formance of his postal duties and with applicable laws and regulations. Nothing in this section shall prevent an employee from serving as an official of a religious or fraternal organization or of a civil nonpolitical organization which is supported by dues or contributions from its own members.

§ 447.62 Holding of State or local office by Postal Service employees.

(a) An employee may seek, accept, or hold a nonpartisan State or local office subject to the provisions of this Code and in particular this section. A "nonpartisan" office is one filled by a “nonpartisan election", which is an election at which none of the candidates are to be nominated or elected as representing a political party any of whose candidates for presidential elector received votes in the last preceding election at which presidential electors were selected.

(b) An employee who wishes to seek, accept, or hold a nonpartisan State or local office is responsible for ascertaining:

(1) Whether the office is "nonpartisan" within the definition

§ 447.62(a).

in

(2) Whether State or local law permits a Postal Service employee to seek, accept, or hold the particular office.

(3) Whether the duties of the office would result in a conflict with his Postal Service employment.

(4) Whether the discharge of the duties of the office would interfere with the performance by the particular employee of his Postal Service duties in an acceptable manner or would interfere with the performance by other Postal Service employees of their respective duties in an acceptable

manner.

(c) An employee is encouraged to seek advice from his Associate Ethical Conduct Counselor prior to taking any action to seek, accept, or hold a State or local office. If, after the employee has entered upon the discharge of the duties of this non-postal office, nis non-postal duties interfere with the proper discharge of postal duties, either by him or by other postal employees, the employee holding the non-postal office shall be advised by his superior to eliminate the interfer

ence, either by resignation from the non-postal office, or in such other manner as is appropriate under the circumstances. If the employee fails, refuses, or neglects to comply with the foregoing advice and the interference continues, he will be subject to disciplinary proceedings.

(d) Employees, other than postmasters or acting postmasters in a salary level of EAS-25 or higher, may be granted permission to campaign for a full-time State or local nonpartisan office while on annual leave or on authorized leave without pay during the campaign when:

(1) The criteria in paragraphs (b) (1) and (2) of this section are met, and

(2) The Regional Postmaster General determines that the employee's postal responsibilities are being conducted in a satisfactory manner and that the absence of the employee during the campaign period will not disrupt the operation of the facility where he is employed.

NOTE: Requests shall be submitted through the postmaster or other installation head to the Regional Postmaster General. If the employee is elected to and takes such a full-time office, he may either be separated from the Postal Service or granted leave without pay.

(e) A postmaster or acting postmaster in salary level EAS-25 or higher shall not be authorized to take annual leave or leave without pay for the purpose of campaigning for a full-time State or local nonpartisan office.

[39 FR 1990, Jan. 16, 1974, as amended at 48 FR 48231, Oct. 18, 1983]

(2) Any information that causes him to believe that there has been a violation of a Federal criminal statute or any law or regulation directly or indirectly related to the responsibilities of the Postal Service. A copy of a report made under this paragraph shall also be sent by the employee to the Chief Postal Inspector, Washington, D.C. 20260. The report shall be sent in a sealed envelope clearly marked "Limited Official Use-To Be Opened by Addressee Only".

Subpart H-Definitions

§ 447.81 Definitions of terms used in this Code.

(a) Postal Service. The U.S. Postal Service as established by section 201 of title 39, U.S.C.

(b) Employee. An individual appointed to a position, temporary or permanent, within the Postal Service, or hired as an executive under an employment contract, including a substitute. The term "employee" does not include the Governors of the Postal Service and members of the Postal Service Advisory Council nor, unless the context requires, a special Postal Service employee.

(c) Associate Ethical Conduct Officers. The persons designated in

§ 447.31(b) and any other persons specifically designated by the Postmaster General to assist the Ethical Conduct Officer in administering this Code.

(d) Person. An individual, a corporation, a company, an association, a firm, a partnership, a society, a joint stock company, or any other organization, institution or entity.

(e) Special Postal Service Employee or Special Employee. An individual retained, designated, appointed, or employed in the Postal Service to perform, with or without compensation, temporary duties either on a full-time or intermittent basis for not to exceed 130 days during a period of 365 consecutive days.

(f) Official Responsibility. Direct administrative or operating authority, whether intermediate or final, and either exercisable alone or with others, and either personally or through subordinates, to approve, dis

approve, or otherwise direct Postal Service action.

(g) Employee's Interests. The interests of an employee and his spouse and, in addition, the interest of his minor child, or children, and other individuals related to the employee by blood who are residents of the employee's household.

(h) Business Dealings with the Postal Service. Any contract, work, or business, or the performance thereof, or any litigation arising out of or involving any contract, work, or business, or the sale or acquisition of any property, real or personal, or any interest in property, whose expense, price, or consideration is payable by or to the Postal Service.

(i) This Code. The Code of Ethical Conduct for Postal Employees which consists of the regulations of the Postal Service which are published in 39 CFR 447.11 through 447.91 inclusive.

[39 FR 1990, Jan. 16, 1974; 39 FR 4081, Feb. 1, 1974, as amended at 48 FR 48231, Oct. 18, 1983]

Subpart 1-Statutory Provisions 3

The laws mentioned in this Code are listed for information only. Nothing in this Code constitutes an interpretation or construction of these laws which would bind the U.S. Postal Service or the United States. Failure to mention a statute does not excuse any person from complying with it.

§ 447.91 Statutes and regulations applicable to postal employees.

The following statutes are applicable to all employees in the Postal Service:

(a) House Concurrent Resolution 175, 85th Congress, 2nd Session, 72 Stat. B12, the "Code of Ethics for Government Service." (Quoted above at § 447.12)

(b) Prohibition against proscribed political activities (5 U.S.C. subchapter III of chapter 73 and 18 U.S.C. 602, 603, and 607).

(c) Prohibition against appointing or promoting a relative, or advocating such an appointment or promotion (5 U.S.C. 3110).

(d) Prohibitions against disloyalty and striking (5 U.S.C. 7311; 18 U.S.C. 1918).

(e) Chapter 11 of Title 18, U.S.C., relating to bribery, graft, and conflicts of interest.

(f) Prohibition against acting as the agent for a foreign principal registered under the Foreign Agents Registration Act (18 U.S.C. 219).

(g) Prohibition against unauthorized taking or use of documents relating to claims against or by the Government (18 U.S.C. 285).

(h) Prohibition against postal employees becoming interested in any contract for carrying the mail (18 U.S.C. 440).

(i) Prohibition against counterfeiting and forging transportation requests (18 U.S.C. 508).

(j) Prohibition against:

(1) Embezzlement of Government money or property (18 U.S.C. 641);

(2) Failing to account for public money (18 U.S.C. 643); and

(3) Embezzlement of the money or property of another person in the possession of an employee by reason of his employment (18 U.S.C. 654).

(k) Prohibitions against:

(1) Disclosure of classified information (18 U.S.C. 798), and

(2) Disclosure of confidential information (18 U.S.C. 1905).

(1) Prohibition against fraud or false statements in a Government matter (18 U.S.C. 1001).

(m) Prohibition against participation in lottery enterprises (18 U.S.C. 1303). (n) Prohibition against Carriage of Mail contrary to law (18 U.S.C. 1693). (0) Prohibition against Desertion of Mail (18 U.S.C. 1700).

(p) Prohibition against Obstruction of Correspondence (18 U.S.C. 1702).

(q) Prohibition against Delay or Destruction of Mail or newspapers (18 U.S.C. 1703).

(r) Prohibition against theft of mail (18 U.S.C. 1709).

(s) Prohibition against theft of newspapers (18 U.S.C. 1710).

(t) Prohibition against Misappropriation of Postal Service funds (18 U.S.C. 1711).

(u) Prohibition against falsification of postal returns (18 U.S.C. 1712).

(v) Prohibition against improper issuance of money orders (18 U.S.C. 1713).

(w) Prohibition against misuse of the franking privilege (18 U.S.C. 1719). (x) Prohibition against sale or pledge of stamps (18 U.S.C. 1721).

(y) Prohibition against unlawful collection of postage (18 U.S.C. 1726).

(z) Prohibition against improper approval of bond or sureties (18 U.S.C. 1732).

(aa) Prohibition against lobbying with appropriated funds (18 U.S.C. 1913).

(bb) Prohibition against the use of deceit in an examination or personnel action in connection with Government employment (18 U.S.C. 1917).

(cc) Prohibition against mutilating or destroying a public record (18 U.S.C. 2071).

(dd) Prohibition against disclosure of lists of names and addresses (39 U.S.C. 412).

(ee) Prohibition against making or receiving political recommendation for appointment or promotion (39 U.S.C. 1002).

(ff) Prohibition against receipt of unauthorized fees (39 U.S.C. 1009). (gg) Oath of office required for all postal employees (39 U.S.C. 1011). (hh) Prohibition against opening First Class Mail (39 U.S.C. 3623). (ii) Privacy Act of 1974 (5 U.S.C. 552a).

NOTE: In addition to these statutes, Executive Order No. 11222 of May 8, 1965, as made applicable to the Postal Service by Executive Order No. 11590 of April 23, 1971, prescribes standards of ethical conduct for officers and employees of the Government. [39 FR 1990, Jan. 16, 1974, as amended at 40 FR 45726, Oct. 2, 1975; 48 FR 48231, Oct. 18, 1983]

601.100 Postal Contracting Manual; incorporation by reference.

601.101 Effective date.

601.102 Applicability and coverage.

601.103 Content of Postal Contracting Manual.

601.104 Availability of Postal Contracting Manual.

601.105 Amendments to the Postal Contracting Manual.

AUTHORITY: 5 U.S.C. 552(a), 39 U.S.C. 401,

404, 410, 411, 2008, 5001-5605.

§ 601.100 Postal Contracting Manual; incorporation by reference.

Section 552(a) of Title 5, U.S.C., relating to public information requirements of the Administrative Procedure Act, provides in pertinent part

that "* ** matter reasonably avail

able to the class of persons affected thereby is deemed published in the [FEDERAL REGISTER when incorporated by reference therein with the approval of the Director of the Federal Register." In conformity with that provision, with 39 U.S.C. section 410(b)(1), and as provided in this part, the U.S. Postal Service hereby incorporates by reference its Postal Contracting Manual (PCM), Publication 41, a looseleaf publication.

[36 FR 23217, Dec.7, 1971]

§ 601.101 Effective date.

The provisions of the Postal Contracting Manual are applicable, effective January 1, 1972, with respect to all covered procurement activities of the Postal Service. However, the Manual or portions thereof may be placed into effect at an earlier time by individual procurement officers of the Postal Service for procurement activities under their jurisdiction after December 7, 1971.

[36 FR 23217, Dec. 7, 1971]

§ 601.102 Applicability and coverage.

(a) The Postal Contracting Manual applies to all Postal Service procurements of property and services.

(b) The Postal Contracting Manual supersedes interim regulations on the procurement of property and services published in the FEDERAL REGISTER of June 30, 1971 (36 FR 12451).

[36 FR 23217, Dec. 7, 1971, as amended at 37 FR 1275, Jan. 11, 1972]

§ 601.103 Content of Postal Contracting Manual.

The Postal Contracting Manual consists of 27 sections, some of which are reserved for subsequent use, and two appendices, as follows:

(a) Section 1 covers general procurement policies, including the delegation of procurement responsibilities and authorities; procedures for contracting with small and minority-owned business concerns, and concerns in labor surplus areas; and Buy American Act preferences.

(b) Section 2 establishes procedures for purchase by formal advertising and the determination of protests against award.

(c) Section 3 authorizes purchase by negotiation under certain prescribed circumstances and sets forth applicable procedures and techniques.

(d) Section 5 covers procurement from other Government agencies.

(e) Section 6 prescribes procedures for effecting small purchases not in excess of $5,000, or $10,000 in certain circumstances.

(f) Section 7 prescribes clauses for use in various types of contracts.

(g) Section 8 describes principles and procedures applicable to the termination of contracts for convenience or for default.

(h) Section 9 covers patents and the acquisition of rights in data.

(i) Section 10 sets forth policies and procedures governing bonds and insurance under contracts.

(j) Section 11 discusses the impact of Federal, State, and local taxes upon postal procurements, and provides clauses relating thereto.

(k) Section 12 implements the labor statutes applicable to the Postal Service, and prescribes procedures governing equal employment opportunity under postal contracts.

(1) Section 14 covers inspection and acceptance.

(m) Section 15 establishes cost principles for use in postal contracts.

(n) Section 16 illustrates procurement forms and sets forth instructions for their use.

(0) Section 18 prescribes policies and procedure for the acquisition and control of land, for leasing postal facilities, for the procurement of construction and minor repairs and improvements.

(p) Section 19 establishes policies and procedures for the procurement of mail transportation and directly related ancillary services by contract.

(q) Section 20 deals with administrative matters including numbering procedures for procurement documents and formats for contracts.

(r) Section 22 prescribes procedures for the solicitation, award, and administration of job cleaner contracts.

(s) Section 24 deals with disposition of personal property in possession of contractors.

(t) Section 26 prescribes policies and procedures for the application of transportation and traffic management considerations in procurement of supplies and services.

(u) Section 27 defines policies and procedures applicable to research and development contracts.

(v) Sections 4, 13, 17, 21, 23, and 25 are reserved for future use.

(w) Appendix A sets forth the rules of practice before the Postal Service Board of Contract Appeals (Part 955 of this chapter).

(x) Appendix B contains the rules of practice in proceedings relative to debarment and suspension from contracting (Part 957 of this chapter).

[36 FR 23217, Dec. 7, 1971, as amended at 39 FR 26403, July 19, 1974; 41 FR 20408, May 18, 1976; 42 FR 35158, July 8, 1977]

§ 601.104 Availability of Postal Contracting Manual.

(a) Copies of the Postal Contracting Manual, Publication 41, may be purchased, and changes to the Manual may be obtained, from the Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402. The Manual may be examined during normal business hours at the U.S. Postal Service, Office of Contracts, 475 L'Enfant Plaza West, S.W., Washington, D.C. 20260, and at the following U.S. Postal Service Regional Contract and Supply Management Branches:

Northeastern Region, 33d Street & Eighth Avenue, New York, N.Y. 10098.

Eastern Region, 1845 Walnut Street, Philadelphia, PA 19101.

Southern Region, Mid-Memphis Tower,

1407 Union Avenue, Memphis, TN 38166. Central Region, 433 West Van Buren Street, Chicago, IL 60699.

Western Region, 850 Cherry Street, San Bruno, CA 94099.

(b) A copy of the Postal Contracting Manual is on file with the Director, Office of the Federal Register, National Archives and Records Service, General Services Administration, Washington, D.C. 20408.

[36 FR 23217, Dec. 7, 1971, as amended at 41 FR 20408, May 18, 1976; 42 FR 27588, May 31, 1977]

§ 601.105 Amendments to the Postal Contracting Manual.

Notice of changes made in the Postal Contracting Manual will be periodically published in the FEDERAL REGISTER. The text of such changes will be filed with the Director, Office of the Federal Register. Subscribers to the basic Manual will receive from time to time the amendments from the Postal Service in the form of Postal Contracting Manual Circulars. PCM Circulars will be cumulated in an annual Transmittal Letter which subscribers will receive from the Government Printing Office.