Page:United States Statutes at Large Volume 76.djvu/154

 106

PUBLIC LAW.87-491-JUNE 19, 1962

[76 STAT.

Public Law 87-491 June 19, 1962 [H. R. 6695]

P o s t a l Service. Highway p o s t office contracts. 74 Stat. 695.

Alteration or renewal.

74 Stat. 701.

Cancellation.

AN ACT To amend title 39 of the United States Code with respect to the transportation of mail by highway jyost oflSce service, and for other purposes.

Be it enacted by the Seimte and House of Representatives of the United /States of America in Congress assembled, That subsections (b) and (c) of section 6352 of title 39, United States Code, are amended to read as follows: " (b) The Postmaster General in contracts for highway post office service may provide for— "(1) increasing or decreasing the mileage; "(2) the addition of new route segments if the original route and the new segment to be so added have at least one common terminus point; "(3) increasing or decreasing the hours of service required; "(4) other service changes; "(6) the readjustment and compensation either upward or downward to reflect the service changes and increased or decreased costs attributable to changed conditions occurring during the contract term over which the Postmaster General or the contractor have no control and which could not reasonably have been foreseen at the time the original bid was made or the proposal for renewal filed; "(6) the imposition or remission of fines and penalties by the Postmaster General for delinquencies in the performance of the contracts; and " (7) other matters deemed appropriate by him. ''(c) If the Postmaster General determines highway post office service is no longer required on a route already under contract, the Postmaster General may, in his discretion, and with the consent of the highway post office contractor, alter the existing highway post office contract to permit the substitution of star route service m lieu of highw^ay post office service for the remainder of the contract period at a rate which shall be determined by negotiation, taking into consideration the nature and extent of the star route service and other pertinent factors, but which shall not be in excess of the rate being paid under such existing highway post office contract. The Postmaster General is authorized to extend or renew said contracts for substituted star route service for successive periods of not more than four years at the rate of compensation prevailing at the end of the preceding conti^ct term. The provisions of section 6420 of this title shall not apply to the contracts altered or renewed pursuant to the authority conferred by this subsection. " (d) i f the Postmaster General shall cancel any contract for highway post office service, he shall make the following indemnities on account of such cancellation: "(1) not in excess of one-twelfth of the compensation which would have been earned in one year if the service discontinued had been performed; and "(2) an equitable allowance on account of any vehicle made surplus resulting from such discontinuance of the service. The equitable allowance shall be equal to one-half of the difference between the depreciated value which the vehicle made surplus had as of the time it was first used to perform the contract and the sum of (A) depreciation which occurs during the performance of the contract and (B) the proceeds realized by the sale or disposal of the vehicle made surplus by discontinuation of the service. For

�