[Federal Register Volume 90, Number 77 (Wednesday, April 23, 2025)]
[Rules and Regulations]
[Pages 17010-17012]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-06769]
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POSTAL SERVICE
39 CFR Part 601
Purchasing of Property and Services
AGENCY: Postal Service\TM\.
ACTION: Final rule.
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SUMMARY: The Postal Service is revising its purchasing regulations
governing contract claims and disputes to modify the required language
to be included in contracting officer's final decisions, and to make
other clarifying updates.
DATES: Effective April 23, 2025.
FOR FURTHER INFORMATION CONTACT: Robert Dietz at 202-268-6088 or Susan
Witt at 202-268-4833.
SUPPLEMENTARY INFORMATION: The Postal Service Board of Contract Appeals
has changed the address for their electronic filing website. A change
to the requirement for the wording of the contracting officer's final
decision for contract claims and disputes in paragraph (g)(7) of Sec.
601.109 (now paragraph (h)(7)) is required to update the new internet
address. In addition, the following updates to Sec. 601.109 are also
being included:
In paragraph (a), the reference to use of the Supplier
Disagreement Resolution (SDR) official as a mediator for alternative
dispute resolution (ADR) has been delated since, in practice, pre-claim
ADR before the SDR official has not been utilized;
Paragraph (b) was revised to streamline the recitation of
the Postal Service's policy regarding resolution of contractual claims,
and remove the reference to ADR;
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Paragraph (c): Applicability was added to clarify the
types of Postal Service contracts that are subject to the section;
The designation hierarchy of paragraphs (c) through (g)
was adjusted to paragraphs (d) through (h);
Paragraph (c) (now paragraph (d)) was revised to remove
references to non-regulatory internal processes for the contract file,
and to remove an outdated reference to contracts awarded prior to
October 1, 1995;
Paragraph (d) (now paragraph (e)) was revised to remove an
outdated reference to contracts awarded prior to October 1, 1995;
Paragraph (g)(1) (now paragraph (h)(1)) was revised to
confirm that contracting officers must have the requisite authority to
resolve claims under the section;
Non-substantive stylistic edits were made to paragraphs
(g)(2), (3), (5), (6), and (8) (now in paragraph (h));
Paragraph (g)(4) (now paragraph (h)(4)) was revised to
clarify that delivery of the contracting officer's final decision can
be by any method that provides evidence of receipt, not only Certified
MailTM, return receipt requested; and
Paragraph (g)(10) was deleted to remove non-regulatory
internal processes.
List of Subjects in 39 CFR Part 601
Administrative practice and procedure, Government procurement,
Postal Service.
Accordingly, the Postal Service amends 39 CFR part 601 as follows:
PART 601--PURCHASING OF PROPERTY AND SERVICES
0
1. The authority citation for 39 CFR part 601 continues to read as
follows:
Authority: 39 U.S.C. 401, 404, 410, 411, 2008, 5001-5605.
0
2. Section 601.109 is revised to read as follows:
Sec. 601.109 Contract claims and disputes.
(a) General. This section implements the Contract Disputes Act of
1978, as amended (41 U.S.C. 7101-7109).
(b) Policy. The Postal Service intends and seeks to resolve
contractual claims and disputes by mutual agreement at the level of an
authorized contracting officer whenever possible. The contracting
officer may also consider holding informal discussions between the
parties in order to resolve the conflict before issuing any final
decision.
(c) Applicability. This section shall apply to all claims arising
out of, or relating to, any contract, including any agreement entered
into under authority delegated pursuant to Sec. 601.104 for:
(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. Supplier claims must be submitted in
writing to the contracting officer for final decision within six years
after accrual of a claim unless the parties agreed in writing to a
shorter time period.
(e) Postal Service claim initiation. The contracting officer must
issue a written decision on any Postal Service claim against a supplier
within six years after accrual of a claim unless the parties agreed in
writing to a shorter time period. The six-year time period does not
apply to a Postal Service claim based on supplier fraud.
(f) Certified claims. Each supplier claim exceeding $100,000 must
be accompanied by a certification in accordance with the supplier's
contract.
(g) Misrepresentation or fraud. When the contracting officer
determines that the supplier is unable to support any part of the claim
and there is evidence or reason to believe the inability is
attributable to either misrepresentation of fact or fraud on the
supplier's part, the contracting officer must deny that part of the
claim and refer the matter to the Office of Inspector General.
(h) Decision and appeal--(1) Contracting officer's authority. A
contracting officer, within the limitations of his or her delegated
authority, is authorized to decide or settle all claims arising under
or relating to a contract subject to the Contract Disputes Act, except
for:
(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. The contracting officer
must review the facts pertinent to the claim and issue a final decision
in writing. The decision must include a description of the claim or
dispute with references to the pertinent contract terms, a statement of
the factual areas of agreement and disagreement, and a statement of the
contracting officer's final decision with supporting rationale.
(3) Insufficient information. When the contracting officer cannot
issue a decision because the supplier has not provided sufficient
information, the contracting officer should request the required
information. A supplier's failure to timely provide the requested
information is an adequate reason to deny the claim.
(4) Furnishing decisions. The contracting officer must furnish a
copy of the written decision to the supplier, and delivery may be by
any method that provides evidence of receipt.
(5) Decisions on claims for $100,000 or less. If the supplier has
asked for a decision within 60 days on a claim of $100,000 or less, the
contracting officer must issue a final decision within 60 calendar days
of its receipt. The supplier may consider the contracting officer's
failure to issue a decision within the applicable time period as a
denial of its claim and may file a lawsuit or appeal on the claim.
(6) Decisions on certified claims. For a certified claim over
$100,000, the contracting officer must either issue a final decision
within 60 days of its receipt, or notify the supplier within the 60-day
period of the time when a decision will be issued. The time period
established must be reasonable, taking into account the size and
complexity of the claim, the adequacy of the supplier's supporting
data, and any other relevant factors.
(7) Wording of decisions. The contracting officer's final decision
must contain the following paragraph: ``This is the final decision of
the contracting officer pursuant to the Contract Disputes Act of 1978
and the clause of your contract entitled Claims and Disputes. You may
appeal this decision to the Postal Service Board of Contract Appeals by
filing a notice of appeal within ninety days from the date you receive
this decision. You may file the notice of appeal online through the
USPS Judicial Officer Department's Electronic Filing System website
located at https://usps-judicialoffice.journaltech.com/public-portal,
or by mailing or otherwise furnishing the notice of appeal to the
Postal Service Board of Contract Appeals. You also may appeal by
mailing or otherwise furnishing the written notice of appeal to the
contracting officer within 90 days from the date you receive this
decision. The notice should identify the contract by number, reference
this decision, and indicate that an appeal is intended. Alternatively,
you may bring an action directly in the United States Court of Federal
Claims within 12 months of the date you receive this decision.''
(8) Additional wording for decisions of $50,000 or less. When the
claim, or claims, denied total $50,000 or less, the contracting officer
must add the following to the paragraph: ``In taking
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an appeal to the Postal Service Board of Contract Appeals, you may
include in your notice of appeal (1) an election to proceed under the
Board's small claims (expedited) procedure, which provides for a
decision within approximately 120 days, or (2) an election to proceed
under the Board's accelerated procedure, which provides for a decision
within approximately 180 days. If you do not make an election in the
notice of appeal, you may do so by written notice anytime thereafter.''
(9) Additional wording for decisions over $50,000 up to $100,000.
When the claim or claims denied total $100,000 or less, but more than
$50,000, the contracting officer must add the following to the
paragraph: ``In taking an appeal to the Board of Contract Appeals, you
may include in your notice of appeal an election to proceed under the
Board's accelerated procedure, which provides for a decision within
approximately 180 days. If you do not make an election in the notice of
appeal, you may do so by written notice anytime thereafter.''
Kevin Rayburn,
Attorney, Ethics and Legal Compliance.
[FR Doc. 2025-06769 Filed 4-22-25; 8:45 am]
BILLING CODE P