Page:United States Statutes at Large Volume 54 Part 1.djvu/262

 PUBLIC LAWS-CH. 226 -MAY 31, 1940 Proas. than the rate established by the contract involved: Provided, That designated law. the provisions of section 3960 of the Revised Statutes (U. S . C ., title 39, sec. 440) that no compensation shall be paid for additional service in carrying the mail until such additional service is ordered, the sum to be allowed therefor to be expressed in the order and entered upon the books of the department, and that no compensation shall be paid for any additional regular service rendered before the issuing of such order, shall not apply to any service authorized under this paragraph. lNew wrds, to r "The Postmaster General may, in his discretion and in the interest of the Postal Service, readvertise and award new contracts for the purpose of releasing contractors and their sureties under the follow- Conditions specified. mg conditions: (a) Where a change is ordered in the Service involv- ing a material increase or decrease in the amount of service required to such extent as to impose undue hardship on the contractor; (b) where an abnormal or sustained increase in the quantity of mail develops during a contract period or after a bid has been submitted, necessitating larger capacity equipment to maintain the service; (c) where a change in schedule is ordered that will necessitate the con- tractor being away from the initial terminal an excessively longer or an excessively shorter period than was required in the advertised schedule; (d) where it is found after full investigation that the compensation of such contractors is wholly inadequate and that the continuation of the contract would impose undue hardship upon the Pvr notice by contractor: Provided, That provision (d) shall be effective only upon contractor. the giving by the contractor of ninety days' advance notice of his waiverotextrapay. desire to be released: Provided further, That such contractor shall waive the one month's extra pay authorized by law where contracts are canceled under section (d)." SEC. 2 . Section 1 of the Act of July 26, 1892 (27 Stat. 268; title 39, sec. 422, U. S. C .), is amended to read as follows: Contracts for add- "After providing by general advertisement for the transportation tional mail service. of the mails in any State or Territory as authorized by law, the Post- master General may secure any mail service that may become neces- sary before the next general advertisement for said State or Territory by posting notices, for a period of not less than ten days, in the post offices at the termini of any route to be let, and upon a bulletin board in the Post Office Department, inviting proposals in such form and with such guaranty as may be prescribed by the Postmaster General, for the performance of the proposed service. The contract for such service shall be made to run to the end of the contract term under rettingle t ideot the general advertisement, shall be made with the lowest responsible bidder whose proposal is in due form, and who, under the law, is eligible as a bidder for such postal service." SEC. 3. Section 3949 of the Revised Statutes, as amended (title 39, sec. 429, U. S . C .), is amended to read as follows: toowardstf contras "All contracts for carrying the mail shall be in the name of the bidder, etc. United States and shall be awarded to the lowest responsible bidder tendering sufficient guaranties for faithful performance in accordance with the terms of the advertisement. Such contracts shall require due celerity, certainty, and security in the performance of the service; but the Postmaster General shall not be bound to consider the bid of any person who has willfully or negligently failed to perform a former contract." tarRoute Serv No proposal for a contract for Star Route Service shall be con- sidered unless the bidder is a legal resident of the county or counties traversed by the roads over which the mails are to be carried, or a legal resident within the counties adjoining such county or coun- 228 [54 STAT.

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