[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: 39CFR601.108]

[Page 179-181]
 
                        TITLE 39--POSTAL SERVICE
 
                 CHAPTER I--UNITED STATES POSTAL SERVICE
 
PART 601_PURCHASING OF PROPERTY AND SERVICES--Table of Contents
 
Sec.  601.108  Ombudsman disagreement resolution.

    (a) Policy. From time to time, disagreements may arise between 
suppliers, potential suppliers, and the Postal Service regarding awards 
of contracts and related matters that are not resolved as set forth in 
Sec.  601.107. When a disagreement under Sec.  601.107 is not resolved 
within ten calendar days of when it was lodged with the contracting 
officer, then the disagreement may be lodged with the ombudsman 
established in this part for final resolution. The Postal Service 
desires to resolve all such disagreements quickly and inexpensively in 
keeping with the regulations in this part, 39 U.S.C. 410, and all other 
applicable public laws enacted by Congress. In resolving disagreements, 
non-Postal Service procurement rules or regulations will not govern.
    (b) Scope and Applicability. In order to expeditiously resolve 
disagreements that are not resolved at the contracting officer or 
appropriate management level, to reduce litigation expenses, 
inconvenience, and other costs

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for all parties, and to facilitate successful business relationships 
with Postal Service suppliers, the supplier community, and other 
persons, the following procedure is established as the sole and 
exclusive means to resolve disagreements arising in connection with 
awards of contracts for the purchase of property (excluding real 
property) or services and all related matters. All disputes, protests, 
claims, disagreements, or demands of whatsoever nature (hereinafter 
``disagreements'') against the Postal Service arising in connection with 
the purchasing process, except claims that arise pursuant to a contract 
under the Contract Disputes Act or claims concerning debarment, 
suspension, or ineligibility under Sec.  601.113, will be lodged with 
and resolved, with finality, by the ombudsman under and in accordance 
with the sole and exclusive procedure established in this section.
    (c) A disagreement may be lodged with the ombudsman by an 
organization or a person with respect to the Postal Service's decision 
not to accept or consider business proposals or the award of a contract.
    (d) The disagreement must be lodged in writing and must state the 
factual circumstances relating to it, the remedy sought, and the 
rationale for the disagreement. Counsel is not required, but may be 
retained to assist in the disagreement process. The person or 
organization lodging the disagreement must indicate in the disagreement 
whether it is willing to attempt to resolve the matter through informal 
discussions, mediation, or another means of ADR.
    (e) A disagreement must be lodged with the ombudsman within twenty 
calendar days after the time it was presented in Sec.  601.107. The 
ombudsman may grant an extension of time to lodge a disagreement or to 
provide supporting information when warranted. Any request for an 
extension must set forth the reasons for the request, be made in 
writing, and be delivered to the ombudsman on or before the time to 
lodge a disagreement lapses. The address of the ombudsman is: Attn: 
Ombudsman, United States Postal Service Headquarters, 475 L'Enfant 
Plaza, SW., Room 4110, Washington, DC 20260-6200.
    (f) The ombudsman will promptly provide a copy of a disagreement to 
the contracting officer, who will promptly notify other interested 
persons (i.e., actual or prospective offerors whose direct economic 
interests would be affected by the award of, or failure to award, the 
contract). The ombudsman will consider a disagreement and any response 
by other interested persons and appropriate Postal Service officials 
within a time frame established by the ombudsman. The ombudsman may also 
meet individually or jointly with the person or organization lodging the 
disagreement, other interested persons, and/or Postal Service officials, 
and may undertake other activities in order to obtain materials, 
information, or advice that may help to resolve the disagreement. The 
person or organization lodging the disagreement, other interested 
persons, or Postal Service officials must promptly provide all relevant, 
nonprivileged materials and other information requested by the 
ombudsman. After obtaining such information, materials, and advice as 
may be needed, the ombudsman will promptly issue a decision in writing 
resolving a disagreement and will deliver the decision to the person or 
organization lodging the disagreement, other interested persons, and 
appropriate Postal Service officials. If confidential or privileged 
material is needed in order to reach a decision, the ombudsman will 
notify the appropriate party to provide such material to the ombudsman 
only. The confidential material will be held in confidence by the 
ombudsman and will be returned to the party upon request at the 
conclusion of the matter.
    (g) In considering and in resolving a disagreement, the ombudsman 
will be guided by the regulations contained in this part and all 
applicable public laws enacted by Congress. Non-Postal Service 
procurement rules or regulations and revoked Postal Service regulations 
will not apply or be taken into account in resolving disagreements. 
Failure of any party to provide promptly requested information may be 
taken into account by the ombudsman in the decision.
    (h) A decision of the ombudsman will be final and binding on the 
person or

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organization lodging the disagreement, other interested persons, and the 
Postal Service. However, the person or organization that lodged the 
disagreement or another interested person may appeal the decision to a 
federal court with jurisdiction over such claims, but only on the 
grounds that the decision:
    (1) Was procured by fraud or other criminal misconduct; or
    (2) Was obtained in violation of the regulations contained in this 
part or an applicable public law enacted by Congress.
    (i) It is intended that this procedure generally will resolve 
disagreements within approximately 30 days after the ombudsman receives 
the disagreement. The time may be shortened or lengthened depending on 
the complexity of the issues and other relevant considerations.