New CDS Questions and Answers-Southern CDS Manager, Terry Stumpff

Contract Delivery Services Questions and Answer by Southern CDS Manager, Terry Stumpff-May 2021
 
Spring has sprung and the parcels keep coming!  I hear from suppliers, asking what to do about the increase in parcels being shipped from business's on their routes.  There appears to be issues within the offices on whether we scan all or none, while at the business.  The answer from USPS is as follows.
Pub 399 – Section 3 Delivery/Pickup Unit
3-1 Pickup Services Work Instructions
Rural Carrier and Contract Delivery Service (CDS) Responsibilities:
Instruction number 9:
9) In the event the carrier arrives at a delivery point and finds packages for pickup and there is no package pickup request or PS Form 5630 presented, the carrier will still collect all available mail.

  1. If there are five (5) or fewer pieces requiring an acceptance scan, the carrier must scan each piece.
  2. It is not required that the carrier scan each piece if a large quantity of parcels (6 or more) are being picked up.

With the excessive increase parcels pick ups, it is forcing suppliers to operate their contacts beyond the estimated time of their original contracts.  Many suppliers face resistance from their local AO's/Postmasters, when they ask for the office to perform a Route Survey.  Some Hired Driver Suppliers can weather the storm and eat the additional operating cost, but many Owner Operators can not, so they seek away out of their contract.
Other than just walking off the job and going into default on the contract, there are a number of different combinations depending upon the applicable Terms and Conditions as well as the contract type.  Each contractor should review their own contract documents.
 
 In a Regular Contract, the CDS and CDS/Transportation Combination contract Terms and Conditions (T’s & C’s) state a 90-day Termination on Notice by either party. 
 Alternatively, a Temporary Contract will state a 30-day Termination on Notice on the PS Form 7405B which takes precedence over the 90-days in the T’s & C’s.
 An emergency CDS Contract would provide for a 15-day Termination on Notice for the supplier and 24-hour notice for the Postal Service on the PS Form 7405A.
 Lastly, Highway Transportation Contracts give the supplier a 60-day Termination on Notice if the Annual Rate of compensation is below $2.5M and 120-day Termination on Notice if the Annual Rate of compensation is at or above $2.5M.  The Postal Service has a 60-day Termination on Notice in all cases.
Hopefully, this gives you a framework of understanding for Delivery/Pickups and the different contract types; both CDS versus Transportation and Regular versus Temporary and Emergency.
To be a successful CDS Supplier and business owner, you need to be continually educating yourself.
Be safe out there!
 
Terry
Terry N. Stumpff
President
TNStumpff Enterprises, Llc.