Page:United States Statutes at Large Volume 74.djvu/738

 PUBLIC LAW 86-682-SEPT. 2, 1960

[74 S T A T.

§ 6408. Transportation by vessel under noncompetitive contracts (a) When the Postmaster General deems it necessary to make a new contract for the transportation of mail by vessel on waters, or between ports, of the United States he may contract without advertising for terms of not more than four years at a rate of compensation not to exceed the average compensation paid under the existing contract or under the last preceding contract for the transportation of mail on that route. When there has been no prior contract for the transportation of mail on a route on waters, or between ports, of the United States, the Postmaster General may contract for a term of one year for the transportation of mail on that route without advertising, or for terms of not more than four years after advertising. (b) The Postmaster General may contract for the transportation of all classes of mail by vessel of United States registry on the route from Seward to points on Kanai Peninsula, Kodiak Island, Alaska Peninsula, the Aleutian Islands, Umnak Island, and points on Bristol Bay, Alaska, and vicinity. H e may make the contract without advertisement for a term of not more than four years, at an annual cost not to exceed $250,000. The Postmaster General shall require the contractor to furnish and use in the service a safe and seaworthy vessel of sufficient size to provide adequate space for mail, passengers and freight. § 6409. Transportation by vessel under informal arrangements (a) The Postmaster General without advertising may provide for the transportation of mail by vessel between— (1) the United States, its possessions, the Territory of Hawaii, the Commonwealth of Puerto Rico, and a foreign port; (2) the United States and its possessions, its Armed Forces abroad, the Commonwealth of Puerto Rico; or (3) any possession or the Armed Forces of the United States, or the Commonwealth of Puerto Rico, and any other possession or Armed Forces of the United States. (b) The Postmaster General for transportation obtained under this section by a— (1) vessel of United States registry, may pay compensation not to exceed eighty cents a pound for letters, post cards and postal cards, and eight cents a pound for other articles; and (2) vessel of foreign registry, may pay compensation not to exceed the sea transit rates fixed from time to time by the Universal Postal Union Convention. § 6410. Transportation of mail by vessel as freight or express The Postmaster General may require that mail be transported as freight or express when— (1) there is no competition on a water route and the rate of compensation asked is excessive; or (2) no proposal is received. A common carrier by water that refuses to transport the mail when required to do so under this section shall be fined not more than $500 for each day of refusal. § 6411. Requirements of contracts let after competitive bidding (a) Formal contracts for transportation of mail which are required to be made after advertising shall— (1) be awarded to the lowest responsible bidder with sufficient guarantee for faithful performance in accordance with the terms of the advertisement; and

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