PART 601—PURCHASING OF PROPERTY AND SERVICES Authority: 39 U.S.C. 401, 404, 410, 411, 2008, 5001-5605. Source: 72 FR 58252, Oct. 15, 2007, unless otherwise noted. § 601.100 Purchasing policy. The Postal Service acquires property and services pursuant to the authority of 39 U.S.C. 410. § 601.101 Effective date. These regulations are effective November 14, 2007. Solicitations issued and resulting contracts entered into prior to that date will be governed by the regulations in effect at the time the solicitation was issued. § 601.102 Revocation of prior purchasing regulations. All previous postal purchasing regulations, including the Postal Contracting Manual Procurement Manual Purchasing Manual § 601.103 Applicability and coverage. The regulations contained in this part apply to all Postal Service acquisition of property (except real property) and services. § 601.104 Postal purchasing authority. Only the Postmaster General/CEO; the Postal Service's vice president, Supply Management; contracting officers with written statements of specific authority; and others designated in writing or listed in this part have the authority to bind the Postal Service with respect to entering into, modifying, or terminating any contract regarding the acquisition of property, services, and related purchasing matters. The Postal Service's vice president, Supply Management, or his or her designee, may also delegate in writing local buying authority throughout the Postal Service. § 601.105 Business relationships. (a) General. (b) Declining to accept or consider proposals. (1) Marginal or dilatory contract performance; (2) Failure to deliver on promises made in the course of dealings with the Postal Service; (3) Providing false or misleading information regarding financial condition, ability to perform, or other material matters, including any aspect of performance on a contract; and (4) Engaging in other questionable or unprofessional conduct or business practices. (c) Notice. by Certified Mail, return receipt requested (1) The reasons for the decision; (2) The effective date of the decision; (3) The scope of the decision; (4) The period of time the decision will be in effect, (a matter at the Postal Service's discretion consistent with the circumstances); and (5) The supplier's right to contest the decision. (d) Contesting Decisions. § 601.106 [Reserved] § 601.107 Initial disagreement resolution. (a) Definitions Days. (2) Disagreements. (i) That arise pursuant to a contract under the Contract Disputes Act under § 601.109; (ii) That concern debarment, suspension, or ineligibility under § 601.113; or (iii) That arise out of the nonrenewal of transportation contracts containing other provisions for the review of such decisions. (3) Interested parties. (4) Lodge. (5) SDR Official. (b) Policy. (c) Alternative dispute resolution. [75 FR 1542, Jan. 12, 2010] § 601.108 SDR Official disagreement resolution. (a) General. (b) Scope and applicability. (c) Lodging. [email protected]; (d) Lodging timeframes. (1) Disagreements under § 601.107 not resolved with the contracting officer must be lodged with the SDR Official within 20 days after they were lodged with the contracting officer (unless ADR had been used to attempt to resolve them); (2) Disagreements under § 601.107 for which ADR had been agreed to be used must be lodged with the SDR Official within 10 days after the supplier knew or was informed by the contracting officer or otherwise that the matter was not resolved; (3) Where a supplier is dissatisfied with the contracting officer's resolution of a disagreement under § 601.107, the supplier must lodge the disagreement with the SDR Official within 10 days after the supplier first receives notification of the contracting officer's resolution; and (4) Contests of decisions under § 601.105 to decline to accept or consider proposals must be lodged with the SDR Official within 10 days of the supplier's receipt of the written notice explaining the decision. (5) The SDR Official may grant an extension of time to lodge a disagreement under § 601.107 or contest of decision under § 601.105 or to provide supporting information when warranted. Any request for an extension must set forth the reasons for the request, be made in writing, and be delivered to the SDR Official on or before the time to lodge a disagreement lapses. (e) Disagreement decision process. (1) Directing the contracting officer to revise the solicitation or to issue a new solicitation; (2) Directing the contracting officer to recompete the requirement; (3) Directing the contracting officer to reevaluate the award on the basis of current proposals and the evaluation factors contained in the solicitation; and (4) Directing the contracting officer to terminate the contract or to refrain from exercising options under the contract. (f) Guidance. (g) Final resolution by the SDR Official and final contract award of the Postal Service. (h) Judicial review. (i) Resolution timeframe. [75 FR 1542, Jan. 12, 2010, as amended at 79 FR 65343, Nov. 4, 2014] § 601.109 Contract claims and disputes. (a) General. (b) Policy. (c) Applicability. (1) The procurement of property, including license or leasehold interests in real property, other than fee simple title to real property in being; (2) The procurement of services; (3) The procurement of construction, alteration, repair, or maintenance of real property; or (4) The disposal of personal property. (d) Supplier claim initiation. (e) Postal Service claim initiation. (f) Certified claims. (g) Misrepresentation or fraud. (h) Decision and appeal Contracting officer's authority. (i) Claims or disputes for penalties or forfeitures prescribed by statutes or regulation that a Federal agency administers; or (ii) Claims involving fraud. (2) Contracting officer's final decision. (3) Insufficient information. (4) Furnishing decisions. (5) Decisions on claims for $100,000 or less. (6) Decisions on certified claims. (7) Wording of decisions. Claims and Disputes. https://usps-judicialoffice.journaltech.com/public-portal, (8) Additional wording for decisions of $50,000 or less. (9) Additional wording for decisions over $50,000 up to $100,000. [90 FR 17011, Apr. 23, 2025] § 601.110 Payment of claims. Any claim amount determined in a final decision to be payable, less any portion previously paid, should be promptly paid to the supplier without prejudice to either party in the event of appeal or action on the claim. In the absence of appeal by the Postal Service, a board or court decision favorable in whole or in part to the supplier must be implemented promptly. In cases when only the question of entitlement has been decided and the matter of amount has been remanded to the parties for negotiation, a final decision of the contracting officer must be issued if agreement is not reached promptly. § 601.111 Interest on claim amounts. Interest on the amount found due on the supplier's claim must be paid from the date the contracting officer received the claim (properly certified, if required) or from the date payment would otherwise be due, if that date is later, until the date of payment. Simple interest will be paid at the rate established by the Secretary of the Treasury for each 6-month period in which the claim is pending. Information on the rate at which interest is payable is announced periodically in the Postal Bulletin. § 601.112 Review of adverse decisions. Any party may seek review of an adverse decision of the Board of Contract Appeals in the Court of Appeals for the Federal Circuit or in any other appropriate forum. § 601.113 Debarment, suspension, and ineligibility from contracting. (a) General. (b) Definitions Administrative Compliance Agreement. (2) Affiliate. (3) Concurrence. (4) Contract. (5) Debarment. (6) Debarment Official. (7) Excluded party. (8) General Counsel. (9) Indictment. (10) Ineligible. (11) Party. (12) Suspension. (13) Supplier. (i) Directly or indirectly ( e.g., (ii) Conducts business or reasonably may be expected to conduct business with the Postal Service as a subcontractor, an agent, or a representative of another supplier. (14) Voluntary exclusion. (c) Debarment Procedures. (ii) After reviewing the basis for a debarment request and obtaining concurrence from the General Counsel, the Debarment Official may initiate debarment proceedings by sending the party proposed for debarment a written notice of proposed debarment. The notice will state that debarment is being considered; the reasons for the proposed debarment; the anticipated period of debarment and the proposed effective date; and that, within 30 days of the notice, the party, individually or through a representative, may submit in writing information in opposition to the proposed debarment. In the event a party does not submit information in opposition to the proposed debarment to the Debarment Official within the time allowed, the debarment will become final with no further review or appeal. (iii) If there is any question of material fact involving the debarment allegations, the Debarment Official may seek additional information from the party or other persons. In establishing such material fact(s), the Debarment Official may in his or her discretion request the Judicial Officer to hold a fact-finding hearing on such matters. The hearing will be governed by the rules of procedure at 39 CFR part 955. The Debarment Official must consider but may reject any findings of fact, in whole or in part. Questions of fact to be resolved by a hearing before the Judicial Officer will be based on a preponderance of the evidence. (iv) After consideration of the circumstances and any information and argument submitted by the party, the Debarment Official, with the concurrence of the General Counsel, will issue a written decision regarding whether the party is debarred, and, if so, the period of debarment. The decision will be final and binding, unless the decision was procured by fraud or other criminal misconduct, or the decision was obtained in violation of the regulations contained in this part or an applicable public law enacted by Congress. (v) If the party enters into any agreement regarding improper conduct whereby the party states that it will not contest any debarment on the grounds of the improper conduct, the Debarment Official is not required to comply with the requirements of this paragraph (c)(1) and, with the concurrence of the General Counsel, may proceed to immediately debar the party by providing a written decision stating that the party is debarred effective immediately and identifying the period of debarment. (2) Grounds. (A) Indictment or charging of a criminal offense incidental to obtaining or attempting to obtain contracts or subcontracts, or in the performance of a contract or subcontract. (B) Violation of a Federal antitrust statute arising out of the submission of bids or proposals. (C) Commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, tax evasion, receiving stolen property, or any other criminal offense of moral turpitude. (D) Misconduct involving theft or abuse of mail, narcotics trafficking, willful disregard of applicable laws or safety standards, or other conduct demonstrating a lack of honesty or responsibility. (E) Breach of a Postal Service contract so severe as to justify debarment, including, but not limited to, willful failure to perform a Postal Service contract in accordance with the specifications or within the time limit(s) provided in the contract; repeated failures to perform or unsatisfactory performance in accordance with the terms of one or more Postal Service contracts; violation of a contractual provision against contingent fees; or acceptance of a contingent fee paid in violation of a contractual provision against contingent fees. (F) Violation of, or aiding any Postal Service employee or agent in the violation of, any federal ethics laws or principles. (G) Any other offense indicating a lack of business integrity or business honesty. (H) Any other cause of a serious and compelling nature for which debarment is warranted. (ii) The existence of any of the causes for debarment in this section can be established by a preponderance of the evidence, as determined by the Debarment Official. (3) Mitigation. (A) Whether the party had, or was in the process of establishing, written standards of conduct and published internal control systems at the time of the improper conduct, or adopted such procedures prior to any Postal Service investigation of the activity cited that constitutes the grounds for debarment. (B) Whether the party promptly brought the improper conduct to the attention of the Postal Service. (C) Whether the party promptly and fully investigated the circumstances involving the grounds for debarment and, if so, made the full results of the investigation available to the Postal Service. (D) Whether the party cooperated fully with the Postal Service during its investigation into the circumstances involving debarment. (E) Whether the party paid or agreed to pay all criminal, civil and administrative penalties or liability, and any other costs arising out of the improper conduct, including any investigative or administrative costs incurred by the Postal Service. (F) Whether the party took appropriate disciplinary action against the individual(s) responsible for the improper conduct. (G) Whether the party implemented and/or agreed to implement remedial measures, including those identified by the Postal Service. (H) Whether the party instituted and/or agreed to institute new and/or revised review and control procedures and ethics programs. (I) Whether the party had adequate time to eliminate circumstances within the party's organization that could lead to debarment. (J) Whether the party's senior officers and mid-level management recognize and understand the seriousness of the misconduct giving rise to debarment. (ii) The existence or nonexistence of mitigating factors or remedial measures such as those listed in paragraph (c)(3)(i) of this section is not determinative of whether or not a party should be debarred. The party has the burden of demonstrating, to the satisfaction of the Debarment Official, that debarment is not warranted or necessary, or that the period of debarment should be reduced. (4) Period of debarment. (ii) Except as precluded by an applicable statute, Executive order, or controlling regulation of another agency, a debarred party may submit a request to the Debarment Official to remove the debarment or reduce the period of debarment. The party must support the request with a reasonable justification, such as newly discovered material evidence, acquittal or reversal of a conviction, bona fide change of ownership or management, or the elimination of the causes for which debarment was imposed. The Debarment Official may, in his or her discretion, approve or deny any such request by written decision. (5) Alternative remedies Administrative Compliance Agreement. (ii) Voluntary exclusion. (d) Suspension Procedures. (ii) For a suspension pursuant to paragraph (d)(2)(iii) of this section, the suspension is effective upon issuance of the notice of proposed debarment and for the period stated in the notice, unless superseded by the party's debarment. (iii) Within 30 days of notice of suspension or any extension, a party may submit to the Debarment Official, in writing, any information or reason(s) the party believes makes a suspension or an extension inappropriate. The Debarment Official, after consultation with the General Counsel, will consider the party's submission and, in his or her discretion, may revoke a suspension or an extension of a suspension by written decision. (2) Grounds. (i) If the party commits, is indicted for, or is charged with any of the offenses identified in paragraph (c)(2)(i) of this section and the Debarment Official determines not to institute debarment proceedings until the conclusion of any judicial or administrative proceedings related thereto; (ii) For any other cause of such serious and compelling nature that suspension is warranted; or (iii) If the Postal Service has notified a party of its proposed debarment under this part. (3) Period of suspension. (e) Imputation of conduct. (2) The improper conduct of one party participating in a joint venture or similar arrangement may be imputed to other participating parties if the conduct occurred for or on behalf of the joint venture or similar arrangement, or with the knowledge, approval, or acquiescence of the other parties. Acceptance of the benefits derived from the conduct will be evidence of such knowledge, approval, or acquiescence. (3) The improper conduct of a party may be imputed to an affiliate, and the improper conduct of an affiliate may be imputed to a party. (f) Debarment, suspension, and ineligible list. SAM.gov (2) Through a representative, the Debarment Official will use SAM.gov (3) Contracting officers must review the SAM.gov (g) Treatment of debarred, suspended, or ineligible parties. (i) Being awarded any contract with the Postal Service; (ii) Receiving any subcontract to provide property or services under any Postal Service contract; (iii) Submitting proposals or offers of any manner to the Postal Service in an attempt to obtain an award of a contract; (iv) Providing property or services to other persons or entities for resale, in whole or part, to the Postal Service; (v) Being employed and performing as designated key personnel under a Postal Service contract or subcontract; or (vi) Having access to mail, Postal Service data, or Postal Service facilities under a Postal Service contract or subcontract. (2) The debarment, suspension, or ineligibility of a party does not, of itself, affect the rights and obligations of the parties to any valid, pre-existing contract. The Postal Service may terminate for default a contract with a party that becomes debarred, suspended, or ineligible during the contract's period of performance. Contracting officers may not add new work to any contract with a party that is debarred, suspended, or ineligible by supplemental agreement, by exercise of any option, or otherwise (unless the work is classified as an insignificant or significant minor service change to a mail transportation contract). (3) All parties doing business with the Postal Service are obligated to review the database identified in paragraph (f) of this section in order to exclude debarred, suspended, or ineligible parties from performing any part of a Postal Service contract. (4) Notwithstanding paragraphs (g)(1) through (3) of this section, and in his or her discretion, the Debarment Official may approve a deviation from any part of this paragraph (g) if, after consultation with the General Counsel, it is determined to be in the best interests of the Postal Service. (h) Notices. [90 FR 51995, Nov. 19, 2025]