less of whether the amount is a liability or surplus) by 
September 30, 2055, or within 15 years, whichever is 
later, including interest at the rate used in the computa-
tions under this subsection. 
‘‘(B) The amount described in this subparagraph is 
the amount, as of the date on which the applicable com-
putation or recomputation under subparagraph (A) is 
made, that is equal to the difference between— 
‘‘(i) 100 percent of the Postal Service actuarial 
liability as of September 30 of the preceding fiscal 
year; and 
‘‘(ii) the value of the assets of the Postal Serv-
ice Retiree Health Benefits Fund as of September 
30 of the preceding fiscal year.’’; 
(C) in paragraph (3)— 
(i) in subparagraph (A)— 
(I) in clause (iii), by adding 
‘‘and’’ at the end; 
(II) in clause (iv), by striking the 
semicolon at the end and inserting a 
period; and 
(III) by striking clauses (v) 
through (x); and 
(ii) in subparagraph (B)— 
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(I) in clause (i), by striking 
‘‘paragraph (1)’’ and inserting ‘‘para-
graph (1), except to the extent the 
payment would cause the value of the 
assets in the Fund to exceed the Post-
al Service actuarial liability’’; and 
(II) in clause (ii), by striking 
‘‘paragraph (2)(B).’’ and inserting 
‘‘paragraph (2).’’; 
(D) by amending paragraph (4) to read as 
follows: 
‘‘(4) Computations under this subsection shall be 
based on— 
‘‘(A) economic and actuarial methods and as-
sumptions consistent with the methods and assump-
tions used in determining the Postal surplus or sup-
plemental liability under section 8348(h); and 
‘‘(B) any other methods and assumptions, in-
cluding a health care cost trend rate, that the Direc-
tor of the Office determines to be appropriate.’’; and 
(E) by adding at the end the following: 
‘‘(7) In this subsection, the term ‘Postal Service actu-
arial liability’ means the difference between— 
‘‘(A) the net present value of future payments 
required to be paid from the Postal Service Retiree 
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Health 
Benefits 
Fund 
under 
section 
8906(g)(2)(A)(ii)(I) for current and future United 
States Postal Service annuitants; and 
‘‘(B) the net present value as computed under 
paragraph (1) attributable to the future service of 
United States Postal Service employees. 
‘‘(8) For purposes of computing an amount under 
paragraph (1) or (7)(A), subclause (I) of section 
8906(g)(2)(A)(ii) shall be applied without regard to the 
limit in such subclause with respect to the amount con-
tained in the Fund.’’; and 
(2) by adding at the end the following: 
‘‘(e) Subsections (a) through (d) of this section shall 
be subject to the requirements of section 8903c.’’. 
(c) CANCELLATION OF CERTAIN UNPAID OBLIGA-
TIONS OF THE POSTAL SERVICE.—Any obligation of the 
Postal Service under section 8909a(d)(3)(A) of title 5, 
United States Code, as in effect on the day before the date 
of enactment of this Act, that remains unpaid as of such 
date of enactment is canceled. 
(d) TECHNICAL AND CONFORMING AMENDMENT.— 
The heading of section 8909a of title 5, United States 
Code, is amended by striking ‘‘Benefit’’ and inserting 
‘‘Benefits’’. 
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SEC. 103. POSTAL SERVICE PENSION FUNDING REFORM. 
(a) CIVIL SERVICE RETIREMENT SYSTEM.—Section 
8348(h) of title 5, United States Code, is amended— 
(1) in paragraph (2), 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, 
for each fiscal year beginning after September 30, 2016. 
Subject to subparagraph (C), beginning June 15, 2018, 
if the result is a surplus or 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 surplus or liability to the Postal Service 
or the Fund (as the case may be) by September 30, 2043. 
‘‘(C) No later than June 30, 2033, the Office shall 
determine, and thereafter redetermine as necessary, but 
not more frequently than once per year, the appropriate 
date to complete the liquidation of any remaining surplus 
or liability determined under this paragraph. The deter-
mination under this subparagraph shall be set in accord-
ance with generally accepted actuarial practices and prin-
ciples and shall not be longer than a period of 15 years 
from the date on which the determination is made.’’; and 
(2) by adding at the end the following: 
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‘‘(4) For the purpose of carrying out paragraph (1), 
for fiscal year 2017 and each fiscal year thereafter, the 
Office shall use— 
‘‘(A) demographic factors specific to current 
and former employees of the United States Postal 
Service, unless such data cannot be generated; and 
‘‘(B) economic assumptions regarding wage and 
salary growth that reflect the specific past, and like-
ly future, pay for current employees of the United 
States Postal Service.’’. 
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM LI-
ABILITY ASSUMPTION REFORM.—Section 8423 of title 5, 
United States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
(I) in clause (i), by striking ‘‘sub-
paragraph (B)),’’ and inserting ‘‘sub-
paragraph (B) or (C)),’’; and 
(II) in clause (ii), by striking 
‘‘and’’ at the end; 
(ii) in subparagraph (B)(ii), by strik-
ing the period at the end and inserting ‘‘; 
and’’; and 
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(iii) by adding at the end the fol-
lowing: 
‘‘(C) the product of— 
‘‘(i) the normal-cost percentage, as deter-
mined for employees (other than employees cov-
ered by subparagraph (B)) of the United States 
Postal Service under paragraph (5), multiplied 
by 
‘‘(ii) the aggregate amount of basic pay 
payable by the United States Postal Service, for 
the period involved, to employees of the United 
States Postal Service.’’; and 
(B) by adding at the end the following: 
‘‘(5)(A) In determining the normal-cost percentage 
for employees of the United States Postal Service for pur-
poses of paragraph (1)(C), the Office shall use— 
‘‘(i) demographic factors specific to such em-
ployees, unless such data cannot be generated; and 
‘‘(ii) economic assumptions regarding wage and 
salary growth that reflect the specific past, and like-
ly future, pay for such employees. 
‘‘(B) The United States Postal Service shall provide 
any data or projections the Office requires in order to de-
termine the normal-cost percentage for employees of the 
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United States Postal Service, consistent with subpara-
graph (A). 
‘‘(C) The Office shall review the determination of the 
normal-cost percentage for employees of the United States 
Postal Service and make such adjustments as the Office 
considers necessary— 
‘‘(i) upon request of the United States Postal 
Service, but not more frequently than once each fis-
cal year; and 
‘‘(ii) at such other times as the Office considers 
appropriate. 
‘‘(6) For the purpose of carrying out subsection 
(b)(1)(B), and consistent with paragraph (5), for fiscal 
year 2017, and each fiscal year thereafter, the Office shall 
use— 
‘‘(A) demographic factors specific to current 
and former employees of the United States Postal 
Service, unless such data cannot be generated; and 
‘‘(B) economic assumptions regarding wage and 
salary growth that reflect the specific past, and like-
ly future, pay for current employees of the United 
States Postal Service.’’; and 
(2) in subsection (b)— 
(A) by redesignating paragraph (5) as 
paragraph (6); and 
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(B) by inserting after paragraph (4) the 
following: 
‘‘(5)(A) In this paragraph, the term ‘postal funding 
surplus’ means the amount by which the amount of the 
supplemental liability computed under paragraph (1)(B) 
is less than zero. 
‘‘(B) If the amount of supplemental liability com-
puted under paragraph (1)(B) as of the close of any fiscal 
year after the date of enactment of the Postal Service Re-
form Act of 2017 is less than zero, the Office shall estab-
lish an amortization schedule, including a series of equal 
annual installments that— 
‘‘(i) provide for the liquidation of the postal 
funding surplus in 30 years, commencing on Sep-
tember 30 of the subsequent fiscal year; and 
‘‘(ii) shall be transferred to the Postal Service 
Fund.’’. 
SEC. 104. MEDICARE PART B PREMIUM TRANSITION FOR 
NEWLY ENROLLING POSTAL SERVICE ANNU-
ITANTS AND FAMILY MEMBERS. 
(a) IN GENERAL.—Section 1839 of the Social Secu-
rity Act (42 U.S.C. 1395r) is amended by adding at the 
end the following new subsection: 
‘‘(j) TRANSITION FOR NEWLY ENROLLING POSTAL 
SERVICE ANNUITANTS AND FAMILY MEMBERS.—With re-
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spect to each individual who is enrolled under this part 
pursuant to and during the open enrollment period estab-
lished under section 1837(m) and who is not eligible for 
Medicare 
cost-sharing 
described 
in 
section 
1905(p)(3)(A)(ii) under a State plan under title XIX, the 
premium otherwise established under this part (taking 
into account any adjustments, including those under sub-
sections (b) and (i)) for a month— 
‘‘(1) in the initial contract year (as defined in 
section 8903c(a) of title 5, United States Code), 
shall be reduced by 75 percent; 
‘‘(2) in the succeeding year, shall be reduced by 
50 percent; and 
‘‘(3) in the second succeeding year, shall be re-
duced by 25 percent.’’. 
(b) FUNDING THROUGH POSTAL SERVICE FUND.— 
Section 1844 of the Social Security Act (42 U.S.C. 
1395w) is amended— 
(1) in the last sentence of subsection (a), by 
striking ‘‘under subsection (d)(1) with respect to en-
rollees described in subparagraphs (A) and (B) of 
such subsection’’ and inserting ‘‘under subsections 
(d)(1) and (d)(4) with respect to enrollees described 
in subparagraphs (A) and (B) of such respective 
subsection’’; and 
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(2) in subsection (d), by adding at the end the 
following new paragraph: 
‘‘(4) For each year, there shall be transferred from 
the Postal Service Fund to the Trust Fund an amount, 
as estimated by the Chief Actuary of the Centers for Medi-
care & Medicaid Services, equal to the reduction in aggre-
gate premiums payable under this part for a month in 
such year that is attributable to the application of section 
1839(j) with respect to— 
‘‘(A) enrollees age 65 and over; and 
‘‘(B) enrollees under age 65. 
Such amounts shall be transferred from time to time as 
appropriate but, to the extent practicable, on an annual 
basis and in a manner that places the Trust Fund in the 
same actuarial status as if this paragraph and section 
1839(j) did not apply.’’. 
TITLE II—POSTAL SERVICE 
OPERATIONS REFORM 
SEC. 201. GOVERNANCE REFORM. 
(a) BOARD OF GOVERNORS.— 
(1) IN
GENERAL.—Section 202 of title 39, 
United States Code, is amended to read as follows: 
‘‘§ 202. Board of Governors 
‘‘(a) IN GENERAL.—There is established in the Post-
al Service a Board of Governors composed of 5 Governors, 
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a Postmaster General, and a Deputy Postmaster General, 
all of whom shall be appointed in accordance with this sec-
tion. The Governors shall have the power to— 
‘‘(1) exercise the powers of the Postal Service, 
consistent with section 203(c); 
‘‘(2) appoint, fix the term of service of, and re-
move the Postmaster General; 
‘‘(3) in consultation with the Postmaster Gen-
eral, appoint, fix the term of service of, and remove 
the Deputy Postmaster General; 
‘‘(4) set the strategic direction of postal oper-
ations and approve the pricing and product strategy 
for the Postal Service; 
‘‘(5) set the compensation of the Postmaster 
General and the Deputy Postmaster General in ac-
cordance with private sector best practices, as deter-
mined by the Governors pursuant to section 3686; 
and 
‘‘(6) carry out any other duties specifically pro-
vided for in this title. 
‘‘(b) APPOINTMENT; PAY.— 
‘‘(1) IN GENERAL.—The Governors shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate, not more than 3 of whom 
may be adherents of the same political party. The 
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Governors shall elect a Chair from among their 
members. The Governors shall represent the public 
interest generally, and shall be chosen solely on the 
basis of their experience in the field of public admin-
istration, law, or accounting, or on their dem-
onstrated ability in managing organizations or cor-
porations (in either the public or private sector) of 
substantial size, except that at least 3 of the Gov-
ernors shall be chosen solely on the basis of their 
demonstrated ability in managing organizations or 
corporations (in either the public or private sector) 
that employ at least 10,000 employees. The Gov-
ernors shall not be representatives of specific inter-
ests using the Postal Service, and may be removed 
only for cause. 
‘‘(2) COMPENSATION.—Each Governor shall re-
ceive a salary of $30,000 a year plus $300 a day for 
not more than 42 days of meetings each year and 
shall be reimbursed for travel and reasonable ex-
penses incurred in attending meetings of the Board. 
Nothing in the preceding sentence shall be construed 
to limit the number of days of meetings each year 
to 42 days. 
‘‘(3) CONSULTATION.—In selecting the individ-
uals described in paragraph (1) for nomination for 
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appointment to the position of Governor, the Presi-
dent should consult with the Speaker of the House 
of Representatives, the minority leader of the House 
of Representatives, the majority leader of the Sen-
ate, and the minority leader of the Senate. 
‘‘(c) TERMS OF GOVERNORS.— 
‘‘(1) IN GENERAL.—The terms of the 5 Gov-
ernors shall be 7 years, except that the terms of the 
5 Governors first taking office shall expire as des-
ignated by the President at the time of appointment, 
1 at the end of 1 year, 1 at the end of 2 years, 1 
at the end of 3 years, 1 at the end of 4 years, and 
1 at the end of 5 years, following the appointment 
of the first of them. Any Governor appointed to fill 
a vacancy before the expiration of the term for 
which the Governor’s predecessor was appointed 
shall serve for the remainder of such term. A Gov-
ernor may continue to serve after the expiration of 
the Governor’s term until such Governor’s successor 
has qualified, but not to exceed one year. 
‘‘(2) LIMITATION.—No individual may serve 
more than 2 terms as a Governor. 
‘‘(d) STAFF.—The Chair of the Board of Governors 
shall ensure that the Board has appropriate independent 
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staff to carry out the roles and responsibilities of the 
Board and the Governors.’’. 
(2) APPLICATION.—Any individual serving as a 
Governor on the Board of Governors of the Postal 
Service on the date of enactment of this Act shall 
continue to serve as a Governor until the term appli-
cable to such individual expires (as determined 
under section 202(b) of title 39, United States Code, 
as in effect before the amendments made by this 
section take effect pursuant to subsection (g)). 
(b) POSTMASTER GENERAL.— 
(1) IN
GENERAL.—Section 203 of title 39, 
United States Code, is amended to read as follows: 
‘‘§ 203. Postmaster General 
‘‘(a) IN GENERAL.—The chief executive officer of the 
Postal Service is the Postmaster General, appointed pur-
suant to section 202(a)(2). The alternate chief executive 
officer of the Postal Service is the Deputy Postmaster 
General, appointed pursuant to section 202(a)(3) of this 
title. 
‘‘(b) POWERS.—Consistent with the requirements of 
this title, the exercise of the power of the Postal Service 
shall be vested in the Governors and carried out by the 
Postmaster General in a manner consistent with the stra-
tegic direction and pricing and product strategy approved 
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by the Governors. The Postmaster General shall, in ac-
cordance with by-laws determined appropriate by the 
Board, consult with the Governors and the Deputy Post-
master General in carrying out such power.’’. 
(2) CONFORMING AMENDMENT.—The item re-
lating to section 203 in the table of sections for 
chapter 2 of title 39, United States Code, is amend-
ed to read as follows: 
‘‘203. Postmaster General.’’. 
(c) PROCEDURES OF THE BOARD.—Section 205 of 
title 39, United States Code, is amended to read as fol-
lows: 
‘‘§ 205. Procedures of the Board of Governors and the 
Governors 
‘‘(a) VACANCIES.—Vacancies in the Board shall not 
impair the powers of the Board or the Governors under 
this title. 
‘‘(b) VOTE.—The Board and the Governors shall act 
upon majority vote of those members who are present, 
subject to such quorum requirements as the Board and 
the Governors may respectively establish. 
‘‘(c) LIMITATION.—No officer or employee of the 
United States may serve concurrently as a Governor. A 
Governor may hold any other office or employment not 
inconsistent or in conflict with the Governor’s duties, re-
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sponsibilities, and powers as an officer of the Government 
of the United States in the Postal Service.’’. 
(d) DELEGATION OF AUTHORITY.—Section 402 of 
title 39, United States Code, is amended to read as fol-
lows: 
‘‘§ 402. Delegation of authority 
‘‘(a) POSTMASTER GENERAL.—The Postmaster Gen-
eral may delegate his or her authority under such terms, 
conditions, and limitations, including the power of redele-
gation, as he or she determines desirable. The Postmaster 
General may establish such committees of officers and em-
ployees of the Postal Service, and delegate such powers 
to any committee, as the Postmaster General determines 
appropriate to carry out his or her functions and duties. 
Delegations under this section shall be consistent with 
other provisions of this title, shall not relieve the Post-
master General of full responsibility for the carrying out 
the Postmaster General’s duties and functions, and shall 
be revocable by the Postmaster General. 
‘‘(b) BOARD OF GOVERNORS.—The Board may estab-
lish such committees of the Board, and delegate such pow-
ers to any committee, as the Board determines appro-
priate to carry out its functions and duties. Delegations 
to committees shall be consistent with other provisions of 
this title, shall not relieve the Board of full responsibility 
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for the carrying out of its duties and functions, and shall 
be revocable by the Board in its exclusive judgment.’’. 
(e) INTERNATIONAL POSTAL ARRANGEMENTS.— 
(1) IN
GENERAL.—Section 407 of title 39, 
United States Code, is amended by adding at the 
end the following: 
‘‘(f) After submission to the Postal Regulatory Com-
mission by the Department of State of the budget detail-
ing the estimated costs of carrying out the activities under 
this section, and the Commission’s review and approval 
of such submission, the Postal Service shall transfer to 
the Department of State, from any funds available to the 
Postal Service, such sums as may be reasonable, docu-
mented, and auditable for the Department of State to 
carry out such activities.’’. 
(2) APPLICATION.—The amendment made by 
paragraph (1) shall take effect on October 1 of the 
first fiscal year beginning after the date of enact-
ment of this Act. 
(3) CONFORMING
AMENDMENT.—Section 633 
of title VI of the Treasury and General Government 
Appropriations Act, 1999 (Public Law 105–277; 39 
U.S.C. 407 note) is amended by striking subsection 
(d). 
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(f) TECHNICAL AND CONFORMING AMENDMENTS.— 
Title 39, United States Code, is amended as follows: 
(1) In section 102(3)— 
(A) by striking ‘‘9 members’’ and inserting 
‘‘5 members’’; and 
(B) by striking ‘‘section 202(a)’’ and in-
serting ‘‘section 202(b)(1)’’. 
(2) In section 204— 
(A) by striking ‘‘the Board’’ and inserting 
‘‘the Postmaster General’’; and 
(B) by striking ‘‘the Governors and’’. 
(3) In section 207, by striking ‘‘the Board’’ and 
inserting ‘‘the Postal Service’’. 
(4) In section 414(b)(2), by striking ‘‘the Gov-
ernors’’ in each instance it appears and inserting 
‘‘the Postal Service’’. 
(5) In section 416(c)— 
(A) by striking ‘‘the Governors’’ and in-
serting ‘‘the Postal Service’’; and 
(B) by striking ‘‘they’’ and inserting ‘‘the 
Postal Service’’. 
(6) In section 1011, by striking ‘‘the Board’’ 
and inserting ‘‘the Postal Service’’. 
(7) By striking section 2402 and inserting the 
following: 
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‘‘§ 2402. Annual report 
‘‘The Postmaster General shall render an annual re-
port concerning the operations of the Postal Service under 
this title to the President and Congress.’’. 
(8) In section 3632— 
(A) by striking the section heading, and in-
serting ‘‘Establishment of rates and 
classes of competitive products’’; 
(B) by striking subsection (a) and redesig-
nating subsections (b) and (c) as (a) and (b), 
respectively; 
(C) in paragraph (a)(2) (as redesignated 
by subparagraph (B)), by striking ‘‘and the 
record of the Governors’ proceedings in connec-
tion with such decision’’; 
(D) in paragraph (a)(3) (as redesignated 
by subparagraph (B))— 
(i) by striking ‘‘and the record of the 
proceedings in connection with such deci-
sion’’; and 
(ii) by striking ‘‘the Governors con-
sider’’ and inserting ‘‘the Postal Service 
considers’’; and 
(E) by striking ‘‘the Governors’’ in each 
instance it appears and inserting ‘‘the Postal 
Service’’. 
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(9) The table of sections for chapter 36 is 
amended by striking the item relating to section 
3632 and inserting the following: 
‘‘3632. Establishment of rates and classes of competitive products.’’. 
(g) DELAYED EFFECTIVE DATE.—The amendments 
made by this section shall take effect upon the date that 
is 30 days after the date of enactment of this Act. 
SEC. 202. TRANSITION TO MORE EFFICIENT AND SECURE 
MAIL DELIVERY. 
(a) IN GENERAL.—Subchapter VII of chapter 36 of 
title 39, United States Code, is amended by adding at the 
end the following: 
‘‘§ 3692. Delivery-point modernization 
‘‘(a) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘delivery point’ means a mailbox 
or other receptacle to which mail is delivered; 
‘‘(2) the term ‘primary mode of mail delivery’ 
means the typical method by which the Postal Serv-
ice delivers letter mail to the delivery point of a 
postal patron; 
‘‘(3) the term ‘door delivery’ means a primary 
mode of mail delivery whereby mail is placed into a 
slot or receptacle at or near the postal patron’s door 
or is hand delivered to a postal patron, but does not 
include centralized delivery, curbside delivery, or 
sidewalk delivery; 
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‘‘(4) the term ‘centralized delivery’ means a pri-
mary mode of mail delivery whereby mail receptacles 
of a number of delivery points are grouped or clus-
tered at a single location; 
‘‘(5) the term ‘curbside delivery’ means a pri-
mary mode of mail delivery whereby a mail recep-
tacle is situated at the edge of a sidewalk abutting 
a road or curb, at a road, or at a curb, and can be 
served by a letter carrier from a motorized vehicle; 
and 
‘‘(6) the term ‘sidewalk delivery’ means a pri-
mary mode of mail delivery whereby a mail recep-
tacle is situated at the edge of a sidewalk and can 
be served by a letter carrier from the sidewalk. 
‘‘(b) POLICY.—It shall be the policy of the Postal 
Service— 
‘‘(1) to provide access to secure, convenient 
mail and package delivery receptacles to the greatest 
number of postal patrons feasible; and 
‘‘(2) to use the most cost-effective primary 
mode of mail delivery feasible for postal patrons. 
‘‘(c) PHASEOUT OF DOOR DELIVERY FOR NEW AD-
DRESSES.— 
‘‘(1) IN GENERAL.—For any new delivery point 
established after the date of enactment of the Postal 
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Service Reform Act of 2017, the Postal Service shall 
provide a primary mode of mail delivery other than 
door delivery, with a preference for secure, central-
ized delivery. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply in circumstances in which the new delivery 
point is built or established within a block of exist-
ing delivery points whose primary mode of mail de-
livery is door delivery. 
‘‘(d) BUSINESS ADDRESS CONVERSION.— 
‘‘(1) IDENTIFICATION.—Not later than 1 year 
after the date of the Postal Service Reform Act of 
2017, each Postal Service district office shall iden-
tify the business delivery points within its service 
area that are appropriate candidates for conversion 
from door delivery to centralized delivery, curbside 
delivery, or sidewalk delivery. 
‘‘(2) CONVERSION
REQUIREMENT.—Beginning 
not later than October 1, 2018, the Postal Service 
shall implement a program to convert delivery points 
identified under paragraph (1) to centralized deliv-
ery, curbside delivery, or sidewalk delivery at a rate 
sufficient to ensure that— 
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‘‘(A) not less than 20 percent of such de-
livery points are converted by September 30, 
2019; 
‘‘(B) not less than 40 percent of such de-
livery points are converted by September 30, 
2020; 
‘‘(C) not less than 60 percent of such de-
livery points are converted by September 30, 
2021; 
‘‘(D) not less than 80 percent of such de-
livery points are converted by September 30, 
2022; and 
‘‘(E) all such delivery points are converted 
by September 30, 2023. 
‘‘(3) NOTIFICATION.—In carrying out conver-
sions under paragraph (2), the Postal Service shall 
provide written notice at least 60 days in advance of 
the implementation date of a change in primary 
mode of mail delivery to postal customers served by 
an applicable delivery point. 
‘‘(e) RESIDENTIAL ADDRESS CONVERSION.— 
‘‘(1) IDENTIFICATION.—Not later than 1 year 
after the date of the enactment of the Postal Service 
Reform Act of 2017, each Postal Service district of-
fice shall identify the residential delivery points with-
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in its service area that are appropriate candidates 
for conversion from door delivery to centralized de-
livery, curbside delivery, or sidewalk delivery. 
‘‘(2) VOLUNTARY CONVERSION.—Not later than 
October 1, 2018, the Postal Service shall commence 
a program to convert delivery points identified under 
paragraph (1) to centralized delivery, curbside deliv-
ery, or sidewalk delivery. Such program shall operate 
as follows: 
‘‘(A) Not later than 3 months after the 
identification of the delivery points under para-
graph (1), the Postal Service shall divide such 
delivery points into geographically based ad-
dress units (such as street blocks or other simi-
lar reasonably segregable units) not to exceed 
50 delivery points per unit. 
‘‘(B) Not later than 6 months after such 
identification, the Postal Service shall provide 
written notification to postal patrons served by 
each identified delivery point containing the fol-
lowing: 
‘‘(i) Notice that the delivery point has 
been proposed for conversion to a more ef-
ficient primary mode of mail delivery to 
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more economically provide universal postal 
service and improve service. 
‘‘(ii) A description of the new primary 
mode of delivery proposed by the Postal 
Service and a visual example of such mode. 
‘‘(iii) A conversion consent form and 
notice that conversion for residential ad-
dresses is on a voluntary basis. 
‘‘(iv) A description of benefits of con-
version to the postal patron, including ac-
cess to secure mail and package delivery, 
and benefits of conversion to the Postal 
Service, including a smaller environmental 
impact for delivery. 
‘‘(v) A description of how the conver-
sion process would work, and the monetary 
costs (if any) to the postal patron. 
‘‘(vi) Any other information the Postal 
Service considers necessary. 
‘‘(C) No delivery point may be converted 
under this subsection unless prior written con-
sent is provided to the Postal Service by a post-
al patron served by such delivery point who is 
at least 18 years old, except as provided for in 
subparagraph (E). Prior to the conversion of a 
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delivery point under this section, any written 
consent so provided may be withdrawn by such 
patron or by any other postal patron served by 
such delivery point who is at least 18 years old 
upon written notification to the Postal Service. 
The Postal Service shall place on the Postal 
Service’s public website an option to request 
that a consent form or consent-withdrawal form 
be delivered to any delivery point identified for 
conversion under this subsection. 
‘‘(D) Upon the receipt of written consent 
applicable to at least 40 percent of the delivery 
points within an address unit described under 
subparagraph (A), the Postal Service shall— 
‘‘(i) not later than 30 days after the 
date that the requisite percentage is 
reached, provide written notice to each de-
livery point within such unit stating that 
the conversion threshold has been reached 
and that— 
‘‘(I) with respect to any delivery 
point for which a consent for conver-
sion was received, that the primary 
mode of mail delivery for such address 
will be converted; and 
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‘‘(II) with respect to any delivery 
point for which a consent for conver-
sion was not received, that— 
‘‘(aa) a postal patron served 
by such delivery point may elect, 
by written consent, at any time 
to convert the primary mode of 
mail delivery to the same form of 
delivery as the converted delivery 
points in such unit; and 
‘‘(bb) if such a patron pro-
vides such consent, the primary 
mode of mail delivery shall be 
converted not later than 30 days 
after the date of such consent or, 
in any case where the conversion 
of delivery points has not yet oc-
curred, upon implementation of 
that conversion; 
‘‘(ii) not later than 90 days after the 
date that the requisite percentage is 
reached, but not less than 30 days fol-
lowing the written notice under clause (i), 
convert the delivery points for which con-
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sent was received to the applicable new pri-
mary mode of mail delivery; and 
‘‘(iii) following the conversion of an 
address unit, ensure that the primary 
mode of mail delivery for any new resi-
dents to the address unit is the converted 
primary mode of mail, regardless of the 
primary mode of mail delivery for the pre-
vious occupant. 
‘‘(E) Any delivery point created pursuant 
to subsection (c)(2) shall be automatically and 
irrevocably deemed to consent to delivery con-
version if the delivery point is established with-
in, or later becomes a part of, an address unit 
that is proposed for conversion to a different 
primary mode of mail delivery. 
‘‘(f) CONSIDERATIONS.—In making a determination 
to convert the primary mode of mail delivery under this 
section, the Postal Service shall consider— 
‘‘(1) the impact of weather conditions, physical 
barriers, or any other factor that may impact the 
feasibility of providing a primary mode of mail deliv-
ery other than door delivery (such as a factor that 
may significantly reduce the potential cost savings 
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associated with providing centralized delivery or 
curbside delivery); 
‘‘(2) whether the address is in a registered his-
toric district (as that term is defined in section 
47(c)(3)(B) of the Internal Revenue Code of 1986), 
is listed on the National Register of Historic Places, 
is designated as a National Historic Landmark, or 
is of historic value; and 
‘‘(3) population density and the concentration 
of poverty. 
‘‘(g) WAIVER FOR PHYSICAL HARDSHIP.— 
‘‘(1) IN GENERAL.—The Postal Service shall es-
tablish and maintain a waiver program under which, 
upon application, door delivery may be continued, or 
provided, for a delivery point identified under sub-
section (d)(1) or (e)(1) at no cost to the applicant 
in any case in which— 
‘‘(A) centralized delivery, curbside delivery, 
or sidewalk delivery would, but for this para-
graph, otherwise be the primary mode of mail 
delivery; and 
‘‘(B) door delivery is necessary in order to 
avoid causing significant physical hardship or 
physical safety risks to a postal patron. 
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‘‘(2) TREATMENT OF WAIVER.—An address re-
ceiving door delivery pursuant to a waiver under this 
subsection— 
‘‘(A) shall be counted, for purposes of the 
reporting requirement under subsection (j), as 
an address that receives the primary mode of 
mail delivery which the address would be sub-
ject to if not for the waiver; and 
‘‘(B) shall, not later than 60 days after 
ceasing to meet the requirements of paragraph 
(1), be converted to the primary mode of mail 
delivery which is otherwise applicable. 
‘‘(h) PROCEDURES.—In carrying out conversions 
under this section, the Postal Service shall establish proce-
dures to— 
‘‘(1) solicit, consider, and respond to input from 
the general public, postal patrons, State and local 
governments, local associations, and property own-
ers; 
‘‘(2) calculate and make publicly accessible the 
cost or savings of the conversion to the Postal Serv-
ice as well as the average conversion cost or savings 
to each postal patron and any cost or savings to the 
State and local government; and 
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‘‘(3) place centralized delivery points in loca-
tions that maximize delivery efficiency, ease of use 
for postal patrons, and respect for private property 
rights. 
‘‘(i) VOUCHER PROGRAM.—The Postal Service shall 
provide for a voucher program under which, upon applica-
tion, the Postal Service may defray all or any portion of 
the costs of new mail receptacles associated with conver-
sion from door delivery under this section which would 
otherwise be borne by postal patrons. 
‘‘(j) ANNUAL REPORT.—Not later than 60 days after 
the end of each of fiscal years 2018 through 2023, the 
Postal Service shall submit to Congress and the Inspector 
General a report on the implementation of this section 
during the most recently completed fiscal year. Each such 
report shall include— 
‘‘(1) the number of residential and business ad-
dresses that— 
‘‘(A) receive door delivery as of the end of 
the fiscal year preceding the most recently com-
pleted fiscal year; 
‘‘(B) receive door delivery as of the end of 
the most recently completed fiscal year; and 
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‘‘(C) during the most recently completed 
fiscal year, were converted from door delivery 
to— 
‘‘(i) centralized delivery; 
‘‘(ii) curbside delivery; and 
‘‘(iii) any other primary mode of mail 
delivery; 
‘‘(2) the estimated cost savings from the con-
versions described in paragraph (1)(C); 
‘‘(3) a description of the progress made by the 
Postal Service toward meeting the requirements of 
the phaseout under subsection (c); and 
‘‘(4) any other information which the Postal 
Service considers appropriate. 
‘‘(k) INSPECTOR GENERAL AUDIT.—The Inspector 
General shall issue an annual audit report on the imple-
mentation of this section not later than 90 days after the 
date on which the Postal Service releases its annual report 
under subsection (j). Such report shall include— 
‘‘(1) an audit of the data contained in the Post-
al Service’s report under subsection (j); and 
‘‘(2) an evaluation of the Postal Service’s imple-
mentation of the voucher program under subsection 
(i). 
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‘‘(l) REVIEW.—Subchapters IV and V shall not apply 
with respect to any action taken by the Postal Service 
under this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 36 of title 39, United States Code, is amended 
by adding after the item relating to section 3691 the fol-
lowing: 
‘‘3692. Delivery-point modernization.’’. 
(c) UPDATED DELIVERY COST DATA.— 
(1) STUDY.—Not later than 180 days after the 
date of the enactment of this Act, the Postal Service 
shall begin to collect data on delivery mode costs and 
the potential savings of converting to more cost-effi-
cient primary modes of mail delivery. 
(2) REPORT.—Not later than 2 years after the 
date of enactment of this Act, the Postal Service 
shall submit to the Committee on Oversight and 
Government Reform of the House of Representatives 
and the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate a report describing 
the findings of the study conducted under paragraph 
(1). 
(d) INSPECTOR GENERAL REVIEW OF COSTS AND 
BENEFITS OF DELIVERY POINT CONVERSIONS.— 
(1) STUDY.—Not later than 2 years after the 
date on which the Postal Service commences delivery 
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point conversions pursuant to subsections (d)(2) and 
(e)(2) of section 3692 of title 39, United States 
Code (as added by subsection (a)), and not later 
than 3 years thereafter, the Inspector General of the 
Postal Community shall conduct a study of the costs 
and benefits of such conversions. 
(2) REPORT.—Not later than 1 year after the 
date on which the Inspector General conducts each 
study required under paragraph (1), the Inspector 
General shall submit to the Committee on Homeland 
Security and Governmental Affairs of the Senate 
and the Committee on Oversight and Government 
Reform of the House of Representatives a report on 
the results of each study. 
(3) CONTENT.—The studies required under 
paragraph (1) shall assess the following: 
(A) The cost savings realized by the Postal 
Service from the conversions under subsections 
(d)(2) and (e)(2) of section 3692 of title 39, 
United States Code (as added by subsection 
(a)), and the projected cost savings the Postal 
Service is likely to realize from full implementa-
tion of such conversions. 
(B) The expenses incurred by the Postal 
Service to achieve such conversions and the pro-
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jected expenses the Postal Service is likely to 
incur from full implementation of such conver-
sions. 
(C) The impact of the conversions on— 
(i) read and response rates to mailed 
advertising; 
(ii) advertising mail revenue earned by 
the Postal Service; 
(iii) small businesses, including small 
home-based businesses; and 
(iv) mail volumes shipped through the 
Postal Service. 
(D) Any other factors the Inspector Gen-
eral considers relevant to provide a complete 
analysis of the costs and benefits associated 
with the conversions described under such sub-
sections. 
(4) NET
COST
BENEFIT
ANALYSIS.—The In-
spector General shall conduct a cost benefit analysis 
to determine the net cost or benefit to the Postal 
Service of the conversions conducted under such 
subsections and include the analysis in each report 
submitted under paragraph (2). 
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SEC. 203. MODERNIZING POSTAL RATES. 
(a) ADEQUACY, EFFICIENCY, AND FAIRNESS
OF 
POSTAL RATES.— 
(1) OBJECTIVES.—Section 3622(b) of title 39, 
United States Code, is amended— 
(A) in paragraph (2), by inserting ‘‘and 
ensure’’ after ‘‘create’’; 
(B) in paragraph (3)— 
(i) by inserting ‘‘and meet’’ after 
‘‘maintain’’; and 
(ii) by inserting ‘‘, with a focus on 
achieving predictable and consistent deliv-
ery’’ before the period at the end; 
(C) in paragraph (5), by inserting ‘‘estab-
lish and’’ before ‘‘maintain’’; 
(D) in paragraph (6), by striking ‘‘proc-
ess’’ and inserting ‘‘and cost attribution proc-
esses’’; and 
(E) in paragraph (9), by inserting ‘‘(and to 
ensure appropriate levels of transparency)’’ be-
fore the period at the end. 
(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: 
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‘‘(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 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-
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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 postal users of the 
kinds of mail matter entered into the postal system 
and the desirability and justification for special clas-
sifications and services of mail. 
‘‘(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 
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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 
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. 
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‘‘(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; 
‘‘(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 
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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)(D) (as redesig-
nated 
by 
paragraph 
(3)(A)) 
by 
striking 
‘‘(c)(10)’’ and inserting ‘‘(c)(13)’’. 
(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.— 
(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-
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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.’’. 
(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: 
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‘‘(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— 
(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: 
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‘‘(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 one or more service agree-
ments that are functionally equivalent to each other 
within the same market-dominant or competitive 
product, but shall not include agreements within an 
experimental 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.— 
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(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— 
‘‘(1) the term ‘nonpostal services’ is limited to 
services offered by the Postal Service that are ex-
pressly authorized by this title 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. 
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‘‘§ 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, 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 
‘‘(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. 
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‘‘(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 website— 
‘‘(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 website. The Postal 
Service shall make reasonable efforts to provide written 
responses to the comments on such website 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 
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Service website with a majority of the total Governors vot-
ing 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 
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-
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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. 
‘‘(h) CONFIDENTIAL INFORMATION.—Subsection (b) 
or (c) shall not be construed as requiring the Postal Serv-
ice to disclose to the public any information— 
‘‘(1) described in section 410(c); or 
‘‘(2) exempt from public disclosure under sec-
tion 552(b) of title 5. 
‘‘§ 3704. Postal Service program for other Govern-
ment 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 
only if such program provides a reasonable contribution 
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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 
in sufficient detail to demonstrate compliance with 
the requirements of this chapter. 
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‘‘(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 
interested party, initiate proceedings to improve the 
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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 
section contains information described in section 
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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. 
‘‘(2) DETERMINATION OF COMPLIANCE OR NON-
COMPLIANCE.—Not later than 90 days after receiv-
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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 appropriate action. If the requirements for cov-
erage of attributable costs specified by this chapter 
are not met, the Commission shall, within 60 days 
after the determination, prescribe remedial action to 
restore compliance as soon as practicable, including 
the full restoration of revenue shortfalls during the 
following year. The Commission may order the Post-
al Service to discontinue a nonpostal service under 
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section 3703 that persistently fails to meet cost cov-
erage 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— 
(A) in paragraph (2), by inserting after 
‘‘subsection’’ the following: ‘‘, or any nonpostal 
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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 construed to pre-
vent the Postal Service from establishing nonpostal prod-
ucts and services that are expressly authorized 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’’. 
(3) TREATMENT
OF
EXISTING
NONPOSTAL 
SERVICES.—All individual nonpostal services, pro-
vided directly or through licensing, that are contin-
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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 
Communications Act of 1934) and com-
mercial mobile data service (as defined in 
section 6001 of the Middle Class Tax Re-
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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,’’. 
(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-
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mined by 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-
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-
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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-
tunity to indicate their preference between or 
among— 
‘‘(i) the closing or consolidation; and 
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‘‘(ii) one 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 
identified by clause (i) was not possible or 
cost prohibitive.’’. 
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(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 
2017.’’. 
(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 amendments made 
by subsections (a) and (d) shall be effective with re-
spect to any closure or consolidation, the proposed 
effective date of which occurs on or after the 60th 
day following 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; 
(2) in paragraph (2)(B)(ii), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
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(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 
initiative before and after the implementation of 
the POSTPlan initiative; 
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(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 
Service, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Com-
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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: 
‘‘(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 
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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)(F) (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-
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. 
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(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. 
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 May 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-
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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. 
SEC. 210. AVIATION SECURITY FOR PARCELS. 
Not later than 18 months after the date of enactment 
of this Act, the Inspector General of the Postal Commu-
nity shall transmit to the Committee on Oversight and 
Government Reform of the House of Representatives and 
the Committee on Homeland Security and Governmental 
Affairs of the Senate the results of a review of the security 
measures in place for parcels carried on air carriers to 
domestic and international destinations for which audit 
trails are generated. The review required under this sub-
section shall assess, at a minimum— 
(1) the effectiveness of the audit trail created 
by postage evidencing systems that have been vali-
dated under the Federal Information Processing 
Standards in accurately and consistently identifying 
the senders of parcels carried on air carriers; 
(2) the effectiveness of the Postal Service’s in- 
person identity verification procedures in accurately 
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and consistently identifying the senders of parcels 
carried on air carriers; and 
(3) the effectiveness of the audit trail generated 
by customs declarations in accurately and consist-
ently identifying the senders of parcels carried on air 
carriers to international destinations. 
SEC. 211. ZIP CODES. 
Not later than 270 days after the date of enactment 
of this Act, the Postal Service shall designate a single, 
unique ZIP code for, as nearly as practicable, each of the 
following communities: 
(1) Miami Lakes, Florida. 
(2) Storey County, Nevada. 
(3) Flanders, Northampton, and Riverside in 
the Town of Southampton, New York. 
(4) Ocoee, Florida. 
(5) Glendale, 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: 
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‘‘§ 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. 
‘‘(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, if ap-
plicable, issued by the Postal Regulatory Commis-
sion prior to the initial sale of innovative postal or 
nonpostal products and services. 
‘‘(c) APPOINTMENT.— 
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‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of the Postal Service Reform 
Act of 2017, 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 one of the following: 
‘‘(A) Postal and shipping industry. 
‘‘(B) Innovation product research and de-
velopment. 
‘‘(C) Marketing brand strategy. 
‘‘(D) 
Emerging 
communications 
tech-
nology. 
‘‘(E) 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 
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.— 
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‘‘(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; 
‘‘(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; 
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‘‘(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.—For each of the 4 
years following the submission of the innovation 
strategy under paragraph (1), the Postal Service 
shall submit an annual update to the innovation 
strategy 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. 
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‘‘(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; 
‘‘(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-
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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 2017. 
‘‘(2) CONTENTS.—The study required under 
paragraph (1) shall assess the effectiveness of the 
Postal Service in identifying, developing, and selling 
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 
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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 2017 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.’’. 
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— 
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(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; 
(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 
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(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 8N the following new section: 
‘‘SEC. 8O. SPECIAL PROVISIONS CONCERNING THE UNITED 
STATES POSTAL SERVICE AND POSTAL REGU-
LATORY COMMISSION. 
‘‘(a) OFFICE OF INSPECTOR GENERAL OF THE POST-
AL COMMUNITY.—The Inspector General for the United 
States Postal Service and the Postal Regulatory Commis-
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sion shall be referred to as the ‘Inspector General of the 
Postal Community’. 
‘‘(b) RESPONSIBILITIES.—In carrying out the duties 
and responsibilities specified in this Act, the Inspector 
General of the Postal Community shall have equal respon-
sibility over the United States Postal Service and the Post-
al Regulatory Commission. 
‘‘(c) APPLICABLE HEAD OF THE ESTABLISHMENT.— 
For purposes of the applicability of this Act to the Inspec-
tor General of the Postal Community— 
‘‘(1) the ‘head of the establishment’ shall mean 
the Postmaster General of the United States for ac-
tivities by the Office related to the United States 
Postal Service; and 
‘‘(2) the ‘head of the establishment’ shall mean 
the Chairman of the Postal Regulatory Commission 
for activities by the Office related to the Postal Reg-
ulatory Commission. 
‘‘(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 
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100 
‘‘(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(d), 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(d). 
‘‘(f) BUDGET.—In carrying out the duties and re-
sponsibilities under section 6(g)— 
‘‘(1) the ‘head of the establishment’ shall mean 
the Postmaster General of the United States; and 
‘‘(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. 
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101 
‘‘(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) EMPLOYING AUTHORITIES.— 
‘‘(1) IN GENERAL.—The Inspector General of 
the Postal Community is authorized to select, ap-
point, and employ such officers and employees as 
may be necessary for carrying out the functions, 
powers, and duties of the Office of Inspector General 
of the Postal Community and to obtain the tem-
porary or intermittent services of experts or consult-
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102 
ants or an organization thereof, subject to the appli-
cable laws and regulations that govern such selec-
tions, appointments, and employment, and the ob-
taining of such services, within the United States 
Postal Service. 
‘‘(2) AUTHORITY
NOT
APPLICABLE.—Para-
graphs (7) and (8) of section 6(a) do not apply to 
the Inspector General of the Postal Service Commu-
nity. 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated, out of the Postal Serv-
ice Fund, such sums as may be necessary for the Office 
of the Inspector General of the Postal Community.’’. 
(2) CONFORMING AMENDMENTS.—Section 8J of 
the Inspector General Act of 1978 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, 8N, or 8O 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 
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103 
under section 8O of the Inspector General Act of 
1978, as added 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-
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 THE 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. 
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104 
(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-
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 
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105 
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-
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 
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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 
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 8O 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 
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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 
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: 
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‘‘(I) is an employee of the Postal Service 
or the Office of the Inspector General of the 
Postal Community who is not represented by a 
bargaining representative recognized under sec-
tion 1203.’’. 
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— 
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‘‘(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— 
‘‘(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) 
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.— 
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‘‘(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. 
‘‘(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 
website of the covered postal entity. 
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‘‘(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. 
‘‘§ 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 website 
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 
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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 website of the 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 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 
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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 
$5,000, the covered postal entity 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 website 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 
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‘‘(B) remove any proprietary data or secu-
rity-related information before making publicly 
available a description of the rationale sup-
porting a noncompetitive award. 
‘‘(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 under subsection (a)(2) publicly available 
would risk placing the Postal Service at a competi-
tive disadvantage relative to a private sector compet-
itor, the senior procurement executive, in consulta-
tion with the advocate for competition of the Postal 
Service, may waive the requirements under sub-
section (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 
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‘‘(ii) a statement that redaction of 
sensitive information in the noncompetitive 
purchase request would not be sufficient to 
protect the Postal Service from being 
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 
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‘‘(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; 
‘‘(2) the term ‘final conviction’ means a convic-
tion entered by a court, regardless of whether such 
conviction was entered on a verdict or pursuant to 
a plea (including a plea of nolo contendere), and 
with regard to which no further appeal may be taken 
or is pending; 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 
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noncompetitive purchase request that af-
fects the financial interests of any person 
with which the covered employee has a cov-
ered relationship, 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 Regu-
lations, 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 
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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; 
‘‘(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-
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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 
a waiver described in paragraph (1)(F), the head of 
the covered postal entity shall make the waiver pub-
licly available on the website 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 
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(b)(1)(E), 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 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— 
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(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(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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