PUBLIC LAW 86-682-8EPT. 2, 1960
form best calculated to invite competitive bidding. The Postmaster General may reject any and all bids. A contract may be awarded only to the lowest responsible bidder tendering full and sufficient guaranties to the satisfaction of the Postmaster General of his ability to perform satisfactory service. § 6428. Limitation on rate payable for transmission of mail by mechanical devices Until December 31, 1960, the Postmaster General may not pay a rate of more than $15,500 a year for each mile of double line pneumatictube facilities in the city of New York, N. Y. Thereafter the annual rate of expenditures per mile may not exceed $12,000. This rate includes maintenance expenses but excludes all operating expenses. § 6429. Transfer of mail contracts A contractor holding a contract for the transportation of mail may not sublet, assign or transfer his contract without the consent in writing from the Postmaster General. Whenever the Postmaster General determines that a contractor has sublet, assigned or transferred his contract without consent, he shall consider the contract as breached and may again advertise the service as provided by law. The contractor and his sureties are liable to the United States for damage resulting to the United States from the termination of the contract. § 6430. Settlements with subcontractors If the holder of a contract for the transportation of mail lawfully sublets his contract or lawfully employs other persons to perform the service covered by the contract or any part thereof, he shall file in the Department a copy of his contract with those persons. Upon receipt of the contract, the Postmaster General shall withhold the amount fixed therein as compensation to the subcontractor from the amount due to the original contractor, and pay the subcontractor under the rules and regulations governing payments made to original contractors. Upon satisfactory evidence that the original contractor has paid off and discharged the amount due under his contract to the subcontractor, the Postmaster General shall settle with the original contractor. § 6431. New contract with subcontractors If a contractor or subcontractor sublets his contract for the transportation of the mail for a sum less than that for which he contracted to perform the service, the Postmaster General, whenever he deems it for the good of the service, may cancel the contract. The Postmaster General may enter into a contract with the last subcontractor to perform the service under the terms of his subcontract. The original contractor may not be released from his contract until a good and sufficient bond has been made by the new contractor and accepted by the Postmaster General. When a contract is cancelled under this section the contractor is not entitled to indemnity therefor. § 6432. Lien on compensation of contractor (a) A person who— (1) performs service for a contractor or subcontractor in the transportation of mail; (2) files his contract for service with the Department; and (3) files satisfactory evidence of performance with the Department shall have a lien on money due the contractor or subcontractor for the service.