2640, "Postmasters Certification of Mail Messenger Service Performed."

(3) Where payment for mail messenger service is made on a trip basis to airports and heliports, and the messenger is not officially notified in advance of cancellation of a flight, and he reports at the post office to perform the trip, the postmaster or installation head shall include the scheduled trip in his certification on Form 2640. The postmaster, or installation head shall report by memorandum to the director, transportation division, each trip certified for payment under this section. (See § 522.3(b) (3).)

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

(2) The transportation division must immediately notify the postal data center to suspend payment until official order on Form 544-C is received showing date of termination.

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

[26 F.R. 11634, Dec. 6, 1961, as amended at 27 F.R. 4837, May 23, 1962; 30 F.R. 10152, Aug. 14, 1965; 31 F.R. 12637, Sept. 27, 1966. Redesignated at 31 F.R. 15351, Dec. 8, 1966] § 522.7 Screening messengers and certain employees.

523.3 Reports and certifications.

523.4 Screening contractors, subcontractors, and certain employees.

AUTHORITY: The provisions of this Part 523 issued under 5 U.S.C. 301, 39 U.S.C. 501, 6351-6355.

§ 523.1 Description.

(a) Authorization. (1) Highway post offices are bus-type vehicles operated over designated routes, authorized by the Post Office Department for the acceptance, receipt, distribution, storage, dispatch, and delivery of mail by mobile clerks. All these vehicles are operated by private individuals or companies under contract with the Department.

(2) Government-owned HPO vehicles may be operated experimentally or in emergencies.

(b) Title designation. The title of a route is derived in the same manner as that of a railway post office.

(c) Services-(1) Location. Highway post offices are set up in areas where highway transportation and en route distribution can appreciably advance mail delivery to postal patrons and afford them expeditious dispatch of their outgoing mail.

(2) Schedules. Highway post office routes operate on fixed schedules which are arranged, whenever possible, to provide early morning receipt and late afternoon dispatch for the post offices along the route.

(3) To intermediate offices. The postmaster to whom the highway post office route is assigned shall issue instructions for exchange of mail with intermediate offices.

(4) Supervision over service. Direct supervision of highway post office service will be assigned to the designated postmasters or installation heads.

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

The

(2) See § 521.3(c) (2) (i) (e). (b) Agreement of contractors. contractor must agree not to discriminate against any employee or applicant for employment because of race, religion, color, or national origin. He will be guided by the provisions contained in Form 5466, "Highway Post Office Contract General Provisions."

(c) Award of contracts. Contracts for highway post office service are subject to the terms of the advertisement for the service and are awarded to the lowest responsible bidder meeting these terms.

(d) Services required of contractor(1) Providing vehicles. The contractor must furnish the specified number of vehicles, fitted up, maintained, and operated in accordance with the specifications, rules, and regulations prescribed by the Postmaster General. He must also have available sufficient spare vehicles to maintain service, while regular vehicles are being serviced or repaired. The spec

ifications (POD Publication 10) require the use of the latest safety features to give the greatest possible protection to personnel and mail. The required construction limits distortion to a minimum in the event of a collision. These vehicles shall be equipped with letter and paper distributing tables, pouch racks, overhead paper boxes, letter cases, drawer which may be locked with LA locks, clothes locker, folding lavatory, and drinking water container. A screened metal partition must be installed between the driver's compartment and the working area.

(2) Providing drivers. The contractor shall furnish drivers who must comply with the following laws and regulations:

(i) Qualifications. Drivers must be licensed chauffeurs not less than 21 years of age. They must be intelligent, of good character and physically qualified to perform service. They must not have criminal records involving crimes such as those listed in § 521.3 (c) (2) (i) (e),

(ii) Supervision. Drivers must comply with all proper orders and instructions of the foreman of their vehicles that are consistent with safety. Safe operation of the vehicle is the responsibility of the driver.

(iii) Schedule of duty. Drivers' schedules must be arranged to comply with Interstate Commerce Commission safety regulations or Post Office Department regulations requiring sufficient rest periods between trips to assure alert, efficient operation of the vehicles.

(iv) Duties. The driver must: (a) Comply with the applicable provisions of subparagraph (4) and (5) of this paragraph regarding the operation of the vehicle and the performance of service.

(b) Transfer mail as provided in subparagraph (6) of this paragraph.

(c) Immediately request instructions from the foreman of the vehicle when the highway on the designated route becomes impassable for any reason.

(v) Liability for accidents. The contractor and driver are responsible for accidents occurring in the operation of the vehicle. The Post Office Department is not responsible for damage caused by contract vehicles operated by contractors or their employees.

(3) Placing vehicles. The contractor must place the highway post office vehicles at the terminals of the routes at the designated times.

(4) Operating vehicles. The contractor must: (i) Furnish evidence of financial ability to cover liability for personal injuries in the amount of $100,000.

(ii) Know and comply with both intrastate and interstate laws governing the operation of motor vehicles.

(iii) Observe all safety measures for the protection of the general public and operating personnel as prescribed by applicable State and Federal laws and regulations governing the operation of motor vehicles, as well as the safety regulations of the Interstate Commerce Commission or those prescribed by the Post Office Department.

(iv) Observe schedules on all routes according to standard time unless otherwise specified.

(5) Performing service. The contractor must: (i) Perform service promptly, reliably, safely, and without interruption. If he fails to do so after his attention has been called to delinquencies, the distribution and traffic manager may impose fines for past failures and order the removal of the driver and vehicle from the route. It may order the employment of temporary service at the expense of the contractor until he provides a satisfactory driver.

(ii) Perform service within the limit of the running time prescribed in the advertisement under which he submitted

bid.

(iii) Comply with all orders and instructions from the transportation requirements and procurement officer and the supervising postmaster.

(6) Transporting, transferring, and delivering mail. The contractor must: (i) Transport all mail to the cubical or weight capacity of the vehicle, promptly, reliably, and safely. This includes foreign mail in transit across the continental United States or its territories.

(ii) Transfer mail between the vehicle and postal installations when the vehicle can normally be driven to a point within 150 feet of the door or tailboard space of the installation, or place the vehicle at the platform or loading dock of a postal installation to permit hand-to-hand exchange of mail between clerks in the door of the vehicle and clerks on duty at the installation. The transportation requirements and procurement officer is expected to make reasonable adjustments in these requirements by agreements with postmasters and contractors to assure on-time operation.

(iii) Deliver mail to each intermediate post office on the route on both outward and inward trips unless otherwise instructed by the supervising postmaster.

(7) Transporting postal officials. The contractor must transport on regular trips all duly accredited officials of the Postal Service, traveling on official business, on presentation of their credentials. The contractor or his driver must not make known to any person at any time the presence of a postal inspector in his vehicle or in the vicinity of the route.

(8) Transporting passengers. Contractors are prohibited from carrying passengers in highway post office vehicles, other than postal personnel and contractors' employees. Contractors' employees may be permitted to ride in the driver's compartment when traveling on company business directly related to highway post office service, when such travel does not interfere with safe operation of the vehicle.

(e) Extensions, discontinuances, and changes. The distribution and traffic manager may:

(1) Order an increase in service on any route.

(2) Change schedule of arrivals and departures in all cases, particularly to make them conform to connections with railroads and other mail routes.

(3) Discontinue, change, or curtail the service, to improve the mail service or to serve the public interest.

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

(f) Forfeitures or contract annulment. See § 521.3(g) (3).

(g) Subcontracts.

Contractors for highway post office service must not subcontract the service unless the subcontract is approved by the director, transportation division. Subcontractors must conform to all requirements stated for the contractor himself. Approved subcontractors must perform the same service required of the original contractor.

(h) Payments-(1) For regular service. See § 521.3 (h) (1).

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

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

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

(i) Inspection of highway post office vehicles. Vehicles and equipment shall be inspected by officials of the postal

66-08667-36

service to assure compliance with departmental instructions.

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

§ 523.3 Reports and certifications.

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

(1) Gross negligence on the part of the contractor or his employees. (2) Trips repeatedly not performed or service omitted.

(3) Delays of 30 minutes or more due to the driver's failure to report or due to equipment failure. (Delays of less than 30 minutes may be briefed in unusual circumstances.)

(4) Heat and light failures of 30 minutes or more during one round trip.

(5) Unsanitary and unclean conditions in the vehicle.

(6) Failure to provide potable water. (7) Loss or damage to mail or postal equipment.

(8) Failure of the contractor or his employees to follow reasonable instructions of postal officials or employees.

(9) Violation of postal laws or regulations.

(10) Failure to give proper supervision to performance of contracted service. (11) Transporting as cargo matter due to be in the mail.

(12) Entrusting the vehicle to an unsuitable person.

(c) Accident reports—(1) Contractor's report. The postmaster to whom the highway post office is assigned shall require the contractor to submit reports of all accidents occurring when the highway post office is in scheduled operation. Copies of State, municipal, ICC, insurance carrier's accident report forms, or a narrative written report, are acceptable.

(2) HPO supervisor's report. Accidents are reported to the postmaster to whom the highway post office is assigned on trip reports. See that each accident reported on trip report is followed by the contractor's report of accident. Form 1769, "Supervisor's Report of Accident", must accompany trip report if postal employees are injured or government property is damaged.

(3) Postmaster's reports. The postmaster to whom the highway post office is assigned must take the following action on receipt of accident reports:

(i) Advise the inspector in charge immediately of any accidents requiring inspection service attention.

(ii) Report serious accidents immediately to the director, transportation division.

(iii) Compare contractor's report with trip report.

(iv) Prepare and submit a brief abstract of accident to the director, transportation division, to include the following:

(a) Route.

(b) Trip Number.

(c) Date.

(d) Time.

(e) Place.

(f) Weather conditions. (g) Injuries.

(h) Damages.

(i) Other vehicles or object involved. (j) Any other pertinent information. (v) Submit contractor's report to regional safety officer and, if postal employees are injured, submit Form 1769. [26 F.R. 11635, Dec. 6, 1961, as amended at 28 F.R. 6453, June 22, 1963; 29 F.R. 6538, May 20, 1964. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 523.4 Screening contractors, subcontractors, and certain employees.

See § 521.9 except that Form 2025 and FD-258 will be sent by the director, transportation division, to the contractor or subcontractor instead of to the postmaster.

[30 F.R. 10152, Aug. 14, 1965. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

(c) Delivery of registered, insured, certified and COD matter.

(d) Acceptance of matter presented for registration, certification, or insurance, or to be sent COD, and money with applications for money orders.

(e) Facilities for distribution of mail en route by postal clerks.

[26 FR. 11635 Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 524.2 Postal services provided.

(a) Exchange of mail. The contractor shall exchange mail with:

(1) All intermediate post offices and non-post office points on the route, as stated in the advertisement, on both outward and return trips, unless otherwise instructed.

(2) Post offices established after the advertisement is issued. No additional pay is made in such instances if the distance is not increased.

(3) Post offices at each end of the route, unless the distribution and traffic manager has otherwise provided for such terminal service.

(4) Mail carriers on connecting routes, if necessary.

(b) Box delivery and collection service. Advertisements and contracts state whether box delivery and collection service is required. They also state the scope of such service. The instructions contained in Part 159 of this chapter are applicable to water route service, so far as practicable. See also § 521.2 (b) and (c).

(c) Acceptance of mail en route. Every mail carrier shall receive any mail presented to him, if it is properly prepaid by stamps, and deliver it at the next post office at which he arrives. No fees are allowed for this service.

(d) Other postal services. On routes where the provisions of the contract require, the carrier must sell stamp stock and transact money-order and registry

business in accordance with the instructions contained in the advertisement.

[26 F.R. 11635 Dec. 6, 1961. Redesignated at 31 F.R. 15351, Dec. 8, 1966]

§ 524.3 Contracts.

(a) Contract terms. See § 521.3(a).

(b) Obtaining bids. See § 521.3 (c) except subparagraph (2) (i) (a) thereof as bidders for water route service are not restricted as to residence.

(c) Award of contract. See § 521.3(d). (d) Contractor's responsibilities—(1) Providing equipment. Contractors must provide:

(i) Steamboats or other powerboats which are safe, suitable, and satisfactory to the Post Office Department.

(ii) The means necessary to transport all mail, regardless of size, weight, or increase in volume during the term of the contract.

(2) Performing service. shall:

Contractors

(i) Carry the mail or supervise the service in person or by an agent.

(ii) Be held accountable for the acts and omissions of the persons to whom they commit the care and transportation of the mail and for careful and faithfu! performance of duties by those persons. They shall discharge any persons engaged in carrying the mail whenever the distribution and traffic manager requires that they take such action.

(iii) Carry the mail with certainty, celerity, and security.

(iv) Transport foreign mail in transit across the territory of the United States.

(v) Not carry, otherwise than in the mail, letters that should go by mail or transport any person engaged in carrying letters that should go by mail.

(3) Maintaining schedules. Contractors shall:

(i) Provide service by schedules satisfactory to the distribution and traffic manager.

(ii) Observe the schedule stated in the advertisement or such other schedule of like running time as may be directed by the transportation requirements and procurement officer having supervision over the route.

(4) Giving preference to mail. § 521.3 (e) (3).

See

(5) Transporting postal employees and equipment. (i) Postal clerks may

(ii) Contractors shall furnish post office officials, on exhibition of credentials, transportation on trips handling mail between scheduled points on the mail route.

(iii) The contractor shall transport, without extra charge, all post office blanks, mail bags, lock and keys, and other postal supplies offered to him. (6) Providing carriers. (i) Qualifications. See § 521.3(e) (7) (ii).

(ii) Persons ineligible. See § 521.3(c) (2) (i) (e) and (e) (7) (ii).

(e) Renewals, extensions, and changes without advertising—(1) Renewals. See § 521.3 (f) (1).

(2) Extensions of contract period. See § 521.3 (f) (2).

(3) Changes in service—(i) Extensions of service. Service may be increased or extended by allowing a pro rata increase in compensation, but the contractor, if he prefers, may elect to relinquish the service on timely notice.

(ii) Reduction of service. Service may be curtailed or discontinued in whole or in part by allowing 1 month's extra pay on the amount of service dispensed with and not exceeding pro rata compensation for the service retained.

(f) Irregularities-(1) Deductions or fines. See § 521.3(g) (2).

(2) Forfeitures or contract annulment. See § 521.3(g) (3). (g) Payments—(1)

§ 521.3 (h) (1).

Payments.

See

(2) Pound rate contracts. Claims for payment for service performed will be submitted by the contractor to the director, transportation division, each accounting period, on Standard Form 1034, "Public Voucher for Purchases and Services Other Than Personal," with two copies of SF 1034A, "Memorandum Copy of SF" 1034, supported by an itemized statement of all service performed, rates per pound, and the amount due. The director, transportation division, will verify all items shown on the itemized statement submitted by the contractor with the reports submitted by the postmasters. SF 1034 will be covered by certification of service on Form 5429, to the postal data center.