AMENDMENT OF SOLICITATION/MODIFICATION OF CONTRACT

    1    

    3    

2. AMENDMENT/MODIFICATION NO.

089

3. EFFECTIVE DATE  

02/27/2017

DALE D. PARSAN

Cargo Air Acquisitions

Air Transportation CMC

United States Postal Service

475 L’Enfant Plaza SW, Room 1P650

Washington DC 20260-0650

(202) 268-2223  

Cargo Air Acquisitions

Air Transportation CMC

United States Postal Service

475 L’Enfant Plaza SW, Room 1P650

Washington DC 20260-0650

FEDERAL EXPRESS CORPORATION

3610 HACKS CROSS ROAD

MEMPHIS TN 38125-8800

9B. DATED (SEE ITEM 11)

     x      

10A. MODIFICATION OF CONTRACT/ORDER NO.

ACN-13-FX

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

12. ACCOUNTING AND APPROPRIATION DATA (If required.)

See Schedule

Net Increase:      [*]

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

☐  

B. THE ABOVE NUMBERED CONTRACT/ORDER IS MODIFIED TO REFLECT THE ADMINISTRATIVE CHANGES (such as changes in paying office, appropriation date, etc.) SET FORTH IN ITEM 14.

☐  

C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO THE AUTHORITY OF: THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

D. OTHER (such as no cost change/cancellation, termination, etc.) (Specify type of modification and authority): THE CHANGES SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.

By Mutual Agreement of the Contracting Parties

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

14. DESCRIPTION OF AMENDMENT/MODIFICATION (Organized by UCF section headings, including solicitation/contract subject matter where feasible.)

Except as modified herein, all terms and conditions of the Contract remain in force and are unchanged. Effective February 27, 2017 (“Effective Date of Changes”), and unless otherwise agreed to by the parties in writing, these terms will apply to the performance of the parties’ obligations under the Contract.

1. Pursuant to Lines 3402 to 3404, the original Contract Term was for a Base Period of Performance of October 1, 2013 through September 30, 2020, with two 5-year renewal periods. By mutual agreement of the parties, the initial renewal period is hereby exercised in part, and the Contract’s Period of Performance is extended through September 29, 2024.

2. The attached updated ACN-13-FX Statement of Work and Terms and Conditions are hereby

Continued…

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

15A. NAME AND TITLE OF SIGNER (Type or print)

    Paul J. Herron, Vice President

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

    Brian Mckain

15B. CONTRACTOR/OFFEROR

/s/ PAUL J. HERRON

(Signature of person authorized to sign)

15C. DATE SIGNED  

2-22-2017

16B. CONTRACT AUTHORITY

/s/ BRIAN MCKAIN

(Signature of Contracting Officer)

16C. DATE SIGNED

2/22/17

CONTINUATION SHEET

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CONTRACT/ORDER NO.

ACN-13-FX/089

AWARD/ EFFECTIVE DATE  

02/27/2017

SOLICITATION         ISSUE DATE

SCHEDULE OF SUPPLIES / SERVICES

QUANTITY 

 UNIT 

    UNIT PRICE    

AMOUNT

incorporated into the Contract.

3. Attachment 1, Postal Service Operating Periods is replaced in its entirety with the revised Attachment 1, Aviation Supplier Operating Periods.

4. Attachment 10, Pricing to the Contract is replaced in its entirety with the revised Attachment 10, Pricing. The revised Attachment 10, Pricing’s Day Network Fuel Linehaul Rate component is inclusive of all adjustments required pursuant to the “Fuel Adjustment” section of the Contract, and becomes effective for performance during the period of February 27, 2017 to April 2, 2017 (Operating Period 42). [*]

5. Attachment 18, Volume Acceptance Worksheet to the Contract is replaced in its entirety with the revised Attachment 18, Volume Acceptance Worksheet.

6. Attachment 21, Offshore Capacity Options is hereby incorporated in its entirety.

7. Attachment 22, Flexibility Option is hereby incorporated in its entirety.

The obligations in this Modification are in addition to the obligations in the Contract. If conflict occurs between this contract modification and the Contract, this contract modification shall take precedence. Terms capitalized but not otherwise defined herein shall have the meaning given to them in the Contract.

-

Sub Rept Req’d: Y Carrier Code: FX Route Termini

S: Various Route Termini End: Various Payment

Terms: SEE CONTRACT

Delivery: 11/28/2016

Discount Terms:

See Schedule

Accounting Info:

Continued…

CONTINUATION SHEET

PAGE

3

OF

3

CONTRACT/ORDER NO.

ACN-13-FX/089

AWARD/ EFFECTIVE DATE  

02/27/2017

SOLICITATION         ISSUE DATE

SCHEDULE OF SUPPLIES / SERVICES

QUANTITY 

 UNIT 

    UNIT PRICE    

AMOUNT

BFN: 670167

FOB: Destination

Period of Performance: 09/30/2013 to 09/29/2024

Change Item 1 to read as follows:

[*]

Account Number: 53503

This is for estimation purposes only and is not a guarantee of contract value.

Part 1: Statement of Work

Purpose and Scope

Scale

Services Provided

Service Points

Management Plan

Frequency

Mail Assignment and Transport - Day Network

Mail Assignment and Transport - Night Network

Local Agreements

Postal Service Performs Terminal Handling Service (THS) Operation - Day Network

Aviation Supplier Planned Accommodation - Day Network

Aviation Supplier Planned Accommodation - Night Network

Delivery - Day Network

Delivery - Night Network

Saturday Delivery - Day Network

Specific Delivery Instructions

Boarding Priority - Day Network

Boarding Priority - Night Network

Repossession of Mail by the Postal Service

Treatment of Exceptional Types of Mail

Perishable Mail and Live Mail

Registered Mail

Offshore Capacity Requirement - Day Network

Volume Commitment - General Information

Volume Commitment - Contract Volume Minimum - Day Network

Operating Period Volume Minimum - Day Network

Operating Period Volume Minimum - Night Network

Volume Commitment - Holiday - Day Network

Volume Commitment - Holiday - Night Network

Operating Periods

Ordering Process - Non-Peak - Day Network

Ordering Process - Non-Peak - Night Network

Ordering Process - Peak - Day Network

Ordering Process - Peak - Night Network

Electronic Data Interchange (EDI)

Operational Condition Reports

Dimensional Weight Reports

Scanning and Data Transmission

Performance Requirements and Measurement

Reduction of Payment

Performance Management

Sustainability

Security

Postal Service Employees Allowed Access

Personnel Screening

Payment Procedures

Rates and Payment General

Payment Processing - Day Network - Per Cube

Payment Processing - Night Network - Per Pound

Reconciliation Process

Part 3: Contract Clauses

Clause B-1:

Definitions (March 2006) (Tailored)

Clause B-3:

Contract Type (March 2006) (Tailored)

Clause B-9:

Claims and Disputes (March 2006) (Tailored)

Clause B-10:

Pricing of Adjustments (March 2006) (Tailored)

Clause B-15:

Notice of Delay (March 2006) (Tailored)

Clause B-22:

Interest (March 2006) (Tailored)

Clause B-25:

Advertising of Contract Awards (March 2006)

Clause B-30:

Permits and Responsibilities (March 2006) (Tailored)

Clause B-39:

Indemnification (March 2006) (Tailored)

Clause B-45:

Other Contracts (March 2006) (Tailored)

Clause B-65:

Adjustments to Compensation (March 2006) (Tailored)

Clause B-69:

Events of Default (March 2006) (Tailored)

Clause B-75:

Accountability of the Aviation Supplier (Non-Highway) (March 2006) (Tailored)

Clause B-77:

Protection of the Mail (Non-Highway) (March 2006) (Tailored)

Clause B-80:

Laws and Regulations Applicable (March 2006) (Tailored)

Clause B-81:

Information or Access by Third Parties (March 2006) (Tailored)

Clause B-82:

Access by Officials (March 2006) (Tailored)

Clause 1-1:

Privacy Protection (July 2007)

Clause 1-5:

Gratuities or Gifts (March 2006)

Clause 1-6:

Contingent Fees (March 2006)

Clause 1-11:

Prohibition Against Contracting with Former Officers or PCES Executives (March 2006) (Tailored)

Clause 1-12:

Use of Former Postal Service Employees (March 2006) (Tailored)

Clause 2-11:

Postal Service Property - Fixed-Price (March 2006) (Tailored)

Clause 2-22:

Value Engineering Incentive (March 2006)

Clause 3-1:

Small, Minority, and Woman-owned Business Subcontracting Requirements (March 2006)

Clause 3-2:

Participation of Small, Minority, and Woman-owned Businesses (March 2006)

Clause 4-1:

General Terms and Conditions (July 2007) (Tailored)

Clause 4-2:

Contract Terms and Conditions Required to Implement Policies, Statutes, or Executive Orders (July 2009) (Tailored)

Clause 4-7:

Records Ownership (March 2006)

Clause 6-1:

Contracting Officer’s Representative (March 2006)

Clause 9-1:

Convict Labor (March 2006)

Clause 9-2:

Contract Work Hours and Safety Standards Act - Overtime Compensation (March 2006)

Clause 9-7:

Equal Opportunity (March 2006) (Tailored)

Clause 9-9:

Equal Opportunity Preaward Compliance of Subcontracts (March 2006) (Tailored)

Clause 9-10:

Service Contract Act (March 2006)

Clause 9-12:

Fair Labor Standards Act and Service Contract Act - Price Adjustment (February 2010)

Clause 9-13:

Affirmative Action for Workers with Disabilities (March 2006) (Tailored)

Clause 9-14:

Equal Opportunity for Disabled Veterans, Recently Separated Veterans, Other Protected Veterans, and Armed Forces Service Medal Veterans (February 2010) (Tailored)

Contract Term

Renewal Process

Amendments or Modifications

Assignment

Bankruptcy

Confidentiality

Entire Agreement

Force Majeure

Frequency Adjustment

Notices

Severability

Third Party Governmental Delays

Waiver of Breach

Part 4 - List of Attachments and Forms

Attachment 1

Aviation Supplier Operating Periods, dated February 8, 2017

Attachment 2

Air Stops & Projected Volumes, dated January 8, 2013

Attachment 3

Operating Plan, Day Network, dated October 31, 2016

Attachment 4

Operating Plan, Night Network, dated October 31, 2016

Attachment 5

Reserved

Attachment 6

Postal Furnished Property, April 16, 2013

Attachment 7

Electronic Data Interchange Service Requirements, dated September 1, 2012

Attachment 8

Investigative / Security Protocol and Guidelines, dated July 2012

Attachment 9

Wage Determination, dated October 31, 2012

Attachment 10

Pricing, dated February 22, 2017

Attachment 11

Perishable Mail and Lives, April 22, 2013

Attachment 12

Reserved

Attachment 13

Service Contract Act Wage Determinations, dated October 31, 2016

Attachment 14

Contract Density, dated August 23, 2016

Attachment 15

Average Weight Process, dated August 23, 2016

Attachment 16

Re-labeling Process, dated June 27, 2014

Attachment 17

Handling Unit Types, dated June 27, 2014

Attachment 18

Volume Acceptance Worksheet, dated February 22, 2017

Attachment 19

First Class Mail, Required Delivery Times, dated January 4, 2016

Attachment 20

ULD Damage Cost Matrix, dated August 23, 2016

Attachment 21

Offshore Capacity Options, dated February 22, 2017

Attachment 22

[*], dated February 22, 2017

Forms:

DOT Form F 5800.1 Hazardous Materials Incident Report

I-9 Form

PS Form 2025

PS Form 8203

US Treasury Form 941 Quarterly Federal Tax Return

a.      Coordinate and oversee its own operations; supervise and protect its own employees.

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

c.      Monitor performance.

d.      Provide feedback to the Postal Service.

e.      Ensure the integrity of data entry.

f.       Coordinate the exchange of information.

g.      Provide notification of changes or anticipated changes in services provided (including

         subcontractors) to the Postal Service.

h.      Scan material Handling Units.

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

j.       Provide the correct type and quantity of equipment necessary to support the service

         requirements of this contract.

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

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

m.     Handle overflow volumes per Postal Service general directions.

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

o.      Enter data timely and accurately.

p.      Prepare required reports.

q.      Perform verification of security seals on surface transportation.

r.       Ensure the security of all mail.

a.      Late arriving aircraft and trucks

•    Ability to conduct two operations – Originating and Destinating

b.      Early arriving aircraft and trucks

c.      Mail arriving out of normal sequence

d.      Trucks not on-site for dispatch

e.      Inclement weather during operations

•    Snow issues

•    Ice storms

•    Airport closures

f.       Protection of the mail during inclement weather

g.      Labor actions

h.      Inadequate staffing

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

j.       Overflow mail

k.      Damaged and / or non air worthy containers

l.       Damaged surface containers

m.     Damaged or non-labeled mail

n.      Plan and schedule changes

o.      Loose load mail

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

q.      Handling and staging of live animals

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

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

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

         such as generators and other systems.

t.       Natural disasters

u.      Equipment breakdowns

v.      Airport closings

w.     Air Traffic Control (ATC) impact mitigation plan

Specific Type of Airline ULD per origin / destination

Destination of Airline ULD – Direct (bypass)

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

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

Destination of Airline ULD – Mixed (to be sorted at hub)

a.      Sorting and scanning mail at an aviation supplier hub, as necessary, which also may include

         re-wrap and reapplication of Distribution & Routing (D&R) Tags to mail requiring such

         treatment, and dispatch on service responsive transportation

b.      In the unlikely event that mail tendered to the aviation supplier is in excess (overflow) of what

 may be transported, the aviation supplier shall:

i.       Secure the mail.

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

         all overflow Handling Units.

iii.     Immediately notify the local Postal official after becoming aware of an overflow

         situation. The Postal official will direct the aviation supplier to either hold the mail for

         the next outbound flight or return it to the designated Postal facility.

iv.     Prepare all overflow mail for delivery to the local designated Postal facility within

         twenty (20) minutes of receipt of Postal direction.

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

         COR.

a.      Assist in loading and dispatching all outbound surface vehicles, as required

b.      Must develop a cooperative line of communication with the Postal Service to ensure the timely

         delivery and dispatch of mail. All efforts shall be made to provide an efficient and effective

         delivery to the Postal Service.

a.      Registered (Con-Con) Mail

b.      Lives

c.      Perishables

d.      HAZMAT, regardless of mail class

e.      Domestic Priority and Express Mail

f.       First-Class Mail

g.      All Other Mail

a.      Express Mail

b.      All other classes of mail

1.      Tagging of Hazardous Material

 The aviation supplier may carry mailable HAZMAT, subject to applicable law, rules and

 regulations, including, without limitation:

a.      ORM-D Air

 “ORM-D” stands for “Other Regulated Material-Class D.” ORM-D is a term developed by

 the Department of Transportation (DOT) that signifies the hazard class associated with a

 consumer commodity. Most hazardous materials accepted by the Postal Service for

 mailing are classified as ORM-D. A package marked ORM-D meets the standards for

 surface transportation only. “ORM-D-Air” signifies that the item meets the requirements

 for air and surface transportation.

 The Postal Service currently accepts limited quantity alternative marking options (square

 on point) for ORM-D and ORM-D-Air and plans to adopt mandatory effective dates as

 identified by the Department of Transportation. There are no intended changes to

 quantity limits, package weights, or documentation requirements for these mailable

 materials.

b.      Division Class 6.2

 Division Class 6.2 materials are not permitted in international mail or domestic mail,

 except when they are intended for medical or veterinary use, research, or laboratory

 certification related to the public health. These materials are permitted only when they are

 properly prepared for mailing to withstand shocks, pressure changes, and other conditions

 related to ordinary handling in transit.

c.      Division Class 9

 Division Class 9 items are miscellaneous hazardous materials or substance articles that

 present a hazard during transportation but do not meet the definition of any other hazard

 class. Examples of miscellaneous hazardous materials (not all of which are mailable)

 include solid dry ice, elevated temperature substances, environmentally hazardous

 substances, life-saving appliances, and asbestos.

d.      Hazardous and Dangerous Goods

 The aviation supplier will accept all Dangerous Goods as defined in the Domestic Mail

 Manual, section 601.10. All Dangerous Goods will be tendered on the Night Network.

 The Postal Service will be in compliance with the current International Air Transport

 Association (IATA) allowed variations as listed for the aviation supplier. The Postal

 Service will tender all Dangerous Goods at least two hours prior to the tender time shown

 in Attachment 4: Operating Plan, Night Network. The Postal Service shall not tender any

 used sharps. Any future changes to Hazardous and Dangerous Goods requirements will

 be reviewed and must be acceptable to the aviation supplier prior to implementation of the

 changes.

e.      All other hazardous material that is packaged and distributed in a quantity and form

 intended or suitable for retail sale and designed for consumption by individuals for their

 personal care or household use purposes; reference

 http://pe.usps.gov/text/dmm300/601.htm#wp1065003.

2.      Assignment of Hazardous Materials

a.      The tender of all hazardous materials will be performed a minimum of two (2) hours prior

         to the final tender time of the intended flight.

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

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

d.      A copy of the manifest and the assigned item MUST be handed to an aviation supplier

         representative a minimum of two (2) hours prior to the closeout time of the intended flight.

         The aviation supplier representative will be responsible for ensuring that the information

         on the postal manifest which includes the number of pieces, weight, and appropriate

         shipper’s certification detail is incorporated onto the aircraft load manifest and pilot

         notification paperwork as outlined in CFR 49, Part 175, Carriage by Aircraft.

e.      Aviation supplier Refusal to Accept Hazardous Materials: If the aviation supplier refuses

         to accept a properly prepared HAZMAT item, it shall document the reasons leading to the

         refusal. Documentation will include:

i.       Name and address of mailer and air carrier;

ii.      The type and amount of hazardous material; and

iii.     The reason for refusal.

f.       HAZMAT Spills, Releases, Incidents, and Emergencies

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

Hazardous Material items which are damaged must not be boarded on the

aircraft. HAZMAT incidents which occur following the tender but prior to

boarding of the aircraft, or after unloading from an aircraft and before delivery

to the Postal Service, causing injury, illness, significant property damage, or

disruption in operations will require the aviation supplier to enter the required

information into the Mail Piece Incident Reporting Tool (MIRT), a Postal

Service intranet tool for the collection of information on leaking and other non-

mailable items.

ii.      While on board an aircraft:

Any incident which occurs while on board an aircraft will require the aviation

supplier to complete a Department of Transportation (DOT) Form F 5800.1

(01-2004), Hazardous Materials Incident Report. A copy of this form must be

sent to the COR within twenty-four (24) hours of the incident with all

information available. The incident type is not limited to hazardous material

and may include hazardous cargo spills which come in contact with the mail.

•    Aircraft number,

•    Aircraft compartment location,

•    Actual flight departure time, and

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

•       Contract Volume Minimum of [*] cubic feet on the Day Network.

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

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

 Part 3: Contract Clauses.

[*]

•       90% of Planned Capacity for the Night Network for each Operating Period

•    New Year’s Day (widely observed)

•    Martin Luther King Day

•    Presidents’ Day

•    Memorial Day (widely observed)

•    Independence Day (widely observed)

•    Labor Day (widely observed)

•    Columbus Day

•    Veterans Day

•    Thanksgiving (widely observed)

•    Christmas (widely observed)

•    Widely observed holidays

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

•    Non-widely observed holidays that occur on a Monday

•    The day following widely observed holidays not occurring on a Monday

•    Non-widely observed holidays not occurring on a Monday

•    The day after a non-widely observed holiday

•    New Year’s Day (widely observed)

•    Martin Luther King Day

•    Presidents’ Day

•    Memorial Day (widely observed)

•    Independence Day (widely observed)

•    Labor Day (widely observed)

•    Columbus Day

•    Veterans’ Day

•    Thanksgiving (widely observed)

•    Christmas (widely observed)

a.      [*]

b.      The Postal Service will request capacity based on specific plans for a Tuesday plan, a

         Wednesday plan, a Thursday plan, a Friday plan, a Saturday plan, and a Sunday plan.

Report Type

Name

Frequency

•    Time of each Handling Unit through the sort

•    The length of each Handling Unit

•    The width of each Handling Unit

•    The height of each Handling Unit

•    The D&R tag of each Handling Unit

Sorter’, ‘Time Stamp’,‘Length’,‘Width’,‘Height’,‘D&R Tag’

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

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

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

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

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

a.      Possession or Load Scan of all Handling Units and ULDs at origin Service Points, including

         Outside Handling Units

b.      Load Scan that associates the ULD to an aircraft

c.      [*]

d.      [*]

e.      [*]

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

Day Network: [*]

Night Network: [*]

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

a.      The Postal Service will scan all Handling Units at origin.

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

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

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

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

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

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

         destination.

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

a.      All Handling Units delivered up to thirty (30) minutes late will not be considered for purposes of

         calculating reduction of the Transportation Payment, but will be considered in the overall

         service calculation.

b.      All Handling Units delivered from thirty-one (31) minutes up to one (1) hour to late will be

         subject to a [*] reduction of the Transportation Payment.

c.      All Handling Units delivered 1 hour and one minute late or later will be subject to a [*]

         reduction of the Transportation Payment.

a.      Handling Units in excess of 105% of the Operating Period’s Planned Capacity will be identified

         by determining the actual volume, in cubic feet (weight of the Handling Units divided by the

         contract density for the applicable Operating Period), delivered each day to each destination

         that is in excess of 105% of the Planned Capacity for the relevant destination.

b.      In each instance, “volume in excess of 105%” will be the latest volume to arrive as evidenced

         by the delivery scans.

a.      Cost Control

b.      Holiday Operations and Planning

c.      Aviation Supplier Performance

d.      Peak Season Planning

e.      Quality

f.       Ramp Operations

g.      Reconciliation of Irregularities

h.      Security

i.       Technology Issues

j.       Tender and Delivery Hygiene

k.      Volume Planning

l.       Other Pertinent Topics

a.      All greenhouse gas emission estimates that are attributed to the transport of Postal Service

         mail products via air and (if applicable) ground transport by the aviation supplier.

i.       Emissions in a standard unit – CO_2e

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

         Year.

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

iv.     High level summary describing methodology which could include the basis for the

         Postal Service emissions allocation such as space, cost, weight, number of packages

         or other methods used to derive numbers. For example, estimates based on gallons

         used, flight characteristics, or both.

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

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

 aircraft or its owned buildings

•    Scope 2: Emissions from purchased electricity or steam.

•    Scope 3: Emissions arising from activities over which the aviation supplier

 has less control.

b.      Fiscal Year (October through September) and Calendar Year (January through December)

         greenhouse gas emissions data to be received by the Postal Service no later than three (3)

         months after the close of the fiscal and calendar year.