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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 353 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``U.S. Postal Service Improvements Act 
of 2011''.

                  TITLE I--POSTAL SERVICE IMPROVEMENTS

SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERVICE RETIREMENT AND 
              DISABILITY FUND.

    (a) Office of Personnel Management Determination.--Not later than 
30 days after the date of enactment of this Act and in accordance with 
section 802(c)(2) of the Postal Accountability and Enhancement Act (5 
U.S.C. 8348 note; Public Law 109-435; 120 Stat. 3250), the Office of 
Personnel Management shall make a determination or redetermination 
under section 8348(h) of title 5, United States Code, consistent with 
the report submitted by the Postal Regulatory Commission to the Postal 
Service and Congress on June 29, 2010.
    (b) Availability for Transfers.--Section 8348(h)(2) of title 5, 
United States Code, is amended by striking subparagraphs (B) and (C) 
and inserting the following:
    ``(B) The Office shall redetermine the Postal surplus or 
supplemental liability as of the close of the fiscal year ending 
September 30, 2010, and for each year thereafter, through the fiscal 
year ending September 30, 2043. If the result for a fiscal year is a 
surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (C). Beginning June 15, 2017, if the 
result is a supplemental liability, the Office shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for the liquidation of such liability by September 30, 2043.
    ``(C)(i) As of the close of the fiscal years ending September 30, 
2010, 2011, 2012, 2013, 2014, 2015, and 2016, if the result is a 
surplus, that amount, or any part of that amount, may be transferred to 
the Postal Service Retiree Health Benefits Fund.
    ``(ii) As of the close of the fiscal year ending September 30, 
2017, and each year thereafter, if the result is a surplus, that 
amount, or any part of that amount, may be transferred to--
            ``(I) the Postal Service Retiree Health Benefits Fund to 
        pay any liability to the Postal Service Retiree Health Benefits 
        Fund; or
            ``(II) if all liability to the Postal Service Retiree 
        Health Benefits Fund is paid--
                    ``(aa) the Employees' Compensation Fund established 
                under section 8147; or
                    ``(bb) the United States Postal Service for the 
                repayment of any obligation issued under section 2005 
                of title 39.
    ``(iii) Any transfer under clause (i) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors, except the amount may not exceed the amount under 
        section 8909a(d)(3)(A) remaining to be paid for the applicable 
        fiscal year; and
            ``(II) credited to the Postal Service for payment of the 
        amount required under section 8909a(d)(3)(A) for the applicable 
        fiscal year.
    ``(iv) Any transfer under clause (ii) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors;
            ``(II) if transferred to the Postal Service Retiree Health 
        Benefits Fund, credited to the Postal Service for payment of 
        any liability of the Postal Service to the Postal Service 
        Retiree Health Benefits Fund for the applicable fiscal year; 
        and
            ``(III) if transferred to the Employees' Compensation Fund 
        established under section 8147, credited to the Postal Service 
        for payment of any liability of the Postal Service under 
        chapter 81 for the applicable fiscal year.
    ``(v) The Board of Governors shall--
            ``(I) provide written notice to the Office of any amount to 
        be transferred under this clause; and
            ``(II) take all actions of the Board under this clause by a 
        majority vote.
    ``(vi) The Office shall transfer any amount determined by the Board 
of Governors to the credit of the Postal Service in accordance with 
this clause.''.
    (c) Postal Service Surplus or Liability Based on Federal Employees 
Retirement System Contributions.--Section 8348 of title 5, United 
States Code, is amended by adding at the end the following:
    ``(m)(1) In this subsection, the term `Postal surplus or 
supplemental liability' means the estimated difference, as determined 
by the Office, between--
            ``(A) the actuarial present value of all future benefits 
        payable from the Fund under chapter 84 to current or former 
        employees of the United States Postal Service and attributable 
        to civilian employment with the United States Postal Service; 
        and
            ``(B) the sum of--
                    ``(i) the actuarial present value of deductions to 
                be withheld from the future basic pay of employees of 
                the United States Postal Service currently subject to 
                chapter 84 under section 8422;
                    ``(ii) that portion of the Fund balance, as of the 
                date the Postal surplus or supplemental liability is 
                determined, attributable to payments to the Fund by the 
                United States Postal Service and its employees, minus 
                benefit payments attributable to civilian employment 
                with the United States Postal Service, plus the 
                earnings on such amounts while in the Fund; and
                    ``(iii) any other appropriate amount, as determined 
                by the Office in accordance with generally accepted 
                actuarial practices and principles.
    ``(2)(A) The Office shall determine the Postal surplus or 
supplemental liability as of the close of the fiscal year ending 
September 30, 2010, and for each year thereafter, through the fiscal 
year ending September 30, 2043. If the result for a fiscal year is a 
surplus, that amount shall remain in the Fund until distribution is 
authorized under subparagraph (B). Beginning June 15, 2017, if the 
result is a supplemental liability, the Office shall establish an 
amortization schedule, including a series of annual installments 
commencing on September 30 of the subsequent fiscal year, which 
provides for the liquidation of such liability by September 30, 2043.
    ``(B)(i) As of the close of the fiscal years ending September 30, 
2010, 2011, 2012, 2013, 2014, 2015, and 2016, if the result is a 
surplus, that amount, or any part of that amount, may be transferred to 
the Postal Service Retiree Health Benefits Fund.
    ``(ii) As of the close of the fiscal year ending September 30, 
2017, and each year thereafter, if the result is a surplus, that 
amount, or any part of that amount, may be transferred to--
            ``(I) the Postal Service Retiree Health Benefits Fund to 
        pay any liability to the Postal Service Retiree Health Benefits 
        Fund; or
            ``(II) if all liability to the Postal Service Retiree 
        Health Benefits Fund is paid--
                    ``(aa) the Employees' Compensation Fund established 
                under section 8147; or
                    ``(bb) the United States Postal Service for the 
                repayment of any obligation issued under section 2005 
                of title 39.
    ``(iii) Any transfer under clause (i) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors, except the amount may not exceed the amount under 
        section 8909a(d)(3)(A) remaining to be paid for the applicable 
        fiscal year; and
            ``(II) credited to the Postal Service for payment of the 
        amount required under section 8909a(d)(3)(A) for the applicable 
        fiscal year.
    ``(iv) Any transfer under clause (ii) shall be--
            ``(I) made at the discretion of the Board of Governors of 
        the Postal Service in the amount determined by the Board of 
        Governors;
            ``(II) if transferred to the Postal Service Retiree Health 
        Benefits Fund, credited to the Postal Service for payment of 
        any liability of the Postal Service to the Postal Service 
        Retiree Health Benefits Fund for the applicable fiscal year; 
        and
            ``(III) if transferred to the Employees' Compensation Fund 
        established under section 8147, credited to the Postal Service 
        for payment of any liability of the Postal Service under 
        chapter 81 for the applicable fiscal year.
    ``(v) The Board of Governors shall--
            ``(I) provide written notice to the Office of any amount to 
        be transferred under this clause; and
            ``(II) take all actions of the Board under this clause by a 
        majority vote.
    ``(vi) The Office shall transfer any amount determined by the Board 
of Governors to the credit of the Postal Service in accordance with 
this clause.
    ``(C) Amortization schedules established under this paragraph shall 
be set in accordance with generally accepted actuarial practices and 
principles, with interest computed at the rate used in the most recent 
valuation of the Civil Service Retirement System.
    ``(D) The United States Postal Service shall pay the amounts so 
determined to the Office, with payments due not later than the date 
scheduled by the Office.
    ``(3) Notwithstanding any other provision of law, in computing the 
amount of any payment under any other subsection of this section that 
is based upon the amount of the unfunded liability, such payment shall 
be computed disregarding that portion of the unfunded liability that 
the Office determines will be liquidated by payments under this 
subsection.
    ``(4)(A) The United States Postal Service may--
            ``(i) request the Postal Regulatory Commission to procure 
        the services of an actuary to review any determination by the 
        Office under this subsection; or
            ``(ii) if the Postal Regulatory Commission does not object, 
        procure the services of an actuary to review any determination 
        by the Office under this subsection.
    ``(B) A review under subparagraph (A) shall be conducted--
            ``(i) by an actuary who holds membership in the American 
        Academy of Actuaries and who is qualified in the evaluation of 
        pension obligations; and
            ``(ii) in accordance with generally accepted actuarial 
        practices and principles.
    ``(C)(i) An actuary that conducts a review under subparagraph (A) 
shall submit a report on the review to the entity that procured the 
services of the actuary.
    ``(ii) Upon receipt of a report under clause (i), the Postal 
Regulatory Commission or the United States Postal Service, as 
appropriate, shall--
            ``(I) determine whether to approve the report; and
            ``(II) if the report is approved, submit the report to the 
        Office and to Congress, together with any comments of the 
        Postal Regulatory Commission or United States Postal Service.
    ``(D) Notwithstanding any other provision of this subsection, upon 
submission of a report by the Postal Regulatory Commission or United 
States Postal Service under subparagraph (C)(ii)(II), the Office shall 
reconsider its determination or redetermination in light of such 
report, and shall make any appropriate adjustments. The Office shall 
submit a report containing the results of its reconsideration to the 
Postal Regulatory Commission, the United States Postal Service, and 
Congress.''.

SEC. 102. CONSIDERATION OF POSTAL SERVICE FINANCIAL CONDITION.

    Section 1207(c)(2) of title 39, United States Code, is amended by 
inserting ``The arbitration board shall consider the financial 
condition of the Postal Service in rendering its decision.'' after the 
first sentence.

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

    Section 3622 of title 39, United States Code, is amended by adding 
at the end the following:
    ``(g) The Postal Service and the Postal Regulatory Commission shall 
coordinate actions to identify ways to increase the use of negotiated 
service agreements for market dominant products by the Postal Service 
consistent with subsection (c)(10).''.

SEC. 104. AREA AND DISTRICT FIELD OFFICES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Postmaster General shall submit a comprehensive 
strategic plan for guiding area and district field office structure 
decisions to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (b) Contents.--The plan under subsection (a) shall--
            (1) be developed in consultation with the Postal Regulatory 
        Commission; and
            (2) include--
                    (A) an assessment of the effectiveness of the plan 
                with respect to increasing efficiency, eliminating 
                duplication, and reducing unnecessary costs;
                    (B) a review of the field office structure of the 
                United States Postal Service and describe the actions 
                to be taken by the United States Postal Service to 
                modify the structure based on the review; and
                    (C) an examination of environmental factors, mail 
                volumes, technological advancements, operational 
                considerations, and other issues impacting the 
                strategic goals of the United States Postal Service 
                under the plan.
    (c) Report on Progress.--Not later than January 1, 2012, the 
Postmaster General shall submit a report on the progress of 
implementing the comprehensive strategic plan under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (d) Updated Plans.--Not later than January 1, 2015, and each 5 
years thereafter, the United States Postal Service, in consultation 
with the Postal Regulatory Commission, shall submit an updated 
comprehensive strategic plan under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.

SEC. 105. CO-LOCATION OF POST OFFICES AT RETAIL FACILITIES.

    (a) In General.--Not later than 90 days after the date of enactment 
of this Act, the Postmaster General shall submit a plan on the co-
location of post offices at retail facilities to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (b) Contents.--The plan under subsection (a) shall--
            (1) be developed in consultation with the Postal Regulatory 
        Commission;
            (2) provide for an increase in the co-location of post 
        offices at retail facilities, which could supplement, rather 
        than supplant, the services of independent post offices, and 
        enable the United States Postal Service to offer its products 
        and services at those locations;
            (3) consider the impact of any co-location decisions on 
        small communities and rural areas before taking actions to co-
        locate post offices; and
            (4) ensure that--
                    (A) service shall continue in small communities and 
                rural areas after implementation of the plan;
                    (B) the United States Postal Service solicits 
                community input before making decisions about co-
                location; and
                    (C) the quality of products and services offered in 
                co-located facilities are consistent with those offered 
                in post offices.
    (c) Report on Progress.--Not later than January 1, 2012, the 
Postmaster General shall submit a report on the progress of 
implementing the plan on the co-location of post offices at retail 
facilities under this section to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.

SEC. 106. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

    (a) In General.--Not later than November 1 of the year following 
the date of enactment of this Act, and each year thereafter, the Postal 
Regulatory Commission shall submit a report on the fiscal stability of 
the United States mailing industry with respect to the preceding fiscal 
year to--
            (1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate; and
            (2) the Committee on Oversight and Government Reform of the 
        House of Representatives.
    (b) Assistance.--The United States Postal Service and any Federal 
agency involved in oversight or data collection regarding relevant 
industry sectors shall provide any assistance to the Postal Regulatory 
Commission that the Postal Regulatory Commission determines is 
necessary in the preparation of any report under this section.

SEC. 107. NOTICE AND COMMENT FOR SIGNIFICANT CHANGES TO MAILING 
              SPECIFICATIONS.

    (a) Rulemaking Required.--Not later than 180 days after the date of 
enactment of this Act, the United States Postal Service shall, after 
notice and the opportunity for comment, issue rules requiring that, 
before making a change to mailing specifications that could pose a 
significant burden to the customers of the United States Postal Service 
and that is not reviewed by the Postal Regulatory Commission, the 
United States Postal Service shall--
            (1) publish the proposed change in the Federal Register not 
        later than 30 days before the effective date of the proposed 
        change;
            (2) solicit, and respond in writing to, comments on the 
        proposed change; and
            (3) analyze the financial impact that the proposed change 
        would have on the United States Postal Service and the 
        customers of the United States Postal Service that are affected 
        by the proposed change.
    (b) Comments on Definitions.--In issuing the rules under subsection 
(a), the United States Postal Service shall--
            (1) specifically solicit comments on the appropriate 
        definitions of the terms ``mailing specifications'' and 
        ``significant burden''; and
            (2) specifically respond to each comment received under 
        paragraph (1) before issuing final rules.

                TITLE II--POSTAL CONTRACTING PROVISIONS

SEC. 201. CONTRACTING PROVISIONS.

    (a) In General.--Part I of title 39, United States 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.
``Sec. 701. Definitions
    ``In this chapter--
            ``(1) the term `contracting officer' means an employee of a 
        covered postal entity who has authority to enter into a postal 
        contract;
            ``(2) the term `covered postal entity' means--
                    ``(A) the United States Postal Service; or
                    ``(B) the Postal Regulatory Commission;
            ``(3) the term `head of a covered postal entity' means--
                    ``(A) in the case of the United States Postal 
                Service, the Postmaster General; or
                    ``(B) in the case of the Postal Regulatory 
                Commission, the Chairman of the Postal Regulatory 
                Commission;
            ``(4) the term `postal contract' means any contract 
        (including any agreement or memorandum of understanding) 
        entered into by a covered postal entity for the procurement of 
        goods or services; and
            ``(5) the term `senior procurement executive' means the 
        senior procurement executive of a covered postal entity.
``Sec. 702. Advocate for competition
    ``(a) Establishment and Designation.--
            ``(1) There is established in each covered postal entity an 
        advocate for competition.
            ``(2) The head of each covered postal entity shall 
        designate for the covered postal entity 1 or more officers or 
        employees (other than the senior procurement executive) to 
        serve as the advocate for competition.
    ``(b) Responsibilities.--The advocate for competition of each 
covered postal entity shall--
            ``(1) be responsible for promoting competition to the 
        maximum extent practicable consistent with obtaining best value 
        by promoting the acquisition of commercial items and 
        challenging barriers to competition;
            ``(2) review the procurement activities of the covered 
        postal entity; and
            ``(3) prepare and transmit to the head of each covered 
        postal entity, the senior procurement executive of each covered 
        postal entity, the Board of Governors of the United States 
        Postal Service, and Congress, an annual report describing--
                    ``(A) the activities of the advocate under this 
                section;
                    ``(B) initiatives required to promote competition;
                    ``(C) barriers to competition that remain; and
                    ``(D) the number of waivers made by each covered 
                postal entity under section 704(c).
``Sec. 703. Delegation of contracting authority
    ``(a) In General.--
            ``(1) Policy.--Not later than 60 days after the date of 
        enactment of the U.S. Postal Service Improvements Act of 2011, 
        the head of each covered postal entity shall issue a policy on 
        contracting officer delegations of authority for the covered 
        postal entity.
            ``(2) Contents.--The policy issued under paragraph (1) 
        shall require that--
                    ``(A) notwithstanding any delegation of authority 
                with respect to postal contracts, the ultimate 
                responsibility and accountability for the award and 
                administration of postal contracts resides with the 
                senior procurement executive; and
                    ``(B) a contracting officer shall maintain an 
                awareness of and engagement in the activities being 
                performed on postal contracts of which that officer has 
                cognizance, notwithstanding any delegation of authority 
                that may have been executed.
    ``(b) Posting of Delegations.--
            ``(1) In general.--The head of each covered postal entity 
        shall make any delegation of authority for postal contracts 
        outside the functional contracting unit readily available and 
        accessible on the Web site of the covered postal entity.
            ``(2) Effective date.--This paragraph shall apply to any 
        delegation of authority made on or after 30 days after the date 
        of enactment of the U.S. Postal Service Improvements Act of 
        2011.
``Sec. 704. Posting of noncompetitive purchase requests for 
              noncompetitive contracts
    ``(a) Posting Required.--
            ``(1) Postal regulatory commission.--The Postal Regulatory 
        Commission shall make the noncompetitive purchase request for 
        any noncompetitive award, including the rationale supporting 
        the noncompetitive award, publicly available on the Web site of 
        the Postal Regulatory Commission--
                    ``(A) not later than 14 days after the date of the 
                award of the noncompetitive contract; or
                    ``(B) not later than 30 days after the date of the 
                award of the noncompetitive contract, if the basis for 
                the award was a compelling business interest.
            ``(2) United states postal service.--The United States 
        Postal Service shall make the noncompetitive purchase request 
        for any noncompetitive award of a postal contract valued at 
        $250,000 or more, including the rationale supporting the 
        noncompetitive award, publicly available on the Web site of the 
        United States Postal Service--
                    ``(A) not later than 14 days after the date of the 
                award; or
                    ``(B) not later than 30 days after the date of the 
                award, if the basis for the award was a compelling 
                business interest.
            ``(3) Adjustments to the posting threshold for the united 
        states postal service.--
                    ``(A) Review and determination.--Not later than 
                January 31 of each year, the United States Postal 
                Service shall--
                            ``(i) review the $250,000 threshold 
                        established under paragraph (2); and
                            ``(ii) based on any change in the Consumer 
                        Price Index for all-urban consumers of the 
                        Department of Labor, determine whether an 
                        adjustment to the threshold shall be made.
                    ``(B) Amount of adjustments.--An adjustment under 
                subparagraph (A) shall be made in increments of $5,000. 
                If the United States Postal Service determines that a 
                change in the Consumer Price Index for a year would 
                require an adjustment in an amount that is less than 
                $5,000, the United States Postal Service may not make 
                an adjustment to the threshold for the year.
            ``(4) Effective date.--This subsection shall apply to any 
        noncompetitive contract awarded on or after the date that is 90 
        days after the date of enactment of the U.S. Postal Service 
        Improvements Act of 2011.
    ``(b) Public Availability.--
            ``(1) In general.--Subject to paragraph (2), the 
        information required to be made publicly available by a covered 
        postal entity under subsection (a) shall be readily accessible 
        on the Web site of the covered postal entity.
            ``(2) Protection of proprietary information.--A covered 
        postal entity shall--
                    ``(A) carefully screen any description of the 
                rationale supporting a noncompetitive award required to 
                be made publicly available under subsection (a) to 
                determine whether the description includes proprietary 
                data (including any reference or citation to the 
                proprietary data) or security-related information; and
                    ``(B) remove any proprietary data or security-
                related information before making publicly available a 
                description of the rational supporting a noncompetitive 
                award.
    ``(c) Waivers.--
            ``(1) Waiver permitted.--If a covered postal entity 
        determines that making a noncompetitive purchase request 
        publicly available would risk placing the United States Postal 
        Service at a competitive disadvantage relative to a private 
        sector competitor, the senior procurement executive, in 
        consultation with the advocate for competition of the covered 
        postal entity, may waive the requirements under subsection (a).
            ``(2) Form and content of waiver.--
                    ``(A) Form.--A waiver under paragraph (1) shall be 
                in the form of a written determination placed in the 
                file of the contract to which the noncompetitive 
                purchase agreement relates.
                    ``(B) Content.--A waiver under paragraph (1) shall 
                include--
                            ``(i) a description of the risk associated 
                        with making the noncompetitive purchase request 
                        publicly available; and
                            ``(ii) a statement that redaction of 
                        sensitive information in the noncompetitive 
                        purchase request would not be sufficient to 
                        protect the United States Postal Service from 
                        being placed at a competitive disadvantage 
                        relative to a private sector competitor.
            ``(3) Delegation of waiver authority.--A covered postal 
        entity may not delegate the authority to approve a waiver under 
        paragraph (1) to any employee having less authority than the 
        senior procurement executive.
``Sec. 705. Review of ethical issues
    ``If a contracting officer identifies any ethical issues relating 
to a proposed contract and submits those issues and that proposed 
contract to the designated ethics official for the covered postal 
entity before the awarding of that contract, that ethics official 
shall--
            ``(1) review the proposed contract; and
            ``(2) advise the contracting officer on the appropriate 
        resolution of ethical issues.
``Sec. 706. Ethical restrictions on participation in certain 
              contracting activity
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means--
                    ``(A) a contracting officer; or
                    ``(B) any employee of a covered postal entity whose 
                decisionmaking affects a postal contract as determined 
                by regulations prescribed by the head of a covered 
                postal entity;
            ``(2) the term `final conviction' means a conviction, 
        whether entered on a verdict or plea, including a plea of nolo 
        contendere, for which a sentence has been imposed; and
            ``(3) the term `covered relationship' means a covered 
        relationship described in section 2635.502(b)(1) of title 5, 
        Code of Federal Regulations, or any successor thereto.
    ``(b) In General.--
            ``(1) Regulations.--The head of each covered postal entity 
        shall prescribe regulations that--
                    ``(A) require a covered employee to include in the 
                file of any noncompetitive purchase request for a 
                noncompetitive postal contract a written certification 
                that--
                            ``(i) discloses any covered relationship of 
                        the covered employee; and
                            ``(ii) the covered employee will not take 
                        any action with respect to the noncompetitive 
                        purchase request that affects the financial 
                        interests of a friend, relative, or person with 
                        whom the covered employee is affiliated in a 
                        nongovernmental capacity, or otherwise gives 
                        rise to an appearance of the use of public 
                        office for private gain, as described in 
                        section 2635.702 of title 5, Code of Federal 
                        Regulations, or any successor thereto;
                    ``(B) require a contracting officer to consult with 
                the ethics counsel for the covered postal entity 
                regarding any disclosure made by a covered employee 
                under subparagraph (A)(i), to determine whether 
                participation by the covered employee in the 
                noncompetitive purchase request would give rise to a 
                violation of part 2635 of title 5, Code of Federal 
                Regulations (commonly referred to as the `Standards of 
                Ethical Conduct for Employees of the Executive 
                Branch');
                    ``(C) require the ethics counsel for a covered 
                postal entity to review any disclosure made by a 
                contracting officer under subparagraph (A)(i) to 
                determine whether participation by the contracting 
                officer in the noncompetitive purchase request would 
                give rise to a violation of part 2635 of title 5, Code 
                of Federal Regulations (commonly referred to as the 
                `Standards of Ethical Conduct for Employees of the 
                Executive Branch'), or any successor thereto;
                    ``(D) under subsections (d) and (e) of section 
                2635.50 of title 5, Code of Federal Regulations, or any 
                successor thereto, require the ethics counsel for a 
                covered postal entity to--
                            ``(i) authorize a covered employee that 
                        makes a disclosure under subparagraph (A)(i) to 
                        participate in the noncompetitive postal 
                        contract; or
                            ``(ii) disqualify a covered employee that 
                        makes a disclosure under subparagraph (A)(i) 
                        from participating in the noncompetitive postal 
                        contract;
                    ``(E) require a contractor to timely disclose to 
                the contracting officer in a bid, solicitation, award, 
                or performance of a postal contract any conflict of 
                interest with a covered employee; and
                    ``(F) include authority for the head of the covered 
                postal entity to a grant a waiver or otherwise mitigate 
                any organizational or personal conflict of interest, if 
                the head of the covered postal entity determines that 
                the waiver or mitigation is in the best interests of 
                the Postal Service.
            ``(2) Posting of waivers.--Not later than 30 days after the 
        head of a covered postal entity grants a waiver described in 
        paragraph (1)(F), the head of the covered postal entity shall 
        make the waiver publicly available on the Web site of the 
        covered postal entity.
    ``(c) Contract Voidance and Recovery.--
            ``(1) Unlawful conduct.--In any case in which there is a 
        final conviction for a violation of any provision of chapter 11 
        of title 18 relating to a postal contract, the head of a 
        covered postal entity may--
                    ``(A) void that contract; and
                    ``(B) recover the amounts expended and property 
                transferred by the covered postal entity under that 
                contract.
            ``(2) Obtaining or disclosing procurement information.--
                    ``(A) In general.--In any case where a contractor 
                under a postal contract fails to timely disclose a 
                conflict of interest to the appropriate contracting 
                officer as required under the regulations promulgated 
                under subsection (b)(1)(D), the head of a covered 
                postal entity may--
                            ``(i) void that contract; and
                            ``(ii) recover the amounts expended and 
                        property transferred by the covered postal 
                        entity under that contract.
                    ``(B) Conviction or administrative determination.--
                A case described under subparagraph (A) is any case in 
                which--
                            ``(i) there is a final conviction for an 
                        offense punishable under section 27(e) of the 
                        Office of Federal Procurement Policy Act (41 
                        U.S.C. 423(e)); or
                            ``(ii) the head of a covered postal entity 
                        determines, based upon a preponderance of the 
                        evidence, that the contractor or someone acting 
                        for the contractor has engaged in conduct 
                        constituting an offense punishable under 
                        section 27(e) of that Act.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part I of title 39, United States Code, is amended by adding at the end 
the following:

``7. Contracting Provisions.................................     701''.

TITLE III--FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT ELIGIBLE 
                               EMPLOYEES

SEC. 301. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT ELIGIBLE 
              EMPLOYEES.

    (a) Transition to Retirement.--
            (1) In general.--Chapter 81 of title 5, United States Code, 
        is amended by inserting after section 8106 the following:
``Sec. 8106a. Transition to retirement
    ``(a) Definitions.--In this section--
            ``(1) the term `covered employee' means an employee who--
                    ``(A) is paid compensation under section 8105 or 
                8106; and
                    ``(B) on or after attaining retirement age is 
                eligible for an annuity under chapter 83 or 84 (other 
                than a survivor annuity); and
            ``(2) the term `retirement age' has the meaning given under 
        section 216(l)(1) of the Social Security Act (42 U.S.C. 
        416(l)(1)).
    ``(b) Notwithstanding any other provision of this chapter, the 
payment of compensation under section 8105 or 8106 to a covered 
employee shall terminate on the date that the covered employee--
            ``(1) attains retirement age and is eligible for an annuity 
        under chapter 83 or 84 (other than a survivor annuity); or
            ``(2) after attaining retirement age becomes eligible for 
        an annuity under chapter 83 or 84 (other than a survivor 
        annuity).
    ``(c) Not later than 1 year before the date that a covered employee 
attains retirement age or subsequently becomes eligible for an annuity 
under chapter 83 or 84 (other than a survivor annuity), the Secretary 
of Labor shall provide notice of this section to--
            ``(1) the covered employee;
            ``(2) the employing agency of that covered employee; and
            ``(3) the Office of Personnel Management.
    ``(d) The employing agency of a covered employee shall file an 
application for an annuity with the Office of Personnel Management in 
accordance with section 8352 or 8471.''.
            (2) Technical and conforming amendment.--The table of 
        sections for chapter 81 of title 5, United States Code, is 
        amended by inserting after the item relating to section 8106 
        the following:

``Sec. 8106a. Transition to retirement.''.
    (b) Filing of Applications.--
            (1) Civil service retirement system.--
                    (A) In general.--Chapter 83 of title 5, United 
                States Code, is amended by inserting after section 8351 
                the following:
``Sec. 8352. Employees transitioning from workers compensation
    ``(a) Definition.--In this section, the term `covered employee' 
means an employee who is a covered employee as defined under section 
8106a(a)(1) and is eligible for an annuity under this chapter.
    ``(b) Applications.--Not later than 1 year before the date of the 
termination of payments of compensation under section 8106a(b) to a 
covered employee who is eligible for an annuity under this chapter, the 
employing agency of that covered employee shall file an application for 
an annuity for that covered employee under this chapter with the Office 
of Personnel Management.
    ``(c) Regulations.--The Office of Personnel Management shall 
prescribe regulations to carry out this section.''.
                    (B) Technical and conforming amendment.--The table 
                of sections for chapter 83 of title 5, United States 
                Code, is amended by inserting after the item relating 
                to section 8351 the following:

``Sec. 8352. Employees transitioning from workers compensation.''.
            (2) Federal employees retirement system.--
                    (A) In general.--Chapter 84 of title 5, United 
                States Code, is amended by inserting after section 8470 
                the following:
``Sec. 8471. Employees transitioning from workers compensation
    ``(a) Definition.--In this section, the term `covered employee' 
means an employee who is a covered employee as defined under section 
8106a(a)(1) and is eligible for an annuity under this chapter.
    ``(b) Applications.--Not later than 1 year before the date of the 
termination of payments of compensation under section 8106a(b) to a 
covered employee who is eligible for an annuity under this chapter, the 
employing agency of that covered employee shall file an application for 
an annuity for that covered employee under this chapter with the Office 
of Personnel Management.
    ``(c) Regulations.--The Office of Personnel Management shall 
prescribe regulations to carry out this section.''.
                    (B) Technical and conforming amendment.--The table 
                of sections for chapter 84 of title 5, United States 
                Code, is amended by inserting after the item relating 
                to section 8456 the following:

``Sec. 8471. Employees transitioning from workers compensation.''.

SEC. 302. REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, 
the Secretary of Labor, after consultation with the Director of the 
Office of Personnel Management, shall prescribe regulations to carry 
out this title.

SEC. 303. EFFECTIVE DATE.

    (a) In General.--Except as provided under subsection (b), this 
title (including the amendments made by this tile) shall take effect on 
the date of enactment of this Act.
    (b) Termination of Compensation.--Section 8106a(b) of title 5, 
United States Code, (as added by section 301 of this Act) shall take 
effect 1 year after the date regulations are prescribed under section 
302.
                                 <all>
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