Contract Postal Unit - MAIL Bond - Federal in All States
Table of Contents
Brief Summary
A Contract Postal Unit puts Postal Service stamps, funds and mail in the hands of a private business. The bond is how USPS protects that property, and having it ready means the contracting officer can move your CPU contract forward without waiting on you.
A Contract Postal Unit bond is posted by a private business that runs an USPS retail counter under contract with the Postal Service. USPS policy describes it as carrying obligations similar to a performance, payment and fidelity bond rolled into one. The United States Postal Service is the obligee, and the penal amount is set in the CPU contract, so confirm the current amount and bond form with your USPS contracting officer before the bond is issued.
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How to Apply for a Contract Postal Unit - MAIL Bond:
- Get the bond amount and any required bond form from your USPS contracting officer or the CPU solicitation.
- Provide the legal business name and address exactly as they appear on the CPU contract.
- Complete the surety application with owner and business information for the credit review.
- Pay the premium and receive the signed bond with the surety's power of attorney.
- Deliver the original bond to the USPS contracting officer for the contract file.
Detailed Information About the All States Contract Postal Unit - MAIL Bond:
What a Contract Postal Unit is
The USPS Office of Inspector General describes a Contract Postal Unit, or CPU, as a Postal Service retail unit located inside a private business and run by nonpostal employees. The supplier works under a contract with the Postal Service and sells stamps and provides domestic mailing services such as First-Class Mail. In fiscal year 2013 there were over 2,700 CPUs.
Where the bond comes from
USPS purchasing policy, the Supplying Principles and Practices, lists Contract Postal Unit bonds as their own category in section 7-3.1. It says these bonds impose obligations on a supplier similar to those required under performance, payment and fidelity bonds. In plain terms, the bond backs up the supplier's promise to run the unit as the contract requires and to account for Postal Service funds and property in its care.
The Postal Service is the obligee. The supplier is the principal, and a surety company stands behind the supplier. If the supplier fails to meet its obligations and USPS suffers a loss, USPS can recover from the surety up to the penal amount. The supplier then owes the surety back.
How much and on what form
The amount is written into the CPU contract and solicitation rather than set by statute. USPS policy says bonds should be no larger than needed to protect the Postal Service's interest, and prescribed bond formats are found in the relevant USPS handbook. Use the amount shown on this listing as your starting point and confirm the exact figure and form with the contracting officer before the bond is signed.
Cash instead of a bond
Section 7-3.1.8 of the Supplying Principles and Practices lets a supplier deposit certain assets in place of a surety bond. Acceptable assets are U.S. Treasury bills, notes or bonds maturing within 5 years of the contract date, or a certified check, cashier's check, bank draft, postal money order or currency payable to the United States Postal Service, in each case at least equal to the penal amount. Most operators prefer a surety bond because it keeps that cash in the business.
What drives the premium
The surety looks at the owner's personal credit, the business's finances and the bond amount. Stronger credit generally means a lower rate.
Eligibility and Requirements for an All States Contract Postal Unit - MAIL Bond:
- United States Postal Service named as obligee.
- Penal amount as stated in the CPU contract.
- Bond executed by the supplier as principal and a surety company.
- Proof of the surety agent's authority, such as a power of attorney.
- Partnerships list every partner and corporations list the state of incorporation on the bond.
All States Contract Postal Unit - MAIL Bond FAQs:
The United States Postal Service, as part of a contract to operate a Contract Postal Unit inside a private business. USPS purchasing policy treats CPU bonds as their own bond type.
USPS policy says a CPU bond carries obligations similar to performance, payment and fidelity bonds. It protects the Postal Service if the supplier fails to perform the contract or to account for postal funds and property.
The penal amount is set in your CPU contract. Start with the amount on this listing and confirm it with your contracting officer before the bond is issued.
Yes. USPS policy allows Treasury securities maturing within 5 years, or a certified check, cashier's check, bank draft, postal money order or currency, equal to at least the penal amount, in place of a surety bond.
