S 353

112th CONGRESS
1st Session

S. 353

To provide for improvements to the United States Postal Service, and for other purposes.

IN THE SENATE OF THE UNITED STATES

February 15, 2011

Ms. COLLINS introduced the following bill; which was read twice and referred to the Committee on Homeland Security and Governmental Affairs


A BILL

To provide for improvements to the United States Postal Service, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the `U.S. Postal Service Improvements Act of 2011'.

TITLE I--POSTAL SERVICE IMPROVEMENTS

SEC. 101. TRANSFER OF AMOUNTS FROM THE CIVIL SERVICE RETIREMENT AND DISABILITY FUND.

    (a) Office of Personnel Management Determination- Not later than 30 days after the date of enactment of this Act and in accordance with section 802(c)(2) of the Postal Accountability and Enhancement Act (5 U.S.C. 8348 note; Public Law 109-435; 120 Stat. 3250), the Office of Personnel Management shall make a determination or redetermination under section 8348(h) of title 5, United States Code, consistent with the report submitted by the Postal Regulatory Commission to the Postal Service and Congress on June 29, 2010.

    (b) Availability for Transfers- Section 8348(h)(2) of title 5, United States Code, is amended by striking subparagraphs (B) and (C) and inserting the following:

    `(B) The Office shall redetermine the Postal surplus or supplemental liability as of the close of the fiscal year ending September 30, 2010, and for each year thereafter, through the fiscal year ending September 30, 2043. If the result for a fiscal year is a surplus, that amount shall remain in the Fund until distribution is authorized under subparagraph (C). Beginning June 15, 2017, if the result is a supplemental liability, the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of such liability by September 30, 2043.

    `(C)(i) As of the close of the fiscal years ending September 30, 2010, 2011, 2012, 2013, 2014, 2015, and 2016, if the result is a surplus, that amount, or any part of that amount, may be transferred to the Postal Service Retiree Health Benefits Fund.

    `(ii) As of the close of the fiscal year ending September 30, 2017, and each year thereafter, if the result is a surplus, that amount, or any part of that amount, may be transferred to--

      `(I) the Postal Service Retiree Health Benefits Fund to pay any liability to the Postal Service Retiree Health Benefits Fund; or

      `(II) if all liability to the Postal Service Retiree Health Benefits Fund is paid--

        `(aa) the Employees' Compensation Fund established under section 8147; or

        `(bb) the United States Postal Service for the repayment of any obligation issued under section 2005 of title 39.

    `(iii) Any transfer under clause (i) shall be--

      `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors, except the amount may not exceed the amount under section 8909a(d)(3)(A) remaining to be paid for the applicable fiscal year; and

      `(II) credited to the Postal Service for payment of the amount required under section 8909a(d)(3)(A) for the applicable fiscal year.

    `(iv) Any transfer under clause (ii) shall be--

      `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors;

      `(II) if transferred to the Postal Service Retiree Health Benefits Fund, credited to the Postal Service for payment of any liability of the Postal Service to the Postal Service Retiree Health Benefits Fund for the applicable fiscal year; and

      `(III) if transferred to the Employees' Compensation Fund established under section 8147, credited to the Postal Service for payment of any liability of the Postal Service under chapter 81 for the applicable fiscal year.

    `(v) The Board of Governors shall--

      `(I) provide written notice to the Office of any amount to be transferred under this clause; and

      `(II) take all actions of the Board under this clause by a majority vote.

    `(vi) The Office shall transfer any amount determined by the Board of Governors to the credit of the Postal Service in accordance with this clause.'.

    (c) Postal Service Surplus or Liability Based on Federal Employees Retirement System Contributions- Section 8348 of title 5, United States Code, is amended by adding at the end the following:

    `(m)(1) In this subsection, the term `Postal surplus or supplemental liability' means the estimated difference, as determined by the Office, between--

      `(A) the actuarial present value of all future benefits payable from the Fund under chapter 84 to current or former employees of the United States Postal Service and attributable to civilian employment with the United States Postal Service; and

      `(B) the sum of--

        `(i) the actuarial present value of deductions to be withheld from the future basic pay of employees of the United States Postal Service currently subject to chapter 84 under section 8422;

        `(ii) that portion of the Fund balance, as of the date the Postal surplus or supplemental liability is determined, attributable to payments to the Fund by the United States Postal Service and its employees, minus benefit payments attributable to civilian employment with the United States Postal Service, plus the earnings on such amounts while in the Fund; and

        `(iii) any other appropriate amount, as determined by the Office in accordance with generally accepted actuarial practices and principles.

    `(2)(A) The Office shall determine the Postal surplus or supplemental liability as of the close of the fiscal year ending September 30, 2010, and for each year thereafter, through the fiscal year ending September 30, 2043. If the result for a fiscal year is a surplus, that amount shall remain in the Fund until distribution is authorized under subparagraph (B). Beginning June 15, 2017, if the result is a supplemental liability, the Office shall establish an amortization schedule, including a series of annual installments commencing on September 30 of the subsequent fiscal year, which provides for the liquidation of such liability by September 30, 2043.

    `(B)(i) As of the close of the fiscal years ending September 30, 2010, 2011, 2012, 2013, 2014, 2015, and 2016, if the result is a surplus, that amount, or any part of that amount, may be transferred to the Postal Service Retiree Health Benefits Fund.

    `(ii) As of the close of the fiscal year ending September 30, 2017, and each year thereafter, if the result is a surplus, that amount, or any part of that amount, may be transferred to--

      `(I) the Postal Service Retiree Health Benefits Fund to pay any liability to the Postal Service Retiree Health Benefits Fund; or

      `(II) if all liability to the Postal Service Retiree Health Benefits Fund is paid--

        `(aa) the Employees' Compensation Fund established under section 8147; or

        `(bb) the United States Postal Service for the repayment of any obligation issued under section 2005 of title 39.

    `(iii) Any transfer under clause (i) shall be--

      `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors, except the amount may not exceed the amount under section 8909a(d)(3)(A) remaining to be paid for the applicable fiscal year; and

      `(II) credited to the Postal Service for payment of the amount required under section 8909a(d)(3)(A) for the applicable fiscal year.

    `(iv) Any transfer under clause (ii) shall be--

      `(I) made at the discretion of the Board of Governors of the Postal Service in the amount determined by the Board of Governors;

      `(II) if transferred to the Postal Service Retiree Health Benefits Fund, credited to the Postal Service for payment of any liability of the Postal Service to the Postal Service Retiree Health Benefits Fund for the applicable fiscal year; and

      `(III) if transferred to the Employees' Compensation Fund established under section 8147, credited to the Postal Service for payment of any liability of the Postal Service under chapter 81 for the applicable fiscal year.

    `(v) The Board of Governors shall--

      `(I) provide written notice to the Office of any amount to be transferred under this clause; and

      `(II) take all actions of the Board under this clause by a majority vote.

    `(vi) The Office shall transfer any amount determined by the Board of Governors to the credit of the Postal Service in accordance with this clause.

    `(C) Amortization schedules established under this paragraph shall be set in accordance with generally accepted actuarial practices and principles, with interest computed at the rate used in the most recent valuation of the Civil Service Retirement System.

    `(D) The United States Postal Service shall pay the amounts so determined to the Office, with payments due not later than the date scheduled by the Office.

    `(3) Notwithstanding any other provision of law, in computing the amount of any payment under any other subsection of this section that is based upon the amount of the unfunded liability, such payment shall be computed disregarding that portion of the unfunded liability that the Office determines will be liquidated by payments under this subsection.

    `(4)(A) The United States Postal Service may--

      `(i) request the Postal Regulatory Commission to procure the services of an actuary to review any determination by the Office under this subsection; or

      `(ii) if the Postal Regulatory Commission does not object, procure the services of an actuary to review any determination by the Office under this subsection.

    `(B) A review under subparagraph (A) shall be conducted--

      `(i) by an actuary who holds membership in the American Academy of Actuaries and who is qualified in the evaluation of pension obligations; and

      `(ii) in accordance with generally accepted actuarial practices and principles.

    `(C)(i) An actuary that conducts a review under subparagraph (A) shall submit a report on the review to the entity that procured the services of the actuary.

    `(ii) Upon receipt of a report under clause (i), the Postal Regulatory Commission or the United States Postal Service, as appropriate, shall--

      `(I) determine whether to approve the report; and

      `(II) if the report is approved, submit the report to the Office and to Congress, together with any comments of the Postal Regulatory Commission or United States Postal Service.

    `(D) Notwithstanding any other provision of this subsection, upon submission of a report by the Postal Regulatory Commission or United States Postal Service under subparagraph (C)(ii)(II), the Office shall reconsider its determination or redetermination in light of such report, and shall make any appropriate adjustments. The Office shall submit a report containing the results of its reconsideration to the Postal Regulatory Commission, the United States Postal Service, and Congress.'.

SEC. 102. CONSIDERATION OF POSTAL SERVICE FINANCIAL CONDITION.

    Section 1207(c)(2) of title 39, United States Code, is amended by inserting `The arbitration board shall consider the financial condition of the Postal Service in rendering its decision.' after the first sentence.

SEC. 103. INCREASE IN THE USE OF NEGOTIATED SERVICE AGREEMENTS.

    Section 3622 of title 39, United States Code, is amended by adding at the end the following:

    `(g) The Postal Service and the Postal Regulatory Commission shall coordinate actions to identify ways to increase the use of negotiated service agreements for market dominant products by the Postal Service consistent with subsection (c)(10).'.

SEC. 104. AREA AND DISTRICT FIELD OFFICES.

    (a) In General- Not later than 90 days after the date of enactment of this Act, the Postmaster General shall submit a comprehensive strategic plan for guiding area and district field office structure decisions to--

      (1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

      (2) the Committee on Oversight and Government Reform of the House of Representatives.

    (b) Contents- The plan under subsection (a) shall--

      (1) be developed in consultation with the Postal Regulatory Commission; and

      (2) include--

        (A) an assessment of the effectiveness of the plan with respect to increasing efficiency, eliminating duplication, and reducing unnecessary costs;

        (B) a review of the field office structure of the United States Postal Service and describe the actions to be taken by the United States Postal Service to modify the structure based on the review; and

        (C) an examination of environmental factors, mail volumes, technological advancements, operational considerations, and other issues impacting the strategic goals of the United States Postal Service under the plan.

    (c) Report on Progress- Not later than January 1, 2012, the Postmaster General shall submit a report on the progress of implementing the comprehensive strategic plan under this section to--

      (1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

      (2) the Committee on Oversight and Government Reform of the House of Representatives.

    (d) Updated Plans- Not later than January 1, 2015, and each 5 years thereafter, the United States Postal Service, in consultation with the Postal Regulatory Commission, shall submit an updated comprehensive strategic plan under this section to--

      (1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

      (2) the Committee on Oversight and Government Reform of the House of Representatives.

SEC. 105. CO-LOCATION OF POST OFFICES AT RETAIL FACILITIES.

    (a) In General- Not later than 90 days after the date of enactment of this Act, the Postmaster General shall submit a plan on the co-location of post offices at retail facilities to--

      (1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

      (2) the Committee on Oversight and Government Reform of the House of Representatives.

    (b) Contents- The plan under subsection (a) shall--

      (1) be developed in consultation with the Postal Regulatory Commission;

      (2) provide for an increase in the co-location of post offices at retail facilities, which could supplement, rather than supplant, the services of independent post offices, and enable the United States Postal Service to offer its products and services at those locations;

      (3) consider the impact of any co-location decisions on small communities and rural areas before taking actions to co-locate post offices; and

      (4) ensure that--

        (A) service shall continue in small communities and rural areas after implementation of the plan;

        (B) the United States Postal Service solicits community input before making decisions about co-location; and

        (C) the quality of products and services offered in co-located facilities are consistent with those offered in post offices.

    (c) Report on Progress- Not later than January 1, 2012, the Postmaster General shall submit a report on the progress of implementing the plan on the co-location of post offices at retail facilities under this section to--

      (1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

      (2) the Committee on Oversight and Government Reform of the House of Representatives.

SEC. 106. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

    (a) In General- Not later than November 1 of the year following the date of enactment of this Act, and each year thereafter, the Postal Regulatory Commission shall submit a report on the fiscal stability of the United States mailing industry with respect to the preceding fiscal year to--

      (1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

      (2) the Committee on Oversight and Government Reform of the House of Representatives.

    (b) Assistance- The United States Postal Service and any Federal agency involved in oversight or data collection regarding relevant industry sectors shall provide any assistance to the Postal Regulatory Commission that the Postal Regulatory Commission determines is necessary in the preparation of any report under this section.

SEC. 107. NOTICE AND COMMENT FOR SIGNIFICANT CHANGES TO MAILING SPECIFICATIONS.

    (a) Rulemaking Required- Not later than 180 days after the date of enactment of this Act, the United States Postal Service shall, after notice and the opportunity for comment, issue rules requiring that, before making a change to mailing specifications that could pose a significant burden to the customers of the United States Postal Service and that is not reviewed by the Postal Regulatory Commission, the United States Postal Service shall--

      (1) publish the proposed change in the Federal Register not later than 30 days before the effective date of the proposed change;

      (2) solicit, and respond in writing to, comments on the proposed change; and

      (3) analyze the financial impact that the proposed change would have on the United States Postal Service and the customers of the United States Postal Service that are affected by the proposed change.

    (b) Comments on Definitions- In issuing the rules under subsection (a), the United States Postal Service shall--

      (1) specifically solicit comments on the appropriate definitions of the terms `mailing specifications' and `significant burden'; and

      (2) specifically respond to each comment received under paragraph (1) before issuing final rules.

TITLE II--POSTAL CONTRACTING PROVISIONS

SEC. 201. CONTRACTING PROVISIONS.

    (a) In General- Part I of title 39, United States Code, is amended by adding at the end the following:

`Chapter 7--Contracting Provisions

      `Sec.

      `701. Definitions.

      `702. Advocate for competition.

      `703. Delegation of contracting authority.

      `704. Posting of noncompetitive purchase requests for noncompetitive contracts.

      `705. Review of ethical issues.

      `706. Ethical restrictions on participation in certain contracting activity.

`Sec. 701. Definitions

    `In this chapter--

      `(1) the term `contracting officer' means an employee of a covered postal entity who has authority to enter into a postal contract;

      `(2) the term `covered postal entity' means--

        `(A) the United States Postal Service; or

        `(B) the Postal Regulatory Commission;

      `(3) the term `head of a covered postal entity' means--

        `(A) in the case of the United States Postal Service, the Postmaster General; or

        `(B) in the case of the Postal Regulatory Commission, the Chairman of the Postal Regulatory Commission;

      `(4) the term `postal contract' means any contract (including any agreement or memorandum of understanding) entered into by a covered postal entity for the procurement of goods or services; and

      `(5) the term `senior procurement executive' means the senior procurement executive of a covered postal entity.

`Sec. 702. Advocate for competition

    `(a) Establishment and Designation-

      `(1) There is established in each covered postal entity an advocate for competition.

      `(2) The head of each covered postal entity shall designate for the covered postal entity 1 or more officers or employees (other than the senior procurement executive) to serve as the advocate for competition.

    `(b) Responsibilities- The advocate for competition of each covered postal entity shall--

      `(1) be responsible for promoting competition to the maximum extent practicable consistent with obtaining best value by promoting the acquisition of commercial items and challenging barriers to competition;

      `(2) review the procurement activities of the covered postal entity; and

      `(3) prepare and transmit to the head of each covered postal entity, the senior procurement executive of each covered postal entity, the Board of Governors of the United States Postal Service, and Congress, an annual report describing--

        `(A) the activities of the advocate under this section;

        `(B) initiatives required to promote competition;

        `(C) barriers to competition that remain; and

        `(D) the number of waivers made by each covered postal entity under section 704(c).

`Sec. 703. Delegation of contracting authority

    `(a) In General-

      `(1) POLICY- Not later than 60 days after the date of enactment of the U.S. Postal Service Improvements Act of 2011, the head of each covered postal entity shall issue a policy on contracting officer delegations of authority for the covered postal entity.

      `(2) CONTENTS- The policy issued under paragraph (1) shall require that--

        `(A) notwithstanding any delegation of authority with respect to postal contracts, the ultimate responsibility and accountability for the award and administration of postal contracts resides with the senior procurement executive; and

        `(B) a contracting officer shall maintain an awareness of and engagement in the activities being performed on postal contracts of which that officer has cognizance, notwithstanding any delegation of authority that may have been executed.

    `(b) Posting of Delegations-

      `(1) IN GENERAL- The head of each covered postal entity shall make any delegation of authority for postal contracts outside the functional contracting unit readily available and accessible on the Web site of the covered postal entity.

      `(2) EFFECTIVE DATE- This paragraph shall apply to any delegation of authority made on or after 30 days after the date of enactment of the U.S. Postal Service Improvements Act of 2011.

`Sec. 704. Posting of noncompetitive purchase requests for noncompetitive contracts

    `(a) Posting Required-

      `(1) POSTAL REGULATORY COMMISSION- The Postal Regulatory Commission shall make the noncompetitive purchase request for any noncompetitive award, including the rationale supporting the noncompetitive award, publicly available on the Web site of the Postal Regulatory Commission--

        `(A) not later than 14 days after the date of the award of the noncompetitive contract; or

        `(B) not later than 30 days after the date of the award of the noncompetitive contract, if the basis for the award was a compelling business interest.

      `(2) UNITED STATES POSTAL SERVICE- The United States Postal Service shall make the noncompetitive purchase request for any noncompetitive award of a postal contract valued at $250,000 or more, including the rationale supporting the noncompetitive award, publicly available on the Web site of the United States Postal Service--

        `(A) not later than 14 days after the date of the award; or

        `(B) not later than 30 days after the date of the award, if the basis for the award was a compelling business interest.

      `(3) ADJUSTMENTS TO THE POSTING THRESHOLD FOR THE UNITED STATES POSTAL SERVICE-

        `(A) REVIEW AND DETERMINATION- Not later than January 31 of each year, the United States Postal Service shall--

          `(i) review the $250,000 threshold established under paragraph (2); and

          `(ii) based on any change in the Consumer Price Index for all-urban consumers of the Department of Labor, determine whether an adjustment to the threshold shall be made.

        `(B) AMOUNT OF ADJUSTMENTS- An adjustment under subparagraph (A) shall be made in increments of $5,000. If the United States Postal Service determines that a change in the Consumer Price Index for a year would require an adjustment in an amount that is less than $5,000, the United States Postal Service may not make an adjustment to the threshold for the year.

      `(4) EFFECTIVE DATE- This subsection shall apply to any noncompetitive contract awarded on or after the date that is 90 days after the date of enactment of the U.S. Postal Service Improvements Act of 2011.

    `(b) Public Availability-

      `(1) IN GENERAL- Subject to paragraph (2), the information required to be made publicly available by a covered postal entity under subsection (a) shall be readily accessible on the Web site of the covered postal entity.

      `(2) PROTECTION OF PROPRIETARY INFORMATION- A covered postal entity shall--

        `(A) carefully screen any description of the rationale supporting a noncompetitive award required to be made publicly available under subsection (a) to determine whether the description includes proprietary data (including any reference or citation to the proprietary data) or security-related information; and

        `(B) remove any proprietary data or security-related information before making publicly available a description of the rational supporting a noncompetitive award.

    `(c) Waivers-

      `(1) WAIVER PERMITTED- If a covered postal entity determines that making a noncompetitive purchase request publicly available would risk placing the United States Postal Service at a competitive disadvantage relative to a private sector competitor, the senior procurement executive, in consultation with the advocate for competition of the covered postal entity, may waive the requirements under subsection (a).

      `(2) FORM AND CONTENT OF WAIVER-

        `(A) FORM- A waiver under paragraph (1) shall be in the form of a written determination placed in the file of the contract to which the noncompetitive purchase agreement relates.

        `(B) CONTENT- A waiver under paragraph (1) shall include--

          `(i) a description of the risk associated with making the noncompetitive purchase request publicly available; and

          `(ii) a statement that redaction of sensitive information in the noncompetitive purchase request would not be sufficient to protect the United States Postal Service from being placed at a competitive disadvantage relative to a private sector competitor.

      `(3) DELEGATION OF WAIVER AUTHORITY- A covered postal entity may not delegate the authority to approve a waiver under paragraph (1) to any employee having less authority than the senior procurement executive.

`Sec. 705. Review of ethical issues

    `If a contracting officer identifies any ethical issues relating to a proposed contract and submits those issues and that proposed contract to the designated ethics official for the covered postal entity before the awarding of that contract, that ethics official shall--

      `(1) review the proposed contract; and

      `(2) advise the contracting officer on the appropriate resolution of ethical issues.

`Sec. 706. Ethical restrictions on participation in certain contracting activity

    `(a) Definitions- In this section--

      `(1) the term `covered employee' means--

        `(A) a contracting officer; or

        `(B) any employee of a covered postal entity whose decisionmaking affects a postal contract as determined by regulations prescribed by the head of a covered postal entity;

      `(2) the term `final conviction' means a conviction, whether entered on a verdict or plea, including a plea of nolo contendere, for which a sentence has been imposed; and

      `(3) the term `covered relationship' means a covered relationship described in section 2635.502(b)(1) of title 5, Code of Federal Regulations, or any successor thereto.

    `(b) In General-

      `(1) REGULATIONS- The head of each covered postal entity shall prescribe regulations that--

        `(A) require a covered employee to include in the file of any noncompetitive purchase request for a noncompetitive postal contract a written certification that--

          `(i) discloses any covered relationship of the covered employee; and

          `(ii) the covered employee will not take any action with respect to the noncompetitive purchase request that affects the financial interests of a friend, relative, or person with whom the covered employee is affiliated in a nongovernmental capacity, or otherwise gives rise to an appearance of the use of public office for private gain, as described in section 2635.702 of title 5, Code of Federal Regulations, or any successor thereto;

        `(B) require a contracting officer to consult with the ethics counsel for the covered postal entity regarding any disclosure made by a covered employee under subparagraph (A)(i), to determine whether participation by the covered employee in the noncompetitive purchase request would give rise to a violation of part 2635 of title 5, Code of Federal Regulations (commonly referred to as the `Standards of Ethical Conduct for Employees of the Executive Branch');

        `(C) require the ethics counsel for a covered postal entity to review any disclosure made by a contracting officer under subparagraph (A)(i) to determine whether participation by the contracting officer in the noncompetitive purchase request would give rise to a violation of part 2635 of title 5, Code of Federal Regulations (commonly referred to as the `Standards of Ethical Conduct for Employees of the Executive Branch'), or any successor thereto;

        `(D) under subsections (d) and (e) of section 2635.50 of title 5, Code of Federal Regulations, or any successor thereto, require the ethics counsel for a covered postal entity to--

          `(i) authorize a covered employee that makes a disclosure under subparagraph (A)(i) to participate in the noncompetitive postal contract; or

          `(ii) disqualify a covered employee that makes a disclosure under subparagraph (A)(i) from participating in the noncompetitive postal contract;

        `(E) require a contractor to timely disclose to the contracting officer in a bid, solicitation, award, or performance of a postal contract any conflict of interest with a covered employee; and

        `(F) include authority for the head of the covered postal entity to a grant a waiver or otherwise mitigate any organizational or personal conflict of interest, if the head of the covered postal entity determines that the waiver or mitigation is in the best interests of the Postal Service.

      `(2) POSTING OF WAIVERS- Not later than 30 days after the head of a covered postal entity grants a waiver described in paragraph (1)(F), the head of the covered postal entity shall make the waiver publicly available on the Web site of the covered postal entity.

    `(c) Contract Voidance and Recovery-

      `(1) UNLAWFUL CONDUCT- In any case in which there is a final conviction for a violation of any provision of chapter 11 of title 18 relating to a postal contract, the head of a covered postal entity may--

        `(A) void that contract; and

        `(B) recover the amounts expended and property transferred by the covered postal entity under that contract.

      `(2) OBTAINING OR DISCLOSING PROCUREMENT INFORMATION-

        `(A) IN GENERAL- In any case where a contractor under a postal contract fails to timely disclose a conflict of interest to the appropriate contracting officer as required under the regulations promulgated under subsection (b)(1)(D), the head of a covered postal entity may--

          `(i) void that contract; and

          `(ii) recover the amounts expended and property transferred by the covered postal entity under that contract.

        `(B) CONVICTION OR ADMINISTRATIVE DETERMINATION- A case described under subparagraph (A) is any case in which--

          `(i) there is a final conviction for an offense punishable under section 27(e) of the Office of Federal Procurement Policy Act (41 U.S.C. 423(e)); or

          `(ii) the head of a covered postal entity determines, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting an offense punishable under section 27(e) of that Act.'.

    (b) Technical and Conforming Amendment- The table of chapters for part I of title 39, United States Code, is amended by adding at the end the following:

701'.

TITLE III--FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT ELIGIBLE EMPLOYEES

SEC. 301. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT ELIGIBLE EMPLOYEES.

    (a) Transition to Retirement-

      (1) IN GENERAL- Chapter 81 of title 5, United States Code, is amended by inserting after section 8106 the following:

`Sec. 8106a. Transition to retirement

    `(a) Definitions- In this section--

      `(1) the term `covered employee' means an employee who--

        `(A) is paid compensation under section 8105 or 8106; and

        `(B) on or after attaining retirement age is eligible for an annuity under chapter 83 or 84 (other than a survivor annuity); and

      `(2) the term `retirement age' has the meaning given under section 216(l)(1) of the Social Security Act (42 U.S.C. 416(l)(1)).

    `(b) Notwithstanding any other provision of this chapter, the payment of compensation under section 8105 or 8106 to a covered employee shall terminate on the date that the covered employee--

      `(1) attains retirement age and is eligible for an annuity under chapter 83 or 84 (other than a survivor annuity); or

      `(2) after attaining retirement age becomes eligible for an annuity under chapter 83 or 84 (other than a survivor annuity).

    `(c) Not later than 1 year before the date that a covered employee attains retirement age or subsequently becomes eligible for an annuity under chapter 83 or 84 (other than a survivor annuity), the Secretary of Labor shall provide notice of this section to--

      `(1) the covered employee;

      `(2) the employing agency of that covered employee; and

      `(3) the Office of Personnel Management.

    `(d) The employing agency of a covered employee shall file an application for an annuity with the Office of Personnel Management in accordance with section 8352 or 8471.'.

      (2) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 81 of title 5, United States Code, is amended by inserting after the item relating to section 8106 the following:

      `Sec. 8106a. Transition to retirement.'.

    (b) Filing of Applications-

      (1) CIVIL SERVICE RETIREMENT SYSTEM-

        (A) IN GENERAL- Chapter 83 of title 5, United States Code, is amended by inserting after section 8351 the following:

`Sec. 8352. Employees transitioning from workers compensation

    `(a) Definition- In this section, the term `covered employee' means an employee who is a covered employee as defined under section 8106a(a)(1) and is eligible for an annuity under this chapter.

    `(b) Applications- Not later than 1 year before the date of the termination of payments of compensation under section 8106a(b) to a covered employee who is eligible for an annuity under this chapter, the employing agency of that covered employee shall file an application for an annuity for that covered employee under this chapter with the Office of Personnel Management.

    `(c) Regulations- The Office of Personnel Management shall prescribe regulations to carry out this section.'.

        (B) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 83 of title 5, United States Code, is amended by inserting after the item relating to section 8351 the following:

      `Sec. 8352. Employees transitioning from workers compensation.'.

      (2) FEDERAL EMPLOYEES RETIREMENT SYSTEM-

        (A) IN GENERAL- Chapter 84 of title 5, United States Code, is amended by inserting after section 8470 the following:

`Sec. 8471. Employees transitioning from workers compensation

    `(a) Definition- In this section, the term `covered employee' means an employee who is a covered employee as defined under section 8106a(a)(1) and is eligible for an annuity under this chapter.

    `(b) Applications- Not later than 1 year before the date of the termination of payments of compensation under section 8106a(b) to a covered employee who is eligible for an annuity under this chapter, the employing agency of that covered employee shall file an application for an annuity for that covered employee under this chapter with the Office of Personnel Management.

    `(c) Regulations- The Office of Personnel Management shall prescribe regulations to carry out this section.'.

        (B) TECHNICAL AND CONFORMING AMENDMENT- The table of sections for chapter 84 of title 5, United States Code, is amended by inserting after the item relating to section 8456 the following:

      `Sec. 8471. Employees transitioning from workers compensation.'.

SEC. 302. REGULATIONS.

    Not later than 180 days after the date of enactment of this Act, the Secretary of Labor, after consultation with the Director of the Office of Personnel Management, shall prescribe regulations to carry out this title.

SEC. 303. EFFECTIVE DATE.

    (a) In General- Except as provided under subsection (b), this title (including the amendments made by this tile) shall take effect on the date of enactment of this Act.

    (b) Termination of Compensation- Section 8106a(b) of title 5, United States Code, (as added by section 301 of this Act) shall take effect 1 year after the date regulations are prescribed under section 302.

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