Document:

EX-10.3

Table of Contents

 Exhibit 10.3 

 

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	 	  1. CONTRACT ID CODE  	 	   PAGE OF  

1        8

									
	
2. AMENDMENT/MODIFICATION NO.

019
  
	 	
3. EFFECTIVE DATE  

06/27/2014
	 	4. REQUISITION/PURCHASE REQ. NO.	 	 5. PROJECT NO.

(If applicable)

	6. ISSUED BY
                        CODE	 	5ASNET	 	7. ADMINISTERED BY (IF OTHER THAN ITEM 6)	 	  CODE  	 	  5ASNET  
	  
 ALAINA EARL

Air Transportation CMC
 United States Postal
Service
 475 L’Enfant Plaza SW

Room 1P 650
 Washington DC 20260-0650

(202) 268-6580
  
	 	  
 Air Transportation CMC

Air Transportation CMC
 United States Postal
Service
 475 L’Enfant Plaza SW, Room 1P650
 Washington DC 20260-0650

							
	 8. NAME AND ADDRESS OF CONTRACTOR (No., Street, County, State, and Zip Code)
 FEDERAL EXPRESS CORPORATION
 3610 HACKS CROSS ROAD

MEMPHIS TN 38125-8800
	 	  (x)	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	 	 	  	 9B. DATED (SEE ITEM 11)

 
  

	 	    x
  
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO. ACN-13-FX

 

	 	 	  	 10B. DATED (SEE ITEM 13)
  

04/23/2013
  

	SUPPLIER CODE:    000389122	 	FACILITY CODE	 	 	  	 

 11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS 

 

							
	 ̈	 	 	 	 	  	     ̈  is extended,       
  ̈  is not extended.

 Offers must acknowledge receipt of this amendment prior to the hour and date specified in the solicitation or as amended,
by one of the following methods: (a) By completing items 8 and 15, and returning                copies of the amendment; (b) By acknowledging receipt of
this amendment on each copy of the offer submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment number. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT
OF OFFERS PRIOR TO THE HOUR AND DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter
makes reference to the solicitation and this amendment, and is received prior to the opening hour and date specified. 
  

			
	 12. ACCOUNTING AND APPROPRIATION
DATA     (If Required)
 See Schedule
	  	$0.00            

			
	  
 13. THIS
ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
  
	 	

									
	    (x)    	 	  A.  	 	 THIS CHANGE BY CLAUSE IS ISSUED PURSUANT TO: (Specify Clause) THE CHANGES SET FORTH
IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
  
	 		 	
	 ̈	 	 	 	 		 	
	 ̈	 	  B.  	 	 THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as
changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14.
  
	 		 	
	 ̈	 	  C.  	 	 THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: THE CHANGES SET FORTH IN
ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
  
	 		 	
	x	 	  D.  	 	 OTHER (such as no cost change/cancellation, termination, etc.) (Specify type of modification and
authority): THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
 Mutual Agreement of the Contracting
Parties
  
	 		 	

			
	  
 E.
IMPORTANT:     Contractor  ̈ is not, x is required to sign this document and
return          1           copies to the issuing office.

 
	 	
	  
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF
section headings, including solicitation/contract subject matter where feasible.)
 By mutual agreement of the contracting
parties the follow modification is issued to incorporate the following into the ACN-13-FX – contract:
  

1. Beginning on line 434, in the “Offshore Capacity Requirement – Day Network” section, the following language is
inserted:
  
 In the event that destinating offshore
volumes exceed the volumes listed in “Offshore Capacity Requirement – Day Network” at the Aviation Supplier’s Memphis hub, the excess volume will receive a scan in Memphis that qualifies as a Delivery Scan.

 
 This scan will fulfill the requirement that the aviation supplier
obtain a destination
  
 Continued...

 
 Except as provided herein, all terms and conditions of the document referenced in
Item 9A or 10A, as heretofore changed, remains unchanged and in full force and effect.
	 	

  

					
	 15A. NAME AND TITLE OF SIGNER (Type or
print)
  
     Paul J. Herron, Vice
President
  
	 	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

 
      Susan E. Partridge

 
	 	 

									
	 15B.
CONTRACTOR/OFFEROR
  

     /s/ PAUL J. HERRON
 (Signature of person authorized to sign)
	 	
15C. DATE SIGNED
  
 09/09/14
	 	 16B. CONTRACT AUTHORITY

 
     /s/ SUSAN E.
PARTRIDGE
 (Signature of Contracting Officer)
	 	 16C. DATE SIGNED

 
 09/09/14
	 	 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 PAGE OF

2        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO.	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 Delivery Scan under Payment Procedures.

The time of the scan will also be used to measure performance under Performance Requirements and Measurement and in the assessment of reductions under
Reduction of Payment.
 All destinating offshore volume will move to the offshore destination as part of the Aviation Supplier’s services
under this contract, on a first-in, first-out basis. The Aviation Supplier
 is still responsible for performing a Delivery Scan when the volume
is tendered to the Postal Service at the offshore destination.
  
 2.
Beginning on line 576, in the “Ordering Process – Non-Peak – Day Network” section, the following language is inserted:
  

[*]
  

3. Lines 622 – 623 will change
  

FROM:
  
 The Postal Service will request capacity based on specific plans for a Tuesday / Wednesday plan, a Thursday / Friday plan, and a Saturday / Sunday plan.

 
 TO:
  

The Postal Service will request capacity based on specific plans for a Tuesday / Wednesday plan, a Thursday / Friday plan, a Saturday plan and a Sunday
plan.
  
 4. Lines 842 – 843 will change

 
 FROM:

 
 Continued...
	 	 	 	 	 	 	 	 

 * Blank spaces contained confidential information which has been filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 PAGE OF

3        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO.	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 The reduction in payment will be based on a conversion of the
weight of the late Handling Units to cubic feet by the applicable mail class density and will be applied at the base or the tier in which the delivery occurred
  

TO:
  
 The reduction in payment will be based on a conversion of the weight of the late Handling Units to cubic feet by the applicable contract density and will be applied at the base or the tier in which the
late delivery occurred
  
 5. Lines 1201-1203 will change

 
 FROM:

 
 [*]

 
 TO:

 
 [*]

 
 6. Lines 1230 – 1232 will change

 
 From:

 
 The transportation payment fir mixed ULDs will be based on the applicable cubic feet
of the originating ULD. These transportation payments will be reduced for Handling Units not receiving a Delivery Scan by converting the weight of the Handling Units without a Delivery Scan at the correct destination to cubic feet by the applicable
mail class density.
  
 Continued...
	 	 	 	 	 	 	 	 

 * Blank spaces contained confidential information which has been filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 PAGE OF

4        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO.	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 TO:

 
 The transportation payment for mixed ULDs will be based on the applicable feet of
the originating ULD. These transportation payments will be reduced for Handling Units not receiving a Delivery Scan by converting the weight of the Handling Units without a Delivery Scan at the correct destination to cubic feet by the applicable
contract density.
  
 7. Lines 1245 – 1247 is changed

 
 FROM:

 
 If mail is tendered to the aviation supplier from a defined truck location as
identified in Attachments 3 and 4 at contract award, the invoiced cubic feet will be calculated by dividing the Handling Unit’s Postal Service assigned rounded weight by the applicable mail class density.

 
 TO
  

If mail is tendered to the aviation supplier from a defined truck location as identified in Attachments 3 and 4 at contract award, the invoiced cubic feet
will be calculated by dividing the Handling Unit’s Postal Service assigned rounded weight by the applicable contract density.
  

8. Lines 1252 – 1253 will change
  

FROM
  
 The aviation supplier will accept ad hoc trucks from the Postal Service at the proposed hub locations. The invoiced cubic feet for ad hoc trucks will be calculated by dividing the Handling Unit’s
Postal Service assigned rounded weight by the applicable mail class density. Recognizing the reduced work content, the
  
 Continued...
	 	 	 	 	 	 	 	 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 Page Of

5        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO 	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 aviation supplier will provide an unload rate in
Attachment 10: Pricing for the receipt and processing of all ad hoc truck mail volume. The Postal Service will incorporate ad hoc truck

payments in the weekly electronic payment.
  

TO
  
 The aviation supplier will accept ad hoc trucks from the Postal Service at the proposed hub locations. The invoiced cubic feet for ad hoc trucks will be calculated by dividing the Handling Unit’s
Postal Service assigned rounded weight by the applicable contract density. The Postal Service will incorporate ad hoc truck
 payments in the
weekly electronic payment.
  
 9. The following is added at line
1284:
  
 The average weight process is detailed in Attachment 15, Average
Weights.
  
 10. The following is added at line 1293:

 
 The Re-Labeling process is described in Attachment 16, Re-labeling / Type M Matching
Process
  
 11. The following is added at line 1363:

 
 The average weight process is detailed in Attachment 15, Average Weights.

 
 12. The following definition is added to Clause B-1:

 
 Definitions:

 
 a. Payment Week: The period each week of an Operating Period between 00:00 Saturday
and 23:59 Friday.
  
 Continued...
	 	 	 	 	 	 	 	 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 Page Of

6        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO 	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 13. Lines 3488 – 3492 will change

 
 FROM:

 
 It is the responsibility of the Party asserting the Force Majeure event to formally
declare that a Force Majeure event has taken place within twenty-four (24) hours of the event.
  
 TO:
  
 It is the responsibility
of the Party asserting the Force Majeure event to formally declare that a Force Majeure event has taken place within twenty-four (24) hours of the event, except when the event occurs on a Friday, Saturday or Sunday. Declaration of a Force Majeure
event that occurs on a Friday, Saturday, or Sunday must be made by the close of business on the following Monday, except when the Monday falls on a holiday, then it must be declared by the close of business on the following Tuesday.

 
 14. Attachment 1 is corrected as follows:

 
 Operating Period 25: End Date From 11/02/15 TO 11/01/15

Operating Period 26: Begin Date From 11/03/15 TO 11/02/15
 Operating Period 68: Begin date From 04/29/14 TO 04/29/19
 Operating Period 74: Begin date From
10/30/19 TO 10/28/19
  
 15. Required Delivery Times in Attachments 3 &
4, attached, are corrected.
  
 16. The following special notes added are
added to Attachment 3:
  
 Continued...
	 	 	 	 	 	 	 	 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 Page Of

7        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO 	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 a. [*]

 
 b. [*]

 
 c. [*]

 
 d. [*]

 
 17. The following was added to Attachment 3, Operating Plan, Day Network:
Tender and Delivery Codes Definition:
  
 K: Aviation Supplier Deck
Loads
  
 18. Corrections to the “Tender and Delivery Codes” are
attached
  
 19. The following sites and tender times were added
to:
  
 Attachment 4, Operating Plan – Night Network and,

Attachment 4, Operating Plan, Night Network,

Tender and Delivery Codes:
  
 Amarillo, TX (AMA)
 Helena, MT (HLN)
 Salisbury, MD (SBY)
  
 20.
[*]
  
 Continued...
	 	 	 	 	 	 	 	 

 * Blank spaces contained confidential information which has been filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. 

Table of Contents

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 Page Of

8        8

									
	 CONTRACT/ORDER NO.

ACN-13-FX/019
	 	 AWARD/ EFFECTIVE DATE  

06/27/2014
	 	MASTER/AGENCY CONTRACT NO 	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	    UNIT    	 	UNIT PRICE	 	AMOUNT
	 	 	 [*]

 
 21. [*]

 
 a. [*]

 
 22. The following Wage Determinations are incorporated into Attachment 13, Service
Contract Act – Wage Determinations:
  
 [*]

 
 23. Attachment 14, Density, is hereby incorporated.

 
 24. Attachment 15, Average Weight Process, is hereby incorporated.

 
 25. Attachment 16, Re-Labeling / HUP Process, is hereby incorporated.

 
 26. Attachment 17, Handling Unit Types, is hereby incorporated.

Sub Rept Req’d: Y Carrier Code: FX Route Termini
 S: Various Route Termini End: Various Payment
 Terms: SEE CONTRACT

Period of Performance: 09/30/2013 to 09/30/2020
	 	 	 	 	 	 	 	 

 * Blank spaces contained confidential information which has been filed separately with the Securities and
Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. 

Table of Contents

 United States Postal Service 

AIR CARGO NETWORK 
 Contract ACN-13-FX 
 Awarded By: 

Air Transportation CMC 
 Transportation Portfolio 
 Supply Management 

475 L’Enfant Plaza SW 
 Room 1P 650 
 Washington, DC 20260-0650 

April 23, 2013 
 Modification 1 Issued May 28, 2013 
 Modification 2 Issued June 24, 2013

 Modification 3 Issued September 24, 2013 
 Modification 7 Issued October 22, 2013 
 Modification 11 Issued January 6,
2014 
 Modification 12 February 3, 2014 
 Modification 13 March 3, 2014 
 Modification 14 March 31, 2014

 Modification 15 April 28, 2014 
 Modification 16 May 27, 2014 
 Modification 17, May 11, 2014

 Modification 18, June 18, 2014 
 Modification 19, June 27, 2014 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Table of Contents 
  

 Table of Contents 

 

					
	 Part 1: Statement of Work
	  	 	5	  
	 Purpose and Scope
	  	 	5	  
	 Scale
	  	 	5	  
	 Services Provided
	  	 	5	  
	 Service Points
	  	 	6	  
	 Management Plan
	  	 	6	  
	 Frequency
	  	 	7	  
	 Mail Assignment and Transport - Day Network
	  	 	7	  
	 Mail Assignment and Transport - Night Network
	  	 	7	  
	 Local Agreements
	  	 	7	  
	 Postal Service Performs Terminal Handling Service (THS) Operation - Day Network
	  	 	7	  
	 Aviation Supplier Planned Accommodation - Day Network
	  	 	8	  
	 Aviation Supplier Planned Accommodation - Night Network
	  	 	9	  
	 Delivery - Day Network
	  	 	9	  
	 Delivery - Night Network
	  	 	9	  
	 Saturday Delivery - Day Network
	  	 	9	  
	 Specific Delivery Instructions
	  	 	9	  
	 Boarding Priority - Day Network
	  	 	9	  
	 Boarding Priority - Night Network
	  	 	10	  
	 Repossession of Mail by the Postal Service
	  	 	10	  
	 Treatment of Exceptional Types of Mail
	  	 	10	  
	 Perishable Mail and Live Mail
	  	 	12	  
	 Registered Mail
	  	 	12	  
	 Offshore Capacity Requirement - Day Network
	  	 	12	  
	 Volume Commitment - General Information
	  	 	13	  
	 Volume Commitment - Contract Volume Minimum - Day Network
	  	 	13	  
	 Operating Period Volume Minimum - Day Network
	  	 	13	  
	 Operating Period Volume Minimum - Night Network
	  	 	13	  
	 Volume Commitment - Holiday - Day Network
	  	 	14	  
	 Volume Commitment - Holiday - Night Network
	  	 	14	  
	 Operating Periods
	  	 	15	  
	 Ordering Process - Non-Peak - Day Network
	  	 	15	  
	 Ordering Process - Non-Peak - Night Network
	  	 	15	  
	 Ordering Process - Peak - Day Network
	  	 	16	  
	 Ordering Process - Peak - Night Network
	  	 	16	  
	 Electronic Data Interchange (EDI)
	  	 	17	  
	 Operational Condition Reports
	  	 	17	  
	 Dimensional Weight Reports
	  	 	18	  
	 Scanning and Data Transmission
	  	 	18	  
	 Performance Requirements and Measurement
	  	 	19	  
	 Reduction of Payment
	  	 	20	  
	 Performance Management
	  	 	21	  
	 Sustainability
	  	 	21	  
	 Security
	  	 	22	  
	 Postal Service Employees Allowed Access
	  	 	22	  
	 Personnel Screening
	  	 	22	  
	 Payment Procedures
	  	 	26	  
	 Rates and Payment General
	  	 	26	  
	 Payment Processing - Day Network - Per Cube
	  	 	27	  
	 Payment Processing - Night Network - Per Pound
	  	 	29	  

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Table of Contents 
  

							
	 Reconciliation Process
	  	 	30	  
		
	 Part 3: Contract Clauses
	  	 	31	  
	 Clause B-1:
	 	 Definitions (March 2006) (Tailored)
	  	 	31	  
	 Clause B-3:
	 	 Contract Type (March 2006) (Tailored)
	  	 	34	  
	 Clause B-9:
	 	 Claims and Disputes (March 2006) (Tailored)
	  	 	34	  
	 Clause B-10:
	 	 Pricing of Adjustments (March 2006) (Tailored)
	  	 	35	  
	 Clause B-15:
	 	 Notice of Delay (March 2006) (Tailored)
	  	 	35	  
	 Clause B-22:
	 	 Interest (March 2006) (Tailored)
	  	 	36	  
	 Clause B-25:
	 	 Advertising of Contract Awards (March 2006)
	  	 	36	  
	 Clause B-30:
	 	 Permits and Responsibilities (March 2006) (Tailored)
	  	 	36	  
	 Clause B-39:
	 	 Indemnification (March 2006) (Tailored)
	  	 	36	  
	 Clause B-45:
	 	 Other Contracts (March 2006) (Tailored)
	  	 	36	  
	 Clause B-65:
	 	 Adjustments to Compensation (March 2006) (Tailored)
	  	 	36	  
	 Clause B-69:
	 	 Events of Default (March 2006) (Tailored)
	  	 	37	  
	 Clause B-75:
	 	 Accountability of the Aviation Supplier (Non-Highway) (March 2006) (Tailored)
	  	 	37	  
	 Clause B-77:
	 	 Protection of the Mail (Non-Highway) (March 2006) (Tailored)
	  	 	38	  
	 Clause B-80:
	 	 Laws and Regulations Applicable (March 2006) (Tailored)
	  	 	39	  
	 Clause B-81:
	 	 Information or Access by Third Parties (March 2006) (Tailored)
	  	 	39	  
	 Clause B-82:
	 	 Access by Officials (March 2006) (Tailored)
	  	 	39	  
	 Clause 1-1:
	 	 Privacy Protection (July 2007)
	  	 	40	  
	 Clause 1-5:
	 	 Gratuities or Gifts (March 2006)
	  	 	41	  
	 Clause 1-6:
	 	 Contingent Fees (March 2006)
	  	 	41	  
	 Clause 1-11:
	 	 Prohibition Against Contracting with Former Officers or PCES Executives (March 2006) (Tailored)
	  	 	42	  
	 Clause 1-12:
	 	 Use of Former Postal Service Employees (March 2006) (Tailored)
	  	 	42	  
	 Clause 2-11:
	 	 Postal Service Property - Fixed-Price (March 2006) (Tailored)
	  	 	42	  
	 Clause 2-22:
	 	 Value Engineering Incentive (March 2006)
	  	 	44	  
	 Clause 3-1:
	 	 Small, Minority, and Woman-owned Business Subcontracting Requirements (March 2006)
	  	 	47	  
	 Clause 3-2:
	 	 Participation of Small, Minority, and Woman-owned Businesses (March 2006)
	  	 	48	  
	 Clause 4-1:
	 	 General Terms and Conditions (July 2007) (Tailored)
	  	 	48	  
	 Clause 4-2:
	 	 Contract Terms and Conditions Required to Implement Policies, Statutes, or Executive Orders (July 2009)
(Tailored)
	  	 	52	  
	 Clause 4-7:
	 	 Records Ownership (March 2006)
	  	 	53	  
	 Clause 6-1:
	 	 Contracting Officer’s Representative (March 2006)
	  	 	53	  
	 Clause 9-1:
	 	 Convict Labor (March 2006)
	  	 	53	  
	 Clause 9-2:
	 	 Contract Work Hours and Safety Standards Act - Overtime Compensation (March 2006)
	  	 	54	  
	 Clause 9-7:
	 	 Equal Opportunity (March 2006) (Tailored)
	  	 	54	  
	 Clause 9-9:
	 	 Equal Opportunity Preaward Compliance of Subcontracts (March 2006) (Tailored)
	  	 	55	  
	 Clause 9-10:
	 	 Service Contract Act (March 2006)
	  	 	55	  
	 Clause 9-12:
	 	 Fair Labor Standards Act and Service Contract Act - Price Adjustment (February 2010)
	  	 	62	  
	 Clause 9-13:
	 	 Affirmative Action for Workers with Disabilities (March 2006) (Tailored)
	  	 	63	  
	 Clause 9-14:
	 	 Equal Opportunity for Disabled Veterans, Recently Separated Veterans, Other Protected Veterans, and Armed Forces Service Medal
Veterans (February 2010) (Tailored)
	  	 	64	  
	 Contract Term
	  	 	66	  
	 Renewal Process
	  	 	66	  
	 Amendments or Modifications
	  	 	66	  

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Table of Contents 
  

							
	 Assignment
	  	 	66	  
	 Bankruptcy
	  	 	67	  
	 Confidentiality
	  	 	67	  
	 Entire Agreement
	  	 	68	  
	 Force Majeure
	  	 	68	  
	 Frequency Adjustment
	  	 	69	  
	 Notices
	  	 	69	  
	 Severability
	  	 	70	  
	 Third Party Governmental Delays
	  	 	70	  
	 Waiver of Breach
	  	 	70	  
		
	 Part 4 - List of Attachments and Forms
	  	 	71	  
	 Attachment 1
	 	 Postal Service Operating Periods, dated June 27, 2014
	  	 	72	  
	 Attachment 2
	 	 Air Stops & Projected Volumes, dated January 8, 2013
	  	 	74	  
	 Attachment 3
	 	 Operating Plan, Day Network, dated June 27, 2014
	  	 	75	  
	 Attachment 4
	 	 Operating Plan, Night Network, dated June 27, 2014
	  	 	81	  
	 Attachment 5
	 	 Reserved
	  			
	 Attachment 6
	 	 Postal Furnished Property, April 16, 2013
	  	 	89	  
	 Attachment 7
	 	 Electronic Data Interchange Service Requirements, dated September 1, 2012
	  	 	90	  
	 Attachment 8
	 	 Investigative / Security Protocol and Guidelines, dated July 2012
	  	 	91	  
	 Attachment 9
	 	 Wage Determination, dated October 31, 2012
	  	 	95	  
	 Attachment 10
	 	 Pricing, dated June 27, 2014
	  	 	98	  
	 Attachment 11
	 	 Perishable Mail and Lives, June 27, 2014
	  	 	100	  
	 Attachment 12
	 	 Reserved
	  			
	 Attachment 13
	 	 Service Contract Act Wage Determinations, dated June 24, 2014
	  	 	102	  
	 Attachment 14
	 	 Contract Density, dated June 27, 2014
	  	 	122	  
	 Attachment 15
	 	 Average Weight Process, dated June 27, 2014
	  	 	124	  
	 Attachment 16
	 	 Re-labeling Process, dated June 27, 2014
	  	 	125	  
	 Attachment 17
	 	 Handling Unit Types, dated June 27, 2014
	  	 	127	  

			
		
	 Forms
	  	
	 DOT Form F 5800.1
	  	Hazardous Materials Incident Report
	 I-9 Form
	  	Employment Eligibility Verification
	 PS Form 2025
	  	Contract Personnel Questionnaire
	 PS Form 8203
	  	Order / Solicitation / Offer / Award
	 US Treasury Form 941
	  	Quarterly Federal Tax Return

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Part 1: Statement of Work 
 Mod 19 

 

			
	  1	  	Part 1: Statement of Work
	  2	  	
	  3	  	
	  4	  	Purpose and Scope
	   5
   6
   7

  8

  9

10

11
	  	The United States Postal Service is seeking to purchase air transportation and ancillary services for
mail to and from destinations within the contiguous forty-eight (48) states
as well as non-contiguous
areas to include Alaska, Hawaii, and Puerto Rico. This statement of work (SOW) provides for the
transportation of mail on any flight in the aviation supplier’s air transportation network. It also provides
for
services associated with the transportation of mail by the aviation supplier. The air carrier’s
network or transportation system may include its own flights, flights of its approved subcontractors,
flights that may be dedicated to Postal
operations, and Road Feeder Service.
	12	  	
	13	  	
	14	  	Scale
	 15
 16
 17
	  	The volume of mail (expressed in pounds and cubic feet) transported as contracted under this air
cargo network contract may increase or decrease significantly over the term of
the contract consistent
with the needs of the Postal Service.
	18	  	
	19	  	
	20	  	Services Provided
	 21
 22
 23
 24
	  	The aviation supplier shall provide sufficient resources to efficiently and effectively take possession,
sort (if necessary), transport, scan, load, and deliver all mail to the
designated destination Service
Points specified by the Postal Service in Attachment 2: Air Stops & Projected Volumes, Attachment 3:
Operating Plan, Day Network, and Attachment 4: Operating Plan, Night
Network.
	25	  	
	26	  	The aviation supplier will present scan data for these events electronically to the Postal Service. See
	27	  	Attachment 7: Electronic Data Interchange Service Requirements.
	28	  	
	29	  	[*]
	30	  	
	31	  	
	32	  	
	33	  	
	34	  	
	35	  	The aviation supplier will be expected to (this list is not all inclusive):
	36	  	 a.      Coordinate and oversee its own operations; supervise and protect its own
employees.

	37	  	 b.      Ensure that the necessary facility support and administrative functions are
performed.

	38	  	 c.      Monitor performance.

	39	  	 d.      Provide feedback to the Postal Service.

	40	  	 e.      Ensure the integrity of data entry.

	41	  	 f.       Coordinate the exchange of information.

	 42
 43
	  	 g.      Provide notification of changes or anticipated changes in services provided
(including
subcontractors) to the Postal Service.

	44	  	 h.      Scan material Handling Units.

	45	  	 i.       Assist in unloading or loading Unit Load Devices (ULDs) to or from surface
transportation.

	 46
 47
	  	 j.       Provide the correct type and quantity of equipment necessary to support the
service
requirements of this contract.

	48	  	 k.      Process mail for dispatch from the aviation supplier’s facility to the Postal Service
facility.

	49	  	 l.       Close-out, receive, and dispatch all surface vehicles.

	50	  	 m.     Handle overflow volumes per Postal Service general directions.

	51	  	 n.      Cooperate with all aviation suppliers in the transportation service
chain.

	52	  	 o.      Enter data timely and accurately.

	53	  	 p.      Prepare required reports.

	54	  	 q.      Perform verification of security seals on surface transportation.

	55	  	 r.       Ensure the security of all mail.

	56	  	

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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Contract ACN-13-FX 
 Part 1: Statement of Work 
 Mod 19 

 

			
	57	  	
	58	  	Service Points
	 59
 60
 61
	  	 Service Points are the locations where tender and / or delivery takes place. The locations and tender

and delivery specifications are listed in Attachment 3: Operating Plan, Day Network, and Attachment

4: Operating Plan, Night Network.

	62	  	
	63	  	The Day Network will service approximately eighty (80) origin and destination Service Points.
	64	  	
	65	  	The Night Network will service approximately one hundred forty-five (145) origin and destination
	66	  	Service Points
	67	  	
	68	  	
	69	  	Management Plan
	 70
 71
 72
 73
	  	The aviation supplier shall develop and maintain a current Management Plan for dealing with normal
daily operations as well as unscheduled and unexpected events affecting the
expeditious operation of
the facility, including aviation and surface service failure and delays. The Management Plan must also
address the key personnel involved on a day to day basis.
	74	  	
	 75
 76
 77
	  	Updates to this plan shall be submitted to the Contracting Officer within ten (10) days of any changes
to the plan. The aviation supplier shall review and verify, at least
annually, that its management plan
is current.
	78	  	
	 79
 80
 81
	  	The aviation supplier must train its employees to a level of familiarity that ensures a contingency plan
can be exercised without delay. The following items must be addressed by
the Management Plan; the
list is not all inclusive.
	82	  	
	83	  	 a.      Late arriving aircraft and trucks

	84	  	 •   Ability to conduct two operations – Originating and Destinating

	85	  	
	86	  	 b.      Early arriving aircraft and trucks

	87	  	 c.      Mail arriving out of normal sequence

	88	  	 d.      Trucks not on-site for dispatch

	89	  	 e.      Inclement weather during operations

	90	  	 •   Snow issues

	91	  	 •   Ice storms

	92	  	 •   Airport closures

	93	  	
	94	  	 f.       Protection of the mail during inclement weather

	95	  	 g.      Labor actions

	96	  	 h.      Inadequate staffing

	97	  	 i.       An inability to complete all loading in time to meet tender

	98	  	 j.       Overflow mail

	99	  	 k.      Damaged and / or non air worthy containers

	100	  	 l.       Damaged surface containers

	101	  	 m.     Damaged or non-labeled mail

	102	  	 n.      Plan and schedule changes

	103	  	 o.      Loose load mail

	104	  	 p.      Hazardous Material (HAZMAT)-acceptable and non-acceptable pieces

	105	  	 q.      Handling and staging of live animals

	106	  	 r.       Running out of supplies such as placards, bypass tape, etc.

	107	  	 s.      Power losses – Describe in detail all steps to be taken in the event of power loss
to

	108	  	          include specific actions for back up power at the Terminal Handling Service
(THS) location

	109	  	          such as generators and other systems.

	110	  	 t.       Natural disasters

	111	  	 u.      Equipment breakdowns

	112	  	 v.      Airport closings

	113	  	 w.     Air Traffic Control (ATC) impact mitigation plan

  
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 Part 1: Statement of Work 
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	114	  	
	115	  	
	116	  	Frequency
	 117
 118
 119
 120
 121
	  	The initial frequency of service for the Day Network (Priority Mail / First Class network) is based on six
(6) days of Postal Service delivery and shall be Tuesday through Sunday
(X1).1 This will provide for
approximately 307 (308 in
a leap year) operating days annually. This excludes the widely observed
holidays as listed in the sections titled, Volume Commitment – Holiday – Day Network and Volume
Commitment – Holiday – Night
Network.
	122	  	
	 123
 124
 125
 126
 127
	  	The initial frequency of service for the Night Network (Express Mail network) is based on five (5) days
of Postal Service delivery and shall be Monday through Friday
(X67).2 This will provide for
approximately 254 (255 in
a leap year) operating days annually. This excludes the widely observed
holidays as listed in the sections titled, Volume Commitment – Holiday – Day Network and Volume
Commitment – Holiday – Night
Network.
	128	  	
	129	  	
	130	  	Mail Assignment and Transport - Day Network
	 131
 132
 133
	  	The aviation supplier shall provide flight schedules at least thirty (30) days in advance of the Operating
Period. The Postal Service will create dispatch routing instructions
based on the aviation supplier’s
flight schedule and subsequently shown on the Postal Service Dispatch and Routing (D&R) Tag.
	134	  	
	 135
 136
 137
 138
 139
	  	The Postal Service agrees to provide up to seventy-five (75%) percent of the total volume assigned to
the outbound flights to the aviation supplier one (1) hour before the
scheduled ‘All Mail Due Aviation
Supplier’ column as listed in Attachment 3: Operating Plan, Day Network. The Postal Service agrees
to provide the remaining twenty-five (25%) percent by the ‘All Mail Due Aviation
Supplier’ column listed
in Attachment 3: Operating Plan, Day Network.
	140	  	
	141	  	
	142	  	Mail Assignment and Transport - Night Network
	 143
 144
 145
 146
 147
	  	The Postal Service agrees to provide up to seventy-five (75%) percent of the total volume assigned to
the outbound flights to the aviation supplier thirty (30) minutes before the
scheduled ‘All Mail Due
Aviation Supplier’ column as listed in Attachment 4: Operating Plan, Night Network. The Postal
Service agrees to provide the remaining twenty-five (25%) percent by the ‘All Mail Due
Aviation
Supplier’ column listed in Attachment 4: Operating Plan, Night Network.
	148	  	
	149	  	
	150	  	Local Agreements
	 151
 152
 153
 154
	  	No Local Agreement (any informal agreement or working arrangement made between representatives
of the aviation supplier, the Postal Service, or their agents who lack authority to
bind either company)
shall be binding, obligate the Postal Service or the aviation supplier, or otherwise give rise to any claim
under this contract.
	155	  	
	156	  	
	157	  	Postal Service Performs Terminal Handling Service (THS) Operation - Day
	158	  	Network
	 159
 160
 161
 162
	  	Mail will be tendered to the aviation supplier in accordance with the Operating Plan provided by the
aviation supplier. The aviation supplier’s Operating Plan will be
provided thirty (30) days before the
start up of the Operating Period. The aviation supplier’s Operating Plan will specify the following
information:
	163	  	
	164	  	 Specific Type of Airline ULD per origin / destination

	165	  	 Destination of Airline ULD – Direct (bypass)

		  	  
 1    X1 refers to the day of the week that
service will not be performed. The days of the week are numbered consecutively from 1 through 7 beginning with Monday (1). “X1” means that service will operate each day of the week except Monday.

2    X67 refers to the days of the week that service will not be performed. “X67” means that service will operate each day of the week except
Saturday and Sunday.

  
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 Part 1: Statement of Work 
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	166	  	 Destination of Airline ULD – Mixed (to be sorted at hub)

	167	  	
	168	  	The Operating Plan will be mutually agreed upon prior to implementation.
	169	  	
	 170 171
 172
	  	The aviation supplier will transport, scan, and deliver the ULDs to the specific Service Points listed in
Attachment 3: Operating Plan, Day Network. The Postal Service or
its representative will build the
ULDs in conformance with the aviation supplier’s Operating Plan.
	173	  	
	174	  	The aviation supplier will perform the following activities including, but not limited to:
	175	  	
	 176
 177
 178
	  	 a.       Sorting and scanning mail at an aviation supplier hub, as necessary, which also may
include
re-wrap and reapplication of Distribution & Routing (D&R) Tags to mail requiring such
treatment, and dispatch on service responsive transportation

	179	  	
	 180
 181
	  	 b.       In the unlikely event that mail tendered to the aviation supplier is in excess
(overflow) of what
may be transported, the aviation supplier shall:

	182	  	 i.       Secure the mail.

	 183
 184
	  	 ii.      Scan all Handling Units and record the number of pieces, weight, and destination of
all
overflow Handling Units.

	 185
 186
 187
	  	 iii.     Immediately notify the local Postal official after becoming aware of an overflow
situation.
The Postal official will direct the aviation supplier to either hold the mail for
the next outbound flight or return it to the designated Postal facility.

	 188
 189
	  	 iv.     Prepare all overflow mail for delivery to the local designated Postal facility within
twenty
(20) minutes of receipt of Postal direction.

	 190
 191
	  	 v.       Provide a written report of the overflow to the local Postal official with a copy to
the
COR.

	192	  	
	 193
 194
 195
 196
	  	When transporting mail in carts, containers, or other vehicles, the mail must be securely enclosed to
protect it from loss, depredation, and damage. The aviation supplier will
stage mail in a secure area
while in its possession. The aviation supplier is not allowed to transport mail in the cabs of its vehicles
except for mail containing live animals.
	197	  	
	198	  	
	199	  	Aviation Supplier Planned Accommodation - Day Network
	 200
 201
 202
	  	The aviation supplier will guarantee space to accommodate up to 105% of the Planned Capacity from
each origin daily. All mail accepted by the aviation supplier is subject to the
service commitments set
forth in this contract.
	203	  	
	 204
 205
 206
	  	If the Postal Service tenders mail in excess of 105% of the Planned Capacity for that Service Point,
the aviation supplier may refuse to transport the excess tender. If the
volume is accepted, the same
service requirements apply.
	207	  	
	 208
 209
 210
	  	If the Postal Service tenders mail to the aviation supplier after the ‘All Mail Due Aviation Supplier’
column as shown in Attachment 3: Operating Plan, Day Network,
the aviation supplier has the right to
refuse that volume.
	211	  	
	 212
 213
 214
	  	Mail accepted after the agreed upon ‘All Mail Due Aviation Supplier’ column in Attachment 3:
Operating Plan, Day Network, shall be subject to the same service
commitments as mail tendered at
or before the ‘All Mail Due Aviation Supplier’ column.
	215	  	
	216	  	

  
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	217	  	
	218	  	Aviation Supplier Planned Accommodation - Night Network
	 219
 220
 221
	  	The aviation supplier will guarantee space to accommodate up to 120% of the Planned Capacity from
each origin daily. All mail accepted by the aviation supplier is subject to the
service commitments set
forth in this contract.
	222	  	
	 223
 224
 225
	  	If the Postal Service tenders mail in excess of 120% of the Planned Capacity for that Service Point,
the aviation supplier may refuse to transport the excess tender. If the
volume is accepted, the same
service requirements apply.
	226	  	
	 227
 228
 229
	  	If the Postal Service tenders mail to the aviation supplier after the ‘All Mail Due Aviation Supplier’
column as shown in Attachment 4: Operating Plan, Night
Network, the aviation supplier has the right to
refuse that volume.
	230	  	
	231	  	Mail accepted after the agreed upon ‘All Mail Due Aviation Supplier’ column in Attachment 4:
	 232
 233
	  	Operating Plan, Night Network, shall be subject to the same service commitments as mail tendered at
or before the ‘All Mail Due Aviation Supplier’
column.
	234	  	
	235	  	
	236	  	Delivery - Day Network
	 237
 238
	  	The aviation supplier will deliver mail to a destination Service Point by the scheduled ‘Latest Delivery
Time to Postal Service’ column in Attachment 3: Operating
Plan, Day Network.
	239	  	
	240	  	
	241	  	Delivery - Night Network
	 242
 243
 244
 245
	  	The aviation supplier will deliver mail to a Service Point by the scheduled ’Latest Delivery Time to
Postal Service’ column in Attachment 4: Operating Plan, Night
Network, on or before the scheduled
delivery day (D+1) on Attachment 4: Operating Plan, Night Network. “D+1” is defined as the day
following acceptance by the aviation supplier.
	246	  	
	247 248	  	At destination, the aviation supplier is required to unload the mail from the ULDs received, scan, and
deliver the mail to the Postal Service.
	249	  	
	250	  	
	251	  	Saturday Delivery - Day Network
	252	  	See Attachment 3: Operating Plan, Day Network, for details on Saturday delivery.
	253	  	
	254	  	
	255	  	Specific Delivery Instructions
	256	  	The aviation supplier shall:
	257	  	 a.      Assist in loading and dispatching all outbound surface vehicles, as
required

	258	  	
	 259
 260
 261
	  	 b.      Must develop a cooperative line of communication with the Postal Service to ensure the
timely
delivery and dispatch of mail. All efforts shall be made to provide an efficient and effective
delivery to the Postal Service.

	262	  	
	263	  	
	264	  	Boarding Priority - Day Network
	265	  	The aviation supplier must board accepted mail using the following mail boarding preference order:
	266	  	 a.      Registered (Con-Con) Mail

	267	  	
	268	  	 b.      Lives

	269	  	
	270	  	 c.      Perishables

	271	  	
	272	  	 d.      HAZMAT, regardless of mail class

  
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	273	  	
	274	  	 e.      Domestic Priority and Express Mail

	275	  	
	276	  	 f.       First-Class Mail

	277	  	
	278	  	 g.      All Other Mail

	279	  	
	 280
 281
	  	The Manager, Air Transportation Operations, or a Postal Service designee, will determine if the Postal
Service should repossess any mail without exercising rights as described in
the section titled
	282	  	Repossession of Mail by the Postal Service.
	283	  	
	284	  	
	285	  	Boarding Priority - Night Network
	286	  	The aviation supplier must board accepted mail using the following mail boarding preference order:
	287	  	 a.      Express Mail

	288	  	 b.      All other classes of mail

	289	  	
	290	  	
	291	  	Repossession of Mail by the Postal Service
	 292
 293
 294
	  	The Postal Service may, at any time, require the aviation supplier to return to the local Postal Service
representative or agent at a Service Point, any or all of the mail in its
possession at that location or the
Postal Service may take possession of such mail from the aviation supplier.
	295	  	
	296	  	
	297	  	Treatment of Exceptional Types of Mail
	298	  	 1.      Tagging of Hazardous Material

	 299
 300
	  	 The aviation supplier may carry mailable HAZMAT, subject to applicable law, rules and
regulations, including, without
limitation:

	301	  	
	302	  	 a.      ORM-D Air

	 303
 304
 305
 306
 307
 308
	  	 “ORM-D” stands for “Other Regulated Material-Class D.” ORM-D is a term developed by
the Department of Transportation (DOT) that
signifies the hazard class associated with a
consumer commodity. Most hazardous materials accepted by the Postal Service for
mailing are classified as ORM-D. A package marked ORM-D meets the standards for
surface transportation only.
“ORM-D-Air” signifies that the item meets the requirements
for air and surface transportation.

	309	  	
	 310
 311
 312
 313
 314
	  	 The Postal Service currently accepts limited quantity alternative marking options (square
on point) for ORM-D and ORM-D-Air and plans to adopt
mandatory effective dates as
identified by the Department of Transportation. There are no intended changes to
quantity limits, package weights, or documentation requirements for these mailable
materials.

	315	  	
	316	  	 b.       Division Class 6.2

	 317
 318
 319
 320
 321
	  	 Division Class 6.2 materials are not permitted in international mail or domestic mail,
except when they are intended for medical or veterinary use,
research, or laboratory
certification related to the public health. These materials are permitted only when they are
properly prepared for mailing to withstand shocks, pressure changes, and other conditions
related to ordinary handling in
transit.

	322	  	
	323	  	 c.       Division Class 9

	 324
 325
 326
 327
 328
	  	 Division Class 9 items are miscellaneous hazardous materials or substance articles that
present a hazard during transportation but do not meet the
definition of any other hazard
class. Examples of miscellaneous hazardous materials (not all of which are mailable)
include solid dry ice, elevated temperature substances, environmentally hazardous
substances, life-saving appliances, and
asbestos.

	329	  	

  
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	330	  	 d.      Hazardous and Dangerous Goods

	 331
 332
 333
 334
 335
 336
 337
 338
 339
	  	 The aviation supplier will accept all Dangerous Goods as defined in the Domestic Mail
Manual, section 601.10. All Dangerous Goods will be tendered
on the Night Network.
The Postal Service will be in compliance with the current International Air Transport
Association (IATA) allowed variations as listed for the aviation supplier. The Postal
Service will tender all Dangerous Goods at
least two hours prior to the tender time shown
in Attachment 4: Operating Plan, Night Network. The Postal Service shall not tender any
used sharps. Any future changes to Hazardous and Dangerous Goods requirements will
be reviewed and must
be acceptable to the aviation supplier prior to implementation of the
changes.

	340	  	
	 341
 342
 343
 344
	  	 e.      All other hazardous material that is packaged and distributed in a quantity and
form
intended or suitable for retail sale and designed for consumption by individuals for their
personal care or household use purposes; reference
http://pe.usps.gov/text/dmm300/601.htm#wp1065003.

	345	  	
	346	  	 2.      Assignment of Hazardous Materials

	 347
 348
	  	 a.      The tender of all hazardous materials will be performed a minimum of two (2) hours
prior
to the final tender time of the intended flight.

	349	  	
	350	  	 b.      The desired flight assignment of HAZMAT is to non-stop or direct
flights.

	351	  	
	352	  	 c.      No surcharge is offered for the transportation of HAZMAT mail.

	353	  	
	 354
 355
 356
 357
 358
 359
	  	 d.      A copy of the manifest and the assigned item MUST be handed to an aviation
supplier
representative a minimum of two (2) hours prior to the closeout time of the intended flight.
The aviation supplier representative will be responsible for ensuring that the information
on the postal manifest which includes the
number of pieces, weight, and appropriate
shipper’s certification detail is incorporated onto the aircraft load manifest and pilot
notification paperwork as outlined in CFR 49, Part 175, Carriage by Aircraft.

	360	  	
	 361
 362
 363
	  	 e.      Aviation supplier Refusal to Accept Hazardous Materials: If the aviation supplier
refuses
to accept a properly prepared HAZMAT item, it shall document the reasons leading to the
refusal. Documentation will include:

	364	  	 i.       Name and address of mailer and air carrier;

	365	  	 ii.      The type and amount of hazardous material; and

	366	  	 iii.     The reason for refusal.

	367	  	
	368	  	 f.       HAZMAT Spills, Releases, Incidents, and Emergencies

	369	  	 i.       While in the possession of the aviation supplier, but not on board an
aircraft:

	 370
 371
 372
 373
 374
 375
 376
 377
	  	 Hazardous Material items which are damaged must not be boarded on the
aircraft. HAZMAT incidents which occur following the tender but prior
to
boarding of the aircraft, or after unloading from an aircraft and before delivery
to the Postal Service, causing injury, illness, significant property damage, or
disruption in operations will require the aviation supplier to enter the
required
information into the Mail Piece Incident Reporting Tool (MIRT), a Postal
Service intranet tool for the collection of information on leaking and other non-
mailable items.

	378	  	
	379	  	 ii.      While on board an aircraft:

	 380
 381
 382
 383
 384
 385
	  	 Any incident which occurs while on board an aircraft will require the aviation
supplier to complete a Department of Transportation (DOT) Form F
5800.1
(01-2004), Hazardous Materials Incident Report. A copy of this form must be
sent to the COR within twenty-four (24) hours of the incident with all
information available. The incident type is not limited to hazardous
material
and may include hazardous cargo spills which come in contact with the mail.

	386	  	

  
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	387	  	
	388	  	Perishable Mail and Live Mail
	 389
 390
 391
 392
 393
 394
	  	The aviation supplier will be required to transport as mail perishable items which the Postal Service
has accepted as mailable under Domestic Mail Manual (DMM) 601, sub section
9.0, including live
animals as discussed at DMM 601 subsection 9.3. The Postal Service will notify the aviation supplier
a minimum of two (2) hours prior to the ‘All Mail Due Aviation Supplier’ time as listed in Attachment
3:
Operating Plan, Day Network, and Attachment 4: Operating Plan, Night Network, of the intended flight
of known perishable mail, including live animals.
	395	  	
	 396
 397
	  	Attachment 11: Perishable Mail and Lives, details the requirements for preparation and tender of
perishable mail and live animal shipments.
	398	  	
	399	  	
	400	  	Registered Mail
	401	  	The aviation supplier will accept Registered Mail provided in Con-Cons for the Day Network only.
	402	  	
	 403
 404
	  	Registered Mail Con-Cons will be a part of the Planned Capacity and will be tendered in accordance
with Attachment 3: Operating Plan, Day Network.
	405	  	
	 406
 407
	  	Upon request, the aviation supplier shall furnish the Postal Service the following information
concerning Registered Mail:
	408	  	 •    Aircraft number,

	409	  	 •    Aircraft compartment location,

	410	  	 •    Actual flight departure time, and

	411	  	 •    Any accident or irregularity which occurs to a flight containing Registered
Mail.

	412	  	
	 413
 414
 415
	  	Registered Mail Handling Units will have a D&R Tag affixed indicating the final destination air stop.
This Handling Unit shall remain intact and shall not be opened by the
aviation supplier. The desired
routing for Registered Mail shipments will be to non-stop or direct flights only.
	416	  	
	 417
 418
 419
	  	The aviation supplier shall advise the U.S. Postal Inspection Service, local Postal Service
representatives, and will send an email message to the COR of any Registered Mail that
does not
make its planned dispatch for disposition instructions.
	420	  	
	421	  	
	422	  	Offshore Capacity Requirement - Day Network
	 423
 424
	  	The aviation supplier will make available at least the following daily volumes into and out of the
following locations.
	425	  	
	426	  	 Cube Based:

	427	  	 [*] cube (Originating) and [*] cube Destinating Anchorage (ANC)

	428	  	 [*] cube (Originating) and [*] cube Destinating Honolulu (HNL)

	429	  	 [*] cube (Originating) and [*] cube Destinating San Juan (SJU)

	430	  	
	 431
 432
	  	The Postal Service may increase this capacity as needed through the planning process through the
mutual agreement of the parties.
	433	  	
	 434
 435
 436
 437
 438
 439
	  	In the event that destinating offshore volumes exceed the volumes listed in “Offshore Capacity
Requirement - Day Network” at the Aviation Supplier’s Memphis hub,
the excess volume will receive a
scan in Memphis that qualifies as a Delivery Scan. This scan will fulfill the requirement that the
aviation supplier obtain a destination Delivery Scan under Payment Procedures. The time of the
scan
will also be used to measure performance under Performance Requirements and Measurement and in
the assessment of reductions under Reduction of Payment.
	440	  	
	 441
 442
	  	All destinating offshore volume will move to the offshore destination as part of the Aviation Supplier’s
services under this contract, on a first-in, first-out basis. The
Aviation Supplier is still responsible for

  

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Exchange Act of 1934, as amended. 

  
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	 443
 444
	  	 performing a Delivery Scan when the volume is tendered to the Postal Service at the offshore

destination.

	445	  	
	446	  	
	447	  	Volume Commitment - General Information
	448	  	The Day Network operating week is defined as Tuesday through Sunday inclusive (X1).
	449	  	
	450	  	The Night Network operating week is defined as Monday through Friday inclusive (X67).
	451	  	
	 452
 453
	  	 The Postal Service is not obligated to request consistent capacity by day of the week. Requests for

capacity are detailed in the Ordering Process sections.

	454	  	
	455	  	The following constitute the only minimum volume guarantees under this contract:
	456	  	 •        Contract Volume Minimum of [*] cubic feet on the Day
Network.

	457	  	 •       The Contract Volume Minimum may be reduced in accordance with Clause
4-1:

	458	  	 General Terms and Conditions, paragraph m, and Frequency Adjustment found in

	459	  	 Part 3: Contract Clauses.

	460	  	
	461	  	 [*]

	462	  	
	463	  	
	464	  	
	465	  	
	466	  	 •        90% of Planned Capacity for the Night Network for each Operating
Period

	467	  	
	 468
 469

470
	  	 Any monies due as a result of the Postal Service not meeting its Contract Volume Minimum or its

Operating Period Volume Minimum as measured and calculated at the end of each Operating Period
 will be included as part of the Operating Period’s reconciliation process.

	471	  	
	 472
 473

474
 475
	  	 On operating days where volume for lanes with Planned Capacity is withdrawn, withheld, or not

transported under the Repossession of Mail by the Postal Service or Force Majeure sections, that

volume will not be included in calculating the Operating Period Volume Minimum. The Contract
 Volume Minimum will be reduced for the Operating Period by the amount of that volume.

	476	  	
	477	  	
	478	  	Volume Commitment - Contract Volume Minimum - Day Network
	 479
 480

481
	  	 A minimum of [*] cubic feet per operational day, averaged across six (6) days per week, and measured

across each Operating Period, will constitute the Contract Volume Minimum guaranteed to be paid by
 the Postal Service.

	482	  	
	483	  	
	484	  	Operating Period Volume Minimum - Day Network
	485	  	[*]
	486	  	
	487	  	
	488	  	
	489	  	
	490	  	
	 491
 492

493
	  	 Mail that is not accepted by the aviation supplier due to late tender from the Postal Service or in

excess of 105% of the Planned Capacity will not be counted towards the Operating Period Volume
 Minimum.

	494	  	
	495	  	
	496	  	Operating Period Volume Minimum - Night Network
	497	  	[*]
	498	  	

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	499	  	[*]
	500	  	
	501	  	
	502	  	
	503	  	
	504	  	
	505	  	
	506	  	
	507	  	Volume Commitment - Holiday - Day Network
	508 509	  	Each holiday will be addressed separately between the parties during the Ordering Process. The
holidays are:
	510	  	 •   New Year’s Day (widely observed)

	511	  	 •   Martin Luther King Day

	512	  	 •   Presidents’ Day

	513	  	 •   Memorial Day (widely observed)

	514	  	 •   Independence Day (widely observed)

	515	  	 •   Labor Day (widely observed)

	516	  	 •   Columbus Day

	517	  	 •   Veterans Day

	518	  	 •   Thanksgiving (widely observed)

	519	  	 •   Christmas (widely observed)

	520	  	
	521 522	  	For purposes of Contract Volume Minimum and Operating Period Volume Minimum calculations, the
following days will not be included:
	523	  	 •   Widely observed holidays

	524	  	 •   The day following the widely observed holidays that occur on a Monday

	525	  	 •   Non-widely observed holidays that occur on a Monday

	526	  	
	527 528	  	For purposes of Contract Volume Minimum and Operating Period Volume Minimum calculations, the
following days will be included at a 50% volume level:
	529	  	 •   The day following widely observed holidays not occurring on a Monday

	530	  	 •   Non-widely observed holidays not occurring on a Monday

	531	  	 •   The day after a non-widely observed holiday

	532	  	
	533	  	
	534	  	Volume Commitment - Holiday - Night Network
	535 536	  	Each holiday will be addressed separately between the parties during the Ordering Process. The
holidays are:
	537	  	 •   New Year’s Day (widely observed)

	538	  	 •   Martin Luther King Day

	539	  	 •   Presidents’ Day

	540	  	 •   Memorial Day (widely observed)

	541	  	 •   Independence Day (widely observed)

	542	  	 •   Labor Day (widely observed)

	543	  	 •   Columbus Day

	544	  	 •   Veterans’ Day

	545	  	 •   Thanksgiving (widely observed)

	546	  	 •   Christmas (widely observed)

	547	  	
	548 549	  	 The widely observed holidays will not be included in the Operating Period Volume Minimum

calculation.

	550	  	
	551 552	  	 The non-widely observed holidays will be included at a 50% volume level in the Operating Period

Volume Minimum calculation.

	553	  	

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	554	  	
	555	  	Operating Periods
	 556
 557
 558
	  	The Operating Periods are incorporated as Attachment 1: Postal Service Operating Periods. No
Operating Period will exceed five weeks. The Peak Operating Periods are
designated in Attachment
1: Postal Service Operating Periods.
	559	  	
	560	  	
	561	  	Ordering Process - Non-Peak - Day Network
	 562
 563
 564
 565
 566
	  	The Postal Service will provide the aviation supplier mail volumes in accordance with the identified
schedule specified below. The forecasting structure will specify each origin
/ destination lane pair
including cubic feet by day of week for the pairs. The Postal Service will request capacity based on
specific plans for a Tuesday / Wednesday plan, a Thursday / Friday plan, a Saturday plan, and a
Sunday
plan.
	567	  	
	568	  	[*]
	569	  	
	570	  	
	571	  	
	572	  	
	573	  	
	574	  	
	575	  	
	576	  	
	577	  	
	578	  	
	579	  	
	580	  	
	581	  	
	582	  	
	583	  	
	 584
 585
	  	Over the course of the Ordering Process for two (2) Operating Periods, the Postal Service may reduce
volume down to the Contract Volume Minimum.
	586	  	
	 587
 588
	  	The request for capacity shall be presented to the aviation supplier in a mutually agreed upon
electronic origin / destination format.
	589	  	
	 590
 591
 592
 593
 594
 595
	  	Bypass containers will be allocated in lanes where the requested capacity is greater than one hundred
and ten (110) percent of the cubic capacity of the ULD configuration for the
aircraft planned for the
Service Point provided there is sufficient space to flow the Bypass container from the origin to the final
destination on the scheduled flights. To facilitate this process, the Postal Service and the
aviation
supplier will jointly agree upon both Bypass and Mixed containers to be built at all origins during the
Ordering Process.
	596	  	
	597	  	
	598	  	Ordering Process - Non-Peak - Night Network
	 599
 600
 601
	  	The Postal Service will provide the aviation supplier mail volumes in accordance with the identified
schedule specified below. The forecasting structure will specify each origin
/ destination lane pair
including weight.
	602	  	
	603	  	[*]
	604	  	
	605	  	
	606	  	
	607	  	
	608	  	
	609	  	

  

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Exchange Act of 1934, as amended. 

  
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	610	  	[*]
	611	  	
	612	  	
	 613
 614
	  	The request for capacity shall be presented to the aviation supplier in a mutually agreed upon
electronic origin / destination format.
	615	  	
	616	  	
	617	  	Ordering Process - Peak - Day Network
	 618
 619
 620
 621
 622
 623
	  	The Peak Operating Period will consist of four or five individual weeks, measured and planned as
independent of each other. One of the five weeks of the Peak Operating Period
will include the week
of Christmas. As such, the requested volume capacity will include the Christmas week. The
forecasting structure will specify each origin / destination lane pair including weight or cubic feet by
day of week for the
pairs. The Postal Service will request capacity based on specific plans for a
Tuesday / Wednesday plan, a Thursday / Friday plan, a Saturday plan and a Sunday plan.
	624	  	
	 625
 626
 627
 628
 629
 630
	  	The aviation supplier will make available at least [*] cubic feet of capacity per week for the Peak
Operating Period for the Day Network. As a general planning guideline, the
historical volume
transported per day during the Peak Operating Period ranges between [*] to [*] cubic feet. The Peak
season tab included in Attachment 2: Air Stops & Projected Volumes provides the historic mail volume
in pounds
by mail class by week during the Peak Operating Period. These volumes are provided for
initial planning purposes and do not constitute a guarantee of volume for the Peak Ordering Period.
	631	  	
	632	  	
	 633
 634
 635
 636
 637
 638
 639
 640
 641
	  	For the Peak Operating Period, the Postal Service will provide the aviation supplier a request for
capacity by lane, expressed in cubic feet, one hundred fifty (150) days prior
to the beginning of the
Peak Operating Period. The request for capacity shall be presented to the aviation supplier in a
mutually agreed upon electronic origin / destination format. The aviation supplier will reply to the
request by
providing the Postal Service with its response expressed in cubic feet one hundred twenty
(120) days prior to the start of the Peak Operating Period. The Postal Service will communicate its
acceptance of the aviation supplier’s response
ninety (90) days prior to the commencement of the
Peak Operating Period. The Postal Service acceptance establishes the Planned Capacity for the
Peak Operating Period.
	642	  	
	643	  	The Operating Period Minimum Volume for Peak will be [*] of the Planned Capacity.
	644	  	
	 645
 646
	  	The aviation supplier will guarantee space to accommodate up to 105% of the Planned Capacity from
each origin daily.
	647	  	
	648	  	
	649	  	Ordering Process - Peak - Night Network
	 650
 651
 652
 653
	  	The Peak Operating Period will consist four or five individual weeks, measured and planned as
independent of each other. One of the five weeks of the Peak Operating Period will
include the week
of Christmas. As such, the requested volume capacity will include the Christmas week. The
forecasting structure will specify each origin / destination lane pair including weight.
	654	  	
	 655
 656
 657
 658
 659
 660
 661
 662
 663
	  	For the Peak Operating Period, the Postal Service will provide the aviation supplier a request for
capacity by lane, expressed in pounds, one hundred fifty (150) days prior to
the beginning of the Peak
Operating Period. The request for capacity shall be presented to the aviation supplier in a mutually
agreed upon electronic origin / destination format. The aviation supplier will reply to the request by
providing
the Postal Service with its response expressed in pounds one hundred twenty (120) days
prior to the start of the Peak Operating Period. The Postal Service will communicate its acceptance of
the aviation supplier’s response ninety (90)
days prior to the commencement of the Peak Operating
Period. The Postal Service acceptance establishes the Planned Capacity for the Peak Operating
Period.
	664	  	
	665	  	The Operating Period Minimum Volume for Peak will be [*] of the Planned Capacity.

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	666	  	
	 667
 668
	  	The aviation supplier will guarantee space to accommodate up to 120% of the Planned Capacity from
each origin daily.
	669	  	
	670	  	
	671	  	Electronic Data Interchange (EDI)
	 672
 673
 674
 675
	  	The aviation supplier will provide status and operational data as specified in Attachment 7: Electronic
Data Interchange Service Requirements. The aviation supplier will
use the EDI methods specified in
the attachment to transmit and receive volume, and appropriate scans from its system to the Postal
Service system.
	676	  	
	677	  	
	678	  	Operational Condition Reports
	679 680	  	The aviation supplier shall submit reports of hub and Service Point operating conditions on a daily
basis for the Day Network and the Night Network.
	681	  	
	 682
 683
 684
 685
 686
	  	Some examples of these daily reports (more may be required) are: service performance reports,
operations reports for departures / arrivals late due to mechanical issues,
operations reports for
departures / arrivals late due to weather and other issues, sort mail volume , mis-sent mail volume,
surface truck utilization, etc. The format of the report and the items reported will be mutually agreed
upon by the
COR and the aviation supplier.
	687	  	
	 688
 689
	  	In addition to these daily reports, the aviation supplier will coordinate with and advise the COR of any
contingency plans to move mail delayed in transit, as soon as
practical.
	690	  	
	691	  	The table below lists the reports required initially.
	692	  	

  

					
	 Report Type
	  	 Name
	  	 Frequency

	Operational Planning	  	[*]	  	Prior to Operating Period
	Operational Planning	  	[*]	  	Prior to Operating Period
	Operational Planning	  	[*]	  	Prior to Operating Period
	Operational Planning	  	[*]	  	Prior to Operating Period
	Operational Planning	  	[*]	  	Prior to Operating Period
	Operational Planning	  	[*]	  	Monthly
	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	Monday through Friday
	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	 Monday through Friday
 Tuesday / Wednesday /

	Operational Reports	  	[*]	  	Thursday / Saturday
	Operational Reports	  	[*]	  	Monday through Thursday
	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	 Tuesday / Wednesday /
 Thursday / Saturday

	Operational Reports	  	[*]	  	Tuesday through Sunday

 

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
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	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	Monday through Friday
	Operational Reports	  	[*]	  	Monday through Friday
	Operational Reports	  	[*]	  	Daily
	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	Monday through Friday
	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	Tuesday through Sunday
	Operational Reports	  	[*]	  	Tuesday through Sunday

  

			
	693	  	
	694	  	
	695	  	Dimensional Weight Reports
	 696
 697
 698
	  	The aviation supplier will provide a weekly report electronically for the Day Network of the dimensional
weights [*]. This report will provide the following information for each
Outside Piece’s Handling Unit
D&R tag:
	699	  	 •   Time of each Handling Unit through the sort

	700	  	 •   The length of each Handling Unit

	701	  	 •   The width of each Handling Unit

	702	  	 •   The height of each Handling Unit

	703	  	 •   The D&R tag of each Handling Unit

	704	  	
	705	  	A sample of the report is below:
	706	  	
	707	  	 Sorter’, ‘Time Stamp’,‘Length’,‘Width’,‘Height’,‘D&R Tag’

	708	  	 ‘AS002’,‘10170703012011’,‘1863’,‘1663’,‘1005’,‘1GBNP673BF’

	709	  	 ‘AS002’,‘10172003012011’,‘2413’,‘1107’,‘0460’,‘1ICK9H2YF/’

	710	  	 ‘AS002’,‘10172703012011’,‘3425’,‘1911’,‘0968’,‘15HPP8W7D6’

	711	  	 ‘AS002’,‘10175003012011’,‘1864’,‘1200’,‘1149’,‘1FZFOM73BX’

	712	  	 ‘AS002’,‘10175103012011’,‘2404’,‘1153’,‘0460’,‘17MKSORVBQ’

	713	  	
	714	  	
	715	  	Scanning and Data Transmission
	 716
 717
 718
 719
	  	All scanning data required to be presented to the Postal Service shall be in an electronic format
acceptable to the Postal Service, containing all required data elements, and
reported within two (2)
hours after the occurrence of a reportable event. Available data will be transmitted in EDI message
format at fifteen (15) minute intervals.
	720	  	
	 721
 722
	  	Scanning will be used to measure performance and serve as the basis for payment for both the Day
Network and the Night Network.
	723	  	
	 724
 725
	  	Technical aspects of Electronic Data Interchange and the types of messaging events are discussed in
Attachment 7: Electronic Data Interchange Service
Requirements.
	726	  	

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	 727
 728
	  	The aviation supplier will be responsible for providing technology compatible with Postal Service
systems for purposes of sending and receiving scanning data.
	729	  	
	 730
 731
	  	The aviation supplier will be responsible for performing the following scans of D&R Tags and ULD
identification tags.
	732	  	 a.      Possession or Load Scan of all Handling Units and ULDs at origin Service Points,
including

	733	  	 Outside Handling Units

	734	  	
	735	  	 b.      Load Scan that associates the ULD to an aircraft

	736	  	
	737	  	 c.      [*]

	738	  	
	739	  	
	740	  	 d.      [*]

	741	  	
	742	  	
	743	  	
	744	  	
	745	  	
	746	  	
	747	  	
	748	  	
	749	  	
	750	  	
	751	  	
	752	  	
	753	  	
	754	  	
	755	  	
	756	  	
	757	  	
	758	  	
	759	  	
	760	  	
	761	  	
	762	  	
	763	  	
	764	  	
	765	  	
	766	  	
	767	  	
	768	  	
	769	  	
	770	  	
	771	  	
	772	  	
	773	  	 e.      [*]

	774	  	
	775	  	
	776	  	 f.       Delivery Scan of each Handling Unit and ULD at the specified delivery Service
Point.

	777	  	
	778	  	
	779	  	Performance Requirements and Measurement
	780 781	  	Mail delivery performance will be measured against the contract requirements based upon transmitted
scan data.
	782	  	
	783	  	Delivery performance requirements are:

  

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	784	  	
	785	  	 Day Network: [*]%

	786	  	
	787	  	 Night Network: [*]%

	788	  	
	789	  	 Peak Operating Period: [*]% for the Day and Night Networks

	790	  	
	791 792 793	  	Delivery performance will be measured across an Operating Period on a lane-by-lane basis, using
actual scan delivery time versus Required Delivery Time (RDT), as outlined in
Attachment 3:
Operating Plan, Day Network, and Attachment 4: Operating Plan, Night Network.
	794	  	
	795	  	Delivery performance will be measured using the following methodology:
	796	  	
	797	  	 a.      The Postal Service will scan all Handling Units at origin.

	798	  	 b.      The Postal Service will nest all Handling Units into ULDs at origin.

	799	  	 c.      The Postal Service will tender the nested ULDs to the aviation supplier at
origin.

	800	  	 d.      The aviation supplier will scan the ULDs with a Possession Scan at
origin.

	801	  	 e.      The aviation supplier will scan all Handling Units processed through the sort at the
hub.

	802	  	 f.       The aviation supplier will nest all Handling Units to ULDs departing from the
hub.

	803	  	 g.      The aviation supplier will scan the ULDs as delivered to the Postal Service upon arrival
at

	804	  	 destination.

	805	  	 h.      The Postal Service will break the ULDs and scan / de-nest all Handling
Units.

	806	  	
	807 808	  	Delivery performance will be measured for all ULDs and Handling Units receiving at least a Delivery
Scan by the aviation supplier.
	809	  	
	810 811 812 813	  	The Postal Service will provide data to the aviation supplier via electronic files. The electronic file will
show the nested date and time into the ULD, the possession time and
date from the aviation supplier,
the delivery time and date from the aviation supplier, and the de-nested break time and date from the
Postal Service. Additionally, the files will show the weights of each Handling Unit.
	814	  	
	815	  	Delivery performance on a lane level basis will be calculated as follows:
	816	  	
	817	  	
	818	  	Total on-time Handling Units, by lane, for the Operating Period, receiving a Delivery Scan
	819	  	
	820	  	Divided by
	821	  	
	822	  	Total Handling Units, by lane, for the Operating Period, receiving a Delivery Scan
	823	  	
	824	  	
	825	  	Reduction of Payment
	826 827 828 829 830	  	If the calculated delivery performance is less than the delivery performance requirement, the late D&R
tags will be ordered chronologically by the RDT. The percentage of
D&R tags corresponding to the
difference between [*]% and the delivery performance requirement (i.e., [*]% (Day Network), [*]% (Night
Network) or [*]% (Peak Operating Period)) will not be assessed a reduction in payment. The
remaining
late D&R tags will be assessed a reduction in payment as follows:
	831	  	
	832 833	  	 a.      All Handling Units delivered up to thirty (30) minutes late will be subject to a [*]%
reduction of the
Transportation Payment.

	834	  	
	835 836	  	 b.      All Handling Units delivered from thirty-one (31) minutes up to one (1) hour to late will
be
subject to a [*]% reduction of the Transportation Payment.

	837	  	
	838 839	  	 c.      All Handling Units delivered 1 hour and one minute late or later will be subject to a
[*]%
reduction of the Transportation Payment.

	840	  	

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

			
		  	

  
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	 841
 842
 843
	  	The reduction in payment will be based on a conversion of the weight of the late Handling Units to
cubic feet by the applicable contract density and will be applied at the base
or the tier in which the late
delivery occurred.
	844	  	
	845	  	
	846	  	Performance Management
	 847
 848
	  	The aviation supplier and the Postal Service will meet once a quarter (at a minimum) to discuss items
such as the following:
	849	  	
	850	  	 a.      Cost Control

	851	  	 b.      Holiday Operations and Planning

	852	  	 c.      Aviation Supplier Performance

	853	  	 d.      Peak Season Planning

	854	  	 e.      Quality

	855	  	 f.       Ramp Operations

	856	  	 g.      Reconciliation of Irregularities

	857	  	 h.      Security

	858	  	 i.       Technology Issues

	859	  	 j.       Tender and Delivery Hygiene

	860	  	 k.      Volume Planning

	861	  	 l.       Other Pertinent Topics

	862	  	
	863	  	
	864	  	Sustainability
	865	  	The aviation supplier must provide following sustainability metrics at the times specified below:
	866	  	
	 867
 868
	  	 a.      All greenhouse gas emission estimates that are attributed to the transport of Postal
Service
mail products via air and (if applicable) ground transport by the aviation supplier.

	869	  	 i.       Emissions in a standard unit – CO2e

	 870
 871
	  	 ii.      Total weight of Postal Service products contributing to the emissions in the
Calendar
Year.

	872	  	 iii.    Total air miles travelled to transport the Postal Service products per Calendar
Year.

	 873
 874
 875
 876
	  	 iv.     High level summary describing methodology which could include the basis for the
Postal
Service emissions allocation such as space, cost, weight, number of packages
or other methods used to derive numbers. For example, estimates based on gallons
used, flight characteristics, or both.

	877	  	 v.      Assurance letter of independent verification of Scope 1, 2, and 3
data.

	878	  	 •   Scope 1: Emissions arising from when the aviation supplier burns fuel in its

	879	  	 aircraft or its owned buildings

	880	  	 •   Scope 2: Emissions from purchased electricity or steam.

	 881
 882
	  	 •   Scope 3: Emissions arising from activities over which the aviation
supplier
 has less control.

	883	  	
	 884
 885
 886
	  	 b.      Fiscal Year (October through September) and Calendar Year (January through
December)
greenhouse gas emissions data to be received by the Postal Service no later than three (3)
months after the close of the fiscal and calendar year.

	887	  	
	 888
 889
 890
	  	The aviation supplier will convene a meeting with the Postal Service no later thirty (30) days after
contract award to discuss high level greenhouse gas emissions estimation
methodologies and network
boundaries.
	891	  	
	 892
 893
 894
	  	The aviation supplier will hold quarterly meetings with the Postal Service to discuss reporting
methodology developments, boundaries and notification of estimation methodology or
boundary
changes.
	895	  	
	896	  	

  
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	897	  	Security
	898	  	See Attachment 8: Investigative / Security Protocol and Guidelines.
	899	  	
	900	  	
	901	  	Postal Service Employees Allowed Access
	 902
 903
 904
 905
	  	The aviation supplier shall allow escorted Postal officials showing proper credentials access to all
buildings, field areas, ground equipment being used to sort, stage, or
transport mail under this contract
or under any subcontract services performed under this contract. Government regulations (e.g.,
Transportation Security Administration) will supersede this section.
	906	  	
	 907
 908
 909
	  	The aviation supplier will allow unescorted access to Postal Service employees stationed on the
aviation supplier’s premises pending compliance with all required processes.
Photography or
videotaping will not be permitted except as outlined in the security protocols.
	910	  	
	911	  	
	912	  	Personnel Screening
	 913
 914
 915
	  	In general, the Postal Service accepts air carrier security program requirements set forth by the
Transportation Security Administration (TSA). In addition to these, the Postal
Service also mandates
additional requirements.
	916	  	
	 917
 918
 919
	  	The Postal Service is aware that the aviation supplier must implement its human resources programs
in accordance with certain state laws and that in that respect there may be
certain deviations to the
literal application of some of the Postal Service requirements set forth herein.
	920	  	
	 921
 922
 923
 924
 925
 926
 927
 928
 929
	  	In the event the aviation supplier establishes that a state law prohibits it from requesting from its
employees or prospective employees any or all of the information requested
in responses to questions
21a through 21e of PS Form 2025, Contract Personnel Questionnaire, as required by 1.c below, or
from certifying, as the result of a criminal records check, to any of the items requested under
1.b,
Criminal History, below, the aviation supplier shall be relieved of its contractual obligation to require
employees or prospective employees to respond to the portions of those questions requesting the
prohibited information or
to provide that information as part of its criminal records check. In these
situations, the Postal Service Security Investigations Service Center (SISC) shall conduct the required
criminal checks as outlined in 1.b. below.
	930	  	
	 931
 932
 933
 934
	  	To establish the existence and the extent of the prohibitory effect of any such state law referenced
above, the aviation supplier shall provide to the SISC documentary evidence
(including a copy of the
state law) demonstrating the stated prohibition. The Postal Service’s concurrence about the
prohibitory nature of a state law shall not be unreasonably withheld.
	935	  	
	 936
 937
 938
	  	The Contracting Officer may, in consultation with the aviation supplier and the U.S. Postal Inspection
Service, grant other appropriate deviations or implement alternate
processes to the standard U.S.
Postal Inspection Service requirements by letter.
	939	  	
	940	  	Applicability
	 941
 942
 943
 944
 945
 946
	  	Individuals providing services to the Postal Service under this contract (including aviation suppliers,
employees of aviation suppliers, and subcontractors and their employees at
all levels), hereinafter,
“individuals,” who have been hired after the effective date of this contract and whose duties will or
likely may involve handing the mail must obtain a security clearance from the Postal Service,
as
provided herein. Access to the mail as defined by 3.a below is permitted as soon as the security
clearance package has been submitted to the SISC in Memphis.
	947	  	
	 948
 949
 950
	  	If the aviation supplier commences a new operation (internally or with an aviation supplier) for the
purpose of processing Postal volume, the employees hired since the effective
date of this contract will
be subject to Personnel Screening.
	951	  	
	 952
 953
	  	Access to the mail is permitted as soon as the security clearance package has been submitted to the
SISC in Memphis. If the aviation supplier has ground handling services
performed at air stops by

  
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	 954
 955
 956
 957
 958
 959
 960
	  	another aviation supplier (subcontractor), and if, to the best knowledge of the prime aviation supplier,
that subcontractor is in compliance with the provisions of this clause,
the prime aviation supplier may
certify that fact to the Contracting Officer in writing, and thereby be relieved of the primary
responsibility for personnel screening. Prime aviation suppliers are in all cases responsible for
meeting these
screening requirements for all persons having access to the mail who are their direct
employees. For example, if ABC, Inc. is an aviation supplier, and it performs ground handling services
at one or more air stops for CDE, Inc., CDE must
certify in writing that:
	961	  	
	 962
 963
 964
	  	 I certify that at the following air stops ground handling services are being performed by ABC,
and that to the best of my knowledge, ABC is an
aviation supplier of air transportation services
under contract number    . A listing of airports served by ABC is attached hereto as follows.

	965	  	
	 966
 967
	  	Aviation suppliers must have clauses in their contracts with subcontractors requiring adherence to the
Postal Service screening procedures contained in this
contract.
	968	  	
	 969
 970
 971
 972
 973
 974
 975
	  	 1.      Requirements: The aviation supplier, when employing individuals who will or are
likely to
handle the mail in the performance of their duties under this contract, must provide the
following documentation as early as possible to the Security Investigations Services Center
(SISC), 225 N. Humphreys Blvd., 4th floor, Memphis, Tennessee, 38161-0001 for those
individual
aviation supplier employees who will or are likely to handle the mail in the
performance of their duties. (Form can be obtained by calling the SISC at (901) 747-7712 or
by email at Meg@uspis.gov.)

	 976
 977
 978
 979
	  	 The items listed in sub-sections 1 through 4 and a through c below must be completed prior to
the employee being granted permission to handle mail.
For purposes of this requirement, the
term “completed” means that all tasks have been done, and the required submissions to the
SISC in Memphis have been made.

	980	  	
	 981
 982
	  	 1.      Completed PS Form 2181-C. This form must be dated within 90 days of receipt by
the
SISC.

	983	  	
	 984
 985
 986
	  	 2.      PS Form 2025. Each item on the PS Form 2025 must be addressed. Applicants
must
provide their complete residential address, including city, state, and ZIP+4. The
form must be signed and dated by the applicant within 90 days of receipt by the SISC.

	987	  	
	 988
 989
 990
 991
 992
 993
 994
	  	 3.      The aviation supplier must obtain and provide to the SISC two original fingerprint
cards
(FD-258) for each applicant. The signature of the applicant and the individual
taking the prints must be on each FD-258. In lieu of submitting fingerprint cards, a
FBI rap sheet may be submitted, provided it is dated within 90 days of receipt
by the
SISC. The Postal Inspection Service will provide additional fingerprint cards for
aviation supplier use. These additional forms may be obtained by calling the
Memphis office at (901) 747-7712 or via email at
Meg@uspis.gov

	995	  	
	 996
 997
 998
 999
	  	 4.      Certification and Transmittal Cover Sheet documenting Criminal History records check
as
required by subsection (b) below. The Certification and Transmittal cover sheet
must include the administrative officer’s name, telephone number, facility name, email
address and mailing address.

	1000	  	
	 1001
 1002
	  	 The aviation supplier is required to maintain all certifications required in sections a., b., and c
for the length of the
contract.

	1003	  	
	 1004
 1005
 1006
 1007
 1008
 1009
 1010
	  	 a.      Drug Screening: The aviation supplier must certify that individuals providing
service
under this contract have passed a screening test for those substances identified by the
Substance Abuse and Mental Health Services Administration (SAMHSA) as the five (5)
most abused substances which are cocaine, marijuana,
amphetamine /
methamphetamine, opiates, and phencyclidine (PCP). The tests must be performed by a
SAMHSA approved certified laboratory. The drug test must meet the cut-off levels
established by SAMHSA. All drug screening tests must be
completed within ninety (90)

  
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	 1011
 1012
 1013
 1014
 1015
	  	 days prior to having access to the mail since drug tests older than ninety (90) days are
invalid and must be redone. The prime aviation suppliers
and all subcontractors must
maintain the name of the institution conducting the test and a document indicating if the
employee passed or tested positive.

	 1016
 1017
 1018
 1019
 1020
 1021
	  	 b.      Criminal History: The aviation supplier must certify, based upon a criminal
records
check (a state records check) of each employee through local agencies (state, county, or
city) where the applicant has resided and worked for the past five (5) years (this may
require multiple checks for applicants who live in one
location and work in another
location, or for applicants who have moved within that time period), that each individual:

	 1022
 1023
	  	 i.       Has not been convicted of a felony criminal violation in the past five (5)
years;

	 1024
 1025
 1026
 1027
	  	 ii.      Has not been convicted of serious criminal charges (e.g. murder, rape,
robbery,
burglary, physical assaults, weapons violations, or drug charges [felony or
misdemeanor]);

	 1028
 1029
	  	 iii.    Does not have any pending felony or serious criminal charges; and

	 1030
 1031
	  	 iv.     Is not on parole for or probation for any felony or serious criminal
charges.

	 1032
 1033
 1034
 1035
	  	 This will be documented on the Certification and Transmittal Cover Sheet. This form is
provided under Personnel Security Administrative
Instructions, and may be reproduced by
the aviation supplier.

	 1036
 1037
 1038
 1039
 1040
	  	 c.      Citizenship: Certification of U.S. citizenship must be documented on PS Form
2025,
Contract Personnel Questionnaire, or legal work status authorizing the individual to work
in the United States is required. (I-9 Form, Employment Eligibility Verification, is to be
used for
non-citizens).

	1041	  	 2.      Processing:

	 1042
 1043
 1044
 1045
 1046
 1047
	  	 a.      The Postal Service agrees to use reasonable efforts to insure that security
clearance
decisions are issued within thirty (30) days after the aviation supplier submits the required
documents and information to the SISC. The Postal Service, however, cannot guarantee
that processing will be complete within thirty (30)
days due to circumstances beyond its
control.

	 1048
 1049
	  	 b.      For each individual employed by the aviation supplier or any subcontractor, the
aviation
supplier will submit to the SISC:

	 1050
 1051
 1052
 1053
 1054
 1055
 1056
	  	 •   Full name

•   Social security number

•   Drug screening data (1.a)

•   Criminal history certifications (1.b)

•   Both sets of fingerprints (1.c)

•   Citizenship certifications (1.d)

	 1057
 1058
 1059
 1060
 1061
	  	 Upon receipt of the required documentation, the SISC will submit the fingerprint cards
(1.c) to the Federal Bureau of Investigation, and perform a
search of the National Crime
Information Center (NCIC) Wants and Warrants and Inspection Service databases at its
cost.

	 1062
 1063
 1064
 1065
	  	 c.      In cases where an individual business entity is predominant at a given airport,
the
Contracting Officer in consultation with the Inspection Service may approve the receipt of
screening documents from that entity.

	 1066
 1067
	  	 d.      The aviation supplier shall maintain supporting documentation for the drug
screening
(1.a), criminal history inquiries (1.b), and citizenship verifications (1.d) subject to review by

  
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	 1068
 1069
 1070
	  	 the Postal Service, for the life of this contract in accordance with its internal procedures,
advising the Inspection Service SISC on the
Certification and Transmittal Cover Sheet.

	 1071
 1072
 1073
 1074
 1075
	  	 At the employee’s local station, aviation suppliers are only required to maintain a copy of
the Certification and Transmittal Cover Sheet. The
Certification and Transmittal Cover
Sheet is provided under Personnel Security Administrative Instructions and may be
reproduced by the aviation supplier, as needed.

	 1076
 1077
 1078
	  	 Aviation suppliers currently maintaining security screening files under existing Postal
Service contracts shall continue to maintain those
files.

	 1079
 1080
	  	 Submit all forms and certifications to:

	 1081
 1082
 1083
 1084
 1085
 1086
	  	 Memphis SISC
 Security Investigations Service Center
 225 North Humphreys
Boulevard
 Fourth Floor, South
 Memphis, TN 38161-0008

	 1087
 1088
 1089
 1090
 1091
 1092
	  	 The Postal Service intends to make its best efforts to position itself to eliminate the
requirement for its set of FD-258 forms, and other
submissions to be determined, through
cooperation with the Federal Aviation Administration, Transportation Security
Administration, and other agencies or associations to share relevant information for its
regulatory
purposes.

	1093	  	 3.      Access to the Mail – Screening Requirements:

	 1094
 1095
 1096
 1097
 1098
 1099
 1100
 1101
 1102
	  	 “Access to the mail” refers to individuals who scan, transport, sort, load, and unload mail to
and from ground equipment and to and from
the aircraft. This includes employees handling
sealed ULDs. This includes individuals who have direct supervisory duties in directing the
transporting, sorting, loading, and unloading of mail to and from ground equipment and
aircraft.
Individuals providing services to the Postal Service under this contract (including
aviation suppliers, employees of aviation suppliers, and subcontractors and their employees at
any tier), hereinafter, “individuals,” who have access
to the mail, must obtain a security
clearance from the Postal Service before such access to the mail is granted.

	1103	  	 4.      Denial:

	 1104
 1105
 1106
	  	 Persons who meet the following criteria are not permitted to have access to the mail under this
contract:

	 1107
 1108
 1109
 1110
	  	 a.      An aviation supplier, subcontractor, or employee of an aviation supplier or
subcontractor
who has not received a security screening in accordance with the criteria listed above
under Personnel Screening.

	 1111
 1112
 1113
 1114
 1115
	  	 b.      An aviation supplier, subcontractor, or employee of an aviation supplier or
subcontractor
who has been convicted of, or is on probation or parole for, or under suspended sentence
for assault, theft, or weapons charges or for the illegal use, possession, sale, or transfer of
controlled substances during the past
five (5) years.

	 1116
 1117
 1118
 1119
 1120
	  	 c.      An aviation supplier, subcontractor, or employee of an aviation supplier or
subcontractor
who has been convicted of any criminal felony violation during the past five (5) years, who
is on parole, probation, or suspended sentence for commission of a criminal felony during
the past five (5)
years.

	 1121
 1122
 1123
	  	 d.      An aviation supplier, subcontractor, or employee of an aviation supplier or
subcontractor
who has ever been convicted of theft of mail or other Postal offense.

  
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	 1124
 1125
 1126
	  	 e.      An aviation supplier, subcontractor, or employee of an aviation supplier or
subcontractor
who has an active warrant or is on probation or is on parole.

	 1127
 1128
 1129
	  	 f.       An aviation supplier, subcontractor, or employee of an aviation supplier or
subcontractor
who has any pending felony or serious criminal charges.

	 1130
 1131
 1132
	  	 g.      Any other circumstance that in the determination of the Postal Service makes
the
individual unfit to provide services under this contract.

	 1133
 1134
 1135
	  	 In the event an employee is disqualified under the above criteria, the aviation supplier has the
responsibility to insure that the employee’s
duties no longer involve handling mail.

	1136	  	 5.      Appeal Process:

	 1137
 1138
 1139
 1140
 1141
	  	 An individual may appeal a decision to deny access made by the Postal Inspection Service
SISC by sending a letter to the Inspector In Charge,
Security and Crime Prevention,
Washington, DC, within three (3) weeks of the date of the denial letter. An individual may not
handle the mail during the appeal process. The letter must contain the following information:

	 1142
 1143
 1144
	  	 a.      A statement that reconsideration of the decision is requested and the basis on which it
is
sought.

	 1145
 1146
	  	 b.      Additional information on the appellant’s behalf.

	 1147
 1148
	  	 c.      A copy of the denial letter.

	 1149
 1150
 1151
 1152
 1153
	  	 6.      Training: The Postal Service may, but is not required to, provide orientation /
training for
aviation suppliers during the term of this contract to clarify security clearance requirements,
processes, and procedures necessary to fully implement this program.

	 1154
 1155
	  	Payment Procedures
	1156	  	Rates and Payment General
	 1157
 1158
 1159
 1160
	  	The aviation supplier will be compensated based upon properly scanned ULDs and Handling Units.
The payment for each ULD and Handling Unit will be based on the network (i.e., Day
or Night)
to which the mail is assigned by the Postal Service. This process will allow for automated payment.
	 1161
 1162
 1163
 1164
 1165
	  	[*]
	1166	  	Scan Requirements
	 1167
 1168
	  	All scan requirements listed below are specified in the Scanning and Data Transmission section.
	1169	  	Night Turn Scan Requirements
	 1170
 1171
	  	 a.      Possession Scan of all ULDs and Handling Units at the origin

	 1172
 1173
	  	 b.      Delivery Scan of all ULDs and Handling Units delivered at destination

	1174	  	Day Turn Scan Requirements
	 1175
 1176
 1177
	  	 a.      The aviation supplier will conduct a Possession Scan of all ULDs and Handling Units at
the
origin.

	 1178
 1179
 1180
	  	 b.      The aviation supplier will conduct a Nest Scan associating the Handling Unit with a ULD at
the
hub.

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	 1181
 1182
 1183
	  	 c.      The aviation supplier will conduct a Delivery Scan of all ULDs and Handling Units delivered
at
destination.

	 1184
 1185
 1186
 1187
	  	The Hub Sort Scans will be paid in accordance with the pricing listed in Attachment 10: Pricing for
Handling Units sorted at the hub on the Day Network for which scans are
provided. Hub Sort Scans
will not be paid for Handling Units assigned to a Bypass ULD or for the Night Network.
	 1188
 1189
 1190
 1191
 1192
 1193
	  	[*]
	 1194
 1195
 1196
 1197
 1198
	  	The base and tier pricing from Attachment 10: Pricing will be applied to the volume measured in each
Operating Period as follows. Volume within the base will be paid at
the Base Rate. The portion of
volume exceeding the base volume and falling within the Tier 1 volume will be paid at the Tier 1 rate.
A similar incremental process will be applied to volume that falls within subsequent tiers.
	 1199
 1200
	  	Payments will be made by Electronic Funds Transfer (EFT).
	 1201
 1202
 1203
 1204
	  	[*]
	 1205
 1206
 1207
 1208
 1209
 1210
	  	The aviation supplier will bill additional charges not covered within the automated payments system on
a weekly basis. For correct and sufficient invoices received by noon
Wednesday of a given week, the
Postal Service will process them so as to generate a payment by Wednesday, three (3) weeks
following the receipt of the invoice through the EFT process.
	 1211
 1212
	  	Payment Processing - Day Network - Per Cube
	1213	  	Invoicing
	 1214
 1215
 1216
	  	All invoices for the transportation of Handling Units or ULDs under this contract will be paid by the
cubic foot and payment will be based on completing the required
scans.
	1217	  	Mail Tendered in ULDs
	 1218
 1219
 1220
 1221
	  	The Line Haul rate for each ULD will be comprised of two components: Non-Fuel Line Haul and Fuel
Line Haul. The Non-Fuel Line Haul rate will include all of the transportation and
handling associated
with a ULD. Hub Sort Scanning rates are separate from the Non-Fuel Line Haul rate.
	 1222
 1223
 1224
	  	ULD cubic feet will be paid at the agreed cubic feet size for each ULD type described in Attachment
10: Pricing.
	 1225
 1226
 1227
 1228
	  	The cubic feet paid will be based on the Postal assigned ULD type. If the Postal ULD type is missing,
the aviation supplier’s ULD type will be used for invoicing. Any
discrepancies between the types of
ULD processed will be resolved during the Reconciliation Process.
	 1229
 1230
 1231
 1232
 1233
	  	The transportation payment for mixed ULDs will be based on the applicable cubic feet of the
originating ULD. These transportation payments will be reduced for Handling Units not
receiving a
Delivery Scan by converting the weight of the Handling Units without a Delivery Scan at the correct
destination to cubic feet by the applicable contract density.
	 1234
 1235
 1236
 1237
	  	The transportation payment for bypass ULDs will be based on the applicable cubic feet of the
originating ULD. These transportation payments will not be made for Bypass ULDs
without a Delivery
Scan at the correct destination.

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	 1238
 1239
 1240
 1241
 1242
 1243
	  	Recognizing operational inefficiencies filling the last ULD at every location, the Postal Service will
incorporate within the daily invoice a daily credit based on the total
cubic feet of the mixed ULDs in the
Operating Plan divided by the total number of mixed ULDs in the Operating Plan for each origin air
stop per day multiplied by 50%. The rate used will be the applicable base or tier cubic foot rate used
at
the beginning of the invoice day.
	1244	  	Mail Tendered from Surface Trucks
	 1245
 1246
 1247
 1248
 1249
	  	If mail is tendered to the aviation supplier from a defined truck location as identified in Attachments 3
and 4 at contract award, the invoiced cubic feet will be
calculated by dividing the Handling Unit’s
Postal Service assigned rounded weight by the applicable contract density.
	1250	  	Mail Tendered from Ad Hoc Trucks into the Aviation Supplier Hub
	 1251
 1252
 1253
 1254
 1255
	  	The aviation supplier will accept ad hoc trucks from the Postal Service at the proposed hub locations.
The invoiced cubic feet for ad hoc trucks will be calculated by dividing
the Handling Unit’s Postal
Service assigned rounded weight by the applicable contract density. The Postal Service will
incorporate ad hoc truck payments in the weekly electronic payment.
	1256	  	Aviation Supplier Surface Transportation – Not Included in the Transportation Payment
	 1257
 1258
 1259
 1260
	  	The aviation supplier will include a separate rate per mile for Highway Transportation in Attachment
10: Pricing which will be applied when the Postal Service requires the
aviation supplier to operate
unplanned surface transportation of mail.
	1261	  	Hub Sort Scan Charge
	 1262
 1263
 1264
 1265
	  	The Postal Service will pay a Hub Sort Scan charge for mail sorted and scanned at a hub per Handling
Unit (i.e., D&R Tag) as shown in Attachment 10: Pricing. This rate
will not be subject to an increase
for the full term of the contract.
	 1266
 1267
 1268
 1269
	  	Handling Units sorted at a hub must receive a Hub Sort Scan for payment purposes. The Postal
Service will not pay a Hub Sort Scan charge for sorts not supported by EDI scan
information. The
pieces scanned into a tendered Bypass container are not eligible to receive Hub Sort Scan charges.
	1270	  	Re-Labeling Charge
	 1271
 1272
 1273
 1274
 1275
	  	The Postal Service will pay an additional charge to the aviation supplier for re-labeling Postal Service
Handling Units at the hub for which the D&R tag is missing or becomes
illegible. The Postal Service
will also provide all equipment necessary to perform this function. The re-labeling charge per Handling
Unit is shown in Attachment 10: Pricing.
	 1276
 1277
	  	This rate will not be subject to an increase for the full term of the contract.
	 1278
 1279
 1280
 1281
 1282
 1283
	  	Payment to the aviation supplier for the transport of re-labeled Handling Units will be based upon data
received from the Hub Scan plus (combined and matched with) the Delivery
Scan for the Handling
Unit. An average weight per Handling Unit will be established based upon the previous month’s data
for average weight per Handling Unit, and for Handling Units that are not properly scanned due to
conditions
beyond the aviation supplier’s control.
	 1284
 1285
	  	The average weight process is detailed in Attachment 15, Average Weights.
	 1286
 1287
 1288
 1289
 1290
 1291
 1292
	  	The equipment to be supplied by the Postal Service for this function will be listed in Attachment 6:
Postal Furnished Property, and will be covered by Clause 2-22,
Postal Service Property. Attachment
6: Postal Furnished Property will be created upon successful installation of the equipment. Upon
reasonable advance notice to the aviation supplier, the Postal Service shall be permitted to
perform
maintenance on any of the equipment located in an aviation supplier’s facility listed in Attachment 6:
Postal Service Furnished Property.
	 1293
 1294
	  	The Re-Labeling Process is described in Attachment 16, Re-labeling / Type M Matching Process.

  
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	1295	  	Fuel Adjustment
	 1296
 1297
 1298
 1299
 1300
	  	There will be a monthly fuel adjustment to the Fuel Line Haul rate. Each “month” is defined in
Attachment 1: Postal Service Operating Periods. The adjustment
will become effective on the first
operating day of each operating period after contract commencement. The adjustment may be
upward or downward.
	 1301
 1302
 1303
 1304
	  	The adjustment will be based on the U.S. Gulf Coast (USGC) prices for Kerosene-type jet fuel
reported by the U.S. Department of Energy for the month that is two (2) months prior
to the
adjustment. The adjustment will be calculated and applied monthly.
	 1305
 1306
 1307
 1308
	  	For example, assume the Fuel Line Haul rate is $0.10. If the June 20XX USGC price for Kerosene-
type jet fuel is $2.68 per gallon and the July 20XX price is $3.00 per gallon,
then the adjustment for
September XX would be calculated as follows:
	1309	  	 ($3.00 / $2.68) = 1.12

	 1310
 1311
	  	 1.12 x $0.10 = $0.11

	 1312
 1313
	  	The new Fuel Line Haul rate would be $0.11 per cubic foot.
	 1314
 1315
 1316
	  	In August 20XX, if the USGC price is $2.70 per gallon, the calculation for the October 20XX rate would
be:
	1317	  	 ($2.70 / $3.00) = 0.90

	 1318
 1319
	  	 0.90 X $0.11 = $0.10 per cubic foot

	 1320
 1321
	  	This calculation will be rounded after the decimal to four digits.
	 1322
 1323
 1324
	  	The proposal pricing should be based on the August 2012 U.S. Gulf Coast Kerosene-type jet fuel
reported by the U.S. Department of Energy ($3.156 per gallon).
	 1325
 1326
 1327
 1328
	  	Fuel will be adjusted for October 2013 based on the August 2013 U.S. Gulf Coast Kerosene-type jet
fuel reported by the U.S. Department of Energy.
	 1329
 1330
	  	Payment Processing - Night Network - Per Pound
	1331	  	Invoicing
	 1332
 1333
 1334
 1335
 1336
 1337
	  	All Handling Units tendered to the aviation supplier for the Night Network will be paid by the pound and
payment will be based on required scanning. The weight will be derived
from the assigned rounded
weight of the Handling Unit. The Non-Fuel Line Haul rate will include all of the transportation and
handling associated with a Handling Unit. The Fuel Line Haul rate for the Night Network will not be
subject to a
fuel adjustment.
	1338	  	Re-Labeling Charge
	 1339
 1340
 1341
 1342
 1343
 1344
	  	The Postal Service will pay an additional charge to the aviation supplier for re-labeling Postal Service
Handling Units for which the D&R tag is missing or becomes illegible.
The Postal Service will also
provide all equipment necessary to perform this function. The re-labeling charge per Handling Unit is
shown in Attachment 10: Pricing. This rate will not be subject to an increase for the full term of
the
contract.
	 1345
 1346
 1347
 1348
 1349
 1350
	  	Payment to the aviation supplier for transport of re-labeled Handling Units will be based upon data
received from the Hub Scan plus (combined and matched with) the Delivery Scan
for the Handling
Unit. An average weight per Handling Unit will be established based upon the previous month’s data
for average weight per Handling Unit and for Handling Units that are not properly scanned due to
conditions beyond the
aviation supplier’s control.

  
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	 1351
 1352
 1353
 1354
 1355
 1356
	  	The equipment to be supplied by the Postal Service for this function will be listed in Attachment 6:
Postal Furnished Property, and will be covered by Clause 2-22,
Postal Service Property. Attachment
6 will be created upon successful installation of the equipment. Upon reasonable advance notice to
the aviation supplier, the Postal Service shall be permitted to perform maintenance on any of
the
equipment located in an aviation supplier’s facility listed in Attachment 6.
	 1357
 1358
 1359
 1360
 1361
 1362
	  	The payment for the Night Network re-labeled Handling Units will be adjusted to reflect the percentage
of re-labeled Handling Units that have already been scanned. This
percentage of previously scanned
Handling Units will be mutually agreed upon by the Postal Service and the aviation supplier through an
audit sampling of re-labeled Handling Units. Contingency Handling Units are excluded from
this
adjustment.
	 1363
 1364
 1365
	  	The average weight process is detailed in Attachment 15, Average Weights.
	1366	  	Reconciliation Process
	 1367
 1368
 1369
 1370
 1371
 1372
	  	Reconciliation of scanning and payment records between the Postal Service and the aviation supplier
will be conducted in a scheduled meeting attended by the Postal Service and
the aviation supplier on
an Operating Period basis not more than ninety (90) days after the close of an Operating Period, or a
time frame as agreed mutually by the parties. The following procedures will be observed for the
reconciliation
process:
	 1373
 1374
 1375
 1376
	  	 a.      All data exchanges between the aviation supplier and the Postal Service for the
reconciliation
process will be performed electronically and sent to specified mailboxes operated by each
organization. Each file will have an individually specified transmission interval.

	 1377
 1378
 1379
 1380
	  	 b.      For all files exchanged between the aviation supplier and the Postal Service, any changes
to
layout or data definition must be communicated to the receiving party at a minimum of sixty
(60) calendar days prior to implementation, or sooner if mutually agreed.

	 1381
 1382
	  	 c.      All file transfers must adhere to Postal Service Security and Privacy
rules.

	 1383
 1384
	  	 d.      Supplemental Charges / Assessments may be assessed each Operating Period. The
charges
shall include but not be limited to the following:

	1385	  	 i.       Operating Period Volume Minimum and Contract Volume Minimum

	 1386
 1387
	  	 ii.      Non-achievement of performance standards

	 1388
 1389
 1390
 1391
 1392
 1393
	  	 e.      Once the parties have mutually agreed on the Operating Period reconciliation, both
parties
agree that neither can re-open the Operating Period for further adjustments. By mutually
agreeing to the Operating Period reconciliation, the parties thereby agree to waive their right
to pursue a claim under the Contract Disputes
Act based upon the Operating Period
reconciliation.

	 1394
 1395
 1396
 1397
 1398
	  	In the event there is a catastrophic equipment or information system failure, the aviation supplier will
provide electronic files to the Postal Service identifying all D&R
Tags the aviation supplier scanned
that were lost. The aviation supplier will notify the Contracting Officer and the COR as soon as the
aviation supplier becomes aware of such a failure.
	 1399
 1400
 1401
 1402
	  	If the Postal Service cannot produce D&R Tags, an emergency contingency will be developed and
implemented. Such a plan will include specifications for operational and
information technology
issues, as well as payment.

  
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	 1403
 1404
 1405
	  	Part 3: Contract Clauses
	1406	  	Clause B-1: Definitions (March 2006) (Tailored)
	 1407
 1408
	  	For purposes of this Contract, the following terms shall have the following meanings:
	 1409
 1410
 1411
 1412
 1413
	  	 1.      Acceptable Dangerous Goods and Acceptable Hazardous Material: Those articles
or
substances which satisfy the air transportation requirements for the transportation of
Hazardous Goods set forth in Chapter 601.10.0 of the Domestic Mail Manual and which are
not required by applicable federal regulation to be accessible
to crew members during flight.

	 1414
 1415
 1416
 1417
 1418
 1419
 1420
	  	 2.      Advertisement: A free or paid mass or targeted communication under the control of a
party
intended for the general public or a specific potential or existing customer, the ultimate
purpose of which is to promote the sale of such party’s products or services, including, but not
limited to, television, radio and
internet commercials, out-of-home ads (e.g., billboards, sports
stadium displays, transit signs), direct mail ads, print ads and free standing inserts in
newspapers, magazines, and electronic media.

	 1421
 1422
 1423
 1424
	  	 3.      All Mail Due Aviation Supplier: A designated time predetermined when the Postal
Service
provides all mail to the aviation supplier as shown in Attachments 3: Operating Plan, Day
Network, and Attachment 4: Operating Plan, Night Network

	 1425
 1426
 1427
	  	 4.      Aviation Supplier: The person or persons, partnership, or corporation named that has
been
awarded the contract.

	 1428
 1429
 1430
 1431
	  	 5.      Bypass Container: A ULD of mail designated for delivery to destination Service Point
on the
network which is transferred directly from one aircraft to another without going through the sort
operation.

	 1432
 1433
 1434
	  	 6.      Con-Con: (Convoy and Conveyance) The concentration in a container of Registered Mail
for
single, daily, daylight, or authorized night air dispatch

	 1435
 1436
 1437
 1438
	  	 7.      Contract Volume Minimum: The volume (in cubic feet) per operational day,
averaged
across six (6) days per week, and measured across each Operating Period that is guaranteed
by the Postal Service for the Day Network

	 1439
 1440
 1441
 1442
 1443
	  	 8.      Contracting Officer: The person executing this contract on behalf of the Postal
Service and
any other officer or employee who is a properly designated Contracting Officer; the term
includes, except as otherwise provided in the contract, the authorized representative of a
Contracting Officer acting within the limits of
the authority conferred upon that person.

	 1444
 1445
 1446
	  	 9.      Contracting Officer’s Representative (COR): A person who acts within the limits
of
authority delegated by the Contracting Officer.

	 1447
 1448
 1449
 1450
	  	 10.    Contingency Handling Units: Handling Units entered into the transportation network
without
an appropriate D&R tag. These Handling Units are subsequently processed at the aviation
supplier’s hub through the re-labeling process.

	 1451
 1452
 1453
 1454
 1455
 1456
	  	 11.    Dangerous Goods (Hazardous Material): Articles or substances which are capable of
posing a
significant risk to health, safety or to property when transported by air and which are
classified according to Section 3 (Classification) of the International Air Transport Association
(IATA) Dangerous Good Regulations, regardless of
variations, exceptions, exemptions, or
limited quantity allowances.

	 1457
 1458
	  	 12.    Day Network: Planned network that operates Tuesday through Sunday primarily for
the
transportation of the Priority and First Class Mail.

  
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	 1459
 1460

1461
 1462
	  	  

13.    Delivery: The hand-off, at a destination Service Point, of all mail to
the Postal Service in
accordance with contract requirements.

	 1463
 1464

1465
	  	 14.    Delivery Scan: A scan performed by the aviation supplier that indicates that the
aviation
supplier has tendered volume to the Postal Service.

	 1466
 1467

1468
	  	 15.    D&R (Dispatch and Routing) Tag: Bar coded tag that identifies the origin and
destination
airports, mail class, Handling Unit weight, and the assigned network air carrier.

	 1469
 1470

1471
	  	 16.    Exception Sort Scan: A Hub Scan performed on mail Handling Units that require
re-labeling
due to a missing or unreadable D&R tag.

	 1472
 1473
	  	 17.    Express Mail: As defined in the U.S. Postal Service Domestic Mail Manual.

	 1474
 1475
	  	 18.    Failure to Load: A failure to accept and load mail as specified in the
contract.

	 1476
 1477

1478
	  	 19.    Failure to Protect: Is a failure to protect and safeguard mail from depredation,
rifling,
inclement weather, mistreatment, or other hazard while in the aviation supplier’s control.

	 1479
 1480

1481
 1482
	  	 20.    Failure to Protect Postal Service Equipment: A failure to protect, return or
safeguard
Postal Service provided equipment. This includes MTE and Postal provided scanning
equipment (if supplied by the Postal Service).

	 1483
 1484
	  	 21.    First-Class Mail: As defined in the U.S. Postal Service Domestic Mail
Manual.

	 1485
 1486

1487
 1488
	  	 22.    Feeder: An aircraft normally used for local transport (for carriage of cargo and / or
containers)
to and from locations not scheduled to be serviced by primary aircraft from a hub, directly
connecting these locations to a hub.

	 1489
 1490

1491
	  	 23.    Ground Handling: Handling of mail, including unloading of mail from aircraft or
ground
vehicles, drayage, staging of mail, and loading of mail on receiving aircraft or ground vehicles.

	 1492
 1493

1494
	  	 24.    Handling Unit: A piece of mail (an outside) or a receptacle (such as loose sacks,
pouches,
trays, flat tubs) that contains multiple pieces of mail which is individually processed.

	 1495
 1496

1497
	  	 25.    Hub: A central sort facility that supports multiple markets via air and ground networks on
a
regional or national level by means of connecting flights and ground transportation.

	 1498
 1499
	  	 26.    Hub Sort Scan: A scan performed by the aviation supplier at a hub
location.

	 1500
 1501
	  	 27.    Line Haul: Transporting mail by air between origin and destination
locations.

	 1502
 1503

1504
	  	 28.    Live Animals: Animals accepted by the Postal Service in accordance with Chapter 601.9.3
of
the Domestic Mail Manual.

	 1505
 1506

1507
 1508
	  	 29.    Mail: Product that carries U.S. postage and the receptacles in which it is tendered
for
transportation. The term includes supplies and empty mail transportation equipment of the
U.S. Postal Service.

	 1509
 1510

1511
	  	 30.    Mail Bags: Postal Service bags which are used by the Postal Service in the transportation
of
mail.

	 1512
 1513

1514
 1515
	  	 31.    Mis-delivered: Any mail delivered to the wrong destination. This includes, but is not
limited
to, mail placed in the wrong ULD, ULDs loaded onto an incorrect flight or truck, and ULDs
incorrectly placarded.

  
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	 1516
 1517
 1518
	  	 32.    Mixed Container: A Unit Load Device (ULD) containing mail for multiple destinations
that
requires sortation at the aviation supplier hub.

	 1519
 1520
	  	 33.    Nest Scan: The scan that associates the Handling Unit with the ULD (air
container).

	 1521
 1522
 1523
	  	 34.    Night Network: Planned network that operates Monday through Friday, primarily for
the
transportation of Express Mail.

	 1524
 1525
 1526
	  	 35.    Operating Period: A scheduled period ranging from four (4) to five (5) weeks as
agreed
between the Postal Service and aviation supplier.

	 1527
 1528
 1529
	  	 36.    Operating Period Volume Minimum: The volume minimum resulting from the Planned
Capacity
established through the Ordering Process for the Day and Night Networks.

	 1530
 1531
	  	 37.    Overflow Mail: Mail that is tendered in excess of the Planned Capacity.

	 1532
 1533
 1534
 1535
	  	 38.    Outsides: Individual mail piece, with dimensions no greater than 108 inches in
combined
length and girth and with no single dimension greater than 84 inches which is not otherwise
containerized and must be processed as a Handling Unit.

	 1536
 1537
 1538
	  	 39.    Package: Any box or envelope that is accepted by the Postal Service for delivery to
a
consignee.

	 1539
 1540
 1541
	  	 40.    Payment Week: The period each week of an Operating Period between 00:00 Saturday and
23:59
Friday.

	 1542
 1543
	  	 41.    Perishables: Those items which are susceptible to decay, spoilage or
destruction.

	 1544
 1545
 1546
	  	 42.    Planned Capacity: Volume that the parties have agreed to by way of the Ordering Process
for
the Day and Night Networks.

	 1547
 1548
 1549
	  	 43.    Possession Scan: A scan performed by the aviation supplier that indicates the
aviation
supplier has accepted the volume from the Postal Service.

	 1550
 1551
 1552
	  	 44.    Priority Mail: Priority Mail and First-Class zone rated (Priority) mail as defined in the
U.S.
Postal Service Domestic Mail Manual, Chapter 3, Section 314.

	 1553
 1554
 1555
 1556
 1557
 1558
 1559
	  	 45.    Registered Mail: A mail piece which is mailed in accordance with the requirements of
Chapter
501.2.0 of the Domestic Mail Manual. Registered Mail provides added protection for
valuable or important mail. Registered Mail provides a receipt to the sender, special security
between shipment points, a record of acceptance and delivery
maintained by the Postal
Service and, at the option of the mailer and for an additional fee, indemnity in case of loss or
damage.

	 1560
 1561
	  	 46.    Re-Possessed: Regain possession of assigned mail.

	 1562
 1563
 1564
 1565
	  	 47.    Required Delivery Time (RDT): The latest delivery time to the Postal Service as indicated
in
Attachment 3: Operating Plan, Day Network, and Attachment 4: Operating Plan, Night
Network.

	 1566
 1567
 1568
 1569
	  	 48.    Service Point: The physical location at which the aviation supplier must hand-off mail to
the
Postal Service or its duly appointed agent as specified in Attachment 3: Operating Plan, Day
Network, and Attachment 4: Operating Plan, Night Network.

	 1570
 1571
 1572
	  	 49.    Tender: The drop-off, at an origin Service Point, of mail assigned by the Postal Service to
the
aviation supplier.

  
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	 1573
 1574
 1575
	  	 50.    Tender Point: The physical location at which the Postal Service or its duly appointed
agent
provides mail to the aviation supplier.

	 1576
 1577
 1578
	  	 51.    Tender Time: The latest time at which the aviation supplier is required to accept mail
from
the Postal Service at an origin Service Point in accordance with contract requirements.

	 1579
 1580
 1581
	  	 52.    Terminal Handling: The receipt, scanning, sorting, delivery and / or tug and
dolly
transportation of mail tendered under this contract.

	 1582
 1583
 1584
	  	 53.    Trans Log File: The Postal Service data file that contains, for each D&R Tag, the
actual
weight, origin, and destination market for each Handling Unit.

	1585	  	 54.    Transportation Payment:: Four items are included in the Transportation
Payment:

	1586	  	 a.      Non-Fuel Line Haul

	1587	  	 b.      Fuel Line Haul

	1588	  	 c.      Aircraft Ground Handling

	 1589
 1590
	  	 d.      Scanning

	 1591
 1592
	  	 55.    Trucking Location: Those Service Points to which mail volume is transported via
highway.

	 1593
 1594
 1595
	  	 56.    Unit Load Device (ULD): Airline container or pallet provided by the aviation
supplier

	1596	  	Clause B-3: Contract Type (March 2006) (Tailored)
	 1597
 1598
 1599
	  	This Contract is a fixed-price, indefinite quantity with adjustments contract for the purchase of
commercial services pursuant to 39 Code of Federal Regulations, Part 601 et
seq.
	 1600
 1601
 1602
	  	This is not a requirements-type contract.
	1603	  	Clause B-9: Claims and Disputes (March 2006) (Tailored)
	 1604
 1605
 1606
	  	 a.      This contract is subject to the Contract Disputes Act of 1978 (41 U.S.C. 601-613)
(“the Act” or
“CDA”).

	 1607
 1608
 1609
	  	 b.      Except as provided in the Act, all disputes arising under or relating to this contract must
be
resolved under this clause.

	 1610
 1611
 1612
 1613
 1614
 1615
 1616
 1617
 1618
 1619
 1620
	  	 c.      “Claim,” as used in this clause, means a written demand or written assertion by
one of the
contracting parties seeking, as a matter of right, the payment of money in a sum certain, the
adjustment or interpretation of contract terms, or other relief arising under or relating to this
contract. However, a written demand
or written assertion by the aviation supplier seeking the
payment of money exceeding $100,000 is not a claim under the Act until certified as required
by subparagraph d.2 below. A voucher, invoice, or other routine request for payment that
is
not in dispute when submitted is not a claim under the Act. The submission may be converted
to a claim under the Act by complying with the submission and certification requirements of
this clause, if it is disputed either as to liability
or amount is not acted upon in a reasonable
time.

	1621	  	 d.      

	 1622
 1623
 1624
 1625
	  	 1.      A claim by the aviation supplier must be made in writing and submitted to
the
Contracting Officer for a written decision. A claim by the Postal Service against the
aviation supplier is subject to a written decision by the Contracting Officer.

	 1626
 1627
 1628
	  	 2.      For aviation supplier claims exceeding $100,000, the aviation supplier must submit
with
the claim the following certification:

  
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	 1629
 1630

1631
 1632

1633
 1634
	  	 “I certify that the claim is made in good faith, that the supporting data are
accurate and complete to the best of my knowledge and
belief, that the
amount requested accurately reflects the contract adjustment for which the
aviation supplier believes the Postal Service is liable, and that I am duly
authorized to certify the claim on behalf of the aviation
supplier.”

	 1635
 1636

1637
	  	 3.      The certification may be executed by any person duly authorized to bind the
aviation
supplier with respect to the claim.

	 1638
 1639

1640
 1641

1642
	  	 e.      For aviation supplier claims of $100,000 or less, the Contracting Officer must, if
requested in
writing by the aviation supplier, render a decision within 60 days of the request. For aviation
supplier-certified claims over $100,000, the Contracting Officer must, within 60 days, decide
the claim or notify the aviation
supplier of the date by which the decision will be made.

	 1643
 1644

1645
	  	 f.       The Contracting Officer’s decision is final unless the aviation supplier appeals
or files a suit as
provided in the Act.

	 1646
 1647

1648
 1649

1650
 1651

1652
 1653
	  	 g.      When a CDA claim is submitted by or against an aviation supplier, the parties shall make
a
good faith attempt to resolve the dispute, including an exchange of relevant information toward
a mutual resolution. Accordingly, by mutual consent, the parties may agree to use an
alternative dispute resolution (ADR) process to assist in
resolving the claim. A certification as
described in d (2) of this clause must be provided for any claim, regardless of dollar amount,
before ADR is used. If either party declares the matter to be at an impasse, the dispute will be
resolved
through the CDA process as contemplated by Clause B-9.

	1654	  	 h.      The Postal Service will pay interest in the amount found due and unpaid
from:

	 1655
 1656
	  	 1.      The date the Contracting Officer receives the claim (properly certified, if required);
or

	 1657
 1658

1659
	  	 2.      The date payment otherwise would be due, if that date is later, until the date
of
payment.

	 1660
 1661

1662
	  	 i.       Simple interest on claims will be paid at a rate determined in accordance with the
Interest
clause.

	 1663
 1664

1665
 1666

1667
	  	 j.       The aviation supplier must proceed diligently with performance of this contract,
pending final
resolution of any request for relief, claim, appeal, or action arising under the contract
regardless of the initiating party, and comply with any decision of the Contracting Officer.

	1668	  	Clause B-10: Pricing of Adjustments (March 2006) (Tailored)
	 1669
 1670

1671
 1672

1673
 1674
	  	When costs are a factor in determining any contract price adjustment under the Changes clause, the
process set forth in Clause 4-1.c will be followed. For any other provision of
this contract, the parties
agree to use the process set forth in Attachment 10: Pricing and in the Payment Processing sections
of Part 1 for negotiating the adjustment.
	1675	  	Clause B-15: Notice of Delay (March 2006) (Tailored)
	 1676
 1677

1678
 1679

1680
 1681
	  	Immediately upon becoming aware of any difficulties that might delay deliveries under this contract,
the aviation supplier will notify the Postal Service in writing. The
notification must identify the
difficulties, the reasons for them, and the estimated period of delay anticipated. Failure to give notice
may preclude later consideration of any request for an extension of contract time.

  
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	1682	  	Clause B-22: Interest (March 2006) (Tailored)
	 1683
 1684
 1685
 1686
 1687
 1688
	  	The Postal Service will pay interest on late payments and unearned prompt payment discounts in
accordance with the Prompt Payment Act, 31 U.S.C. 3901 et. seq., as amended by the
Prompt
Payment Act Amendments of 1988, P.L. 100-496. The aviation supplier will pay interest on any
payment to the Postal Service at a rate equivalent to the prevailing Contract Disputes Act interest rate.
	1689	  	Clause B-25: Advertising of Contract Awards (March 2006)
	 1690
 1691
 1692
 1693
 1694
	  	Except with the Contracting Officer’s prior approval, the aviation supplier agrees not to refer in its
commercial advertising to the fact that it was awarded a Postal
Service contract or to imply in any
manner that the Postal Service endorses its products.
	1695	  	Clause B-30: Permits and Responsibilities (March 2006) (Tailored)
	 1696
 1697
 1698
 1699
 1700
 1701
 1702
 1703
 1704
	  	The aviation supplier is responsible, without additional expense to the Postal Service, for obtaining
any necessary licenses and permits, and for complying with any applicable
federal, state, and
municipal laws, codes, and regulations in connection with the performance of the contract. The
aviation supplier is responsible for all damage to persons or property, including environmental damage
that occurs as a
result of its omission(s) or negligence. While in performance of the contract, the
aviation supplier must take proper safety and health precautions to protect the work, the workers, the
public, the environment, and the property of
others.
	1705	  	Clause B-39: Indemnification (March 2006) (Tailored)
	 1706
 1707
 1708
 1709
 1710
 1711
 1712
 1713
	  	The aviation supplier must save harmless and indemnify the Postal Service and its officers, agents,
representatives, and employees from all claims, losses, damage, actions,
causes of action, expenses,
and/or liability resulting from, brought forth, or on account of any personal injury or property damage
received or sustained by any person, persons, or property growing out of, occurring, or attributable to
any
work performed under or related to this contract, resulting in whole or in part from negligent acts or
omissions of the aviation supplier, any subcontractor of the aviation supplier, or any employee, agent,
or representative of the aviation
supplier or of the aviation supplier’s subcontractor.
	 1714
 1715
 1716
 1717
 1718
 1719
 1720
 1721
	  	The Postal Service must save harmless and indemnify the aviation supplier and its officers, agents,
representatives, and employees from all claims, losses, damage, actions,
causes of action, expenses,
and / or liability resulting from, brought forth, or on account of any personal injury or property damage
received or sustained by any person, persons, or property growing out of, occurring, or attributable
to
any work performed under or related to this contract, resulting in whole or in part from negligent acts or
omissions of the Postal Service, or any employee, agent, or representative of the Postal Service.
	1722	  	Clause B-45: Other Contracts (March 2006) (Tailored)
	 1723
 1724
 1725
 1726
 1727
 1728
	  	The Postal Service may award other contracts for additional work, and the aviation supplier must
cooperate fully with the other aviation suppliers and Postal Service employees.
The aviation supplier
must not commit or permit any act that will interfere with the performance of work by any other aviation
supplier or by Postal Service employees.
	1729	  	Clause B-65: Adjustments to Compensation (March 2006) (Tailored)
	 1730
 1731
 1732
 1733
 1734
 1735
 1736
	  	Contract compensation may be adjusted, from time to time, by mutual agreement of the aviation
supplier and the Contracting Officer. No adjustment to compensation will be made for
changes arising
from Clause 9-10: Service Contract Act or from Clause 9-12: Fair Labor Standards Act and Service
Contract Act – Price Adjustment. Adjustments in compensation pursuant to this clause shall be
memorialized by formal
modification to the contract. All negotiations between the parties shall be
conducted with respect to the implied covenant of good faith and fair dealing.

  
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	1737	  	
	1738	  	Clause B-69: Events of Default (March 2006) (Tailored)
	 1739
 1740
 1741
	  	The aviation supplier’s right to perform this contract is subject to termination, in whole or in part, in the
event of any of the following events of
default.
	 1742
 1743
	  	 a.      The aviation supplier’s failure to perform service according to the terms of the
contract;

	 1744
 1745
 1746
	  	 b.      If the aviation supplier has been administratively determined to have violated Postal laws
and
regulations and other laws related to the performance of the service;

	 1747
 1748
 1749
	  	 c.      Failure to follow the instructions of the Contracting Officer that fall within the scope of
the
contract;

	 1750
 1751
 1752
 1753
 1754
	  	 d.      If the aviation supplier transfers or assigns his contract, except as authorized herein,
or
sublets the whole or a portion of this contract contrary to the applicable provisions of the U.S.
Postal Service Supplying Principles and Practices or without any required approval of the
Contracting Officer;

	 1755
 1756
 1757
	  	 e.      If the aviation supplier combines to prevent others from proposing for the performance
of
Postal Service contracts;

	 1758
 1759
 1760
 1761
 1762
	  	 f.       If the aviation supplier or corporate officer has been or is, during the term of the
contract,
convicted of a crime affecting his or her reliability or trustworthiness as a mail transportation
aviation supplier, such as any form of fraud or embezzlement that has impacted the Postal
Service or the U.S.
Government;

	 1763
 1764
 1765
 1766
	  	 g.      If at any time the aviation supplier, its principal owners, corporate officers or personnel
are
disqualified by law or regulation from performing services under this contract, and upon notice
thereof, the aviation supplier fails to remove any such disqualification;

	 1767
 1768
 1769
	  	 h.      If the aviation supplier fails to provide any notification of a change in corporate
officers which
this contract may require; or

	 1770
 1771
 1772
	  	 i.       If the aviation supplier materially breaches any other requirement or clause of this
contract.

	 1773
 1774
	  	Clause B-75: Accountability of the Aviation Supplier (Non-Highway) (March
2006) (Tailored)
	 1775
 1776
 1777
 1778
 1779
	  	 a.      The aviation supplier shall supervise its operations and the operations of its
subcontractors
that provide services under this contract personally or through representatives. The aviation
supplier or its supervising representatives must be easily accessible in the event of
emergencies or interruptions in
service.

	 1780
 1781
 1782
 1783
 1784
 1785
 1786
 1787
	  	 b.      In all cases, the aviation supplier shall be liable to the Postal Service for the Postal
Service’s
damages if mail is subject to loss, rifling, damage, wrong delivery, depredation, and other
mistreatment while in the custody and control of the aviation supplier or its subcontractors.
The aviation supplier shall also be
accountable and answerable in damages for the faithful
performance of all other obligations assumed under this contract, whether or not it has
entrusted part or all of its performance to another, except for any failure to perform that
is
excused by the Force Majeure clause of this contract.

	1788	  	 c.      The aviation supplier shall faithfully account for and deliver to the Postal Service
all:

	1789	  	 1.      Mail,

	1790	  	 2.      Moneys, and

	 1791
 1792
	  	 3.      Other property of any kind belonging to or entrusted to the care of the Postal
Service,
that come into the possession of the aviation supplier during the term of this contract.

  
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	 1793
 1794
 1795
 1796
 1797
 1798
	  	  

d.      The aviation supplier shall, promptly upon discovery, refund (i) any
overpayment made by the
Postal Service for service performed, or (ii) any payment made by the Postal Service for
service not rendered.

	1799	  	Clause B-77: Protection of the Mail (Non-Highway) (March 2006) (Tailored)
	 1800
 1801
 1802
 1803
	  	The aviation supplier must protect and safeguard the mail from loss, theft, or damage while it is in the
aviation supplier’s custody or control, and prevent
unauthorized persons from having access to the
mail.
	1804	  	 a.      Classification of Irregularities

	 1805
 1806
 1807
 1808
 1809
	  	 The following classifications of irregularities are those that preclude the Postal Service from
accomplishing its mission. The damage
caused from these irregularities result in actual
damage and degradation to its brand, and therefore, is associated with liquidated damages as
stated:

	1810	  	 1.      Failure to Protect

	 1811
 1812
 1813
 1814
 1815
	  	 Failure to protect the mail consists of: failure to protect or safeguard the mail from
inclement weather, from damage caused by the
mechanized sort, from acts of the
aviation supplier’s employees or contractors, and from loss, depredation, or other
hazards while in the control or custody of the aviation supplier.

	1816	  	 2.      Theft of Mail
	  	
	 1817
 1818
 1819
 1820
 1821
 1822
	  	 The theft of mail can cause immeasurable damage to the Postal Service, both in
terms of actual economic loss to our customers and to
the competitive standing of our
products and services. The aviation supplier will support law enforcement efforts to
prevent theft of mail, and will support enforcement officials in the apprehension of
those who may be perpetrating such
crimes.

	1823	  	 b.      Damages and Liquidated Damages

	 1824
 1825
 1826
	  	 The following liquidated damages for damaged and unprotected mail are applicable to the
associated classifications of
irregularities:

	1827	  	 1.      Damaged and Unprotected Mail

	 1828
 1829
 1830
 1831
	  	 Liquidated damages may be assessed for damaged and unprotected mail. For
purposes of this section, damaged mail will consist of mail
pieces whether inside or
outside of Postal Service MTE. This category includes but may not be limited to:

	1832	  	 i.       Failure to Protect – Causing Damage to Mail

	 1833
 1834
 1835
 1836
 1837
 1838
 1839
 1840
 1841
	  	 Failure to protect causing physical damage to the U.S. Mail or MTE for which
there may be damage assessed equal to the actual costs
incurred by the
Postal Service necessary to remedy the situation and forward the mail onward
to its next processing or delivery operation. Such actual costs may include
items such as administrative time at an appropriate hourly rate
for
documenting the irregular condition and implementing the damage, labor time
used to repossess the mail, unpack, sort, dry, repack / repackage, and re-
dispatch to a subsequent destination or processing operation.

	 1842
 1843
 1844
 1845
	  	 If actual damages are not ascertainable, a liquidated damage may be
assessed as follows, taking into account the actual damage that
may typically
result from such situations:

	1846	  	 Per Letter Tray:
	  	[*] per letter tray
	1847	  	 Per Flat Tub:
	  	[*] per flat tub
	1848	  	 Per Mail Sack or Pouch:
	  	[*] per sack or pouch

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	 1849
 1850
	  	 Per Outside Parcel:
	  	[*] per piece
	1851	  	 ii.      Failure to Protect - Dropped or Abandoned Pouch or Piece

	 1852
 1853
 1854
	  	 When U.S. Mail is discovered unprotected in an unsecured location or on the
airport ramp, Liquidated Damages may be assessed at $50.00
per incident.

	1855	  	 c.      Investigative Costs for Theft of Mail

	 1856
 1857
 1858
 1859
 1860
 1861
 1862
 1863
 1864
	  	 In cases where a mail theft is committed by the aviation supplier’s or its subcontractor’s
personnel, actual investigative
costs to the U.S. Postal Inspection Service and/or the Office of
the Inspector General may be assessed as actual damages. These costs will be reasonably
determined and may begin accruing only when a specific investigation begins on the basis
of
probable cause. The costs of routine surveillance not associated with a specific theft or series
of thefts will not be assessed. In addition to allocable investigative expenses, the Postal
Service may assess actual damages for loss of
product value resulting from insurance claims
where payouts to postal customers can be traced to the incident(s).

	 1865
 1866
 1867
 1868
 1869
 1870
 1871
 1872
	  	 In addition to the above, in cases where mail theft occurs and the Postal Service determines
that the aviation supplier’s failure
to properly execute the mail handling employee screening
requirements set forth in the Contract was a proximate cause of the theft, and that by reason
of the theft it is necessary to conduct a complete audit of the aviation supplier’s
adherence to
the screening requirements with respect to the employment of other employees subject to
those requirements, the Postal Service may assess an administrative damage in the amount
of $5,000 in lieu of actual costs associated with
that audit.

	 1873
 1874
 1875
 1876
 1877
 1878
 1879
 1880
 1881
	  	 Depending upon the circumstances of the incident, the Vice President, Network Operations, in
consultation with the Postal Inspection
Service or Office of the Inspector General, and the
Contracting Officer, may determine that damages pursuant to this section are not appropriate,
and may waive all or a portion of the amounts that may otherwise be due the Postal
Service
hereunder. Factors such as the seriousness of the misconduct, the aviation supplier’s level of
cooperation in investigations, implementing corrective actions, and efforts directed at loss
recovery will be considered in reaching
that determination.

	1882	  	Clause B-80: Laws and Regulations Applicable (March 2006) (Tailored)
	 1883
 1884
 1885
 1886
 1887
 1888
 1889
 1890
 1891
 1892
	  	This contract and the services performed under it are subject to all applicable federal, state, and local
laws and regulations. The aviation supplier assumes sole
responsibility to faithfully discharge all
duties and obligations imposed by such laws and regulations, and shall obtain and pay for all permits,
licenses, and other authorities required to perform this contract. The aviation supplier shall
hold
harmless, save, and defend the Postal Service from any consequence of the aviation supplier’s failure
to abide by all applicable federal, state, and local laws and regulations (including but not limited to
regulations promulgated
by the DOL and IRS) relating to the contract and throughout the term of the
contract and any subsequent renewal periods.
	1893	  	Clause B-81: Information or Access by Third Parties (March 2006) (Tailored)
	 1894
 1895
 1896
 1897
 1898
 1899
 1900
	  	The Postal Service retains exclusive authority to release any or all information about mail matter in the
custody of the aviation supplier and to permit access to
that mail in the custody of the aviation
supplier. All requests by non-postal individuals for information about mail matter in the custody of the
aviation supplier or for access to mail in the custody of the aviation supplier must be referred
to the
Contracting Officer or his or her designee.
	1901	  	Clause B-82: Access by Officials (March 2006) (Tailored)
	 1902
 1903
	  	The aviation supplier shall deny access to the cargo compartment of aircrafts or a vehicle containing
mail therein to state or local officials except at a postal
facility or in the presence of a postal employee

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	 1904
 1905
 1906
 1907
 1908
 1909
 1910
	  	or a Postal Inspection Service officer, unless to prevent immediate damage to the aircraft, vehicle, or
their contents. If authorized Federal law enforcement seeks access to the
cargo compartment of
aircrafts or vehicles contained mail therein, the aviation supplier shall notify the Postal Inspection
Service before permitting access, unless to prevent immediate damage to the aircraft, vehicle, or
their
contents.
	1911	  	Clause 1-1: Privacy Protection (July 2007)
	1912	  	In addition to other provisions of this contract, the aviation supplier agrees to the following:
	 1913
 1914
 1915
 1916
 1917
 1918
 1919
 1920
 1921
 1922
 1923
	  	 a.      Privacy Act. If the aviation supplier operates a system of records on behalf of the
Postal
Service, the Privacy Act (5 U.S.C. 522a) and Postal Service regulations at 39 CFR Parts 266-
267 apply to those records. The aviation supplier is considered to operate a system of
records if it manages records (including collecting,
revising, or disseminating records) from
which information is retrieved by the name of an individual or by some number, symbol, or
other identifier assigned to the individual. The aviation supplier agrees to comply with the Act
and the
Postal Service regulations in designing, developing, and operating the system of
records, including ensuring that records are current and accurate for their intended use, and
incorporating adequate safeguards to prevent misuse or improper
disclosure of personal
information. Violations of the Act may subject the violator to criminal penalties.

	 1924
 1925
 1926
 1927
 1928
	  	 b.      Customer or Employee Information. If the aviation supplier has access to Postal
Service
customer or employee information, including address information, whether collected online or
offline by the Postal Service or by a aviation supplier acting on its behalf, the aviation supplier
must comply with the
following:

	 1929
 1930
 1931
 1932
 1933
	  	 1.      General. With regard to the Postal Service customer information to which it has
access
pursuant to this contract, the aviation supplier has that access as an agent of the Postal
Service and must adhere to its postal privacy policy at
www.usps.com/common/docs/privpol.htm.

	 1934
 1935
 1936
 1937
 1938
 1939
 1940
 1941
 1942
 1943
 1944
 1945
 1946
 1947
	  	 2.      Use, Ownership, and Nondisclosure. The aviation supplier may use Postal
Service
customer or employee information solely for purposes of this contract, and may not collect
or use such information for non-Postal Service marketing, promotion, or any other
purpose without the prior written approval of the
Contracting Officer. The aviation supplier
must restrict access to such information to those employees who need the information to
perform work under this contract, and must ensure that each such employee (including
subcontractors’
employees) sign a nondisclosure agreement, in a form suitable to the
Contracting Officer, prior to being granted access to the information. The Postal Service
retains sole ownership and rights to its customer or employee information. Unless
the
contract states otherwise, upon completion of the contract, the aviation supplier must turn
over all Postal Service customer or employee information in its possession to the Postal
Service, and must certify that no Postal Service
customer or employee information has
been retained unless otherwise authorized in writing by the Contracting Officer.

	 1948
 1949
 1950
 1951
 1952
 1953
 1954
 1955
	  	 3.      Security Plan. When applicable, and unless waived in writing by the Contracting
Officer,
the aviation supplier must work with the Postal Service to develop and implement a
security plan that addresses the protection of customer or employee information. The
plan will be incorporated into the contract and followed by the
aviation supplier, and must,
at a minimum, address notification to the Postal Service of any security breach. If the
contract does not include a security plan at the time of contract award, it must be added
within 60 days after contract
award.

	 1956
 1957
 1958
	  	 4.      Breach Notification. If there is a breach of any nature in the security of Postal
Service
data, including customer or employee data, the aviation supplier must follow the breach
notification requirements included in the security plan discussed in (3) above. The aviation

  
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	 1959
 1960
 1961
	  	          supplier will be required to follow Postal Service policies regarding
breach notification to
customers and/or employees.

	 1962
 1963
 1964
 1965
 1966
 1967
 1968
 1969
	  	 5.      Legal Demands for Information. If a legal demand is made for Postal Service customer
or
employee information (such as by subpoena), the aviation supplier must immediately
notify the Contracting Officer and the nearest office of the Postal Inspection Service. After
notification, the Postal Service will determine whether and
to what extent to comply with
the legal demand. Should the Postal Service agree to or unsuccessfully resist a legal
demand, the aviation supplier may, with the written permission of the Contracting Officer,
release the information
specifically demanded.

	 1970
 1971
 1972
 1973
 1974
 1975
 1976
 1977
	  	 c.      Online Assistance. If the aviation supplier assists in the design, development, or
operation of
a Postal Service customer Web site, or if it designs or places an ad banner, button, or link on
a Postal Service Web site or any Web site on the Postal Service’s behalf, the aviation supplier
must comply with the
limitations in subparagraph b (1) above relating to ad banners, buttons,
or links, and the use of cookies, web beacons, or other web analysis tools. Exceptions to
these limitations require the prior written approval of the Contracting Officer
and the Postal
Service’s chief privacy officer.

	 1978
 1979
 1980
 1981
 1982
 1983
 1984
	  	 d.      Marketing E-Mail. If the aviation supplier assists the Postal Service in conducting
a marketing
e-mail campaign, the aviation supplier does so as an agent of the Postal Service and must
adhere to the Postal Service policies set out in Postal Service Management Instruction AS-
350-2004-4, Marketing E-mail. Aviation
suppliers wishing to conduct marketing email
campaigns to postal employees must first obtain the prior written approval of the Contracting
Officer.

	 1985
 1986
 1987
	  	 e.      Audits. The Postal Service may audit the aviation supplier’s compliance with
the requirements
of this clause, including through the use of online compliance software.

	 1988
 1989
 1990
	  	 f.       Indemnification. The aviation supplier will indemnify the Postal Service
against all liability
(including costs and fees) for damages arising out of violations of this clause.

	 1991
 1992
 1993
 1994
	  	 g.      Flow-down. The aviation supplier will flow this clause down to subcontractors that
would be
covered by any portion of this clause if they were the aviation supplier.

	1995	  	Clause 1-5: Gratuities or Gifts (March 2006)
	 1996
 1997
 1998
	  	 a.      The Postal Service may terminate this contract for default if, after notice and a hearing,
the
Postal Service Board of Contract Appeals determines that the aviation supplier or the aviation
supplier’s agent or other representative:

	 1999
 2000
	  	 1.      Offered or gave a gratuity or gift (as defined in 5 CFR 2635) to an officer or
employee
of the Postal Service; and

	 2001
 2002
 2003
	  	 2.      Intended by the gratuity or gift to obtain a contract or favorable treatment under
a
contract.

	 2004
 2005
 2006
 2007
	  	 b.      The rights and remedies of the Postal Service provided in this clause are in addition to
any
other rights and remedies provided by law or under this contract.

	2008	  	Clause 1-6: Contingent Fees (March 2006)
	 2009
 2010
 2011
 2012
 2013
	  	 a.      The aviation supplier warrants that no person or selling agency has been employed
or
retained to solicit or obtain this contract for a commission, percentage, brokerage, or
contingent fee, except bona fide employees or bona fide, established commercial or selling
agencies employed by the aviation supplier for the purpose
of obtaining business.

  
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	 2014
 2015
 2016
 2017
 2018
	  	 b.      For breach or violation of this warranty, the Postal Service has the right to annul this
contract
without liability or to deduct from the contract price or otherwise recover the full amount of the
commission, percentage, brokerage fee, or contingent fee.

	 2019
 2020
	  	Clause 1-11: Prohibition Against Contracting with Former Officers or PCES
Executives (March 2006) (Tailored)
	 2021
 2022
 2023
 2024
 2025
 2026
 2027
	  	During the performance of this contract, former Postal officers or Postal Career Executive Service
(PCES) executives are prohibited from employment by the contractor as key
personnel, experts or
consultants, if such individuals, within two years after their retirement from the Postal Service, would
be performing substantially the same duties as they performed during their career with the
Postal
Service.
	2028	  	Clause 1-12: Use of Former Postal Service Employees (March 2006) (Tailored)
	 2029
 2030
 2031
 2032
 2033
 2034
 2035
 2036
	  	During the term of this contract, the aviation supplier must identify any former Postal Service officers
or Postal Career Executive Service (PCES) employees it proposes to be
engaged, directly or
indirectly, in contract performance. Such individuals may not commence performance without the
Contracting Officer’s prior approval. If the Contracting Officer does not provide such approval, the
aviation supplier
must replace the proposed individual former employee with another individual equally
qualified to provide the services called for in the contract.
	2037	  	Clause 2-11: Postal Service Property - Fixed-Price (March 2006) (Tailored)
	2038	  	 a.      Postal Service-Furnished Property

	 2039
 2040
 2041
 2042
 2043
 2044
	  	 1.      The Postal Service will deliver to the aviation supplier, for use in connection with
and
under the terms of this contract, the property described as Postal Service-furnished
property in the Schedule or specifications, together with any related information the
aviation supplier may request that may reasonably be required for
the intended use of
the property (hereinafter referred to as “Postal Service-furnished property”).

	 2045
 2046
 2047
 2048
 2049
 2050
 2051
 2052
 2053
 2054
	  	 2.      The contract delivery or performance dates are based on the expectation that
Postal
Service-furnished property suitable for use (except for property furnished “as is”) will
be delivered at the times stated in the Schedule or, if not so stated, in sufficient time to
enable the aviation supplier to meet
these delivery or performance dates. If Postal
Service-furnished property is not delivered by these times, the Contracting Officer will,
upon timely written request from the aviation supplier, make a determination of any
delay occasioned
the aviation supplier and will equitably adjust the delivery or
performance dates or the contract price, or both, and any other contractual provision
affected by the delay, in accordance with the Changes clause.

	 2055
 2056
 2057
 2058
 2059
 2060
 2061
 2062
 2063
	  	 3.      Except for Postal Service-furnished property furnished “as is,” if the Postal
Service-
furnished property is received in a condition not suitable for its intended use, the
aviation supplier must notify the Contracting Officer and (as directed by the
Contracting Officer) either (a) return it at the expense of the
Postal Service or
otherwise dispose of it, or (b) effect repairs or modifications. Upon the completion of
(a) or (b), the Contracting Officer (upon written request from the aviation supplier) will
equitably adjust the delivery or
performance dates or the contract price, or both, and
any other affected contractual provision, in accordance with the Changes clause.

	 2064
 2065
 2066
 2067
 2068
	  	 4.      The provisions for adjustment in this paragraph a are exclusive, and the Postal
Service
is not liable to suit for breach of contract by reason of any delay in delivery of
Postal Service-furnished property or its delivery in a condition not suitable for its
intended use.

  
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	2069	  	 b.      Changes in Postal Service-Furnished Property

	 2070
 2071

2072
 2073

2074
 2075

2076
	  	 1.      By written notice, the Contracting Officer may (a) decrease the property provided or
to
be provided by the Postal Service under this contract, or (b) substitute other Postal
Service-owned property for the property to be provided by the Postal Service, or to be
acquired by the aviation supplier for the Postal Service under
this contract. The
aviation supplier must promptly take any action the Contracting Officer may direct
regarding the removal and shipping of the property covered by this notice.

	 2077
 2078

2079
 2080

2081
 2082

2083
 2084

2085
	  	 2.      In the event of any decrease in or substitution of property pursuant to subparagraph
b.1
above, or any withdrawal of authority to use property provided under any other
contract or lease, which property the Postal Service had agreed in the Schedule to
make available for the performance of this contract, the Contracting Officer,
upon the
aviation supplier’s written request (or - if substitution causes a decrease in the cost of
performance - on the Contracting Officer’s own initiative), will equitably adjust any
contractual provisions affected by the
decrease, substitution, or withdrawal, in
accordance with the Changes clause.

	 2086
 2087

2088
 2089
	  	 c.      Use of Postal Service Property. The Postal Service property, unless otherwise
provided in
this contract or approved by the Contracting Officer, must be used only for performing this
contract.

	 2090
 2091

2092
 2093

2094
 2095

2096
 2097

2098
 2099

2100
 2101

2102
 2103

2104
 2105
	  	 d.      Utilization, Maintenance, and Repair of Postal Service Property. The aviation
supplier must
maintain and administer, in accordance with sound industrial practice, a program or system for
the utilization, maintenance, repair, protection, and preservation of Postal Service property
until it is disposed of in accordance
with this clause. If any damage occurs to Postal Service
property, the risk of which has been assumed by the Postal Service under this contract, the
Postal Service will replace the items or the aviation supplier must make such repairs as
the
Postal Service directs; provided, however, that if the aviation supplier cannot effect these
repairs within the time required, the aviation supplier will dispose of the property in the manner
directed by the Contracting Officer. The
contract price includes no compensation to the
aviation supplier for performing any repair or replacement for which the Postal Service is
responsible, and an equitable adjustment will be made in any contractual provisions affected
by such
repair or replacement made at the direction of the Postal Service, in accordance with
the Changes clause. Any repair or replacement for which the aviation supplier is responsible
under the provisions of this contract must be accomplished by
the aviation supplier at the
aviation supplier’s own expense.

	 2106
 2107

2108
 2109

2110
 2111
	  	 e.      Risk of Loss. Unless otherwise provided in this contract, the aviation supplier
assumes the
risk of, and becomes responsible for, any loss or damage to Postal Service property provided
under this contract upon its delivery to the aviation supplier or upon passage of title to the
Postal Service as provided in paragraph
i below, except for reasonable wear and tear and
except to the extent that it is consumed in performing this contract.

	 2112
 2113

2114
 2115
	  	 f.       Access. The Postal Service, and any persons designated by it, must at
reasonable times
have access to premises where any Postal Service property is located, for the purpose of
inspecting it.

	 2116
 2117

2118
 2119

2120
 2121

2122
 2123

2124
	  	 g.      Final Accounting for and Disposition of Postal Service Property. Upon completion, or
at such
earlier dates as may be fixed by the Contracting Officer, the aviation supplier must submit, in a
form acceptable to the Contracting Officer, inventory schedules covering all items of Postal
Service property not consumed in
performing this contract (including any resulting scrap) or
not previously delivered to the Postal Service, and will prepare for shipment, deliver f.o.b.
origin, or dispose of this property, as the Contracting Officer may direct or authorize.
The net
proceeds of disposal will be credited to the contract price or will be paid in such other manner
as the Contracting Officer may direct.

  
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	 2125
 2126
	  	 h.      Restoration of Aviation Supplier’s Premises and Abandonment. Unless otherwise
provided in
this contract, the Postal Service:

	 2127
 2128
 2129
	  	 1.      May abandon any Postal Service property in place, whereupon all obligations of
the
Postal Service regarding it will cease; and

	 2130
 2131
 2132
 2133
 2134
	  	 2.      Has no obligation with regard to restoration or rehabilitation of the aviation
supplier’s
premises, either in case of abandonment, disposition on completion of need or of the
contract, or otherwise, except for restoration or rehabilitation costs properly included
in an equitable adjustment under paragraph b or e
above.

	2135	  	 i.       Title.

	 2136
 2137
 2138
 2139
 2140
 2141
 2142
 2143
	  	 1.      Title to all Postal Service-furnished property remains in the Postal Service. To
define
the obligations of the parties under this clause, title to each item of facilities, special
test equipment, or special tooling (other than that subject to a special-tooling clause)
acquired by the aviation supplier on behalf of the
Postal Service under this contract
will pass to and vest in the Postal Service when its use in the performance of this
contract begins, or upon payment for it by the Postal Service, whichever is earlier,
whether or not title was previously
vested.

	 2144
 2145
 2146
 2147
 2148
	  	 2.      Title to all material purchased by the aviation supplier for whose cost the
aviation
supplier is entitled to be reimbursed as a direct item of cost under this contract will
pass to and vest in the Postal Service upon delivery of the material to the aviation
supplier by the vendor.

	 2149
 2150
	  	 3.      Title to other material whose cost is reimbursable to the aviation supplier under
this
contract will pass to and vest in the Postal Service upon:

	2151	  	 a)      Its issuance for use in the performance of this contract; or

	 2152
 2153
	  	 b)      Reimbursement of its cost by the Postal Service, whichever occurs
first.

	 2154
 2155
 2156
 2157
 2158
 2159
 2160
 2161
 2162
	  	 4.      All Postal Service-furnished property, together with all property acquired by
the
aviation supplier, title to which vests in the Postal Service under this subsection i, is
subject to the provisions of this clause and is hereinafter collectively referred to as
“Postal Service property.” Title to Postal
Service property is not affected by its
incorporation into or attachment to any property not owned by the Postal Service, nor
does Postal Service property become a fixture or lose its identity as personal property
by being attached to any
real property.

	2163	  	Clause 2-22: Value Engineering Incentive (March 2006)
	2164	  	 a.      General.

	 2165
 2166
 2167
 2168
	  	 The right of each party to improve its own methods for its own benefit, absent a change to the
obligations of the other party which requires an
modification to this Contract, and to retain
such savings for itself is not affected by this clause.

	 2169
 2170
 2171
 2172
 2173
 2174
 2175
 2176
	  	 The aviation supplier is encouraged to develop and submit Value Engineering Change
Proposals (VECPs) voluntarily. The aviation supplier will share
in savings realized from an
accepted VECP as provided in paragraph (h) below. No document submitted by the aviation
supplier shall be considered to be a VECP unless the aviation supplier specifically marks on
the document that it is to be
considered a VECP and contains a statement that the aviation
supplier intends the document to be a VECP subject to the provisions of this Clause of the
Contract.

	2177	  	 b.      Definitions

	2178	  	 1.      Value Engineering Change Proposal (VECP). A proposal that:

	2179	  	 i.       Requires a change to the instant contract;

	2180	  	 ii.      Results in savings to the instant contract; and

  
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	2181	  	 iii.    Does not involve a change in:

	2182	  	 a)      Deliverable end items only;

	 2183
 2184
	  	 b)      Test quantities due solely to results of previous testing under the instant
contract;
or

	2185	  	 c)      Contract type only.

	2186	  	
	 2187
 2188
	  	 2.      Instant Contract. The contract under which a VECP is submitted. It does not
include
additional contract quantities.

	2189	  	
	 2190
 2191
 2192
	  	 3.      Additional Contract Quantity. An increase in quantity after acceptance of a VECP
due
to contract modification, exercise of an option, or additional orders (except orders
under indefinite-delivery contracts within the original maximum quantity limitations).

	2193	  	
	 2194
 2195
 2196
 2197
	  	 4.      Postal Service Costs. Costs to the Postal Service resulting from developing
and
implementing a VECP, such as net increases in the cost of testing, operations,
maintenance, logistics support, or property furnished. Normal administrative costs of
processing the VECP are excluded.

	2198	  	
	 2199
 2200
 2201
	  	 5.      Instant Contract Savings. The estimated cost of performing the instant
contract
without implementing a VECP minus the sum of: (a) the estimated cost of
performance after implementing the VECP, and (b) Postal Service costs.

	2202	  	
	 2203
 2204
 2205
 2206
	  	 6.      Additional Contract Savings. The estimated cost of performance or
delivering
additional quantities without the implementation of a VECP minus the sum of (a) the
estimated cost of performance after the VECP is implemented and (b) Postal Service
cost.

	2207	  	
	 2208
 2209
 2210
 2211
	  	 7.      Aviation Supplier’s Development and Implementation Costs. Aviation
supplier’s cost
in developing, testing, preparing, and submitting a VECP. Also included are the
aviation supplier’s cost to make the contractual changes resulting from the Postal
Service acceptance of the
VECP.

	2212	  	
	2213	  	 c.      Content. A VECP must include the following:

	2214	  	
	 2215
 2216
 2217
 2218
	  	 1.      A description of the difference between the existing contract requirement and
that
proposed, the comparative advantages and disadvantages of each, a justification
when an item’s function or characteristics are being altered, the effect of the change
on the end item’s performance, and any pertinent objective
test data.

	2219	  	
	 2220
 2221
	  	 2.      A list and analysis of the contract requirements that must be changed if the VECP
is
accepted, including any suggested specification revisions.

	2222	  	
	 2223
 2224
 2225
 2226
	  	 3.      A separate, detailed cost estimate for: (a) the affected portions of the existing
contract
requirement and, (b) the VECP. The cost reduction associated with the VECP must
take into account the aviation supplier’s allowable development and implementation
costs.

	2227	  	
	 2228
 2229
	  	 4.      A description and estimate of costs the Postal Service may incur in implementing
the
VECP, such as test and evaluation and operating and support costs.

	2230	  	
	2231	  	 5.      A prediction of any effects the proposed change would have on Postal Service
costs.

	2232	  	
	 2233
 2234
 2235
	  	 6.      A statement of the time by which a contract modification accepting the VECP must
be
issued in order to achieve the maximum cost reduction, noting any effect on the
contract completion time or delivery schedule.

	2236	  	

  
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	 2237
 2238
 2239
	  	 7.      Identification of any previous submissions of the VECP to the Postal Service,
including
the dates submitted, purchasing offices, contract numbers, and actions
taken.

	2240	  	
	2241	  	 d.      Submission. The aviation supplier must submit VECPs to the Contracting
Officer.

	2242	  	
	2243	  	 e.      Postal Service Action

	2244	  	
	 2245
 2246
 2247
 2248
 2249
	  	 1.      The Contracting Officer will give the aviation supplier written notification of
action
taken on a VECP within 60 days after receipt. If additional time is needed, the
Contracting Officer will notify the aviation supplier, within the 60-day period, of the
expected date of a decision. The Postal Service will process
VECPs expeditiously but
will not be liable for any delay in acting upon a VECP.

	2250	  	
	 2251
 2252
	  	 2.      If a VECP is not accepted, the Contracting Officer will so notify the aviation
supplier,
explaining the reasons for rejection.

	2253	  	
	 2254
 2255
	  	 f.       Withdrawal. The aviation supplier may withdraw a VECP, in whole or in part, at
any time
before its acceptance.

	2256	  	
	2257	  	 g.      Acceptance

	2258	  	
	 2259
 2260
 2261
 2262
 2263
 2264
	  	 1.      Acceptance of a VECP, in whole or in part, will be by execution of a
supplemental
agreement modifying this contract and citing this clause. If agreement on price (see
paragraph h below) is reserved for a later supplemental agreement, and if such
agreement cannot be reached, the disagreement is subject to the
Claims and
Disputes clause of this contract, or another clause of the contract dealing with
disputes.

	2265	  	
	 2266
 2267
	  	 2.      Until a VECP is accepted by contract modification, both parties must perform
in
accordance with the existing contract.

	2268	  	
	 2269
 2270
 2271
	  	 3.      The Contracting Officer’s decision to accept or reject all or any part of a VECP is
final
and not subject to the Claims and Disputes clause or otherwise subject to litigation
under the Contract Disputes Act of 1978.

	2272	  	
	 2273
 2274
 2275
 2276
 2277
 2278
	  	 h.      Sharing. If a VECP is accepted, the aviation supplier and the Postal Service shall
negotiate
their respective shares of the contract savings. The contract savings are calculated by
subtracting the estimated cost of performing the contract with the VECP, Postal Service costs,
and the allowable development and
implementation costs from the estimated cost of
performing the contract without the VECP. Profit is excluded when calculating contract
savings.

	2279	  	
	2280	  	 i.       Data

	2281	  	
	 2282
 2283
	  	 1.      The aviation supplier may restrict the Postal Service’s right to use any part of a
VECP
or the supporting data by marking the following legend on the affected parts:

	2284	  	
	 2285
 2286
 2287 2288 2289 2290 2291
	  	 “These data, furnished under the Value Engineering Incentive clause of contract,
may not be disclosed outside the Postal Service or
duplicated, used, or disclosed,
in whole or in part, for any purpose other than to evaluate a value engineering
change proposal submitted under the clause. This restriction does not limit the
Postal Service’s right to use information
contained in these data if it has been
obtained or is otherwise available from the aviation supplier or from another
source without limitation.”

	2292	  	

  
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	 2293
 2294
 2295
 2296
 2297
	  	 2.      If a VECP is accepted, the aviation supplier hereby grants the Postal Service
unlimited
rights in the VECP and supporting data, except that, with respect to data
qualifying and submitted as limited rights technical data, the Postal Service will have
the rights specified in the contract modification implementing the VECP and
will
appropriately mark the data.

	2298	  	
	2299	  	
	 2300
 2301
	  	Clause 3-1: Small, Minority, and Woman-owned Business Subcontracting
Requirements (March 2006)
	 2302
 2303
 2304
 2305 2306 2307 2308 2309
	  	 a.      All aviation suppliers, except small businesses, must submit a subcontracting plan that
is
specific to this contract and that separately addresses subcontracting with small, minority, and
woman-owned businesses. A plan approved by the Postal Service must be included in and
made a part of the contract. Lack of an approved plan
may make the aviation supplier
ineligible for award. A subcontract is defined as any agreement (other than one involving an
employer-employee relationship) entered into by a Postal Service aviation supplier or
subcontractor calling for
supplies or services required for performance of the contract or
subcontract.

	2310	  	
	2311	  	 b.      The aviation supplier’s subcontracting plan must include the
following:

	2312 2313 2314 2315 2316	  	 1.      Goals, in terms of percentages of the total amount of this contract that the
aviation
supplier will endeavor to subcontract to small, minority, and woman-owned
businesses. The aviation supplier must include all subcontracts that contribute to
contract performance, and may include a proportionate share of supplies
and services
that are normally allocated as indirect costs.

	2317	  	
	2318	  	 2.      A statement of the:

	2319	  	 i.       Total dollars planned to be subcontracted under this contract;
and

	2320 2321	  	 ii.      Total of that amount planned to be subcontracted to small, minority, and
woman-owned
businesses.

	2322	  	
	2323 2324 2325	  	 3.      A description of the principal types of supplies and services to be subcontracted
under
this contract, identifying the types planned for subcontracting to small, minority, and
woman-owned businesses.

	2326	  	
	2327	  	 4.      A description of the method used to develop the subcontracting goals for this
contract.

	2328	  	
	2329 2330 2331 2332	  	 5.      A description of the method used to identify potential sources for solicitation
purposes
and a description of efforts the aviation supplier will make to ensure that small,
minority, and woman-owned businesses have an equitable opportunity to compete for
subcontracts.

	2333	  	
	2334 2335 2336 2337	  	 6.      A statement as to whether the offer included indirect costs in
establishing
subcontracting goals for this contract and a description of the method used to
determine the proportionate share of indirect costs to be incurred with small, minority,
and woman-owned businesses.

	2338	  	
	2339 2340	  	 7.      The name of the individual employed by the aviation supplier who will administer
the
subcontracting program and a description of the individual’s duties.

	2341	  	
	2342 2343 2344	  	 8.      Assurances that the aviation supplier will require all subcontractors
receiving
subcontracts in excess of $1,000,000 to adopt a plan similar to the plan agreed to by
the aviation supplier.

	2345	  	
	2346 2347 2348	  	 9.      A description of the types of records the aviation supplier will maintain to
demonstrate
compliance with the requirements and goals in the plan for this contract. The records
must include at least the following:

  
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	 2349
 2350
	  	  i.     Source lists, guides, and other data identifying small, minority, and woman-
owned
businesses;

	 2351
 2352
	  	 ii.      Organizations contacted in an attempt to locate sources that are small,
minority, and
woman-owned businesses;

	 2353
 2354
 2355
	  	 iii.    Records on each subcontract solicitation resulting in an award of more than
$100,000, indicating
whether small, minority, or woman-owned businesses
were solicited and if not, why not; and

	 2356
 2357
	  	 iv.     Records to support subcontract award data, including the name, address, and
business size of
each subcontractor.

	2358	  	
	 2359
 2360
 2361
	  	 c.      Reports. The aviation supplier must provide reports on subcontracting activity under
this
contract on a calendar-quarter basis. The report must be one of the types described in Clause
3-2, Participation of Small, Minority, and Woman-owned Businesses.

	2362	  	
	2363	  	
	 2364
 2365
	  	Clause 3-2: Participation of Small, Minority, and Woman-owned Businesses
(March 2006)
	 2366
 2367
 2368
 2369
	  	 a.      The policy of the Postal Service is to encourage the participation of small, minority,
and
woman-owned business in its purchases of supplies and services to the maximum extent
practicable consistent with efficient contract performance. The aviation supplier agrees to
follow the same policy in performing this
contract.

	2370	  	
	 2371
 2372
	  	 b.      Subject to the agreement of the aviation supplier and the Postal Service, the aviation
supplier
will report subcontracting activity on one of the following bases:

	2373	  	 1.      Showing the amount of money paid to subcontractors during the reporting
period;

	 2374
 2375
	  	 2.      Showing subcontracting activity that is allocable to this contract using
generally
accepted accounting practices; or

	2376	  	 3.      A combination of the methods listed above.

	2377	  	
	 2378
 2379
 2380
 2381
	  	 c.      The aviation supplier will submit a report to the Contracting Officer within 15 calendar
days
after the end of each calendar-year quarter, describing all subcontract awards to small,
minority, or woman-owned businesses. The Contracting Officer may require more frequent
reports.

	2382	  	
	2383	  	
	2384	  	Clause 4-1: General Terms and Conditions (July 2007) (Tailored)
	2385	  	 a.      Inspection and Acceptance. Not applicable

	2386	  	
	 2387
 2388
 2389
 2390
 2391
 2392 2393 2394 2395 2396
	  	 b.      Assignment. If this contract provides for payments aggregating $10,000 or more,
claims for
monies due or to become due from the Postal Service under it may be assigned to a bank,
trust company, or other financing institution, including any federal lending agency, and may
thereafter be further assigned and reassigned to
any such institution. Any assignment or
reassignment must cover all amounts payable and must not be made to more than one party,
except that assignment or reassignment may be made to one party as agent or trustee for two
or more parties
participating in financing this contract. No assignment or reassignment will be
recognized as valid and binding upon the Postal Service unless a written notice of the
assignment or reassignment, together with a true copy of the instrument of
assignment, is filed
with:

	2397	  	 1.      The Contracting Officer;

	2398	  	 2.      The surety or sureties upon any bond; and

	2399 2400	  	 3.      The office, if any, designated to make payment, and the Contracting Officer
has
acknowledged the assignment in writing.

	2401 2402 2403	  	 4.      Assignment of this contract or any interest in this contract other than in
accordance
with the provisions of this clause will be grounds for termination of the contract for
default at the option of the Postal Service.

	2404	  	

  
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	2405	  	 c.      Changes

	 2406
 2407
	  	 1.      The Contracting Officer may, in writing, without notice to any sureties, order
changes
within the general scope of this contract in the following:

	 2408
 2409
	  	   i.    Drawings, designs, or specifications when supplies to be furnished are to be
specially
manufactured for the Postal Service in accordance with them;

	2410	  	  ii.    Statement of work or description of services;

	2411	  	 iii.    Method of shipment or packing;

	2412	  	 iv.     Places of delivery of supplies or performance of services;

	2413	  	  v.    Delivery or performance schedule;

	2414	  	 vi.     Postal Service furnished property or facilities.

	2415	  	
	 2416
 2417
	  	 2.      Changes pursuant to the Ordering Process and the Operating Period
Volume
Minimum sections in Part 1- Statement of Work are not applicable under this clause.

	2418	  	
	 2419
 2420
 2421
 2422
 2423
	  	 3.      Any other written or oral order (including direction, instruction, interpretation,
or
determination) from the Contracting Officer that causes a change will be treated as a
change order under this paragraph, provided that the aviation supplier gives the
Contracting Officer written notice stating: (a) the date,
circumstances, and source of
the order and (b) that the aviation supplier regards the order as a change order.

	2424	  	
	 2425
 2426
	  	 4.      If any such change affects the cost of performance or the delivery schedule,
the
contract may be modified to effect an equitable adjustment.

	2427	  	
	 2428
 2429
 2430
 2431
	  	 5.      The aviation supplier’s claim for equitable adjustment must be asserted within 60
days
of receiving a written change order, or on a date otherwise agreed to by the parties in
writing. A later claim may be acted upon — but not after final payment under this
contract — if the Contracting Officer decides that the
facts justify such action.

	2432	  	
	 2433
 2434
	  	 6.      Failure to agree to any adjustment is a dispute under Clause B-9, Claims
and
Disputes.

	2435	  	
	2436	  	 d.      Reserved

	2437	  	
	2438	  	 e.      Reserved

	2439	  	
	2440	  	 f.       Reserved

	2441	  	
	2442	  	 g.      Invoices

	 2443
 2444
 2445
 2446
 2447
 2448
	  	 The Postal Service intends to certify payment for services based, in part, upon collected
scanned data. For services based upon scanned data, the
aviation supplier need not submit
an invoice for payment. Rather, payment will be automatically processed, on a weekly basis,
based on the scan data. In addition, certain supplemental charges (including, but not limited
to, charges related
to minimum guaranteed volumes, surface transportation, and non-
achievement of performance standards) may be assessed under the contract.

	2449	  	
	 2450
 2451
 2452
 2453 2454 2455 2456 2457
	  	 Any service requiring invoicing must meet the requirements specified herein. The aviation
supplier shall submit an original invoice (or electronic
invoice if authorized) to the Contracting
Officer’s Representative. All invoices must be submitted within ninety (90) days from
completion of the service or the applicable Operating Period to be eligible for payment.
Invoices received
after ninety (90) days from completion of the service or Operating Period will
be subject to a 10% deduction or a deduction of $10,000, whichever is less, as a liquidated
damage. The aviation supplier shall allow at least twenty-eight (28)
calendar days before
submitting a second invoice to the Postal Service for the same service.

	2458	  	
	2459 2460	  	 To ensure prompt payment, an original paper invoice (or electronic invoice, if authorized) must
contain:

  
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	 2461
 2462
	  	 1.      Aviation supplier’s name, remit to address (including ZIP+4), contact person
and
phone number;

	2463	  	 2.      Unique invoice number and invoice date;

	2464	  	 3.      Contract number;

	2465	  	 4.      A description of the supplies or services and the dates delivered or
performed;

	2466	  	 5.      Points (air stops or facility) of shipment tender and delivery; if
applicable;

	 2467
 2468
	  	 6.      Quantity, unit of measure, unit price(s) and extension(s) of the items delivered;
if
applicable;

	2469	  	 7.      Payment terms, including any discounts offered;

	 2470
 2471
	  	 8.      Name, title, and phone number of the person to be notified in the event of a
defective
invoice; and

	 2472
 2473
	  	 9.      Any additional information required by the contract or specified by the
Contracting
Officer.

	2474	  	
	 2475
 2476
 2477
 2478
	  	 Invoices will be handled in accordance with the Prompt Payment Act (31 U.S.C. 3903) and
Office of Management and Budget (OMB) Circular A-125,
Prompt Payment. Further
guidelines may be found in the Payment Processing and Reconciliation Process sections of
Part I – Statement of Work.

	2479	  	
	 2480
 2481
 2482
 2483
 2484
	  	 h.      Patent Indemnity. The aviation supplier will indemnify the Postal Service and its
officers,
employees and agents against liability, including costs for actual or alleged direct or
contributory infringement of, or inducement to infringe, any United States or foreign patent,
trademark, or copyright, arising out of the
performance of this contract, provided the aviation
supplier is reasonably notified of such claims and proceedings.

	2485	  	
	2486	  	 i.       Payment

	2487	  	 Payment will only be made for:

	 2488
 2489
	  	 1.      Items that have been properly scanned and delivered to the correct delivery
destination
Service Points set forth in this contract, and

	2490	  	
	2491	  	 2.      Other services and charges agreed upon by the parties.

	2492	  	
	 2493
 2494
 2495
	  	 The Postal Service will make payment in accordance with the Prompt Payment Act (31 U.S.C.
3903) and 5 CFR 1315. Payments under this contract may be
made by the Postal Service
either by electronic funds transfer or other method agreed upon by the parties.

	2496	  	
	 2497
 2498
 2499
 2500
 2501
	  	 j.       Risk of Loss. The Postal Service shall be liable for all third-party customer
claims arising from
or in connection with the loss, damage, or delay of any mail transported under this contract,
except to the extent of any insurance proceeds received by the aviation supplier as a result of
a catastrophic loss of an
aircraft or other transport vehicle and attributable to Postal Service
mail.

	2502	  	
	 2503
 2504
 2505
 2506 2507 2508 2509 2510
	  	 k.      Taxes. The contract price includes all applicable federal, state, and local taxes
and duties
except the applicable Federal excise tax on the transportation of property via air. The aviation
supplier is required to report to the Postal Service on an annual basis (October 1), the portion
of the rates listed in
Attachment 10: Pricing that are subject to federal excise tax. The Postal
Service shall hold harmless, save, and defend the aviation supplier from any demand or claim
of, or on behalf of, the IRS or the United States based on the
application of federal excise
taxes applicable to the transportation services performed by the aviation supplier under this
contract.

	2511	  	
	2512	  	 l.       Termination on Notice.

	2513	  	
	2514 2515 2516 2517	  	 1.      This contract does not contain a Termination for Convenience clause. In lieu of
a
Termination for Convenience, either party may terminate this contract without cause
by providing advanced written notice to the non-terminating party and a termination
fee as follows:

	2518	  	

  
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	2519	 		 		 		  	
	  	 	 Advanced Notice

Provided
	 	 Postal Service

Termination Fee
	 	 Aviation Supplier

Termination Fee
	  	  
		 	[*]	 	[*]	 	[*]	  	
		 	[*]	 	[*]	 	[*]	  	
		 	[*]	 	[*]	 	[*]	  	
		 	[*]	 	[*]	 	[*]	  	

			
	2520	  	
	2521	  	
	 2522
 2523
	  	 2.      The terminating party must pay the termination fee corresponding to the advanced
written
notice within ninety (90) of the written notice of termination.

	2524	  	
	 2525
 2526
 2527
 2528
 2529
 2530
 2531
 2532
	  	 3.      If the aviation supplier terminates the contract under this provision, the
aviation
supplier guarantees to provide the Postal Service a daily average capacity through the
effective date of the termination of not less than the daily average capacity offered in
the two most recently completed Operating Periods prior
to the date of the receipt of
the notice of termination, or, if two Operating Periods have not been completed when
the notice of termination is received, the daily average capacity offered shall be at
least equal to the average daily
capacity transported prior to the receipt of the written
notice of termination.

	2533	  	
	 2534
 2535
 2536
 2537
	  	 4.      Either party’s termination under this provision shall not prejudice the
aviation
supplier’s right to payment for services rendered, but neither party shall be liable to
the other for any other damages, fees, or payment except for the termination fee
above.

	2538	  	
	 2539
 2540
 2541
	  	 5.      This clause does not apply to changes in service resulting from the Postal
Service
changing from six (6) days to less than six (6) days of delivery per week. If such a
scenario should occur, refer to the Frequency Adjustment clause of this contract.

	2542	  	
	 2543
 2544
 2545
 2546
 2547
 2548
 2549
 2550
 2551
 2552
 2553
	  	 m.     Termination for Default. The Postal Service may terminate this contract, or any part
hereof,
for default if the aviation supplier fails to cure such default within thirty (30) days of being
advised in writing of such by the Postal Service, or if the aviation supplier fails to provide the
Postal Service, upon request, with
adequate assurances of future performance. In the event
of termination for default, the Postal Service will not be liable to the aviation supplier for any
amount for supplies or services not provided, and the Postal Service shall have any and
all
rights and remedies provided by law, including the right to assess reasonable excess re-
procurement costs. The Postal Service may withhold payment otherwise due the aviation
supplier for services already performed in order to protect
its interest in recouping excess re-
procurement costs, and will promptly determine such costs so as to mitigate damage to the
aviation supplier.

	2554	  	
	2555	  	 n.      Title. Not applicable

	2556	  	
	 2557
 2558
 2559
 2560 2561 2562 2563 2564
	  	 o.      Warranty. The aviation supplier warrants and represents that the services delivered
under this
contract shall be in accordance with the requirements and performance standards set forth in
the contract. With respect to services for which performance standards are set forth in the
contract, the Postal Service’s
exclusive remedy (other than termination for default) shall be
price adjustments as provided in this contract. With respect to all other services, the Postal
Service’s exclusive remedy (other than termination for default) shall be for the
aviation
supplier to promptly correct, replace, or otherwise cure such performance at no cost to the
Postal Service.

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

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	2565	  	
	 2566
 2567
 2568
	  	 p.      Limitation of Liability. Except as otherwise provided by an express or implied
warranty, the
supplier will not be liable to the Postal Service for consequential damages resulting from any
defect or deficiencies in accepted items or services.

	2569	  	
	 2570
 2571
 2572
	  	 q.      Other Compliance Requirements. The aviation supplier will comply with all
applicable
Federal, State, and local laws, executive orders, rules and regulations applicable to its
performance under this contract.

	2573	  	
	 2574
 2575
	  	 r.       Order of Precedence. Any inconsistencies in this solicitation or contract will
be resolved by
giving precedence in the following order:

	2576	  	 1.      Contract clauses;

	2577	  	 2.      Statement of Work;

	2578	  	 3.      Attachments to the Statement of Work;

	2579	  	 4.      Solicitation provisions

	2580	  	 5.      Form 8203;

	2581	  	 6.      Other documents and attachments associated with the contract.

	2582	  	
	2583	  	 s.      Incorporation by Reference. Not applicable

	2584	  	
	2585	  	 t.       Shipping. Not applicable

	2586	  	
	2587	  	
	 2588
 2589
	  	Clause 4-2: Contract Terms and Conditions Required to Implement Policies,
Statutes, or Executive Orders (July 2009) (Tailored)
	2590	  	 a.      Incorporation by Reference. Not applicable

	2591	  	
	2592	  	 b.      Examination of Records.

	 2593
 2594
 2595
	  	 1.      Records. “Records” includes books, documents, accounting procedures
and
practices, and other data, regardless of type and regardless of whether such items are
in written form, in the form of computer data, or in any other form.

	2596	  	
	 2597
 2598
 2599 2600 2601 2602 2603
	  	 2.      Examination of Costs. If this is a cost-type contract, the aviation supplier
must
maintain, and the Postal Service will have the right to examine and audit all records
and other evidence sufficient to reflect properly all costs claimed to have been
incurred or anticipated to be incurred directly or indirectly in
performance of this
contract. This right of examination includes inspection at all reasonable times of the
aviation supplier’s plants, or parts of them, engaged in the performance of this
contract.

	2604	  	
	2605 2606 2607 2608 2609	  	 3.      Cost or Pricing Data. If the aviation supplier is required to submit cost or pricing
data
in connection with any pricing action relating to this contract, the Postal Service, in
order to evaluate the accuracy, completeness, and currency of the cost or pricing
data, will have the right to examine and audit all of the
aviation supplier’s records,
including computations and projections directly, related to:

	2610	  	 a.      The proposal for the contract, subcontract, or modification;

	2611	  	 b.      Pricing of the contract, subcontract, or modification; or

	2612	  	 c.      Performance of the contract, subcontract or modification.

	2613	  	
	2614 2615 2616 2617	  	 4.      Reports. If the aviation supplier is required to furnish cost, funding or
performance
reports, the Contracting Officer or any authorized representative of the Postal Service
will have the right to examine and audit the supporting records and materials, for the
purposes of evaluating:

	2618 2619	  	 a.      The effectiveness of the aviation supplier’s policies and procedures to
produce
data compatible with the objectives of these reports; and

	2620	  	 b.      The data reported.

  
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	2621	  	
	 2622
 2623
 2624
 2625
 2626
	  	 5.      Availability. The aviation supplier must maintain and make available at its office
at all
reasonable times the records, materials, and other evidence described in (b)(1)-(4) of
this clause, for examination, audit, or reproduction, until three years after final
payment under this contract or any longer period required by
statute or other clauses
in this contract. In addition:

	 2627
 2628
 2629
	  	 a.      If this contract is completely or partially terminated, the aviation supplier must
make
available the records related to the work terminated until three years
after any resulting final termination settlement; and

	2630	  	
	 2631
 2632
 2633
 2634
	  	 b.      The aviation supplier must make available records relating to appeals under
the claims
and disputes clause or to litigation or the settlement of claims
arising under or related to this contract. Such records must be made
available until such appeals, litigation or claims are finally resolved.

	2635	  	
	2636	  	
	2637	  	Clause 4-7: Records Ownership (March 2006)
	 2638
 2639
 2640
 2641
	  	Notwithstanding any state law providing for retention of rights in the records, the aviation supplier
agrees that the Postal Service may, at its option, demand and take without
additional compensation all
records relating to the services provided under this agreement. The aviation supplier must turn over
all such records upon request but may retain copies of documents produced by the aviation
supplier.
	2642	  	
	2643	  	
	2644	  	Clause 6-1: Contracting Officer’s Representative (March 2006)
	 2645
 2646
 2647
 2648
	  	The Contracting Officer will appoint a Contracting Officer’s representative (COR), responsible for the
day-to-day administration of the contract, who will serve as the
Postal Service’s point of contact with
the aviation supplier on all routine matters. A copy of the notice of appointment defining the COR’s
authority will be furnished to the aviation supplier upon award of the
contract.
	2649	  	
	 2650
 2651
 2652
 2653
	  	 a.      The COR may be changed at any time by the Postal Service without prior notice to
the
aviation supplier, but notification of the change, including the name and address of the
successor COR, will be promptly provided to the aviation supplier by the Contracting Officer in
writing.

	2654	  	
	2655	  	 b.      The responsibilities and limitations of the COR are as follows:

	 2656
 2657
 2658
 2659
	  	 1.      The COR is responsible for the operational and administrative aspects of the
contract
and technical liaison with the aviation supplier. The COR is responsible also for the
final inspection and acceptance of aviation supplier performance and submitted
reports and has other responsibilities as specified by the
contract.

	2660	  	
	 2661
 2662
 2663
 2664
 2665
	  	 2.      The COR is not authorized to make any commitments or otherwise obligate the
Postal
Service or authorize any changes affecting the contract price, terms, or conditions.
Any aviation supplier request for changes must be referred to the Contracting Officer
directly or through the COR. No such changes may be made
without the Contracting
Officer’s express prior authorization.

	2666	  	
	 2667
 2668
	  	 3.      The COR may place orders for the aviation supplier to transport and process mail
in
accordance with the provisions of the contract at the agreed-upon rate only.

	2669	  	
	2670	  	
	2671	  	Clause 9-1: Convict Labor (March 2006)
	 2672
 2673
 2674
	  	In connection with the work under this contract, the aviation supplier agrees not to employ any person
undergoing sentence of imprisonment, except as provided by E.O. 11755,
December 28, 1973, as
amended and 18 USC 3621 and 3622.
	2675	  	

  
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	2676	  	
	 2677
 2678
	  	Clause 9-2: Contract Work Hours and Safety Standards Act - Overtime
Compensation (March 2006)
	 2679
 2680
 2681
 2682
 2683
	  	 a.      No aviation supplier or subcontractor contracting for any part of the contract work may
require
or permit any laborer or mechanic to work more than 40 hours in any workweek on work
subject to the provisions of the Contract Work Hours and Safety Standards Act, unless the
laborer or mechanic receives compensation at a rate not
less than one-and-one-half times the
laborer’s or mechanic’s basic rate of pay for all such hours worked in excess of 40 hours.

	2684	  	
	 2685
 2686
 2687
 2688
 2689
 2690
	  	 b.      Violation, Liability for Unpaid Wages, and Liquidated Damages. In the event of any
violation
of paragraph a above, the aviation supplier and any subcontractor responsible for the violation
are liable to any affected employee for unpaid wages. The aviation supplier and subcontractor
are also liable to the Postal Service
for liquidated damages, which will be computed for each
laborer or mechanic at $10 for each day on which the employee was required or permitted to
work in violation of paragraph a above.

	2691	  	
	 2692
 2693
 2694
 2695
 2696
 2697
 2698
	  	 c.      Withholding for Unpaid Wages and Liquidated Damages. The Contracting Officer
may
withhold from the aviation supplier, from any moneys payable to the aviation supplier or
subcontractor under this or any other contract with the same aviation supplier, or any other
federally assisted contract subject to the Contract
Work Hours and Safety Standards Act held
by the same aviation supplier, sums as may administratively be determined necessary to
satisfy any liabilities of the aviation supplier or subcontractor for unpaid wages and liquidated
damages
pursuant to paragraph b above.

	2699	  	
	 2700
 2701
 2702
 2703
 2704
 2705
 2706
 2707
 2708
 2709
 2710
	  	 d.      Records. The aviation supplier or subcontractor must maintain for 3 years from
the
completion of the contract for each laborer and mechanic (including watchmen and guards)
working on the contract payroll records which contain the name, address, social security
number, and classification(s) of each such employee,
hourly rates of wages paid, number of
daily and weekly hours worked, deductions made, and actual wages paid. The aviation
supplier or subcontractor must make these records available for inspection, copying, or
transcription by authorized
representatives of the Contracting Officer and the Department of
Labor, and must permit such representatives to interview employees during working hours on
the job. (The Department of Labor information collection and record keeping
requirements in
this paragraph d have been approved by the Office of Management and Budget under OMB
control numbers 1215-0140 and 1215-0017.)

	2711	  	
	2712 2713	  	 e.      Subcontracts. The aviation supplier must insert paragraphs a through d of this
clause in all
subcontracts, and must require their inclusion in all subcontracts at any tier.

	2714	  	
	2715	  	
	2716	  	Clause 9-7: Equal Opportunity (March 2006) (Tailored)
	2717	  	During the performance of this contract, the contractor agrees as follows:
	 2718
 2719
 2720
 2721
 2722 2723 2724 2725 2726
	  	 1.      The contractor may not discriminate against employees or applicants for employment
because
of race, color, religion, sex, or national origin. The contractor will take affirmative action to
ensure that applicants are employed, and that employees are treated during employment,
without regard to race, color, religion, sex,
or national origin. Such action shall include, but not
be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of compensation;
and
selection for training, including apprenticeship. The contractor agrees to post in conspicuous
places, available to employees and applicants for employment, notices to be provided by the
Contracting Officer setting forth the provisions
of this nondiscrimination clause.

	2727	  	
	2728 2729 2730	  	 2.      The contractor, in all solicitations or advertisements for employees placed by or on behalf
of
the contractor, state that all qualified applicants will receive consideration for employment
without regard to race, color, religion, sex, or national origin.

	2731	  	

  
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	 2732
 2733
 2734
 2735
 2736
 2737
	  	 3.      The contractor will send to each labor union or representative of workers with which he has
a
collective bargaining agreement or other contract or understanding, a notice, provided by the
agency Contracting Officer, advising the labor union or workers’ representative of the
contractor’s commitments under section 202 of
Executive Order 11246 of September 24,
1965, and must post copies of the notice in conspicuous places available to employees and
applicants for employment.

	2738	  	
	 2739
 2740
 2741
	  	 4.      The contractor will comply with all provisions of Executive Order (EO) 11246 of
September 24,
1965, as amended, and of the rules, regulations, and relevant orders of the Secretary of
Labor.

	2742	  	
	 2743
 2744
 2745
 2746
 2747
	  	 5.      The contractor will furnish all information and reports required by Executive Order, 11246
of
September 24, 1964, and by the rules, regulations, and orders of the Secretary of Labor, or
pursuant thereto, and will permit access to his books, records, and accounts by the
contracting agency and the Secretary of Labor for
purposes of investigation to ascertain
compliance with such rules, regulations, and orders.

	2748	  	
	 2749
 2750
 2751
 2752
 2753
 2754
 2755
	  	 6.      In the event of the contractor’s non-compliance with the non-discrimination clauses of
this
contract or with any of such rules, regulations, or orders, this contract may be canceled,
terminated, or suspended, in whole or in part and the contractor may be declared ineligible for
further Government contracts in accordance with
procedures authorized in Executive Order
11246 of September 24, 1965, and such other sanctions may be imposed and remedies
invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation,
or order of the
Secretary of Labor, or as otherwise provided by law.

	2756	  	
	 2757
 2758
 2759
 2760
 2761
 2762 2763 2764 2765 2766
	  	 7.      The contractor will include the provisions of paragraphs (1) through (7) in every
subcontract or
purchase order under this contract unless exempted by rules, regulations, or orders of the
Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24,
1965, so that such provisions will be
binding upon each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as may be
directed by the Secretary of Labor as a means of enforcing such provisions including
sanctions for
noncompliance, provided, however, that in the event the contractor becomes
involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such
direction, the contractor may request the United States
to enter into such litigation to protect
the interest of the United States.

	2767	  	
	2768	  	
	2769 2770	  	Clause 9-9: Equal Opportunity Preaward Compliance of Subcontracts (March
2006) (Tailored)
	2771 2772 2773	  	The aviation supplier may not enter into a first-tier subcontract for an estimated or actual amount of $1
million or more without obtaining in writing from the Contracting
Officer a clearance that the proposed
subcontractor is in compliance with equal opportunity requirements and therefore eligible for award.
	2774	  	
	2775	  	
	2776	  	Clause 9-10: Service Contract Act (March 2006)
	2777 2778 2779	  	 a.      This contract is subject to the Service Contract Act of 1965, as amended (41 U.S.C. 351
et
seq.), and to the following provisions and all other applicable provisions of the Act and
regulations of the Secretary of Labor issued under the Act (29 CFR Part 4).

	2780	  	
	2781	  	 b.      

	2782 2783 2784 2785 2786	  	 1)      Each service employee employed in the performance of this contract by the
aviation
supplier or any subcontractor must be: a) paid not less than the minimum monetary
wages and b) furnished fringe benefits in accordance with the wages and fringe
benefits determined by the Secretary of Labor or an authorized
representative, as
specified in any wage determination attached to this contract.

	2787	  	

  
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	2788	  	
	2789	  	 2)      

	 2790
 2791
 2792
 2793
 2794
 2795
 2796
 2797
 2798
 2799
 2800
 2801
	  	 a)      If a wage determination is attached to this contract, the Contracting Officer
must
require that any class of service employees not listed in it and to be
employed under the contract (that is, the work to be performed is not
performed by any classification listed in the wage determination) be
classified by the aviation
supplier so as to provide a reasonable relationship
(that is, appropriate level of skill comparison) between the unlisted
classifications and the classifications in the wage determination. The
conformed class of employees must be paid the
monetary wages and
furnished the fringe benefits determined under this clause. (The information
collection requirements contained in this paragraph b have been approved
by the Office of Management and Budget under OMB control number
1215-
0150.)

	2802	  	
	 2803
 2804
 2805
 2806
 2807
 2808
 2809
 2810
 2811
 2812
 2813
 2814
 2815
 2816
 2817
 2818
	  	 b)      The conforming procedure must be initiated by the aviation supplier before
the
performance of contract work by the unlisted class of employees. A
written report of the proposed conforming action, including information
regarding the agreement or disagreement of the authorized representative
of the employees involved
or, if there is no authorized representative, the
employees themselves, must be submitted by the aviation supplier to the
Contracting Officer no later than 30 days after the unlisted class of
employees performs any contract work. The
Contracting Officer must
review the proposed action and promptly submit a report of it, together with
the agency’s recommendation and all pertinent information, including the
position of the aviation supplier and the employees, to the
Wage and Hour
Division, Employment Standards Administration, U.S. Department of Labor,
for review. Within 30 days of receipt, the Wage and Hour Division will
approve, modify, or disapprove the action, render a final determination in
the
event of disagreement, or notify the Contracting Officer that additional
time is necessary.

	2819	  	
	 2820
 2821
 2822
 2823
 2824
	  	 c)      The final determination of the conformance action by the Wage and Hour
Division will be
transmitted to the Contracting Officer, who must promptly
notify the aviation supplier of the action taken. The aviation supplier must
give each affected employee a written copy of this determination, or it must
be posted as a part of the
wage determination.

	2825	  	
	2826	  	 d)      

	 2827
 2828
 2829
 2830
 2831
 2832
 2833
 2834
 2835
 2836 2837 2838 2839 2840
	  	 i.       The process of establishing wage and fringe benefit rates bearing a
reasonable
relationship to those listed in a wage determination
cannot be reduced to any single formula. The approach used may
vary from determination to determination, depending on the
circumstances. Standard wage and salary administration
practices
ranking various job classifications by pay grade pursuant to point
schemes or other job factors may, for example, be relied upon.
Guidance may also be obtained from the way various jobs are rated
under federal pay systems
(Federal Wage Board Pay System and the
General Schedule) or from other wage determinations issued in the
same locality. Basic to the establishment of conformable wage rates
is the concept that a pay relationship should be maintained
between
job classifications on the basis of the skill required and the duties
performed.

	2841	  	

  
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	2842	  	
	 2843
 2844
 2845
 2846
 2847
 2848
 2849
 2850
 2851
 2852
 2853
 2854
 2855
 2856
	  	 ii.      If a contract is modified or extended or an option is exercised, or if a
contract
succeeds a contract under which the classification in
question was previously conformed pursuant to this clause, a new
conformed wage rate and fringe benefits may be assigned to the
conformed classification by indexing (that is, adjusting)
the previous
conformed rate and fringe benefits by an amount equal to the
average (mean) percentage increase change in the wages and fringe
benefits specified for all classifications to be used on the contract that
are listed in the
current wage determination, and those specified for
the corresponding classifications in the previously applicable wage
determination. If these conforming actions are accomplished before
the performance of contract work by the unlisted
class of employees,
the aviation supplier must advise the Contracting Officer of the action
taken, but the other procedures in b.2(c) above need not be followed.

	2857	  	
	 2858
 2859
 2860
	  	 iii.    No employee engaged in performing work on this contract may be
paid less than the currently
applicable minimum wage specified under
section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended.

	2861	  	
	 2862
 2863
 2864
 2865
 2866
 2867
 2868
	  	 e)      The wage rate and fringe benefits finally determined pursuant to b.2 (a) and
(b) above
must be paid to all employees performing in the classification
from the first day on which contract work is performed by them in the
classification. Failure to pay unlisted employees the compensation agreed
upon by the interested parties
and/or finally determined by the Wage and
Hour Division retroactive to the date the class of employees began contract
work is a violation of the Service Contract Act and this contract.

	2869	  	
	 2870
 2871
 2872
 2873
	  	 f)      Upon discovery of failure to comply with b.2 (a) through (e) above, the
Wage and Hour
Division will make a final determination of conformed
classification, wage rate, and / or fringe benefits that will be retroactive to
the date the class of employees commenced contract work.

	2874	  	
	 2875
 2876
 2877
 2878
 2879
 2880
	  	 3)      If, as authorized pursuant to section 4(d) of the Service Contract Act, the term of
this
contract is more than one year, the minimum monetary wages and fringe benefits
required to be paid or furnished to service employees will be subject to adjustment
after one year and not less often than once every two years, pursuant to
wage
determinations to be issued by the Wage and Hour Division, Employment Standards
Administration of the Department of Labor.

	2881	  	
	 2882
 2883
 2884
 2885
 2886
	  	 c.      The aviation supplier or subcontractor may discharge the obligation to furnish fringe
benefits
specified in the attachment or determined conformably to it by furnishing any equivalent
combinations of bona fide fringe benefits, or by making equivalent or differential payments in
cash in accordance with the applicable rules
set forth in Subpart D of 29 CFR Part 4, and not
otherwise.

	2887	  	
	2888	  	 d.      

	 2889
 2890
 2891 2892 2893 2894 2895
	  	 1)      In the absence of a minimum-wage attachment for this contract, neither the
aviation
supplier nor any subcontractor under this contract may pay any person performing
work under the contract (regardless of whether they are service employees) less than
the minimum wage specified by section 6(a)(1) of the Fair Labor
Standards Act of
1938. Nothing in this provision relieves the aviation supplier or any subcontractor of
any other obligation under law or contract for the payment of a higher wage to any
employee.

	2896	  	

  
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	2897	  	
	2898	  	 2)      

	 2899
 2900
 2901
 2902
 2903
 2904
 2905
 2906
 2907
 2908
 2909
 2910
 2911
	  	 a)      If this contract succeeds a contract subject to the Service Contract Act,
under which
substantially the same services were furnished in the same
locality, and service employees were paid wages and fringe benefits
provided for in a collective bargaining agreement, in the absence of a
minimum wage attachment for this contract
setting forth collectively
bargained wage rates and fringe benefits, neither the aviation supplier nor
any subcontractor under this contract may pay any service employee
performing any of the contract work (regardless of whether or not
the
employee was employed under the predecessor contract), less than the
wages and fringe benefits provided for in the agreement, to which the
employee would have been entitled if employed under the predecessor
contract, including
accrued wages and fringe benefits and any prospective
increases in wages and fringe benefits provided for under the agreement.

	2912	  	
	 2913
 2914
 2915
 2916
 2917
 2918
 2919
 2920
 2921
	  	 b)      No aviation supplier or subcontractor under this contract may be relieved of
the
foregoing obligation unless the limitations of section 4.1(b) of 29 CFR
Part 4 apply or unless the Secretary of Labor or an authorized
representative finds, after a hearing as provided in section 4.10 of 29 CFR
Part 4, that the wages and/or
fringe benefits provided for in the agreement
vary substantially from those prevailing for services of a similar character in
the locality, or determines, as provided in section 4.11 of 29 CFR Part 4,
that the agreement applicable to
service employees under the predecessor
contract was not entered into as a result of arm’s-length negotiations.

	2922	  	
	 2923
 2924
 2925
 2926
 2927
 2928
 2929
 2930
 2931
 2932
 2933
 2934
 2935
 2936
 2937
	  	 c)      If it is found in accordance with the review procedures in 29 CFR 4.10
and/or 4.11 and
Parts 6 and 8 that wages and/or fringe benefits in a
predecessor aviation supplier’s collective bargaining agreement vary
substantially from those prevailing for services of a similar character in the
locality, and/or that the
agreement applicable to service employees under
the predecessor contract was not entered into as a result of arm’s-length
negotiations, the Department will issue a new or revised wage
determination setting forth the applicable wage
rates and fringe benefits.
This determination will be made part of the contract or subcontract, in
accordance with the decision of the Administrator, the Administrative Law
Judge, or the Board of Service Contract Appeals, as the case may
be,
irrespective of whether its issuance occurs before or after award (53 Comp.
Gen. 401 (1973)). In the case of a wage determination issued solely as a
result of a finding of substantial variance, it will be effective as of the date
of
the final administrative decision.

	2938	  	
	 2939
 2940
 2941
 2942
 2943
 2944
 2945
	  	 e.      The aviation supplier and any subcontractor under this contract must notify each
service
employee starting work on the contract of the minimum monetary wage and any fringe
benefits required to be paid pursuant to the contract, or must post the wage determination
attached to this contract. The poster provided by the
Department of Labor (Publication WH
1313) must be posted in a prominent and accessible place at the worksite. Failure to comply
with this requirement is a violation of section 2(a) (4) of the Act and of this contract.
(Approved by the
Office of Management and Budget under OMB control number 1215-0150.)

	2946	  	
	 2947
 2948 2949 2950 2951 2952
	  	 f.       The aviation supplier or subcontractor may not permit services called for by this
contract to be
performed in buildings or surroundings or under working conditions provided by or under the
control or supervision of the aviation supplier or subcontractor that are unsanitary or
hazardous or dangerous to the health or
safety of service employees engaged to furnish these
services, and the aviation supplier or subcontractor must comply with the safety and health
standards applied under 29 CFR Part 1925.

	2953	  	

  
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	2954	  	 g.      

	 2955
 2956

2957
 2958

2959
 2960

2961
	  	 1)      The aviation supplier and each subcontractor performing work subject to the Act
must
maintain for 3 years from the completion of the work records containing the
information specified in (a) through (f) following for each employee subject to
the Service Contract Act and must make them available for inspection and
transcription
by authorized representatives of the Wage and Hour Division, Employment Standards
Administration of the U.S. Department of Labor (approved by the Office of
Management and Budget under OMB control numbers 1215-0017 and
1215-0150):

	2962	  	 a)      Name, address, and social security number of each employee.

	2963	  	
	 2964
 2965

2966
	  	 b)      The correct work classification, rate or rates of monetary wages paid and
fringe
benefits provided, rate or rates of fringe benefit payments in lieu
thereof, and total daily and weekly compensation of each employee.

	2967	  	
	2968	  	 c)      The number of daily and weekly hours so worked by each employee.

	2969	  	
	 2970
 2971
	  	 d)      Any deductions, rebates, or refunds from the total daily or weekly
compensation of each
employee.

	2972	  	
	 2973
 2974

2975
 2976

2977
 2978
	  	 e)      A list of monetary wages and fringe benefits for those classes of service
employees not
included in the wage determination attached to this contract
but for whom wage rates or fringe benefits have been determined by the
interested parties or by the Administrator or authorized representative
pursuant to paragraph b above. A
copy of the report required by b.2 (b)
above is such a list.

	2979	  	
	 2980
 2981
	  	 f)      Any list of the predecessor aviation supplier’s employees furnished to
the
aviation supplier pursuant to section 4.6(1) (2) of 29 CFR Part 4.

	2982	  	
	 2983
 2984
	  	 2)      The aviation supplier must also make available a copy of this contract for inspection
or
transcription by authorized representatives of the Wage and Hour Division.

	2985	  	
	 2986
 2987

2988
 2989

2990
 2991
	  	 3)      Failure to make and maintain or to make available the records specified in
this
paragraph g for inspection and transcription is a violation of the regulations and
this contract, and in the case of failure to produce these records, the Contracting Officer,
upon direction of the Department of Labor and notification
of the aviation supplier,
must take action to suspend any further payment or advance of funds until the
violation ceases.

	2992	  	
	 2993
 2994

2995
	  	 4)      The aviation supplier must permit authorized representatives of the Wage and
Hour
Division to conduct interviews with employees at the worksite during normal working
hours.

	2996	  	
	 2997
 2998

2999
 3000

3001
 3002
	  	 h.      The aviation supplier must unconditionally pay to each employee subject to the
Service
Contract Act all wages due free and clear and without subsequent deduction (except as
otherwise provided by law or regulations, 29 CFR Part 4), rebate, or kickback on any account.
Payments must be made no later than one pay
period following the end of the regular pay
period in which the wages were earned or accrued. A pay period under the Act may not be of
any duration longer than semimonthly.

	3003	  	
	 3004
 3005

3006 3007 3008 3009 3010
	  	 i.       The Contracting Officer must withhold or cause to be withheld from the Postal Service
aviation
supplier under this or any other contract with the aviation supplier such sums as an
appropriate official of the Department of Labor requests or the Contracting Officer decides
may be necessary to pay underpaid employees employed
by the aviation supplier or
subcontractor. In the event of failure to pay employees subject to the Act wages or fringe
benefits due under the Act, the Postal Service may, after authorization or by direction of the
Department of Labor and
written notification to the aviation supplier, suspend any further

  
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	 3011
 3012
 3013
 3014
	  	 payment or advance of funds until the violations cease. Additionally, any failure to comply with
the requirements of this clause may be grounds for
termination of the right to proceed with the
contract work. In this event, the Postal Service may enter into other contracts or arrangements
for completion of the work, charging the aviation supplier in default with any additional
cost.

	3015	  	
	 3016
 3017
 3018
	  	 j.       The aviation supplier agrees to insert this clause in all subcontracts subject to the
Act. The
term “aviation supplier,” as used in this clause in any subcontract, is deemed to refer to the
subcontractor, except in the term “aviation supplier.”

	3019	  	
	 3020
 3021
 3022
 3023
 3024
 3025
	  	 k.      Service employee means any person engaged in the performance of this contract other
than
any person employed in a bona fide executive, administrative, or professional capacity, as
those terms are defined in Part 541 of Title 29, Code of Federal Regulations, as of July 30,
1976, and any subsequent revision of
those regulations. The term includes all such persons
regardless of any contractual relationship that may be alleged to exist between an aviation
supplier or subcontractor and them.

	3026	  	
	3027	  	 l.       

	 3028
 3029
 3030
 3031
 3032
 3033
 3034
 3035
 3036
 3037
 3038
 3039
 3040
	  	 1)      If wages to be paid or fringe benefits to be furnished service employees employed by
the
aviation supplier or a subcontractor under the contract are provided for in a
collective bargaining agreement that is or will be effective during any period in which
the contract is being performed, the aviation supplier must report this fact
to the
Contracting Officer, together with full information as to the application and accrual of
these wages and fringe benefits, including any prospective increases, to service
employees engaged in work on the contract, and furnish a copy
of the agreement.
The report must be made upon starting performance of the contract, in the case of
collective bargaining agreements effective at the time. In the case of agreements or
provisions or amendments thereof effective at a later
time during the period of
contract performance, they must be reported promptly after their negotiation.
(Approved by the Office of Management and Budget under OMB control number
1215-0150.)

	3041	  	
	 3042
 3043
 3044
 3045
 3046
 3047
 3048
 3049
 3050 3051 3052 3053 3054
	  	 2)      Not less than 10 days before completion of any contract being performed at a
Postal
facility where service employees may be retained in the performance of a succeeding
contract and subject to a wage determination containing vacation or other benefit
provisions based upon length of service with a aviation supplier
(predecessor) or
successor (section 4.173 of Regulations, 29 CFR Part 4), the incumbent aviation
supplier must furnish to the Contracting Officer a certified list of the names of all
service employees on the aviation supplier’s or
subcontractor’s payroll during the last
month of contract performance. The list must also contain anniversary dates of
employment on the contract, either with the current or predecessor aviation suppliers
of each such service employee.
The Contracting Officer must turn over this list to the
successor aviation supplier at the commencement of the succeeding contract.
(Approved by the Office of Management and Budget under OMB control number
1215-0150.)

	3055	  	
	3056 3057	  	 m.     Rulings and interpretations of the Service Contract Act of 1965, as amended, are contained
in
Regulations, 29 CFR Part 4.

	3058	  	
	3059	  	 n.      

	3060 3061 3062 3063	  	 1)      By entering into this contract, the aviation supplier and its officials certify that
neither
they nor any person or firm with a substantial interest in the aviation supplier’s firm are
ineligible to be awarded government contracts by virtue of the sanctions imposed
pursuant to section 5 of the Act.

	3064	  	
	3065 3066	  	 2)      No part of this contract may be subcontracted to any person or firm ineligible for
award
of a government contract pursuant to section 5 of the Act.

	3067	  	

  
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	 3068
 3069
	  	 3)      The penalty for making false statements is prescribed in the U.S. Criminal Code,
18
U.S.C. 1001.

	3070	  	
	 3071
 3072
 3073
 3074
 3075
	  	 o.      Notwithstanding any of the other provisions of this clause, the following employees may
be
employed in accordance with the following variations, tolerances, and exemptions, which the
Secretary of Labor, pursuant to section 4(b) of the Act before its amendment by Public Law
92-473, found to be necessary and proper in the public
interest or to avoid serious impairment
of the conduct of government business:

	3076	  	
	 3077
 3078
 3079
 3080
 3081
 3082
 3083
 3084
 3085
	  	 1)      Apprentices, student-learners, and workers whose earning capacity is impaired by
age, or
physical or mental deficiency or injury may be employed at wages lower than
the minimum wages otherwise required by section 2(a)(1) or 2(b)(1) of the Service
Contract Act without diminishing any fringe benefits or cash payments in lieu
thereof
required under section 2(a)(2) of the Act, in accordance with the conditions and
procedures prescribed for the employment of apprentices, student-learners,
handicapped persons, and handicapped clients of sheltered workshops under
section
14 of the Fair Labor Standards Act of 1938, in the regulations issued by the
Administrator (29 CFR Parts 520, 521, 524, and 525).

	3086	  	
	 3087
 3088
 3089
 3090
 3091
 3092
 3093
 3094
	  	 2)      The Administrator will issue certificates under the Service Contract Act for
the
employment of apprentices, student-learners, handicapped persons, or handicapped
clients of sheltered workshops not subject to the Fair Labor Standards Act of 1938, or
subject to different minimum rates of pay under the two Acts,
authorizing appropriate
rates of minimum wages (but without changing requirements concerning fringe
benefits or supplementary cash payments in lieu thereof), applying procedures
prescribed by the applicable regulations issued under the Fair
Labor Standards Act of
1938 (29 CFR Parts 520, 521, 524, and 525).

	3095	  	
	3096 3097 3098	  	 3)      The Administrator will also withdraw, annul, or cancel such certificates in
accordance
with the regulations in Parts 525 and 528 of Title 29 of the Code of Federal
Regulations.

	3099	  	
	 3100
 3101
 3102
 3103
 3104
 3105
 3106
 3107
 3108
 3109
 3110
 3111
 3112
	  	 p.      Apprentices will be permitted to work at less than the predetermined rate for the work
they
perform when they are employed and individually registered in a bona fide apprenticeship
program registered with a State Apprenticeship Agency recognized by the U.S. Department of
Labor, or if no such recognized agency exists in a
state, under a program registered with the
Bureau of Apprenticeship and Training, Employment and Training Administration, U.S.
Department of Labor. Any employee not registered as an apprentice in an approved program
must be paid the wage
rate and fringe benefits contained in the applicable wage determination
for the journeyman classification of work actually performed. The wage rates paid apprentices
may not be less than the wage rate for their level of progress set forth in
the registered
program, expressed as the appropriate percentage of the journeyman’s rate contained in the
applicable wage determination. The allowable ratio of apprentices to journeymen employed
on the contract work in any craft
classification may not be greater than the ratio permitted to
the aviation supplier for its entire workforce under the registered program.

	3113	  	
	 3114
 3115 3116 3117 3118 3119
	  	 q.      An employee engaged in an occupation in which he or she customarily and regularly
receives
more than $30 a month tips may have the amount of tips credited by the employer against the
minimum wage required by section 2(a) (1) or section 2(b) (1) of the Act in accordance with
section 3(m) of the Fair Labor Standards Act
and Regulations, 29 CFR Part 531. However, the
amount of this credit may not exceed $1.24 per hour beginning January 1, 1980, and $1.34
per hour after December 31, 1980. To utilize this proviso:

	3120 3121	  	 1)      The employer must inform tipped employees about this tip credit allowance before
the
credit is utilized;

	3122	  	

  
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	 3123
 3124
 3125
	  	 2)      The employees must be allowed to retain all tips (individually or through a
pooling
arrangement and regardless of whether the employer elects to take a credit for tips
received);

	3126	  	
	 3127
 3128
 3129
 3130
	  	 3)      The employer must be able to show by records that the employee receives at least
the
applicable Service Contract Act minimum wage through the combination of direct
wages and tip credit (approved by the Office of Management and Budget under OMB
control number 1214-0017); and

	3131	  	
	 3132
 3133
	  	 4)      The use of tip credit must have been permitted under any predecessor
collective
bargaining agreement applicable by virtue of section 4(c) of the Act.

	3134	  	
	 3135
 3136
 3137
 3138
 3139
	  	 r.       Disputes arising out of the labor standards provisions of this contract are not
subject to the
Claims and Disputes clause but must be resolved in accordance with the procedures of the
Department of Labor set forth in 29 CFR Parts 4, 6, and 8. Disputes within the meaning of this
clause include disputes between
the aviation supplier (or any of its subcontractors) and the
Postal Service, the U.S. Department of Labor, or the employees or their representatives.

	3140	  	
	3141	  	
	 3142
 3143
	  	Clause 9-12: Fair Labor Standards Act and Service Contract Act - Price
Adjustment (February 2010)
	 3144
 3145
	  	 a.      The aviation supplier warrants that the contract prices do not include allowance for
any
contingency to cover increased costs for which adjustment is provided under this clause.

	3146	  	
	 3147
 3148
 3149
 3150
 3151
 3152
 3153
	  	 b.      The minimum prevailing wage determination, including fringe benefits, issued under
the
Service Contract Act of 1965 by the Department of Labor (DOL), current at least every two
years after the original award date, current at the beginning of any option or renewal period, or
in the case of a significant change in labor
requirements, applies to this contract and any
exercise of an option or renewal of this contract. When no such determination has been made
as applied to this contract, the minimum wage established in accordance with the Fair Labor
Standards
Act applies to any exercise of an option or renewal of this contract.

	3154	  	
	 3155
 3156
 3157
 3158
 3159
 3160
 3161
 3162
 3163
 3164
 3165
 3166
 3167
	  	 c.      When, as a result of the determination of minimum prevailing wages and fringe
benefits
applicable (1) every two years after original award date, (2) at the beginning of any option or
renewal period, or (3) in the case of a significant change in labor requirements, an increased
or decreased wage determination is
applied to this contract, or when as a result of any
amendment to the Fair Labor Standards Act enacted after award that affects minimum wage,
and whenever such a determination becomes applicable to this contract under law, the
aviation
supplier increases or decreases wages or fringe benefits of employees working on the
contract to comply, the aviation supplier and the Contracting Officer will negotiate whether and
to what extent either party will absorb the costs of the wage
change. Any resulting change in
contract price is limited to increases or decreases in wages or fringe benefits, and the
concomitant increases or decreases in Social Security, unemployment taxes, and workers’
compensation insurance,
but may not otherwise include any amount for general and
administrative costs, overhead, or profit.

	3168	  	
	 3169
 3170
 3171
 3172
 3173
 3174 3175 3176 3177 3178
	  	 d.      The aviation supplier or Contracting Officer may request a contract price adjustment within
30
days of the effective date of a wage change. If a request for contract price adjustment has
been made, and the parties have not reached an agreement within thirty days of that request,
the Contracting Officer should issue a unilateral
change order in the amount considered to be
a fair and equitable adjustment. The aviation supplier may then either accept the amount, or
the aviation supplier may file a claim under Clause B-9: Claims and Disputes unless
the
Contracting Officer and aviation supplier extend this period in writing. Upon agreement of the
parties, the contract price or unit price labor rates will be modified in writing. Pending
agreement on or determination of any such
adjustment and its effective date, the aviation
supplier must continue performance.

  
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	3179	  	
	 3180
 3181
 3182
	  	 e.      The Contracting Officer or the Contracting Officer’s authorized representative must,
for 3
years after final payment under the contract, be given access to and the right to examine any
directly pertinent books, papers, and records of the aviation supplier.

	3183	  	
	3184	  	
	 3185
 3186
	  	Clause 9-13: Affirmative Action for Workers with Disabilities (March 2006)
(Tailored)
	 3187
 3188
 3189
 3190
 3191
 3192
	  	 a.      The contractor will not discriminate against any employee or applicant for
employment
because of physical or mental disability in regard to any position for which the employee or
applicant for employment is qualified. The contractor agrees to take affirmative action to
employ, advance in employment, and otherwise
treat qualified individuals with disabilities
without discrimination based on their physical or mental disability in all employment practices,
including the following:

	3193	  	 1.      Recruitment, advertising, and job application procedures;

	3194	  	
	 3195
 3196
	  	 2.      Hiring, upgrading, promotion, award of tenure, demotion, transfer, layoff,
termination,
right of return from layoff and rehiring

	3197	  	
	3198	  	 3.      Rates of pay or any other form of compensation and changes in
compensation

	3199	  	
	 3200
 3201
	  	 4.      Job assignments, job classifications, organizational structures, position
descriptions,
lines of progression, and seniority lists

	3202	  	
	3203	  	 5.      Leaves of absence, sick leave, or any other leave

	 3204
 3205
	  	 6.      Fringe benefits available by virtue of employment, whether or not administered by
the
contractor

	3206	  	
	 3207
 3208
 3209
	  	 7.      Selection and financial support for training, including apprenticeship,
professional
meetings, conferences, and other related activities, and selection for leaves of
absence to pursue training

	3210	  	
	3211	  	 8.      Activities sponsored by the contractor including social or recreational programs;
and

	3212	  	
	3213	  	 9.      Any other term, condition, or privilege of employment.

	3214	  	
	 3215
 3216
	  	 b.      The contractor agrees to comply with the rules, regulations, and relevant orders of
the
Secretary of Labor issued pursuant to the Rehabilitation Act of 1973, as amended.

	3217	  	
	 3218
 3219
 3220
	  	 c.      In the event of the contractor’s noncompliance with the requirements, actions
for
noncompliance may be taken in accordance with the rules, regulations, and relevant orders of
the Secretary of Labor issued pursuant to the act.

	3221	  	
	 3222
 3223
 3224
 3225
 3226 3227 3228 3229 3230
	  	 d.      The contractor agrees to post in conspicuous places, available to employees and
applicants
for employment, notices in a form to be prescribed by the Deputy Assistant Secretary for
Federal Contract Compliance Programs, provided by or through the Contracting Officer. Such
notices shall state the rights of applicants and
employees as well as the contractor’s obligation
under the law to take affirmative action to employ and advance in employment qualified
employees and applicants with disabilities. The contractor must ensure that applicants
and
employees with disabilities are informed of the contents of the notice (e.g., the contractor may
have the notice read to a visually disabled individual, or may lower the posted notice so that it
might be read by a person in a
wheelchair).

	3231	  	
	3232 3233 3234	  	 e.      The contractor will notify each labor organization or representative of workers with which
it has
a collective bargaining agreement or other understanding that the contractor is bound by the
terms of section 503 of the Rehabilitation Act of 1973, as amended, and is committed to take

  
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	 3235
 3236
	  	          affirmative action to employ and advance in employment individuals with
physical or mental
disabilities.

	3237	  	
	 3238
 3239
 3240
 3241
 3242
 3243
 3244
	  	 f.       The contractor must include the provisions of this clause in every subcontract or
purchase
order in excess of $10,000, unless exempted by the rules, regulations, or orders of the
Secretary issued pursuant to section 503 of the Act, as amended, so that such provisions will
be binding upon each subcontractor or vendor. The
contractor will take such action with
respect to any subcontract or purchase order as the Deputy Assistant Secretary for Federal
Contract Compliance Programs may direct to enforce such provisions, including action
for
noncompliance.

	3245	  	
	3246	  	
	 3247
 3248
 3249
	  	Clause 9-14: Equal Opportunity for Disabled Veterans, Recently Separated
Veterans, Other Protected Veterans, and Armed Forces Service Medal Veterans
(February 2010)
(Tailored)
	 3250
 3251
 3252
 3253
 3254
 3255
 3256
 3257
	  	 a.      The contractor will not discriminate against any employee or applicant for
employment
because he or she is a disabled veteran, recently separated veteran, other protected veteran,
or Armed Forces service medal veteran in regard to any position for which the employee or
applicant for employment is qualified. The
contractor agrees to take affirmative action to
employ, advance in employment and otherwise treat qualified individuals without
discrimination based on their status as a disabled veteran, recently separated veteran, other
protected veteran,
or Armed Forces service medal veteran in all employment practices,
including the following:

	3258	  	
	3259	  	 1.      Recruitment, advertising, and job application procedures;

	3260	  	
	 3261
 3262
	  	 2.      Hiring, upgrading, promotion, award of tenure, demotion, transfer, layoff,
termination,
right of return from layoff and rehiring;

	3263	  	
	3264	  	 3.      Rates of pay or any other form of compensation and changes in
compensation;

	3265	  	
	 3266
 3267
	  	 4.      Job assignments, job classifications, organizational structures, position
descriptions,
lines of progression, and seniority lists;

	3268	  	
	3269	  	 5.      Leaves of absence, sick leave, or any other leave;

	3270	  	
	 3271
 3272
	  	 6.      Fringe benefits available by virtue of employment, whether or not administered by
the
contractor;

	3273	  	
	 3274
 3275
 3276
	  	 7.      Selection and financial support for training, including apprenticeship, and
on-the-job
training under 38 U.S.C. 3687, professional meetings, conferences, and other related
activities, and selection for leaves of absence to pursue training;

	3277	  	
	3278	  	 8.      Activities sponsored by the contractor including social or recreational programs;
and

	3279	  	
	3280	  	 9.      Any other term, condition, or privilege of employment.

	3281	  	
	 3282
 3283
 3284
 3285
 3286 3287 3288 3289 3290
	  	 b.      The contractor agrees to immediately list all employment openings which exist at the time
of
the execution of this contract and those which occur during the performance of this contract,
including those not generated by this contract and including those occurring at an
establishment of the contractor other than the one where the
contract is being performed, but
excluding those of independently operated corporate affiliates, with the appropriate
employment service delivery system where the opening occurs. Listing employment openings
with the state workforce agency
job bank or with the local employment service delivery system
where the opening occurs will satisfy the requirement to list jobs with the appropriate
employment service delivery system.

	3291	  	

  
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	3292	  	
	 3293
 3294

3295
 3296

3297
 3298

3299
 3300
	  	 c.      Listing of employment openings with the appropriate employment service delivery
system
pursuant to this clause shall be made at least concurrently with the use of any other
recruitment source or effort and shall involve the normal obligations which attach to the
placing of a bona fide job order, including the
acceptance of referrals of veterans and
nonveterans. The listing of employment openings does not require the hiring of any particular
job applicants or from any particular group of job applicants, and nothing herein is intended to
relieve
the contractor from any requirements in Executive orders or regulations regarding
nondiscrimination in employment.

	3301	  	
	 3302
 3303

3304
 3305

3306
 3307

3308
	  	 d.      Whenever a contractor, other than a state or local governmental contractor,
becomes
contractually bound to the listing provisions in paragraphs 2 and 3 of this clause, it shall advise
the state workforce agency in each state where it has establishments of the name and location
of each hiring location in the state.
As long as the contractor is contractually bound to these
provisions and has so advised the state agency, there is no need to advise the state agency of
subsequent contracts. The contractor may advise the state agency when it is no longer
bound
by this contract clause.

	3309	  	
	 3310
 3311

3312
 3313

3314
	  	 e.      The provisions of paragraphs 2 and 3 of this clause do not apply to the listing of
employment
openings which occur and are filled outside of the 50 states, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, the
Commonwealth of the Northern Mariana Islands, Wake Island, and
the Trust Territories of the
Pacific Islands.

	3315	  	
	3316	  	 f.       As used in this clause:

	3317	  	
	 3318
 3319

3320
 3321

3322
	  	 1.      All employment openings includes all positions except executive and
senior
management, those positions that will be filled from within the contractor’s
organization, and positions lasting three days or less. This term includes full-time
employment, temporary employment of more than three days’
duration, and part-time
employment.

	3323	  	
	 3324
 3325

3326
 3327

3328
 3329

3330
 3331

3332
 3333

3334
 3335

3336
	  	 2.      Executive and senior management means: (1) Any employee (a) compensated on
a
salary basis at a rate of not less than $455 per week (or $380 per week, if employed
in American Samoa by employers other than the Federal Government), exclusive of
board, lodging or other facilities; (b) whose primary duty is management
of the
enterprise in which the employee is employed or of a customarily recognized
department or subdivision thereof; (c) who customarily and regularly directs the work
of two or more other employees; and (d) who has the authority to hire
or fire other
employees or whose suggestions and recommendations as to the hiring, firing,
advancement, promotion or any other change of status of other employees are given
particular weight; or (2) any employee who owns at least a bona
fide 20-percent
equity interest in the enterprise in which the employee is employed, regardless of
whether the business is a corporate or other type of organization, and who is actively
engaged in its management.

	3337	  	
	 3338
 3339 3340 3341 3342
3343
	  	 3.      Positions that will be filled from within the contractor’s organization
means
employment openings for which no consideration will be given to persons outside the
contractor’s organization (including any affiliates, subsidiaries, and parent companies)
and includes any openings which the contractor
proposes to fill from regularly
established “recall” lists. The exception does not apply to a particular opening once
an employer decides to consider applicants outside of his or her own organization.

	3344	  	
	3345 3346	  	 g.      The contractor agrees to comply with the rules, regulations, and relevant orders of
the
Secretary of Labor issued pursuant to the Act.

	3347	  	

  
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	 3348
 3349
 3350
	  	 h.      In the event of the contractor’s noncompliance with the requirements of this clause,
actions for
noncompliance may be taken in accordance with the rules, regulations, and relevant orders of
the Secretary of Labor issued pursuant to the Act.

	3351	  	
	 3352
 3353
 3354
 3355
 3356
 3357
 3358
 3359
 3360
 3361
	  	 i.       The contractor agrees to post in conspicuous places, available to employees and
applicants
for employment, notices in a form to be prescribed by the Deputy Assistant Secretary for
Federal Contract Compliance, provided by or through the Contracting Officer. Such notices
shall state the rights of applicants and employees
as well as the contractor’s obligation under
the law to take affirmative action to employ and advance in employment qualified employees
and applicants who are disabled veterans, recently separated veterans, other protected
veterans, or
Armed Forces service medal veterans. The contractor must ensure that
applicants or employees who are disabled veterans are informed of the contents of the notice
(e.g., the contractor may have the notice read to a visually disabled individual,
or may lower
the posted notice so that it might be read by a person in a wheelchair).

	3362	  	
	 3363
 3364
 3365
 3366
 3367
 3368
	  	 j.       The contractor will notify each labor organization or representative of workers with
which it has
a collective bargaining agreement or other contract understanding, that the contractor is
bound by the terms of the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as
amended, and is committed to take
affirmative action to employ and advance in employment
qualified disabled veterans, recently separated veterans, other protected veterans, and Armed
Forces service medal veterans.

	3369	  	
	 3370
 3371
 3372 3373 3374 3375 3376
	  	 k.      The contractor will include the provisions of this clause in every subcontract or purchase
order
of $100,000 or more, unless exempted by the rules, regulations, or orders of the Secretary
issued pursuant to the Vietnam Era Veterans’ Readjustment Assistance Act of 1974, as
amended, so that such provisions will be binding upon
each subcontractor or vendor. The
contractor will take such action with respect to any subcontract or purchase order as the
Deputy Assistant Secretary for Federal Contract Compliance may direct to enforce such
provisions, including action
for noncompliance.

	3377	  	
	3378	  	
	3379	  	Contract Term
	3380 3381 3382	  	The contract base period of performance will be October 1, 2013, through September 30, 2020, with
two, five year renewal periods to be exercised by mutual agreement of the
parties. The Night Network
will begin operation on September 30, 2013; the Day Network will begin operation on October 1, 2013.
	3383	  	
	3384	  	
	3385	  	Renewal Process
	3386	  	[*]
	3387	  	
	3388	  	
	3389	  	
	3390	  	
	3391	  	Amendments or Modifications
	3392 3393 3394	  	In order to be binding upon the Postal Service or the aviation supplier, any amendment or modification
of this Contract must be in writing signed by the Contracting Officer on
behalf of the Postal Service
and an officer of the aviation supplier authorized to bind the company.
	3395	  	
	3396	  	
	3397	  	Assignment
	3398 3399 3400 3401	  	Neither Party shall, directly or indirectly (whether by succession, merger, or otherwise) assign,
delegate, novate, or otherwise transfer this Contract or any of its rights or
obligations hereunder,
without the prior written approval of the other. However, the aviation supplier may assign this contract
to any of its internal business affiliates upon written notice to the Postal Service.
	3402	  	

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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	3403	  	
	3404	  	Bankruptcy
	 3405
 3406
 3407 3408 3409 3410 3411
	  	In the event the aviation supplier enters into proceedings relating to bankruptcy, whether voluntary or
involuntary, the aviation supplier will furnish, by certified mail,
written notification of the bankruptcy to
the Contracting Officer responsible for administering the contract. The notification must be furnished
within five days of the initiation of the bankruptcy proceedings. The notification must include
the date
on which the bankruptcy petition was filed, the court in which the petition was filed, and a list of Postal
Service contracts and Contracting Officers for all Postal Service contracts for which final payment has
not yet been made.
This obligation remains in effect until final payment under this contract.
	3412	  	
	3413	  	
	3414	  	Confidentiality
	3415 3416 3417 3418	  	 a.      During the term of this contract and until the earlier of five (5) years after such
termination or
until such time as the information is no longer confidential as described below, each party
shall treat as confidential and appropriately safeguard and shall not use for the benefit of any
person or corporation other than the
other party:

	3419	  	
	3420 3421	  	 1.      Written information identified in writing as confidential or oral information
promptly
confirmed in writing as being confidential;

	3422	  	
	3423 3424 3425 3426	  	 2.      Written information or oral information disclosed by the parties during the
negotiation
of this contract and written information or oral information promptly confirmed in
writing as confidential pertaining to a party’s pricing, business or assets which is
received at any time from a party that is identified in
writing; or

	3427	  	
	3428 3429 3430	  	 3.      Any information or knowledge concerning the methods of operation, promotion, sale,
or
distribution used by a party which may be communicated to the other party or which
a party may otherwise acquire by virtue of its performance of this Agreement.

	3431	  	
	3432 3433	  	 b.      Notwithstanding the provisions of subparagraphs 1 through 3, above, neither party shall
be
required to obtain prior written approval before providing information regarding this contract:

	3434	  	
	3435 3436	  	 1.       To Members of Congress serving on a committee or subcommittee with
oversight
responsibility of the Postal Service;

	3437	  	
	3438	  	 2.       In response to legal process or otherwise required by law;

	3439	  	
	3440 3441	  	 3.       In response to a request from the Department of Justice Antitrust Division attorneys
or
economists in pursuit of a non-public investigation; or

	3442	  	
	3443 3444 3445	  	 4.       In response to requests submitted to the Postal Service under the Freedom
of
Information Act. In this regard, the Postal Service shall follow the procedures
promulgated at 39 CFR Section 265.8.

	3446	  	
	3447	  	 c.      Information shall not be considered confidential if it is:

	3448	  	 1.       Generally known to the trade or public;

	3449	  	 2.       Rightfully possessed by a party prior to the effective date of this
contract;

	3450	  	 3.       Received by a party from a third party which rightfully possesses
it;

	3451	  	 4.       Independently developed by the other party; or

	3452 3453	  	 5.       Releasable pursuant to Postal Service regulations addressing how information
is
maintained by the Postal Service.

	3454	  	
	3455	  	

  
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	3456	  	Entire Agreement
	 3457
 3458
 3459
	  	This Contract, together with all Attachments, constitutes the entire agreement and understanding
between the Parties in connection with the subject matter described, and
supersedes and cancels all
previous negotiations, commitments, and writings related to the subject matter.
	3460	  	
	3461	  	
	3462	  	Force Majeure
	 3463
 3464
 3465
 3466
	  	Both the Postal Service and the aviation supplier shall be excused from their obligations for volume
guarantees or service performance, respectively, under this Contract, and
neither Party shall be liable
to the other or any other person or entity for loss, damage, delay, mis-delivery or non-delivery of
shipments transported pursuant to this Contract, resulting in whole or in part from any of the
following:
	3467	  	
	 3468
 3469
 3470
 3471
	  	 a.      When there occurs a State or Federal government-declared State of Emergency and /
or
instructions by a government agency that has actual or apparent powers or authority
(including, but not limited to, the Federal Aviation Administration (FAA) or the Transportation
Security Administration (TSA)) to order airport closures
or limitations on airport activity;

	3472	  	
	 3473
 3474
 3475
 3476
 3477
 3478
	  	 b.      When the failure to meet contractual obligations results in whole or in part from
public
enemies, terrorist acts, criminal acts of any person or entity, public authorities acting with
actual or apparent authority (including U.S. Postal Inspectors), civil commotion, hazards
incident to a state of war, national disruptions
in transportation networks or operations (of any
mode) of the aviation supplier, Postal Service, or any other entity, strikes, natural disasters, or
disruption or failure of third-party communication and information systems;
or

	3479	  	
	3480	  	 c.      When there exist any conditions that present a danger to each Party’s
personnel.

	3481	  	
	 3482
 3483
 3484
 3485
	  	 d.      In every case the failure to perform must be beyond the control and without the fault
or
negligence of the party claiming that its performance is excused. Each Party is required to
continue and attempt to recommence performance to the greatest extent possible without
delay.

	3486	  	
	 3487
 3488
 3489
 3490
 3491
 3492
 3493
 3494
 3495 3496 3497 3498 3499
	  	It is the responsibility of the Party asserting the Force Majeure event to formally declare that a Force
Majeure event has taken place within twenty-four (24) hours of the event,
except when the event
occurs on a Friday, Saturday or Sunday. Declaration of a Force Majeure event that occurs on a Friday,
Saturday, or Sunday must be made by the close of business on the following Monday, except when
the Monday falls on a
holiday, then it must be declared by the close of business on the following
Tuesday. The party declaring the Force Majeure event must document the circumstances of the event
in writing to the Contracting Officer’s Representative, who will
review the information with the
Manager, Air Transportation Operations, and relevant aviation supplier officials. In the absence of a
formal request for relief under this clause, all appropriate volume guarantees and performance
standards
will remain in force. Except for the calculation of the service levels, nothing in this section
shall relieve or excuse the aviation supplier of its service obligations. Subsequent to a Force Majeure
event being declared, the declaring party
must provide reasonable, written documentation with
sufficient detail to support the declaration.
	3500	  	
	3501 3502 3503	  	If, as a result of the occurrence of one of the foregoing events, the aviation supplier is excused from
performance, and the Postal Service is excused from meeting its minimum
volume commitment for the
identified period, the Parties will meet to agree upon the pro-rata adjustments to be made.
	3504	  	
	3505 3506 3507	  	On days where mail volume is withdrawn, withheld, or not transported under this provision, the
minimum volume commitment for the identified period will be reduced for that period
by the amount of
that volume.
	3508	  	
	3509	  	

  
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	3510	  	Frequency Adjustment
	 3511
 3512
 3513
 3514
 3515
 3516
	  	If, during the term of this contract, the Postal Service decides to reduce, in whole or in part, the
number of delivery days, for any mail type it provides, to fewer than six (6)
per week, the Postal
Service reserves the right to effectuate a change in delivery days by adjusting the Statement of Work
of this contract, including, but not limited to, the annual number of operating days or the frequency of
service
hereunder. The parties agree that such an adjustment does not constitute a partial termination
of the contract, nor will it give rise to an equitable adjustment.
	3517	  	
	 3518
 3519
 3520
 3521
 3522
 3523
 3524
	  	If the number of delivery days is reduced, in whole or in part, to five (5) and the Postal Service decides
to reduce the number of operating days under this contract, in whole or
in part, to five (5), the parties
agree to reduce the Contract Volume Minimum calculation. The Contract Volume Minimum calculation
will be reduced by the average daily volume for the previous twelve (12) months excluding the weeks
of Peak
associated with the removed day of service without adjustment to the tier structure, the
contract rate, or be subject to any other price-related adjustment. The monies associated with the
volume removed from the calculation will be
eliminated.
	3525	  	
	 3526
 3527
 3528
	  	If the number of delivery days is reduced to fewer than five (5), and the Postal Service decides to
reduce the number of operating days under this contract, in whole or in part,
to fewer than five (5), the
parties will negotiate an equitable adjustment if necessary.
	3529	  	
	 3530
 3531
 3532
	  	No later than 120 days prior to the effective date of such reduction in delivery days, the parties shall
commence discussions as to how to implement the change. Within 90 days of
such notice, the
supplier must implement the changes outlined above.
	3533	  	
	3534	  	
	3535	  	Notices
	 3536
 3537
 3538
 3539 3540 3541 3542 3543
	  	Any notice, report, demand, acknowledgement or other communication which under the terms of this
Contract or otherwise must be given or made by either Party, unless specifically
otherwise provided in
this Contract, shall be in the English language and in writing, and shall be given or made by express
delivery service with proof of delivery, certified air mail (return receipt requested). The parties may
also send a
copy of the same communication through electronic mail, facsimile with acknowledgement
of receipt/proof of receipt, or personal delivery. If a party sends a copy of the official correspondence
by electronic mail or facsimile, the
correspondence shall not be deemed received until the receiving
party confirms receipt.
	3544	  	
	3545 3546 3547 3548	  	Such notice, report, demand, acknowledgement or other communication shall be deemed to have
been given or made in the case of express delivery service with tracking and tracing
capability on the
date of signature of the proof of delivery, and in the case of certified mail on the fifth business day in
the place of receipt after the date sent.
	3549	  	
	3550	  	The notice address for the Postal Service shall be:
	3551	  	 U.S. Postal Service

	3552	  	 Air Transportation CMC

	3553	  	 Attention: Manager

	3554	  	 475 L’Enfant Plaza SW, Room 1P 650

	3555	  	 Washington, DC 20260-0650

	3556	  	
	3557	  	The notice address for the aviation supplier shall be:
	3558	  	 Federal Express Corporation

	3559	  	 Attention: Vice President, Postal Transportation Management

	3560	  	 3610 Hacks Cross Road

	3561	  	 Building A 1st Floor

	3562	  	 Memphis, TN 38125-8800

	3563	  	
	3564	  	

  
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	3565	  	Severability
	 3566
 3567
 3568
 3569
 3570
 3571
	  	 a.      If any term, provision, covenant or condition of this Contract is held by a court or Board
of
competent jurisdiction or by a request, direction or indication of an agency or department of a
Governmental Body having subject matter jurisdiction to be invalid or unenforceable, the
remainder of the provisions shall continue in full
force and effect unless the rights and
obligations of the parties have been materially altered or abridged by such invalidation or
unenforceability.

	3572	  	
	 3573
 3574
 3575
 3576
 3577
 3578
	  	 b.      If a material provision of this Contract is materially altered or abridged as the result of
a final
and binding order of a Governmental Body having subject matter jurisdiction, then the Postal
Service and the aviation supplier will meet to negotiate in good faith to reach a mutually
satisfactory modification to this Contract. If
the Parties are unable to reach a mutually
satisfactory resolution, then either Party may declare the negotiations to be at an impasse and
the parties shall resolve the dispute in accordance with the provisions of this
contract.

	3579	  	
	 3580
 3581
	  	 c.      Notwithstanding the foregoing, the Parties agree to make their best efforts to oppose
any
changes requested by a Governmental Body to any material provision of this Contract.

	3582	  	
	3583	  	
	3584	  	Third Party Governmental Delays
	 3585
 3586 3587 3588 3589 3590
	  	If, during the term of this contract, a governmental entity with subject matter jurisdiction enacts laws,
promulgates regulations, or issues orders mandating that the aviation
supplier screen mail dispatched
for transportation by aircraft within the United States for bombs, explosives, or other hazardous
materials, and aviation supplier does not have a method for otherwise complying at no additional cost
to the
Postal Service, either party may, at no cost to the other party, suspend performance under the
contract during the period in which such screening is actually required to be accomplished.
	3591	  	
	3592 3593 3594 3595	  	Within fourteen (14) days of the enactment of any law, promulgation of any regulation, or issuance of
any order referenced above, the parties shall commence negotiations in an
attempt to modify this
contract to address any adverse impacts and / or other concerns asserted by one or both parties that
may arise as a result of additional screening requirements.
	3596	  	
	3597 3598 3599	  	If the parties cannot agree upon such a modification within 180 days, or within such longer period as
the parties may mutually agree, the contract and all orders hereunder may be
terminated at no cost to
either party.
	3600	  	
	3601	  	
	3602	  	Waiver of Breach
	3603 3604	  	No waiver of breach of any of the provisions of this Contract shall be construed to be a waiver of any
succeeding breach of the same or any other provision.

  
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 Part 4: List of Attachments 
 Mod 19 

 
 Part 4 - List of Attachments and Forms 

 

					
	Attachments:	 	
			
		 	Attachment 1	 	Postal Service Operating Periods, dated June 27, 2014
			
		 	Attachment 2	 	Air Stops & Projected Volumes, dated January 8, 2013
			
		 	Attachment 3	 	Operating Plan, Day Network, dated June 27,
20141
			
		 	Attachment 4	 	Operating Plan, Night Network, dated June 27,
20141
			
		 	Attachment 5	 	Reserved
			
		 	Attachment 6	 	Postal Furnished Property, April 16, 2013
			
		 	Attachment 7	 	Electronic Data Interchange Service Requirements, dated September 1, 2012
			
		 	Attachment 8	 	Investigative / Security Protocol and Guidelines, dated July 2012
			
		 	Attachment 9	 	Wage Determination, dated October 31, 2012
			
		 	Attachment 10	 	Pricing, dated June 27, 20141
			
		 	Attachment 11	 	Perishable Mail and Lives, April 22, 2013
			
		 	Attachment 12	 	Reserved
			
		 	Attachment 13	 	Service Contract Act Wage Determinations, dated April 17, 20131
			
		 	Attachment 14	 	Contract Density, dated June 27, 20141
			
		 	Attachment 15	 	Average Weight Process, dated June 27,
20141
			
		 	Attachment 16	 	Re-labeling Process, dated June 27,
20141
			
		 	Attachment 17	 	Handling Unit Types, dated June 27,
20141

							
			
	Forms:	 		 	
				
		 	DOT Form F 5800.1	 		 	Hazardous Materials Incident Report
				
		 	I-9 Form	 		 	Employment Eligibility Verification
				
		 	PS Form 2025	 		 	Contract Personnel Questionnaire
				
		 	PS Form 8203	 		 	Order / Solicitation / Offer / Award
				
		 	US Treasury Form 941	 		 	Quarterly Federal Tax Return

  

	1 	 Included herein 

  
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 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

 Exercised Option 1 and 2 

Attachment 3 
 Operating Plan, Day Network 
 June 27, 2014 

Tuesday through Sunday 
  

									
	 	  	 	  	Originating Operation
	 	  	 Air Cargo Network Origin City
	  	Service
Point	  	ALL Mail Due
Aviation Supplier
Tuesday through Saturday	 	ALL Mail Due
Aviation Supplier
Sunday
	 1
	  	 ALBUQUERQUE NM
	  	ABQ	  	[*]	 	[*]
	 2
	  	 ANCHORAGE AK
	  	ANC	  	[*]	 	[*]
	 3
	  	 ATLANTA GA
	  	ATL	  	[*]	 	[*]
	 4
	  	 AUSTIN TX
	  	AUS	  	[*]	 	[*]
	 5
	  	 BALTIMORE MD
	  	BWI	  	[*]	 	[*]
	 6
	  	 BILLINGS MT
	  	BIL	  	[*]	 	[*]
	 7
	  	 BIRMINGHAM AL
	  	BHM	  	[*]	 	[*]
	 8
	  	 BOISE ID AMF
	  	BOI	  	[*]	 	[*]
	 9
	  	 BOSTON MA
	  	BOS	  	[*]	 	[*]
	 10
	  	 CHARLESTON WV
	  	CRW	  	[*]	 	[*]
	 11
	  	 CHARLOTTE NC
	  	CLT	  	[*]	 	[*]
	 12
	  	 CHICAGO IL
	  	ORD	  	[*]	 	[*]
	 13
	  	 CINCINNATI OH
	  	CVG	  	[*]	 	[*]
	 14
	  	 CLEVELAND OH
	  	CLE	  	[*]	 	[*]
	 15
	  	 COLUMBUS OH
	  	CMH	  	[*]	 	[*]
	 16
	  	 DALLAS TX
	  	DFW	  	[*]	 	[*]
	 17
	  	 DENVER CO
	  	DEN	  	[*]	 	[*]
	 18
	  	 DES MOINES IA
	  	DSM	  	[*]	 	[*]
	 19
	  	 DETROIT MI
	  	DTW	  	[*]	 	[*]
	 20
	  	 DULLES VA
	  	IAD	  	[*]	 	[*]
	 21
	  	 EL PASO TX
	  	ELP	  	[*]	 	[*]
	 22
	  	 FARGO ND
	  	GFK	  	[*]	 	[*]
	 23
	  	 GRAND RAPIDS MI
	  	GRR	  	[*]	 	[*]
	 24
	  	 GREAT FALLS MT
	  	GTF	  	[*]	 	[*]
	 25
	  	 GREENSBORO NC
	  	GSO	  	[*]	 	[*]
	 26
	  	 HONOLULU HI
	  	HNL	  	[*]	 	[*]
	 27
	  	 HOUSTON TX
	  	IAH	  	[*]	 	[*]
	 28
	  	 INDIANAPOLIS IN
	  	IND	  	[*]	 	[*]
	 29
	  	 JACKSON MS
	  	JAN	  	[*]	 	[*]
	 30
	  	 JACKSONVILLE FL
	  	JAX	  	[*]	 	[*]
	 31
	  	 KANSAS CITY MO
	  	MCI	  	[*]	 	[*]
	 32
	  	 KNOXVILLE TN
	  	TYS	  	[*]	 	[*]
	 33
	  	 LAS VEGAS NV
	  	LAS	  	[*]	 	[*]
	 34
	  	 LITTLE ROCK AR
	  	LIT	  	[*]	 	[*]
	 35
	  	 LOS ANGELES CA
	  	LAX	  	[*]	 	[*]
	 36
	  	 LOUISVILLE KY
	  	SDF	  	[*]	 	[*]
	 37
	  	 LUBBOCK TX
	  	LBB	  	[*]	 	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
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 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

									
	 	  	 	  	Originating Operation
	 	  	 Air Cargo Network Origin City
	  	Service
Point	  	ALL Mail Due
Aviation Supplier
Tuesday through Saturday	 	ALL Mail Due
Aviation Supplier
Sunday
	 38
	  	 MEMPHIS TN
	  	MEM	  	[*]	 	[*]
	 39
	  	 MIAMI FL
	  	MIA	  	[*]	 	[*]
	 40
	  	 MILWAUKEE WI
	  	MKE	  	[*]	 	[*]
	 41
	  	 MINNEAPOLIS MN
	  	MSP	  	[*]	 	[*]
	 42
	  	 MOBILE AL
	  	MOB	  	[*]	 	[*]
	 43
	  	 NASHUA NH
	  	MHT	  	[*]	 	[*]
	 44
	  	 NASHVILLE TN
	  	BNA	  	[*]	 	[*]
	 45
	  	 NEW ORLEANS LA
	  	MSY	  	[*]	 	[*]
	 46
	  	 NEWARK NJ
	  	EWR	  	[*]	 	[*]
	 47
	  	 NORFOLK VA
	  	ORF	  	[*]	 	[*]
	 48
	  	 NY METRO
	  	JFK	  	[*]	 	[*]
	 49
	  	 OAKLAND CA
	  	OAK	  	[*]	 	[*]
	 50
	  	 OKLAHOMA CITY OK
	  	OKC	  	[*]	 	[*]
	 51
	  	 OMAHA NE
	  	OMA	  	[*]	 	[*]
	 52
	  	 ONTARIO CA
	  	ONT	  	[*]	 	[*]
	 53
	  	 ORLANDO FL
	  	MCO	  	[*]	 	[*]
	 54
	  	 PHILADELPHIA PA
	  	PHL	  	[*]	 	[*]
	 55
	  	 PHOENIX AZ
	  	PHX	  	[*]	 	[*]
	 56
	  	 PITTSBURGH PA
	  	PIT	  	[*]	 	[*]
	 57
	  	 PORTLAND OR
	  	PDX	  	[*]	 	[*]
	 58
	  	 QUAD CITIES IL
	  	MLI	  	[*]	 	[*]
	 59
	  	 RALEIGH NC
	  	RDU	  	[*]	 	[*]
	 60
	  	 RENO NV
	  	RNO	  	[*]	 	[*]
	 61
	  	 RICHMOND VA
	  	RIC	  	[*]	 	[*]
	 62
	  	 ROCHESTER NY
	  	ROC	  	[*]	 	[*]
	 63
	  	 SACRAMENTO CA
	  	SMF	  	[*]	 	[*]
	 64
	  	 SALT LAKE CITY UT
	  	SLC	  	[*]	 	[*]
	 65
	  	 SAN ANTONIO TX
	  	SAT	  	[*]	 	[*]
	 66
	  	 SAN DIEGO CA
	  	SAN	  	[*]	 	[*]
	 67
	  	 SAN FRANCISCO CA
	  	SFO	  	[*]	 	[*]
	 68
	  	 SAN JUAN PR
	  	SJU	  	[*]	 	[*]
	 69
	  	 SEATTLE WA
	  	SEA	  	[*]	 	[*]
	 70
	  	 SHREVEPORT LA
	  	SHV	  	[*]	 	[*]
	 71
	  	 SIOUX FALLS SD
	  	FSD	  	[*]	 	[*]
	 72
	  	 SPOKANE WA
	  	GEG	  	[*]	 	[*]
	 73
	  	 SPRINGFIELD MA
	  	BDL	  	[*]	 	[*]
	 74
	  	 SPRINGFIELD MO
	  	SGF	  	[*]	 	[*]
	 75
	  	 SPRINGFIELD IL
	  	SPI	  	[*]	 	[*]
	 76
	  	 ST. LOUIS MO
	  	STL	  	[*]	 	[*]
	 77
	  	 TAMPA FL
	  	TPA	  	[*]	 	[*]
	 78
	  	 TUCSON AZ
	  	TUS	  	[*]	 	[*]
	 79
	  	 TULSA OK
	  	TUL	  	[*]	 	[*]
	 80
	  	 WICHITA KS
	  	ICT	  	[*]	 	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 76 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

 Exercised Option 1 and 2 

Attachment 3 
 Operating Plan, Day Network 
 June 27, 2014 

Tuesday through Sunday 
  

											
	 	  	Destinating Operation
	 	  	 Air Cargo Network Destination City
	  	Service
Point	  	Required
Delivery Time to
Postal Service
Tuesday - Friday	 	Required
Delivery Time to
Postal Service
Saturday	 	Required
Delivery Time to
Postal Service
Sunday
	 1
	  	 ALBUQUERQUE NM
	  	ABQ	  	[*]	 	[*]	 	[*]
	 2
	  	 ANCHORAGE AK
	  	ANC	  	[*]	 	[*]	 	[*]
	 3
	  	 ATLANTA GA
	  	ATL	  	[*]	 	[*]	 	[*]
	 4
	  	 AUSTIN TX
	  	AUS	  	[*]	 	[*]	 	[*]
	 5
	  	 BALTIMORE MD
	  	BWI	  	[*]	 	[*]	 	[*]
	 6
	  	 BILLINGS MT
	  	BIL	  	[*]	 	[*]	 	[*]
	 7
	  	 BIRMINGHAM AL
	  	BHM	  	[*]	 	[*]	 	[*]
	 8
	  	 BOISE ID
	  	BOI	  	[*]	 	[*]	 	[*]
	 9
	  	 BOSTON MA
	  	BOS	  	[*]	 	[*]	 	[*]
	 10
	  	 CHARLESTON WV
	  	CRW	  	[*]	 	[*]	 	[*]
	 11
	  	 CHARLOTTE NC
	  	CLT	  	[*]	 	[*]	 	[*]
	 12
	  	 CHICAGO IL
	  	ORD	  	[*]	 	[*]	 	[*]
	 13
	  	 CINCINNATI OH
	  	CVG	  	[*]	 	[*]	 	[*]
	 14
	  	 CLEVELAND OH
	  	CLE	  	[*]	 	[*]	 	[*]
	 15
	  	 COLUMBUS OH
	  	CMH	  	[*]	 	[*]	 	[*]
	 16
	  	 DALLAS TX
	  	DFW	  	[*]	 	[*]	 	[*]
	 17
	  	 DENVER CO
	  	DEN	  	[*]	 	[*]	 	[*]
	 18
	  	 DES MOINES IA
	  	DSM	  	[*]	 	[*]	 	[*]
	 19
	  	 DETROIT MI
	  	DTW	  	[*]	 	[*]	 	[*]
	 20
	  	 DULLES VA
	  	IAD	  	[*]	 	[*]	 	[*]
	 21
	  	 EL PASO TX
	  	ELP	  	[*]	 	[*]	 	[*]
	 22
	  	 FARGO ND P&DC
	  	GFK	  	[*]	 	[*]	 	[*]
	 23
	  	 GRAND RAPIDS MI
	  	GRR	  	[*]	 	[*]	 	[*]
	 24
	  	 GREAT FALLS MT
	  	GTF	  	[*]	 	[*]	 	[*]
	 25
	  	 GREENSBORO NC
	  	GSO	  	[*]	 	[*]	 	[*]
	 26
	  	 HONOLULU HI
	  	*HNL	  	[*]	 	[*]	 	[*]
	 27
	  	 HOUSTON TX
	  	IAH	  	[*]	 	[*]	 	[*]
	 28
	  	 INDIANAPOLIS IN
	  	IND	  	[*]	 	[*]	 	[*]
	 29
	  	 JACKSON MS
	  	JAN	  	[*]	 	[*]	 	[*]
	 30
	  	 JACKSONVILLE FL
	  	JAX	  	[*]	 	[*]	 	[*]
	 31
	  	 KANSAS CITY MO
	  	MCI	  	[*]	 	[*]	 	[*]
	 32
	  	 KNOXVILLE TN
	  	TYS	  	[*]	 	[*]	 	[*]
	 33
	  	 LAS VEGAS NV
	  	LAS	  	[*]	 	[*]	 	[*]
	 34
	  	 LITTLE ROCK AR
	  	LIT	  	[*]	 	[*]	 	[*]
	 35
	  	 LOS ANGELES CA
	  	LAX	  	[*]	 	[*]	 	[*]
	 36
	  	 LOUISVILLE KY
	  	SDF	  	[*]	 	[*]	 	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 77 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

											
	 	  	Destinating Operation
	 	  	 Air Cargo Network Destination City
	  	Service
Point	  	Required
Delivery Time to
Postal Service
Tuesday - Friday	 	Required
Delivery Time to
Postal Service
Saturday	 	Required
Delivery Time to
Postal Service
Sunday
	 37
	  	 LUBBOCK TX
	  	LBB	  	[*]	 	[*]	 	[*]
	 38
	  	 MEMPHIS TN
	  	MEM	  	[*]	 	[*]	 	[*]
	 39
	  	 MIAMI FL
	  	MIA	  	[*]	 	[*]	 	[*]
	 40
	  	 MILWAUKEE WI
	  	MKE	  	[*]	 	[*]	 	[*]
	 41
	  	 MINNEAPOLIS MN
	  	MSP	  	[*]	 	[*]	 	[*]
	 42
	  	 MOBILE AL
	  	BFM	  	[*]	 	[*]	 	[*]
	 43
	  	 NASHUA NH
	  	MHT	  	[*]	 	[*]	 	[*]
	 44
	  	 NASHVILLE TN
	  	BNA	  	[*]	 	[*]	 	[*]
	 45
	  	 NEW ORLEANS LA
	  	MSY	  	[*]	 	[*]	 	[*]
	 46
	  	 NEWARK NJ
	  	EWR	  	[*]	 	[*]	 	[*]
	 47
	  	 NORFOLK VA
	  	ORF	  	[*]	 	[*]	 	[*]
	 48
	  	 NY METRO
	  	JFK	  	[*]	 	[*]	 	[*]
	 49
	  	 OAKLAND CA
	  	OAK	  	[*]	 	[*]	 	[*]
	 50
	  	 OKLAHOMA CITY OK
	  	OKC	  	[*]	 	[*]	 	[*]
	 51
	  	 OMAHA NE
	  	OMA	  	[*]	 	[*]	 	[*]
	 52
	  	 ONTARIO CA
	  	ONT	  	[*]	 	[*]	 	[*]
	 53
	  	 ORLANDO FL
	  	MCO	  	[*]	 	[*]	 	[*]
	 54
	  	 PHILADELPHIA PA
	  	PHL	  	[*]	 	[*]	 	[*]
	 55
	  	 PHOENIX AZ
	  	PHX	  	[*]	 	[*]	 	[*]
	 56
	  	 PITTSBURGH PA
	  	PIT	  	[*]	 	[*]	 	[*]
	 57
	  	 PORTLAND OR
	  	PDX	  	[*]	 	[*]	 	[*]
	 58
	  	 QUAD CITIES IL
	  	MLI	  	[*]	 	[*]	 	[*]
	 59
	  	 RALEIGH NC
	  	RDU	  	[*]	 	[*]	 	[*]
	 60
	  	 RENO NV
	  	RNO	  	[*]	 	[*]	 	[*]
	 61
	  	 RICHMOND VA
	  	RIC	  	[*]	 	[*]	 	[*]
	 62
	  	 ROCHESTER
	  	ROC	  	[*]	 	[*]	 	[*]
	 63
	  	 SACRAMENTO CA
	  	SMF	  	[*]	 	[*]	 	[*]
	 64
	  	 SALT LAKE CITY
	  	SLC	  	[*]	 	[*]	 	[*]
	 65
	  	 SAN ANTONIO
	  	SAT	  	[*]	 	[*]	 	[*]
	 66
	  	 SAN DIEGO
	  	SAN	  	[*]	 	[*]	 	[*]
	 67
	  	 SAN FRANCISCO CA
	  	SFO	  	[*]	 	[*]	 	[*]
	 68
	  	 SAN JUAN PR**
	  	* SJU	  	[*]	 	[*]	 	[*]
	 69
	  	 SEATTLE WA
	  	SEA	  	[*]	 	[*]	 	[*]
	 70
	  	 SHREVEPORT LA
	  	SHV	  	[*]	 	[*]	 	[*]
	 71
	  	 SIOUX FALLS SD
	  	FSD	  	[*]	 	[*]	 	[*]
	 72
	  	 SPOKANE WA
	  	GEG	  	[*]	 	[*]	 	[*]
	 73
	  	 SPRINGFIELD MA
	  	BDL	  	[*]	 	[*]	 	[*]
	 74
	  	 SPRINGFIELD MO
	  	SGF	  	[*]	 	[*]	 	[*]
	 75
	  	 SPRINGFIELD IL
	  	SPI	  	[*]	 	[*]	 	[*]
	 76
	  	 ST. LOUIS MO
	  	STL	  	[*]	 	[*]	 	[*]
	 77
	  	 TAMPA FL
	  	TPA	  	[*]	 	[*]	 	[*]
	 78
	  	 TUCSON AZ
	  	*TUS	  	[*]	 	[*]	 	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 78 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

											
	 	  	Destinating Operation
	 	  	 Air Cargo Network Destination City
	  	Service
Point	  	Required
Delivery Time to
Postal Service
Tuesday - Friday	 	Required
Delivery Time to
Postal Service
Saturday	 	Required
Delivery Time to
Postal Service
Sunday
	 79
	  	 TULSA OK
	  	TUL	  	[*]	 	[*]	 	[*]
	 80
	  	 WICHITA KS
	  	ICT	  	[*]	 	[*]	 	[*]

  

	*	All mail is delivered on Sunday at 07:00. The offshore locations have additional time. 

	[*]	     

	**	75% of the volume capture will be delivered on Day Zero with the balance delivered on Day +1 

	[*]	     

	[*]	     

	[*]	     

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 79 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

 Exercised Option 1 and 2 

Attachment 3 
 Operating Plan, Day Network 
 June 27, 2014 

Tender and Delivery Process Codes 
  

							
	A	  	Postal Service Builds ULDs	  	F	  	Aviation Supplier Unloads ULD into MTE
	B	  	Postal Service Transports ULDs to Ramp	  	G	  	Aviation Supplier Builds ULDs
	C	  	Postal Service Tenders in MTE	  	H	  	Aviation Supplier Delivers ULDs to Ramp
	D	  	Postal Service Picks Up MTE	  	I	  	Aviation Supplier Picks Up ULDs from Plant
	E	  	Postal Service Deck loads	  	J	  	Aviation Supplier Delivers ULDs to Plant
	K	  	Aviation Supplier Deck Loads	  		  	

  

									
	 	  	 Air Cargo Network City
	  	Service
Point	  	Tender
Code	  	Delivery
Code
	 1
	  	 ALBUQUERQUE NM
	  	ABQ	  	A, B	  	H
	 2
	  	 ANCHORAGE AK
	  	ANC	  	A, B	  	H
	 3
	  	 ATLANTA GA
	  	ATL	  	A, B	  	H
	 4
	  	 AUSTIN TX
	  	AUS	  	A, B	  	H
	 5
	  	 BALTIMORE MD
	  	BWI	  	A, B	  	H
	 6
	  	 BILLINGS MT
	  	BIL	  	A, B	  	H
	 7
	  	 BIRMINGHAM AL
	  	BHM	  	E	  	K
	 8
	  	 BOISE ID
	  	BOI	  	A, B	  	H
	 9
	  	 BOSTON MA
	  	BOS	  	A, B	  	H
	 10
	  	 CHARLESTON WV
	  	CRW	  	A, B	  	H
	 11
	  	 CHARLOTTE NC
	  	CLT	  	A, B	  	H
	 12
	  	 CHICAGO IL
	  	ORD	  	A, B	  	H
	 13
	  	 CINCINNATI OH
	  	CVG	  	A, B	  	H
	 14
	  	 CLEVELAND OH
	  	CLE	  	A, B	  	H
	 15
	  	 COLUMBUS OH
	  	CMH	  	A, B	  	H
	 16
	  	 DALLAS TX
	  	DFW	  	A, B	  	H
	 17
	  	 DENVER CO
	  	DEN	  	A, B	  	H
	 18
	  	 DES MOINES IA
	  	DSM	  	A, B	  	H
	 19
	  	 DETROIT MI
	  	DTW	  	A, B	  	H
	 20
	  	 DULLES VA
	  	IAD	  	A, B	  	H
	 21
	  	 EL PASO TX
	  	ELP	  	A, B	  	H
	 22
	  	 FARGO ND
	  	GFK	  	A, B	  	H
	 23
	  	 GRAND RAPIDS MI
	  	GRR	  	A, B	  	H
	 24
	  	 GREAT FALLS MT
	  	GTF	  	A, B	  	Origin Only
	 25
	  	 GREENSBORO NC
	  	GSO	  	A, B	  	H
	 26
	  	 HONOLULU HI
	  	HNL	  	A, B	  	H
	 27
	  	 HOUSTON TX
	  	IAH	  	A, B	  	H
	 28
	  	 INDIANAPOLIS IN
	  	IND	  	A, B	  	H
	 29
	  	 JACKSON MS
	  	JAN	  	E	  	K
	 30
	  	 JACKSONVILLE FL
	  	JAX	  	A, B	  	H
	 31
	  	 KANSAS CITY MO
	  	MCI	  	A, B	  	H
	 32
	  	 KNOXVILLE TN
	  	TYS	  	A, B	  	H
	 33
	  	 LAS VEGAS NV
	  	LAS	  	A, B	  	H

  
 Page 80 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 3: Operating Plan, Day Network 
 Modification 19 

 

									
	 	  	 Air Cargo Network City
	  	Service
Point	  	Tender
Code	  	Delivery
Code
	 34
	  	 LITTLE ROCK AR
	  	LIT	  	E	  	K
	 35
	  	 LOS ANGELES CA
	  	LAX	  	A, B	  	H
	 36
	  	 LOUISVILLE KY
	  	SDF	  	A, B	  	H
	 37
	  	 LUBBOCK TX
	  	LBB	  	A, B	  	H
	 38
	  	 MEMPHIS TN
	  	MEM	  	E	  	K
	 39
	  	 MIAMI FL
	  	MIA	  	A, B	  	H
	 40
	  	 MILWAUKEE WI
	  	MKE	  	A, B	  	H
	 41
	  	 MINNEAPOLIS MN
	  	MSP	  	A, B	  	H
	 42
	  	 MOBILE AL
	  	MOB	  	A, B	  	H
	 43
	  	 NASHUA NH
	  	MHT	  	A, I	  	J
	 44
	  	 NASHVILLE TN
	  	BNA	  	E	  	K
	 45
	  	 NEW ORLEANS LA
	  	MSY	  	A, B	  	H
	 46
	  	 NEWARK NJ
	  	EWR	  	A, B	  	H
	 47
	  	 NORFOLK VA
	  	ORF	  	A, B	  	H
	 48
	  	 NY METRO
	  	JFK	  	A, I	  	J
	 49
	  	 OAKLAND CA
	  	OAK	  	A, B	  	H
	 50
	  	 OKLAHOMA CITY OK
	  	OKC	  	A, B	  	H
	 51
	  	 OMAHA NE
	  	OMA	  	A, B	  	H
	 52
	  	 ONTARIO CA
	  	ONT	  	A, B	  	H
	 53
	  	 ORLANDO FL
	  	MCO	  	A, B	  	H
	 54
	  	 PHILADELPHIA PA
	  	PHL	  	A, B	  	H
	 55
	  	 PHOENIX AZ
	  	PHX	  	A, B	  	H
	 56
	  	 PITTSBURGH PA
	  	PIT	  	A, B	  	H
	 57
	  	 PORTLAND OR
	  	PDX	  	A, B	  	H
	 58
	  	 QUAD CITIES IL
	  	MLI	  	E	  	Origin Only
	 59
	  	 RALEIGH NC
	  	RDU	  	A, B	  	H
	 60
	  	 RENO NV
	  	RNO	  	A, B	  	H
	 61
	  	 RICHMOND VA
	  	RIC	  	A, B	  	H
	 62
	  	 ROCHESTER NY
	  	ROC	  	A, I	  	J
	 63
	  	 SACRAMENTO CA
	  	SMF	  	A, B	  	H
	 64
	  	 SALT LAKE CITY
	  	SLC	  	A, B	  	H
	 65
	  	 SAN ANTONIO TX
	  	SAT	  	A, B	  	H
	 66
	  	 SAN DIEGO CA
	  	SAN	  	A, B	  	H
	 67
	  	 SAN FRANCISCO CA
	  	SFO	  	A, B	  	H
	 68
	  	 SAN JUAN PR
	  	SJU	  	A, B	  	H
	 69
	  	 SEATTLE WA
	  	SEA	  	A, B	  	H
	 70
	  	 SHREVEPORT LA
	  	SHV	  	A, B	  	H
	 71
	  	 SIOUX FALLS SD
	  	FSD	  	A, B	  	H
	 72
	  	 SPOKANE WA
	  	GEG	  	A, B	  	H
	 73
	  	 SPRINGFIELD MA
	  	BDL	  	A, B	  	H
	 74
	  	 SPRINGFIELD MO
	  	SGF	  	E	  	Origin Only
	 75
	  	 SPRINGFIELD IL
	  	SPI	  	E	  	Origin Only
	 76
	  	 ST. LOUIS MO
	  	STL	  	E	  	K
	 77
	  	 TAMPA FL
	  	TPA	  	A, B	  	H
	 78
	  	 TUCSON AZ
	  	TUS	  	A, B	  	H
	 79
	  	 TULSA OK
	  	TUL	  	A, B	  	H
	 80
	  	 WICHITA KS
	  	ICT	  	A, B	  	H

  
 Page 81 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

 Exercised Option 1 and 2 

Attachment 4 
 Operating Plan, Night Network 
 June 27, 2014 

 

											
	 	  	 	  	 	  	Originating
Operations	  	Destinating Operations
	  	 Air Cargo Network City
	  	Service
Point	  	ALL Mail Due
Aviation
Supplier
Monday -
Friday	  	Required Delivery
Time to Postal
Service
Tuesday - Friday	  	Required
Delivery Time to
Postal Service
Saturday
	1	  	ALBANY NY	  	ALB	  	[*]	  	[*]	  	[*]
	2	  	ALBUQUERQUE NM	  	ABQ	  	[*]	  	[*]	  	[*]
	3	  	ALLENTOWN PA	  	ABE	  	[*]	  	[*]	  	[*]
	4	  	ANCHORAGE AK	  	ANC	  	[*]	  	[*]	  	[*]
	5	  	AMARILLO TX	  	AMA	  	[*]	  	[*]	  	[*]
	6	  	APPLETON WI	  	ATW	  	[*]	  	[*]	  	[*]
	7	  	ATLANTA GA	  	ATL	  	[*]	  	[*]	  	[*]
	8	  	AUSTIN TX	  	AUS	  	[*]	  	[*]	  	[*]
	9	  	BALTIMORE MD	  	BWI	  	[*]	  	[*]	  	[*]
	10	  	BANGOR ME	  	BGR	  	[*]	  	[*]	  	[*]
	11	  	BATON ROUGE LA	  	LFT/MSY	  	[*]
	  	[*]	  	[*]
	12	  	BEND OR	  	RDM	  	[*]	  	[*]	  	[*]
	13	  	BILLINGS MT	  	BIL	  	[*]	  	[*]	  	[*]
	14	  	BIRMINGHAM AL	  	BHM	  	[*]	  	[*]	  	[*]
	15	  	BISMARK ND	  	BIS	  	[*]	  	[*]	  	[*]
	16	  	BOISE ID	  	BOI	  	[*]	  	[*]	  	[*]
	17	  	BOSTON MA	  	BOS	  	[*]	  	[*]	  	[*]
	18	  	BOZEMAN MT	  	BZN	  	[*]	  	[*]	  	[*]
	19	  	BRISTOL TN / VA	  	TRI	  	[*]	  	[*]	  	[*]
	20	  	BUFFALO NY	  	BUF	  	[*]	  	[*]	  	[*]
	21	  	BURBANK CA	  	BUR	  	[*]	  	[*]	  	[*]
	22	  	BURLINGTON VT	  	BTV	  	[*]	  	[*]	  	[*]
	23	  	BUTTE MT	  	BTM	  	[*]	  	[*]	  	[*]
	24	  	CASPER WY	  	CPR	  	[*]	  	[*]	  	[*]
	25	  	CEDAR RAPIDS IA	  	CID	  	[*]	  	[*]	  	[*]
	26	  	CHARLESTON WV	  	HTS	  	[*]	  	[*]	  	[*]
	27	  	CHARLOTTE NC	  	CLT	  	[*]	  	[*]	  	[*]
	28	  	CHATTANOOGA TN	  	CHA	  	[*]	  	[*]	  	[*]
	29	  	CHEYENNE WY	  	CYS	  	[*]	  	[*]	  	[*]
	30	  	CHICAGO IL (O’Hare)	  	ORD	  	[*]	  	[*]	  	[*]
	31	  	CINCINNATI OH	  	CVG	  	[*]	  	[*]	  	[*]
	32	  	CLEVELAND OH	  	CLE	  	[*]	  	[*]	  	[*]
	33	  	COLORADO SPRINGS CO	  	COS	  	[*]	  	[*]	  	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 82 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

											
	 	  	 	  	 	  	Originating
Operations	  	Destinating Operations
	  	 Air Cargo Network City
	  	Service
Point	  	ALL Mail Due
Aviation
Supplier
Monday -
Friday	  	Required Delivery
Time to Postal
Service
Tuesday - Friday	  	Required
Delivery Time to
Postal Service
Saturday
	34	  	COLUMBIA SC	  	CAE	  	[*]	  	[*]	  	[*]
	35	  	COLUMBUS OH	  	CMH	  	[*]	  	[*]	  	[*]
	36	  	DALLAS TX	  	DFW	  	[*]	  	[*]	  	[*]
	37	  	DAYTON OH	  	DAY	  	[*]	  	[*]	  	[*]
	38	  	DENVER CO	  	DEN	  	[*]	  	[*]	  	[*]
	39	  	DES MOINES IA	  	DSM	  	[*]	  	[*]	  	[*]
	40	  	DETROIT MI	  	DTW	  	[*]	  	[*]	  	[*]
	41	  	DULLES VA	  	IAD	  	[*]	  	[*]	  	[*]
	42	  	DULUTH MN	  	DLH	  	[*]	  	[*]	  	[*]
	43	  	DURANGO CO	  	DRO	  	[*]	  	[*]	  	[*]
	44	  	EL PASO TX	  	ELP	  	[*]	  	[*]	  	[*]
	45	  	ELMIRA NY	  	ELM	  	[*]	  	[*]	  	[*]
	46	  	EUGENE OR	  	EUG	  	[*]	  	[*]	  	[*]
	47	  	FAIRBANKS AK	  	FAI	  	[*]	  	[*]	  	[*]
	48	  	FLINT MI	  	FNT	  	[*]	  	[*]	  	[*]
	49	  	FORT MYERS FL	  	RSW	  	[*]	  	[*]	  	[*]
	50	  	FORT WAYNE IN	  	FWA	  	[*]	  	[*]	  	[*]
	51	  	FRESNO CA	  	FAT	  	[*]	  	[*]	  	[*]
	52	  	FT LAUDERDALE FL	  	FLL	  	[*]	  	[*]	  	[*]
	53	  	GRAND FORKS ND	  	GFK	  	[*]	  	[*]	  	[*]
	54	  	GRAND JUNCTION CO	  	GJT	  	[*]	  	[*]	  	[*]
	55	  	GRAND RAPIDS MI	  	GRR	  	[*]	  	[*]	  	[*]
	56	  	GREAT FALLS MT	  	GTF	  	[*]	  	[*]	  	[*]
	57	  	GREENSBORO NC	  	GSO	  	[*]	  	[*]	  	[*]
	58	  	GREENVILLE SC	  	GSP	  	[*]	  	[*]	  	[*]
	59	  	HARRISBURG PA	  	MDT	  	[*]	  	[*]	  	[*]
	60	  	HARTFORD CT	  	BDL	  	[*]	  	[*]	  	[*]
	61	  	HELENA MT	  	HLN	  	[*]	  	[*]	  	[*]
	62	  	HONOLULU HI	  	HNL	  	[*]	  	[*]	  	[*]
	63	  	HOUSTON TX	  	IAH	  	[*]	  	[*]	  	[*]
	64	  	HUNTSVILLE AL	  	HSV	  	[*]	  	[*]	  	[*]
	65	  	INDIANAPOLIS IN	  	IND	  	[*]	  	[*]	  	[*]
	66	  	JACKSON MS	  	JAN	  	[*]	  	[*]	  	[*]
	67	  	JACKSONVILLE FL	  	JAX	  	[*]	  	[*]	  	[*]
	68	  	JFK NY	  	JFK	  	[*]	  	[*]	  	[*]
	69	  	KALISPELL MT	  	FCA	  	[*]	  	[*]	  	[*]
	70	  	KANSAS CITY MO	  	MCI	  	[*]	  	[*]	  	[*]
	71	  	KNOXVILLE TN	  	TYS	  	[*]	  	[*]	  	[*]
	72	  	LAS VEGAS NV	  	LAS	  	[*]	  	[*]	  	[*]
	73	  	LITTLE ROCK AR	  	LIT	  	[*]	  	[*]	  	[*]
	74	  	LONG BEACH CA	  	LGB	  	[*]	  	[*]	  	[*]
	75	  	LOS ANGELES CA	  	LAX	  	[*]	  	[*]	  	[*]
	76	  	LOUISVILLE KY	  	SDF	  	[*]	  	[*]	  	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 83 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

											
	 	  	 	  	 	  	Originating
Operations	  	Destinating Operations
	  	 Air Cargo Network City
	  	Service
Point	  	ALL Mail Due
Aviation
Supplier
Monday -
Friday	  	Required Delivery
Time to Postal
Service
Tuesday - Friday	  	Required
Delivery Time to
Postal Service
Saturday
	77	  	LUBBOCK TX	  	LBB	  	[*]	  	[*]	  	[*]
	78	  	MADISON WI	  	MSN	  	[*]	  	[*]	  	[*]
	79	  	MANCHESTER NH	  	MHT	  	[*]	  	[*]	  	[*]
	80	  	MCALLEN TX	  	MFE	  	[*]	  	[*]	  	[*]
	81	  	MEDFORD OR	  	MFR	  	[*]	  	[*]	  	[*]
	82	  	MEMPHIS TN	  	MEM	  	[*]	  	[*]	  	[*]
	83	  	MIAMI FL	  	MIA	  	[*]	  	[*]	  	[*]
	84	  	MILWAUKEE WI	  	MKE	  	[*]	  	[*]	  	[*]
	85	  	MINNEAPOLIS MN	  	MSP	  	[*]	  	[*]	  	[*]
	86	  	MINOT ND	  	MOT	  	[*]	  	[*]	  	[*]
	87	  	MISSOULA MT	  	MSO	  	[*]	  	[*]	  	[*]
	88	  	MOBILE AL	  	MOB	  	[*]	  	[*]	  	[*]
	89	  	NASHVILLE TN	  	BNA	  	[*]	  	[*]	  	[*]
	90	  	NEW ORLEANS LA	  	MSY	  	[*]	  	[*]	  	[*]
	91	  	NEWARK NJ	  	EWR	  	[*]	  	[*]	  	[*]
	92	  	NORFOLK VA	  	ORF	  	[*]	  	[*]	  	[*]
	93	  	OAKLAND CA	  	OAK	  	[*]	  	[*]	  	[*]
	94	  	OKLAHOMA CITY OK	  	OKC	  	[*]	  	[*]	  	[*]
	95	  	OMAHA NE	  	OMA	  	[*]	  	[*]	  	[*]
	96	  	ONTARIO CA	  	ONT	  	[*]	  	[*]	  	[*]
	97	  	ORANGE CNTY AIRPORT	  	SNA	  	[*]	  	[*]	  	[*]
	98	  	ORLANDO FL	  	MCO	  	[*]	  	[*]	  	[*]
	99	  	PALM BEACH FL	  	PBI	  	[*]	  	[*]	  	[*]
	100	  	PASCO WA	  	PSC	  	[*]	  	[*]	  	[*]
	101	  	PEORIA IL	  	PIA	  	[*]	  	[*]	  	[*]
	102	  	PHILADELPHIA PA	  	PHL	  	[*]	  	[*]	  	[*]
	103	  	PHOENIX AZ	  	PHX	  	[*]	  	[*]	  	[*]
	104	  	PITTSBURGH PA	  	PIT	  	[*]	  	[*]	  	[*]
	105	  	POCATELLO ID	  	PIH	  	[*]	  	[*]	  	[*]
	106	  	PORTLAND ME	  	PWM	  	[*]	  	[*]	  	[*]
	107	  	PORTLAND OR	  	PDX	  	[*]	  	[*]	  	[*]
	108	  	PRESQUE ISLE ME	  	PQI	  	[*]	  	[*]	  	[*]
	109	  	PROVIDENCE RI	  	PVD	  	[*]	  	[*]	  	[*]
	110	  	RALEIGH NC	  	RDU	  	[*]	  	[*]	  	[*]
	111	  	RAPID CITY SD	  	RAP	  	[*]	  	[*]	  	[*]
	112	  	RENO NV	  	RNO	  	[*]	  	[*]	  	[*]
	113	  	RICHMOND VA	  	RIC	  	[*]	  	[*]	  	[*]
	114	  	ROANOKE VA	  	ROA	  	[*]	  	[*]	  	[*]
	115	  	ROCHESTER MN	  	RST	  	[*]	  	[*]	  	[*]
	116	  	ROCHESTER NY	  	ROC	  	[*]	  	[*]	  	[*]
	117	  	ROCK SPRINGS WY	  	RKS	  	[*]	  	[*]	  	[*]
	118	  	SACRAMENTO CA	  	SMF	  	[*]	  	[*]	  	[*]
	119	  	SALIBURY MD	  	SBY	  	[*]	  	[*]	  	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 84 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

											
	 	  	 	  	 	  	Originating
Operations	  	Destinating Operations
	  	 Air Cargo Network City
	  	Service
Point	  	ALL Mail Due
Aviation
Supplier
Monday -
Friday	  	Required Delivery
Time to Postal
Service
Tuesday - Friday	  	Required
Delivery Time to
Postal Service
Saturday
	120	  	SALT LAKE CITY UT	  	SLC	  	[*]	  	[*]	  	[*]
	121	  	SAN ANTONIO TX	  	SAT	  	[*]	  	[*]	  	[*]
	122	  	SAN DIEGO CA	  	SAN	  	[*]	  	[*]	  	[*]
	123	  	SAN FRANCISCO CA	  	SFO	  	[*]	  	[*]	  	[*]
	124	  	SAN JOSE CA	  	SJC	  	[*]	  	[*]	  	[*]
	125	  	SAN JUAN PR	  	SJU	  	[*]	  	[*]	  	[*]
	126	  	SAVANNAH GA	  	SAV	  	[*]	  	[*]	  	[*]
	127	  	SEATTLE WA	  	SEA	  	[*]	  	[*]	  	[*]
	128	  	SHREVEPORT LA	  	SHV	  	[*]	  	[*]	  	[*]
	129	  	SIOUX CITY IA	  	SUX	  	[*]	  	[*]	  	[*]
	130	  	SOUIX FALLS SD	  	FSD	  	[*]	  	[*]	  	[*]
	131	  	SOUTH BEND IN	  	SBN	  	[*]	  	[*]	  	[*]
	132	  	SPOKANE WA	  	GEG	  	[*]	  	[*]	  	[*]
	133	  	SPRINGFIELD MO	  	SGF	  	[*]	  	[*]	  	[*]
	134	  	ST CLOUD MN	  	STC	  	[*]	  	[*]	  	[*]
	135	  	ST LOUIS MO	  	STL	  	[*]	  	[*]	  	[*]
	136	  	STEWART NY	  	SWF	  	[*]	  	[*]	  	[*]
	137	  	SYRACUSE NY	  	SYR	  	[*]	  	[*]	  	[*]
	138	  	TALLAHASSEE FL	  	TLH	  	[*]	  	[*]	  	[*]
	139	  	TAMPA FL	  	TPA	  	[*]	  	[*]	  	[*]
	140	  	TRAVERSE CITY MI	  	TVC	  	[*]	  	[*]	  	[*]
	141	  	TUCSON AZ	  	TUS	  	[*]	  	[*]	  	[*]
	142	  	TULSA OK	  	TUL	  	[*]	  	[*]	  	[*]
	143	  	TWIN FALLS ID	  	TWF	  	[*]	  	[*]	  	[*]
	144	  	WATERLOO IA	  	ALO	  	[*]	  	[*]	  	[*]
	145	  	WAUSAU WI	  	CWA	  	[*]	  	[*]	  	[*]
	146	  	WENATCHEE WA	  	EAT	  	[*]	  	[*]	  	[*]
	147	  	WICHITA KS	  	ICT	  	[*]	  	[*]	  	[*]
	148	  	YAKIMA WA	  	YKM	  	[*]	  	[*]	  	[*]

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 85 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

 Exercised Option 1 and 2 

Attachment 4 
 Operating Plan, Night Network 
 June 27, 2014 

Tender and Delivery Process Codes 
  

	A	Postal Service Builds ULDs 

  

	B	Postal Service Transports ULDs to Ramp 

  

	C	Postal Service Transports Loose Volume to and from Aviation Supplier Location other than Airport Ramp 

 

	D	Postal Service Transports Loose Volumes to and from Aviation Supplier Ramp 

 

	E	Aviation Supplier Picks Up ULDs 

  

	F	Aviation Supplier Delivers in ULDs 

  

	G	Aviation Supplier Delivers Volume Loose to a Postal Service Designated Location 

 

									
	 	  	 Air Cargo Network City
	  	Service
Point	  	Tender
Code	  	Delivery Code
	1	  	ALBANY NY	  	ALB	  	D	  	D
	2	  	ALBURQUERQUE NM	  	ABQ	  	D	  	D
	3	  	ALLENTOWN PA	  	ABE	  	D	  	Origin Only
	4	  	AMARILLO TX	  	AMA	  	D	  	Origin Only
	5	  	ANCHORAGE AK	  	ANC	  	D	  	D
	6	  	APPLETON WI	  	ATW	  	D	  	D
	7	  	ATLANTA GA	  	ATL	  	E	  	D
	8	  	AUSTIN (Air Stop) TX	  	AUS	  	D	  	D
	9	  	BALTIMORE MD	  	BWI	  	D	  	D
	10	  	BANGOR ME	  	BGR	  	D	  	D
	11	  	BATON ROUGE LA	  	BTR	  	D	  	D
	12	  	BEND OR	  	RDM	  	D	  	Origin Only
	13	  	BILLINGS MT	  	BIL	  	D	  	D
	14	  	BIRMINGHAM AL	  	BHM	  	D	  	D
	15	  	BISMARK ND	  	BIS	  	D	  	Origin Only
	16	  	BOISE ID	  	BOI	  	E	  	F
	17	  	BOSTON MA	  	BOS	  	D	  	D
	18	  	BOZEMAN MT	  	BZN	  	D	  	Origin Only
	19	  	BRISTOL TN / VA	  	TRI	  	D	  	Origin Only
	20	  	BUFFALO NY	  	BUF	  	D	  	D
	21	  	BURBANK CA	  	BUR	  	D	  	D
	22	  	BURLINGTON VT	  	BTV	  	D	  	D
	23	  	BUTTE MT	  	BTM	  	D	  	Origin Only
	24	  	CASPER WY	  	CPR	  	D	  	Origin Only
	25	  	CEDAR RAPIDS IA	  	CID	  	D	  	D
	26	  	CHARLESTON WV	  	CRW	  	D	  	D
	27	  	CHARLOTTE NC	  	CLT	  	D	  	D
	28	  	CHATTANOOGA P&DC TN	  	CHA	  	D	  	D
	29	  	CHEYENNE WY	  	CYS	  	D	  	Origin Only
	30	  	CHICAGO IL	  	ORD	  	D	  	D
	31	  	CINCINNATI OH	  	CVG	  	D	  	D

  
 Page 86 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

									
	 	  	 Air Cargo Network City
	  	Service
Point	  	Tender
Code	  	Delivery Code
	32	  	CLEVELAND OH	  	CLE	  	D	  	D
	33	  	COLORADO SPRINGS CO	  	COS	  	D	  	D
	34	  	COLUMBIA SC	  	CAE	  	D	  	D
	35	  	COLUMBUS OH	  	CMH	  	D	  	D
	36	  	DALLAS TX	  	DFW	  	D	  	D
	37	  	DAYTON OH	  	DAY	  	D	  	D
	38	  	DENVER CO	  	DEN	  	D	  	D
	39	  	DES MOINES IA	  	DSM	  	D	  	D
	40	  	DETROIT MI	  	DTW	  	D	  	D
	41	  	DULLES VA	  	IAD	  	D	  	D
	42	  	DULUTH MN	  	DLH	  	D	  	D
	43	  	DURANGO CO	  	DRO	  	D	  	Origin Only
	44	  	EL PASO TX	  	ELP	  	D	  	D
	45	  	ELM NY	  	ELM	  	D	  	D
	46	  	EUGENE OR	  	EUG	  	D	  	Origin Only
	47	  	FAIRBANKS AK	  	FAI	  	D	  	Origin Only
	48	  	FLINT P&DC MI	  	FNT	  	D	  	D
	49	  	FORT MYERS P&DC FL	  	RSW	  	E	  	F
	50	  	FORT WAYNE IN P&DC	  	FWA	  	D	  	D
	51	  	FRESNO CA	  	FAT	  	D	  	D
	52	  	FT LAUDERDALE FL	  	FLL	  	D	  	F
	53	  	GRAND FORKS ND	  	GFK	  	D	  	D
	54	  	GRAND JUNCTION CO	  	GJT	  	D	  	Origin Only
	55	  	GRAND RAPIDS MI	  	GRR	  	D	  	D
	56	  	GREAT FALLS MT	  	GTF	  	D	  	D
	57	  	GREENSBORO NC	  	GSO	  	D	  	D
	58	  	GREENVILLE SC	  	GSP	  	D	  	D
	59	  	HARRISBURG PA	  	MDT	  	D	  	D
	60	  	HARTFORD CT	  	BDL	  	D	  	D
	61	  	HELENA MT	  	HLN	  	D	  	Origin Only
	62	  	HONOLULU HI	  	HNL	  	D	  	D
	63	  	HOUSTON TX	  	IAH	  	D	  	D
	64	  	HUNTSVILLE P&DF AL	  	HSV	  	D	  	D
	65	  	INDIANAPOLIS IN	  	IND	  	D	  	D
	66	  	JACKSON MS	  	JAN	  	C	  	C
	67	  	JACKSONVILLE FL	  	JAX	  	E	  	F
	68	  	JFK NY	  	JFK	  	BD	  	D
	69	  	KALISPELL MT	  	FCA	  	D	  	Origin Only
	70	  	KANSAS CITY MO	  	MCI	  	D	  	D
	71	  	KNOXVILLE TN	  	TYS	  	D	  	D
	72	  	LAS VEGAS NV	  	LAS	  	D	  	D
	73	  	LITTLE ROCK AR	  	LIT	  	C	  	C
	74	  	LONG BEACH CA	  	LGB	  	D	  	Origin Only
	75	  	LOS ANGELES CA	  	LAX	  	D	  	D
	76	  	LOUISVILLE KY	  	SDF	  	D	  	D
	77	  	LUBBOCK TX	  	LBB	  	D	  	D
	78	  	MADISON WI	  	MSN	  	D	  	D
	79	  	MANCHESTER NH	  	MHT	  	D	  	D

  
 Page 87 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

									
	 	  	 Air Cargo Network City
	  	Service
Point	  	Tender
Code	  	Delivery Code
	80	  	MCALLEN TX	  	MFE	  	D	  	Origin Only
	81	  	MEDFORD OR	  	MFR	  	D	  	Origin Only
	82	  	MEMPHIS TN	  	MEM	  	D	  	D
	83	  	MIAMI FL	  	MIA	  	D	  	F/D
	84	  	MILWAUKEE WI	  	MKE	  	D	  	D
	85	  	MINNEAPOLIS MN	  	MSP	  	D	  	D
	86	  	MINOT ND	  	MOT	  	D	  	Origin Only
	87	  	MISSOULA MT	  	MSO	  	D	  	Origin Only
	88	  	MOBILE AL	  	MOB	  	D	  	D
	89	  	NASHVILLE TN	  	BNA	  	D	  	D
	90	  	NEW ORLEANS LA	  	MSY	  	D	  	D
	91	  	NEWARK NJ	  	EWR	  	E	  	F
	92	  	NORFOLK VA	  	ORF	  	D	  	D
	93	  	OAKLAND CA	  	OAK	  	D	  	D
	94	  	OKLAHOMA CITY OK	  	OKC	  	D	  	D
	95	  	OMAHA NE	  	OMA	  	D	  	D
	96	  	ONTARIO CA	  	ONT	  	D	  	D
	97	  	ORANGE COUNTY AIRPORT	  	SNA	  	D	  	Origin Only
	98	  	ORLANDO FL	  	MCO	  	A	  	D
	99	  	PALM BEACH FL	  	PBI	  	D	  	D (T-F) / G (Sat)
	100	  	PASCO WA	  	PSC	  	D	  	Origin Only
	101	  	PEORIA MPO IL	  	PIA	  	D	  	D
	102	  	PHILADELPHIA PA	  	PHL	  	D	  	D
	103	  	PHOENIX AZ	  	PHX	  	D	  	D
	104	  	PITTSBURGH PA	  	PIT	  	D/E	  	D
	105	  	POCATELLO ID	  	PIH	  	D	  	Origin Only
	106	  	PORTLAND ME	  	PWM	  	D	  	D
	107	  	PORTLAND OR	  	PDX	  	D	  	D
	108	  	PRESQUE ISLE ME	  	PQI	  	D	  	D
	109	  	PROVIDENCE RI	  	PVD	  	D	  	D
	110	  	RALEIGH NC	  	RDU	  	D	  	D
	111	  	RAPID CITY SD	  	RAP	  	D	  	Origin Only
	112	  	RENO NV	  	RNO	  	D	  	D
	113	  	RICHMOND VA	  	RIC	  	D	  	D
	114	  	ROANOKE VA	  	ROA	  	D	  	D
	115	  	ROCHESTER MN	  	RST	  	D	  	D
	116	  	ROCHESTER NY	  	ROC	  	D	  	D
	117	  	ROCK SPRINGS WY	  	RKS	  	D	  	Origin Only
	118	  	SACRAMENTO CA	  	SMF	  	D	  	D
	119	  	SALISBURY	  	SBY	  	D	  	Origin Only
	120	  	SALT LAKE CITY UT	  	SLC	  	E	  	F
	121	  	SAN ANTONIO TX	  	SAT	  	D	  	D
	122	  	SAN DIEGO CA	  	SAN	  	D	  	D
	123	  	SAN FRANCISCO CA	  	SFO	  	E/D	  	F/D
	124	  	SAN JOSE CA	  	SJC	  	D	  	D
	125	  	SAN JUAN PR	  	SJU	  	D	  	D
	126	  	SAVANNAH P&DF GA	  	SAV	  	D	  	D
	127	  	SEATTLE WA	  	SEA	  	D	  	D

  
 Page 88 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 4: Operating Plan, Night Network 
 Modification 19

  

									
	 	  	 Air Cargo Network City
	  	Service
Point	  	Tender
Code	  	Delivery Code
	128	  	SHREVEPORT LA	  	SHV	  	D	  	D
	129	  	SIOUX CITY IA	  	SUX	  	D	  	Origin Only
	130	  	SOUIX FALLS SD	  	FSD	  	D	  	D
	131	  	SOUTH BEND IN P&DC	  	SBN	  	D	  	D
	132	  	SPOKANE WA	  	GEG	  	D	  	D
	133	  	SPRINGFIELD MO	  	SGF	  	D	  	D
	134	  	ST CLOUD MN	  	STC	  	D	  	Origin Only
	135	  	ST LOUIS MO	  	STL	  	D	  	D
	136	  	STEWART NY 125	  	SWF	  	D	  	D
	137	  	SYRACUSE NY	  	SYR	  	D	  	D
	138	  	TALLAHASSEE P&DF FL	  	TLH	  	D	  	D
	139	  	TAMPA FL	  	TPA	  	A	  	D
	140	  	TRAVERSE CITY MI	  	TVC	  	D	  	D
	141	  	TUCSON AZ	  	TUS	  	D	  	D
	142	  	TULSA OK	  	TUL	  	D	  	D
	143	  	TWIN FALLS ID	  	TWF	  	D	  	Origin Only
	144	  	WATERLOO IA	  	ALO	  	D	  	Origin Only
	145	  	WAUSAU WI	  	CWA	  	D	  	D
	146	  	WENATCHEE WA	  	EAT	  	D	  	Origin Only
	147	  	WICHITA KS	  	ICT	  	D	  	D
	148	  	YAKIMA WA	  	YKM	  	D	  	Origin Only

  
 Page 89 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 10: Pricing 
 Mod 19 

 

 Exercised Option 1 and 2 

Attachment 10 
 Pricing 
 June 27, 2014 

Attachment 10 – Pricing Day Network (Proposal 2F) 
 [*] 
  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 98 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 10: Pricing 
 Mod 19 

 
  

			
	Attachment 10 – Pricing Night Network (Proposal 2B)	  	18-Apr-13

 [*] 
  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 99 of 128

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 10: Pricing 
 Mod 19 

 
  

			
	Attachment 10 – Pricing	  	6/27/2014

 [*] 
  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 100 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 13: Service Contract Act Wage Determinations 
 June 27, 2014

 Mod 19 
  

 Attachment 13 

Service Contract Act Wage 
 Determinations June 27, 2014 
 [*] 

 

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 103 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 14: Contract Density 
 Mod 19 

 

 Attachment 14 

Contract Density for the Day Network 
 June 27, 2014 
 “Contract Density” will be measured by the invoicing system
of record. It will measure the density (pounds per cubic foot) to be used as referenced in the following sections of the contract: 
  

	 	•	 	 Part 1: Statement of Work; Reduction in Payment 

 

	 	•	 	 Part 1: Statement of Work; Payment Processing - Day Network - Per Cube, Mail Tendered in ULDs 

 

	 	•	 	 Part 1: Statement of Work; Payment Processing - Day Network - Per Cube, Mail Tendered from Surface Trucks

  

	 	•	 	 Part 1: Statement of Work; Payment Processing - Day Network - Per Cube, Mail Tendered from Ad Hoc Trucks into the Aviation Supplier
Hub 

 “Contract Density” will be calculated based on the sum of all assigned rounded weights for handling types
“D” (loose Mixed Handling Units) and “M” (Day Hub assignments) minus handling type “M”s that were matched to loose Handling Units in the contingency process (MCX). The total of these pounds will be divided by the total
Cubic Feet of all D&Rs rated as handling types “C” (Mixed ULDs) and “H” (Partial Containers). The density calculation will be rounded to the nearest hundredth. 
 “Contract Density” will be based on the actual density calculated from two operating periods prior to the operating period being invoiced. With the following exceptions, “Peak Season”
(December Operating Period) “Contract Density” will use the actual density from the prior year’s Peak Season. Both, January and February Operating Periods will use the actual November density from the same contract (fiscal) year.

 This “Contract Density” measurement process will begin with Operating Period 11and continue through the end of the contract unless
the parties mutually agree to a change. For Operating Periods 9 and 10, “Contract Density” will be calculated using data from the invoice of record, and the process outlined in the legacy system associated with contract FXNET-2006-01 from
Operating Periods 7 and 8. 
 In addition, for Operating Periods 1 through 8, the Postal Service and FedEx agree to reconcile each Operating
Period using the actual density as measured under the prior contract, FXNET-2006-01, and agreed to by both parties as shown in the table below. 

  
 Page 123 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 14: Contract Density 
 Mod 19 

 

 The agreed to “Contract Density” to be used for the contract measurement and during the
Reconciliation Process is as follows (Operating Periods through 24 are shown below, the process described above will be followed for all future Operating Periods): 
  

					
	 Operating Period
	  	 Contract Density
	  	 Process

	1 (Oct-13)	  	[*]	  	Recalculate using this actual density
	2 (Nov-13)	  	[*]	  	Recalculate using this actual density
	3 (Dec-13)	  	[*]	  	Recalculate using this actual density
	4 (Jan-14)	  	[*]	  	Recalculate using this actual density
	5 (Feb-14)	  	[*]	  	Recalculate using this actual density
	6 (Mar-14)	  	[*]	  	Recalculate using this actual density
	7 (Apr-14)	  	[*]	  	Recalculate using this actual density
	8 (May-14)	  	[*]	  	Recalculate using this actual density
	9 (Jun-14)	  	Apr-14	  	Two Prior OP Actual
	10 (Jul-14)	  	May-14	  	Two Prior OP Actual
	11 (Aug-14)	  	Jun-14	  	Two Prior OP Actual
	12 (Sep-14)	  	Jul-14	  	Two Prior OP Actual
	13 (Oct-14)	  	Aug-14	  	Two Prior OP Actual
	14 (Nov-14)	  	Sep-14	  	Two Prior OP Actual
	15 (Dec-14)	  	[*]	  	Previous Year’s Actual Density
	16 (Jan-15)	  	Nov-14	  	Two Prior OP Actual
	17 (Feb-15)	  	Nov-14	  	Three Prior OP Actual
	18 (Mar-15)	  	Jan-15	  	Two Prior OP Actual
	19 (Apr-15)	  	Feb-15	  	Two Prior OP Actual
	20 (May-15)	  	Mar-15	  	Two Prior OP Actual
	21 (Jun-15)	  	Apr-15	  	Two Prior OP Actual
	22 (Jul-15)	  	May-15	  	Two Prior OP Actual
	23 (Aug-15)	  	Jun-15	  	Two Prior OP Actual
	24 (Sep-15)	  	Jul-15	  	Two Prior OP Actual

  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 124 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 15: Average Weights 
 Mod 19 

 

 Attachment 15 

Average Weight 
 June 27, 2014 
 This attachment describes the process to establish the Average Weight
used for D&Rs (Handling Units) where the actual weight is not available or is not correct. Beginning with Operating Period 1, the process established in contract FXNET-2006-01 (legacy) for Average Weights will be used until the Operating Period
during which the Postal Service invoicing system is implemented. 
 Beginning with the Operating Period during which the Postal Service invoicing
system is implemented and for all subsequent Operating periods the following process will be in effect: 
 These average weights will be used in
reconciliation and SASS will use these averages weights for all HUP, FXI and FXO assignments. 
 The average weight will be calculated at the
end of each operating period as follows: 
 Sum the weight of all handling units by invoiced Handling Type. 

The Day Turn will include handling types A, D and E total weights divided by the count of D&Rs that the origin is not FXI, FXO or HUP. 

The Night Turn will include handling types I and K total weights divided by the count of D&Rs that the origin is not FXI, FXO or HUP. 

The result is then rounded to the nearest pound. 
 The Average Weight calculation from two operating periods prior will be used for the operating period being invoiced and reconciled. This process will not be adjusted or changed in reconciliation.

  
 Page 125 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 16: Re-labeling / Type M 
 Matching Process 

Mod 19 
  

 Attachment 16 

Re-labeling / Type M 
 Matching Process 
 June 27, 2014 

The following payment system process identifies handling units that are missing contractually required scans due to the day Re-Label Process. 

The Postal Service payment system, SASS, will identify handling types A, D, E, F, & G with an open bypass deduction code that missing Delivery
scans, and do not have third-party THS Break Scans. These handling units will be grouped by RDT date, destination, and D&R. These handling units will be labeled “Bucket 1”. 
 The Postal Service payment system, SASS, will then identify all handling units with HUP, FXI or FXO origins (handling type “M”) that have a FedEx delivery scan at the correct Service Point.

 These handling units will be labeled “Bucket 2”. 
 During the invoice process, for each RDT date, the Postal Service payment system, SASS, will match the “Bucket 1” handling units to the “Bucket 2” handling units that have the same
destination and RDT date. 
 If any “Bucket 1” handling units remain unmatched, the Postal Service payment system, SASS, will then
match these handling units to any “Bucket 2” handling units with RDT date + 1 that were not previously used in the matching process. 

[*] 
 Any “Bucket 1” handling unit
successfully matched to a “Bucket 2” handling unit will not be subject to the missing scan deductions for fuel or non-fuel described in “Part 1: Statement of Work; Payment Procedures.” 

The successfully matched “Bucket 1” handling units will be identified with deduction reason code MCX, cancelling the fuel and non-fuel
deductions described in “Part 1: Statement of Work; Payment Procedures.”. These handling units will still maintain performance waiver code 007. 
 All handling units rated as handling type M will not be subject to missing scan deductions for Nest or Delivery scans described in “Part 1: Statement of Work; Payment Procedures.” 

All handling units rated as handling type M will be subject to fuel and non-fuel deductions for scans that are provided at incorrect delivery Service
Points described in the “Part 1: Statement of Work; Payment Procedures and Payment Processing – Day Network – Per Cube” sections and as stated above the type M handling units will not meet the “Bucket 2” type M
criteria. 
 All type M handling units with a delivery scan at a correct delivery Service Point will be included in lane performance evaluation
and reductions in payment, described in the “Part 1: Statement of Work; Performance Requirements and Measurement and Reduction of Payment” sections. 
  

	*	Blank spaces contained confidential information which has been filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. 

  
 Page 126 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 16: Re-labeling / Type M 
 Matching Process 

Mod 19 
  

 Beginning with the Operating Period during which the Postal Service invoicing system implements the
Relabeling / type M Matching process module and for all subsequent Operating Periods, the process described above will be in effect. 
 For all
Operating Periods prior to the Operating Period in which the Postal Service invoicing system is implemented, handling units that qualify as Bucket 1 will not be subject to missing scan deductions for Nest or Delivery scans described in “Part 1:
Statement of Work; Payment Procedures.” The Postal Service and FedEx will resolve these handling units during the reconciliation process for each of these Operating Periods. 
 Beginning with the Operating Period during which the Postal Service invoicing system is implemented and for all subsequent Operating Periods prior to the Operating Period during which the Postal Service
invoicing system implements the Relabeling / type M Matching process module, handling units that qualify as Bucket 1 will not be subject to missing scan deductions for Nest or Delivery scans described in “Part 1: Statement of Work; Payment
Procedures.” During these periods, the Postal Service invoicing system will execute the missing scan deductions; however, the Postal Service and FedEx will jointly identify and reverse these deductions during the reconciliation process.

  
 Page 127 of
128 

Table of Contents

 Air Cargo Network 

Contract ACN-13-FX 
 Attachment 17: Handling Unit Types 
 Mod 19 

 

 Attachment 17 

Handling Types 
 June 27, 2014 
 The following list defines Handling Types as referenced in the
contract and preceding attachments. 
  

			
	 Handling Type
	  	 Handling Type Description

	A	  	Lives Handling Unit
	B	  	Bypass Container
	C	  	Mixed Container
	D	  	Mixed Handling Unit
	E	  	Trucked Handling Unit
	G	  	Bypass Handling Unit
	H	  	Partial Container
	I	  	Night Handling Unit
	J	  	Night Mixed Container
	K	  	Night Lives Handling Unit
	L	  	LIV or TRK Container
	M	  	HUP Handling Unit

  
 Page 128 of
128EX-10.4

 Exhibit 10.4 

 

					
	AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT	 	  1. CONTRACT ID CODE  	 	   PAGE OF  

1        2

									
	 2.
AMENDMENT/MODIFICATION NO.
 020
  
	 	3. EFFECTIVE DATE   09/30/2013	 	4. REQUISITION/PURCHASE REQ. NO.	 	 5. PROJECT NO.

(If applicable)

	6. ISSUED BY                        
CODE	 	5ASNET	 	7. ADMINISTERED BY (If other than Item 6)	 	  CODE  	 	  5ASNET  
	  
 ALAINA EARL

Air Transportation CMC
 United States Postal
Service
 475 L’Enfant Plaza SW

Room 1P 650
 Washington DC 20260-0650

(202) 268-6580
  
	 	  
 Air Transportation CMC

Air Transportation CMC
 United States Postal Service
 475 L’Enfant Plaza SW, Room 1P650

Washington DC 20260-0650

							
	 8. NAME AND ADDRESS OF CONTRACTOR (No., street, county, State and ZIP Code)

FEDERAL EXPRESS CORPORATION
 3610 HACKS CROSS ROAD
 MEMPHIS, TN 38125-8800
	 	  (x)	  	 9A. AMENDMENT OF SOLICITATION NO.

 

	 	 	  	 9B. DATED (SEE ITEM 11)

 
  

	 	    x
  
	  	 10A. MODIFICATION OF CONTRACT/ORDER NO. ACN-13-FX

	 	 	  	 10B. DATED (SEE ITEM 13)
  

04/23/2013
  

	SUPPLIER CODE    000389122	 	FACILITY CODE	 	 	  	 

 11. THIS ITEM ONLY APPLIES TO AMENDMENTS OF SOLICITATIONS 

 

							
	 ̈	 	 	 	 	  	     ̈  is extended,       
  ̈  is not extended.

													
	  
 Offers must acknowledge receipt of this amendment
prior to the hour and date specified in the solicitation or as amended, by one of the following methods: (a) By completing Items 8 and 15, and
returning                     copies of the amendment; (b) By acknowledging receipt of this amendment on each copy of the offer
submitted; or (c) By separate letter or telegram which includes a reference to the solicitation and amendment number. FAILURE OF YOUR ACKNOWLEDGMENT TO BE RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND DATE
SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this amendment you desire to change an offer already submitted, such change may be made by telegram or letter, provided each telegram or letter makes reference to the solicitation and
this amendment, and is received prior to the opening hour and date specified.
  

			
	
12. ACCOUNTING AND APPROPRIATION DATA     (If required).

See Schedule
	  	  

$0.00

			
	  
 13. THIS
ITEM APPLIES ONLY TO MODIFICATIONS OF CONTRACTS/ORDERS. IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14
  
	 	

									
	    (x)    	 	  A.  	 	THIS CHANGE BY CLAUSE IS ISSUED PURSUANT TO: (Specify clause) THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.	 		 	
	  ̈
  
	 	 	 	 	 		 	
	 ̈	 	  B.  	 	 THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as
changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14.
  
	 		 	
	 ̈	 	  C.  	 	 THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF: THE CHANGES SET FORTH IN
ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
  
	 		 	
	x	 	  D.  	 	 OTHER (such as no cost change/cancellation, termination, etc.) (Specify type of modification and
authority): THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
 Mutual Agreement of the Contracting
Parties
  
	 		 	

			
	  
 E.
IMPORTANT:     Contractor  ̈ is not, x is required to sign this document and
return          1           copies to the issuing office.

 
	 	
	  
 14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF
section headings, including solicitation/contract subject matter where feasible.)
 The purpose of this modification is to
make the following clarification to the Transition Period Modification (Modification 5) of the ACN-13-FX contract:
  

Under the Payment Procedures, Rates and Payment General section,

 
 Lines 1140 – 1147, as stated below, do not apply to the
“Transition Period”
  
 The aviation supplier
will be compensated based upon properly scanned ULDs and Handling units. The payment for each ULD and Handling Unit will be based on the network (i.e., Day or Night) to which the mail is assigned by the Postal Service. This process will allow for
automated payment.
  
 Continued...

 
	 	

			
	 Except as provided herein, all terms and conditions of the document referenced in Item 9A or 10A, as heretofore changed, remains
unchanged and in full force and effect.
  
	 	

					
	 15A. NAME AND TITLE OF SIGNER (Type or
print)
  
 Paul J. Herron, Vice President

 
	 	 16A. NAME AND TITLE OF CONTRACTING OFFICER (Type or print)

 
     Susan E. Partridge

 
	 	 

									
	 15B.
CONTRACTOR/OFFEROR
  

    /s/ PAUL J. HERRON
 (Signature of person authorized to sign)
	 	
15C. DATE SIGNED
  
 9/9/14
	 	 16B. CONTRACT AUTHORITY

 
     /s/ SUSAN E.
PARTRIDGE
 (Signature of Contracting Officer)
	 	 16C. DATE SIGNED

 
 9/9/14
	 	 

									
	 CONTINUATION SHEET
	 	REQUISITION NO.               
     	 	 PAGE OF

2         2

									
	 CONTRACT/ORDER NO.

ACN-13-FX/020
	 	 AWARD/ EFFECTIVE DATE  

09/30/2013
	 	MASTER/AGENCY CONTRACT NO.	 	SOLICITATION NO.	 	 SOLICITATION ISSUE DATE

											
	ITEM NO.	 	SCHEDULE OF SUPPLIES / SERVICES	 	QUANTITY	 	
    UNIT    
	 	UNIT PRICE	 	
AMOUNT

	 	 	  
 [*]
  
 Sub Rept
Req’d: Y Carrier Code: FX Route Termini
 S: Various Route Termini End: Various Payment

Terms: SEE CONTRACT
 Period of Performance:
09/30/2013 to 9/30/2020
  
	 	 	 	 	 	 	 	 

 *Blank spaces contained confidential information which has been filed separately with the Securities and
Exchange Commission 
 pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]