operation should provide dock doors capable of accepting
53' tractor trailer equipment that is 48" to 52" from the ground
to the bed of the trailer. The number of doors must be adequate
to accommodate the transportation specified in the attachments to
this statement of work.
5. As each truck arrives, the THS will direct door assignments and
open the bay door to allow unloading. Prior to unloading, the THS
will cut the seal on the trailer door and then verify the number
against the PS Form 5398A contained inside the vehicle. The THS
will accurately record the arrival time of the vehicle on the
provided documents.
6. The THS will control movement of vehicles at the HASP.
7. The THS will unload the containers, pallets, loose mailbags and
parcels and transport them to either the sort area induction area
or directly to outbound trucks. The THS will be required to read
either placards or labels on containers, pallets, loose mail bags
or parcels to determine the correct disposition of the
containers, pallets, loose mail bags or parcels. The THS will be
required to perform the sorting as determined by the USPS.
8. The THS will load the sorted containers, dock transfer pallets,
loose mailbags and parcels onto the outbound transportation. Mail
exceeding the capacity of any truck will be reported to the USPS
representative immediately for decision on disposition of this
mail. The USPS may assist the THS with loading/unloading of
trailers.
9. The THS will be required to maintain the separation of mail by
mail type while accomplishing the required sort. The sort area
will be composed of four (4) breakdown areas, one each for letter
trays, flat trays, Priority sacks and First Class sacks and loose
pieces. The THS will be required to perform the distribution in
the breakdown areas which involves reading the strip label or
address on each unit piece and then placing the unit piece in the
appropriate container in accordance with the stated required
distribution.
10. The THS will accurately count and record each unit of mail (by
number, type and time of receipt) immediately after it arrives at
the HASP. The THS will also record the volumes of mail that are
dispatched from the HASP. The USPS reserves the right to monitor
this activity. The THS will maintain a log or other system of
records to accurately record and summarize the number and type of
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
mail units tendered each day. The THS' records are subject to
audit by the USPS. The THS will prepare a written report of the
volume of mail units received, sorted and dispatched. The report
will be submitted to the HASP Manager at the end of the day. The
option to weigh containers will be determined by the USPS at a
later date.
11. Prior to completion of the distribution, all outgoing containers
will have a placard affixed to it by the THS in accordance with
instructions furnished by the USPS. The USPS will furnish the
master copies of the placards and the THS will maintain an
inventory of the required placards. The THS will be responsible
to insure the current placards are in use and all previous
editions destroyed. The containers will then be transported to
the appropriate outbound transportation.
12. When the outbound trucks are ready to depart, according to a set
schedule, the USPS will authorize departure and the THS will
record the appropriate departure load information and any other
data as required by the USPS.
13. The THS will be responsible for ensuring all trucks have secured
shoring straps, or shoring bars, or an approved restraining
device prior to departure. The THS will be responsible for
maintaining a supply of shoring straps at the HASP facility.
Shoring straps will be provided by the USPS.
14. The HASP is a closed loop system. The THS will be required to
count and record rolling stock inbound and outbound to and from
specific origins and destinations to maintain an even exchange.
The THS will complete trailer loads with rolling stock.
15. The THS should be aware that mail delivered under this contract
may need forklifts or pallet jacks to unload and/or load. It will
be the THS' responsibility to furnish the forklifts or pallet
jacks as needed.
16. The contractor must process all mail units tendered by the USPS
in an efficient and expeditious manner to meet the departure
requirements specified in this contract. All mixed containers
(APCs/GPMCs) must be sorted and available for dispatch within one
(1) hour. Direct containers must be available for dispatch within
one-half (1/2) hour. Mail must be worked in the sequence of
scheduled time of arrival.
17. The USPS will be responsible for surface vehicle operations to
and from the THS facility and provide surface operators parking
assignments as well as other instructions relative to operating
at the facility. The USPS will be responsible for determining
extra transportation needs and setting up extra service with
Highway contractors.
18. Based on the highway transportation schedules, at the origin
outstations the USPS will tender the mail to the Highway
contractor each day of operation. The Highway contractor will
load the vehicle at the origin outstation and then transport the
mail to the Atlanta HASP or to an intermediate outstation enroute
to the Atlanta HASP.
19. The THS will stay abreast of changing conditions, including but
not limited to late arriving or departing trucks, mechanical
breakdowns, etc. and make adjustments accordingly.
20. The THS will be responsible for damages to Postal equipment.
21. The THS will be accountable for the items addressed in the USPS
"HASP Cookbook" which will be provided to the THS by the USPS.
22. The USPS reserves the right to require work force adjustments due
to installation of any future mechanized and/or automated mail
handling system or equipment for sorting mail.
23. Additional needs for peak operations (month of December) will be
negotiated separately.
Amendment No. 03 SNET-01-SER, Part B November 6, 2001
B.10 Security
The THS will provide a secure and safe environment for the mail and employees
working in support of this contract in the areas where ramp, sort, and
administrative functions are performed including all buildings, aircraft,
equipment, vehicles, and other property located thereon, on a 24 hour basis, 7
days a week at the THS facility.
a. The THS must provide safe and secure work environment at all times.
b. The THS is expected to maintain and preserve the sanctity of the mail
c. All security procedures are subject to review by the Postal Inspection
Service prior to contract award.
d. Failures to protect and secure the mail may be subject to liquidated
damages. Any time security deficiencies are identified, the
Contracting Officer may unilaterally direct the THS to upgrade the
level of security based on Inspection Service reports.
e. The THS may also be held responsible for claims made against the
Postal Service for items stolen from the mails while in the
contractor's possession. However, if the THS has complied with all
recommended security procedures and has cooperated with Postal
officials, the THS would not be held liable for loss due to theft by
its employees.
f. The THS must report all matters of security breaches and mail
tampering to the local Postal Official in charge immediately upon
identifying an occurrence.
The THS shall establish a system for the identification of individuals
having access to US Mail under the contract. A single system shall be
used to identify both THS and subcontractor employees. At a minimum,
each employee shall be issued a laminated identification badge with a
color photograph of the bearer. Badges shall be of such nature as to
clearly distinguish the bearers from employees who do not have
legitimate access to the US Mail. Accountability controls for badges
shall be developed and such plans must be included in the Security
Design Plan.
All THS employees must store personal effects including but not
limited to coats (weather permitting), purses, backpacks, etc. prior
to accessing the workroom floor or area where mail is processed,
staged, or otherwise located.
g. THS must provide the following:
1. Procedures to protect persons and property at the ramp operation
and facility. These procedures must be outlined in a Security
Design Plan and approved by the Postal Inspection Service prior
to implementation.
2. A level of security that ensures the protection and sanctity of
mail. This includes, but is not limited to, protection from
theft, inclement weather, etc.
3. Compliance with all applicable Federal Aviation Administrations
(FAA), Postal Service, and other agency regulations.
4. Procedures to provide a secure handoff and staging of mail with
the aviation supplier to ensure mail are safeguarded.
5. A system which deters all unauthorized personnel from having
access to the mail.
6. Inspection Service access to the site and facility, at all times
and without prior knowledge of visit.
7. A reporting system that identifies all mail found to be tampered
with or rifled within, and adjacent to, the facility as well as
found in vehicles.
8. A photo identification system for all employees authorized entry
into the building.
Amendment No. 03 SNET-01-SER, Part B November 6, 2001
9. Limited access to the site and facility through one controlled
access point with a maintained record of access for a minimum of
one year. All other doors, except for those used for mail
receipt, delivery, and dispatch, must be equipped with a 110 db
horn which will sound every time the door is open and will
continue to sound as long as the door remains open. The door
should also be equipped with a visual device such as a strobe
light. If the door is not on the workroom floor, it should have a
remote signaling device to notify management the door is being
used.
h. If a non-Postal facility is required, the Postal Service requires that
the offer expressly address the following in an Alternate Security
Design Plan:
1. A burglar alarm system.
2. An investigative office space for exclusive use of the Inspection
Service is required. This space must have a view of the work
floor, a bathroom, direct access to the workroom floor, and a
covert and surreptitious entry. Contractors will supply and
install a burglar alarm system approved by the Inspection Service
for the investigative office space.
3. A criminal investigative system which will facilitate the
collection of evidence for use in Inspection Service
investigations. The system is for exclusive use of Inspection
Service. The contractor will not have access to the system except
for preventive maintenance and required repairs. The system must
provide a clear view of the work floor, loading docks, mail
vehicles, lunch rooms, employee entrance, rest room entrance, and
entrance to any locker rooms. The system should provide a
continuous, uninterrupted and independent viewing of one or more
employees moving through the facility and be fully functioning
and operational for the term of the contract.
The system must provide a clear and detailed view of all
employees on the workroom floor under natural, artificial,
variable, and low light conditions. The system must provide
viewing capability inside trailers at the dock locations. The
system must permit close scrutiny of hand movements of an
employee regardless of the location of obstructions such as
sorting cases, counters, cages, desks, and any automated systems
that may be installed in these facilities. The system must
permit observations and tracking of employee actions from at
least three directions simultaneously and provide for the
recording of events from these observation points. The system
must be designed to provide observation of an individual or a
piece of mail throughout the building. The system must provide
simultaneous, continuous, uninterrupted, and independent viewing
of one or more employees moving rapidly throughout the facility.
The system must be able to operate without any environmental
interference.
4. The fencing around the facility, if required, must be designed or
modified to allow the Inspection Service free and hidden access
to the space provided for the criminal investigative system.
5. Investigative Test System. The contractor will provide a theft
testing system that provides periodic blind testing of the
facility to test the integrity of mail security. One such system
utilized the Electronic Article Surveillance system as used in
retail operations to prevent shoplifting. Another such system
would utilize a Radio Frequency Identification (RFID) tag that
provides individual identification of each test piece. The system
must interface with the observation system. If a Closed Circuit
Television (CCTV) system is used, the test system will
automatically call up the appropriate camera and video recorder
to provide a visual record of events.
B.ll Personnel Screening
a. For the purposes of this contract, the THS or employee of a THS shall
be deemed to have access to mail if that person loads, unloads, drays
or otherwise handles mail containers, sacks, trays, or other mail
sortation equipment, or if said person performs any mail sortation
function either on an airport or at an off airport location.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
b. The THS and all subcontractors shall be responsible for assuring that
all employees hired, who have access to the U.S. Mail, as described
above, must undergo the security screening process prior to having
that access.
c. The THS must supply, for each employee, the following forms and
information to the Security Clearance Unit, U.S. Postal Inspection
Service, 225 N. Humphreys Blvd., 4th Floor, Memphis, TN 38161-0008
(Memphis ISOSG):
1. Certification and Transmittal Cover Letter
2. PS-Form 2181-C, Authorization and Release Background
Investigations
3. PS-Form 2025, Contract Personnel Questionnaire
4. FD-258, Applicant Fingerprint Chart
Note: All forms and further instruction can be obtained by
calling the local Inspection Office in Memphis, TN at (901)
747-7712.
d. The security screening process must include:
1. A Criminal records check. The records check shall be made through
local agencies (city, county, state) where the employee has
resided and/or worked for the past five years.
2. Employment verification. The verification shall identify reasons
for termination or resignation from prior positions during the
five years prior to employment under this contract.
3. Fingerprints. All employees shall be fingerprinted and those
finger print files shall be maintained at a central location at
the facility at which the employee works. The fingerprint chart
must be submitted to the Memphis ISOSG, who shall in turn submit
them to OPM for a check of the FBI national database. A check of
the fingerprint database is essential, and in the event that a
classifiable print cannot be obtained, a second card submission
is allowed. In the event the second card is also unclassifiable,
the employee's clearance shall be rescinded, and they may no
longer have access to the mail.
4. The results from a drug-screening test for prohibited drugs. The
term prohibited drugs means marijuana, cocaine, opiates,
phencyclidine (PCP), amphetamines, or a substance specified in
Schedule 1 or Schedule 2 of the Controlled Substances Act, 21,
U.S.C. 811, 812 unless the drug is being used as authorized by a
legal prescription or other exemption under Federal, State, or
local law. A laboratory certified by the U.S. Department of
Health and Human Services must perform the drug test meeting the
requirements of the Substance Abuse and Mental Health Services
Administration. The prime suppliers and all subcontractors must
maintain the name of the institution conducting the test and a
document indicating if the employee passed or tested positive.
5. Verification of U.S. citizenship or legal work status authorizing
them to work in the United States.
e. The THS shall not hire under this contract any person who:
1. has not met the requirements of the personnel security screening
procedures as outlined in this section.
2. tested positive for a prohibited drug without the authorization
by a legal prescription or other exemption under Federal, state
or local law.
3. is on parole, probation, or suspended sentence for commission of
a felony during the past five years.
4. has been convicted of any criminal violation during the past five
years, for offenses involving dishonesty, moral turpitude, and
illegal financial gain, theft or assault.
5. has been convicted of illegal use, possession, sale or transfer
of controlled substances during the past five years.
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Amendment No. 03 SNET-01-SER , Part B November 6, 2001
6. pending felony criminal charges. An individual will not be
authorized access to US mail until the charge(s) are
satisfactorily resolved.
f. In extreme circumstances where it may be impossible for an employee to
complete the screening process, the supplier must notify the
Contracting Officer of this situation and request an exemption from
the screening process. This request for exemption must be on a case by
case basis. If the Contracting Officer grants an exemption, that
employee will only be allowed access to mail if they are escorted
(supervised) by a previously screened employee, that has successfully
completed the screening procedure, or an employee hired prior to
contract award. At no time can an employee that has not completed the
screening requirements have access to the mail without supervision.
Even in cases where the Contracting Officer approves an exemption, the
employee must still be fingerprinted.
g. All information identified through personnel screening shall be held
by the supplier and made available for review by US Postal Inspectors
upon their request. Upon request for inspection of the personnel
screening records, the THS and subcontractor must identify where the
records are kept and make them available for inspection at the
employees' work location.
h. Employee records must contain, at a minimum, the following
information:
1. Social Security Number
2. Current Address
3. Date of Birth
4. Employee Identification Badge Number
5. Finger Print Card
B.12 Contingency Plans
a. The THS is expected to develop, maintain and update a current
contingency plan for dealing with unscheduled and unexpected events
affecting the expeditious operation of the facility, including
aviation and surface service failures and delays.
b. This plan must be in writing and submitted to the Contracting Officer
for approval.
c. All contractor employees shall be trained to a level of familiarity,
so that implementation of a contingency can be exercised without
unnecessary delay.
d. Unscheduled and unexpected events must include, but not be limited to
the following:
1. Late arriving trucks
2. Early arriving trucks
3 Mail arriving out of normal sequence
4. One late truck
5. Trucks not on-site for dispatch
6. Inclement weather (snow, thunderstorms, etc.) - operating
7. Inclement weather (snow, thunderstorms, etc.) - protection of the
mail
8. Labor actions
9. An inability to complete all loading in time to meet tender
10. Overflow mail
11. Having less MTE (air cargo containers or surface containers) than
required
12. Having damaged and/or non-air worthy air containers
13. Having damaged surface containers
14. Handling or damaged or non-labeled mail
15. Matrix and schedule changes
16. Loose load mail
17. HAZMAT - acceptable and non-acceptable pieces
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
18. Handling and staging of live animals
19. Assisting aviation supplier in positioning containers on and off
dollies
20. Assisting aviation supplier in maintaining open line of
communications
21. Running out of supplies such as placards, bypass tape, etc.
22. Power losses
23. Natural Disasters
24. Equipment breakdowns
B.13 Communication Systems
Ground Equipment Support Communication Devices
The THS must supply a minimum amount of communication devices/radios to be used
in support of the ground handling effort. In addition the THS will supply the
USPS a minimum of one hand held portable radio or communication device with a
charging system. All radios or communication devices must be set on the same
frequency. Maintenance and repair of the devices are the responsibility of the
THS.
B.14 Information Exchange
a. The THS must maintain a dedicated contact person to interface (via
telephone, fax, e-mail, etc) with Postal Officials. The THS must also
attend and participate in operations meetings as scheduled by the
USPS.
b. The THS must provide, upon request of the USPS, special reports,
information, and internal operational documentation involving the
HASP, and is specifically associated with the performance of the
operation. At a minimum, the following reports will be required:
1. Work hours by function
2. Container inventory report
3. Significant personnel issue (i.e., theft, security violations,
etc.)
4. Equipment maintenance schedules and equipment readiness and
status
5. Unscheduled maintenance on equipment
6. Accident reports, personnel or equipment involved
7. Container reception and arrival times
8. Outbound container counts, load completion and dispatch times
9. Record special cargo on board, Hazmat
10. Overflow volumes
USPS: Each outstation will report such information as mail volumes dispatched
and received, overflow volumes, mail arrival times and the number of service
failures (such as late arrivals and missons).
A joint teleconference with representatives of the THS, Postal HASP management
and origin feeders will be held on a regular basis (frequency to be determined).
At a minimum, representatives from the USPS and the THS will meet to discuss the
Atlanta HASP productivity rate and any associated factors once every Postal
Quarter.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
B.15 Safety and Safety Reviews
a. The THS will be responsible for the maintenance and upkeep of all
outside grounds, including landscaping and employee parking areas. THS
will be responsible for snow and ice removal from employee and truck
maneuvering, staging and parking areas.
b. The THS is required to conduct monthly safety reviews to ensure full
compliance with all federal, state, and local agencies (i.e., OSHA,
FAA, DOT, etc.) and provide and maintain a safe working environment.
Appropriate THS management representatives, local USPS
representatives, and invited guests should be in attendance. Any and
all expenses incurred by the supplier resulting from attendance at
these meetings will be the sole responsibility of the supplier.
B.16 Administration
a. THS Administration
1. The THS will provide all necessary administrative work for each
person employed by the THS.
2. The THS will provide all training and necessary training
equipment for all tasks.
3. The THS must make all payroll records available to the USPS upon
request.
b. Operations Meetings
THS will be responsible for attending and participating in operations
meetings with the USPS.
c. Telephones
The THS is responsible for procurement, payment, installation and
servicing of all telephone equipment to be used within the office
spaces at the THS facility. The THS will be responsible for providing
all network communications between themselves and USPS. The THS
must arrange for telephone service to begin immediately upon
effective date of the contract.
d. Removal of Trash, Garbage, etc.
The THS is responsible for all disposals of trash, garbage, hazardous
waste, and other refuse within the facility.
e. Smoking Policy
All Postal facilities are designated as "Smoke Free" environments. The
THS must establish a smoking policy that is in keeping with this
policy. There will, however, be no smoking in the induction area, the
sort area, truck dock areas, ramp areas, near any mail handling
activity, or within 50 feet of any flammable liquid.
Remainder of page intentionally left blank.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
Section C, Delivery or Performance
C.1 On-Time Performance
The Postal Service requires a high level of on-time performance for all mail
tendered to and processed by the THS. The THS must process all mail tendered to
it by the USPS in an efficient and expeditious manner to meet the departure
requirements specified in this contract.
C.2 Performance Standards
a. While the USPS anticipates 100% performance standards, the THS is
expected to dispatch at least 97.5% of all departures at the scheduled
departure times. The THS will be held accountable for delays other
than USPS caused delays (i.e. but not limited to sort operation
completion delays, truck-loading delays).
b. The THS will be expected to maintain no less than 99.9% accuracy level
for Quality of Dispatch. "Quality of Dispatch" is defined as missent
containers or loose pieces placed on departing transportation.
c. The THS will be expected to maintain no less than 99.9% accuracy level
for Quality of Sort. "Quality of Sort" is defined as pieces sorted to
a destination container other than the intended final destination.
d. The USPS will perform Quality Assurance Checks on all operations. The
THS is expected to perform internal quality monitoring.
e. Performance meetings with the THS and USPS will be performed on a
regular schedule (schedule to be determined). Performance Standards
will be waived for the first six (6) weeks of the amendment period.
Section D. Packaging and Marking
This section is not applicable to this contract.
Section E. Inspection and Acceptance
E.1 Deliverables
a. Equipment Information
b. Operating Plan
c. Contingency Plan
d. Supplier Contact List (including any and all subcontractors)
e. Communications Plan
f. Human Resources Plan (include staffing, operations training, HAZMATR
training, etc.)
g. Small, Minority, and Woman-Owned Business Subcontracting Plan (see
Clause 3-1)
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
Section F. Payment
F.1 Rate
a. The Postal Service will pay the supplier the amounts due for service
performed under this contract as follows:
1. Applicable terminal handling rates at a per annum rate. Figures
JT-1 through JT-8, as applicable must be provided to the lowest
sub-CLIN level.
2. Any amounts otherwise due the supplier are subject to adjustment
for service not performed, irregularities, or for other reasons
set out in the contract or allowed by law. Payments due the
supplier also are subject to downward adjustment or withholding
pursuant to PM 6.4.4, Withholding of Payments.
3. Weekly pay is determined based on service rendered at the
applicable rate of pay for a service week beginning 0001 hours,
Saturday and ending 2359 hours, Friday. Payment will be available
for distribution on Friday, three weeks after the close of the
service week.
4. Claims for compensation or adjustments must be made in writing by
the THS to either the Contracting Officer or the Manager,
Transportation, St. Louis Accounting Service Center within two
years of the performance of services upon which the claim is
based.
F.2 Payment - Fixed Price (Clause 2-26) (January 1997) (Tailored)
The Postal Service will pay the THS the prices stipulated in this contract for
work or supplies delivered and accepted or services rendered and accepted, less
any deductions provided for by the contract. Unless the contract otherwise
specifies, payment will be made on partial deliveries accepted by the Postal
Service if:
a. The amount due on the deliveries warrants it; or
b. The THS requests it and the amount due on the deliveries is at least
$1,000 or 50 percent of the total contract price, whichever is less.
F.3 Interest (Clause B-22) (January 1997)
The Postal Service will pay interest on late payments and unearned prompt
payment discounts in accordance with the Prompt Payment Act, 31 U.S.C. 3901 et
seq., as amended by the Prompt Payment Act Amendments of 1988, P.L. 100-496.
F.4 Payment Due Date
Payment due for a Postal Accounting Period will be made by the St. Louis
Accounting Service Center within 30 days following the end of that Accounting
Period, or, if a separate invoice is required, within 30 days after the
submission of a proper invoice. Interest will be paid for late payment
commencing on the 31st day.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
F.5 Direct Deposit
The Postal Service has in place a system for making payments to the THS by
direct deposit. The necessary forms can be obtained from the contract office.
Direct deposit will be authorized (i) only if requested by the THS, and then
(ii) solely at the discretion of the Postal Service.
F.6 Disallowance of Costs (Clause B-17) (January 1997)
a. The contracting officer may at any time issue the supplier a written
notice of intent to disallow specified costs under this contract that
have been determined not to be allowable under the contract terms.
b. The supplier may, after receiving a notice of intent to disallow
costs, submit a written response to the contracting officer, with
justification for allowance of the costs. If the supplier does respond
within 60 days, the contracting officer will, within 60 days of
receiving the response, either make a written withdrawal of the notice
or issue a written decision.
F.7 Economic Price Adjustment
a. The following cost elements will be adjusted effective one year after
award using economic indicators available and published by the Bureau
of Labor Statistics (BLS), Producer Price Index (PPI):
1. All direct costs, such as direct material, and management labor
(excluding all direct labor that is covered by the Service
Contract Act).
2. General and Administration (indirect costs)
b. The following price elements are expressly excluded from economic
price adjustments:
1. All direct labor costs subject to the Service Contract Act
2. All pass-throughs and direct reimbursements costs
3. Profit
c. The Base Index for this contract will be the annual 2000 PPI final
index for PCU4581#11112, Airports, flying fields, and airport terminal
services: services rendered to air passenger and cargo carriers
published by the BLS. On each two (2) year anniversary the
non-preliminary index for the preceding calendar year will be used to
compute the adjustment factor. For example, in August 2003, economic
adjustment factor - annual 2002 + annual 2000. In the event the above
referenced index is no longer published the adjustment will be based
on the average of same time period using PPI, PCU4581#111 - Airports,
flying fields, and airport terminal services. The index not seasonally
adjusted will be used.
d. The economic price adjustment of this clause will be applied on a
bi-annual basis, coinciding with the SCA Wage Determination
adjustment.
Other Adjustments
1. Other than described in this clause, no cost adjustment is
authorized unless specifically stated elsewhere in this contract.
F.8 Facility Lease Related Adjustment
a. For Rental Costs: Effective on the first day of the Postal Accounting
period following the anniversary date of the start of service under
this part, and on each anniversary date thereafter, the rental price
will be adjusted upward or downward based upon the actual rates paid
by the contractor, up to a maximum of 3 percent of the existing line
item detail amount. This adjustment shall apply only to space
identified as allocated to the HASP service (per contract line item
pricing sheet), and not to other services performed
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
under this contract or the space allocated to them. The resulting rate
shall become the new basis for subsequent annual adjustments.
b. For Common Area Maintenance (CAM), Property Taxes, and Insurance:
Effective on the first day of the Postal Accounting period following
the anniversary date of the start of service under this part, and on
each anniversary date thereafter, the Common Area Maintenance (CAM),
Property Taxes, and Insurance prices will be adjusted upward or
downward based upon the actual rates paid by the contractor, up to a
maximum of 2 percent of the existing line item detail amount. This
adjustment shall apply only to space identified as allocated to the
HASP service (per contract line item pricing sheet), and not to other
services performed under this contract or the space allocated to them.
The resulting rate shall become the new basis for subsequent annual
adjustments.
Section G. Special Clauses
G.1 Definitions (Clause B-1) (January 1997) (Tailored)
As used in this contract, the following terms have the following meanings:
"AAY or AAY Container" Also called a "DEMI" can. An air cargo container with a
footprint of 62 by 88 inches and an interior cubic capacity of 201.5 feet.
"Air Contract Transportation Tag (ACT Tag) A bar-coded adhesive-backed label
which identifies the three-letter airport alpha code.
"Area Distribution Center" (ADC) Any USPS or third Party location that receives
packages inbound to a market from the aviation supplier or acts as a destination
that receives mail.
"Air Stop" A city, site or location where mail is dispatched or received,
usually identified by a three digit alpha code designation for the corresponding
airport.
"Air Mail Center" (AMC) Any USPS or third Party location that acts as an origin
or destination location for tendering mail to or from the aviation supplier
outbound or inbound from a market or acts as an origin or destination location
for tendering.
"All Purpose Container" (APC) A type of USPS mail transport equipment into which
mail is sorted.
"AMJ or M-l" An air cargo container with a footprint of 96 by 125 inches, an
interior cubic capacity of 586 feet and maximum gross weight of 15,000 pounds
"Atlanta HASP" Atlanta HASP. The USPS facility located in Atlanta GA at which
containerized or loose sack mail is received from points of origin, sorted, and
transferred to other trucks for shipment to destination points.
"Aviation Supplier" Under this agreement, the sole supplier of air
transportation and the terminal handler at the hub transfer point.
"Breaking Containers" To unload containers and separate the mail by class, ACT
Tag, or distribution label destination into postal equipment such as, but not
limited to, general mail containers, over-the-road (OTR) containers, or as
directed by USPS officials
"Break and Build" The effort of loading and unloading both air and surface
containers for the purpose of transporting mail.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
"Building Containers" To build containers, to load and/or consolidate mail into
airline containers and separate by ACT Tag, distribution label, or as designated
by USPS officials.
"By-pass" The By-pass Network Flow. These are the air containers loaded at the
origin location for a particular destination. The volume in the ULD will not be
individually processed in the aviation supplier's sort operation. USPS sometimes
refers to By-pass ULDs as "intacts".
"By-pass ULDs" A single ULD loaded at the origin location for a particular
destination. The volume in the ULD will not be individually processed in the
aviation supplier's sort operation. USPS sometimes refers to By-pass ULDs as
"intacts".
"Close Out Time" The latest time which the Postal Service can tender mail to the
supplier.
"Consolidation Scan " (CONS) A scan performed by the aviation supplier that
associates multiple package tracking numbers to a consolidated unit and can
associate multiple consolidated units to a single unit. This is the scan that is
performed when individual pieces are consolidated into a ULD.
"Containerization" The use of a unit load device in which mail is stored and
transported to facilitate handling as a single unit.
"Contracting Officer or CO" The person executing this contract on behalf of the
Postal Service who is properly designated Contracting Officer.
"Contracting Officer Representative or COR" The Postal Service employee
designated by the Contracting Officer as an authorized representative to take
action relating to the administration of a specified contract or contracts,
subject to the limitations and restrictions of the position.
"Cross-Dock Transfer" Movement of direct containers or loose mail from one truck
to another without going through the sort operation.
"CTV" Cargo transport vehicle.
"Dangerous Goods " or "Hazardous Material" Articles or substances which are
capable of posing a significant risk to health, safety or to property when
transported by air and which are classified according to Section 3
(Classification) of the International Air Transport Association (IATA) Dangerous
Good Regulations, regardless of variations, exceptions, exemptions, or limited
quantity allowances.
"Day-turn Operations" The aviation supplier's operation that operates Tuesday
through Sunday.
"Delivery" The delivery of mail to the destination in accordance with contract
requirements. Delivery will be considered complete with the arrival of the final
piece of mail sorted and loaded as required.
"Delivery Time" The latest scheduled time the contractor has to complete the
delivery of mail to the designated location.
"Delivery Scan" A scan performed by the aviation supplier that indicates that
mail has been tendered to USPS
"DEMI" An air cargo container with a footprint of 62 by 88 inches, an interior
cubic capacity of 201.5 feet.
"Density" Method of calculation of utilization of air cargo containers. The
calculation is completed by dividing the number of pounds of mail loaded into a
container divided by the cubic foot capacity of that can equals the density of
the loaded container.
"Density Performance Factor" The percentage of achievement or failure relative
to the density coal. It is calculated by dividing the Density Coal by the Site
Density achieved equals the Density Performance Factor.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
"Direct Container (Intact)" A container filled at origin postal facility and
transferred directly from one truck to another without going through the sort
facility. Also, a container loaded at an origin specifically for unload at an
intermediate point, or a container loaded at an intermediate point specifically
for unloading at destination. Also referred to as by-pass container.
"Dispatch and Routing Tag" (D&R Tag) A bar-coded USPS label that is attached to
Handling Units. The D&R Tag provides an identification number that is unique for
thirty days from generation in human and machine-readable format as well as the
destination aviation supplier ramp identifier of the Handling Unit in human
readable format.
"Drayage" The physical movement of mail between the aviation supplier and USPS.
"Freight" All products carried on aircraft that is not mail
"GPMC" A General Purpose Mail Container mainly used for the transport of mail in
facilities and on surface vehicles.
"Handling Unit" A tray, flat tub, sack or outside.
"Highway Contract Route (HCR)" Postal Service-contracted surface transportation.
"Intermediate Stop" An interim point of service, on multiple stop segments,
between origin and destination.
"LD-3" An air cargo container with a footprint of 60.4 by 61.5 inches, an
interior cubic capacity of 157 feet and maximum gross weight of 3,500 pounds.
"Letter Tray" Closed and secured containers with dimensions no greater than 24
inches by 11 1/2 inches by 5 1/4 inches used to carry First Class Mail.
"Local" The location closest to where an event or circumstance exists.
"Local Plan or Local Agreement" The individual plans that will be entered into
at the Local level between the aviation supplier, USPS and the THS. Local plans
or agreements do not change the terms and conditions of the contract.
"Loose Mail or Loose Load Mail" Any mail, sacks or parcels, handled outside a
container. The terms "Loose Sack Mail" and "Loose Bag Mail" are synonymous with
"Loose Load Mail."
"Mail Bags" USPS bags with maximum dimensions of 30 inches by 15 inches by 15
inches. The closure of the Mail Bag must be such that no straps or strings are
hanging loose. The Mail Bag must have a permanently affixed location on the side
of the bag which allows the routing label to be affixed in such a manner that it
can be scanned by the Aviation supplier's automated sorting equipment.
"Mail Tub" Closed and secured containers with dimensions no greater than 21
inches by 19 inches by 19 inches, used to carry mail
"Mixed Container or ULD" A unit that contains mail for a number of different
destinations and requires sortation.
"MTE" Mail Transport Equipment
"Outsides" A mail product not transported in a sack or container.
"Overflow Mail" Mail that cannot be loaded unto its intended mode of transport
due to space or weight limitations.
"Package" Any box or envelope that is accepted by USPS for delivery to the
consignee.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
"Partial ULD " An air cargo container/ULD that is used to convey loose Handling
Units from the AMC to the aviation supplier's ramp. This ULD will be unloaded at
the origin ramp.
"Placard" A tag to be fixed to a container that describes the contents, weight,
and destination of the mail.
"Presort" Mail directly assigned to final destination not requiring sortation.
"PVS" Postal Vehicle Service.
"Ramp Transfer" The movement of direct or by-pass containers or loose mail from
one aircraft to another without going through the THS or the THS facility.
"Ready for Carriage" Adequately packaged, labeled and secured shipments in the
condition required by the Operating Specification.
"Rewrap Area" The area in which damaged or broken packages and sacks are
repaired.
"Scheduled Aircraft Arrival" The planned block-in time at the aviation
supplier's ramp in accordance with the Schedule Period Operations Schedule.
"Schedule Block" One or more Schedule Periods grouped together by the aviation
supplier for purposes of determining flight schedules during such period.
"Schedule Block Implementation Date" The first day of scheduled flights during
any Schedule Block Period.
"Shipment" All mail moving on an individually processed D&R Tag.
"Shipping Day" A day on which the aviation supplier performs the service.
":Site Daily Rate" The THS rate of compensation, as per the contract, for
one-days work.
"Site Density" The method of calculation of utilization of all air cargo
containers loaded at a site. The calculation is completed by dividing the total
actual number of pounds of mail loaded at a given site by the total site cubic
foot capacity (all cans available for loading at the site) equals the Site
Density.
"Slide Label" A cardboard insert on tray, tub or sack identifying the contents
including origin and destination of the mail.
"Staging of Mail" The holding of mail in a secure area until it can be
transported or returned to the Postal Service.
"Surface Only Mail" Mail identified by the Postal Service as mail that can only
be transported via surface transportation. Under no circumstances should this
mail be dispatched to the aviation supplier.
"Splits" or "Separations" The manner in which the mail is required to be sorted
for delivery to either the aviation supplier or USPS.
"Tender Time" The latest time at which the contractor will receive mail from the
Postal Service.
"Terminal Handling" All ground handling of mail between arrival and departure at
THS facility.
"THS" Terminal Handling Supplier.
"THS Facility" The Terminal Handling Supplier's secure and covered location
where mail may be sorted and transferred and equipment stored and staged.
"Transportation Network " Transportation of mail by surface (HCR or PVS) or
using a hub-and-spoke system to transport, transfer, and sort mail to us final
destination.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
"ULD Handling Units" AMJs, Demis and LD3s air containers that will fly. These
containers are either Intacts or Mixed.
"Unit Load Device" (ULD) The general name used to refer to the aviation
supplier's air containers.
"Universal Routing and Sort Aid" (URSA) The alphanumeric code on packages to
designate its routing.
G.2 Damages
The THS is accountable and answerable in damages for the faithful performance of
the obligations the THS has assumed under this contract, whether or not the THS
has entrusted its duties or the mail to another. When the THS has (i) missorted
units or misdispatched containers, or (ii) has otherwise failed to discharge its
obligations under this contract, there shall be forfeited by the THS from
compensation due the THS, under this or any other contract between the Postal
Service and the THS, the actual damages attributable to the THS's breach. In
cases of termination for default, the THS shall be liable, in addition to any
actual damages, for excess reprocurement costs.
G.3 Changes (Clause B-2)(January 1997) (Tailored)
a. A change is defined as a modification in contract requirements as
ordered by the contracting officer as set forth below.
b. The contracting officer may, in writing, without notice to any
sureties, order changes within the general scope of this contract in
the following:
1. Contract specifications.
2. Statement of service requirements (including but not limited to
the mix of surface and air transportation bringing mail to the
THS facility, tender and delivery times for mail, lift capacity
of aircraft that will arrive and depart the THS facility, or
additional terminal handling and/or mail sortations).
3. Type, weight, or quantity of mail.
4. Place of delivery of supplies or performance of services.
5. Delivery or performance schedule.
6. Postal Service furnished property or services.
c. Required changes to service requirements which fall within the general
scope of this contract may include an expansion and/or reduction of
the number of outstations on the network, augmentation or reduction of
volume originating or destinating at any outstation, or an increased
number of operating days.
d. The supplier must comply with all written change orders issued by the
contracting officer in accordance with this clause. No postal
employee, other than the contracting officer, is authorized to require
changes.
e. If any such change affects the costs of the performance or the
delivery schedule, the contract will be modified to effect an
equitable adjustment.
f. Upon receipt of the contracting officer's change order, the supplier
will acknowledge the change order, in writing, notifying the
contracting officer as follows:
1. The effective date the change will take place, if not prescribed
by the contracting officer.
2. The supplier's plan to implement the change.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
g. The supplier's claim for equitable adjustment must be asserted to the
contracting officer within 30 days of receiving a written change
order. If the contracting officer decides that the facts justify such
action, a later claim may be acted upon but not after final payment
under this contract.
h. If the parties fail to agree on a price for the change, the
contracting officer may establish a reasonable price for the change in
accordance with the cost principles then applicable to Postal Service
contracts generally, subject to appeal by the supplier pursuant to the
Claims and Disputes clause.
i. In any event, upon receipt of an order under this clause, the supplier
must proceed with contract performance as modified by the order.
G.4 Federal, State and Local Taxes (Clause 7-6) (January 1997) (Tailored)
a. Definitions.
1. Contract date. The effective date of this contract or
modification.
2. All Applicable Federal, State, and Local Taxes and Duties. All
taxes and duties in effect on the contract date, that the taxing
authority is imposing and collecting on the transactions or
property covered by this contact.
3. After-imposed Federal Tax. Any new or increased federal excise
tax or duty, or tax that was exempted or excluded on the contract
date but whose exemption is revoked or reduced during the
contract period, on the transactions or property covered by this
contract that the supplier is required to pay or bear as a result
of legislative, judicial, or administrative action taking effect
after the contract date. It does not include social security tax
or other employment taxes.
4. After-relieved Federal Tax. Any amount of federal excise tax or
duty, except social security or other employment taxes, that
would otherwise have been payable on the transactions or property
covered by this contract, but which the supplier is not required
to pay or bear, or for which the supplier obtains a refund or
drawback, as the result of legislative, judicial, or
administrative action taking effect after the contract date.
5. Local Taxes. Includes taxes imposed by a possession of the United
States or by Puerto Rico.
b. The contract price includes all applicable federal, state, and local
taxes and duties.
c. The contract price will be increased by the amount of any
after-imposed federal tax, provided the supplier warrants in writing
that no amount for a newly imposed federal excise tax or duty or rate
increase was included in the contract price as contingency reserve or
otherwise.
d. The contract price will be decreased by the amount of any
after-relieved federal tax.
e. The contract price will be decreased by the amount of any federal
excise tax or duty, except social security or other employment taxes,
that the supplier is required to pay or bear, or does not obtain a
refund of, through the supplier's fault, negligence, or failure to
follow instructions of the contracting officer.
f. Deleted.
g. The supplier must promptly notify the contracting officer of all
matters relating to any federal excise tax or duty that reasonably may
be expected to result in either an increase or decrease in the
contract price and must take appropriate action as the contracting
officer directs.
h. The Postal Service will, without liability, furnish evidence
appropriate to establish exemption from any federal, state, or local
tax when the supplier requests such evidence and a reasonable basis
exists to sustain the exemption.
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
G.5 Suspension of Contract
If the THS's failure to provide service is the result of an excusable delay, as
defined in the clause of that name, the contracting officer may suspend the
contract, in whole or in part, for such reasonable time as it takes for service
to be restored. Avoidable costs include all costs, which are avoided, as well as
all costs that reasonably should have been avoided.
G.6 Option for Extra Service
The Postal Service may require the THS to perform an additional day(s) of
service. Unless otherwise specifically provided in this contract, the THS, if
ordered, shall perform such additional service:
a. at the predescribed daily terminal handling rate, and
b. during the operating times identified by the Postal Service
The contracting officer may exercise the option provided for in this clause at
any time by giving a five day written notice to the THS, by facsimile, or
through the US Mail or within a shorter period upon mutual agreement.
G.7 Responsibility for Postal Property
The THS assumes the risk of, and shall be responsible for, any loss or
destruction of, or damage to any (i) Postal-furnished property listed in Section
I, or (ii) other Postal property delivered to the supplier during performance of
this contract. However, the THS is not responsible for reasonable wear and tear
to such property. The THS will promptly take all measures necessary to remedy
any loss, destruction, or damage to Postal-furnished and other Postal property
that exceeds reasonable wear and tear.
G.8 Indemnification and Insurance
a. The supplier shall indemnify the Postal Service and hold it harmless
against claims for injury to persons (including employees of the
supplier) or damage to property (including property of the supplier)
arising from its performance of this contract.
b. The supplier shall, at its own expense, procure, maintain, and keep in
force or cause to be procured, maintained, and kept in force, at all
times, during the term of this contract personal liability/property
damage liability insurance in accordance with 14 CFR 205.5, and any
other applicable law or regulation.
1. Prior to commencing performance, the supplier shall provide to
the Postal Service: (1) certificates or (2) other evidence of
insurance acceptable to the Postal Service that demonstrate that
all required coverages are in force.
2. The supplier will cover third party liability arising from its
performance of this contract, which is in excess of, or not
covered by, the liability insurance required above. The Postal
Service shall be named as an additional insured. The cost of this
and any additional coverage is included in the Contract price.
G.9 FAA and Local Airport Authority Requirements
The THS must comply with all lawful requirements of FAA and local airport
authorities. This includes, but is not limited to, weight and balance
compliance, ramp access restrictions, and other matters within the jurisdiction
of such authorities
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Amendment No. 03 SNET-01-SER, Part B November 6, 2001
G.10 Other Contracts
The THS has agreed to operate a terminal handling for the operations defined
under this contract. The THS must cooperate fully with the aviation supplier and
carefully fit the mail transported by it into the THS's ground handling
operation. The THS must not commit or permit any act that will interfere with
the performance of work by any other supplier or by Postal Service employees.
G.11 Responsibility for Postal Containers
The THS assumes the risk of, and shall be responsible for, any loss or
destruction of, or damage to postal containers while they are in the custody and
control of the THS. However, the THS is not responsible for reasonable wear and
tear to such containers. The THS will take all measures necessary to remedy any
loss, destruction or damage to Postal containers that exceeds reasonable wear
and tear.
G.12 Early Termination of Facility Lease
The THS has committed to a five-year facility lease beginning December 1, 2001
through December 1, 2006, with terms that, as tenant, the THS is responsible for
negotiated a buyout up to the balance of the rent due until the end of the
rental term or securing a suitable replacement tenant. Lease costs (exclusive of
profit, G&A, etc.) incurred by the THS for early termination of this contract by
the USPS will be reimbursed by the USPS subject to negotiated agreement with the
THS. At USPS discretion, the THS agrees to transfer leased facility to USPS or
its agent in the event of early termination for convenience of the THS or the
HASP operation.
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