‘‘(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 or ad-
visory opinions, if applicable, issued by the Postal 
Regulatory Commission prior to the initial sale of in-
novative postal or nonpostal products and services. 
‘‘(c) APPOINTMENT.— 
‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of the Postal Service Reform 
Act of 2016, but no later than 6 months after such 
date, the Postmaster General shall appoint a Chief 
Innovation Officer. 
‘‘(2) 
REQUIREMENTS.—Any 
individual 
ap-
pointed to serve as the Chief Innovation Officer shall 
have proven expertise and a record of success in at 
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least 1 of the following: postal and shipping indus-
try; innovation product research and development; 
marketing brand strategy; emerging communications 
technology; or business process management. 
‘‘(3) CURRENT OFFICER OR EMPLOYEE ELIGI-
BLE.—An officer or employee of the Postal Service 
may be appointed to the position of Chief Innovation 
Officer under this chapter. Upon appointment to 
such position, such officer or employee may not con-
currently hold any other position in the Postal Serv-
ice. 
‘‘(d) INNOVATION STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 12 months 
after the date on which the Chief Innovation Officer 
is appointed under subsection (c)(1), the Postmaster 
General shall submit to the Committee on Oversight 
and Government Reform of the House of Represent-
atives, the Committee on Homeland Security and 
Governmental Affairs of the Senate, and the Postal 
Regulatory Commission a comprehensive strategy for 
maximizing revenues through innovative postal and 
nonpostal products and services. 
‘‘(2) MATTERS TO BE ADDRESSED.—The strat-
egy submitted under paragraph (1) shall address— 
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‘‘(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; 
‘‘(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 
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‘‘(H) the specific methods by which 
mailpiece design analysis may be improved to 
speed the approval process and promote the in-
creased use of innovative mailpiece design. 
‘‘(3) STRATEGY
UPDATES.—On January 1, 
2018, and every 3 years thereafter, the Postal Serv-
ice shall submit an update to the innovation strategy 
submitted under paragraph (1) to the Committee on 
Oversight and Government Reform of the House of 
Representatives, the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate, and 
the Postal Regulatory Commission. 
‘‘(e) REPORT.— 
‘‘(1) IN GENERAL.—On the date of submission 
of the President’s annual budget under section 
1105(a) of title 31, the Postmaster General shall 
submit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives, the 
Committee on Homeland Security and Governmental 
Affairs of the Senate, and the Postal Regulatory 
Commission a report that details the Postal Serv-
ice’s progress in implementing the innovation strat-
egy described under subsection (d). 
‘‘(2) MATTERS TO BE ADDRESSED.—The report 
required under paragraph (1) shall address— 
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‘‘(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-
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.— 
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‘‘(1) IN GENERAL.—The Comptroller General 
shall conduct a study on the implementation of the 
innovation strategy described under subsection (d) 
not later than 4 years after the date of enactment 
of the Postal Service Reform Act of 2016. 
‘‘(2) CONTENTS.—The study required under 
paragraph (1) shall assess the effectiveness of the 
Postal Service in identifying, developing, and selling 
innovative postal and nonpostal products and serv-
ices. The study shall also include— 
‘‘(A) an audit of the costs of developing 
each innovative postal and nonpostal product 
and service developed or offered by the Postal 
Service during the period beginning on the date 
of enactment of the Postal Service Reform Act 
of 2016 and ending 4 years after such date; 
‘‘(B) the sales volume of each such product 
and service; 
‘‘(C) the revenues and profits generated by 
each such product and service; and 
‘‘(D) the likelihood of continued success of 
each such product and service. 
‘‘(3) SUBMISSION.—The results of the study re-
quired under this subsection shall be submitted to 
the Committee on Oversight and Government Re-
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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— 
(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); 
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(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 
(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.— 
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(1) ESTABLISHMENT.—The Inspector General 
Act of 1978 (5 U.S.C. App.), as amended by sub-
section (a), is further amended by inserting after 
section 8L the following new section: 
‘‘SEC. 8M. 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-
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 
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100 
‘‘(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 
‘‘(B) the Postal Regulatory Commission; 
and 
‘‘(2) the Inspector General of the Postal Com-
munity shall prepare separate semiannual reports 
for the United States Postal Service and the Postal 
Regulatory Commission. 
‘‘(e) OFFICE SPACE.—In carrying out the duties and 
responsibilities under section 6(c), the heads of the estab-
lishments for the United States Postal Service and the 
Postal Regulatory Commission shall work jointly with one 
another and in consultation with the Inspector General of 
the Postal Community to ensure adequate and appropriate 
provision to the Office of the Inspector General of the 
Postal Community under section 6(c). 
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101 
‘‘(f) BUDGET.—In carrying out the duties and re-
sponsibilities under section 6(f)— 
‘‘(1) the ‘head of the establishment’ shall mean 
the Postmaster General of the United States; and 
‘‘(2) designation of the Postmaster General of 
the United States as ‘head of the establishment’ 
under this subsection shall not be construed as 
granting any authorities to the Postmaster General 
of the United States with regard to the Postal Regu-
latory Commission. 
‘‘(g) GENERAL DUTIES AND RESPONSIBILITIES.—In 
carrying out the duties and responsibilities specified in 
this Act— 
‘‘(1) the Inspector General of the Postal Com-
munity shall have oversight responsibility for all ac-
tivities of the Postal Inspection Service, including 
any internal investigation performed by the Postal 
Inspection Service; 
‘‘(2) the Inspector General of the Postal Com-
munity shall give particular regard to the activities 
of the Postal Inspection Service with a view toward 
avoiding duplication and insuring effective coordina-
tion and cooperation; and 
‘‘(3) the Chief Postal Inspector shall promptly 
report the significant activities being carried out by 
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102 
the Postal Inspection Service to the Inspector Gen-
eral of the Postal Community. 
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated, out of the Postal Serv-
ice Fund, such sums as may be necessary for the Office 
of Inspector General of the Postal Community.’’. 
(2) CONFORMING AMENDMENTS.—Section 8J of 
the Inspector General Act of 1978 (5 U.S.C. App.) 
is amended by striking ‘‘The special provisions 
under section’’ through ‘‘of this Act’’ and inserting 
‘‘The special provisions under section 8, 8A, 8B, 8C, 
8D, 8E, 8F, 8H, 8I, or 8M of this Act’’. 
(3) APPOINTMENT.—Not later than 180 days 
after the date of enactment of this Act, the Presi-
dent shall appoint, by and with the advice and con-
sent of the Senate, an Inspector General of the Post-
al Community. Any individual appointed under the 
previous sentence shall be deemed to be appointed 
under section 8M of the Inspector General Act of 
1978 (5 U.S.C. App.) (as amended by paragraph 
(1)). 
(c) TRANSFER OF THE OFFICE OF THE INSPECTOR 
GENERAL OF THE POSTAL REGULATORY COMMISSION.— 
(1) IN GENERAL.—On the date that is the ef-
fective date of this section, the duties, responsibil-
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103 
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 UNITED STATES POSTAL SERVICE.— 
(1) IN GENERAL.—On the date that is the ef-
fective date of this section, the duties, responsibil-
ities, functions, personnel, assets, unexpended bal-
ances of appropriations, and obligations held by the 
Inspector General of the United States Postal Serv-
ice shall be transferred to the Office of the Inspector 
General of the Postal Community. 
(2) EXISTING INSPECTOR GENERAL.—The In-
spector General of the United States Postal Service 
transferred pursuant to paragraph (1) shall serve 
under the Inspector General of the Postal Commu-
nity. 
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104 
(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 
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 
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105 
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 
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 
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106 
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 8M of the 
Inspector General Act of 1978 (5 U.S.C. App.)’’. 
(2) In section 504, by striking subsection (h). 
(3) In section 1003(b), by striking ‘‘the Office 
of Inspector General of the United States Postal 
Service’’ and inserting ‘‘the Office of Inspector Gen-
eral of the Postal Community’’. 
(4) In section 2003(e)(1), by striking ‘‘the Of-
fice of Inspector General, subject to the availability 
of amounts appropriated under section 8G(f) of the 
Inspector General Act of 1978.’’ and inserting ‘‘the 
Office of Inspector General of the Postal Commu-
nity’’. 
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107 
(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: 
‘‘(I) is an officer or employee of the Postal 
Service who— 
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108 
‘‘(aa) is not represented by a bar-
gaining representative recognized under 
section 1203; and 
‘‘(bb) is in a supervisory, professional, 
technical, clerical, administrative, or mana-
gerial position covered by the Executive 
and Administrative Schedule; and’’. 
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; 
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109 
‘‘(3) the term ‘head of a covered postal entity’ 
means— 
‘‘(A) in the case of the Postal Service, the 
Postmaster General; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, the Chairman of the Postal Regu-
latory Commission; 
‘‘(4) the term ‘postal contract’ means— 
‘‘(A) in the case of the Postal Service, any 
contract (including any agreement or memo-
randum of understanding) entered into by the 
Postal Service for the procurement of goods or 
services; or 
‘‘(B) in the case of the Postal Regulatory 
Commission, any contract (including any agree-
ment or memorandum of understanding) in an 
amount exceeding the simplified acquisition 
threshold (as defined in section 134 of title 41 
and adjusted under section 1908 of such title) 
entered into by the Postal Regulatory Commis-
sion for the procurement of goods or services; 
and 
‘‘(5) the term ‘senior procurement executive’ 
means the senior procurement executive of a covered 
postal entity. 
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110 
‘‘§ 702. Delegation of contracting authority 
‘‘(a) IN GENERAL.— 
‘‘(1) POLICY.—Not later than 60 days after the 
date of enactment of this chapter, the head of each 
covered postal entity shall issue a policy on con-
tracting officer delegations of authority for postal 
contracts for the covered postal entity. 
‘‘(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-
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112 
‘‘(2) POSTAL
SERVICE.—The Postal Service 
shall make the noncompetitive purchase request for 
any noncompetitive award of a postal contract in an 
amount of $250,000 or more, including the rationale 
supporting the noncompetitive award, publicly avail-
able on the Web site of the Postal Service— 
‘‘(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. 
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113 
‘‘(B) AMOUNT OF ADJUSTMENTS.—An ad-
justment under subparagraph (A) shall be made 
in increments of $5,000. If the covered postal 
entity determines that a change in the Con-
sumer Price Index for a year would require an 
adjustment in an amount that is less than 
$5,000, the Postal Service may not make an 
adjustment to the threshold for the year. 
‘‘(4) EFFECTIVE DATE.—This subsection shall 
apply to any noncompetitive contract awarded on or 
after the date that is 90 days after the date of en-
actment of this chapter. 
‘‘(b) PUBLIC AVAILABILITY.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the information required to be made publicly avail-
able by a covered postal entity under subsection (a) 
shall be readily accessible on the Web site of the cov-
ered postal entity. 
‘‘(2) PROTECTION OF PROPRIETARY INFORMA-
TION.—A covered postal entity shall— 
‘‘(A) carefully screen any description of the 
rationale supporting a noncompetitive award re-
quired to be made publicly available under sub-
section (a) to determine whether the description 
includes proprietary data (including any ref-
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114 
erence or citation to the proprietary data) or se-
curity-related information; and 
‘‘(B) remove any proprietary data or secu-
rity-related information before making publicly 
available a description of the rationale sup-
porting a noncompetitive award. 
‘‘(c) WAIVERS.— 
‘‘(1) WAIVER PERMITTED.—If the Postal Serv-
ice determines that making a noncompetitive pur-
chase request for a postal contract of the Postal 
Service publicly available would risk placing the 
Postal Service at a competitive disadvantage relative 
to a private sector competitor, the senior procure-
ment executive, in consultation with the advocate for 
competition of the Postal Service, may waive the re-
quirements under subsection (a). 
‘‘(2) FORM AND CONTENT OF WAIVER.— 
‘‘(A) FORM.—A waiver under paragraph 
(1) shall be in the form of a written determina-
tion placed in the file of the contract to which 
the noncompetitive purchase request relates. 
‘‘(B) CONTENT.—A waiver under para-
graph (1) shall include— 
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115 
‘‘(i) a description of the risk associ-
ated with making the noncompetitive pur-
chase request publicly available; and 
‘‘(ii) a statement that redaction of 
sensitive information in the noncompetitive 
purchase request would not be sufficient to 
protect the Postal Service from being 
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. 
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116 
‘‘§ 705. Ethical restrictions on participation in certain 
contracting activity 
‘‘(a) DEFINITIONS.—In this section— 
‘‘(1) the term ‘covered employee’ means— 
‘‘(A) a contracting officer; or 
‘‘(B) any employee of a covered postal en-
tity whose decisionmaking affects a postal con-
tract as determined by regulations prescribed 
by the head of a covered postal entity; 
‘‘(2) the term ‘final conviction’ means a convic-
tion, whether entered on a verdict or plea, including 
a plea of nolo contendere, for which a sentence has 
been imposed; and 
‘‘(3) the term ‘covered relationship’ means a 
covered 
relationship 
described 
in 
section 
2635.502(b)(1) of title 5, Code of Federal Regula-
tions, or any successor thereto. 
‘‘(b) IN GENERAL.— 
‘‘(1) REGULATIONS.—The head of each covered 
postal entity shall prescribe regulations that— 
‘‘(A) require a covered employee to include 
in the file of any noncompetitive purchase re-
quest for a noncompetitive postal contract a 
written certification that— 
‘‘(i) discloses any covered relationship 
of the covered employee; and 
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117 
‘‘(ii) states that the covered employee 
will not take any action with respect to the 
noncompetitive purchase request that af-
fects the financial interests of a friend, rel-
ative, or person with whom the covered 
employee is affiliated in a nongovernmental 
capacity, or otherwise gives rise to an ap-
pearance of the use of public office for pri-
vate gain, as described in section 2635.702 
of title 5, Code of Federal Regulations, or 
any successor thereto; 
‘‘(B) require a contracting officer to con-
sult with the ethics counsel for the covered 
postal entity regarding any disclosure made by 
a covered employee under subparagraph (A)(i), 
to determine whether participation by the cov-
ered employee in the noncompetitive purchase 
request would give rise to a violation of part 
2635 of title 5, Code of Federal Regulations 
(commonly referred to as the Standards of Eth-
ical Conduct for Employees of the Executive 
Branch), or any successor thereto; 
‘‘(C) require the ethics counsel for a cov-
ered postal entity to review any disclosure made 
by a contracting officer under subparagraph 
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118 
(A)(i) to determine whether participation by the 
contracting officer in the noncompetitive pur-
chase request would give rise to a violation of 
part 2635 of title 5, Code of Federal Regula-
tions (commonly referred to as the Standards of 
Ethical Conduct for Employees of the Executive 
Branch), or any successor thereto; 
‘‘(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-
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119 
wise mitigate any organizational or personal 
conflict of interest, if the head of the covered 
postal entity determines that the waiver or miti-
gation is in the best interests of the covered 
postal entity. 
‘‘(2) POSTING OF WAIVERS.—Not later than 30 
days after the head of a covered postal entity grants 
a waiver described in paragraph (1)(F), the head of 
the covered postal entity shall make the waiver pub-
licly available on the Web site of the covered postal 
entity. 
‘‘(c) CONTRACT VOIDANCE AND RECOVERY.— 
‘‘(1) UNLAWFUL
CONDUCT.—In any case in 
which there is a final conviction for a violation of 
any provision of chapter 11 of title 18 relating to a 
postal contract, the head of a covered postal entity 
may— 
‘‘(A) void that contract; and 
‘‘(B) recover the amounts expended and 
property transferred by the covered postal enti-
ty under that contract. 
‘‘(2) OBTAINING OR DISCLOSING PROCUREMENT 
INFORMATION.— 
‘‘(A) IN GENERAL.—In any case in which 
a contractor under a postal contract fails to 
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timely disclose a conflict of interest to the ap-
propriate contracting officer as required under 
the regulations promulgated under subsection 
(b)(1)(E), the head of a covered postal entity 
may— 
‘‘(i) void that contract; and 
‘‘(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’’. 
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SEC. 402. TECHNICAL AMENDMENT TO DEFINITION. 
Section 7101(8) of title 41, United States Code, is 
amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(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.’’. 
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Union Calendar No. 671 
114TH CONGRESS 
2D SESSION 
H. R. 5714 
[Report No. 114–858, Part I] 
A BILL 
To restore the financial solvency and improve the 
governance of the United States Postal Service in 
order to ensure the efficient and affordable na-
tionwide delivery of mail, and for other purposes. 
DECEMBER 8, 2016 
Reported from the Committee on Oversight and 
Government Reform 
DECEMBER 8, 2016 
The Committees on Ways and Means and Energy and 
Commerce discharged; committed to the Committee of 
the Whole House on the State of the Union and or-
dered to be printed 
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