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The United States Postal ServiceŽ is committed to attracting diverse suppliers and business partners who are able to provide quality goods and services. As part of its Transformation Plan, the Postal ServiceTM has identified the supply chain management philosophy and attendant business practices as central to its efforts to further its business and competitive objectives. In order to fully take advantage of supply chain management and to consistently provide outstanding service to its customers, the Postal Service must have a world-class chain of excellent suppliers who are agile, responsive, and effective. With over 37,000 facilities throughout the nation, we seek suppliers who are committed to continuous improvement and who reflect the nation we serve.
The Postal Service's supply chain philosophy is built on the following four
guiding principles:
By adhering to these principles, we provide a level playing field for all of
our suppliers within the chain. In return, we expect and receive the best value
for every dollar we spend.
Supply Management, Facilities, and Diversity Development support internal and
external programs designed to provide suppliers with access to our contract
opportunities. Working together, these three organizations are committed to
improving all aspects of Postal Service purchasing.
Supply Management
The Postal Service is one of the largest service organizations in the world
and, as a result, one of America's biggest buyers.
Moving the mail is a gigantic effort that involves more than 37,000 facilities
throughout the nation. The Postal Service delivers 202 billion pieces of mail
a year, or five pieces per address per day to over 141 million homes, businesses,
and Post Office Boxes. The Postal Service is not supported by tax revenue. The
majority of our revenue comes from the sale of stamps and postage and we have
an annual budget exceeding $64 billion.
We may have the most varied set of supply needs in the United States - needs that translate to tens of thousands of contract opportunities worth billions of dollars each year. Purchases range from asphalt to snow removal, carrier satchels to communications satellites, and real estate to robotics. The Postal Service depends on suppliers like you to provide top-quality equipment, facilities, services, and supplies to meet our needs.
Our vision is to have a world-class supplier base that reflects the diversity of the American business community and is marked by broad, inclusive supplier participation in all Postal Service purchasing activities. We recognize that in order to maintain and improve our ability to provide universal, cost-effective mail service that meets the needs of our customers, it is essential that we use both large and small suppliers that provide performance excellence and that strive for continuous improvement. In promoting and developing a diverse supplier base, we will continue to ensure that no supplier is excluded from opportunities or given preference to compete, on the basis of race, color, religion, sex, age, national origin, or sexual orientation. The purpose of this publication is to tell you what, where, and how we buy, and how you can do business with us. So let us know what you can offer and let's do business!
3.1 Purpose
To maintain a strong supplier base that reflects the diversity of the American
supplier community. This purpose aligns with the Postal Service's overall diversity
policy that includes a commitment to "ensure that all suppliers have the
opportunity to compete for our contracts, and that our local purchasing policies
support the local business community and encourage economic development."
3.2 Vision
A world-class supplier base that reflects the diversity of the American business
community and is marked by broad, inclusive supplier participation in all Postal
Service purchasing activities.
3.3 Guiding Principles
3.3.1 General Philosophy
In order to maintain and improve our universal mail service at cost-effective
and competitive prices, it is essential that we use both large and small suppliers
that provide performance excellence. In promoting and developing a diverse supplier
base, we will continue to ensure that no supplier is excluded from opportunities
or given preference to compete, on the basis of race, color, religion, sex,
age, or national origin.
3.3.2 Responsibility
Providing opportunities to suppliers able to meet Postal Service needs is the
responsibility of all Postal Service employees who generate a requirement, approve
a purchase, commit Postal Service funds, identify or select suppliers, or who
manage a supplier relationship.
3.3.3 Source Identification
We will identify diverse sources during the purchase planning stage and include
small, minority-owned, and woman-owned businesses in sourcing plans, whenever
practical. We will cooperate and partner with organizations that promote such
businesses and ensure that buyers and market analysts are aware of those organizations
that have been successful in performing contracts for us.
3.3.4 Development and Opportunities
We will publicize contracting and subcontracting opportunities and simplify
our processes to make it easier for suppliers to do business with us. We will
openly communicate and actively discharge our obligations in a proper, timely,
and professional manner; address and resolve contractual and performance issues
promptly; and work with suppliers to help them develop and enhance their capabilities
to do business with us.
3.3.5 Performance
Our immediate objectives are to identify and do business with suppliers who
can compete effectively, provide the best value, perform reliably, and work
with us to reduce costs and cycle time. Our experience makes it clear that efforts
to promote supplier diversity do not require any relaxation of our requirements
for effective competition, quality performance, and best value.
3.3.6 Goals and Measurement
Our goal is to become a recognized leader in supplier diversity. We will
strive for continuous improvement by establishing effort-based indicators and
monitoring progress by tracking the number of our transactions, dollars awarded,
opportunities offered, and other factors. We will benchmark ourselves against
"best practices" and track performance over time.
3.3.7 Key Terms
The following terms describe the three categories of business that are central
to our mission:
To move the mail, we buy a great variety of goods and services. These are grouped into the following five portfolios:
Now that you know what we buy, you also need to know how we buy. Before you
read about how to market goods or services to the Postal Service, you should
understand the way that we solicit and award our contracts.
5.1 We Are Different
Although the Postal Service is a government agency, it is also an independent
establishment of the executive branch of the government of the United States,
mandated by law to operate like a business. Because of this, we are exempt from
many of the laws that ordinarily apply to government contracting. Our purchasing
regulations - contained in our Purchasing Manual - are different from those
of most government agencies. In addition, unlike other government agencies,
we are not covered by the Small Business Act. However, like any large private-
or public-sector institution, we are aware of our socioeconomic responsibilities.
One of the main objectives of our supplier diversity program is to continually
seek out and foster contract opportunities for small, minority-owned, and woman-owned
businesses. And we have a proven record of success in this important area.
5.2 The Best of Public and Private
Our Purchasing Manual is focused on using the purchasing process to further
the Postal Service's business and competitive objectives. It is intended to
bring to Postal Service purchasing a combination of private-sector innovations
and efficiencies and our traditional commitment to the fairness and accountability
expected of a public agency. Our policies emphasize business practices such
as supplier prequalification and streamlined purchasing procedures that reflect
our business-like approach. The result is a purchasing policy unique in government
contracting - one that offers you ample opportunity to do business with us.
5.3 Business Ethics
We are also committed to the highest standards of ethical conduct in all of
our business dealings. Under government-wide regulations issued by the Office
of Government Ethics, our employees are prohibited from accepting gifts or gratuities
from our suppliers or from persons seeking contracts or other types of business.
While these rules do allow for limited exceptions for items of nominal value,
the offer or acceptance of gifts is inappropriate and discouraged.
5.4 Our Purchasing Process
5.4.1 The Process
Our Purchasing Manual establishes a general purchasing process that contains
elements common to our purchases regardless of the commodity being purchased.
Postal Service contracts are awarded through a single framework of solicitation,
evaluation, discussion, selection, and award. The framework is designed to ensure
three important results:
5.4.2 Competition and Publicizing
A basic foundation of our purchasing policy is competition. We compete the majority
of our contracts valued at more than $10,000. Our policy is "adequate competition,"
which means that we seek a sufficient number of qualified suppliers to ensure
that the required quality and quantity of goods and services are obtained when
needed, and that the price is fair and reasonable. Many of our contracting opportunities
are publicized locally on the Federal Business Opportunities web site (http://www.eps.gov)
and in Commerce Business Daily (http://cbd.cos.com/). Our Supplier Automated
Database (SADI) site (http://www.purchasing.gov/sadi) allows suppliers to "register"
with the Postal Service and provide us with their most up-to-date business information.
It is important that you do so since the SADI database is an important sourcing
tool for Postal Service buyers and provides access to a diverse pool of suppliers.
5.4.3 Evaluation
Under our purchasing process, we evaluate supplier proposals in order to determine
the best value. Awards are not based exclusively on lowest prices, although
price can be a significant factor in the evaluation. To determine best value,
we evaluate such factors as past performance, the capability of the supplier
to perform the work, and other proposal-specific performance factors. We may
invite suppliers to provide oral presentations regarding their proposals to
allow the opportunity for meaningful two-way communication.
5.4.4 Local Buying
Local buying is another method of purchasing millions of dollars worth of day-to-day
operational requirements. Local buys are made at local offices throughout the
country (generally with credit cards) and they are not subject to the rules
and regulations contained in our Purchasing Manual.
5.4.5 Prequalification
Prequalification is the process of up-front identification of top-quality suppliers
able to compete for specific types of contract opportunities. This is a mutually
beneficial private-sector business process. The benefits to us are twofold:
(1) competition is enhanced and (2) quality performance is promoted. Benefits
to suppliers include a more comprehensive opportunity to familiarize themselves
with our requirements before solicitations are issued, which in turn yields
lower proposal preparation costs. We use prequalification for a single purchase
or for a series of purchases (but not for local buys). Prequalification opportunities
are publicized in the same manner as contract opportunities, and suppliers are
evaluated using the same general process discussed previously.
5.4.6 e-Purchasing
For several years, we have conducted business electronically with numerous suppliers
and we are continually expanding our use of this purchasing method. The benefits
- both to buyer and supplier - of e-Purchasing include reduced time in evaluating
and awarding contracts and prompt payment.
5.4.7 Payment
The payment method depends on the type of contract involved. Some service contractors
(such as those operating contract postal units) are paid once a month, while
others are paid after goods are delivered and accepted. Advance payments are
sometimes authorized, but only for very specific types of contracts. We are
encouraging suppliers to use e-Purchasing approaches whenever practical. Local
buys are usually made by credit card.
The Postal Service annually recognizes suppliers who have clearly demonstrated
their ability and commitment to consistently provide quality products or services
to the Postal Service. This program enables us to formally and publicly recognize
the best of our suppliers each year. Since 1989, we have recognized small, large,
minority-owned and woman-owned firms for outstanding performance.
A key objective of our Quality Supplier Awards Program is to communicate to
all prospective suppliers that the Postal Service is looking for suppliers who
are committed to continuously improving their products and services and achieving
high-quality performance levels over time.
Since 2003, the Quality Supplier Awards Program has focusesd on supply chain
management excellence and recognized firms that have truly "made a difference"
in helping the Postal Service achieve significant bottom line results.
If you would like additional information regarding the Postal Service Quality
Supplier Awards Program, please visit our web site at www.usps.com/purchasing
The Postal Service is committed to providing our customers and employees with a safe and healthy environment. Protecting our environment is not only the right thing to do — it is a sound business practice.
8.1 Many Points of Entry
There are many points of entry into the Postal Service purchasing arena. You
may wish to market your product to the Postal Service for use in an area as
small as your local trade area or as large as the entire country.
8.2 Local
Every organization in the Postal Service has day-to-day operational needs that
can be met with purchases up to $10,000 and that are addressed by buyers at
the local level. We encourage all Postal Service personnel with local buying
authority to seek out and use local, small, minority-owned, and woman-owned
merchants who have established timely delivery and performance and customer
satisfaction in prior dealings with the Postal Service or other customers. Your
contacts for marketing locally are postmasters, district purchasing specialists,
and other district and area office personnel.
8.3 Area and National
Purchases that exceed $10,000, that are more complex in nature, or that meet
requirements that are wider in scope are passed along to area contracting officers
or to Headquarters. Your contacts for marketing area-wide or nationally are
contracting officers or purchasing specialists at area purchasing and materials
service centers, facilities service offices, distribution network offices, and
Postal Service Headquarters.
8.4 Unsolicited Proposals
The Postal Service has an Unsolicited Proposal Program to consider proposals
outside the scope of those made in response to our solicitations. Such proposals
include offers of concepts, products, processes, or technology to which a supplier
has a patent, trademark, or other proprietary right. Marketing efforts for commercial
products and offers relating to previous Postal Service contracts or proposals
are not considered under the program. If you wish to submit an unsolicited proposal,
please see Postal Service Publication 131, The Postal Service Unsolicited Proposal
Program, which is available on the Postal Service Internet (http://www.usps.com/cpim/ftp/pubs/pub131.pdf).
8.5 Sales of Postal Service Items
In addition to being interested in contracting with us, some suppliers want
to purchase used equipment and other items from the Postal Service. If you are
interested in such materials, including antique and collectible equipment and
surplus items, contact one of the purchasing service centers listed in Section
11,Your Contacts.
8.6 Access to Postal Service Purchasing
Who can buy what I sell?
For local buys not more than $10,000:
For purchases over $10,000:
How can they buy what I sell?
For buys not more than $10,000:
For purchases over $10,000:
How can I find out about opportunities?
Because the needs of the Postal Service are so diverse, it is no surprise that
our suppliers are just as diverse. We contract with some of America's biggest
corporations, but we also contract with individuals in some of America's smallest
towns. And we buy goods and services from such government agencies as the General
Services Administration and the Defense Logistics Agency. Regardless of size,
location, or line of business, if you can provide quality goods or services
- on time and at a fair price - we welcome you to compete for one of our contract
opportunities.
This publication is available at http://www.usps.com/cpim/ftp/pubs/pub5.pdf.
If you have questions, please write:
SUPPLIER DIVERSITY SUPPLY MANAGEMENT STRATEGIES
US POSTAL SERVICE
475 L'ENFANT PLAZA SW RM 4320
WASHINGTON DC 20260-4320
FAX 202-268-7288
EMAIL: BUSINESS@.USPS.GOV
FREQUENTLY ASKED QUESTIONS (FAQs)
Postal Service contacts can be found at several locations throughout the country. For your convenience, we have grouped these contacts by commodity portfolio and by Postal Service area location. See: http://www.usps.com/purchasing/sm_portfoliosmenu.htm.