Supplying Principles and Practices > USPS Supplying Practices Process Step 4: Deliver and Receive Requirements > Acceptance
Acceptance
Acceptance means the receipt and retention of products delivered or servicesrendered by a Supplier following inspection to ensure conformance withcontract specifications. Acceptance may take place before delivery, atdelivery, or after delivery, depending on the contract's provisions.
Acceptance constitutes acknowledgement that products or services conformto quality, quantity, and packing requirements set forth in the contract.Acceptance may be used for the start of the warranty period. Afteracceptance, the product or service can then be used by the Postal Servicefor its intended purpose.
After inspection, three possibilities exist for the received goods or services:
Acceptance
Generally, the Postal Service accepts the Supplier's product or service whenit conforms to the contract specifications or criteria. At the time ofacceptance, no outstanding nonconformities remain. The Postal Service'spayment to the Supplier prior to a timely rejection of the Supplier's product orservice does not constitute acceptance.
Acceptance is the responsibility of the Contracting Officer or the ContractingOfficer's Representative (COR). However, acceptance can be performed bythe Client for direct delivery items. When this responsibility is assigned to aCOR or other party, acceptance by that person is binding on the PostalService. Contracting Officers may contract with third parties to performcontract administration responsibilities related to acceptance.
Contracts should specify the place of acceptance. Products accepted at aplace other than destination may not be Inspected (inspection processdetermines whether the purchase will be accepted or rejected) again foracceptance at destination, but should be examined for quantity, damage intransit, and possible substitution or fraud. Additional information onInspection can be found in the Receipt and Inspection topic of the CompleteDelivery task of Process Step 4: Deliver and Receive Requirements.
Acceptance Based on Supplier Certification
When purchasing commercial items, acceptance based on suppliercertification, Clause B-5: Certificate of Conformance, may be in the PostalService's interest when:
•Only small losses will be incurred by a defect.
•The Supplier's reputation or past performance suggests that theproducts or services will be acceptable and that defective workwill be replaced, corrected, or repaired without contest.
•The Supplier's production processes and procedures aredemonstrated to provide quality products that meet or exceedPostal Service requirements. International StandardsOrganization (ISO) certification and maintenance of certificationmay be an indicator of quality performance.
Revocation of Acceptance in Whole or in Part
The Purchase/SCM Team, represented by the Contracting Officer, can revokeacceptance of a nonconforming product or service if original acceptance:
•Resulted from the reasonable assumption that thenonconformance would be corrected, but it is not corrected
•Took place because the nonconformance has not beendiscovered before acceptance as a result of the difficulty ofdiscovery (e.g., hidden defects) or because of the Supplier'sassurances
The Postal Service has the same rights and duties upon revocation as uponrejection. Revocation of acceptance must occur within a reasonable timeafter the Contracting Officer discovers the deficiency. These issues areaddressed in paragraph a of 4-1: General Terms and Conditions andClause 2-1: Inspection and Acceptance.
Transfer of Title and Risk of Loss
The title to products passes to the Postal Service upon formal acceptance,regardless of when or where the Postal Service takes physical possession,unless the contract specifically provides for earlier transfer of title.
Unless the contract specifically provides otherwise, risk of loss or damageremains with the Supplier until:
•Delivery of the products to a Carrier, if transportation isfree-on-board (f.o.b.) origin
•Acceptance by the Postal Service or delivery to the PostalService at the destination specified in the contract, whichever islater, if transportation is f.o.b. destination
This does not apply to products that are rejected. The risk of loss of, ordamage to, rejected products remains with the Supplier until correction oracceptance. Additional information on f.o.b. origin and destination can befound in the Shipping topic of the Complete Delivery task of Process Step 4: Deliver and Receive Requirements.
Surveillance or Audit of the Work in Progress
A surveillance plan is used to identify from the statement of work (SOW) thespecific tasks that require compliance with the identified standards. Thesurveillance plan identifies standards by which the Supplier is expected toperform in a continuous, satisfactory manner. The Supplier must be informedimmediately if there are issues of noncompliance with the contractspecifications so the required corrections can be made.
The costs to the Supplier for Postal Service time when the Supplier is notcompliant for an inspection requested by the Supplier and reinspections areaddressed in Clause 2-23: Reimbursem*nt - Postal Service Testing.
Delayed Acceptance
The Purchase/SCM Team may consider using a special testing requirementafter delivery and before acceptance (such as a preacceptance test) forpurchases of complex equipment (e.g., mail-handling systems,telecommunications equipment, computers, and building systems).Requirements for delayed acceptance must be thoroughly described in thecontract. Clause 2-6: Delayed Acceptance addresses preacceptance testsand the requirements of the Supplier associated with the tests.
Rejection
The Purchase/SCM Team may reject any or all of the supplies or services notconforming to contract requirements resulting from:
•Defined criteria or specifications not satisfied (e.g., pursuant toClause B-4: Variation in Quantity, variations in quantity will beaccepted only in certain conditions and/or in certain thresholds)
When determined that correction within the delivery schedule is not possible,the Purchase/SCM Team must ordinarily reject products or services wherenonconformance adversely affects safety, health, reliability, durability,performance, interchangeability of parts or assemblies, weight, appearance,or any other basic objective of the contract. Suppliers must be given a noticeof rejection promptly, including the reasons for rejection. If prompt notice isnot given, acceptance may be implied as a matter of law. The Postal Servicewill return rejected items for correction, substitution, refund, or credit.
All repair, replacement, and other correction and redelivery must becompleted within the time frame determined by the Postal Service. All costsand expenses and loss of value incurred as a result of, or in connection with,nonconformance and repair, replacement, or other correction will berecovered from the Supplier (e.g., through equitable price reduction or creditagainst any amounts that may be owed to Supplier).
Correction or Replacement
Suppliers must be given an opportunity to correct or replace nonconformingproducts or services when it can be accomplished within the deliveryschedule. If correction or replacement is feasible:
•There must be no additional cost to the Postal Service.
•The Postal Service reserves the right to charge the Supplier thecost of reinspection and retesting needed because of a previousrejection (rates charged and other expenses are in accordancewith Clause 2-23: Reimbursem*nt - Postal Service Testing).
When replacement or correction is not possible within the performance periodand the Purchase/SCM Team has rejected performance, the ContractingOfficer may provide the Supplier an opportunity to provide acceptablesubstitute performance if the Purchase/SCM Team decides that:
•Performance is still desired and
•Substitute performance will best mitigate the damage suffered bythe Postal Service.
When substitute performance is accepted, the Contracting Officer mustmodify the contract to provide for appropriate consideration.
Nonconforming Supplies or Services
Under paragraph a of 4-1: General Terms and Conditions and Clause 2-1: Inspection and Acceptance, if the Supplier fails or refuses to correct thedefects or nonconformance, the Postal Service may:
•Acquire replacement supplies or services from other sources atthe Supplier's expense
•Accept the supplies or services at a reduced price
Repeated delivery of nonconforming products or services must not beallowed. In such cases, the Purchase/SCM Team should take appropriateaction, such as rejecting delivery and having the rejection documented in theSupplier's performance record.
Acceptance with Limitations
Acceptance with limitations occurs when products or services partiallyconform to the contract specifications or criteria, nonconformities remain thatcan be worked around, or part of the deliverable is accepted (or the wholedeliverable is conditionally accepted). If the Postal Service accepts withlimitations, the contract must be modified.
The Purchase/SCM Team may not accept products or services wherenonconformance adversely affects a basic contract objective unlessacceptance is clearly in the Postal Service's interest and acceptable to theClient. The Purchase/SCM Team's decision to accept these products orservices must be put in writing by the Contracting Officer (who must alsomodify the contract) and be based on:
•Information on the nature and extent of the nonconformance
•Advice of technical specialists that the material is safe to use andwill perform its intended purpose
•The Supplier's request for acceptance of the product or service
•A recommendation for acceptance by the intended user, withsupporting rationale
•Appropriate monetary or other considerations
The Purchase/SCM Team may accept minor nonconformities (e.g., defects).When minor nonconforming products or services are accepted, theContracting Officer need not modify the contract to provide for appropriateconsideration, unless:
•It appears that the savings to the Supplier in fabricating thenonconforming products or performing the nonconformingservices exceed the cost to the Postal Service of processing andenforcing a modification
•The Postal Service's interests otherwise require a contractmodification
Clause 4-1: General Terms and Conditions and Clause 2-1: Inspection andAcceptance address postacceptance Postal Service rights and Supplierobligations.
Other Topics Considered
Shipping topic, Complete Delivery task, Process Step 4: Deliver and ReceiveRequirements
Receipt and Inspection topic, Complete Delivery task, Process Step 4: Deliver and Receive Requirements
Clauses
Clause B-4: Variation in Quantity
Clause B-5: Certificate of Conformance
Clause 2-1: Inspection and Acceptance
Clause 2-6: Delayed Acceptance
Clause 2-23: Reimbursem*nt - Postal Service Testing
Clause 4-1: General Terms and Conditions
Clause 4-5: Inspection of Professional Services
