[Code of Federal Regulations]
[Title 39, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 39CFR601.106]

[Page 178-179]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 601_PURCHASING OF PROPERTY AND SERVICES--Table of Contents
 
Sec.  601.106  Declining to accept or consider proposals.

    (a) General. The Postal Service may decline to accept or consider 
proposals from a person or organization that does not meet reasonable 
business expectations or does not provide a high level of confidence 
about current or future business relations. Typically, these sorts of 
unacceptable conduct and business practices will not rise to the level 
of unethical or criminal activities that

[[Page 179]]

could lead to the debarment, suspension, or ineligibility of a supplier. 
Unacceptable conduct or business practices include, but are not limited 
to:
    (1) Marginal or dilatory contract performance;
    (2) Failure to deliver on promises made in the course of dealings 
with the Postal Service;
    (3) Providing false or misleading information as to financial 
condition, ability to perform, or other material matters, including any 
aspect of performance on a contract; and
    (4) Engaging in other questionable or unprofessional conduct or 
business practices.
    (b) Notice. If the Postal Service elects to decline to accept or 
consider proposals from a person or organization, the vice president of 
Supply Management, or his or her designee, will provide a written notice 
to the person or organization explaining:
    (1) The reasons for the decision;
    (2) The effective date of the decision;
    (3) The scope of the decision;
    (4) The duration of the decision (this may be limited to a specified 
length of time or may extend indefinitely); and
    (5) The supplier's right to contest the decision.
    (c) Contesting Decisions. If a person or organization believes the 
decision not to accept or consider proposals is not merited, it may 
contest the matter in accordance with the ombudsman and disagreement-
resolution procedures contained in this part, seek to resolve the matter 
by agreement through alternative dispute resolution, or both. The Postal 
Service may reconsider the matter and, if warranted, rescind or modify 
the decision to decline to accept or consider proposals.