II 

112TH CONGRESS 

1ST SESSION S. 353 

To provide for improvements to the United States Postal Service, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 15, 2011 

Ms. COLLINS introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To provide for improvements to the United States Postal 

Service, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘U.S. Postal Service 

5 Improvements Act of 2011’’. 


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1 TITLE I—POSTAL SERVICE 

2 IMPROVEMENTS 

3 SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERV4 ICE RETIREMENT AND DISABILITY FUND. 

5 (a) OFFICE OF PERSONNEL MANAGEMENT DETER6 MINATION.—Not later than 30 days after the date of en7 actment of this Act and in accordance with section 

8 802(c)(2) of the Postal Accountability and Enhancement 

9 Act (5 U.S.C. 8348 note; Public Law 109–435; 120 Stat. 

10 3250), the Office of Personnel Management shall make 

11 a determination or redetermination under section 8348(h) 

12 of title 5, United States Code, consistent with the report 

13 submitted by the Postal Regulatory Commission to the 

14 Postal Service and Congress on June 29, 2010. 

15 (b) AVAILABILITY FOR TRANSFERS.—Section 

16 8348(h)(2) of title 5, United States Code, is amended by 

17 striking subparagraphs (B) and (C) and inserting the fol18 lowing: 

19 ‘‘(B) The Office shall redetermine the Postal surplus 

20 or supplemental liability as of the close of the fiscal year 

21 ending September 30, 2010, and for each year thereafter, 

22 through the fiscal year ending September 30, 2043. If the 

23 result for a fiscal year is a surplus, that amount shall re24 main in the Fund until distribution is authorized under 

25 subparagraph (C). Beginning June 15, 2017, if the result 


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1 is a supplemental liability, the Office shall establish an 

2 amortization schedule, including a series of annual install3 ments commencing on September 30 of the subsequent fis4 cal year, which provides for the liquidation of such liability 

5 by September 30, 2043. 

6 ‘‘(C)(i) As of the close of the fiscal years ending Sep7 tember 30, 2010, 2011, 2012, 2013, 2014, 2015, and 

8 2016, if the result is a surplus, that amount, or any part 

9 of that amount, may be transferred to the Postal Service 

10 Retiree Health Benefits Fund. 

11 ‘‘(ii) As of the close of the fiscal year ending Sep12 tember 30, 2017, and each year thereafter, if the result 

13 is a surplus, that amount, or any part of that amount, 

14 may be transferred to— 

15 ‘‘(I) the Postal Service Retiree Health Benefits 

16 Fund to pay any liability to the Postal Service Re17 tiree Health Benefits Fund; or 

18 ‘‘(II) if all liability to the Postal Service Retiree 

19 Health Benefits Fund is paid— 

20 ‘‘(aa) the Employees’ Compensation Fund 

21 established under section 8147; or 

22 ‘‘(bb) the United States Postal Service for 

23 the repayment of any obligation issued under 

24 section 2005 of title 39. 

25 ‘‘(iii) Any transfer under clause (i) shall be— 


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1 ‘‘(I) made at the discretion of the Board of 

2 Governors of the Postal Service in the amount deter3 mined by the Board of Governors, except the 

4 amount may not exceed the amount under section 

5 8909a(d)(3)(A) remaining to be paid for the applica6 ble fiscal year; and 

7 ‘‘(II) credited to the Postal Service for payment 

8 of the amount required under section 

9 8909a(d)(3)(A) for the applicable fiscal year. 

10 ‘‘(iv) Any transfer under clause (ii) shall be— 

11 ‘‘(I) made at the discretion of the Board of 

12 Governors of the Postal Service in the amount deter13 mined by the Board of Governors; 

14 ‘‘(II) if transferred to the Postal Service Re15 tiree Health Benefits Fund, credited to the Postal 

16 Service for payment of any liability of the Postal 

17 Service to the Postal Service Retiree Health Benefits 

18 Fund for the applicable fiscal year; and 

19 ‘‘(III) if transferred to the Employees’ Com20 pensation Fund established under section 8147, 

21 credited to the Postal Service for payment of any li22 ability of the Postal Service under chapter 81 for the 

23 applicable fiscal year. 

24 ‘‘(v) The Board of Governors shall— 


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1 ‘‘(I) provide written notice to the Office of any 

2 amount to be transferred under this clause; and 

3 ‘‘(II) take all actions of the Board under this 

4 clause by a majority vote. 

5 ‘‘(vi) The Office shall transfer any amount deter6 mined by the Board of Governors to the credit of the Post7 al Service in accordance with this clause.’’. 

8 (c) POSTAL SERVICE SURPLUS OR LIABILITY BASED

9 ON FEDERAL EMPLOYEES RETIREMENT SYSTEM CON10 TRIBUTIONS.—Section 8348 of title 5, United States 

11 Code, is amended by adding at the end the following: 

12 ‘‘(m)(1) In this subsection, the term ‘Postal surplus 

13 or supplemental liability’ means the estimated difference, 

14 as determined by the Office, between— 

15 ‘‘(A) the actuarial present value of all future 

16 benefits payable from the Fund under chapter 84 to 

17 current or former employees of the United States 

18 Postal Service and attributable to civilian employ19 ment with the United States Postal Service; and 

20 ‘‘(B) the sum of— 

21 ‘‘(i) the actuarial present value of deduc22 tions to be withheld from the future basic pay 

23 of employees of the United States Postal Serv24 ice currently subject to chapter 84 under sec25 tion 8422; 


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1 ‘‘(ii) that portion of the Fund balance, as 

2 of the date the Postal surplus or supplemental 

3 liability is determined, attributable to payments 

4 to the Fund by the United States Postal Serv5 ice and its employees, minus benefit payments 

6 attributable to civilian employment with the 

7 United States Postal Service, plus the earnings 

8 on such amounts while in the Fund; and 

9 ‘‘(iii) any other appropriate amount, as de10 termined by the Office in accordance with gen11 erally accepted actuarial practices and prin12 ciples. 

13 ‘‘(2)(A) The Office shall determine the Postal surplus 

14 or supplemental liability as of the close of the fiscal year 

15 ending September 30, 2010, and for each year thereafter, 

16 through the fiscal year ending September 30, 2043. If the 

17 result for a fiscal year is a surplus, that amount shall re18 main in the Fund until distribution is authorized under 

19 subparagraph (B). Beginning June 15, 2017, if the result 

20 is a supplemental liability, the Office shall establish an 

21 amortization schedule, including a series of annual install22 ments commencing on September 30 of the subsequent fis23 cal year, which provides for the liquidation of such liability 

24 by September 30, 2043. 


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1 ‘‘(B)(i) As of the close of the fiscal years ending Sep2 tember 30, 2010, 2011, 2012, 2013, 2014, 2015, and 

3 2016, if the result is a surplus, that amount, or any part 

4 of that amount, may be transferred to the Postal Service 

5 Retiree Health Benefits Fund. 

6 ‘‘(ii) As of the close of the fiscal year ending Sep7 tember 30, 2017, and each year thereafter, if the result 

8 is a surplus, that amount, or any part of that amount, 

9 may be transferred to— 

10 ‘‘(I) the Postal Service Retiree Health Benefits 

11 Fund to pay any liability to the Postal Service Re12 tiree Health Benefits Fund; or 

13 ‘‘(II) if all liability to the Postal Service Retiree 

14 Health Benefits Fund is paid— 

15 ‘‘(aa) the Employees’ Compensation Fund 

16 established under section 8147; or 

17 ‘‘(bb) the United States Postal Service for 

18 the repayment of any obligation issued under 

19 section 2005 of title 39. 

20 ‘‘(iii) Any transfer under clause (i) shall be— 

21 ‘‘(I) made at the discretion of the Board of 

22 Governors of the Postal Service in the amount deter23 mined by the Board of Governors, except the 

24 amount may not exceed the amount under section 


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1 8909a(d)(3)(A) remaining to be paid for the applica2 ble fiscal year; and 

3 ‘‘(II) credited to the Postal Service for payment 

4 of the amount required under section 

5 8909a(d)(3)(A) for the applicable fiscal year. 

6 ‘‘(iv) Any transfer under clause (ii) shall be— 

7 ‘‘(I) made at the discretion of the Board of 

8 Governors of the Postal Service in the amount deter9 mined by the Board of Governors; 

10 ‘‘(II) if transferred to the Postal Service Re11 tiree Health Benefits Fund, credited to the Postal 

12 Service for payment of any liability of the Postal 

13 Service to the Postal Service Retiree Health Benefits 

14 Fund for the applicable fiscal year; and 

15 ‘‘(III) if transferred to the Employees’ Com16 pensation Fund established under section 8147, 

17 credited to the Postal Service for payment of any li18 ability of the Postal Service under chapter 81 for the 

19 applicable fiscal year. 

20 ‘‘(v) The Board of Governors shall— 

21 ‘‘(I) provide written notice to the Office of any 

22 amount to be transferred under this clause; and 

23 ‘‘(II) take all actions of the Board under this 

24 clause by a majority vote. 


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1 ‘‘(vi) The Office shall transfer any amount deter2 mined by the Board of Governors to the credit of the Post3 al Service in accordance with this clause. 

4 ‘‘(C) Amortization schedules established under this 

5 paragraph shall be set in accordance with generally accept6 ed actuarial practices and principles, with interest com7 puted at the rate used in the most recent valuation of the 

8 Civil Service Retirement System. 

9 ‘‘(D) The United States Postal Service shall pay the 

10 amounts so determined to the Office, with payments due 

11 not later than the date scheduled by the Office. 

12 ‘‘(3) Notwithstanding any other provision of law, in 

13 computing the amount of any payment under any other 

14 subsection of this section that is based upon the amount 

15 of the unfunded liability, such payment shall be computed 

16 disregarding that portion of the unfunded liability that the 

17 Office determines will be liquidated by payments under 

18 this subsection. 

19 ‘‘(4)(A) The United States Postal Service may— 

20 ‘‘(i) request the Postal Regulatory Commission 

21 to procure the services of an actuary to review any 

22 determination by the Office under this subsection; or 

23 ‘‘(ii) if the Postal Regulatory Commission does 

24 not object, procure the services of an actuary to reVerDate Mar 15 2010 05:39 Feb 16, 2011 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S353.IS S353

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1 view any determination by the Office under this sub2 section. 

3 ‘‘(B) A review under subparagraph (A) shall be con4 ducted— 

5 ‘‘(i) by an actuary who holds membership in the 

6 American Academy of Actuaries and who is qualified 

7 in the evaluation of pension obligations; and 

8 ‘‘(ii) in accordance with generally accepted ac9 tuarial practices and principles. 

10 ‘‘(C)(i) An actuary that conducts a review under sub11 paragraph (A) shall submit a report on the review to the 

12 entity that procured the services of the actuary. 

13 ‘‘(ii) Upon receipt of a report under clause (i), the 

14 Postal Regulatory Commission or the United States Post15 al Service, as appropriate, shall— 

16 ‘‘(I) determine whether to approve the report; 

17 and 

18 ‘‘(II) if the report is approved, submit the re19 port to the Office and to Congress, together with 

20 any comments of the Postal Regulatory Commission 

21 or United States Postal Service. 

22 ‘‘(D) Notwithstanding any other provision of this 

23 subsection, upon submission of a report by the Postal Reg24 ulatory Commission or United States Postal Service under 

25 subparagraph (C)(ii)(II), the Office shall reconsider its deVerDate Mar 15 2010 05:39 Feb 16, 2011 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S353.IS S353

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1 termination or redetermination in light of such report, and 

2 shall make any appropriate adjustments. The Office shall 

3 submit a report containing the results of its reconsider4 ation to the Postal Regulatory Commission, the United 

5 States Postal Service, and Congress.’’. 

6 SEC. 102. CONSIDERATION OF POSTAL SERVICE FINANCIAL 

7 CONDITION. 

8 Section 1207(c)(2) of title 39, United States Code, 

9 is amended by inserting ‘‘The arbitration board shall con10 sider the financial condition of the Postal Service in ren11 dering its decision.’’ after the first sentence. 

12 SEC. 103. INCREASE IN THE USE OF NEGOTIATED SERVICE 

13 AGREEMENTS. 

14 Section 3622 of title 39, United States Code, is 

15 amended by adding at the end the following: 

16 ‘‘(g) The Postal Service and the Postal Regulatory 

17 Commission shall coordinate actions to identify ways to 

18 increase the use of negotiated service agreements for mar19 ket dominant products by the Postal Service consistent 

20 with subsection (c)(10).’’. 

21 SEC. 104. AREA AND DISTRICT FIELD OFFICES. 

22 (a) IN GENERAL.—Not later than 90 days after the 

23 date of enactment of this Act, the Postmaster General 

24 shall submit a comprehensive strategic plan for guiding 

25 area and district field office structure decisions to— 


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1 (1) the Committee on Homeland Security and 

2 Governmental Affairs of the Senate; and 

3 (2) the Committee on Oversight and Govern4 ment Reform of the House of Representatives. 

5 (b) CONTENTS.—The plan under subsection (a) 

6 shall— 

7 (1) be developed in consultation with the Postal 

8 Regulatory Commission; and 

9 (2) include— 

10 (A) an assessment of the effectiveness of 

11 the plan with respect to increasing efficiency, 

12 eliminating duplication, and reducing unneces13 sary costs; 

14 (B) a review of the field office structure of 

15 the United States Postal Service and describe 

16 the actions to be taken by the United States 

17 Postal Service to modify the structure based on 

18 the review; and 

19 (C) an examination of environmental fac20 tors, mail volumes, technological advancements, 

21 operational considerations, and other issues im22 pacting the strategic goals of the United States 

23 Postal Service under the plan. 

24 (c) REPORT ON PROGRESS.—Not later than January 

25 1, 2012, the Postmaster General shall submit a report on 


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1 the progress of implementing the comprehensive strategic 

2 plan under this section to— 

3 (1) the Committee on Homeland Security and 

4 Governmental Affairs of the Senate; and 

5 (2) the Committee on Oversight and Govern6 ment Reform of the House of Representatives. 

7 (d) UPDATED PLANS.—Not later than January 1, 

8 2015, and each 5 years thereafter, the United States Post9 al Service, in consultation with the Postal Regulatory 

10 Commission, shall submit an updated comprehensive stra11 tegic plan under this section to— 

12 (1) the Committee on Homeland Security and 

13 Governmental Affairs of the Senate; and 

14 (2) the Committee on Oversight and Govern15 ment Reform of the House of Representatives. 

16 SEC. 105. CO-LOCATION OF POST OFFICES AT RETAIL FA17 CILITIES. 

18 (a) IN GENERAL.—Not later than 90 days after the 

19 date of enactment of this Act, the Postmaster General 

20 shall submit a plan on the co-location of post offices at 

21 retail facilities to— 

22 (1) the Committee on Homeland Security and 

23 Governmental Affairs of the Senate; and 

24 (2) the Committee on Oversight and Govern25 ment Reform of the House of Representatives. 


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1 (b) CONTENTS.—The plan under subsection (a) 

2 shall— 

3 (1) be developed in consultation with the Postal 

4 Regulatory Commission; 

5 (2) provide for an increase in the co-location of 

6 post offices at retail facilities, which could supple7 ment, rather than supplant, the services of inde8 pendent post offices, and enable the United States 

9 Postal Service to offer its products and services at 

10 those locations; 

11 (3) consider the impact of any co-location deci12 sions on small communities and rural areas before 

13 taking actions to co-locate post offices; and 

14 (4) ensure that— 

15 (A) service shall continue in small commu16 nities and rural areas after implementation of 

17 the plan; 

18 (B) the United States Postal Service solic19 its community input before making decisions 

20 about co-location; and 

21 (C) the quality of products and services of22 fered in co-located facilities are consistent with 

23 those offered in post offices. 

24 (c) REPORT ON PROGRESS.—Not later than January 

25 1, 2012, the Postmaster General shall submit a report on 


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1 the progress of implementing the plan on the co-location 

2 of post offices at retail facilities under this section to— 

3 (1) the Committee on Homeland Security and 

4 Governmental Affairs of the Senate; and 

5 (2) the Committee on Oversight and Govern6 ment Reform of the House of Representatives. 

7 SEC. 106. ANNUAL REPORT ON UNITED STATES MAILING IN8 DUSTRY. 

9 (a) IN GENERAL.—Not later than November 1 of the 

10 year following the date of enactment of this Act, and each 

11 year thereafter, the Postal Regulatory Commission shall 

12 submit a report on the fiscal stability of the United States 

13 mailing industry with respect to the preceding fiscal year 

14 to— 

15 (1) the Committee on Homeland Security and 

16 Governmental Affairs of the Senate; and 

17 (2) the Committee on Oversight and Govern18 ment Reform of the House of Representatives. 

19 (b) ASSISTANCE.—The United States Postal Service 

20 and any Federal agency involved in oversight or data col21 lection regarding relevant industry sectors shall provide 

22 any assistance to the Postal Regulatory Commission that 

23 the Postal Regulatory Commission determines is necessary 

24 in the preparation of any report under this section. 


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1 SEC. 107. NOTICE AND COMMENT FOR SIGNIFICANT 

2 CHANGES TO MAILING SPECIFICATIONS. 

3 (a) RULEMAKING REQUIRED.—Not later than 180 

4 days after the date of enactment of this Act, the United 

5 States Postal Service shall, after notice and the oppor6 tunity for comment, issue rules requiring that, before 

7 making a change to mailing specifications that could pose 

8 a significant burden to the customers of the United States 

9 Postal Service and that is not reviewed by the Postal Reg10 ulatory Commission, the United States Postal Service 

11 shall— 

12 (1) publish the proposed change in the Federal 

13 Register not later than 30 days before the effective 

14 date of the proposed change; 

15 (2) solicit, and respond in writing to, comments 

16 on the proposed change; and 

17 (3) analyze the financial impact that the pro18 posed change would have on the United States Post19 al Service and the customers of the United States 

20 Postal Service that are affected by the proposed 

21 change. 

22 (b) COMMENTS ON DEFINITIONS.—In issuing the 

23 rules under subsection (a), the United States Postal Serv24 ice shall— 


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1 (1) specifically solicit comments on the appro2 priate definitions of the terms ‘‘mailing specifica3 tions’’ and ‘‘significant burden’’; and 

4 (2) specifically respond to each comment re5 ceived under paragraph (1) before issuing final 

6 rules. 

7 TITLE II—POSTAL 

8 CONTRACTING PROVISIONS 

9 SEC. 201. CONTRACTING PROVISIONS. 

10 (a) IN GENERAL.—Part I of title 39, United States 

11 Code, is amended by adding at the end the following: 

‘‘CHAPTER 7—CONTRACTING PROVISIONS

‘‘Sec. 

‘‘701. Definitions. 

‘‘702. Advocate for competition. 

‘‘703. Delegation of contracting authority. 

‘‘704. Posting of noncompetitive purchase requests for noncompetitive contracts. 

‘‘705. Review of ethical issues. 

‘‘706. Ethical restrictions on participation in certain contracting activity. 

12 ‘‘§ 701. Definitions 

13 ‘‘In this chapter— 

14 ‘‘(1) the term ‘contracting officer’ means an 

15 employee of a covered postal entity who has author16 ity to enter into a postal contract; 

17 ‘‘(2) the term ‘covered postal entity’ means— 

18 ‘‘(A) the United States Postal Service; or 

19 ‘‘(B) the Postal Regulatory Commission; 

20 ‘‘(3) the term ‘head of a covered postal entity’ 

21 means— 


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1 ‘‘(A) in the case of the United States Post2 al Service, the Postmaster General; or 

3 ‘‘(B) in the case of the Postal Regulatory 

4 Commission, the Chairman of the Postal Regu5 latory Commission; 

6 ‘‘(4) the term ‘postal contract’ means any con7 tract (including any agreement or memorandum of 

8 understanding) entered into by a covered postal enti9 ty for the procurement of goods or services; and 

10 ‘‘(5) the term ‘senior procurement executive’ 

11 means the senior procurement executive of a covered 

12 postal entity. 

13 ‘‘§ 702. Advocate for competition 

14 ‘‘(a) ESTABLISHMENT AND DESIGNATION.— 

15 ‘‘(1) There is established in each covered postal 

16 entity an advocate for competition. 

17 ‘‘(2) The head of each covered postal entity 

18 shall designate for the covered postal entity 1 or 

19 more officers or employees (other than the senior 

20 procurement executive) to serve as the advocate for 

21 competition. 

22 ‘‘(b) RESPONSIBILITIES.—The advocate for competi23 tion of each covered postal entity shall— 

24 ‘‘(1) be responsible for promoting competition 

25 to the maximum extent practicable consistent with 


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1 obtaining best value by promoting the acquisition of 

2 commercial items and challenging barriers to com3 petition; 

4 ‘‘(2) review the procurement activities of the 

5 covered postal entity; and 

6 ‘‘(3) prepare and transmit to the head of each 

7 covered postal entity, the senior procurement execu8 tive of each covered postal entity, the Board of Gov9 ernors of the United States Postal Service, and Con10 gress, an annual report describing— 

11 ‘‘(A) the activities of the advocate under 

12 this section; 

13 ‘‘(B) initiatives required to promote com14 petition; 

15 ‘‘(C) barriers to competition that remain; 

16 and 

17 ‘‘(D) the number of waivers made by each 

18 covered postal entity under section 704(c). 

19 ‘‘§ 703. Delegation of contracting authority 

20 ‘‘(a) IN GENERAL.— 

21 ‘‘(1) POLICY.—Not later than 60 days after the 

22 date of enactment of the U.S. Postal Service Im23 provements Act of 2011, the head of each covered 

24 postal entity shall issue a policy on contracting offiVerDate Mar 15 2010 05:39 Feb 16, 2011 Jkt 099200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S353.IS S353

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1 cer delegations of authority for the covered postal 

2 entity. 

3 ‘‘(2) CONTENTS.—The policy issued under 

4 paragraph (1) shall require that— 

5 ‘‘(A) notwithstanding any delegation of au6 thority with respect to postal contracts, the ulti7 mate responsibility and accountability for the 

8 award and administration of postal contracts 

9 resides with the senior procurement executive; 

10 and 

11 ‘‘(B) a contracting officer shall maintain 

12 an awareness of and engagement in the activi13 ties being performed on postal contracts of 

14 which that officer has cognizance, notwith15 standing any delegation of authority that may 

16 have been executed. 

17 ‘‘(b) POSTING OF DELEGATIONS.— 

18 ‘‘(1) IN GENERAL.—The head of each covered 

19 postal entity shall make any delegation of authority 

20 for postal contracts outside the functional con21 tracting unit readily available and accessible on the 

22 Web site of the covered postal entity. 

23 ‘‘(2) EFFECTIVE DATE.—This paragraph shall 

24 apply to any delegation of authority made on or 


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1 after 30 days after the date of enactment of the 

2 U.S. Postal Service Improvements Act of 2011. 

3 ‘‘§ 704. Posting of noncompetitive purchase requests 

4 for noncompetitive contracts 

5 ‘‘(a) POSTING REQUIRED.— 

6 ‘‘(1) POSTAL REGULATORY COMMISSION.—The 

7 Postal Regulatory Commission shall make the non8 competitive purchase request for any noncompetitive 

9 award, including the rationale supporting the non10 competitive award, publicly available on the Web site 

11 of the Postal Regulatory Commission— 

12 ‘‘(A) not later than 14 days after the date 

13 of the award of the noncompetitive contract; or 

14 ‘‘(B) not later than 30 days after the date 

15 of the award of the noncompetitive contract, if 

16 the basis for the award was a compelling busi17 ness interest. 

18 ‘‘(2) UNITED STATES POSTAL SERVICE.—The 

19 United States Postal Service shall make the non20 competitive purchase request for any noncompetitive 

21 award of a postal contract valued at $250,000 or 

22 more, including the rationale supporting the non23 competitive award, publicly available on the Web site 

24 of the United States Postal Service— 


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1 ‘‘(A) not later than 14 days after the date 

2 of the award; or 

3 ‘‘(B) not later than 30 days after the date 

4 of the award, if the basis for the award was a 

5 compelling business interest. 

6 ‘‘(3) ADJUSTMENTS TO THE POSTING THRESH7 OLD FOR THE UNITED STATES POSTAL SERVICE.— 

8 ‘‘(A) REVIEW AND DETERMINATION.—Not 

9 later than January 31 of each year, the United 

10 States Postal Service shall— 

11 ‘‘(i) review the $250,000 threshold es12 tablished under paragraph (2); and 

13 ‘‘(ii) based on any change in the Con14 sumer Price Index for all-urban consumers 

15 of the Department of Labor, determine 

16 whether an adjustment to the threshold 

17 shall be made. 

18 ‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad19 justment under subparagraph (A) shall be made 

20 in increments of $5,000. If the United States 

21 Postal Service determines that a change in the 

22 Consumer Price Index for a year would require 

23 an adjustment in an amount that is less than 

24 $5,000, the United States Postal Service may 


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1 not make an adjustment to the threshold for 

2 the year. 

3 ‘‘(4) EFFECTIVE DATE.—This subsection shall 

4 apply to any noncompetitive contract awarded on or 

5 after the date that is 90 days after the date of en6 actment of the U.S. Postal Service Improvements 

7 Act of 2011. 

8 ‘‘(b) PUBLIC AVAILABILITY.— 

9 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

10 the information required to be made publicly avail11 able by a covered postal entity under subsection (a) 

12 shall be readily accessible on the Web site of the cov13 ered postal entity. 

14 ‘‘(2) PROTECTION OF PROPRIETARY INFORMA15 TION.—A covered postal entity shall— 

16 ‘‘(A) carefully screen any description of the 

17 rationale supporting a noncompetitive award re18 quired to be made publicly available under sub19 section (a) to determine whether the description 

20 includes proprietary data (including any ref21 erence or citation to the proprietary data) or se22 curity-related information; and 

23 ‘‘(B) remove any proprietary data or secu24 rity-related information before making publicly 


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1 available a description of the rational sup2 porting a noncompetitive award. 

3 ‘‘(c) WAIVERS.— 

4 ‘‘(1) WAIVER PERMITTED.—If a covered postal 

5 entity determines that making a noncompetitive pur6 chase request publicly available would risk placing 

7 the United States Postal Service at a competitive 

8 disadvantage relative to a private sector competitor, 

9 the senior procurement executive, in consultation 

10 with the advocate for competition of the covered 

11 postal entity, may waive the requirements under 

12 subsection (a). 

13 ‘‘(2) FORM AND CONTENT OF WAIVER.— 

14 ‘‘(A) FORM.—A waiver under paragraph 

15 (1) shall be in the form of a written determina16 tion placed in the file of the contract to which 

17 the noncompetitive purchase agreement relates. 

18 ‘‘(B) CONTENT.—A waiver under para19 graph (1) shall include— 

20 ‘‘(i) a description of the risk associ21 ated with making the noncompetitive pur22 chase request publicly available; and 

23 ‘‘(ii) a statement that redaction of 

24 sensitive information in the noncompetitive 

25 purchase request would not be sufficient to 


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1 protect the United States Postal Service 

2 from being placed at a competitive dis3 advantage relative to a private sector com4 petitor. 

5 ‘‘(3) DELEGATION OF WAIVER AUTHORITY.—A 

6 covered postal entity may not delegate the authority 

7 to approve a waiver under paragraph (1) to any em8 ployee having less authority than the senior procure9 ment executive. 

10 ‘‘§ 705. Review of ethical issues 

11 ‘‘If a contracting officer identifies any ethical issues 

12 relating to a proposed contract and submits those issues 

13 and that proposed contract to the designated ethics official 

14 for the covered postal entity before the awarding of that 

15 contract, that ethics official shall— 

16 ‘‘(1) review the proposed contract; and 

17 ‘‘(2) advise the contracting officer on the appro18 priate resolution of ethical issues. 

19 ‘‘§ 706. Ethical restrictions on participation in certain 

20 contracting activity 

21 ‘‘(a) DEFINITIONS.—In this section— 

22 ‘‘(1) the term ‘covered employee’ means— 

23 ‘‘(A) a contracting officer; or 

24 ‘‘(B) any employee of a covered postal en25 tity whose decisionmaking affects a postal conVerDate Mar 15 2010 05:39 Feb 16, 2011 Jkt 099200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S353.IS S353

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1 tract as determined by regulations prescribed 

2 by the head of a covered postal entity; 

3 ‘‘(2) the term ‘final conviction’ means a convic4 tion, whether entered on a verdict or plea, including 

5 a plea of nolo contendere, for which a sentence has 

6 been imposed; and 

7 ‘‘(3) the term ‘covered relationship’ means a 

8 covered relationship described in section 

9 2635.502(b)(1) of title 5, Code of Federal Regula10 tions, or any successor thereto. 

11 ‘‘(b) IN GENERAL.— 

12 ‘‘(1) REGULATIONS.—The head of each covered 

13 postal entity shall prescribe regulations that— 

14 ‘‘(A) require a covered employee to include 

15 in the file of any noncompetitive purchase re16 quest for a noncompetitive postal contract a 

17 written certification that— 

18 ‘‘(i) discloses any covered relationship 

19 of the covered employee; and 

20 ‘‘(ii) the covered employee will not 

21 take any action with respect to the non22 competitive purchase request that affects 

23 the financial interests of a friend, relative, 

24 or person with whom the covered employee 

25 is affiliated in a nongovernmental capacity, 


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1 or otherwise gives rise to an appearance of 

2 the use of public office for private gain, as 

3 described in section 2635.702 of title 5, 

4 Code of Federal Regulations, or any suc5 cessor thereto; 

6 ‘‘(B) require a contracting officer to con7 sult with the ethics counsel for the covered 

8 postal entity regarding any disclosure made by 

9 a covered employee under subparagraph (A)(i), 

10 to determine whether participation by the cov11 ered employee in the noncompetitive purchase 

12 request would give rise to a violation of part 

13 2635 of title 5, Code of Federal Regulations 

14 (commonly referred to as the ‘Standards of 

15 Ethical Conduct for Employees of the Executive 

16 Branch’); 

17 ‘‘(C) require the ethics counsel for a cov18 ered postal entity to review any disclosure made 

19 by a contracting officer under subparagraph 

20 (A)(i) to determine whether participation by the 

21 contracting officer in the noncompetitive pur22 chase request would give rise to a violation of 

23 part 2635 of title 5, Code of Federal Regula24 tions (commonly referred to as the ‘Standards 


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1 of Ethical Conduct for Employees of the Execu2 tive Branch’), or any successor thereto; 

3 ‘‘(D) under subsections (d) and (e) of sec4 tion 2635.50 of title 5, Code of Federal Regula5 tions, or any successor thereto, require the eth6 ics counsel for a covered postal entity to— 

7 ‘‘(i) authorize a covered employee that 

8 makes a disclosure under subparagraph 

9 (A)(i) to participate in the noncompetitive 

10 postal contract; or 

11 ‘‘(ii) disqualify a covered employee 

12 that makes a disclosure under subpara13 graph (A)(i) from participating in the non14 competitive postal contract; 

15 ‘‘(E) require a contractor to timely disclose 

16 to the contracting officer in a bid, solicitation, 

17 award, or performance of a postal contract any 

18 conflict of interest with a covered employee; and 

19 ‘‘(F) include authority for the head of the 

20 covered postal entity to a grant a waiver or oth21 erwise mitigate any organizational or personal 

22 conflict of interest, if the head of the covered 

23 postal entity determines that the waiver or miti24 gation is in the best interests of the Postal 

25 Service. 


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1 ‘‘(2) POSTING OF WAIVERS.—Not later than 30 

2 days after the head of a covered postal entity grants 

3 a waiver described in paragraph (1)(F), the head of 

4 the covered postal entity shall make the waiver pub5 licly available on the Web site of the covered postal 

6 entity. 

7 ‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 

8 ‘‘(1) UNLAWFUL CONDUCT.—In any case in 

9 which there is a final conviction for a violation of 

10 any provision of chapter 11 of title 18 relating to a 

11 postal contract, the head of a covered postal entity 

12 may— 

13 ‘‘(A) void that contract; and 

14 ‘‘(B) recover the amounts expended and 

15 property transferred by the covered postal enti16 ty under that contract. 

17 ‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT

18 INFORMATION.— 

19 ‘‘(A) IN GENERAL.—In any case where a 

20 contractor under a postal contract fails to time21 ly disclose a conflict of interest to the appro22 priate contracting officer as required under the 

23 regulations promulgated under subsection 

24 (b)(1)(D), the head of a covered postal entity 

25 may— 


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1 ‘‘(i) void that contract; and 

2 ‘‘(ii) recover the amounts expended 

3 and property transferred by the covered 

4 postal entity under that contract. 

5 ‘‘(B) CONVICTION OR ADMINISTRATIVE DE6 TERMINATION.—A case described under sub7 paragraph (A) is any case in which— 

8 ‘‘(i) there is a final conviction for an 

9 offense punishable under section 27(e) of 

10 the Office of Federal Procurement Policy 

11 Act (41 U.S.C. 423(e)); or 

12 ‘‘(ii) the head of a covered postal enti13 ty determines, based upon a preponderance 

14 of the evidence, that the contractor or 

15 someone acting for the contractor has en16 gaged in conduct constituting an offense 

17 punishable under section 27(e) of that 

18 Act.’’. 

19 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

20 The table of chapters for part I of title 39, United States 

21 Code, is amended by adding at the end the following: 

‘‘7. Contracting Provisions ....................................................................... 701’’. 


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1 TITLE III—FEDERAL WORKERS 

2 COMPENSATION REFORMS 

3 FOR RETIREMENT ELIGIBLE 

4 EMPLOYEES 

5 SEC. 301. FEDERAL WORKERS COMPENSATION REFORMS 

6 FOR RETIREMENT ELIGIBLE EMPLOYEES. 

7 (a) TRANSITION TO RETIREMENT.— 

8 (1) IN GENERAL.—Chapter 81 of title 5, United 

9 States Code, is amended by inserting after section 

10 8106 the following: 

11 ‘‘§ 8106a. Transition to retirement 

12 ‘‘(a) DEFINITIONS.—In this section— 

13 ‘‘(1) the term ‘covered employee’ means an em14 ployee who— 

15 ‘‘(A) is paid compensation under section 

16 8105 or 8106; and 

17 ‘‘(B) on or after attaining retirement age 

18 is eligible for an annuity under chapter 83 or 

19 84 (other than a survivor annuity); and 

20 ‘‘(2) the term ‘retirement age’ has the meaning 

21 given under section 216(l)(1) of the Social Security 

22 Act (42 U.S.C. 416(l)(1)). 

23 ‘‘(b) Notwithstanding any other provision of this 

24 chapter, the payment of compensation under section 8105 


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1 or 8106 to a covered employee shall terminate on the date 

2 that the covered employee— 

3 ‘‘(1) attains retirement age and is eligible for 

4 an annuity under chapter 83 or 84 (other than a 

5 survivor annuity); or 

6 ‘‘(2) after attaining retirement age becomes eli7 gible for an annuity under chapter 83 or 84 (other 

8 than a survivor annuity). 

9 ‘‘(c) Not later than 1 year before the date that a cov10 ered employee attains retirement age or subsequently be11 comes eligible for an annuity under chapter 83 or 84 

12 (other than a survivor annuity), the Secretary of Labor 

13 shall provide notice of this section to— 

14 ‘‘(1) the covered employee; 

15 ‘‘(2) the employing agency of that covered em16 ployee; and 

17 ‘‘(3) the Office of Personnel Management. 

18 ‘‘(d) The employing agency of a covered employee 

19 shall file an application for an annuity with the Office of 

20 Personnel Management in accordance with section 8352 

21 or 8471.’’. 

22 (2) TECHNICAL AND CONFORMING AMEND23 MENT.—The table of sections for chapter 81 of title 

24 5, United States Code, is amended by inserting after 

25 the item relating to section 8106 the following: 

‘‘Sec. 8106a. Transition to retirement.’’. 


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1 (b) FILING OF APPLICATIONS.— 

2 (1) CIVIL SERVICE RETIREMENT SYSTEM.— 

3 (A) IN GENERAL.—Chapter 83 of title 5, 

4 United States Code, is amended by inserting 

5 after section 8351 the following: 

6 ‘‘§ 8352. Employees transitioning from workers com7 pensation 

8 ‘‘(a) DEFINITION.—In this section, the term ‘covered 

9 employee’ means an employee who is a covered employee 

10 as defined under section 8106a(a)(1) and is eligible for 

11 an annuity under this chapter. 

12 ‘‘(b) APPLICATIONS.—Not later than 1 year before 

13 the date of the termination of payments of compensation 

14 under section 8106a(b) to a covered employee who is eligi15 ble for an annuity under this chapter, the employing agen16 cy of that covered employee shall file an application for 

17 an annuity for that covered employee under this chapter 

18 with the Office of Personnel Management. 

19 ‘‘(c) REGULATIONS.—The Office of Personnel Man20 agement shall prescribe regulations to carry out this sec21 tion.’’. 

22 (B) TECHNICAL AND CONFORMING AMEND23 MENT.—The table of sections for chapter 83 of 

24 title 5, United States Code, is amended by inVerDate Mar 15 2010 05:39 Feb 16, 2011 Jkt 099200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S353.IS S353

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1 serting after the item relating to section 8351 

2 the following: 

‘‘Sec. 8352. Employees transitioning from workers compensation.’’. 

3 (2) FEDERAL EMPLOYEES RETIREMENT SYS4 TEM.— 

5 (A) IN GENERAL.—Chapter 84 of title 5, 

6 United States Code, is amended by inserting 

7 after section 8470 the following: 

8 ‘‘§ 8471. Employees transitioning from workers com9 pensation 

10 ‘‘(a) DEFINITION.—In this section, the term ‘covered 

11 employee’ means an employee who is a covered employee 

12 as defined under section 8106a(a)(1) and is eligible for 

13 an annuity under this chapter. 

14 ‘‘(b) APPLICATIONS.—Not later than 1 year before 

15 the date of the termination of payments of compensation 

16 under section 8106a(b) to a covered employee who is eligi17 ble for an annuity under this chapter, the employing agen18 cy of that covered employee shall file an application for 

19 an annuity for that covered employee under this chapter 

20 with the Office of Personnel Management. 

21 ‘‘(c) REGULATIONS.—The Office of Personnel Man22 agement shall prescribe regulations to carry out this sec23 tion.’’. 

24 (B) TECHNICAL AND CONFORMING AMEND25 MENT.—The table of sections for chapter 84 of 


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1 title 5, United States Code, is amended by in2 serting after the item relating to section 8456 

3 the following: 

‘‘Sec. 8471. Employees transitioning from workers compensation.’’. 

4 SEC. 302. REGULATIONS. 

5 Not later than 180 days after the date of enactment 

6 of this Act, the Secretary of Labor, after consultation with 

7 the Director of the Office of Personnel Management, shall 

8 prescribe regulations to carry out this title. 

9 SEC. 303. EFFECTIVE DATE. 

10 (a) IN GENERAL.—Except as provided under sub11 section (b), this title (including the amendments made by 

12 this tile) shall take effect on the date of enactment of this 

13 Act. 

14 (b) TERMINATION OF COMPENSATION.—Section 

15 8106a(b) of title 5, United States Code, (as added by sec16 tion 301 of this Act) shall take effect 1 year after the 

17 date regulations are prescribed under section 302. 

Æ 


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