UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d)
of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
December 6, 1999
NUI Corporation
(Exact Name of Registrant as Specified in its Charter)
New Jersey
(State or Other Jurisdiction of Incorporation)
1-8353 22-1869941
(Commission File Number) (I.R.S. Employer
Identification Number)
550 Route 202-206
P. O. Box 760
Bedminster, New Jersey 07921-0760
(Address of Principal Executive Offices) (Zip Code)
(908) 781-0500
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name or former Address, if Changed Since Last
Report)
Item 1. Change in Control of Registrant
Not Applicable
Item 2. Acquisition or Disposition of Assets
Not Applicable
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable
Item 5. Other Events
On December 6, 1999, NUI Corporation announced
that its sales outsourcing affiliate, TIC
Enterprises, LLC (TIC), was chosen by the United
States Postal Service (USPS) as the result of a
competitive bidding process to nationally market
its expedited delivery services, which include
Priority Mail, Express Mail, Global Priority Mail
and Express Mail International Service. In order
to effectively meet delivery standards, the USPS
divides the Country into four regional areas, with
each region including three major metropolitan
areas. The USPS awarded TIC the opportunity to
market its services in all four regions of the
Country. Based upon the initial rollout, the USPS
projects that this contract could generate
approximately $700 million in incremental revenue
to the USPS over three years. The USPS expects to
continue the expansion of this program throughout
the entire United States during the same period.
NUI Corporation owns 49% of TIC.
A copy of the Registrant's related news release,
as well as a copy of the agreement between TIC and
the United States Postal Service, are annexed as
exhibits.
Item 6. Resignation of Registrant's Directors
Not Applicable
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 10.1
Agreement between TIC and United States
Postal Service
Exhibit 99
Press Release of NUI Corporation, dated
December 6, 1999
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
NUI CORPORATION
By: /s/ John Kean, Jr.
Name: John Kean, Jr.
Title: President and Chief
Executive Officer
Date: December 15, 1999.
EXHIBIT 99
CONTACT: Linda S. Lennox
Director of Corporate Communications and Investor
Relations
Tel: (908) 719-4222
E-mail: [email protected]
FOR IMMEDIATE RELEASE
NUI CORP. AFFILIATE, TIC ENTERPRISES, SELECTED BY U. S. POSTAL
SERVICE TO PROVIDE NATIONWIDE SALES FORCE
Bedminster, NJ - December 6, 1999 -- NUI Corporation (NYSE:NUI)
today announced that its sales outsourcing affiliate, TIC
Enterprises, LLC (TIC), was chosen by the United States Postal
Service (USPS) as the result of a competitive bidding process to
nationally market its expedited delivery services, which include
Priority Mail, Express Mail, Global Priority Mail and Express
Mail International Service. In order to effectively meet
delivery standards, the USPS divides the Country into four
regional areas, with each region including three major
metropolitan areas. The USPS awarded TIC the opportunity to
market its services in all four regions of the Country. Based
upon the initial rollout, which does not include secondary
cities, the USPS projects that this contract could generate
approximately $700 million in incremental revenue to the USPS
over three years. The USPS expects to continue the expansion of
this program throughout the entire United States during the same
period.
TIC President, James Greiff, stated, "TIC's excellence in
providing an outstanding sales force is unmatched. This
agreement represents a major step in the execution of our
strategy to broaden our product mix beyond telecommunications
offerings. Partnering with the USPS provides an additional
marketplace for TIC to continue its rapid growth. Including this
contract, TIC's total annual revenues could well exceed $200
million within three years."
Greiff went on to add, "We take pride in aligning ourselves with
organizations that provide high quality, reliable and
competitively priced services, such as the USPS. We are honored
to have been selected to assist the USPS in fulfilling its vision
for the future."
NUI President and Chief Executive Officer, John Kean, Jr.,
stated, "During the past five years, the demand for overnight and
other expedited delivery services has dramatically increased due,
in part, to the rapid growth of mail order businesses and e-
commerce. The demand for these services is expected to continue
to grow rapidly as more and more consumers choose to make
purchases over the Internet. The USPS has made significant
investments to strengthen its position as a leader in this
market. We believe that our face-to-face sales strategy will
uniquely position the USPS to capture a significant share of the
expedited delivery market."
For more than 10 years, TIC has successfully created, managed and
expanded national sales forces for Fortune 100 clients. The USPS
joins a list of world-class organizations that have chosen TIC to
help them grow their businesses, such as Lucent Technologies,
Nextel Communications, Qwest Communications and AT&T.
NUI Corporation, based in Bedminster, NJ, owns 49 percent of TIC
Enterprises. In addition, NUI operates natural gas utilities
serving more than 370,000 customers in six states along the
eastern seaboard. NUI also operates businesses involved in
wholesale and retail energy sales; energy and environmental
project development; energy consulting; telecommunications; and
customer and geographic information systems and services.
This press release contains forward-looking statements. These
statements are based on our management's current expectations and
information currently available and we believe the statements are
reasonable and are made in good faith. However, the forward-
looking statements are subject to risks and uncertainties that
could cause actual results to differ materially from those
projected in the statements. Factors that may make the actual
results differ from anticipated results include, but are not
limited to, economic conditions; competition from other providers
of similar products; and other uncertainties, all of which are
difficult to predict and some of which are beyond our control.
For these reasons, you should not rely on these forward-looking
statements when making investment decisions. Whenever we use the
words "expect", "believe", "project", "anticipate", "intend",
"should", "could" or similar expressions, we intend to identify
forward-looking statements. We do not undertake any obligation
to update publicly any forward-looking statement, either as a
result of new information, future events or otherwise.
Exhibit 10.1
U.S. POSTAL SERVICE: OFFER AND AWARD STANDARD
1. CONTRACT NUMBER: 102592-00-B-0160
2. SOLICITATION NUMBER: 102590-99-A-0072
3. REQUEST NUMBER : 99-03488
4. SOC/EC: I
5. COMMODITY: R419H
___________________________________________________________________________
6. a. ISSUED BY: ACO CODE: 102592 b. FOR INFORMATION CALL:
U.S. Postal Service Name: Robert Oates III
Purchasing Room 4541 Title: Purchasing Specia
475 L'Enfant Plaza SW Tel: (202) 268-6053
Washington, DC 20260-6237 Email:Roates email.usps.gov
___________________________________________________________________________
7. a. OFFEROR/CONTRACTOR
TIC Enterprises b. Contact Name: Ted Jenkins
645-I Hembree Parkway c. Telephone No: (770)740-8046
Roswell, GA 30076 d. TIN/SSN: 58-2313873
e. Parent TIN:
TIN-Taxpayer Identification Number
f. Remittance Name and/or Address: (If different from above)
___________________________________________________________________________
8. DELIVERY/PERFORMANCE REQUIREMENTS:
See Section C
___________________________________________________________________________
9. ITEMS & PRICES/GENERAL DESCRIPTION OF REQUIREMENT:
See Section A
___________________________________________________________________________
10. DISCOUNT FOR PROMPT PAYMENT: Net 30
___________________________________________________________________________
11. a. ACCEPTED AS TO ITEMS NUMBERED: (Completed by USPS)
b. GRAND TOTAL: $28,000,000.00 c. NET TOTAL:
___________________________________________________________________________
12. BILLING INSTRUCTIONS (Submit Invoices to):
USPS, TMSD Attn: Teresa Moe
2111 Wilson Blvd. Suite 1100 Arlington, VA 22201-3001
___________________________________________________________________________
13.SIGNATURES: OFFEROR/CONTRACTOR U.S. POSTAL SERVICE
______________ __________ _______________ ____________
Signature Date Signature Award Date
___________________________ ____________ ______________________
Name of Person Authorized Title Lynda Zelnick
to Sign Offer
___________________________________________________________________________
Distribution: Original - File Copy - Contractor
SECTION A
ITEMS AND PRICES
A.1 COMMISSION FEE
A.1.1 The provider's Commission Fee percentage is:
Yr. 1 of
Contract Yr. 2 Yr. 3 Option 1 Option 2
Priority Mail 19.35 19.25 18.75 18.75 18.75
Express Mail 19.35 19.25 18.75 18.75 18.75
Global
Priority Mail 17 17 17 17 17
Express Mail
International 17 17 17 17 17
Buy Back
Compensation 1.3 1.3 1.3 1.3 1.3
Breakaway Compensation: ( See A.4 Breakaway Fee )
A.1.2 Commission Fee Defined
The Commission Fee is the amount which the USPS will pay to the
Provider for services rendered in the sales of USPS products
(Priority Mail, Express Mail, Global Priority Mail and. Express Mail
International) herein after "the core products." Based on the
descriptions of these products found in Section B.1 of the Statement
of Work, the provider will be compensated at the % set forth above
for each particular class of product sold for the performance period
of the contract.
A.2 Buyback Compensation
A.2.1 Buyback Compensation
At the discretion of the USPS and/or the product end user (i.e.
customer), accounts reaching $250,000 and above in annualized revenue
and/or operational complexities requiring account management by the
USPS can be bought back from the Provider.
A.2.2 Buyback Description
Account reviews will be held between the USPS and the Provider at the
end of each postal quarter, in each participating Metro/District
site, to determine which (if any) accounts the USPS would like to
buyback. A buyback action would be subject to the client's approval
of account transition to the USPS.
Annualized net revenue will be calculated as the average of the last
three (3) months revenue over the baseline times twelve (12) less
commissions paid during the last 3 months used to obtain average.
This annualized sum will be multiplied by the buyback compensation
above, and then multiplied by the prevailing commission rate (at time
of buyback). The provider will be responsible for reporting any
"seasonality" or customer usage habits, which may cause average
pricing for a 3 month period to go higher than normal. Failure to do
so could cause a more detailed auditing and refund due to the USPS.
In the event the USPS is unable to maintain or loses the client's
business (after a ninety (90) day period of time), the Provider may
contact and reestablish the account at the current prevailing
commission rate.
A.3 Finders Fee
A.3.1 Finders Fee Core Business
In those cases where the Provider identifies a potential sale in
excess of $250,000, the Provider shall notify the USPS District
Provider Manager, and a joint call will be made to the client. If
the USPS secures the business and stabilizes the account, the
finder's fee would be calculated at the commission rate of 5% x the
value of the sale, which is defined as the initial mailing and all
mailings within 90 days. Any sale exceeding $1,000,000 will be paid
at the maximum payout rate $50,000. The account then becomes the
responsibility of the USPS.
Example: $1,000,000 sale of core products
$1,000,000 at 5% = $50,000
A.4 Breakaway Fee
If the USPS terminates this contract for convenience, in whole or in
part, or issues a deductive modification breakaway fees should be
paid. Breakaway fees will not be paid in the event of Termination
for Default.
Due to the contractor's investment in this program, a breakaway fee
will be paid for early termination in any metro area by the Postal
Service. The Postal Service will pay the provider a breakaway fee
based on total number of active accounts (demonstrated usage within
past 6 months) in SMART SFA database based multiplied by a dollar fee
per customer. The Postal Service has determined the required
complement of sales representatives in each major metro. The total
number of required sales representatives for all metros is 237
individuals. The maximum number of accounts the Postal Service will
recognize by any single sales representative is 500. In the event
secondary markets are added to the initial metros a predetermined
requirement of sales representation for each market will be provided.
Example: Total number of customers in SMART SFA database multiplied
by a predetermined fee per customer for each year.
Year 1 at $65 per customer
Year 2 at $75 per customer
Year 3 at $65 and Option Years at $50 per customer
Maximum payout equal to 118,500 customers at anytime (237 reps x
500).
Optional Secondary Markets: Maximum payout equal to 168,000 customers
at anytime
(336 reps x 500).
A.5 Secondary Markets (Option)
The rates stated in Line Item A.1.1 will apply to secondary markets
for the base period and option years. The total number of required
sales representatives in secondary markets will be determined by the
USPS. Upon notice from the Contracting Officer, the provider shall
be required to provide services into or up to 85 secondary markets.
The USPS reserves the right to require the provider to service up to
85 secondary markets for one year. After one year the provider is
granted right of first refusal for the remaining secondary markets.
SECTION B
STATEMENT OF WORK
B.1 Background
The United States Postal Service (USPS) has three corporate goals:
improve customer satisfaction by offering superior customer value;
improve financial performance by growing volume from existing
products; and improve employees' effectiveness by having the right
people in the right place with the right tools at the right time to
provide superior customer value. In one initiative aimed at reaching
these goals, the Postal Service formed the New York Metro Sales Force
Augmentation (SFA) program to increase revenue generated from
expedited products through the use of direct sales, and to improve
customer satisfaction by increasing the attention paid to small and
medium sized businesses.
This organization was designed and deployed to augment existing
Postal Service sales efforts of the New York Metro area and was in
place for approximately one and a half years. The group was
comprised of approximately 18 contract sales persons, two sales
managers, and two administrative support staff. Competing against
FedEx, UPS, and other expedited service carriers for the business-to-
business and business-to-home market, the SFA group has demonstrated
that it can penetrate new customer markets and add incremental sales
revenue for expedited delivery mail products (Priority Mail, Express
Mail, Express Mail International Service and Global Priority Mail).
Priority Mail
First-Class Mail weighing over 11 ounces; at the mailer's
option, any mail weighing 11 ounces or less. Priority Mail
generally offers 2-day service to most domestic destinations.
Often used to expedite matter mailable as First-Class,
Periodicals, or Standard Mail.
Express Mail
Guaranteed expedited postal service for shipping any mailable
matter. It offers next day delivery by 12 noon to most
destinations. Express Mail is delivered 365 days a year with no
extra charge for Saturday, Sunday, or holiday delivery. Express
Mail International Service is available between the United
States and more than 200 foreign countries.
Global Priority Mail
Expedited airmail letter service providing fast, reliable, and
economical delivery of all items mailable as letters or
merchandise up to 4 pounds. Global Priority Mail items receive
priority handling in the United States and in destination
countries.
Express Mail International Service (EMS)
This is the fastest, expedited International Service available
through the USPS. EMS is available to over 180 foreign
countries. Both letters and parcels (over 4 lbs. are acceptable
to most participating countries). EMS includes automatic
insurance (for theft, damage, or rifling) for up to $500. EMS
shipments receive the highest priority expedited handling in
both the USA and the designating country.
The New York SFA pilot was terminated in May, 1998, in order to
pursue two new sites and test a different sales model in order to
accomplish the same goals.
The USPS Tactical Marketing and Sales Development group (TMSD)
inherited program responsibility for this effort and expanded the
program beyond the initial test site into three additional pilot
sites (Atlanta, San Francisco and Los Angeles) during 1998. These
pilot sites allowed the USPS to transition from independently
contracted sales representatives (used in New York) to a "full-
service contract provider model." Based on the success in these
pilot sites, the U.S. Postal Service will expand SFA to include a
total of 12 metropolitan areas, and create the base of operation and
infrastructure to promote SFA throughout a total of 85 postal
districts within the USA.
B.2 Objectives
The USPS TMSD group has several specific objectives in developing
these pilot projects:
- Target high-potential metro areas, segments, and companies,
initially with select expedited products
- Increase new business development and account acquisition
capabilities
- Increase selling activity against targeted companies
- Drive measured revenue growth in targeted segments and industries
- Increase customer satisfaction in targeted accounts
- Learn from pilot projects to ensure a successful national
implementation in partnership with the providers
B.3 Scope
The Postal Service desires support from sales force providers to
implement augmented sales forces in: New York, Boston, Philadelphia,
Washington DC, Miami, Chicago, St. Louis, Dallas, and Denver.
Additionally, three existing sites: Atlanta, San Francisco, and Los
Angeles, will be included in this solicitation as part of four (4)
Geographically divided regions. Provider managed sales
representatives will sell Priority Mail, Express Mail, Global
Priority Mail, and Express Mail International Service in the
geographic market(s) for which they are selected. Providers shall
share information that will lead to the continual improvement,
progress, and growth of the sales force augmentation program through
constant monitoring and marketing analysis conducted on the
information they gather on behalf of the Postal Service.
The U.S. Postal Service currently divides itself geographically into
ten (10) Areas and 85 Districts. This is to create the mail
processing and transportation hub supports necessary to effectively
pickup, process, and deliver mail seven days per week and meet all
USPS delivery standards. SFA will align itself with the existing
USPS infrastructure in order to ensure expedited mail delivery will
not be compromised.
Each region will include three major metros. A major metro can
include more than one district (example: San Francisco metro
includes: San Francisco District, San Jose District and Oakland
District). See Attachment D to this Statement of Work USPS
Geographic Matrix for complete breakdown of all metros and districts.
Additionally, each region under contract will include the rights to
expand and conduct SFA activity in secondary markets. These are
other USPS districts which may have enough opportunity to support an
SFA initiative. Secondary markets will not be pursued by the
successful contractors until the Major Metros and the included
Districts are 100% staffed, operational, and meeting SFA goals and
objectives. Only then will the USPS allow SFA activity to be
conducted in additional market. Participation and order of start-up
for the secondary markets will be at the discretion of the USPS SFA
Management team and the participating Districts.
The most important factor in creating a successful SFA program is the
generation of new revenue. Acquisition of new customers and growing
incremental revenue from existing customers are also important. It
is also critical that the providers work closely with USPS, TMSD, and
District personnel to establish working relationships that foster
teamwork and result in satisfied customers.
B.4 Market Analysis
The following information represents what the potential providers
might expect for both the business opportunity and the sales
environment. This information is derived from the opportunity
assessment performed by an independent, third-party consulting firm
which has assisted the USPS in developing the SFA business plan.
The projected new and incremental revenue gains in each target market
are displayed in the following chart:
Metro Market FY-2000 FY-2001 FY-2002
(Western
Region)
Los Angeles 22,014 35,985 48,949
San Francisco 14,984 24,502 33,336
Denver 3,892 15,286 20,807
(Midwest
Region)
Chicago 12,488 30,647 41,715
St. Louis 2,113 8,293 11,285
Dallas 4,525 17,753 24,148
(Northeast
Reg.)
Boston 8,413 20,607 28,011
Philadelphia 2,504 6,133 8,335
New York 2,311 45,206 61,381
(Southeast
Reg.)
Washington, 10,780 26,426 35,941
DC
Atlanta 7,870 12,855 17,476
Miami 2,255 8,837 12,012
Total 94,149 252,530 343,396
All revenue figures are in 000's
USPS fiscal year is Mid-September to Mid-September
These revenue amounts are considered to be estimates based on
projections of market potential in the respective metro areas. For
additional detail on the market potential in the pilot areas and the
actual revenue generation experience in pilot metros, see Attachment
A.
B.5 Customer Service
Sales representatives can have a positive impact on customer service
and customers' perception of the USPS. Provider managed sales
representatives must have a customer service mentality and be willing
to provide information and help to customers. During orientation
training, USPS management will educate the sales representatives in
general USPS information and equip them with the proper postal
contacts to which customer inquiries can be referred. Sales
representatives' initial readiness will be measured by their ability
to attain USPS Certification during the initial three day training.
Further verification of effect on customers will be measured by a
customer satisfaction survey administered by the USPS.
B.6 Customer Supply Levels
Because customers do not have to pay for the shipping
supplies/products up front, they are willing to accept larger volumes
of product than their need may dictate. Because the USPS is charged
for the cost of these shipping supplies/products when they are
shipped, the USPS is very interested in customers maintaining an
appropriate level of supplies neither under or over-supplied.
Therefore, we expect that provider managed sales representatives will
maintain these levels and that the provider will, if necessary,
implement incentives to ensure that they do.
B.7 Provider Expectations
The provider will be expected to offer sales expertise to rapidly
capitalize on the revenue opportunities in the pilot city markets.
Potential providers should propose sales methods and approaches to
addressing the typical outside sales force activities listed below.
B.7.1 Sales Management Activities:
1.Hiring - Hire and retain motivated sales personnel who can
productively achieve incremental revenue and attain new customers.
2.Sales Training and Coaching - Ensure sales representatives are
skilled in selling principles, client relationship management and
building follow-on sales. Provider must deliver specific product
training to new sales representatives after the initial USPS
provided training. Through the USPS Train-the-Trainer program, the
contractor will attain "USPS Trainer Certification". Training may
be periodically monitored by USPS management. Furthermore, each
individual SFA sales representative will have to achieve
"certification" prior to being allowed to sell the USPS expedited
product line.
3.Evaluating - Design and maintain incentives that will motivate the
sales force to achieve revenue, sales activity, customer
satisfaction goals, and monitor sales representatives.
4.Customer Coverage Planning - Establish and monitor coverage
territories for each individual sales representative in the target
markets. Includes lead management and regular interaction with
TMSD.
5.Communication - Work closely with TMSD program managers and
District Management to communicate opportunities, progress and
lessons learned.
B.7.2 Customer Management and Selling Activities:
1.Customer Planning - Sales representatives shall develop and report
to management plans that will include: individual selling goals,
customer calls, and time frames for achieving established sales
plan for the representative's territory.
2.Lead Generation - Sales representatives must actively manage leads
to ensure adequate prospects in the sales funnel through the use
of: public databases, direct marketing and cold calls in
conjunction with leads provided by TMSD.
3.Direct Selling - Sales representatives are responsible for actively
pursuing new customers, as well as coordinating efforts with USPS
District sales and customer service personnel.
4.Operational Coordination - Sales representatives must proactively
coordinate with, and provide early problem notification to, USPS
operational personnel in the District to ensure delivery of
customer orders and to meet customer needs.
B.7.3 Sales Administration and Payroll Activities:
1.General Administration - General correspondence, recording, filing
and all other administration related to the operation and
management of the contracted sales force. This will include
contract billings and invoicing to USPS. (See Attachment E. 1)
2.Compensation Administration - The responsibility for documentation,
reporting and administering of the sales force compensation will be
based on the accurate completion and compliance of the USPS
inventory order process, and proper reporting of the prescribed
measurement factors to the USPS.
(See Attachment E.2)
3.Office Facilities - Locating, securing and maintaining office
facilities required for provider management and administrative
staff and the sales representatives if the provider so desires. The
USPS strongly suggests the contractor maintain an _office presence_
in at least each of the 12 metro cities (or within commuting
distance), for the purpose of housing permanent program records,
storing collateral sales supplies and literature, conducting sales
meetings, etc.
B.7.4 Sales and Revenue Tracking Activities:
1.Sales Tracking and Reporting - Equip sales force with the tools to
track and report individual sales representative results and
activities versus goals and targets. Hard copy and electronic data
reports must be submitted to TMSD and District program management.
The following is a list of reports and data requirements. This
list is not, however, all-inclusive.
- Number of sales calls per week by representative
- Number of new accounts established per week by representative
- Orders placed per week by representative and by customer
- Product inventory levels and product usage by customer
(frequency of this information will vary from twice monthly to bi-
monthly depending on customers' reorder volumes). .
2. Information Technology - USPS expects that the provider will
program, operate and maintain a system for recording, tracking, and
reporting of sales data. Section B, Attachment F contains a computer
code and data dictionary for contractors to develop an electronic
database system which is compatible with USPS database requirements.
Furthermore, it be the contractors responsibility to facilitate daily
transmissions of necessary information into the USPS system, once it
is up and running at 100% capacity. In addition the provider shall
convert files to .XML format (per Idevco specifications provided).
The provider should specify the methods that will be used to provide
specific activity, volume and revenue reports, and provide
documentation to ensure compatibility with the USPS system.
3. Bar Coded Labels
Sales representatives will be required to distribute, and possibly
affix bar coded labels to, all products provided to a sample of
customers for a four-week period during each quarter. Prior to each
sampling period, the USPS will identify the customers to whom sales
representatives will distribute the bar coded labels.
At some point in time, all USPS packaging will possess the likelihood
of having unique barcode application. The USPS will work with the
provider to ensure timely and smooth transition to this system. When
this occurs, it will become the customers' responsibility to affix
barcodes to the packaging.
B.8 PAYMENT TO THE PROVIDER
The provider will paid on a monthly basis computed as follows: (1)
unit rates shown in Section B.8.1 below.; (2) the actual customer
usage during the previous month as described in Section B.8.2 below.;
(3) the commission fee percentage established in Section A.1 of the
contract.
B.8.1 UNIT RATES FOR EXPEDITED PRODUCTS
Express Mail International Service (EMS) $26.50
Express Mail $13.99
Priority Mail $3.80
Global Priority Mail $7.43
B.8.2 ACTUAL CUSTOMER USEAGE
The actual customer usage involves two elements; (1) the baseline
established for the customer for each product; (2) number of units of
expedited products put in the USPS mail stream by the customer.
Actual customer usage is computed by subtracting the baseline figure
for each product from the amount of the corresponding product put
into the mail stream by the customer. While baseline numbers will
initially be computed on a "weekly" basis, they will later be
transferred to a "monthly" total with the intent of "assessing" and
"invoicing" for the month.
B.8.2.1 Base Line
On the initial contact with each customer, the provider shall
establish a baseline amount of each USPS expedited product units the
customer is currently using on a weekly basis. The Provider shall
report the baseline numbers weekly to the USPS. The USPS reserves
the right to verify the baseline numbers submitted by the provider on
a weekly basis in accordance with USPS Sales Force Augmentation
Program District Provider Analyst Guide dated June 1999. (See
attachment F "Script for Baseline Audit"). Once a baseline is
verified through USPS audit procedures the baseline is locked and not
subject to change, unless both parties agree (i.e. seasonal
customer). The USPS will provide a list of customers not audited
weekly to the provider. Upon request from the USPS District Provider
Analyst (DPA) the provider shall supply the Customer Profile Form,
Customer Supply Order Form, and the Account Inventory Maintenance Log
for all requested customers within 48 hours.
The contractor will not be able to adjust individual customer
baselines after submission to the USPS without first notifying the
USPS District Provider Manager of the baseline change, as well as
documenting the reason warranting the change. Changes to baseline can
only be made with the written consent of the USPS District Provider
Manager. Any changes or violation of this baselining requirement
discovered by the USPS during routine audits will result in a full-
scale investigation of contractor records, possible substantial
delays in commission payments, and possible termination for default.
B.8.2.1.1 New USPS Expedited Products Customers
If a customer is not using any one of the USPS expedited products on
a repetitive basis, the baseline for that product would be 0 units
per week.
B.8.2.1.2 Existing USPS Expedited Products Customers
If a customer is using any one of the USPS expedited products on a
repetitive basis, the provider shall establish a baseline which
equates to the customer's average monthly usage of that product.
B.8.2.2 Products Put In The Mail Stream
B.8.2.2.1 Provider's Assessment
Each month, the provider will determine the number of units of each
product put in the USPS mail stream by each customer. The provider
will compare the number of units for each product put in the mail
stream to the customer's baseline for that product (accumulation of
weekly baseline totals for the month). Those units over the baseline
amount will constitute the Provider's assessment of products put in
the mail stream for that month.
B.8.2.1.2 USPS Assessment
Each month, the USPS will use the methods listed in Attachment B, and
other methods determined to be pertinent by the USPS, to determine
the number of units of each product put in the USPS mail stream by
any customer. The USPS will compare the number of units for each
product put in the mail stream to the customer's baseline for that
product per month. Those units over the baseline amount will
constitute the USPS' assessment of products put in the mail stream
for that month.
B.8.3 Customer Usage
The Provider shall submit customer usage reports weekly to the USPS .
The Provider's assessment of products put in the mail stream will be
compensated within the contract prescribed payment terms. The USPS
may in its discretion conduct weekly audits to verify this past usage
in accordance with USPS Sales Force Augmentation Program District
Provider Analyst Guide dated June 1999. (See attachment F "Script for
Usage Audit"). The USPS will provide a list of customers not audited
weekly. Adjustments may be made (up or down) based on actual audit
findings during the 3 months after submission of a bill.
B.8. 3.1 Reconciliation
The Provider shall submit monthly commission reports to the USPS.
The USPS may in its discretion conduct monthly audits to verify
commission reports. The USPS will provide notification of the audit
results to the provider. Upon receipt of the audit results the
Provider shall submit a monthly invoice to the COR for approved sales
revenue and payment.
If there is a discrepancy between USPS audit findings, and actual
payments made to the contractor, the provider may present information
to the Regional Team Leader, which supports its assessment in
accordance with attachment G "Challenge Process". Any information
submitted by the Provider will be evaluated by the COR. Within 60
days, the COR will advise the Provider of the results of his/her
review. Notification will include any upward or downward adjustment
of previous payments which the COR has determined as appropriate.
The Provider would then be eligible to submit an invoice for any
upward adjustment owed.
If the Provider disagrees with the COR's quarterly decision, it may
appeal to the Contracting Officer. Nothing in this paragraph shall
eliminate any rights, which the USPS may have under Clause B-14,
Examination of Records.
B.8.4 COMMISSION FEE PERCENTAGE
The commission fee percentage is that which was proposed by the
Provider and accepted by the USPS (See Section A.1). The commission
fee percentage will be applied to the dollar amount computed by
multiplying the number of units identified in the pertinent
assessment of products in the mail stream (see Section B.8.2 above)
times the unit price for each of the products.
B.8.5 PAYMENT COMPUTATION
The payment amount due to the Provider will be computed as follows:
(Units in the mail stream - baseline) x (commission fee) x (product
unit price) equals amount of payment due the provider
B.8.6 FUTURE RATE ADJUSTMENTS
The USPS operates as an independent establishment of the Executive
Branch, without tax subsidies. Rate increases (in the form of USPS
Rate Cases) are periodically performed in order to adjust pricing in
order to affect its "break even" status. The USPS will adjust the
per piece unit price paid for each product line sold based on the
percent increase (by each individual product category) for that
particular rate case. (Example - if a future Rate Case increases the
across the board average price of Express Mail by 5%, then the $13.99
used as the average revenue piece cost would increase by 5% , or .70,
to $14.69. the same type of adjustments would be made to the other
three products based on their individual average across the board
price increase.)
As technology improves, and barcode scanning can be performed to
accurately measure size, weight, and actual price of each individual
piece deposited by the contractor's customers into the USPS mail
stream, the USPS may revise measurement systems to pay commissions
based on actual sales revenues measured by barcode scanning. By
entering into the SFA contract with USPS, the provider agrees in
advance to acceptance of any such changes to methods of measuring
sales for the purpose of calculating commissions.
B.9 USPS Roles and Responsibilities
The TMSD project manager and District management will:
1. Set general overall goals and program direction for the augmented
sales program and evaluate program performance, productivity levels
and effectiveness
2. Assist the provider in the identification of target areas and
customers. TMSD will provide to provider' upper management a list of
managed accounts and TMSD accounts that are within the purview of the
USPS Customer Relations group and the TMSD group. TMSD will also
provide a list of prospects that the USPS is pursuing through its'
own internal sales channel. The Provider sales representatives will
have no contact with these accounts.
3. Supply the provider with marketing materials relating to Postal
products.
4. Conduct direct mailing and advertising campaigns.
5. Maintain and deliver supplies of products to targeted customers as
a result of a sale or re-orders.
6. At the onset of the program, the USPS will train provider
management and sales representatives in postal products, protocols,
and USPS operational procedures and customer selection/ market
segmentation criteria. After initial orientation training, and
successful completion of the Train-the-Trainer certification program
by the contractor, the USPS will no longer be responsible for the
direct training of additional sales representatives.
7. Provide training to provider Sales Managers on an as-needed basis
resulting from changes in products, customer profiles or other
circumstances as so determined by the USPS
8. Assist the provider on an as-needed basis, as determined by the
USPS, for developing customer relations
9. Identify customer accounts to be transferred to the USPS managed
account program
10.Arrange for administration of a customer satisfaction survey of
targeted customers
B.10 Provider Limitations
Certain activities are prohibited due to USPS organizational and
regulatory limitations (Please see Attachment C for more detail on
USPS Account Management). The provider shall not:
- Call upon large corporate accounts known as Managed Accounts.
Managed accounts are selected large postal customers that account for
$250,000 or more of annual revenue for the USPS. This is total USPS
revenue, which includes expedited products as well as other Postal
products (first class mail, standard A mail, etc.). A list of these
already established managed accounts will be given to the provider
upon contract award and will be updated quarterly to ensure there
will be no overlap with the targeted companies within each metro
area.
- Call upon known USPS Prospects. The USPS will provide monthly
lists of opportunity accounts (in excess of $100,000) currently being
pursued by USPS TMSD Sales Specialists. These prospects have the
potential to qualify for "managed account status" and are not the
intended target market of the SFA program.
- Conduct independent advertising campaigns or direct mail campaigns.
- Promise any volume discounts to customers or potential customers
- Pursue individual customer sales opportunities in which an
individual transaction exceeds $100,000 without involving TMSD
management. When such opportunities are identified, TMSD sales
professionals will team with provider representatives to close the
sale and possibly set-up additional services for the customer.
Provider representatives may then be expected to service these
accounts and revenue from the accounts will be credited to them.
B.10.1 Quarterly Reviews
The COR, USPS District Provider Manager, contractor/provider manager,
and local USPS business customer relations manger will conduct
quarterly account reviews with the following intent:
- review for managed account or opportunity account overlap
- arrange for "buyout" of mutually agreed upon accounts as agreed
upon in Schedule A.
- arrange for "finders fees" to be paid based upon provisions of
Schedule A.
Section B: Statement of Work
Attachment A:
Results from Existing Pilot and Target Market Potential
The Sales Force Augmentation effort is projecting sufficient returns
to provide both USPS and the sales force provider with an attractive
return. The SFA business plan contains detailed forecasts for the 12
metro markets* which are listed below.
*Note: For forecasting purposes, the Metro Markets are comprised of
the metropolitan statistical area for the location. The actual
revenue numbers have been prorated based on anticipated fraction of
fiscal year 2000 SFA will actually be in effect. The sums listed as
anticipated revenue, customer base and incremental revenue are
estimates only.
Atlanta
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 13
Total Anticipated
Revenue FY00 $7,870,000
Target Customer Base 46,067
Boston
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 19
Total Anticipated
Revenue FY00 $8,413,000
Target Customer Base 69,398
Chicago
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 26
Total Anticipated
Revenue FY00 $12,488,000
Target Customer Base 97,525
Washington, DC
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 31
Total Anticipated
Revenue FY00 $10,780,000
Target Customer Base 57,499
Dallas
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 14
Total Anticipated
Revenue FY00 $4,525,000
Target Customer Base 42,387
Denver
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 10
Total Anticipated
Revenue FY00 $3,892,000
Target Customer Base 25,611
Los Angeles
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 35
Total Anticipated
Revenue FY00 $22,014,000
Target Customer Base 51,907
Miami
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 10
Total Anticipated
Revenue FY00 $2,255,000
Target Customer Base 28,915
New York
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 30
Total Anticipated
Revenue FY00 $ 2,311,000
Target Customer Base 93,215
Philadelphia
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 15
Total Anticipated
Revenue FY00 $2,504,000
Target Customer Base 56,324
San Francisco
(includes San Francisco, San Jose and Oakland Districts rather than
MSA data)
Incremental Revenue per $300,000
Rep
# of Anticipated Reps 24
Total Anticipated
Revenue FY00 $14,984,000
Target Customer Base 106,374
St. Louis
Incremental Revenue per
Rep $300,000
# of Anticipated Reps 10
Total Anticipated
Revenue FY00 $2,113,000
Target Customer Base 31,087
Based on the experience in the pilot sites, the USPS estimates that
each sales representative should be able to generate at least
$300,000 of new postal revenue in the first year. This revenue will
be generated from approximately 200 to 300 customers, many but not
all of whom will be new users of the USPS' expedited products.
The numbers were derived from market research in Atlanta and San
Francisco. The USPS considers these estimates to be conservative,
and would expect them to increase substantially in the subsequent
years. The USPS understands that each metro will experience
different results. The expectation is that the sales call levels may
be less for areas with more geographical dispersion than a densely
populated metro area (like Manhattan). Additionally, the USPS
expects that a professional sales management company will employ
techniques that maximize results per sales rep in a shorter time
frame than the existing USPS managed group is achieving.
Section B: Statement of Work
Attachment B:
USPS Methods For Assessing Product Units In The Mail Stream
1. Bar Coded Labels - The USPS will gather data from the bar-coded
labels delivered to customers by the provider in accordance with
Section B.8.4.
2. Direct Customer Contact - Representatives from the USPS may
contact customers directly to determine usage rates for the various
products. Contact with the customer may include review of the
customer's inventory of USPS materials which the customer uses to
actually put USPS products in the mail stream.
3. Distribution Center - The USPS will use data from its Central
Distribution Center (i.e. DDD). That Center will supply all
customers with the materials they need to put products in the mail
stream.
4. Other tests - the USPS will periodically conduct tests using other
measurement factors including use of specially designed postage
meters, Express Mail Label audits, electronic manifesting and other
methods that suggest improvement in current measurement systems.
Section B: Statement of Work
Attachment C:
USPS Account Management
The following diagram illustrates the target market for the Sales
Force Augmentation.
Account Breakout Responsibility
National Accounts USPS Nat'l
250 Accounts Account Manager
Premier and Major USPS Acct.
Accounts Reps
($250K-$1 million)
100,000 accounts
Provider Target market Provider Reps
3 million potential with TM&SD
clients BSN
Section B: Statement of Work
Attachment D:
Contract Geographic Matrix
SFA REGIONAL ALIGNMENTS
USPS AREA MAJOR DISTRICTS
ALIGNMENT METROS INCLUDED
INCLUDED W/METROS SECONDARY MARKETS
WESTERN Pacific San San
REGION Area Francisco Francisco
(E) District
(E)
San Jose
District
(E)
Oakland
District
(E)
Sacramento
District
(E)
Los Los Honolulu District
Angeles Angeles
(E) District
(E)
Long Beach
District
(E)
Santa Ana
District
(E)
Van Nuys
District
(E)
San Diego
District
(E)
Western Denver Denver Albuquerque
Area (Q2, District District
FY00) (Q2, FY00) Anchorage
District
Billings District
Las Vegas
District
Phoenix District
Portland District
Salt Lake City
District
Seattle District
Spokane District
Key:
(E)= Existing Site, to continue
Q1, FY00= Quarter 2, FY 2000 Scheduled Implementation
Q2, FY00= Quarter 3, FY 2000 Scheduled Implementation
Q3, FY00= Quarter 4, FY 2000 Scheduled Implementation
SFA REGIONAL ALIGNMENTS
USPS AREA MAJOR DISTRICTS SECONDARY MARKETS
ALIGNMENT METROS INCLUDED
INCLUDED W/METROS
Central Southwest Dallas Dallas Arkansas District
Region Area (Q3, District Houston District
FY00) (Q3, FY00) Louisiana
Forth District
Worth Oklahoma District
District San Antonio
(Q3, FY00) District
Midwest St.Louis Gateway Central Plaines
Area (Q3, District District
FY00) (Q3, FY00) Dakotas District
Hawkeye District
Mid-America
District
Milwaukee
District
Northland
District
Great Chicago Chicago Detroit District
Lakes (Q2, District Greater Indiana
Area FY00) (Q2, FY00) District
Central Greater Michigan
Illinois District
District Royal Oakes
(Q2, FY00) District
Northern
Illinois
District
(Q2, FY00)
SFA REGIONAL ALIGNMENTS
USPS AREA MAJOR DISTRICTS SECONDARY MARKETS
ALIGNMENT METROS INCLUDED
INCLUDED W/METROS
North- New York New York New York Caribbean
east Metro (Q4, FY00) District District
Region (Q4, FY00) Central New
Long Island Jersey District
District
Northern
New Jersey
District
Triboro
District
Westchester
District
Northeast Boston Boston Albany district
Area (Q2, FY00) District Connecticut
(Q2, FY00) District
Middlesex- Maine District
Central New Hampshire
District District
(Q2) Springfield
Providence District
District Western New York
(Q2, FY00) District
Allegheny Philadel- Philadel- Akron District
Area phia (Q2, Phia Cincinnati
FY00) District District
(Q2, FY00) Cleveland
District
Columbus District
Erie District
Harrisburg
District
Lancaster
District
Pittsburgh
District
South Jersey
District
SFA REGIONAL ALIGNMENTS
USPS AREA MAJOR DISTRICTS SECONDARY MARKETS
ALIGNMENT METROS INCLUDED
INCLUDED W/METROS
South- South- Atlanta Atlanta Alabama District
east east Area (Q3, FY00) District Mississippi
Area District
South Georgia
District
Tennessee
District
Washington Capital Appalachian
DC (Q2) District District
(Q2) Columbiana
Northern District
Virginia Greensboro
District District
(Q2) Kentuckiana
Baltimore District
District Mid Carolinas
(Q2) District
Richmond District
Miami Southern Central Florida
Florida District
District Northern Florida
(Q3) District
SECTION C
DELIVERY OR PERFORMANCE
C.1 CLAUSES INCORPORATED BY REFERENCE
The following clauses are incorporated by reference as if set forth
in full text. The full text versions of these clauses are available
upon request.
CLAUSE
NUMBER DATE TITLE
B-15 January 1997 NOTICE OF DELAY
B-16 January 1997 SUSPENSIONS AND DELAYS
B-19 January 1997 EXCUSABLE DELAYS.
C.2 PERIOD OF PERFORMANCE
The initial period of performance shall begin on the day of contract
award, and shall continue for three years. Additionally, the Postal
Service may extend the performance period in accordance with Section
H, Clause 2-19, OPTION TO EXTEND. The Contracting Officer will
notify the Provider in writing of the Postal Service's intention to
exercise its option at least sixty days prior to the end of any
performance period.
Each contract extension shall be for two years commencing on the
first day following the end of the current period of performance.
The term of the contract, including extensions shall not extend for
more than seven years (the initial period plus two option periods.)
C.3 SCHEDULE
Implementation will be initiated in two phases. Phase I (Postal
Quarter 2, FY 2000) implementation will begin upon contract award.
Phase II implementation will begin Postal Quarter III (See Section B
Attachment D)
There will be an initial kickoff/post award meeting in each of the
Phase I metro areas with the provider management within 15 business
days after contract award. There will be an initial kickoff/post
award meeting in each of the Phase II metro areas with the provider
management within 15 business days after the beginning of Postal
Quarter III (February 26, 2000)
The provider shall provide sales representatives available for three
days of USPS training within 45 business days after contract award
for Phase I metro areas. The provider shall provide sales
representatives available for three days of USPS training within 90
business days after contract award for Phase II metro areas.
Sales representatives shall begin visiting customers within the Phase
I metro areas within 60 days after contract award. Sales
representatives shall begin visiting customer within the Phase II
metro areas within 120 days.
THE NEXT SECTION IS E
SECTION E
INSPECTION AND ACCEPTANCE
E.1 CLAUSES INCORPORATED BY REFERENCE
The following clause is incorporated by reference as if set forth in
full text. The full text version is available upon request.
CLAUSE
NUMBER DATE TITLE
2-1 January 1997 INSPECTION AND ACCEPTANCE
E.2 CONTRACTING OFFICER'S REPRESENTATIVE
A contracting officer's representative (COR) will be appointed by the
contracting officer. The contracting officer will notify the
contractor in writing of the name, address, and telephone number of
the COR prior to the start date of the contract. The notification
will also include a delineation of the responsibilities and
limitations of the COR.
The Postal Service may change the COR or his duties at any time. The
contracting officer will notify the provider of any COR changes
including the responsibilities and limitations.
E.3 DELEGATION OF INSPECTION AND ACCEPTANCE
The contracting officer's representative is hereby delegated the
responsibility and authority to conduct inspection and acceptance
duties for this contract.
SECTION F
PAYMENT AND FUNDING
F.1 CLAUSES INCORPORATED BY REFERENCE
The following clauses are incorporated by reference as if set
forth in full text. The full text versions are available upon
request.
CLAUSE
NUMBER DATE TITLE
B-20 January 1997 INVOICES
B-2 January 1997 INTEREST
2-26 January 1997 PAYMENT - FIXED PRICE
F.2 CLAUSE B-17 DISALLOWANCE OF COSTS (JANUARY 1997)
A. The contracting officer may at any time issue the Supplier a
written notice of intent to disallow specified commissions under this
contract that have been determined not to be allowable under the
contract terms.
B. The supplier may, after receiving a notice of intent to disallow
commission's submit a written response to the contracting officer,
with justification for allowance of the commission's. If the
supplier does respond within 60 days, the contracting officer will,
within 60 days of receiving the response, either make a written
withdrawal of the notice or issue a written decision.
Also, see Section A. and Attachment I, Statement of Work, Section
B.8.
SECTION G
SPECIAL CLAUSES
G.1 Conflict of Interest
The provider must identify any potential conflicts of interest. For
the purposes of this solicitation, conflict of interest includes a
provider's relationships with firms, other than the USPS, which may
diminish its capacity to provide impartial, technically sound,
objective service or advice to the USPS. It is in a provider's best
interest, as well as the USPS's best interest, for a provider to
reveal all information concerning any potential conflict of interest
which may exist relative to the provision of sales force management
in the expedited mail and package delivery marketplace. No provider
employee working on this program can work in any capacity with any of
the USPS's direct competitors (FedEx, UPS, Airborne, etc.).
G.2 Employment Relationships
During the term of this contract and for a period of one year after
its termination or expiration, neither party will solicit for
employment or employ any technical, sales, marketing or management
employee of the other, its parent corporation, if any, or any
affiliate of the other, whose responsibilities relate to this
contract. However, either party may hire an individual employed by
the other who, without other solicitation, responds to employment
advertising in newspapers, trade publications or other public
commercial media.
G.4 Proprietary Information
The USPS is the sole owner of all information that it provides to the
Provider. The USPS is also the sole owner of any information that is
collected by the Provider in performance of the contract. This
includes but is not limited to; all customer information both current
and prospective, all USPS product, operational, and management data,
competitive intelligence, and all revenue and sales data.
G.5 USPS Start-up Provision Training Fee
The USPS acknowledges the Provider will incur certain costs related
to recruitment, hiring and training of new sales representatives.
Furthermore, the USPS realizes it will require a 4-6 month period of
"on-the-job" training and sales activity before the sales
representative has reached a proficiency level with the product,
whereby commissions earned will offset the provider investment in the
sales person. For this reason, the USPS will provide a training fee
of $2,000 per month, per sales representative, for a period of six
months (maximum $12,000 per sales representative) during the first
year of the contract, in each specific metro location. Training
fee's will be paid for each sales representative upon successful
completion of training requirements. This fee will be limited to the
prescribed number of sales representatives estimated for each metro
(See Section B, Attachment A of the Statement of Work, Attachment I).
If a sales representative is terminated or resigns his/her position,
the fee will be terminated for that particular representative. The
Contractor may hire new representatives and offer a prorated portion
of the six months fee during the first year. The USPS will not
compensate the contractor for hiring additional sales representatives
(above the anticipated compliment). The contractor may however hire
additional sales representatives at their own discretion, but will
not receive a training fee.
As the USPS expands into secondary markets (i.e. remaining geographic
districts), training fees will be offered for new sales
representatives in the expanded locations during the first year of
business in that location. The USPS is currently conducting market
opportunity assessment on these markets to determine revenue
potential and project the required number of sales representatives.
G.6 Startup Provision - IT Support
Sales Force automation in the form of a laptop/palmtop computer
proved essential during pilot site testing. Customer database,
inventory control, weekly and AP reporting are all generated from
these devises and are critical in the measurement systems developed
for SFA, as well as ensuring timely settlement of accounts and
commission payments. With this in mind, the USPS will allow the
provider to rent/lease IT Support provided it meets the following
requirements:
1) Proves compatible with USPS SFA database requirements as
described in Section B.6.4, number 2.
2) Is used solely for the purpose of SFA measurement and
monitoring by the contract provider.
The USPS will offset lease payments for the initial six months of the
program in each participating metro at a cost not to exceed $150 per
laptop/palmtop unit per month. The USPS will allow the contractor to
lease one IT support unit for each Certified Sales Representative (up
to the maximum compliment allowed in G.5). The USPS will pay the
actual monthly lease rate (up to the $150 maximum limit). The
contractor will provide copies of actual lease/rental contract
agreements as certification for reimbursement of this startup
provision. Any amounts over the $150 per unit will become the full
responsibility of the provider.
SECTION H
GENERAL CLAUSES
H.1. REFERENCED CLAUSES
The following United States Postal Service clauses are hereby
incorporated by reference as if set forth in full text. The Postal
Service Purchasing Manual, including the full text of clauses, is
available through the Internet. The clauses are located in Appendix
B of the Manual. Adobe Acrobat Reader 3.0 or higher is required to
view the clauses.
The Internet address is: http://www.usps.gov/cpim/manuals/pm.htm
B-1 DEFINITIONS JAN 97
B-2 CHANGES JAN 97
B-5 CERTIFICATE OF CONFORMANCE JAN 97
B-8 ASSIGNMENT OF CLAIMS JAN 97
B-9 CLAIMS AND DISPUTES JAN 97
B-10 PRICING OF ADJUSTMENTS JAN 97
B-11 TERMINATION FOR CONVENIENCE JAN 97
B-13 TERMINATION FOR DEFAULT JAN 97
B-14 EXAMINATION OF RECORDS JAN 97
B-21 CHANGE-ORDER ACCOUNTING JAN 97
B-25 ADVERTISING OF CONTRACT AWARDS JAN 97
B-29 ORDER OF PRECEDENCE JAN 97
B-30 PERMITS AND RESPONSIBILITIES JAN 97
1-1 PRIVACY ACT JAN 97
1-5 GRATUITIES AND GIFTS JAN 97
1-6 CONTINGENT FEE JAN 97
1-7 NONDISCLOSURE OF ADDRESS INFORMATION JAN 97
1-8 ORGANIZATIONAL CONFLICT OF INTEREST JAN 97
2-19 OPTION TO EXTEND JAN 97
3-1 PARTICIPATION OF SMALL, MINORITY-OWNED AND JAN 97
WOMAN-OWNED BUSINESS
3-2 SMALL, MINORITY AND WOMEN-OWNED BUSINESS JAN 97
SUBCONTRACTING REQUIREMENTS
4-4 NON-DISCLOSURE (PROFESSIONAL SERVICES) JAN 97
4-7 RECORDS OWNERSHIP JAN 97
6-1 BANKRUPTCY JAN 97
7-6 FEDERAL STATE AND LOCAL TAXES JAN 97
9-1 CONVICT LABOR JAN 97
9-7 EQUAL OPPORTUNITY JAN 97
9-13 AFFIRMATIVE ACTION FOR HANDICAPPED WORKERS JAN 97
9-14 AFFIRMATIVE ACTION FOR DISABLED VETERANS JAN 97
AND VETERANS OF THE VIET NAM ERA
H.2 1-13 YEAR 2000 WARRANTY - NONCOMMERCIAL ITEMS
The supplier warrants that each noncommercial item of hardware,
software, and firmware delivered or developed under this contact and
listed below ("listed below" refers to items that the supplier has
identified as being Year 2000 compliant in response to the
solicitation) will be able to accurately process date data (including
but not limited to, calculating, comparing, and sequencing) from,
into, and between the twentieth and twenty-first centuries, including
leap year calculations, when used in accordance with the item
documentation provided by the supplier, provided that all listed or
unlisted items (e.g., hardware, software, firmware) used in
combination with such listed items properly exchange date data with
it. If the contract requires that specific listed items must perform
as a system in accordance with the foregoing warranty, then that
warranty will apply to those listed items as a system. The duration
of this warranty and the remedies available to the Postal Service for
breach of this warranty will be as defined in, and subject to, the
terms and limitations of any general warranty provisions of this
contact, provided that notwithstanding any provisions to the contrary
in such warranty provisions, or the absence of any such warranty
provision(s), the remedies available to the Postal Service under this
warranty will include repair or replacement of any listed item whose
noncompliance is discovered and made known to the supplier in writing
within 90 days after acceptance. Nothing in this warranty will be
construed to limit any rights or remedies the Postal Serviced may
otherwise have under this contract with respect to defects other than
Year 2000.
H.3 Mutual Indemnity
The USPS and the Provider shall indemnify the other for, and hold it
harmless from, any losses, claims, damages or liabilities suffered by
such indemnified party arising out of or resulting from any claims
asserted against such indemnified party by any third party that are
attributable to the failure by the indemnifying party (including its
employees, agents, or contractors) to perform its obligations under
this Contract and shall reimburse such indemnified party for all
reasonable expenses incurred in conjunction with the investigation or
defense of such claims (including but not limited to administrative,
regulatory or judicial proceedings), whether or not such indemnified
party is named in such proceeding.
Section B: Statement of Work
Attachment F.1
Script for Baseline Audits
Hello, may I speak to______________ please?
(Contact Name Here)
(If contact is not available, find out a good time to call back.)
Hello! ____________. My name is______________ with the United State
(Contact Name) (Your Name)
Postal Service. I am calling to thank you for using our expedited
services and needed just two minutes of your time to verify the
amount of Priority and Express mail products your company is using.
How is the service working for you? (Ask them to comment, and probe
for expanded usage potential.)
According to our records, prior to __________________visit, your
company was shipping approximately:
_____ Priority Mail packages per week
_____ Express Mail packages per week
_____ Global Priority Mail packages per week
_____ International Express Mail packages per week
Are these numbers accurate?
If YES _ move on to the next question
If NO - So what would you say is a more realistic number per week?
As you know, we have representatives like_________________ assisting
(Sales Representative)
our customers in understanding the benefits of expedited services
offered by the United States Postal Service.
So tell me, did you find_________________ to be Courteous?
(Sales Representative)
Was he/she professional in handling your needs?
Were all of your questions answered?
Do you think the supplies ordered were appropriate to your needs?
Do any other departments use these services? Do they ship directly
from their area?
In Closing:
Is there anything else, you would like to share about the U.S. Postal
Service?
Thank you for taking the time to talk with me today and again for
using our services.
Good-bye!
Section B: Statement of Work
Attachment F.2
Script for Usage Audit
Hello, may I speak to _______________ please?
(Contact)
(If contact is not available, find out a good time to call back.)
Hello __________. My name is_________________ with the United States
(Contact)
Postal Service. I am calling to thank you for using our expedited
services and needed two minutes of your time just to ensure you are
receiving the service you deserve from the U.S. Postal Service.
According to the records submitted by ____________________________,
your account representative, between ________________ and
__________________ your company shipped
________ Priority Mail Packages
________ Express Mail Packages
________ Global Priority Mail Packages
________ International Express Mail Packages
Are these numbers accurate?
If YES _
As you know, we have representatives like _________ assisting our
(Sales Representative)
customers in understanding the benefits of expedited services offered
by the United States Postal Service.
If NO _
So what would you say is a more realistic number per week?
Do any other departments use these services? Do they ship directly
from their area?
Have you or any other departments done a large mailing during this
time period?
As you know, we have representatives like__________ assisting
(Sales Representative)
our customers in understanding the benefits of expedited services
offered by the United States Postal Service.
So tell me, did you find_________________ to be Courteous?
(Sales Representative)
Was he/she professional in handling your needs?
Were all of your questions answered?
Do you think the supplies ordered were appropriate to your needs?
In Closing:
Is there anything else, you would like to share about the U.S. Postal
Service?
Thank you for taking the time to talk with me today and again for
using our services.
Good-bye!
