(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;

(5) 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 in lieu of highway 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 contract 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) If 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 the purposes of determining depreciated value as of the time that the vehicle was first used in the performance of the contract and the depreciation which occurs during the performance of the contract, such vehicle will be deemed to have a service life of seventy-two months and such vehicle will be

deemed to uniformly depreciate one seventysecond of its original sales price for each month. (e) If a contract is altered pursuant to subsection (c), the contractor shall not be entitled to either the indemnity or to the equitable allowance provided either in subsection (d) or by terms of his contract. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 695, amended Pub. L. 87-491, June 19, 1962, 76 Stat. 106.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 1052, 1053 (Aug. 1, 1956, ch. 813, §§ 3, 4, 70 Stat. 781).

These two sections are combined in this section.
Changes are made in phraseology.

CODIFICATION

The opening provisions of Pub. L. 87-491 provide “That subsections (b) and (c) of section 6352 of title 39, United States Code, are amended to read as follows:". Subsections (d) and (e) are set forth following the amendment of subsecs. (b) and (c). Such subsecs. (d) and (e) are included within this section since this appears to be the intent of Congress.

AMENDMENTS

1962 Subsec. (b). Pub. L. 87-491 added clause (2) and redesignated former clauses (2)-(6) as (3)—(7). Subsec. (c). Pub. L. 87-491 authorized the Postmaster General, with the contractor's consent, to alter highway post office service contracts, to permit substitution of star route service for the remainder of the contract, and to extend or renew said star route service contracts for successive periods not exceeding four years, and eliminated provisions which required each contract to provide for its cancellation by the Postmaster General, and that each contract could provide for an indemnity payment in such event.

Subsec. (d), (e). Pub. L. 87-491 added subsecs. (d) and (e).

§ 6353. Renewal of contracts for highway post office service.

(a) The Postmaster General, by mutual agreement with the holder of a contract for highway post office service and without submitting the service for bids, may renew the contract for successive periods of not more than six years at the rates of compensation prevailing at the end of the preceding contract term.

(b) The Postmaster General may enter into a contract with the subcontractor then performing the service, in the same manner and upon the same terms as prescribed in subsection (a) of this section if

(1) the holder of the contract has sublet his contract in accordance with its terms and does not indicate in writing to the Postmaster General at least ninety days before the end of the contract term that he desires to renew the contract, and

(2) the subcontractor has performed the service required under the contract to the satisfaction of the Postmaster General for a period of at least six months.

(Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 695.) HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 1054 (Aug. 1, 1956, ch. 813, § 5, 70 Stat. 781). Changes are made in phraseology.

§ 6354. Temporary contracts for highway post office service.

Where there is no contractor legally bound or required to perform the service desired by the Post

master General, or when an accepted bidder or contractor fails or refuses to perform the service on a route according to his accepted proposal or his contract, the Postmaster General, without advertising, may contract for the service desired or continue the service originally contracted for in such manner and in such equipment as he deems to be in the public interest for a term not in excess of one year. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 695.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., § 1055 (Aug. 1, 1956, ch. 813, § 6, 70 Stat. 781). Changes are made in phraseology.

§ 6355. Bonds for highway post office contract.

The Postmaster General may require such bonds as he deems necessary to protect the interests of the Government in the form and amount and containing such conditions as he prescribes. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 695.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., § 1056 (Aug. 1, 1956, ch. 813, § 7, 70 Stat. 781). Changes are made in phraseology.

"star route contract" means a contract for the transportation of mail over a post road other than a railroad and may include collection and delivery service to patrons of the postal service;

"contract motor vehicle service" means a formal contract for a fixed term for service in accordance with section 6403 of this title;

"mail messenger service" means service performed in accordance with section 6403 of this title under an informal agreement without term. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 696.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 425a, 434, 505, 506, 578 (R.S. 3951; June 8, 1872, ch. 335, § 251, 17 Stat. 314; June 23, 1874, ch. 456, § 12, 18 Stat. 235; Aug. 11, 1876, ch. 260, 19 Stat. 129; Aug. 3, 1882, ch. 379, § 2, 22 Stat. 216; Mar. 3, 1887, ch. 346, 24 Stat. 492; May 18, 1916, ch. 126, § 8, 39 Stat. 161; June 14, 1930, ch. 490, 46 Stat. 588; May 31, 1940, ch. 226, §§ 1, 3, 54 Stat. 227, 228; July 11, 1940, ch. 582, §§ 1, 2, 54 Stat. 756; June 19, 1948, ch. 500, 62 Stat. 477; June 27, 1950, ch. 370, 64 Stat. 260; Feb. 29, 1952, ch. 69, § 1 (ac), 66 Stat. 10; June 18, 1954, ch. 309, 68 Stat. 255; Aug. 10, 1954, ch. 662, 68 Stat. 679; Aug. 31, 1954, ch. 1142, 68 Stat. 998; Sept. 1, 1954, ch. 1208, title VI, § 604, 68 Stat. 1116).

This section, as a separate section, is new to the Code. It is added for the purpose of simplifying the language in the succeeding sections of this chapter. The term "star route" is in general use and is employed in legislation. See, for example, sections 425a and 434 of title

39.

"Contract motor vehicle service" is a designation which replaces "screen vehicle service" and "regulation panel body vehicle service" used in section 434, title 39. The new designated term will distinguish the contract service from Government-operator motor vehicle service.

"Mail messenger service" is derived from section 578 of title 39, which section is covered by sections 6403 and 6423 of this title.

§ 6402. Authority to contract for mail transportation. (a) The Postmaster General may contract for necessary domestic or foreign transportation of mail, except that

(1) transportation of mail by railroad shall be procured as provided in chapter 95 of this title and otherwise provided by law;

(2) transportation of mail by air shall be obtained in accordance with chapter 97 of this title; (3) highway post office service shall be obtained in accordance with chapter 99 of this title:

(4) delivery and collection service may not be established or extended under a star route contract on a rural route except when such rural route does not meet the minimum standards established by the Postmaster General, and becomes vacant;

(5) if possible, mail consigned between an airport and a post office at which there is Government-owned motor vehicle service, shall be transported by Government-owned motor vehicles, when the distance is not more than 35 miles; and (6) transportation of mail, in passenger-carrying motor vehicles, by passenger common carriers by motor vehicle shall be procured as provided in section 6402a of this title.

(b) Subsection (a) (5) of this section does not prohibit the transportation of mail by helicopter or similar aircraft between airports and post offices. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 696, amended Pub. L. 87-793, § 708, Oct. 11, 1962, 76 Stat. 855; Pub. L. 88-239, § 3, Dec. 23, 1963, 77 Stat. 476.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 421, 422, 424, 425, 426, 429, 430, 433, 434, 435, 436, 451, 473, 474, 482, 486, 493, 651, 652. (R.S. 3944, 3945, 3949, 3951, 3955, 3956, 3968, 3975, 4006, 4007; June 8, 1872, ch. 335, §§ 245, 251, 17 Stat. 313, 314; June 23, 1874, ch. 456, § 12, 18 Stat. 235; Aug. 11, 1876, ch. 260, 19 Stat. 129; Mar. 3, 1877, ch. 103, §3, 19 Stat. 335; Mar. 3, 1879, ch. 180, § 30, 20 Stat. 362; Mar. 1, 1881, ch. 96, § 1, 21 Stat. 374; Aug. 3, 1882, ch. 379, § 2, 22 Stat. 216; Mar. 1, 1884, ch. 9, 23 Stat. 3; July 26, 1892, ch. 249, § 1, 27 Stat. 268; May 12, 1910, ch. 230, 36 Stat. 366; May 18, 1916, ch. 126, §§ 6, 7, 8, 39 Stat. 161; July 28, 1916, ch. 261, § 1, 39 Stat. 418; Mar. 3, 1917, ch. 162, § 2, 39 Stat. 1068; July 2, 1918, ch. 117, § 1, 40 Stat. 751; June 14, 1930, ch. 490, 46 Stat. 588; May 31, 1940, ch. 226, §§ 1, 2, 3, 54 Stat. 227, 228; June 19, 1948, ch. 500, 62 Stat. 477; June 23, 1948, ch. 607, § 1, 62 Stat. 576; June 27, 1950, ch. 370, 64 Stat. 260; Feb. 29, 1952, ch. 69, §1 (a-c), 66 Stat. 10; June 28, 1952, ch. 485, § 1(1), 66 Stat. 286; Apr. 4, 1953, ch. 18, § 3, 67 Stat. 22; Aug. 10, 1954, ch. 662, 68 Stat. 679; Aug. 31, 1954, ch. 1142, 69 Stat. 998; May 1, 1958, Pub. L. 85-392, 72 Stat. 103).

(a) Subject to subsection (a) (5) of section 6402 of this title, the Postmaster General may enter into informal agreements for mail messenger service without term or into formal contracts for motor vehicle service for the carriage of mail in connection with transportation service in cases where, by law or the regulations of the Department, rail, air, water and other carriers are not required to deliver into and take from postal facilities the mails carried by them. The Postmaster General may use such service as transfer service between such points as he deems necessary including service within, between and among carriers, depots, airports, piers, post offices, branch post offices or stations or other postal facilities and over bridges and ferries.

AMENDMENTS

(b) Postmasters, officers, and employees, may enter into agreements for the performance of mail messenger service when the Postmaster General determines that the performance of the service will not interfere with their regular duties or with the operations of the postal service. Except as provided in subsection (c) of this section the total amount payable under an agreement may not exceed $900 in any one year.

(c) Special delivery messengers at post offices of all classes may enter into agreements for mail messenger service without regard to the amount payable in any one year. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 697.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 578, 579, 667 (Mar. 3, 1887, ch. 346, 24 Stat. 492; Mar. 2, 1907, ch. 2513, 34 Stat. 1214; Mar. 4, 1913, ch. 143, 37 Stat. 799; July 28, 1916, ch. 261, § 1, 39 Stat. 418, 420; June 3, 1924, ch. 237, 43 Stat. 356; Jan. 22, 1925, ch. 87, title II, 43 Stat. 786; July 3, 1952, ch. 552, 66 Stat. 324).

All but the last sentence of section 578, title 39, is covered by subsection (a) of this section. The last sentence is covered by section 6423 of this title.

Subsection (a) also covers section 667 of title 39, except authority to maintain Sea Post Service. This latter authority is covered in section 6404 of this title.

Section 579 of title 39 is covered by subsections (b) and (c) of this section. The section, however, is made applicable to all employees except special delivery messengers in accordance with Comptroller General's declsions (8 Comp. Gen. 578, 610). Reference to the appropriation available for such contracts is omitted. There is no such appropriation.

§ 6404. Sea post service.

The Postmaster General may maintain sea post service on ocean vessels conveying mail to and from the United States. (Pub. L. 86-682, Sept. 2, 1960,

74 Stat. 697.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., § 667 (Mar. 2, 1907, ch. 2513, 34 Stat. 1214; Mar. 4, 1913, ch. 143, 37 Stat. 799; July 28, 1916, ch. 261, § 1, 39 Stat. 420; Jan. 22, 1925, ch. 87, title II, 43 Stat. 786).

This section is based on the matter preceding the semicolon in the cited section. The remainder of the section is covered by section 6403 of this title. Changes are made in phraseology.

§ 6405. Duration of contracts.

(a) The Postmaster General may make contracts for the transportation of mail by vessel between the United States and foreign ports for terms of not

more than two years. When the foreign office is not more than 200 miles from the domestic office he may make contracts for domestic and foreign transportation of mail by vessels, combined in one route, for terms of not more than four years. He may make other contracts for the transportation of mail for four-year terms.

(b) This section does not apply to mail messenger service or to contracts made under sections 6408, 6413, 6415, 6427 of this title. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 697.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 424, 436, 449 (R.S. 3943, 3956; May 17, 1878, ch. 107, § 5, 20 Stat. 62; Mar. 3, 1885, ch. 342, § 1, 23 Stat. 386).

Section 449 of title 39 is divided. The last sentence of said section which places a two-year limitation on contracts for carrying mail between the United States and foreign ports is combined with similar provisions of section 436 of title 39, and covered by the first sentence of subsection (a). The remainder of section 449 is covered by section 6408 of this title. That part of section 436 providing generally that contracts be for terms not in excess of four years is covered by the last sentence of subsection (a).

The provisions of section 424, title 39, are also covered by subsection (a). Reference to the appropriation from which the contract price may be paid is omitted as obsolete.

Subsection (b) is added as a cross reference to other sections authorizing different terms for certain types of contracts.

Changes are made in phraseology.

§ 6406. Termination of contracts for foreign transportation.

Contracts for the transportation of mail by vessel between the United States and a foreign port shall be made subject to cancellation by the Postmaster General or the Congress. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 697.)

HISTORICAL AND REVISION NOTES Based on title 39, U.S.C., 1952 ed., § 656 (R.S. 4011). Changes are made in phraseology.

§ 6407. Extension of contracts.

(a) The Postmaster General may continue in force beyond its express terms any regular contract for the transportation of mail until a new contract is made, but not longer than six months.

(b) This section does not apply to temporary contracts made under section 6415 of this title. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 697.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 434 (R.S. § 3951; June 8, 1872, ch. 335, § 251, 17 Stat. 314; June 23, 1874, ch. 456, § 12, 18 Stat. 235; Aug. 11, 1876, ch. 260, 19 Stat. 129; Aug. 3, 1882, ch. 379, § 2, 22 Stat. 216; May 18, 1916, ch. 126, § 8, 39 Stat. 161; June 14, 1930, ch. 490, 46 Stat. 588; May 31, 1940, ch. 226, § 1, 54 Stat. 227; June 19, 1948, ch. 500, 62 Stat. 477; June 27, 1950, ch. 370, 64 Stat. 260; Feb. 29, 1952, ch. 69. § 1 (a-c), 66 Stat. 10; Aug. 10, 1954, ch. 662, 68 Stat. 679; Aug. 31, 1954, ch. 1142, 68 Stat. 998).

Subsection (a) of this section covers the second sentence of the third paragraph of section 434, title 39. For the distribution of section 434, see note under section 6414 of this title.

Subsection (b) provides that extension is not authorized for contracts covered by section 6415 of this title. Changes are made in phraseology.

(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.

He

(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 1 Peninsula, Kodiak Island, Alaska Peninsula, the Aleutian Islands, Umnak Island, and points on Bristol Bay, Alaska, and vicinity. 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. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 698.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., §§ 449, 487a (R.S. 3943; May 17, 1878, ch. 107, § 5, 20 Stat. 62; Aug. 10, 1939, ch. 635, 53 Stat. 1338; June 3, 1948, ch. 381, 62 Stat. 292). Subsection (a) of this section covers all but the last sentence of section 449 of title 39. The last sentence is covered by section 6405 of this title.

The language of the section is clarified to show that new contracts for the transportation of mail may be entered into notwithstanding the fact that there may be an existing contract for the transportation of mail over the same route. This is necessary for the reason that in some cases, such as between San Francisco and Honolulu, there may be need for several contracts covering transportation of mail over the same route, because of the volume of mail or need for expediting dispatch of the mail.

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.

(Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 698, amended Pub. L. 87-646, § 19, Sept. 7, 1962, 76 Stat. 446.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 644 (R.S. 4009; July 3, 1926, ch. 793, 44 Stat. 900; May 22, 1928, ch. 675, § 414(e), 45 Stat. 696; Feb. 14, 1929, ch. 201, 45 Stat. 1175). The proviso of section 654 (a), title 39, U.S.C., is omitted as obsolete due to the repeal of sections 891e-891q, ch. 24A of title 46. Reference to sections 891e-891q of title 46 in subsection (b) of section 654, title 39, is omitted because of the repeal of said sections June 29, 1936, ch. 858, §§ 302, 903 (c), 49 Stat. 1993, 2016. The savings provisions of subsection (b) of section 654 is covered by subsection (b) of this section which confines the compensation provisions to transportation "obtained under this section." Subsection (c) of section 654, title 39, is omitted as obsolete as there is no specific appropriaton for transportation of "foreign mails."

Changes are made in phraseology.

AMENDMENTS

1962-Subsec. (a). Pub. L. 87-646 eliminated words "the Territory of Hawaii," which preceded "the Commonwealth of Puerto Rico" in cl. (1).

EFFECTIVE DATE OF 1962 AMENDMENT

Amendment of section by Pub. L. 87-646 effective on Nov. 1, 1962, see section 23(a) of Pub. L. 87-646, set out as a note under section 1 of this title.

CONTINUATION OF ORDERS, RULES, AND REGULATIONS Orders, rules, and regulations in effect under provisions of law superseded or amended by Pub. L. 87-646, to remain in effect, to the extent they would have been authorized under Pub. L. 87-646, until specifically repealed, amended, or revised, see section 22 of Pub. L. 87646, set out as a note under section 1 of this title.

§ 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. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 698.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 450 (July 2, 1918, ch. 117, § 1, 40 Stat. 747).

The word "aeroplanes" is omitted as superseded. Reference to "inland transportation" is omitted. See note to section 450, title 39.

Changes are made in phraseology.

§ 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

(2) require due celerity, certainty, and security in the performance of the service.

(b) The Postmaster General may disregard the bid of a person who willfully or negligently failed to perform a former contract. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 698.)

HISTORICAL NOTE

Based on title 39, U.S.C., 1952 ed., § 429 (R.S. § 3949; May 18, 1916, ch. 126, § 6, 39 Stat. 161; May 31, 1940, ch. 226, § 3, 54 Stat. 228).

§ 6412. Advertisements for mail transportation contracts.

When advertising is required by law, the Postmaster General shall advertise, for a period of not less than 30 days, for bids for a contract for transporting the mails, unless he shall publish with the advertisement a finding that the public exigencies surrounding the particular contract require a shorter period. The advertisement shall be conspicuously posted in each post office to be served under the contract. (Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 699.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 422a, (May 1, 1958, Pub. L. 85-392, § 4, 72 Stat. 103). Changes were made in phraseology.

§ 6413. Exceptions from advertisement requirements. Section 6412 does not apply to contracts for the transportation of mail

(a) by mail messengers under sections 6403 and 6423 of this title;

(b) by highway post office service under sections 6351 to 6355 of this title; or

(c) by steamships under sections 6405 and 6408 of this title.

(Pub. L. 86-682, Sept. 2, 1960, 74 Stat. 699.)

HISTORICAL AND REVISION NOTES

Based on title 39, U.S.C., 1952 ed., § 422b (May 1, 1958, Pub. L. 85-392, § 4, 72 Stat. 103). Changes were made in phraseology.

§ 6414. Procedures after default of bidder or contractor.

(a) If an accepted bidder or contractor for the transportation of mail defaults on his bid or contract, the Postmaster General shall contract with the next lowest bidder who will enter into a contract for the service in accordance with his bid, unless he considers the bid too high. If he considers the bid too high, he may contract with any person, giving preference to regular bidders for the service, who will enter into a contract to perform the service at a lower price.

(b) The Postmaster General shall require each person contracting under this section to furnish a bond of like tenor, effect, and penalty as that required in the advertisement of the route. Contracts made under this section shall contain the same terms and provisions as those prescribed for similar service.

(c) If a satisfactory contract cannot be secured under this section, the Postmaster General may pro