---
kind: "diff"
citation: "H.R. 2748"
bill: "113-hr-2748"
heading: "Postal Reform Act of 2013"
from: "ih"
from_label: "Introduced in House"
to: "rh"
to_label: "Reported in House"
sections_amended: 8
sections_added: 0
sections_removed: 0
url: "https://uscodex.org/bills/113/hr/2748/changes/rh"
---

# H.R. 2748 — what changed

H.R. 2748, Postal Reform Act of 2013 — 8 sections amended between Introduced in House and Reported in House.

Edits are marked `<del>struck</del>` and `<ins>inserted</ins>`.

## Sec. 102 Delivery-point modernization

- (a) In general— Subchapter VII of chapter 36 is amended by adding at the end the following:
  - “3692. Delivery-point modernization
  - “(a) Definitions—For the purposes of this section—
  - “(1) the term delivery point means a mailbox or other receptacle to which mail is delivered;
  - “(2) the term primary mode of mail delivery means the typical method by which the Postal Service delivers letter mail to the delivery point of a postal patron;
  - “(3) the term door delivery means a primary mode of mail delivery whereby mail is placed into a slot or receptacle at or near the postal patron’s door or is hand delivered to a postal patron, but does not include curbside or centralized delivery;
  - “(4) the term centralized delivery means a primary mode of mail delivery whereby mail receptacles of a number of delivery points are grouped or clustered at a single location; and
  - “(5) the term curbside delivery means a primary mode of mail delivery whereby a mail receptacle is situated at the edge of a sidewalk abutting a road or curb, at a road, or at a curb.
  - “(b) Policy—It shall be the policy of the Postal Service to use the most cost-effective primary mode of mail delivery feasible for postal patrons.
  - “(c) Phaseout of door delivery
  - “(1) New addresses—Subject to paragraph (4), the Postal Service shall implement a program, wherever feasible, to provide a primary mode of mail delivery other than door delivery to new addresses established after the date of enactment of this section.
  - “(2) Business address conversion—Subject to paragraph (4), the Postal Service shall implement a program to convert existing business addresses with door delivery to centralized delivery to the maximum extent feasible. In cases in which conversion to centralized delivery is impractical, conversion to curbside delivery shall be implemented to the maximum extent feasible.
  - “(3) Residential address conversion
  - “(A) Identification—Within one year after the date of enactment of this section, each district office shall identify residential addresses within its service area that are appropriate candidates for conversion from door delivery to curbside or centralized delivery, in accordance with standards established by the Postal Service.
  - “(B) Voluntary conversion—Subject to paragraph (4), the Postal Service shall seek to voluntarily convert the delivery points identified under subparagraph (A) from door delivery to more cost-effective primary modes of mail delivery.
  - “(C) Procedures—In carrying out conversions under subparagraph (B), the Postal Service shall establish procedures to—
  - “(i) solicit, consider, and respond to input from postal patrons, State and local governments, local associations, and property owners; and
  - “(ii) place centralized delivery points in locations that maximize delivery efficiency, ease of use for postal patrons, and respect for private property rights.
  - “(4) Considerations—In making any determination to convert the primary mode of mail delivery for an existing address from door delivery to any other primary mode of mail delivery, or to provide a primary mode of mail delivery to a new address, the Postal Service may <ins>shall </ins>consider—
  - “(A) the impact of weather conditions, physical barriers, or any other factor that may impact the feasibility of providing a primary mode of mail delivery other than door delivery (such as a factor that may significantly reduce the potential cost savings associated with providing centralized or curbside delivery);
  - “(B) whether the address is in a registered historic district (as that term is defined in section 47(c)(3)(B) of the Internal Revenue Code of 1986) is listed on the National Register of Historic Places, <ins>is designated as a National Historic Landmark, </ins>or is of historic value; and
  - “(C) population density and the concentration of poverty.
  - “(5) Waiver for physical hardship—The Postal Service shall establish and maintain a waiver program under which, upon application, door delivery may be continued, or provided, at no cost to the applicant in any case in which—
  - “(A) centralized or curbside delivery would, but for this paragraph, otherwise be the primary mode of mail delivery; and
  - “(B) door delivery is necessary in order to avoid causing significant physical hardship <ins>or physical safety risks  </ins>to a postal patron.
  - “(6) Legacy door delivery service
  - “(A) In general—The Postal Service may continue to provide, for a fee to be paid by the addressee, door delivery to an address that received door delivery as of January 1, 2013, but was converted to a different primary mode of mail delivery as a result of the requirements of subsection (d).
  - “(B) Offset—The fee shall, when taken in the nationwide aggregate, offset the additional cost to the Postal Service for door delivery (compared to the cost of the primary mode of mail delivery which would otherwise exist for such address) as a result of the requirements of subsection (d).
  - “(C) Requirements—The fee shall be subject to the requirements of section 3622(d)(1)(B) and the Postmaster General may by regulation prescribe the method of the fee’s calculation.
  - “(d) Modernization requirement
  - “(1) Minimum points to be converted—Not later than September 30, 2022, the Postal Service shall convert not less than 30,000,000 of the door delivery points extant on December 31, 2012, to centralized or curbside delivery.
  - “(2) Conversion order—In determining which delivery points to convert under paragraph (1), postal patrons who voluntarily agree to convert their delivery point or points under subsection (c)(3) shall take precedence over any other conversions to the greatest extent practicable.
  - “(3) <del>Funding and repayment—Until September 30, 2022, the Postal Service may withdraw funds from the Postal Service Delivery-Point Modernization Fund to carry </del><ins>Procedures—In carrying </ins>out <del>the purposes of this section. All savings accrued by </del><ins>conversions under paragraph (1), </ins>the Postal Service <del>from conversions under this subsection </del>shall <del>be repaid to the Fund on a monthly basis until all funds have been repaid. All funds withdrawn under this paragraph must be repaid not later than September 30, 2023.</del><ins>establish procedures to—</ins>
  - <del>“(4) Voucher program—The Postal Service shall, in accordance with such standards </del><ins>“(A) solicit, consider, </ins>and <del>procedures as </del><ins>respond to input from </ins>the <del>Postal Service </del><ins>general public, postal patrons, State and local governments, local associations, and property owners which </ins>shall <del>by regulation prescribe, provide for </del><ins>include but not be limited to </ins>a <del>voucher program, funded through </del><ins>minimum of a public community meeting prior to </ins>the <del>Postal Service Delivery Point Modernization Fund, under which, upon application, </del><ins>commencement of </ins>the <del>Postal Service may defray all or any portion </del><ins>conversion </ins>of <ins>a community, prior to </ins>the <del>costs associated with </del><ins>completion of the </ins>conversion <del>from door </del><ins>of a community and at any point in the process when the District Manager makes a change to the </ins>delivery <del>under this section which would otherwise be borne by postal patrons.</del><ins>method or the location of centralized delivery points;</ins>
  - <del>“(5) Treatment of Exemption—Addresses receiving door delivery </del><ins>“(B) calculate and make publicly accessible the cost </ins>or <del>legacy door delivery as a result </del><ins>savings </ins>of <del>paragraph (5) </del><ins>the conversion to the Postal Service as well as the average conversion cost </ins>or <del>(6) of subsection (c)—</del><ins>savings to each postal patron and any cost or savings to the State and local government; and</ins>
  - <ins>“(C) place centralized delivery points in locations that maximize delivery efficiency, ease of use for postal patrons, and respect for private property rights.</ins>
  - <ins>“(3) (4) Funding and repayment—Until September 30, 2022, the Postal Service may withdraw funds from the Postal Service Delivery-Point Modernization Fund to carry out the purposes of this section. All savings accrued by the Postal Service from conversions under this subsection shall be repaid to the Fund on a monthly basis until all funds have been repaid. All funds withdrawn under this paragraph must be repaid not later than September 30, 2023.</ins>
  - <ins>“(4) (5) Voucher program—The Postal Service shall, in accordance with such standards and procedures as the Postal Service shall by regulation prescribe, provide for a voucher program, funded through the Postal Service Delivery Point Modernization Fund, under which, upon application, the Postal Service may defray all or any portion of the costs associated with conversion from door delivery under this section which would otherwise be borne by postal patrons.</ins>
  - <ins>“(5) (6) Treatment of Exemption—Addresses receiving door delivery or legacy door delivery as a result of paragraph (5) or (6) of subsection (c)—</ins>
  - “(A) shall be counted as addresses that receive the primary mode of mail delivery which the address would be subject to if not for the applicable exemption; and
  - “(B) shall, within 30 days after ceasing to meet the requirements of such paragraph (5) or (6), as applicable, be converted to the primary mode of mail delivery which was otherwise applicable.
  - <ins>“(6) (7) Annual reports—Not later than 60 days after the end of each of fiscal years 2013 through 2023, the Postal Service shall submit to Congress and the Inspector General of the Postal Service a report on the implementation of this section during the most recently completed fiscal year. Each such report shall include—</ins>
  - <del>“(6) Annual reports—Not later than 60 days after the end of each of fiscal years 2013 through 2023, the Postal Service shall submit to Congress and the Inspector General of the Postal Service a report on the implementation of this section during the most recently completed fiscal year. Each such report shall include—</del>
  - “(A) the number of residential and business addresses that—
  - “(i) receive door delivery as of the end of the fiscal year preceding the most recently completed fiscal year;
  - “(ii) receive door delivery as of the end of the most recently completed fiscal year; and
  - “(iii) during the most recently completed fiscal year, were converted from door delivery to—
  - “(I) centralized delivery points;
  - “(II) curbside delivery points; and
  - “(III) any other primary mode of mail delivery, respectively;
  - “(B) the estimated cost savings from the conversions described in subparagraph (A)(iii);
  - “(C) a description of the progress made by the Postal Service toward meeting the requirements of subsection (c) and paragraph (1) of this subsection; and
  - “(D) any other information which the Postal Service considers appropriate.
  - <ins>“(8) Inspector General audit—The Inspector General of the Postal Service shall issue an annual audit report on the implementation of the conversion requirement from paragraph (1) not later than 90 days after date on which the Postal Service releases its annual report under paragraph (7). At a minimum, the report under this paragraph shall contain—</ins>
  - <ins>“(A) an audit of the data contained in the Postal Service’s report under paragraph (7); and</ins>
  - <ins>“(B) an evaluation of the Postal Service’s implementation of the procedural requirements described in paragraph (3).</ins>
  - “(e) Review—Subchapters IV and V shall not apply with respect to any action taken by the Postal Service under this section.”
- (b) Clerical amendment— The table of sections for chapter 36 is amended by adding after the item relating to section 3691 the following:

## Sec. 202 Establishment of the Postal Service Financial Responsibility and Management Assistance Authority

- (a) Establishment— There is established, in accordance with the provisions of this subtitle, an entity to be known as the “Postal Service Financial Responsibility and Management Assistance Authority” (hereinafter in this subtitle referred to as the “Authority”).
- (b) Operations during the control period—
  - (1) Control period defined— For the purposes of this subtitle, the term control period means the period that commences on the date as of which the Authority has at least 4 members and terminates as of the date determined under paragraph (5).
  - (2) Transfer of authorities and responsibilities— Effective as of the date on which the control period commences—
    - (A) subsections (a) and (b) of section 202 are repealed;
    - (B) the term of office of each of the 9 Governors (appointed under the second sentence of section 202(a)(1) of title 39, United States Code, as last in effect before the date of enactment of this Act) shall terminate; and
    - (C) the Authority shall assume its responsibilities, as set forth in section 206.
  - (3) Treatment of certain executives—
    - (A) Definition— For the purposes of this section, the term Level-Two Postal Service Executive includes the Postmaster General, the Deputy Postmaster General, and all the other officers and employees of the Postal Service in level two of the Postal Career Executive Service (or the equivalent), but does not include any officer or employee of the Office of Inspector General of the United States Postal Service.
    - (B) Treatment— Notwithstanding any other provision of law or the provisions of any employment contract, during the control period—
      - (i) all Level-Two Postal Service Executives shall serve at the pleasure of the Authority;
      - (ii) the duties and responsibilities of all Level-Two Postal Service Executives, as well as the terms and conditions of their employment (including their compensation), shall be subject to determination or redetermination by the Authority;
      - (iii) total compensation of a Level-Two Postal Service Executive may not, for the first full fiscal year occurring in such control period or any subsequent fiscal year commencing in such control period, exceed the annual rate of basic pay payable for level I of the Executive Schedule under section 5312 of title 5, United States Code, for that year; for purposes of this clause, the term total compensation means basic pay, bonuses, awards, and all other monetary compensation;
      - (iv) the percentage by which the rate of basic pay of a Level-Two Postal Service Executive is increased during any year may not exceed the percentage change in the Consumer Price Index for All Urban Consumers, unadjusted for seasonal variation, for the most recent 12-month period available, except that, in the case of a Level-Two Postal Service Executive who has had a significant change in job responsibilities, a greater change shall be allowable if approved by the Authority;
      - (v) apart from basic pay, a Level-Two Postal Service Executive may not be afforded any bonus, award, or other monetary compensation for any full fiscal year in the control period if expenditures of the Postal Service for such fiscal year exceeded revenues of the Postal Service for such fiscal year (determined in accordance with generally accepted accounting principles); and
      - (vi) no deferred compensation may be paid, accumulated, or recognized in the case of any Level-Two Postal Service Executive, with respect to any full year in the control period, which is not generally paid, accumulated, or recognized in the case of employees of the United States (outside of the Postal Service) in level I of the Executive Schedule under section 5312 of title 5, United States Code, with respect to such <del>year.</del><ins>year. ; and</ins>
      - (vii) <ins>in the case of any Level-Two Postal Service Executive, the expense incurred by the Postal Service for non-cash awards or honorary recognitions covered under section 4503 of title 5, United States Code, may not exceed a combined total of $200 with respect to any full year in the control period.</ins>
    - (C) Bonus authority— Section 3686 of title 39, United States Code, shall, during the period beginning on the commencement date of the control period and ending on the termination date of the control period—
      - (i) be suspended with respect to all Level-Two Postal Service Executives; but
      - (ii) remain in effect for all other officers and employees of the Postal Service otherwise covered by this section.
  - (4) Certification requirement— The control period may not terminate until after the Authority, with the concurrence of the Secretary of the Treasury and the Director of the Office of Personnel Management, certifies to the Director of the Office of Management and Budget that—
    - (A) for 2 consecutive fiscal years (occurring after the date of enactment of this Act), expenditures of the Postal Service did not exceed revenues of the Postal Service (as determined in accordance with generally accepted accounting principles);
    - (B) the Authority has approved a Postal Service financial plan and budget that shows expenditures of the Postal Service not exceeding revenues of the Postal Service (as so determined) for the fiscal year to which such budget pertains and each of the next 3 fiscal years; and
    - (C) the Postal Service financial plan and budget (as referred to in subparagraph (B)) includes plans—
      - (i) for the repayment of any collateralized debt authorized by section 503; and
      - (ii) to properly fund Postal Service pensions and retiree health benefits in accordance with applicable provisions of title 5, United States Code.
  - (5) Termination of control period—
    - (A) Termination date—
      - (i) General rule— Except as provided in clause (ii), the control period shall terminate 180 days after the date on which the certification described in paragraph (4) is made.
      - (ii) Alternative date—
        - (I) Authority— The Director of the Office of Management and Budget may, by written notice given to the Authority within 15 days after the date on which the certification described in paragraph (4) is made, provide for an alternative termination date (in lieu of the date that would otherwise apply under clause (i)).
        - (II) Range— An alternative date under this clause shall not apply unless such date occurs not less than 30 days after the date on which written notice under subclause (I) is given and not later than 180 days after the date on which the certification described in paragraph (4) is made.
    - (B) Public notice— The Authority shall cause to be published in the Federal Register—
      - (i) the date on which the certification described in paragraph (4) is made, not later than 1 business day after the date on which such certification is made; and
      - (ii) the termination date of the control period, not later than 16 business days after the date on which the certification described in paragraph (4) is made.

## Sec. 207 Development of financial plan and budget for the solvency of the Postal Service

- (a) Development of financial plan and budget— For each fiscal year during a control period, the Postmaster General shall submit to the Authority, by August 1 before the start of such fiscal year, a financial plan and budget for such fiscal year for the long-term solvency of the Postal Service, except that, for fiscal year 2014, the deadline for submission of the plan and budget under this subsection shall be the 30th day after a majority of the Authority take office. If a majority of the Authority do not take office before August 1, 2014, the requirement for a financial plan and budget under this subsection for fiscal year 2014 is waived.
- (b) Contents of financial plan and budget— A financial plan and budget under this section for a fiscal year shall specify the budget for the Postal Service as required by section 2009 of title 39, United States Code, for the applicable fiscal year and each of the next 3 fiscal years, in accordance with the following requirements:
  - (1) The financial plan and budget shall meet the requirements described in subsection (c) to promote the financial stability of the Postal Service.
  - (2) The financial plan and budget shall—
    - (A) include the Postal Service’s annual budget program (under section 2009 of title 39, United States Code) and the Postal Service’s plan commonly referred to as its “Integrated Financial Plan”;
    - (B) describe lump-sum expenditures by all categories traditionally used by the Postal Service;
    - (C) describe capital expenditures (together with a schedule of projected capital commitments and cash outlays of the Postal Service and proposed sources of funding);
    - (D) contain estimates of overall debt (both outstanding and anticipated to be issued); and
    - (E) contain cash flow and liquidity forecasts for the Postal Service at such intervals as the Authority may require.
  - (3) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.
  - (4) The financial plan and budget shall include any other provisions and shall meet such other criteria as the Authority considers appropriate to meet the purposes of this subtitle, including provisions for—
    - (A) changes in personnel policies and levels for each component of the Postal Service; and
    - (B) management initiatives to promote productivity, improvement in the delivery of services, or cost savings.
- (c) Requirements To promote financial stability—
  - (1) In general— The requirements to promote the solvency and financial stability of the Postal Service applicable to the financial plan and budget for a fiscal year are as follows:
    - (A) For fiscal year 2016 and each subsequent fiscal year during a control period, budgeted expenditures of the Postal Service for the fiscal year involved may not exceed budgeted revenues of the Postal Service for the fiscal year involved.
    - (B) In each fiscal year where a financial plan and budget must be developed, the financial plan and budget shall provide for continuous, substantial progress toward long-term fiscal solvency of the Postal Service.
    - (C) The financial plan and budget shall provide for the orderly repayment of any outstanding obligations authorized under section 503.
    - (D) The financial plan and budget shall assure the continuing long-term solvency of the Postal Service, as indicated by factors such as the efficient management of the Postal Service’s workforce and the effective provision of services by the Postal Service. In so doing, the financial plan and budget shall consider—
      - (i) the legal authority of the Postal Service;
      - (ii) the changes in the legal authority and responsibilities of the Postal Service under this Act;
      - (iii) any cost savings that the Postal Service anticipates will be achieved through negotiations with employees of the Postal Service;
      - (iv) projected changes in mail volume;
      - (v) the impact of regulations the Postal Service was required by law to promulgate;
      - (vi) projected changes in the number of employees needed to carry out the responsibilities of the Postal Service; and
      - (vii) the long-term capital needs of the Postal Service, including the need to maintain, repair, and replace facilities and equipment.
  - (2) Application of sound budgetary practices— In meeting the requirements described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the Postal Service shall apply sound budgetary practices, including reducing costs and other expenditures, improving productivity, increasing revenues, or a combination of such practices.
  - (3) Assumptions based on current law— In meeting the requirements described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the Postal Service shall base estimates of revenues and expenditures on Federal law <ins>Generally Accepted Accounting Principles and Federal law (including regulations) </ins>as in effect at the time of the preparation of such financial plan and budget.
- (d) Definition— For the purposes of this section, the term long-term solvency means the ability of the Postal Service over the long term to pay debts and meet expenses, including the ability to perform maintenance and repairs, make investments, and maintain financial reserves, as necessary to fulfill the requirements and comply with the policies of title 39, United States Code, and other obligations of the Postal Service.

## Sec. 406 Appropriations modernization

- (a) In general— Section 2401 is amended by striking subsections (b) through (d).
- (b) Effective date— The amendment made by subsection (a) shall be effective with respect to fiscal years beginning after the date of enactment of this Act.
- (c) <ins>Conforming amendment—</ins> <ins></ins>
  - (1) <ins>Section 3627 is repealed.</ins>
  - (2) <ins>The table of sections for chapter 36 is amended by striking the item relating to section 3627.</ins>
- (c) <del>Conforming amendment—</del> <del>Section 3627 is repealed.</del>

## Sec. 504 Postal Service Delivery-Point Modernization Fund

- (a) In general— Chapter 20 is further amended by adding after section 2012 (as added by section 503(a)) the following:
  - “2013. Postal Service Delivery-Point Modernization Fund
  - “(a) Establishment—There is established within the Treasury of the United States a revolving fund to be known as the “Postal Service Delivery-Point Modernization Fund”, which shall be available without fiscal year limitation pursuant to the requirements of this section.
  - “(b) Funding
  - “(1) Authorization—The Postal Service is authorized to borrow money and to issue and sell such obligations as it determines necessary solely to carry out the purposes of section <del>3962. </del><ins>3962 3692. </ins>The aggregate amount of obligations issued by the Postal Service which may be outstanding at any one time under this paragraph shall not exceed $1,000,000,000.
  - “(2) Applicability of section 2005—The provisions of subsections 2005(b), (c), and (d) shall apply to obligations issued under this subsection.
  - “(3) Deposit—Any amounts received by the Postal Service as a result of paragraph (1) shall be deposited in the Postal Service Delivery-Point Modernization Fund.
  - “(c) Sunset—The authority to borrow money and to issue and sell obligations under subsection (b) shall cease to be available after September 30, 2023.
  - “(d) Budgetary treatment—The receipts and disbursements of the Postal Service Delivery-Point Modernization Fund shall be accorded the same budgetary treatment as is accorded to receipts and disbursements of the Postal Service Fund under section 2009a.
  - “(e) Termination of Fund—On September 30, 2023, any funds remaining in the Postal Service Delivery-Point Modernization Fund shall be used to satisfy any remaining obligations under subsection (b)(1), and any funds in excess of such obligations shall be deposited in the Postal Service Fund. After any excess funds have been so deposited, the Postal Service Delivery-Point Modernization Fund shall be terminated.”
- (b) Clerical amendment— The table of sections for chapter 20 is amended by adding after the item relating to section 2012 (as added by section 503(b)) the following:

## Sec. 601 Contracting provisions

- (a) In general— Part I is amended by adding at the end the following:
  - “7 Contracting Provisions
  - “701. Definitions
  - “In this chapter—
  - “(1) the term contracting officer means an employee of a covered postal entity who has authority to enter into a postal contract;
  - “(2) the term covered postal entity means—
  - “(A) the Postal Service; or
  - “(B) the Postal Regulatory Commission;
  - <ins>“(A)</ins>
  - “(3) the term head of a covered postal entity means—
  - “(A) in the case of the Postal Service, the Postmaster General; or
  - “(B) in the case of the Postal Regulatory Commission, the Chairman of the Postal Regulatory Commission;
  - “(4) the term postal contract means—
  - “(A) in the case of the Postal Service, any contract (including any agreement or memorandum of understanding) entered into by the Postal Service for the procurement of goods or services; or
  - “(B) in the case of the Postal Regulatory Commission, any contract (including any agreement or memorandum of understanding) in an amount exceeding the simplified acquisition threshold (as defined in section 134 of title 41 and adjusted under section 1908 of such title) entered into by the Postal Regulatory Commission for the procurement of goods or services; and
  - “(5) the term senior procurement executive means the senior procurement executive of a covered postal entity.
  - “702. Advocate for competition
  - “(a) Establishment and designation
  - “(1) There is established in each covered postal entity an advocate for competition.
  - “(2) The head of each covered postal entity shall designate for the covered postal entity 1 or more officers or employees (other than the senior procurement executive) to serve as the advocate for competition.
  - “(b) Responsibilities—The advocate for competition of a covered postal entity shall—
  - “(1) be responsible for promoting—
  - “(A) the contracting out of functions of the covered postal entity that the private sector can perform equally well or better, and at lower cost; and
  - “(B) competition to the maximum extent practicable consistent with obtaining best value by promoting the acquisition of commercial items and challenging barriers to competition;
  - “(2) review the procurement activities of the covered postal entity; and
  - “(3) prepare and transmit the annual report required under subsection (c).
  - “(c) Annual Report
  - “(1) Preparation—The advocate for competition of a covered postal entity shall prepare an annual report describing the following:
  - “(A) The activities of the advocate under this section.
  - “(B) Initiatives required to promote contracting out and competition.
  - “(C) Barriers to contracting out and competition.
  - “(D) In the case of the report prepared by the competition advocate of the Postal Service, the number of waivers made by the Postal Service under section 704(c).
  - “(2) Transmission—The report under this subsection shall be transmitted—
  - “(A) to Congress;
  - “(B) to the head of the postal entity;
  - “(C) to the senior procurement executive of the entity;
  - “(D) in the case of the competition advocate of the Postal Service, to each member of the Postal Service Board of Governors; and
  - “(E) in the case of the competition advocate of the Postal Regulatory Commission, to each of the Commissioners of the Commission.
  - “703. Delegation of contracting authority
  - “(a) In general
  - “(1) Policy—Not later than 60 days after the date of enactment of this chapter, the head of each covered postal entity shall issue a policy on contracting officer delegations of authority for postal contracts for the covered postal entity.
  - “(2) Contents—The policy issued under paragraph (1) shall require that—
  - “(A) notwithstanding any delegation of authority with respect to postal contracts, the ultimate responsibility and accountability for the award and administration of postal contracts resides with the senior procurement executive; and
  - “(B) a contracting officer shall maintain an awareness of and engagement in the activities being performed on postal contracts of which that officer has cognizance, notwithstanding any delegation of authority that may have been executed.
  - “(b) Posting of delegations
  - “(1) In general—The head of each covered postal entity shall make any delegation of authority for postal contracts outside the functional contracting unit readily available and accessible on the Web site of the covered postal entity.
  - “(2) Effective date—This paragraph shall apply to any delegation of authority made on or after 30 days after the date of enactment of this chapter.
  - “704. Posting of noncompetitive purchase requests for noncompetitive contracts
  - “(a) Posting required
  - “(1) Postal regulatory commission—The Postal Regulatory Commission shall make the noncompetitive purchase request for any noncompetitive award for any contract (including any agreement or memorandum of understanding) entered into by the Postal Regulatory Commission for the procurement of goods and services, in an amount of $20,000 or more, including the rationale supporting the noncompetitive award, publicly available on the Web site of the Postal Regulatory Commission—
  - “(A) not later than 14 days after the date of the award of the noncompetitive contract; or
  - “(B) not later than 30 days after the date of the award of the noncompetitive contract, if the basis for the award was a compelling business interest.
  - “(2) Postal service—The Postal Service shall make the noncompetitive purchase request for any noncompetitive award of a postal contract in an amount of $250,000 or more, including the rationale supporting the noncompetitive award, publicly available on the Web site of the Postal Service—
  - “(A) not later than 14 days after the date of the award; or
  - “(B) not later than 30 days after the date of the award, if the basis for the award was a compelling business interest.
  - “(3) Adjustments to the posting threshold for the postal service
  - “(A) Review and determination—Not later than January 31 of each year, the Postal Service shall—
  - “(i) review the $250,000 threshold established under paragraph (2); and
  - “(ii) based on any change in the Consumer Price Index for All Urban Consumers of the Department of Labor, determine whether an adjustment to the threshold shall be made.
  - “(B) Amount of adjustments—An adjustment under subparagraph (A) shall be made in increments of $5,000. If the Postal Service determines that a change in the Consumer Price Index for a year would require an adjustment in an amount that is less than $5,000, the Postal Service may not make an adjustment to the threshold for the year.
  - “(4) Effective date—This subsection shall apply to any noncompetitive contract awarded on or after the date that is 90 days after the date of enactment of this chapter.
  - “(b) Public availability
  - “(1) In general—Subject to paragraph (2), the information required to be made publicly available by a covered postal entity under subsection (a) shall be readily accessible on the Web site of the covered postal entity.
  - “(2) Protection of proprietary information—A covered postal entity shall—
  - “(A) carefully screen any description of the rationale supporting a noncompetitive award required to be made publicly available under subsection (a) to determine whether the description includes proprietary data (including any reference or citation to the proprietary data) or security-related information; and
  - “(B) remove any proprietary data or security-related information before making publicly available a description of the rationale supporting a noncompetitive award.
  - “(c) Waivers
  - “(1) Waiver permitted—If the Postal Service determines that making a noncompetitive purchase request for a postal contract of the Postal Service publicly available would risk placing the Postal Service at a competitive disadvantage relative to a private sector competitor, the senior procurement executive, in consultation with the advocate for competition of the Postal Service, may waive the requirements under subsection (a).
  - “(2) Form and content of waiver
  - “(A) Form—A waiver under paragraph (1) shall be in the form of a written determination placed in the file of the contract to which the noncompetitive purchase request relates.
  - “(B) Content—A waiver under paragraph (1) shall include—
  - “(i) a description of the risk associated with making the noncompetitive purchase request publicly available; and
  - “(ii) a statement that redaction of sensitive information in the noncompetitive purchase request would not be sufficient to protect the Postal Service from being placed at a competitive disadvantage relative to a private sector competitor.
  - “(3) Delegation of waiver authority—The Postal Service may not delegate the authority to approve a waiver under paragraph (1) to any employee having less authority than the senior procurement executive.
  - “705. Review of ethical issues
  - “If a contracting officer identifies any ethical issues relating to a proposed contract and submits those issues and that proposed contract to the designated ethics official for the covered postal entity before the awarding of that contract, that ethics official shall—
  - “(1) review the proposed contract; and
  - “(2) advise the contracting officer on the appropriate resolution of ethical issues.
  - “706. Ethical restrictions on participation in certain contracting activity
  - “(a) Definitions—In this section—
  - “(1) the term covered employee means—
  - “(A) a contracting officer; or
  - “(B) any employee of a covered postal entity whose decisionmaking affects a postal contract as determined by regulations prescribed by the head of a covered postal entity;
  - “(2) the term final conviction means a conviction, whether entered on a verdict or plea, including a plea of nolo contendere, for which a sentence has been imposed; and
  - “(3) the term covered relationship means a covered relationship described in section 2635.502(b)(1) of title 5, Code of Federal Regulations, or any successor thereto.
  - “(b) In general
  - “(1) Regulations—The head of each covered postal entity shall prescribe regulations that—
  - “(A) require a covered employee to include in the file of any noncompetitive purchase request for a noncompetitive postal contract a written certification that—
  - “(i) discloses any covered relationship of the covered employee; and
  - “(ii) states that the covered employee will not take any action with respect to the noncompetitive purchase request that affects the financial interests of a friend, relative, or person with whom the covered employee is affiliated in a nongovernmental capacity, or otherwise gives rise to an appearance of the use of public office for private gain, as described in section 2635.702 of title 5, Code of Federal Regulations, or any successor thereto;
  - “(B) require a contracting officer to consult with the ethics counsel for the covered postal entity regarding any disclosure made by a covered employee under subparagraph (A)(i), to determine whether participation by the covered employee in the noncompetitive purchase request would give rise to a violation of part 2635 of title 5, Code of Federal Regulations (commonly referred to as the Standards of Ethical Conduct for Employees of the Executive Branch), or any successor thereto;
  - “(C) require the ethics counsel for a covered postal entity to review any disclosure made by a contracting officer under subparagraph (A)(i) to determine whether participation by the contracting officer in the noncompetitive purchase request would give rise to a violation of part 2635 of title 5, Code of Federal Regulations (commonly referred to as the Standards of Ethical Conduct for Employees of the Executive Branch), or any successor thereto;
  - “(D) under subsections (d) and (e) of section 2635.502 of title 5, Code of Federal Regulations, or any successor thereto, require the ethics counsel for a covered postal entity to—
  - “(i) authorize a covered employee that makes a disclosure under subparagraph (A)(i) to participate in the noncompetitive postal contract; or
  - “(ii) disqualify a covered employee that makes a disclosure under subparagraph (A)(i) from participating in the noncompetitive postal contract;
  - “(E) require a contractor to timely disclose to the contracting officer in a bid, solicitation, award, or performance of a postal contract any conflict of interest with a covered employee; and
  - “(F) include authority for the head of the covered postal entity to grant a waiver or otherwise mitigate any organizational or personal conflict of interest, if the head of the covered postal entity determines that the waiver or mitigation is in the best interests of the covered postal entity.
  - “(2) Posting of waivers—Not later than 30 days after the head of a covered postal entity grants a waiver described in paragraph (1)(F), the head of the covered postal entity shall make the waiver publicly available on the Web site of the covered postal entity.
  - “(c) Contract voidance and recovery
  - “(1) Unlawful conduct—In any case in which there is a final conviction for a violation of any provision of chapter 11 of title 18 relating to a postal contract, the head of a covered postal entity may—
  - “(A) void that contract; and
  - “(B) recover the amounts expended and property transferred by the covered postal entity under that contract.
  - “(2) Obtaining or disclosing procurement information
  - “(A) In general—In any case in which a contractor under a postal contract fails to timely disclose a conflict of interest to the appropriate contracting officer as required under the regulations promulgated under subsection (b)(1)(E), the head of a covered postal entity may—
  - “(i) void that contract; and
  - “(ii) recover the amounts expended and property transferred by the covered postal entity under that contract.
  - “(B) Conviction or administrative determination—A case described under subparagraph (A) is any case in which—
  - “(i) there is a final conviction for an offense punishable under section 2105 of title 41; or
  - “(ii) the head of a covered postal entity determines, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting an offense punishable under section 2105 of such title.”
- (b) Clerical amendment— The table of chapters at the beginning of part I is amended by adding at the end the following:

## Sec. 703 Fair stamp-evidencing competition

- Section <del>404(a) </del><ins>404a(a) </ins>is <del>amended—</del><ins>further amended by—</ins>
- (1) in paragraph <del>(2), </del><ins>(3), </ins>by striking “or” <del>at the end;</del><ins>(as added by section 103(f)(1));</ins>
- (2) in paragraph <del>(3), </del><ins>(4) (as added 103(f)(4)), </ins>by striking the period <del>at the end </del>and inserting “; or”; and
- (3) by adding at the end the following:
  - <del>“(4) </del><ins>“(5) </ins>offer to the public any postage-evidencing product or service that does not comply with any rule or regulation that would be applicable to such product or service if the product or service were offered by a private company.”

## Sec. 704 USPS innovation officer and accountability

- (a) In general— Chapter 2 is amended by adding at the end the following:
  - “209. USPS innovation officer and accountability
  - “(a) In general—There shall be in the Postal Service a Chief Innovation Officer selected by the Postmaster General who shall have proven expertise and a record of success in 1 or more of the following: postal and shipping industry, innovation product research and development, marketing brand strategy, emerging communications technology, or business process management. The Chief Innovation Officer shall manage the Postal Service’s development and implementation of innovative postal and nonpostal products and services.
  - “(b) Duties—The Chief Innovation Officer shall have as primary duties—
  - “(1) leading the development of innovative nonpostal products and services that will maximize revenue to the Postal Service;
  - “(2) developing innovative postal products and services, particularly those that utilize emerging information technologies, to maximize revenue to the Postal Service;
  - “(3) monitoring the performance of innovative products and services and revising them as needed to meet changing market trends; and
  - “(4) taking into consideration comments or advisory opinions, if applicable, issued by the Postal Regulatory Committee prior to the initial sale of innovative postal or nonpostal products and services.
  - “(c) Designation
  - “(1) Deadline—As soon as practicable after the date of enactment of this section, but no later than January 1, 2014, the Postmaster General shall designate a Chief Innovation Officer.
  - “(2) Condition—Nothing in this section shall be construed to prohibit an individual who holds another office or position in the Postal Service from serving as the Chief Innovation Officer under this chapter. However, upon appointment to the position of the Chief Innovation Officer, such individual may not, while serving in such office, concurrently hold any other office or position in the Postal Service.
  - “(d) Innovation strategy
  - “(1) In general—Not later than 12 months after the date on which the Chief Innovation Officer is designated under subsection (c)(1), the Postmaster General shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives a comprehensive strategy for maximizing revenues through innovative postal and nonpostal products and services.
  - “(2) Matters to be addressed—At a minimum, the strategy required by this section shall address—
  - “(A) the specific innovative postal and nonpostal products and services to be developed and offered by the Postal Service, including the nature of the market to be filled by each product and service and the likely date by which each product and service will be introduced;
  - “(B) the cost of developing and offering each product or service;
  - “(C) the anticipated sales volume of each product and service;
  - “(D) the anticipated revenues and profits expected to be generated by each product and service;
  - “(E) the likelihood of success of each innovative product and service as well as the risks associated with the development and sale of each innovative product and service;
  - “(F) the trends anticipated in market conditions that may affect the success of each product and service over the 5-year period beginning on the date such strategy or update is submitted; and
  - “(G) the metrics that will be utilized to assess the effectiveness of the innovation <del>strategy.</del><ins>strategy.; and</ins>
  - <ins>“(H) the specific methods by which mailpiece design analysis may be improved to speed the approval process and promote the increased use of innovative mailpiece design.</ins>
  - “(3) Strategy updates—On January 1, 2018, and every 3 years thereafter, the Chief Innovation Officer shall submit an update to the innovation strategy submitted under paragraph (1) to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Postal Regulatory Commission.
  - “(e) Report on performance
  - “(1) In general—The Postmaster General shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, and the Postal Regulatory Commission with the President’s budget submission under section 1105(a) of title 31 a report that details the Postal Service’s progress in implementing the innovation strategy.
  - “(2) Matters to be addressed—At a minimum, the report required by this section shall address—
  - “(A) the revenue generated by each product and service developed through the innovation strategy and the costs of developing and offering each such product and service for the most recent fiscal year;
  - “(B) the total sales volume and revenue generated by each product and service on a monthly basis for the preceding year;
  - “(C) trends in the markets filled by each product and service;
  - “(D) products and services identified in the innovation strategy that are to be discontinued, the date on which the discontinuance will occur, and the reasons for the discontinuance;
  - “(E) alterations in products and services identified in the innovation strategy that will be made to meet changing market conditions, and an explanation of how these alterations will ensure the success of the products and services; and
  - “(F) the performance of the innovation strategy according to the metrics identified in subsection (d)(2)(G).
  - “(f) Comptroller general
  - “(1) In general—The Comptroller General shall conduct a study on the implementation of the innovation strategy not later than 4 years after the date of enactment of this section.
  - “(2) Contents—At a minimum, the Comptroller General shall assess the effectiveness of the Postal Service in identifying, developing, and selling innovative postal and nonpostal products and services. The study shall also include—
  - “(A) an audit of the costs of developing each innovative postal and nonpostal product and service developed or offered by the Postal Service during the period beginning on the date of enactment of this section and ending 4 years after such date;
  - “(B) the sales volume of each such product and service;
  - “(C) the revenues and profits generated by each such product and service; and
  - “(D) the likelihood of continued success of each such product and service.
  - “(3) Submission—The results of the study required under this subsection shall be submitted to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives.”
- (b) Clerical amendment— The table of sections at the beginning of chapter 2 is amended by adding at the end the following: