(2) FACTORS.—Section 3622(c) of title 39, 
United States Code, is amended to read as follows: 
‘‘(c) FACTORS.—In establishing or revising such sys-
tem, the Postal Regulatory Commission shall take into ac-
count the following factors: 
‘‘(1) The effect of rate increases upon the gen-
eral public and business mail users. 
‘‘(2) The available alternative means of sending 
and receiving written communications, information, 
and letters and other mail matter at reasonable 
costs. 
‘‘(3) The reliability of delivery timelines and the 
extent to which the Postal Service is meeting its 
service standard obligations. 
‘‘(4) The need to ensure that the Postal Service 
has adequate revenues and has taken appropriate 
cost-cutting measures to maintain financial stability 
and meet all legal obligations. 
‘‘(5) The extent to which the Postal Service has 
taken actions to increase its efficiency and reduce its 
costs. 
‘‘(6) The value of the mail service actually pro-
vided by each class or type of mail service to both 
the sender and the recipient, including but not lim-
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ited to the collection, mode of transportation, and 
priority of delivery. 
‘‘(7) The requirement that each class of mail or 
type of mail service bear the direct and indirect 
postal costs attributable to each class or type of mail 
service through reliably identified causal relation-
ships plus that portion of all other costs of the Post-
al Service reasonably assignable to such class or 
type. 
‘‘(8) The degree of preparation of mail for de-
livery into the postal system performed by the mailer 
and its effect upon improving efficiency and reduc-
ing costs to the Postal Service. 
‘‘(9) Simplicity of structure for the entire 
schedule and simple, identifiable relationships be-
tween the rates or fees charged the various classes 
of mail for postal services. 
‘‘(10) The importance of pricing flexibility to 
encourage increased mail volume and operational ef-
ficiency. 
‘‘(11) The relative value to the people of the 
kinds of mail matter entered into the postal system 
and the desirability and justification for special clas-
sifications and services of mail. 
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‘‘(12) The importance of providing classifica-
tions with extremely high degrees of reliability and 
speed of delivery and of providing those that do not 
require high degrees of reliability and speed of deliv-
ery. 
‘‘(13) The desirability of special classifications 
for both postal users and the Postal Service in ac-
cordance with the policies of this title, including 
agreements between the Postal Service and postal 
users, when available on public and reasonable terms 
to similarly situated mailers, that— 
‘‘(A) improve the net financial position of 
the Postal Service by reducing Postal Service 
costs or increasing the overall contribution to 
the institutional costs of the Postal Service; and 
‘‘(B) do not cause— 
‘‘(i) unfair competitive advantage for 
the Postal Service or postal users eligible 
for the agreements; or 
‘‘(ii) unreasonable disruption to the 
volume or revenues of other postal users. 
‘‘(14) The educational, cultural, scientific, and 
informational value to the recipient of mail matter. 
‘‘(15) The need for the Postal Service to in-
crease its efficiency and reduce its costs, including 
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infrastructure costs, to help maintain high quality, 
affordable postal services. 
‘‘(16) The value to the Postal Service and post-
al users of promoting intelligent mail and of secure, 
sender-identified mail. 
‘‘(17) The importance of stability and predict-
ability of rates to ratepayers. 
‘‘(18) The policies of this title as well as such 
other factors as the Commission determines appro-
priate.’’. 
(3) REQUIREMENTS.—Section 3622(d)(1) of 
title 39, United States Code, is amended— 
(A) by redesignating subparagraphs (B) 
through (E) as subparagraphs (C) through (F), 
respectively; 
(B) in subparagraph (F) (as redesignated 
by clause (i)) by striking ‘‘subparagraphs (A) 
and (C)’’ and inserting ‘‘subparagraphs (A) and 
(D)’’; and 
(C) by inserting after subparagraph (A) 
the following: 
‘‘(B) establish postal rates for each group 
of functionally equivalent agreements between 
the Postal Service and users of the mail that— 
‘‘(i) cover attributable cost; 
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‘‘(ii) improve the net financial position 
of the Postal Service; and 
‘‘(iii) do not cause unreasonable dis-
ruption in the marketplace, consistent with 
subsection (c)(13)(B); 
for purposes of this subparagraph, a group of 
functionally equivalent agreements shall consist 
of all service agreements that are functionally 
equivalent to each other within the same mar-
ket-dominant product, but shall not include 
agreements within an experimental product;’’. 
(4) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—Section 3622 of title 39, United States 
Code, is amended— 
(A) in subsection (a) by striking ‘‘, within 
18 months after the date of enactment of this 
section,’’; and 
(B) in subsection (d)(1)(E) (as redesig-
nated by paragraph (3)(A)(i)) by striking 
‘‘(c)(10)’’ and inserting ‘‘(c)(H)’’. 
(b) REPEAL OF RATE PREFERENCES FOR QUALI-
FIED POLITICAL COMMITTEES.—Subsection (e) of section 
3626 of title 39, United States Code, is repealed. 
(c) USE OF NEGOTIATED SERVICE AGREEMENTS.— 
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(1) STREAMLINED
REVIEW
OF
QUALIFYING 
SERVICE
AGREEMENTS
FOR
COMPETITIVE
PROD-
UCTS.—Section 3633 of title 39, United States 
Code, is amended by adding at the end the fol-
lowing: 
‘‘(c) STREAMLINED REVIEW.—Not later than 90 
days after the date of enactment of this subsection, after 
notice and opportunity for comment, the Postal Regu-
latory Commission shall promulgate (and may from time 
to time thereafter revise) regulations for streamlined 
after-the-fact review of newly proposed agreements be-
tween the Postal Service and users of the mail that provide 
rates not of general applicability for competitive products. 
Streamlined review shall apply only if agreements are 
functionally equivalent to existing agreements that have 
collectively covered attributable costs and collectively im-
proved the net financial position of the Postal Service. The 
regulations issued under this subsection shall provide that 
streamlined review shall be concluded not later than 5 
business days after the date on which the agreement is 
filed with the Commission and shall be limited to approval 
or disapproval of the agreement as a whole based on the 
Commission’s determination of its functional equivalence. 
Agreements not approved may be resubmitted without 
prejudice under section 3632.’’. 
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(2) SUBMISSION OF SERVICE AGREEMENTS FOR 
STREAMLINED REVIEW.—Section 3632(b) of title 39, 
United States Code, is amended— 
(A) by redesignating paragraph (4) as 
paragraph (5); and 
(B) by inserting after paragraph (3) the 
following: 
‘‘(4) RATES
FOR
STREAMLINED
REVIEW.—In 
the case of rates not of general applicability for com-
petitive products that the Postmaster General con-
siders eligible for streamlined review under section 
3633(c), the Postmaster General shall cause the 
agreement to be filed with the Postal Regulatory 
Commission by a date that is on or before the effec-
tive date of any new rate established under the 
agreement, as the Postmaster General considers ap-
propriate.’’. 
(3) TRANSPARENCY AND ACCOUNTABILITY FOR 
SERVICE AGREEMENTS.— 
(A) CERTAIN INFORMATION REQUIRED TO 
BE INCLUDED IN DETERMINATIONS OF COMPLI-
ANCE.—Section 3653 of title 39, United States 
Code, is amended— 
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(i) by redesignating subsections (c), 
(d), and (e) as subsections (d), (e), and (f), 
respectively; and 
(ii) by inserting after subsection (b) 
the following: 
‘‘(c) WRITTEN DETERMINATION.—Each annual writ-
ten determination of the Commission under this section 
shall include the following: 
‘‘(1) REQUIREMENTS.—For each group of func-
tionally equivalent agreements between the Postal 
Service and users of the mail, whether such group 
fulfilled requirements to— 
‘‘(A) cover costs attributable; and 
‘‘(B) improve the net financial position of 
the Postal Service. 
‘‘(2) NONCOMPLIANCE.—Any group of function-
ally equivalent agreements not meeting subpara-
graphs (A) and (B) of paragraph (1) shall be deter-
mined to be in noncompliance under this subsection. 
‘‘(3) DEFINITION.—For purposes of this sub-
section, a group of functionally equivalent agree-
ments shall consist of 1 or more service agreements 
that are functionally equivalent to each other within 
the same market-dominant or competitive product, 
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but shall not include agreements within an experi-
mental product.’’. 
(B) 
TECHNICAL
AMENDMENT.—Section 
3653(d) of title 39, United States Code (as re-
designated by subparagraph (A)), is amended 
by striking ‘‘subsections (c) and (e)’’ and in-
serting ‘‘subsections (c) and (d)’’. 
SEC. 204. NONPOSTAL SERVICES. 
(a) NONPOSTAL SERVICES.— 
(1) IN GENERAL.—Part IV of title 39, United 
States Code, is amended by adding after chapter 36 
the following: 
‘‘CHAPTER 37—NONPOSTAL SERVICES 
‘‘Sec. 
‘‘3701. Purpose. 
‘‘3702. Definitions. 
‘‘3703. Postal service program for State governments. 
‘‘3704. Postal service program for other government agencies. 
‘‘3705. Transparency and accountability for nonpostal services. 
‘‘§ 3701. Purpose 
‘‘The purpose of this chapter is to enable the Postal 
Service to increase its net revenues through specific non-
postal products and services that are expressly authorized 
by this chapter. Postal Service revenues and expenses 
under this chapter shall be funded through the Postal 
Service Fund. 
‘‘§ 3702. Definitions 
‘‘In this chapter— 
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‘‘(1) the term ‘nonpostal services’ is limited to 
services offered by the Postal Service that are ex-
pressly authorized by this chapter and are not postal 
products or services; 
‘‘(2) the term ‘attributable costs’ has the mean-
ing given such term in section 3631; and 
‘‘(3) the term ‘year’ means a fiscal year. 
‘‘§ 3703. Postal service program for State govern-
ments 
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of this title, the Postal Service may establish a pro-
gram to enter into agreements with an agency of any State 
government, local government, or tribal government to 
provide property and services on behalf of such agencies 
for non-commercial products and services at Postal Serv-
ice facilities within the United States, but only if such 
property and services— 
‘‘(1) provide enhanced value to the public, such 
as by lowering the cost or raising the quality of such 
services or by making such services more accessible; 
‘‘(2) do not interfere with or detract from the 
value of postal services, including— 
‘‘(A) the cost and efficiency of postal serv-
ices; and 
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‘‘(B) unreasonably restricting access to 
postal retail service, such as customer waiting 
time and access to parking; and 
‘‘(3) provide a reasonable contribution to the in-
stitutional costs of the Postal Service, defined as re-
imbursement that covers at least 100 percent of at-
tributable costs of all property and services provided 
under each relevant agreement in each year. 
‘‘(b) PUBLIC NOTICE.—At least 90 days before offer-
ing a service under the program, the Postal Service shall 
make available to the public on its Web site— 
‘‘(1) the agreement with the agency regarding 
such service; and 
‘‘(2) a business plan that describes the specific 
service to be provided, the enhanced value to the 
public, terms of reimbursement, the estimated an-
nual reimbursement to the Postal Service, and the 
estimated percentage of attributable Postal Service 
costs that will be covered by reimbursement (with 
documentation to support the estimates). 
‘‘(c) PUBLIC COMMENT.—Before offering a service 
under the program, the Postal Service shall provide for 
a public comment period of at least 30 days that allows 
the public to post comments relating to the provision of 
such services on the Postal Service Web site. The Postal 
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Service shall make reasonable efforts to provide written 
responses to the comments on such Web site at least 30 
days before offering such services. 
‘‘(d) APPROVAL REQUIRED.—The Postal Service may 
not establish the program under subsection (a) unless the 
Governors of the Postal Service approve such program by 
a recorded vote that is publicly disclosed on the Postal 
Service Web site with a majority of the total Governors 
voting for approval. 
‘‘(e) 
APPLICATION
OF
REPORTING
REQUIRE-
MENTS.—For purposes of the reporting requirements 
under section 3705, the Postal Service shall submit a sep-
arate report for each agreement with an agency entered 
into under subsection (a) analyzing the costs, revenues, 
rates, and quality of service for the provision of all services 
under such agreement, including information dem-
onstrating that the agreement satisfies the requirements 
of paragraphs (1) through (3) of subsection (a). 
‘‘(f) REGULATIONS REQUIRED.—The Postal Regu-
latory Commission shall issue such regulations as are nec-
essary to carry out this section. 
‘‘(g) DEFINITIONS.—For the purpose of this sec-
tion— 
‘‘(1) the term ‘local government’ means a coun-
ty, municipality, city, town, township, local public 
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authority, school district, special district, intrastate 
district, council of governments, or regional or inter-
state government entity; 
‘‘(2) the term ‘State government’ includes the 
government of the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin 
Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, and any 
other territory or possession of the United States; 
‘‘(3) the term ‘tribal government’ means the 
government of an Indian tribe, as that term is de-
fined in section 4(e) of the Indian Self-Determina-
tion Act (25 U.S.C. 450b(e)); and 
‘‘(4) the term ‘United States’, when used in a 
geographical sense, means the States, the District of 
Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American 
Samoa, the Commonwealth of the Northern Mariana 
Islands, and any other territory or possession of the 
United States. 
‘‘§ 3704. Postal service program for other government 
agencies 
‘‘(a) IN GENERAL.—The Postal Service may establish 
a program to provide property and services to other Gov-
ernment agencies within the meaning of section 411, but 
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only if such program provides a reasonable contribution 
to the institutional costs of the Postal Service, defined as 
reimbursement by each agency that covers at least 100 
percent of the attributable costs of all property and service 
provided by the Postal Service in each year to such agency. 
‘‘(b) 
APPLICATION
OF
REPORTING
REQUIRE-
MENTS.—For purposes of the reporting requirements 
under section 3705, the Postal Service shall submit a sep-
arate report for each agreement with an agency entered 
into under subsection (a) analyzing the costs, revenues, 
rates, and quality of service for the provision of all services 
under such agreement, including information dem-
onstrating that the agreement satisfies the requirements 
of subsection (a). 
‘‘§ 3705. Transparency and accountability for non-
postal services 
‘‘(a) ANNUAL REPORT TO THE COMMISSION.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the last day of each year, the Postal Service 
shall submit to the Postal Regulatory Commission a 
report that analyzes costs, revenues, rates, and qual-
ity of service for each agreement for the provision of 
property and services under this chapter, using such 
methodologies as the Commission may prescribe, and 
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in sufficient detail to demonstrate compliance with 
the requirements of this chapter. 
‘‘(2) SUPPORTING
MATTER.—A report sub-
mitted under paragraph (1) shall include any non-
public annex, the working papers, and any other 
supporting matter of the Postal Service and the In-
spector General related to the information submitted 
in such report. 
‘‘(b) CONTENT AND FORM OF REPORT.— 
‘‘(1) IN
GENERAL.—The Postal Regulatory 
Commission shall, by regulation, prescribe the con-
tent and form of the report required under sub-
section (a). In prescribing such regulations, the 
Commission shall give due consideration to— 
‘‘(A) providing the public with timely, ade-
quate information to assess compliance; 
‘‘(B) avoiding unnecessary or unwarranted 
administrative effort and expense on the part of 
the Postal Service; and 
‘‘(C) protecting the confidentiality of infor-
mation that is commercially sensitive or is ex-
empt from public disclosure under section 
552(b) of title 5. 
‘‘(2) REVISED REQUIREMENTS.—The Commis-
sion may, on its own motion or on request of any 
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interested party, initiate proceedings to improve the 
quality, accuracy, or completeness of Postal Service 
data required by the Commission if— 
‘‘(A) the attribution of costs or revenues to 
property or services under this chapter has be-
come significantly inaccurate or can be signifi-
cantly improved; 
‘‘(B) the quality of service data provided to 
the Commission for a report under this chapter 
has become significantly inaccurate or can be 
significantly improved; or 
‘‘(C) such revisions are, in the judgment of 
the Commission, otherwise necessitated by the 
public interest. 
‘‘(c) AUDITS.—The Inspector General shall regularly 
audit the data collection systems and procedures used in 
collecting information and preparing the report required 
under subsection (a). The results of any such audit shall 
be submitted to the Postal Service and the Postal Regu-
latory Commission. 
‘‘(d) CONFIDENTIAL INFORMATION.— 
‘‘(1) IN GENERAL.—If the Postal Service deter-
mines that any document or portion of a document, 
or other matter, which it provides to the Postal Reg-
ulatory Commission in a nonpublic annex under this 
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section contains information described in section 
410(c), or exempt from public disclosure under sec-
tion 552(b) of title 5, the Postal Service shall, at the 
time of providing such matter to the Commission, 
notify the Commission of its determination, in writ-
ing, and describe with particularity the documents 
(or portions of documents) or other matter for which 
confidentiality is sought and the reasons therefor. 
‘‘(2) TREATMENT.—Any information or other 
matter described in paragraph (1) to which the 
Commission gains access under this section shall be 
subject to paragraphs (2) and (3) of section 504(g) 
in the same way as if the Commission had received 
notification with respect to such matter under sec-
tion 504(g)(1). 
‘‘(e) ANNUAL COMPLIANCE DETERMINATION.— 
‘‘(1) OPPORTUNITY FOR PUBLIC COMMENT.— 
Upon receiving a report required under subsection 
(a), the Postal Regulatory Commission shall prompt-
ly— 
‘‘(A) provide an opportunity for comment 
on such report by any interested party; and 
‘‘(B) appoint an officer of the Commission 
to represent the interests of the general public. 
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‘‘(2) DETERMINATION OF COMPLIANCE OR NON-
COMPLIANCE.—Not later than 90 days after receiv-
ing a report required under subsection (a), the Post-
al Regulatory Commission shall make a written de-
termination as to whether the nonpostal activities 
carried out during the applicable year were or were 
not in compliance with the provisions of this chapter. 
For purposes of this paragraph, any case in which 
the requirements for coverage of attributable costs 
have not been met shall be considered to be a case 
of noncompliance. If, with respect to a year, no in-
stance of noncompliance is found to have occurred, 
the determination shall be to that effect. Such deter-
mination of noncompliance shall be included with the 
annual compliance determination required under sec-
tion 3653. 
‘‘(3) NONCOMPLIANCE.—If a timely written de-
termination of noncompliance is made under para-
graph (2), the Postal Regulatory Commission shall 
take the following appropriate action. If the require-
ments for coverage of attributable costs specified by 
this chapter are not met, the Commission shall, 
within 60 days after the determination, prescribe re-
medial action to restore compliance as soon as prac-
ticable, including the full restoration of revenue 
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shortfalls during the following year. The Commission 
may order the Postal Service to discontinue a non-
postal service under section 3703 that persistently 
fails to meet cost coverage requirements. 
‘‘(4) DELIBERATE
NONCOMPLIANCE.—In the 
case of deliberate noncompliance by the Postal Serv-
ice with the requirements of this chapter, the Postal 
Regulatory Commission may order, based on the na-
ture, circumstances, extent, and seriousness of the 
noncompliance, a fine (in the amount specified by 
the Commission in its order) for each incidence of 
such noncompliance. All receipts from fines imposed 
under this subsection shall be deposited in the gen-
eral fund of the Treasury. 
‘‘(f) REGULATIONS REQUIRED.—The Postal Regu-
latory Commission shall issue such regulations as are nec-
essary to carry out this section.’’. 
(2) CLERICAL
AMENDMENT.—The table of 
chapters for part IV of title 39, United States Code, 
is amended by adding after the item relating to 
chapter 36 the following: 
‘‘37. Nonpostal services ................................................................... 3701’’. 
(b) CONFORMING AMENDMENTS.— 
(1) SECTION 404.—Section 404(e) of title 39, 
United States Code, is amended— 
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(A) in paragraph (2), by inserting after 
‘‘subsection’’ the following: ‘‘, or any nonpostal 
products or services authorized by chapter 37’’; 
and 
(B) by adding at the end the following: 
‘‘(6) Licensing which, before the date of enactment 
of this paragraph, has been authorized by the Postal Reg-
ulatory Commission for continuation as a nonpostal serv-
ice may not be used for any purpose other than— 
‘‘(A) to continue to provide licensed mailing, 
shipping, or stationery supplies offered as of June 
23, 2011; or 
‘‘(B) to license other goods, products, or serv-
ices, the primary purpose of which is to promote and 
enhance the image or brand of the Postal Service. 
‘‘(7) Nothing in this section shall be considered 
to prevent the Postal Service from establishing non-
postal products and services that are expressly au-
thorized by chapter 37.’’. 
(2) SECTION 411.—The last sentence of section 
411 of title 39, United States Code, is amended by 
striking ‘‘including reimbursability’’ and inserting 
‘‘including reimbursability within the limitations of 
chapter 37’’. 
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(3) TREATMENT
OF
EXISTING
NONPOSTAL 
SERVICES.—All individual nonpostal services, pro-
vided directly or through licensing, that are contin-
ued pursuant to section 404(e) of title 39, United 
States Code, shall be considered to be expressly au-
thorized by chapter 37 of such title (as added by 
subsection (a)(1)) and shall be subject to the re-
quirements of such chapter. 
SEC. 205. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL 
SERVICE. 
(a) CONDITIONS REGARDING DETERMINATIONS FOR 
POST
OFFICE
CLOSURES.—Clause 
(i) 
of 
section 
404(d)(2)(A) of title 39, United States Code, is amended 
to read as follows: 
‘‘(i) the effect of such closing or consolida-
tion on the community served by such post of-
fice, including through an analysis of— 
‘‘(I) the distance (as measured by 
public roads) to the closest postal retail fa-
cility not proposed for closure or consolida-
tion under such plan; 
‘‘(II) the characteristics of such loca-
tion, including weather and terrain; 
‘‘(III) whether commercial mobile 
service (as defined in section 332 of the 
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Communications Act of 1934) and com-
mercial mobile data service (as defined in 
section 6001 of the Middle Class Tax Re-
lief and Job Creation Act of 2012) are 
available in at least 80 percent of the total 
geographic area of the ZIP codes served by 
the postal retail facility proposed for clo-
sure or consolidation; and 
‘‘(IV) whether fixed broadband Inter-
net access service is available to households 
in at least 80 percent of such geographic 
area at speeds not less than those suffi-
cient 
for 
service 
to 
be 
considered 
broadband for purposes of the most recent 
report of the Federal Communications 
Commission under section 706 of the Tele-
communications Act of 1996;’’. 
(b) PRC REVIEW OF DETERMINATIONS TO CLOSE 
OR CONSOLIDATE A POST OFFICE.— 
(1) 
DEADLINE
FOR
REVIEW.—Section 
404(d)(5) title 39, United States Code, is amended 
by striking ‘‘120 days’’ and inserting ‘‘60 days, or 
a longer period for good cause shown but in no event 
longer than 120 days,’’. 
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(2) APPLICABILITY.—The amendment made by 
paragraph (1) shall not apply with respect to an ap-
peal received by the Postal Regulatory Commission 
before the date of enactment of this Act (as deter-
mined applying the rules set forth in section 
404(d)(6) of such title). 
(c) EXPEDITED PROCEDURES.— 
(1) IN
GENERAL.—Section 3661 of title 39, 
United States Code, is amended by adding at the 
end the following: 
‘‘(d)(1) The Commission shall issue its opinion within 
90 days, or a longer period for good cause shown but in 
no event longer than 120 days, after the receipt of any 
proposal (as referred to in subsection (b)) concerning an 
identical or substantially identical proposal on which the 
Commission has issued an opinion within the preceding 
5 years. 
‘‘(2) If necessary in order to comply with the 90-day 
requirement under paragraph (1), the Commission may 
apply expedited procedures which the Commission shall by 
regulation prescribe.’’. 
(2) REGULATIONS.—The Postal Regulatory 
Commission shall prescribe any regulations nec-
essary to carry out the amendment made by para-
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graph (1) within 90 days after the date of enact-
ment of this Act. 
(3) APPLICABILITY.—The amendment made by 
this subsection shall apply with respect to any pro-
posal received by the Postal Regulatory Commission 
on or after the earlier of— 
(A) the 90th day after the date of enact-
ment of this Act; or 
(B) the effective date of the regulations 
under paragraph (2). 
(d) ALTERNATE POSTAL ACCESS CHOICE.—Section 
404(d) of title 39, United States Code, is amended by 
striking paragraph (1) and inserting the following: 
‘‘(1) The Postal Service, prior to making a de-
termination under subsection (a)(3) as to the neces-
sity for the closing or consolidation of any post of-
fice, shall— 
‘‘(A) provide adequate notice of its inten-
tion to close or consolidate such post office at 
least 60 days prior to the proposed date of such 
closing or consolidation to postal patrons served 
by such post office; 
‘‘(B) conduct a nonbinding survey on the 
proposed closing or consolidation to allow postal 
patrons served by such post office an oppor-
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tunity to indicate their preference between or 
among— 
‘‘(i) the closing or consolidation; and 
‘‘(ii) 1 or more alternative options; 
and 
‘‘(C) ensure that— 
‘‘(i) should the closure or consolida-
tion of a postal retail facility be deemed 
necessary, it shall be the policy of the 
Postal Service to provide alternative access 
to postal services to those served by the 
postal retail facility by the option chosen 
by the highest number of survey respond-
ents under subparagraph (B)(ii); and 
‘‘(ii) if the Postal Service is unable to 
provide alternative access through the op-
tion identified in clause (i), or if that op-
tion is cost prohibitive, the Postal Service 
may provide alternative access through a 
different means. Upon selection of an al-
ternative access method other than the one 
identified by clause (i), the Postal Service 
must provide written notice to those pa-
trons served by the postal retail facility 
identifying and explaining why the option 
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identified by clause (i) was not possible or 
cost prohibitive.’’. 
(e) APPLICABILITY OF PROCEDURES RELATING TO 
CLOSURES AND CONSOLIDATIONS.— 
(1) IN GENERAL.—Section 404(d) of title 39, 
United States Code, is further amended by adding 
at the end the following: 
‘‘(7) For purposes of this subsection, the term ‘post 
office’ means a post office and any other facility described 
in section 2(2) of the Postal Service Reform Act of 
2016.’’. 
(2) EFFECTIVE DATE.—In the case of any post 
office (within the meaning of the amendment made 
by paragraph (1)) which, but for such amendment, 
would not otherwise be subject to section 404(d) of 
title 39, United States Code, the amendment made 
by subsection (a) shall be effective with respect to 
any closure or consolidation, the proposed effective 
date of which occurs on or after the 60th day fol-
lowing the date of enactment of this Act. 
(f) ENHANCED REPORTING ON POSTAL SERVICE EF-
FICIENCY.—Section 3652(a) of title 39, United States 
Code, is amended— 
(1) in paragraph (1), by striking ‘‘and’’ at the 
end; 
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(2) in paragraph (2)(B)(ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(3) by adding after paragraph (2) the following: 
‘‘(3) which shall provide the overall change in 
Postal Service productivity and the resulting effect 
of such change on overall Postal Service costs during 
such year, using such methodologies as the Commis-
sion shall by regulation prescribe, if necessary.’’. 
(g) POSTPLAN STUDY.— 
(1) IN GENERAL.—Beginning not later than 30 
days after the date of enactment of this Act, the In-
spector General of the Postal Community shall con-
duct a 1-year review to study of the impacts of the 
POSTPlan post office restructuring plan on Postal 
Service expenses, revenue, and retail service provi-
sion. 
(2) CONTENT.—In conducting the review under 
paragraph (1), the Inspector General shall exam-
ine— 
(A) changes in the costs for the provision 
of Postal Service operated retail service, both 
nationwide and in the aggregate for each of the 
Level 2, Level 4, Level 6, and Level 18 post of-
fices for which the hours, functions, or respon-
sibilities changed as a result of the POSTPlan 
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initiative before and after the implementation of 
the POSTPlan initiative; 
(B) changes in revenue received by Postal 
Service operated retail service, both nationwide 
and in the aggregate for each of the Level 2, 
Level 4, Level 6, and Level 18 post offices for 
which the hours, functions, or responsibilities 
changed as a result of the POSTPlan initiative 
before and after the implementation of the 
POSTPlan initiative; 
(C) a determination of the relative cost 
savings, taking into account any changes in rev-
enue earned, realized on an annual basis for 
Level 2, Level 4, Level 6, and Level 18 offices 
each in the aggregate and any trends in such 
cost savings; 
(D) the relative impact on retail access to 
postal services for individuals served by Level 2, 
Level 4, Level 6, and Level 18 offices each in 
the aggregate; and 
(E) any other factors the Inspector Gen-
eral determines appropriate. 
(3) REPORT
AND
RECOMMENDATIONS.—Upon 
completion of the review required under paragraph 
(1), the Inspector General shall submit to the Postal 
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Service, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Com-
mittee on Oversight and Government Reform of the 
House of Representatives a report containing— 
(A) the results of the review; and 
(B) any recommendations resulting from 
such review. 
(4) POSTAL
SERVICE
REVIEW.—Prior to any 
hour changes or consolidation decisions related to 
POSTPlan initiative impacted post offices, the Post-
al Service shall— 
(A) review the report and any rec-
ommendations submitted pursuant to para-
graph (3); and 
(B) revise any planned efforts regarding 
the POSTPlan initiative, as appropriate. 
SEC. 206. FAIR STAMP-EVIDENCING COMPETITION. 
Section 404a(a) of title 39, United States Code, is 
further amended— 
(1) in paragraph (2), by striking ‘‘or’’ at the 
end; 
(2) in paragraph (3) by striking the period and 
inserting ‘‘; or’’; and 
(3) by adding at the end the following: 
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‘‘(4) offer to the public any postage-evidencing 
product or service that does not comply with any 
rule or regulation that would be applicable to such 
product or service if the product or service were of-
fered by a private company.’’. 
SEC. 207. MARKET-DOMINANT RATES. 
(a) ESTABLISHMENT OF RATE BASELINE.—Notwith-
standing any order of the Postal Regulatory Commission 
to the contrary— 
(1) no earlier than the first Sunday after the 
date of enactment of this Act, on a date selected by 
the Postmaster General in the exercise of the Post-
master General’s unreviewable discretion, the Postal 
Service shall reinstate, as nearly as is practicable, 50 
percent of the rate surcharge implemented under 
section 3622(d)(1)(G) (as redesignated by this Act) 
that was in effect on April 9, 2016; and 
(2) the partially reinstated surcharge reinstated 
pursuant to paragraph (1) shall be considered a part 
of the rate base for purposes of determining the per-
centage changes in rates when the Postal Service 
files a notice of rate adjustment. 
(b) SUBSEQUENT RATE INCREASES.—The reinstate-
ment described under subsection (a)(1) may not affect the 
calculation of the Postal Service’s maximum rate adjust-
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ment authority under subpart C of Part 3010 of title 39, 
Code of Federal Regulations, for purposes of any rate in-
crease that occurs following such reinstatement. 
(c) POSTAL REGULATORY COMMISSION AUTHORITY 
NOT AFFECTED.—Nothing in this section shall be con-
strued as affecting the authority of the Postal Regulatory 
Commission to, by regulation, make such modification or 
adopt such alternative system for regulating rates and 
classes for market-dominant products as provided under 
section 3622 of title 39, United States Code. 
(d) EXIGENCY APPEAL TERMINATED.—The Postal 
Service— 
(1) shall withdraw its judicial appeal concerning 
the rates previously established pursuant to section 
3622(d)(1)(G) (as redesignated by this Act) of title 
39, United States Code; and 
(2) may not institute or maintain an additional 
rate increase pursuant to section 3622(d)(1)(G) (as 
redesignated by this Act) of title 39, United States 
Code, predicated upon the same extraordinary or ex-
ceptional circumstances upon which rates have pre-
viously been increased pursuant to such section. 
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SEC. 208. COMPLETION OF INITIAL RATE REGULATION RE-
VIEW. 
The Postal Regulatory Commission shall complete 
the initial review of the system for regulating rates and 
classes for market-dominant products established under 
section 3622 of title 39, United States Code, such that 
a final rule or rules regarding a revised or reapproved sys-
tem for regulating rates and classes for market-dominant 
products is issued not later than January 1, 2018. 
SEC. 209. REVIEW OF POSTAL SERVICE COST ATTRIBUTION 
GUIDELINES. 
Not later than April 1, 2018, the Postal Regulatory 
Commission shall initiate a review of the regulations 
issued pursuant to sections 3633(a) and 3652(a)(1) of 
title 39, United States Code, to determine whether revi-
sions are appropriate to ensure that all direct and indirect 
costs attributable to competitive and market-dominant 
products are properly attributed to those products, includ-
ing by considering the underlying methodologies in deter-
mining cost attribution and considering options to revise 
such methodologies. If the Commission determines, after 
notice and opportunity for public comment, that revisions 
are appropriate, the Commission shall make modifications 
or adopt alternative methodologies as necessary. 
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SEC. 210. AVIATION SECURITY FOR PARCELS. 
(a) IN GENERAL.—Chapter 54 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 5404. Aviation security for parcels 
‘‘A parcel carried by an air carrier or foreign air car-
rier (as those terms are defined in section 40102(a) of 
title 49) shall— 
‘‘(1) use postage that has been generated by a 
postage evidencing system that has been validated 
under level 4 of the 140 series of the Federal Infor-
mation Processing Standards; or 
‘‘(2) 
be 
entered 
with 
in 
person 
sender 
verification.’’. 
(b) TECHNICAL AMENDMENT.—Section 5401(b) of 
title 39, United States Code, is amended by inserting ‘‘or 
5404’’ after ‘‘in section 5402’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 54 of title 39, United States Code, is 
amended by adding at the end the following: 
‘‘5404. Aviation security for parcels.’’. 
SEC. 211. ZIP CODES. 
Not later than September 30, 2017, the Postal Serv-
ice shall designate a single, unique ZIP code for, as nearly 
as practicable, each of the following communities: 
(1) Miami Lakes, Florida. 
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(2) Storey County, Nevada. 
(3) Flanders, Northampton, and Riverside in 
the Town of Southampton, New York. 
TITLE III—POSTAL SERVICE 
PERSONNEL 
SEC. 301. POSTAL SERVICE CHIEF INNOVATION OFFICER. 
(a) IN GENERAL.—Chapter 2 of title 39, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘§ 209. Chief Innovation Officer 
‘‘(a) IN GENERAL.—There is established within the 
Postal Service the position of Chief Innovation Officer, ap-
pointed by the Postmaster General, who shall manage the 
Postal Service’s development and implementation of inno-
vative postal and nonpostal products and services. 
‘‘(b) DUTIES.—The primary duties of the Chief Inno-
vation Officer are as follows: 
‘‘(1) Leading the development of innovative 
nonpostal products and services that will maximize 
revenue to the Postal Service. 
‘‘(2) Developing innovative postal products and 
services, specifically those that utilize emerging in-
formation technologies, to maximize revenue to the 
Postal Service. 
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‘‘(3) Implementing the innovation strategy de-
scribed under subsection (d). 
‘‘(4) Monitoring the performance of innovative 
products and services and revising them as needed 
to meet changing market trends. 
‘‘(5) Taking into consideration comments or ad-
visory opinions, if applicable, issued by the Postal 
Regulatory Commission prior to the initial sale of in-
novative postal or nonpostal products and services. 
‘‘(c) APPOINTMENT.— 
‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of the Postal Service Reform 
Act of 2016, but no later than 6 months after such 
date, the Postmaster General shall appoint a Chief 
Innovation Officer. 
‘‘(2) 
REQUIREMENTS.—Any 
individual 
ap-
pointed to serve as the Chief Innovation Officer shall 
have proven expertise and a record of success in at 
least 1 of the following: postal and shipping indus-
try; innovation product research and development; 
marketing brand strategy; emerging communications 
technology; or business process management. 
‘‘(3) CURRENT OFFICER OR EMPLOYEE ELIGI-
BLE.—An officer or employee of the Postal Service 
may be appointed to the position of Chief Innovation 
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Officer under this chapter. Upon appointment to 
such position, such officer or employee may not con-
currently hold any other position in the Postal Serv-
ice. 
‘‘(d) INNOVATION STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 12 months 
after the date on which the Chief Innovation Officer 
is appointed under subsection (c)(1), the Postmaster 
General shall submit to the Committee on Oversight 
and Government Reform of the House of Represent-
atives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Postal 
Regulatory Commission a comprehensive strategy for 
maximizing revenues through innovative postal and 
nonpostal products and services. 
‘‘(2) MATTERS TO BE ADDRESSED.—The strat-
egy submitted under paragraph (1) shall address— 
‘‘(A) the specific innovative postal and 
nonpostal products and services to be developed 
and offered by the Postal Service, including the 
nature of the market to be filled by each prod-
uct and service and the likely date by which 
each product and service will be introduced; 
‘‘(B) the cost of developing and offering 
each product or service; 
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‘‘(C) the anticipated sales volume of each 
product and service; 
‘‘(D) the anticipated revenues and profits 
expected to be generated by each product and 
service; 
‘‘(E) the likelihood of success of each prod-
uct and service as well as the risks associated 
with the development and sale of each product 
and service; 
‘‘(F) the trends anticipated in market con-
ditions that may affect the success of each 
product and service over the 5-year period be-
ginning on the date such strategy or update is 
submitted; 
‘‘(G) the metrics that will be utilized to as-
sess the effectiveness of the innovation strategy; 
and 
‘‘(H) the specific methods by which 
mailpiece design analysis may be improved to 
speed the approval process and promote the in-
creased use of innovative mailpiece design. 
‘‘(3) STRATEGY
UPDATES.—On January 1, 
2018, and every 3 years thereafter, the Postal Serv-
ice shall submit an update to the innovation strategy 
submitted under paragraph (1) to the Committee on 
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Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate, and 
the Postal Regulatory Commission. 
‘‘(e) REPORT.— 
‘‘(1) IN GENERAL.—On the date of submission 
of the President’s annual budget under section 
1105(a) of title 31, the Postmaster General shall 
submit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, the 
Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Postal Regulatory 
Commission a report that details the Postal Serv-
ice’s progress in implementing the innovation strat-
egy described under subsection (d). 
‘‘(2) MATTERS TO BE ADDRESSED.—The report 
required under paragraph (1) shall address— 
‘‘(A) the revenue generated by each prod-
uct and service developed through the innova-
tion strategy and the costs of developing and 
offering each such product and service for the 
most recent fiscal year; 
‘‘(B) the total sales volume and revenue 
generated by each product and service on a 
monthly basis for the preceding year; 
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‘‘(C) trends in the markets filled by each 
product and service; 
‘‘(D) products and services identified in 
the innovation strategy that are to be discon-
tinued, the date on which the discontinuance 
will occur, and the reasons for the discontinu-
ance; 
‘‘(E) alterations in products and services 
identified in the innovation strategy that will be 
made to meet changing market conditions, and 
an explanation of how these alterations will en-
sure the success of the products and services; 
and 
‘‘(F) the performance of the innovation 
strategy according to the metrics identified in 
subsection (d)(2)(G). 
‘‘(f) COMPTROLLER GENERAL STUDY.— 
‘‘(1) IN GENERAL.—The Comptroller General 
shall conduct a study on the implementation of the 
innovation strategy described under subsection (d) 
not later than 4 years after the date of enactment 
of the Postal Service Reform Act of 2016. 
‘‘(2) CONTENTS.—The study required under 
paragraph (1) shall assess the effectiveness of the 
Postal Service in identifying, developing, and selling 
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innovative postal and nonpostal products and serv-
ices. The study shall also include— 
‘‘(A) an audit of the costs of developing 
each innovative postal and nonpostal product 
and service developed or offered by the Postal 
Service during the period beginning on the date 
of enactment of the Postal Service Reform Act 
of 2016 and ending 4 years after such date; 
‘‘(B) the sales volume of each such product 
and service; 
‘‘(C) the revenues and profits generated by 
each such product and service; and 
‘‘(D) the likelihood of continued success of 
each such product and service. 
‘‘(3) SUBMISSION.—The results of the study re-
quired under this subsection shall be submitted to 
the Committee on Oversight and Government Re-
form of the House of Representatives, the Com-
mittee on Homeland Security and Governmental Af-
fairs of the Senate, and the Postal Regulatory Com-
mission.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 2 of title 39, United States 
Code, is amended by adding at the end the following: 
‘‘209. Chief Innovation Officer.’’. 
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SEC. 302. INSPECTOR GENERAL OF THE POSTAL COMMU-
NITY. 
(a) PRESIDENTIALLY
APPOINTED, SENATE-CON-
FIRMED INSPECTOR GENERAL.—The Inspector General 
Act of 1978 (5 U.S.C. App.) is amended— 
(1) in section 8G— 
(A) in subsection (a)— 
(i) in paragraph (2), by striking ‘‘the 
United States International Trade Com-
mission, the Postal Regulatory Commis-
sion, and the United States Postal Serv-
ice’’ and inserting ‘‘and the United States 
International Trade Commission’’; 
(ii) in paragraph (3), by striking 
‘‘subsection (h)(1)’’ and inserting ‘‘sub-
section (g)(1)’’; and 
(iii) in paragraph (4)— 
(I) by striking subparagraph (B); 
(II) 
by 
striking 
‘‘subsection 
(h)(1)’’ and inserting ‘‘subsection 
(g)(1)’’; and 
(III) by redesignating subpara-
graphs (C), (D), (E), (F), (G), (H), 
and (I) as (B), (C), (D), (E), (F), 
(G), and (H), respectively; 
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(B) in subsection (c), by striking ‘‘Except 
as provided under subsection (f) of this section, 
the’’ and inserting ‘‘The’’; 
(C) by striking subsection (f); and 
(D) by redesignating subsections (g) and 
(h) as (f) and (g), respectively; and 
(2) in section 12— 
(A) in paragraph (1), by inserting ‘‘the 
Postmaster General of the United States; the 
Chairman of the Postal Regulatory Commis-
sion;’’ after ‘‘the President of the Export-Im-
port Bank;’’; and 
(B) in paragraph (2), by inserting ‘‘the 
United States Postal Service, the Postal Regu-
latory Commission,’’ after ‘‘the Export-Import 
Bank,’’. 
(b) INSPECTOR GENERAL OF THE POSTAL COMMU-
NITY.— 
(1) ESTABLISHMENT.—The Inspector General 
Act of 1978 (5 U.S.C. App.), as amended by sub-
section (a), is further amended by inserting after 
section 8L the following new section: 
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‘‘(d) APPLICABILITY OF ESTABLISHMENT FOR RE-
PORTS.—In carrying out the duties and responsibilities 
under section 5— 
‘‘(1) the term ‘establishment’ shall include as 
separate establishments— 
‘‘(A) the United States Postal Service; and 
‘‘(B) the Postal Regulatory Commission; 
and 
‘‘(2) the Inspector General of the Postal Com-
munity shall prepare separate semiannual reports 
for the United States Postal Service and the Postal 
Regulatory Commission. 
‘‘(e) OFFICE SPACE.—In carrying out the duties and 
responsibilities under section 6(c), the heads of the estab-
lishments for the United States Postal Service and the 
Postal Regulatory Commission shall work jointly with one 
another and in consultation with the Inspector General of 
the Postal Community to ensure adequate and appropriate 
provision to the Office of the Inspector General of the 
Postal Community under section 6(c). 
‘‘(f) BUDGET.—In carrying out the duties and re-
sponsibilities under section 6(f)— 
‘‘(1) the ‘head of the establishment’ shall mean 
the Postmaster General of the United States; and 
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100 
‘‘(2) designation of the Postmaster General of 
the United States as ‘head of the establishment’ 
under this subsection shall not be construed as 
granting any authorities to the Postmaster General 
of the United States with regard to the Postal Regu-
latory Commission. 
‘‘(g) GENERAL DUTIES AND RESPONSIBILITIES.—In 
carrying out the duties and responsibilities specified in 
this Act— 
‘‘(1) the Inspector General of the Postal Com-
munity shall have oversight responsibility for all ac-
tivities of the Postal Inspection Service, including 
any internal investigation performed by the Postal 
Inspection Service; 
‘‘(2) the Inspector General of the Postal Com-
munity shall give particular regard to the activities 
of the Postal Inspection Service with a view toward 
avoiding duplication and insuring effective coordina-
tion and cooperation; and 
‘‘(3) the Chief Postal Inspector shall promptly 
report the significant activities being carried out by 
the Postal Inspection Service to the Inspector Gen-
eral of the Postal Community. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated, out of the Postal Serv-
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101 
ice Fund, such sums as may be necessary for the Office 
of Inspector General of the Postal Community.’’. 
(2) CONFORMING AMENDMENTS.—Section 8J of 
the Inspector General Act of 1978 (5 U.S.C. App.) 
is amended by striking ‘‘The special provisions 
under section’’ through ‘‘of this Act’’ and inserting 
‘‘The special provisions under section 8, 8A, 8B, 8C, 
8D, 8E, 8F, 8H, 8I, or 8M of this Act’’. 
(3) APPOINTMENT.—Not later than 180 days 
after the date of enactment of this Act, the Presi-
dent shall appoint, by and with the advice and con-
sent of the Senate, an Inspector General of the Post-
al Community. Any individual appointed under the 
previous sentence shall be deemed to be appointed 
under section 8M of the Inspector General Act of 
1978 (5 U.S.C. App.) (as amended by paragraph 
(1)). 
(c) TRANSFER OF THE OFFICE OF THE INSPECTOR 
GENERAL OF THE POSTAL REGULATORY COMMISSION.— 
(1) IN GENERAL.—On the date that is the ef-
fective date of this section, the duties, responsibil-
ities, functions, personnel, assets, unexpended bal-
ances of appropriations, and obligations held by the 
Inspector General of the Postal Regulatory Commis-
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102 
sion shall be transferred to the Office of the Inspec-
tor General of the Postal Community. 
(2) EXISTING INSPECTOR GENERAL.—The In-
spector General of the Postal Regulatory Commis-
sion transferred pursuant to paragraph (1) shall 
serve under the Inspector General of the Postal 
Community. 
(d) TRANSFER OF THE OFFICE OF THE INSPECTOR 
GENERAL OF UNITED STATES POSTAL SERVICE.— 
(1) IN GENERAL.—On the date that is the ef-
fective date of this section, the duties, responsibil-
ities, functions, personnel, assets, unexpended bal-
ances of appropriations, and obligations held by the 
Inspector General of the United States Postal Serv-
ice shall be transferred to the Office of the Inspector 
General of the Postal Community. 
(2) EXISTING INSPECTOR GENERAL.—The In-
spector General of the United States Postal Service 
transferred pursuant to paragraph (1) shall serve 
under the Inspector General of the Postal Commu-
nity. 
(e) DELEGATION AND ASSIGNMENT.—Except as oth-
erwise expressly prohibited by law or otherwise provided 
in this Act, the Inspector General of the Postal Commu-
nity may delegate any of the functions transferred pursu-
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ant to this section to such officers and employees of the 
Office of the Inspector General of the Postal Community 
as the Inspector General may designate, and may author-
ize successive redelegations of such functions as may be 
necessary or appropriate. No delegation of functions under 
this subsection or under any other provision of this Act 
shall relieve the Inspector General of the Postal Commu-
nity of responsibility for the administration of the func-
tion. 
(f) SAVINGS PROVISIONS.— 
(1) LEGAL
DOCUMENTS.—Any order, deter-
mination, rule, regulation, permit, grant, loan, con-
tract, agreement, certificate, license, or privilege that 
has been issued, made, granted, or allowed to be-
come effective that is in effect on the effective date 
of this section shall continue in effect according to 
their terms until modified, terminated, superseded, 
set aside, or revoked in accordance with law. 
(2) PROCEEDINGS.—This section shall not af-
fect any proceeding pending on the effective date of 
this section before an office transferred by either 
such subsection, but such proceeding shall be contin-
ued. Nothing in this paragraph shall be considered 
to prohibit the discontinuance or modification of any 
such proceeding under the same terms and condi-
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tions and to the same extent that such proceeding 
could have been discontinued or modified if this sec-
tion had not been enacted. 
(3) SUITS.—This section shall not affect any 
suit commenced before the effective date of this sec-
tion, and in any such suit, proceeding shall be had, 
appeals taken, and judgments rendered in the same 
manner and with the same effect as if this section 
had not been enacted. 
(4) REFERENCES.—Any reference in any other 
Federal law, Executive order, rule, regulation, or 
delegation of authority, or any document relating to 
the Inspector General of the Postal Regulatory Com-
mission, the Inspector General of the United States 
Postal Service, or the office of either such inspector 
general shall be deemed to refer to the Inspector 
General of the Postal Community or the Office of 
the Inspector General of the Postal Community, as 
applicable. 
(g) AVAILABILITY OF EXISTING FUNDS.—Existing 
appropriations and funds available for the performance of 
functions, programs, and activities transferred pursuant 
to this section shall remain available, for the duration of 
their period of availability, for necessary expenses in con-
nection with the Office of the Inspector General of the 
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Postal Community and the transfer of such functions, pro-
grams, and activities. 
(h) TITLE 39 AMENDMENTS.—Title 39, United 
States Code, is amended as follows: 
(1) In section 102(4), by striking ‘‘the Inspec-
tor General appointed under section 202(e) of this 
title’’ and inserting ‘‘the Inspector General of the 
Postal Community as described in section 8M of the 
Inspector General Act of 1978 (5 U.S.C. App.)’’. 
(2) In section 504, by striking subsection (h). 
(3) In section 1003(b), by striking ‘‘the Office 
of Inspector General of the United States Postal 
Service’’ and inserting ‘‘the Office of Inspector Gen-
eral of the Postal Community’’. 
(4) In section 2003(e)(1), by striking ‘‘the Of-
fice of Inspector General, subject to the availability 
of amounts appropriated under section 8G(f) of the 
Inspector General Act of 1978.’’ and inserting ‘‘the 
Office of Inspector General of the Postal Commu-
nity’’. 
(5) In section 2009, by striking ‘‘the Office of 
Inspector General of the United States Postal Serv-
ice requests to be appropriated, out of the Postal 
Service Fund, under section 8G(f) of the Inspector 
General Act of 1978, and’’ and inserting ‘‘the Office 
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106 
of Inspector General of the Postal Community re-
quests to be appropriated out of the Postal Service 
Fund’’. 
(6) In section 2011(h)(D), by striking ‘‘the In-
spector General of the United States Postal Service’’ 
and inserting ‘‘the Inspector General of the Postal 
Community’’. 
(i) DELAYED EFFECTIVE DATE.—This section, and 
the amendments made by this section, shall take effect 
upon the date that is 30 days after the date on which 
an individual is confirmed by the Senate as the Inspector 
General of the Postal Community under subsection (b)(3). 
SEC. 303. RIGHT OF APPEAL TO MERIT SYSTEMS PROTEC-
TION BOARD. 
Section 1005(a)(4)(A)(ii)(I) of title 39, United States 
Code, is amended to read as follows: 
‘‘(I) is an officer or employee of the Postal 
Service who— 
‘‘(aa) is not represented by a bar-
gaining representative recognized under 
section 1203; and 
‘‘(bb) is in a supervisory, professional, 
technical, clerical, administrative, or mana-
gerial position covered by the Executive 
and Administrative Schedule; and’’. 
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107 
TITLE IV—POSTAL 
CONTRACTING REFORM 
SEC. 401. 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. Delegation of contracting authority. 
‘‘703. Posting of noncompetitive purchase requests for noncompetitive contracts. 
‘‘704. Review of ethical issues. 
‘‘705. Ethical restrictions on participation in certain contracting activity. 
‘‘§ 701. Definitions 
‘‘In this chapter— 
‘‘(1) the term ‘contracting officer’ means an 
employee of a covered postal entity who has author-
ity to enter into a postal contract; 
‘‘(2) the term ‘covered postal entity’ means— 
‘‘(A) the Postal Service; or 
‘‘(B) the Postal Regulatory Commission; 
‘‘(3) the term ‘head of a covered postal entity’ 
means— 
‘‘(A) in the case of the Postal Service, the 
Postmaster General; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, the Chairman of the Postal Regu-
latory Commission; 
‘‘(4) the term ‘postal contract’ means— 
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‘‘(A) in the case of the Postal Service, any 
contract (including any agreement or memo-
randum of understanding) entered into by the 
Postal Service for the procurement of goods or 
services; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, any contract (including any agree-
ment or memorandum of understanding) in an 
amount exceeding the simplified acquisition 
threshold (as defined in section 134 of title 41 
and adjusted under section 1908 of such title) 
entered into by the Postal Regulatory Commis-
sion for the procurement of goods or services; 
and 
‘‘(5) the term ‘senior procurement executive’ 
means the senior procurement executive of a covered 
postal entity. 
‘‘§ 702. Delegation of contracting authority 
‘‘(a) IN GENERAL.— 
‘‘(1) POLICY.—Not later than 60 days after the 
date of enactment of this chapter, the head of each 
covered postal entity shall issue a policy on con-
tracting officer delegations of authority for postal 
contracts for the covered postal entity. 
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‘‘(2) CONTENTS.—The policy issued under 
paragraph (1) shall require that— 
‘‘(A) notwithstanding any delegation of au-
thority with respect to postal contracts, the ulti-
mate 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 activi-
ties being performed on postal contracts of 
which that officer has cognizance, notwith-
standing 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 con-
tracting 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 the date that is 30 days after the date of en-
actment of this chapter. 
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‘‘§ 703. Posting of noncompetitive purchase requests 
for noncompetitive contracts 
‘‘(a) POSTING REQUIRED.— 
‘‘(1) POSTAL REGULATORY COMMISSION.—The 
Postal Regulatory Commission shall make the non-
competitive purchase request for any noncompetitive 
award for any contract (including any agreement or 
memorandum of understanding) entered into by the 
Postal Regulatory Commission for the procurement 
of goods and services, in an amount of $20,000 or 
more, including the rationale supporting the non-
competitive 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 busi-
ness interest. 
‘‘(2) POSTAL
SERVICE.—The Postal Service 
shall make the noncompetitive purchase request for 
any noncompetitive award of a postal contract in an 
amount of $250,000 or more, including the rationale 
supporting the noncompetitive award, publicly avail-
able on the Web site of the Postal Service— 
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‘‘(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 THRESH-
OLD.— 
‘‘(A) REVIEW AND DETERMINATION.—Not 
later than January 31 of each year, the Postal 
Service and the Postal Regulatory Commission 
shall— 
‘‘(i) review the applicable threshold es-
tablished under paragraph (1) or (2); and 
‘‘(ii) based on any change in the Con-
sumer Price Index for All Urban Con-
sumers of the Department of Labor, deter-
mine whether an adjustment to the thresh-
old shall be made. 
‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad-
justment under subparagraph (A) shall be made 
in increments of $5,000. If the covered postal 
entity determines that a change in the Con-
sumer Price Index for a year would require an 
adjustment in an amount that is less than 
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$5,000, the 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 en-
actment of this chapter. 
‘‘(b) PUBLIC AVAILABILITY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the information required to be made publicly avail-
able by a covered postal entity under subsection (a) 
shall be readily accessible on the Web site of the cov-
ered postal entity. 
‘‘(2) PROTECTION OF PROPRIETARY INFORMA-
TION.—A covered postal entity shall— 
‘‘(A) carefully screen any description of the 
rationale supporting a noncompetitive award re-
quired to be made publicly available under sub-
section (a) to determine whether the description 
includes proprietary data (including any ref-
erence or citation to the proprietary data) or se-
curity-related information; and 
‘‘(B) remove any proprietary data or secu-
rity-related information before making publicly 
available a description of the rationale sup-
porting a noncompetitive award. 
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‘‘(c) WAIVERS.— 
‘‘(1) WAIVER PERMITTED.—If the Postal Serv-
ice determines that making a noncompetitive pur-
chase request for a postal contract of the Postal 
Service publicly available would risk placing the 
Postal Service at a competitive disadvantage relative 
to a private sector competitor, the senior procure-
ment executive, in consultation with the advocate for 
competition of the Postal Service, may waive the re-
quirements under subsection (a). 
‘‘(2) FORM AND CONTENT OF WAIVER.— 
‘‘(A) FORM.—A waiver under paragraph 
(1) shall be in the form of a written determina-
tion placed in the file of the contract to which 
the noncompetitive purchase request relates. 
‘‘(B) CONTENT.—A waiver under para-
graph (1) shall include— 
‘‘(i) a description of the risk associ-
ated with making the noncompetitive pur-
chase request publicly available; and 
‘‘(ii) a statement that redaction of 
sensitive information in the noncompetitive 
purchase request would not be sufficient to 
protect the Postal Service from being 
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placed at a competitive disadvantage rel-
ative to a private sector competitor. 
‘‘(3) DELEGATION
OF
WAIVER
AUTHORITY.— 
The Postal Service may not delegate the authority to 
approve a waiver under paragraph (1) to any em-
ployee having less authority than the senior procure-
ment executive. 
‘‘§ 704. 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 appro-
priate resolution of ethical issues. 
‘‘§ 705. 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 en-
tity whose decisionmaking affects a postal con-
tract as determined by regulations prescribed 
by the head of a covered postal entity; 
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‘‘(2) the term ‘final conviction’ means a convic-
tion, 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 Regula-
tions, 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 re-
quest for a noncompetitive postal contract a 
written certification that— 
‘‘(i) discloses any covered relationship 
of the covered employee; and 
‘‘(ii) states that the covered employee 
will not take any action with respect to the 
noncompetitive purchase request that af-
fects the financial interests of a friend, rel-
ative, or person with whom the covered 
employee is affiliated in a nongovernmental 
capacity, or otherwise gives rise to an ap-
pearance of the use of public office for pri-
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116 
vate gain, as described in section 2635.702 
of title 5, Code of Federal Regulations, or 
any successor thereto; 
‘‘(B) require a contracting officer to con-
sult 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 cov-
ered 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 Eth-
ical Conduct for Employees of the Executive 
Branch), or any successor thereto; 
‘‘(C) require the ethics counsel for a cov-
ered 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 pur-
chase request would give rise to a violation of 
part 2635 of title 5, Code of Federal Regula-
tions (commonly referred to as the Standards of 
Ethical Conduct for Employees of the Executive 
Branch), or any successor thereto; 
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‘‘(D) under subsections (d) and (e) of sec-
tion 2635.502 of title 5, Code of Federal Regu-
lations, 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 subpara-
graph (A)(i) from participating in the non-
competitive 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 grant a waiver or other-
wise mitigate any organizational or personal 
conflict of interest, if the head of the covered 
postal entity determines that the waiver or miti-
gation is in the best interests of the covered 
postal entity. 
‘‘(2) POSTING OF WAIVERS.—Not later than 30 
days after the head of a covered postal entity grants 
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118 
a waiver described in paragraph (1)(F), the head of 
the covered postal entity shall make the waiver pub-
licly 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 enti-
ty under that contract. 
‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT 
INFORMATION.— 
‘‘(A) IN GENERAL.—In any case in which 
a contractor under a postal contract fails to 
timely disclose a conflict of interest to the ap-
propriate contracting officer as required under 
the regulations promulgated under subsection 
(b)(1)(E), the head of a covered postal entity 
may— 
‘‘(i) void that contract; and 
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119 
‘‘(ii) recover the amounts expended 
and property transferred by the covered 
postal entity under that contract. 
‘‘(B) CONVICTION OR ADMINISTRATIVE DE-
TERMINATION.—A case described under sub-
paragraph (A) is any case in which— 
‘‘(i) there is a final conviction for an 
offense punishable under section 2105 of 
title 41; or 
‘‘(ii) the head of a covered postal enti-
ty determines, based upon a preponderance 
of the evidence, that the contractor or 
someone acting for the contractor has en-
gaged in conduct constituting an offense 
punishable under section 2105 of such 
title.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters 
at the beginning of part I is amended by adding at the 
end the following: 
‘‘7. Contracting Provisions ............................................................
701’’. 
SEC. 402. TECHNICAL AMENDMENT TO DEFINITION. 
Section 7101(8) of title 41, United States Code, is 
amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
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(2) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(E) the United States Postal Service and 
the Postal Regulatory Commission.’’. 
Æ 
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