I 
112TH CONGRESS 
1ST SESSION H. R. 1262 
To reform the United States Postal Service in order to fulfill its constitutional 
mandate, to improve its efficiency, to help it meet its universal service 
obligation, and to facilitate private sector economic growth. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2011 
Mr. CONNOLLY of Virginia (for himself, Ms. NORTON, Mr. DEUTCH, and Mr. 
DAVIS of Illinois) introduced the following bill; which was referred to the 
Committee on Oversight and Government Reform, and in addition to the 
Committee on the Judiciary, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To reform the United States Postal Service in order to 
fulfill its constitutional mandate, to improve its effi-
ciency, to help it meet its universal service obligation, 
and to facilitate private sector economic growth. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Reform the Postal Service for the 21st Century Act’’. 
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(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Assistance to facilitate voting by mail. 
Sec. 4. Provisions relating to the postal delivery vehicle fleet. 
Sec. 5. Forever box. 
Sec. 6. Nonpostal products and services. 
Sec. 7. Study relating to consolidated mailings. 
Sec. 8. Study relating to the cost of Government mailings. 
Sec. 9. Packaging of postal services and products. 
Sec. 10. After-delivery payment arrangements. 
Sec. 11. Small business mailing pools. 
Sec. 12. Electronic post office box services. 
Sec. 13. Contracting provisions. 
Sec. 14. Supervisory and other managerial organizations of the Postal Service. 
Sec. 15. Energy efficiency projects. 
Sec. 16. Required period for notice and comment with respect to changes in 
mailing rules. 
Sec. 17. Negotiated service agreements for market-dominant products. 
Sec. 18. Electronic communication products. 
SEC. 2. DEFINITIONS. 
For purposes of this Act— 
(1) the term ‘‘Postal Service’’ means the United 
States Postal Service; 
(2) the term ‘‘market-dominant product’’ has 
the meaning given such term by section 102 of title 
39, United States Code; 
(3) the term ‘‘Postal fleet’’ means that portion 
of the Federal fleet (within the meaning of section 
303(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13212(b)) which is owned, operated, leased, or oth-
erwise controlled by or assigned to the Postal Serv-
ice and used primarily in the delivery of mail; 
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(4) the term ‘‘motor vehicle’’ means any self- 
propelled vehicle designed for transporting persons 
or property on a street or highway; 
(5) the term ‘‘electric motor vehicle’’ means a 
motor vehicle powered solely by an electric motor 
that draws current from rechargeable storage bat-
teries, fuel cells, photovoltaic arrays, or other 
sources of electric current; 
(6) the term ‘‘small business concern’’ means a 
small business as defined pursuant to section 3 of 
the Small Business Act (15 U.S.C. 632) and rel-
evant regulations promulgated pursuant thereto; 
(7) the term ‘‘State’’ includes the District of 
Columbia, the Commonwealth of Puerto Rico, the 
Virgin Islands, Guam, American Samoa, the Com-
monwealth of the Northern Mariana Islands, and 
any other territory or possession of the United 
States; and 
(8) the term ‘‘United States’’, as used in a geo-
graphical sense, includes the District of Columbia, 
the Commonwealth of Puerto Rico, the Virgin Is-
lands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and any other ter-
ritory or possession of the United States. 
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SEC. 3. ASSISTANCE TO FACILITATE VOTING BY MAIL. 
It is the sense of Congress that the Postal Service 
should consider a simplified rate structure for election bal-
lots sent by voters by mail as part of its review of potential 
new election mail products. 
SEC. 4. PROVISIONS RELATING TO THE POSTAL DELIVERY 
VEHICLE FLEET. 
(a) ELECTRIC VEHICLES.—The Postal Service shall 
implement a plan, which it shall present in advance to 
Congress, to replace or convert 2,000 gasoline-powered de-
livery vehicles with electric vehicles by January 1, 2017. 
(b) CONVERSION TO ELECTRIC MOTOR VEHICLES.— 
(1) IN GENERAL.—It is the sense of Congress 
that the Postal Service should— 
(A) during each year in the 10-year period 
beginning on the date of enactment of this Act, 
replace at least 10 percent of the gasoline-pow-
ered motor vehicles in the Postal fleet with elec-
tric motor vehicles; 
(B) take such measures as may be nec-
essary to ensure that, by the end of the 10-year 
period described in subparagraph (A), at least 
75 percent of the Postal fleet is comprised of 
electric motor vehicles; and 
(C) carry out the preceding provisions of 
this paragraph, in coordination with local elec-
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tric distribution companies, in a manner con-
sistent with the goals of— 
(i) maintaining electric grid reliability; 
and 
(ii) minimizing charging costs of elec-
tric motor vehicles in the Postal fleet. 
(2) BUY
AMERICAN.—Notwithstanding any 
other provision of law, electric motor vehicles ac-
quired to carry out this subsection shall be electric 
motor vehicles manufactured in the United States. 
The Postal Service shall ensure that manufacturers 
of electric motor vehicles so acquired solicit competi-
tive bids for electric drive components and storage 
devices from domestic manufacturers that partici-
pate in the Department of Energy’s Electric Drive 
Vehicle Battery and Component Manufacturing Ini-
tiative (or successor program, as determined by the 
Postal Service in consultation with the Secretary of 
Energy). 
(3) BORROWING AUTHORITY.— 
(A) IN GENERAL.—The Postal Service may 
borrow money and issue and sell such obliga-
tions as it determines necessary to carry out 
this subsection. 
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(B) TERMS
AND
CONDITIONS.—The au-
thority under subparagraph (A) shall be avail-
able to the Postal Service, subject to the provi-
sions of sections 2005 through 2007 of title 39, 
United States Code, to the same extent and in 
the same manner as if it were the cor-
responding authority described in the first sen-
tence of subsection (a)(1) of such section 2005, 
except that— 
(i) the amount of obligations out-
standing under this paragraph shall not be 
taken into account nor subject to— 
(I) the last sentence of subsection 
(a)(1) of such section 2005; 
(II) subsection (a)(2) of such sec-
tion 2005, except as provided in 
clause (iv); or 
(III) the dollar-amount limitation 
set forth in section 2006(b) of such 
title; 
(ii) obligations issued by the Postal 
Service under this paragraph shall mature 
within a period not to exceed 10 years 
from the date of issuance; 
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amount of obligations, issued by the 
Postal Service, which are outstanding 
at any one time to exceed the max-
imum amount allowable under such 
section 2005(a)(2), the further exer-
cise of any borrowing authority under 
this paragraph shall be suspended 
until such aggregate amount is re-
duced to a level that does not exceed 
that maximum amount allowable; and 
(v) the aggregate amount of obliga-
tions outstanding under this paragraph at 
any 
one 
time 
shall 
not 
exceed 
$6,000,000,000. 
(c) AUTHORITY TO USE FLEET VEHICLES FOR CER-
TAIN PURPOSES BESIDES MAIL DELIVERY.— 
(1) IN GENERAL.—Section 404(a) of title 39, 
United States Code, is amended— 
(A) 
by 
redesignating 
paragraphs 
(6) 
through (8) as paragraphs (7) through (9), re-
spectively; and 
(B) by inserting after paragraph (5) the 
following: 
‘‘(6) to provide services, other than postal serv-
ices (as defined in section 102(5)) and in a manner 
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that generates revenue for the Postal Service, if the 
Postal Service determines that the provision of that 
service would utilize the processing, transportation, 
delivery, retail network, or technology of the Postal 
Service in a manner that is consistent with the pub-
lic interest;’’. 
(2) REPORTING REQUIREMENT.—Not later than 
2 years after the date of enactment of this Act, the 
Postal Service shall submit to Congress a written re-
port on the operation of the amendment made by 
paragraph (1). Such report shall specifically include 
a description of any agreements or other arrange-
ments entered into by the Postal Service for the pur-
pose of allowing vehicles in the Postal fleet to be 
used for purposes relating to monitoring weather 
conditions (including air pollution) or road condi-
tions. Such report shall— 
(A) to the extent that it relates to moni-
toring weather conditions, be prepared in con-
sultation with the National Weather Service; 
(B) to the extent that it relates to moni-
toring air pollution, be prepared in consultation 
with the Environmental Protection Agency; and 
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(C) to the extent that it relates to moni-
toring road conditions, be prepared in consulta-
tion with the Department of Transportation. 
SEC. 5. FOREVER BOX. 
It is the sense of Congress that the Postal Service 
should consider creating a ‘‘Forever Box’’ for customers 
to mail parcels of a certain size, analogous to the ‘‘Forever 
Stamp’’. 
SEC. 6. NONPOSTAL PRODUCTS AND SERVICES. 
(a) CO-LOCATION OF POST OFFICES AT RETAIL FA-
CILITIES.— 
(1) IN GENERAL.—Not later than 90 days after 
the date of enactment of this Act, the Postal Service 
shall submit a plan on the co-location of post offices 
at retail facilities to— 
(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; and 
(B) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives. 
(2) CONTENTS.—The plan under paragraph (1) 
shall— 
(A) be developed in consultation with the 
Postal Regulatory Commission; 
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(B) provide for an increase in the co-loca-
tion of post offices at retail facilities to enable 
the United States Postal Service to offer its 
products and services at those locations; 
(C) consider the impact of any co-location 
decisions on small communities and rural areas 
before taking actions to co-locate post offices; 
and 
(D) ensure that— 
(i) service shall continue in small com-
munities and rural areas after implementa-
tion of the plan; 
(ii) the United States Postal Service 
solicits community input before making de-
cisions about co-location; 
(iii) the quality of products and serv-
ices offered in co-located facilities are con-
sistent with those offered in post offices; 
(iv) products and services provided in 
co-located 
facilities 
will 
be 
provided 
through the employment of employees of 
the Postal Service, to the same extent as 
if such products and services had not been 
relocated from a post office; and 
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(v) co-location shall be permitted only 
to the extent that the Postal Service deter-
mines (and the Postal Regulatory Commis-
sion concurs) that net revenues will in-
crease with respect to the operations of the 
post office or post offices so co-located. 
(3) REPORTING
REQUIREMENT.—The Postal 
Service shall submit a report, once every 2 years, on 
the progress of implementing the plan on the co-lo-
cation of post offices at retail facilities under this 
subsection to— 
(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; and 
(B) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives. 
(b) SPECIFIC POWERS.—Section 404(a) of title 39, 
United States Code, is amended— 
(1) by redesignating paragraphs (6) through 
(8) as paragraphs (7) through (9), respectively; and 
(2) by inserting after paragraph (5) the fol-
lowing: 
‘‘(6) to provide services other than postal serv-
ices, but only after determining that the provision of 
those other services would use the processing, trans-
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portation, delivery, retail network, and technology of 
the Postal Service (whichever apply) in a manner 
that is consistent with the public interest;’’. 
(c) WINE AND BEER SHIPPING.— 
(1) AMENDMENTS TO TITLE 18, UNITED STATES 
CODE.— 
(A) 
NONMAILABLE
ARTICLES.—Section 
1716(f) of title 18, United States Code, is 
amended by striking ‘‘mails’’ and inserting 
‘‘mails, except to the extent that the mailing is 
allowable under section 3001(p) of title 39’’. 
(B) INTOXICANTS.—Section 1154(a) of 
title 18, United States Code, is amended by in-
serting ‘‘or, with respect to the mailing of wine 
or malt beverages, to the extent allowed under 
section 3001(p) of title 39’’ after ‘‘mechanical 
purposes’’. 
(2) AMENDMENT TO TITLE 39, UNITED STATES 
CODE.—Section 3001 of title 39, United States 
Code, is amended by adding at the end the fol-
lowing: 
‘‘(p)(1) Wine or malt beverages shall be considered 
mailable if mailed by a licensed winery or brewery, in ac-
cordance with applicable regulations under paragraph (2). 
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‘‘(2) The Postal Service shall prescribe such regula-
tions as may be necessary to carry out this subsection, 
including regulations providing that— 
‘‘(A) the mailing shall be by a means estab-
lished by the Postal Service to ensure direct delivery 
to the addressee or a duly authorized agent at a 
postal facility; 
‘‘(B) the addressee shall be an individual at 
least 21 years of age, and shall present a valid, gov-
ernment-issued photo identification at the time of 
delivery; 
‘‘(C) the wine or malt beverages may not be for 
resale or other commercial purpose; and 
‘‘(D) the winery or brewery involved shall— 
‘‘(i) certify in writing to the satisfaction of 
the Postal Service that the mailing is not in vio-
lation of any provision of this subsection or reg-
ulation prescribed under this subsection; and 
‘‘(ii) provide any other information or af-
firmation that the Postal Service may require, 
including with respect to the prepayment of 
State alcohol beverage taxes. 
‘‘(3) For purposes of this subsection, a winery or 
brewery shall be considered to be licensed if it holds an 
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appropriate basic permit issued under the Federal Alcohol 
Administration Act.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall take effect 180 days after 
the date of enactment of this Act. 
SEC. 7. STUDY RELATING TO CONSOLIDATED MAILINGS. 
(a) DEFINITIONS.—For purposes of this section— 
(1) the term ‘‘transpromotional mailing’’ refers 
to the use of a single mailing to provide, in addition 
to information provided by the mailing source, other 
information of potential interest to the recipient 
from a different source; and 
(2) the term ‘‘consolidated mailing’’ refers to a 
combined mailing, contained in a single envelope or 
cover, comprised of mail matter from more than one 
Federal agency. 
(b) STUDY.—The Postal Service shall conduct a 
study and submit to Congress, within 2 years after the 
date of enactment of this Act, a report on ways to promote 
the use of transpromotional or consolidated mailings. In-
cluded as part of such report shall be— 
(1) findings regarding the effect that the great-
er use of transpromotional or consolidated mailings 
is likely to have in terms of— 
(A) expanded mail volume; 
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(B) efficiencies in the dissemination of in-
formation by Federal agencies; and 
(C) other relevant measures; and 
(2) recommendations for such legislation or 
other actions as the Postal Service considers nec-
essary 
to 
achieve 
the 
optimal 
levels 
of 
transpromotional or consolidated mailings. 
SEC. 8. STUDY RELATING TO THE COST OF GOVERNMENT 
MAILINGS. 
(a) IN GENERAL.—Within 1 year after the date of 
enactment of this Act, there shall be submitted to Con-
gress the results of a study relating to the mailing costs, 
attributable to each agency or other entity in the executive 
branch of the Government, of sending mail by using the 
Postal Service, as compared to the services of a carrier 
other than the Postal Service. The report shall include, 
for the Postal Service and each of the other respective car-
riers— 
(1) an estimate of the per-mile mailing costs for 
each class of mail; and 
(2) such other information as may be necessary 
to allow meaningful comparisons to be made. 
(b) REGULATIONS.—The requirements of this section 
shall be carried out in such manner as the President may 
require. 
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SEC. 9. PACKAGING OF POSTAL SERVICES AND PRODUCTS. 
It is the sense of Congress that the Postal Service 
should consider— 
(1) establishing packages of postal services and 
products; and 
(2) marketing those packages to small busi-
nesses and other potential users. 
SEC. 10. AFTER-DELIVERY PAYMENT ARRANGEMENTS. 
Nothing in title 39, United States Code, or any other 
provision of law, shall prevent the Postal Service from en-
tering into arrangements whereby the sender of a mailing 
may be allowed to defer payment of postage until after 
the item involved has been delivered. 
SEC. 11. SMALL BUSINESS MAILING POOLS. 
(a) IN GENERAL.—Nothing in title 39, United States 
Code, or any other provision of law, shall prevent the Post-
al Service from promoting, or providing technical assist-
ance in connection with, the creation of small business and 
other mailing pools, the purpose of which is to allow each 
member of such pool to take advantage of postage rates 
applicable to bulk mailings and other discounts. 
(b) REPORTING REQUIREMENT.—The Postal Service 
shall submit a written report to Congress, at least once 
every 3 years, on the operation of this section. 
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SEC. 12. ELECTRONIC POST OFFICE BOX SERVICES. 
(a) IN GENERAL.—The Postal Service may, in part-
nership with a private sector provider of electronic mail 
services, carry out a pilot program which is designed to 
test the feasibility and desirability of an integrated elec-
tronic system for the receipt, storage, transport, and deliv-
ery of mail directed to physical addresses and post office 
boxes. 
(b) REPORTING REQUIREMENT.— 
(1) IN
GENERAL.—Within 3 years after the 
date of enactment of this Act, the Postal Service 
shall submit to Congress a report describing the de-
sign, operation, and recommendations of the Postal 
Service with respect to the pilot program under this 
section. 
(2) ROLE OF PRC.—At least 6 months before 
submitting its report to Congress, the Postal Service 
shall transmit a copy of its report to the Postal Reg-
ulatory Commission for comments. The Postal Serv-
ice shall append to the report any written comments 
received from the Postal Regulatory Commission 
under this paragraph. 
SEC. 13. 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 
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‘‘Sec. 
‘‘701. Definitions. 
‘‘702. Advocate for competition. 
‘‘703. Delegation of contracting authority. 
‘‘704. Posting of justifications of noncompetitive contracts. 
‘‘705. Review of ethical issues. 
‘‘706. Ban on certain contracts. 
‘‘§ 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 United States Postal Service; or 
‘‘(B) the Postal Regulatory Commission; 
‘‘(3) the term ‘head of a covered postal entity’ 
means— 
‘‘(A) in the case of the United States Post-
al Service, the Postmaster General; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, the Postal Regulatory Commis-
sion; 
‘‘(4) the term ‘postal contract’ means any con-
tract (including any agreement or memorandum of 
understanding) entered into by a covered postal enti-
ty for the procurement of goods or services; and 
‘‘(5) the term ‘senior procurement executive’ 
means the senior procurement executive of a covered 
postal entity. 
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‘‘§ 702. Advocate for competition 
‘‘(a) ESTABLISHMENT AND DESIGNATION.— 
‘‘(1) There is established in each covered postal 
entity an advocate for competition. 
‘‘(2) The head of each covered postal entity 
shall— 
‘‘(A) designate for the covered postal entity 
and for each procuring activity of the covered 
postal entity 1 officer or employee (other than 
the senior procurement executive) to serve as 
the advocate for competition; 
‘‘(B) not assign such officer or employee 
any duties or responsibilities that are incon-
sistent with the duties and responsibilities of 
the advocates for competition; and 
‘‘(C) provide such officer or employee with 
such staff or assistance as may be necessary to 
carry out the duties and responsibilities of the 
advocate for competition, such as persons who 
are specialists in engineering, technical oper-
ations, contract administration, financial man-
agement, supply management, and utilization of 
small and disadvantaged business concerns. 
‘‘(b) DUTIES AND FUNCTIONS.—The advocate for 
competition of each covered postal entity shall— 
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‘‘(1) be responsible for challenging barriers to 
and promoting full and open competition in the pro-
curement of goods and services by the covered postal 
entity; 
‘‘(2) review the procurement activities of the 
covered postal entity; 
‘‘(3) identify and report to the senior procure-
ment executive— 
‘‘(A) opportunities and actions taken to 
maximize full and open competition in the pro-
curement activities of the covered postal entity; 
and 
‘‘(B) any condition or action which has the 
effect of unnecessarily restricting competition in 
the procurement actions of the covered postal 
entity; 
‘‘(4) prepare and transmit to the head of each 
covered postal entity, the Board of Governors of the 
United States Postal Service, and Congress an an-
nual report describing— 
‘‘(A) the activities of the advocate under 
this section; 
‘‘(B) initiatives required to increase com-
petition; and 
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‘‘(C) barriers to the use of full and open 
competition to the maximum extent practicable; 
‘‘(5) recommend to the senior procurement ex-
ecutive the goals and the plans for increasing com-
petition on a fiscal year basis; 
‘‘(6) recommend to the senior procurement ex-
ecutive a system of personal and organizational ac-
countability for competition, which may include the 
use of recognition and awards to motivate program 
managers, contracting officers, and others in author-
ity to promote competition in procurement pro-
grams; and 
‘‘(7) describe other ways in which the covered 
postal entity has emphasized competition in pro-
grams for procurement training and research. 
‘‘(c) RESPONSIBILITIES.—The advocate for competi-
tion for each procuring activity shall be responsible for 
promoting full and open competition, promoting the acqui-
sition of commercial items, and challenging barriers to 
such acquisition, including such barriers as unnecessarily 
restrictive statements of need, unnecessarily detailed spec-
ifications, and unnecessarily burdensome contract clauses. 
‘‘§ 703. Delegation of contracting authority 
‘‘(a) IN GENERAL.— 
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‘‘(1) POLICY.—Not later than 60 days after the 
date of enactment of the U.S. Postal Service Im-
provements Act of 2010, the head of each covered 
postal entity shall issue a policy on contracting offi-
cer delegations of authority for the covered postal 
entity. 
‘‘(2) CONTENTS.—The policy issued under 
paragraph (1) shall require that— 
‘‘(A) notwithstanding any delegation of 
contracting authority, the ultimate responsi-
bility and accountability for the award and ad-
ministration 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 for 
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 
outside the functional contracting unit for the pro-
curement of goods or services which exceeds the sim-
plified acquisition threshold, as defined under sec-
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tion 4(11) of the Office of Federal Procurement Pol-
icy Act (41 U.S.C. 403(11)) including any adjust-
ment under section 35A of that Act (41 U.S.C. 
431A), available on the website of the covered postal 
entity. 
‘‘(2) EFFECTIVE DATE.—This paragraph shall 
apply to any delegation of authority made on or 
after 30 days after the date of enactment of the 
U.S. Postal Service Improvements Act of 2010. 
‘‘§ 704. Posting of justifications of noncompetitive 
contracts 
‘‘(a) IN GENERAL.—Not later than 14 days after the 
date of the award of any noncompetitive contract which 
exceeds the simplified acquisition threshold, as defined 
under section 4(11) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 403(11)) including any adjustment 
under section 35A of that Act (41 U.S.C. 431A), or within 
30 days if the justification and approval for that contract 
is urgent and compelling, a covered postal entity shall 
make publicly available the documents containing the jus-
tification and approval of that contract. 
‘‘(b) WEBSITE.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the documents described under subsection (a) shall 
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be made available on the website of the covered post-
al entity. 
‘‘(2) PROTECTION OF PROPRIETARY INFORMA-
TION.—The covered postal entity shall carefully 
screen all justifications for proprietary data, and any 
references and citations as are necessary to protect 
the proprietary data, or security related information 
and remove all such data or information before mak-
ing the justifications available. 
‘‘§ 705. Review of ethical issues 
‘‘If a contracting officer identifies any ethical issues 
relating to a proposed contract and submits those issues 
and that proposed contract to the designated ethics official 
for the covered postal entity before the awarding of that 
contract, that ethics official shall— 
‘‘(1) review the proposed contract; and 
‘‘(2) advise the contracting officer on the appro-
priate resolution of ethical issues. 
‘‘§ 706. Ban on certain contracts 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘covered employee’ means— 
‘‘(A) a contracting officer; or 
‘‘(B) any employee of a covered postal en-
tity whose decisionmaking affects a postal con-
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tract as determined by regulations prescribed 
by the head of a covered postal entity; and 
‘‘(2) the term ‘final conviction’ means a convic-
tion, whether entered on a verdict or plea, including 
a plea of nolo contendere, for which a sentence has 
been imposed; 
‘‘(b) IN GENERAL.— 
‘‘(1) REGULATIONS.—The head of each covered 
postal entity shall prescribe regulations that— 
‘‘(A) prohibit a covered employee from en-
tering into a postal contract with any party 
with whom that covered employee is closely af-
filiated in a nongovernmental capacity, regard-
less of whether or not the postal contract is for 
private gain; 
‘‘(B) require a contractor to timely disclose 
to the chief ethics officers of the covered postal 
entity any relationship described under sub-
paragraph (A) with a covered employee in a 
bid, solicitation, award, or performance of a 
postal contract; and 
‘‘(C) include authority for the head of the 
covered postal entity to a grant waiver to any 
prohibition or requirement under subparagraph 
(A) or (B). 
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‘‘(2) POSTING OF WAIVERS.—Not later than 30 
days after the head of a covered postal entity grants 
a waiver described under paragraph (1)(C), the head 
of the covered postal entity shall make the waiver 
available on the website of the covered postal entity. 
‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 
‘‘(1) BRIBERY AND GRAFT CONVICTIONS.—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 described 
under subparagraph (B) relating to a postal 
contract, 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. 
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‘‘(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 27(e) of 
the Office of Federal Procurement Policy 
Act (41 U.S.C. 423(e)); 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 27(e) of that 
Act.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.— 
The table of chapters for part I of title 39, United States 
Code, is amended by adding at the end the following: 
‘‘7. Contracting Provisions .............................................................
701’’. 
SEC. 14. SUPERVISORY AND OTHER MANAGERIAL ORGANI-
ZATIONS OF THE POSTAL SERVICE. 
Section 1004 of title 39, United States Code, is 
amended— 
(1) in subsection (a), by inserting ‘‘to ensure 
reasonable and sustainable workloads and schedules 
for supervisory and management employees;’’ after 
‘‘other managerial personnel;’’; 
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(2) in subsection (b) (in the second sentence), 
by inserting ‘‘as provided under subsection (d) and 
any changes in, or termination of, pay policies and 
schedules and fringe benefit programs for members 
of the supervisors’ organization as provided under 
subsection (e)’’ before the period; and 
(3) in subsection (e)(1), by inserting ‘‘, or ter-
mination of,’’ after ‘‘any changes in’’. 
SEC. 15. ENERGY EFFICIENCY PROJECTS. 
(a) IN GENERAL.—In order to help finance energy 
efficiency projects with respect to postal operations and 
facilities, the Postal Service shall have available to it the 
authority described in subsection (b). 
(b) AUTHORITY DESCRIBED.—The authority de-
scribed in this subsection is the authority to borrow money 
and to issue and sell obligations. The authority described 
in the preceding sentence shall be available to the Postal 
Service— 
(1) in order to carry out subsection (a), subject 
to the same terms and conditions as apply with re-
spect to the corresponding authority made available 
under paragraph (3) of section 4(a) in order to carry 
out the purposes of such section 4(a); except that 
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(2) the aggregate amount of obligations out-
standing under this paragraph at any one time shall 
not exceed $1,000,000,000. 
(c) REPORTING REQUIREMENT.—The Postal Service 
shall submit a written report to Congress, once every 2 
years, on the operation of this section. 
SEC. 16. REQUIRED PERIOD FOR NOTICE AND COMMENT 
WITH RESPECT TO CHANGES IN MAILING 
RULES. 
(a) IN GENERAL.—The Postal Service shall by regu-
lation establish procedures under which, before adding, 
eliminating, or modifying any mailing rules— 
(1) notice of the proposed change shall be pro-
vided by publication in the Federal Register; and 
(2) a minimum of 30 days shall be provided, 
after the date of such publication, for public com-
ment. 
(b) EXCEPTIONS.—Subsection (a)— 
(1) shall not apply to any classification or other 
rules changes that must be brought before the Post-
al Regulatory Commission; and 
(2) shall not apply to any change that the Post-
master General certifies has a cumulative cost, to 
users of the mail, of less than $5,000,000 per year. 
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(c) MAILING RULES DEFINED.—For purposes of this 
section, the term ‘‘mailing rules’’ means any rules or other 
requirements of the Postal Service— 
(1) for qualifying, entering, accepting, certi-
fying, or validating mail for specific rates, products, 
or services; or 
(2) otherwise affecting utilization of the postal 
system, by a business, nonprofit mailer, or other 
person. 
Such term includes any rule or other requirement that in-
creases the cost of compliance with existing rules or re-
quirements, whether or not reflected in any discount pro-
vided. 
SEC. 17. NEGOTIATED SERVICE AGREEMENTS FOR MAR-
KET-DOMINANT PRODUCTS. 
The Postal Service shall submit a written report to 
Congress, once every 2 years, on measures taken, progress 
achieved, and any impediments encountered, with respect 
to the implementation of the special classifications and 
agreements (as described in section subsection (c)(10) of 
section 3622 of title 39, United States Code), in connec-
tion with the establishment and operation of a system for 
regulating rates and classes for market-dominant prod-
ucts. 
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SEC. 18. ELECTRONIC COMMUNICATION PRODUCTS. 
The Postal Service and Postal Regulatory Commis-
sion shall, within 12 months after the date of the enact-
ment of this Act, report to Congress on the advisability 
of creating a not-for-profit venture capital program to help 
the Postal Service identify and develop electronic commu-
nication products that would increase net revenue for the 
Postal Service. 
Æ 
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