324 
(a)(1)) and shall be subject to the require-
ments of such chapter. 
SEC. 408. REIMBURSEMENT OF ALASKA BYPASS MAIL 
COSTS. 
(a) COST ESTIMATES BY POSTAL REGULATORY 
COMMISSION.—Section 3651(b) is amended— 
(1) by redesignating paragraph (2) as 
paragraph (3); and 
(2) by inserting after paragraph (1) 
the following: 
‘‘(2) ALASKA BYPASS MAIL COSTS.—In ad-
dition to the information required under 
subsection (a), each report under this 
section shall also include, with respect to 
the period covered by such report, an es-
timate of the costs incurred by the Postal 
Service in providing Alaska bypass mail 
service under section 5402.’’. 
(b) REIMBURSEMENTS.— 
(1) IN GENERAL.—Chapter 54 is amend-
ed by adding at the end the following: 
‘‘§ 5404. Reimbursement of Alaska bypass mail costs 
‘‘(a) IN GENERAL.—The State of Alaska, on 
an annual basis, shall make a payment to the 
Postal Service to reimburse the Postal Service 
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325 
for its costs in providing Alaska bypass mail 
service under section 5402 of this title. 
‘‘(b) DATE OF FIRST PAYMENT.—The State of 
Alaska shall make its first payment under 
subsection (a) on or before the last day of the 
first fiscal year of the State of Alaska begin-
ning after the date of enactment of this sec-
tion. 
‘‘(c) PAYMENT AMOUNTS.— 
‘‘(1) DETERMINATION OF AMOUNTS.—The 
amount of a payment under subsection 
(a) shall be determined based on the most 
recent cost estimate prepared by the 
Postal Regulatory Commission under sec-
tion 3651(b)(2) of this title (in this sub-
section referred to as the ‘cost estimate’). 
‘‘(2) FIRST
PAYMENT.—The first pay-
ment under subsection (a) shall be in an 
amount equal to 20 percent of the cost es-
timate. 
‘‘(3) 
SUBSEQUENT
PAYMENTS.—Each 
subsequent payment under subsection (a) 
shall be in an amount equal to a percent-
age of the cost estimate determined by 
adding 20 percent to the percentage due 
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in the prior year, except that no payment 
shall exceed 100 percent of the cost esti-
mate. 
‘‘(d) NOTICE
OF PAYMENT AMOUNTS.—Not 
later than 30 days after the date of issuance 
of a cost estimate by the Postal Regulatory 
Commission under section 3651(b)(2) of this 
title, the Postal Service shall furnish the State 
of Alaska with written notice of the amount 
of the next payment due under subsection (a). 
‘‘(e) DEPOSIT OF PAYMENTS.—Not later than 
the last day of the fiscal year of the State of 
Alaska in which notice of a payment is pro-
vided under subsection (d)— 
‘‘(1) the State of Alaska shall transmit 
the payment to the Postal Service; and 
‘‘(2) the Postal Service shall deposit 
the payment in the Postal Service Fund.’’. 
(2) CLERICAL
AMENDMENT.—The table 
of sections at the beginning of chapter 54 
is amended by adding at the end the fol-
lowing: 
‘‘5404. Reimbursement of Alaska bypass mail costs.’’. 
SEC. 409. APPROPRIATIONS MODERNIZATION. 
(a) IN GENERAL.—Section 2401 is amended 
by striking subsections (b) through (d). 
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(b) EFFECTIVE
DATE.—The amendment 
made by subsection (a) shall be effective with 
respect to fiscal years beginning after the 
date of enactment of this Act. 
SEC. 410. RETIREE HEALTH CARE BENEFIT PAYMENT DE-
FERRAL. 
Section 8909a of title 5, United States 
Code, is amended— 
(1) in the section heading, by striking 
‘‘Benefit’’ and inserting ‘‘Benefits’’; 
(2) in subsection (d)(3)(A)(v), by strik-
ing 
‘‘$5,500,000,000’’ 
and 
inserting 
‘‘$1,000,000,000’’; 
(3) 
in 
subsection 
(d)(3)(A)(ix), 
by 
striking ‘‘$5,700,000,000’’ and inserting 
‘‘$7,950,000,000’’; and 
(4) in subsection (d)(3)(A)(x), by strik-
ing 
‘‘$5,800,000,000’’ 
and 
inserting 
‘‘$8,050,000,000’’. 
TITLE V—POSTAL CONTRACTING 
REFORM 
SEC. 501. CONTRACTING PROVISIONS. 
(a) IN GENERAL.—Part I is amended by 
adding at the end the following: 
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‘‘CHAPTER 7—CONTRACTING PROVISIONS 
‘‘Sec. 
‘‘701. Definitions. 
‘‘702. Advocate for competition. 
‘‘703. Delegation of contracting authority. 
‘‘704. Posting of noncompetitive purchase requests for non-
competitive contracts. 
‘‘705. Review of ethical issues. 
‘‘706. Ethical restrictions on participation in certain con-
tracting activity. 
‘‘§ 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 Postal Service; or 
‘‘(B) the Postal Regulatory Com-
mission; 
‘‘(3) the term ‘head of a covered postal 
entity’ means— 
‘‘(A) in the case of the Postal Serv-
ice, the Postmaster General; or 
‘‘(B) in the case of the Postal Reg-
ulatory Commission, the Chairman of 
the Postal Regulatory Commission; 
‘‘(4) 
the 
term 
‘postal 
contract’ 
means— 
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‘‘(A) in the case of the Postal Serv-
ice, 
any 
contract 
(including 
any 
agreement or memorandum of under-
standing) entered into by the Postal 
Service for the procurement of goods 
or services; or 
‘‘(B) in the case of the Postal Reg-
ulatory Commission, any contract (in-
cluding any agreement or memo-
randum 
of 
understanding) 
in 
an 
amount exceeding the simplified ac-
quisition threshold (as defined in sec-
tion 134 of title 41 and adjusted under 
section 1908 of such title) entered 
into by the Postal Regulatory Com-
mission for the procurement of goods 
or services; and 
‘‘(5) the term ‘senior procurement ex-
ecutive’ means the senior procurement 
executive of a covered postal entity. 
‘‘§ 702. Advocate for competition 
‘‘(a) ESTABLISHMENT AND DESIGNATION.— 
‘‘(1) There is established in each cov-
ered postal entity an advocate for com-
petition. 
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