.122 Each of the areas listed in 3.121 is subject to the criteria and conditions authorized in chapter 6, and is described below. The limitation of 50,000 square feet of interior floor space is intended to exclude platform areas.

a. Self-Service Postal Centers The RPMG is authorized to install and modify individual SSPCs and to take all other such actions including the acquisition (lease or purchase) of land incidental thereto.

b. Lease/Rental Agreements The RPMG is authorized to:

(1) Lease land, existing buildings or space whose annual rental costs (excluding taxes and maintenance costs) do not exceed $200,000.

(2) Lease-construct new buildings with accompanying land whose annual rental costs (excluding taxes and maintenance costs) do not exceed $200,000 or the interior floor space does not exceed 50,000 square feet.

(3) Extend (where no option exists) and modify lease/rental agreements whose annual rental costs (excluding taxes and maintenance costs) after extension or modification do not exceed $200,000.

(4) Administer and renew lease/rental agreements within existing terms of the contract. No limit.

c. Changes to USPS-Owned and Leased Facilities The RPMG is authorized to renovate, alter, improve, extend and modernize USPS-owned facilities (and purchase land incident thereto) and presently leased facilities and mechanization, provided the total project costs do not exceed $2.0 million, or that the interior floor space added does not exceed 50,000 square feet. In the case of leased facilities the costs of the change may be amortized through increased rental payments during the then remaining period of the basic lease term, or paid in lump sum by the USPS, whichever is most advantageous to the USPS. This delegated authority excludes the bulk mail processing network facilities, processing facilities included in any newly developed network and experimental lobby renovations, and developmental retail and delivery facilities.

d. USPS Purchase and Construction The RPMG is authorized to purchase land and existing facilities and construct new USPS-owned facilities, including the purchase and installation of fixed mechanization, wherein the total project costs do not exceed $2.0 million or interior floor space does not exceed 50,000 square feet. A newly constructed facility, however, must be designed and constructed on the basis of Headquarters developed standard plans; otherwise, the construction must be approved in advance by Headquarters. This delegated authority excludes bulk mail processing network facilities. It also excludes processing facilities in any newly developed general mail processing network and experimental lobby renovations and developmental retail and delivery facilities.

e. Maintenance and Repair following:

Leased Facilities The RPMG is responsible for the

(1) Supervising enforcement of maintenance and repair responsibilities imposed on lessors by the terms of leases on all leased postal facilities.

(2) Authorizing maintenance and repair projects imposed on USPS by the terms of leases, provided total project costs do not exceed $2.0 million.

f. Maintenance and Repair USPS-Owned Facilities The RPMG is authorized to maintain and repair USPS-owned facilities, provided the total project costs do not exceed $2.0 million.

g. Disposition of Land, Buildings and Space The Regional Postmaster General is authorized to:

(1) Terminate USPS lease of land, existing buildings or space whose annual rental costs (excluding taxes and maintenance costs) do not exceed $200,000 provided any penalties payable by the USPS do not exceed $100,000.

(2) Outlease or sublease excess land (except land acquired for Headquarters projects), buildings or space in leased and USPS-owned facilities and terminate such arrangements when it becomes necessary to reacquire such land, buildings or space for postal purposes provided any penalties payable by the USPS do not exceed $100,000. Normally outleases shall not exceed three years.

(3) Exchange land where the land disposed of is unimproved or is improved only for use for vehicle parking or maneuvering or for pedestrian use and is part or all of the consideration for other land acquired in the same vicinity which is more advantageous for use for postal purposes than the land disposed of.

(4) Sell or exchange land where the land disposed of is unimproved or is improved only for use for vehicle parking or maneuvering or for pedestrian use, and is required for street widening or similar governmental purposes, provided the disposition will not curtail or interfere with the Postal Service's use or intended use of the property; and provided cash or property equivalent to the fair market value of the disposed of land is obtained for it.

(5) Grant easements or rights-of-way for highway, street, road, railroad, pipeline, or utility installation or maintenance, or both.

(6) Convey land, together with any improvements thereon, to successful lease bidders in accordance with the provisions of Agreements to Lease, for the construction thereon and leased to the Postal Service of new buildings whose annual rental costs (excluding taxes and maintenance costs) do not exceed $200,000 or the interior floor space does not exceed 50,000 square feet. (7) No further delegation is provided for the sale, exchange, grant, or other disposal of USPS-owned land or facilities.

h. Capital Equipment Regional Postmasters General are authorized to acquire, modify and dispose of equipment outlined in appendix A subject to a maximum of $200,000 per procurement, provided the item is not in the supply center inventory and excluding centrally funded and procured items (see Postal Contracting Manual or Procurement and Supply Bulletin).

.13 FUNDING

.131 Funds required for all the foregoing projects and procurements will be included in functional requirement organization budget authorizations or plans. These authorizations will be developed in the following manner.

a. Affected offices will develop budget information for all categories or projects which is required by the budget or financial plan call.

b. Following Headquarters review and approval, budget authorizations or plans will be issued by the Finance Department in coordination with the responsible Headquarters organizations. Regional budget authorizations or plans will contain funds required to finance projects within their delegated authority plus those projects in excess of regional delegated authority that are to be redelegated to the region for funding, contracting and supervision. Projects in excess of regional authority and not redelegated to the region will be funded from budget authorizations or plans issued to the responsible Headquarters organization.

.132 Any fund limitations will be outlined upon the issuance of budget authorizations or plans.

3.2 RESIDUAL AUTHORITY FOR CAPITAL INVESTMENT

The foregoing delegations are exclusive in nature. Approvals of capital investment requirements not delegated are lodged in and reserved to the following officers and bodies:

a. Senior Assistant Postmasters General: Individual Headquarters projects, procurements and sales $2.0 million and under, and lease/rental agreements and dispositions whose annual rental costs do not exceed $200,000. Senior Assistant Postmasters may delegate to Headquarters subordinates under their jurisdiction any part or all of their authority to approve individual projects or procurements.

b. Headquarters Capital Investment Committee: Individual projects, procurements and sales over $2.0 million and any approval not otherwise delegated.

c. Chief Postal Inspector: Individual building change projects, individual capital equipment procurements and lease/rental agreements not to exceed $200,000 in total cost. The Chief Postal Inspector may delegate to subordinates under his jurisdiction authority to approve individual projects or procurements.

d. There shall be reserved to the Board of Governors such approval authority as it may prescribe. Any projects or procurements presented to the Board of Governors for approval shall first be approved by the appropriate officer or committee of the Postal Service and by the Postmaster General.

23-962 (pt. 1) O 73 71

CHAPTER 4 - USPS POLICIES AND PLANS IMPACT

4.1 Whenever any of the authorities delegated in appendix B are exercised, a thorough evaluation of the compatibility with or impact on current policies and plans must be made. The evaluation will be the responsibility of the official to whom authority has been delegated in each case, regardless of organizational level. If he is not sufficiently knowledgeable to make a complete and accurate evaluation, it is then his responsibility to seek assistance at higher levels.

4.2 Whenever, under the authorities outlined in chapter 3, a proposed action would result in the acquisition of physical mail processing space or in the installation of mail processing equipment which would not be compatible with the bulk mail network, that action will be specifically prohibited unless it is clearly established that it will result in at least a 10 percent “constant dollar” discounted cash flow rate of return on investment, computed over the useful life of the equipment or space. For these purposes, useful life is deemed to terminate when bulk mail network implementation renders such space or equipment unnecessary. No salvage value will be allowed on equipment. Furthermore, any proposed acquisition of space or mechanization should be compatible with current programs, such as area mail processing (AMP) for the centralization and mechanization of mail handling operations. Headquarters concurrence should be sought and received before any such projects are undertaken.

4.3 In addition, proposed actions taken under these authorities to invest capital in space or mechanization devoted to the processing of mail other than that which will be processed in the bulk mail network should fully take into account present plans and activities being devoted to the development of national systems for the processing of preferential mail. Any proposed action which regional or local management believes may be impacted by such plans or activities should be submitted to the Headquarters functional requirement organization for review and approval before any such project is undertaken. The return on the investment for such contemplated programs should be at an acceptable level after all such relevant plans and activities are taken fully into account.

CHAPTER 5 - REPORTS AND STUDIES

5.1 MANAGEMENT CONTROLS

Certain reporting devices are necessary to ensure the effective use of the foregoing delegated authority and to assure the continuation of an efficient and cost effective investment program. The following controls are established:

a. A copy of the decision and economic analysis for each action having an impact on proposed or approved mail processing networks will be furnished the responsible Headquarters organization.

b. Status reports on projects costing in excess of $50,000 shall be furnished at the end of each quarter of the postal fiscal year to the USPS Headquarters Real Estate and Buildings Department, which will develop report formats and make report distribution to all Headquarters and regional affected USPS organizations.

c. Reports concerning financial and contractual status of budget programs/plans shall be required. The Secretary of the Headquarters Capital Investment Committee shall publish a composite monitoring report periodically, deriving the necessary information from individual status reports generated by reporting organizational units.

5.2 STUDIES AND SPECIAL REPORTS

The Capital Investment Committee may authorize special studies and reports to determine whether or not the policies of this publication are being observed and to recommend revisions of this publication.