Section 1. Short title

This Act may be cited as the Postal Contracting Financial Accountability Act.

Sec. 2. Continued operation of contract postal units

Section 404 of title 39, United States Code, is amended by adding at the end the following new subsection:

(f)

(1)

If the Postal Service makes a determination to terminate or not renew a contract postal unit operation agreement with a covered contractor for a contract postal unit, the covered contractor may, in the sole discretion of the covered contractor, elect to have such contract postal unit operation agreement remain in effect in accordance with this subsection if—

(A)

such determination to terminate or not renew the contract postal unit operation agreement is not primarily or entirely based on the covered contractor breaching such contract postal unit operation agreement;

(B)

the Postal Service has not entered into another contract postal unit operation agreement with the covered contractor for the contract postal unit;

(C)

the covered contractor submits to the Postal Service a notice of such election by the covered contractor; and

(D)

the covered contractor agrees to amend the terms and conditions of the contract postal unit operation agreement in accordance with this subsection.

(2)

(A)

Except as provided by subparagraph (B), a contract postal unit operation agreement that remains in effect pursuant to an election by a covered contractor under paragraph (1) shall have the same terms and conditions as the terms and conditions in effect immediately prior to the date on which, but for such election, the contract postal unit operation agreement would have terminated or ended, and such terms and conditions shall apply in the same manner as such terms and conditions applied immediately prior to such date, except that, after such date, the contract postal unit operation agreement shall—

(i)

not obligate the Postal Service to make any payment to the covered contractor; and

(ii)

remain in effect until—

(I)

the Postal Service terminates the contract postal unit operation agreement for a breach of the contract postal unit operation agreement by the covered contractor; or

(II)

the covered contractor—

(aa)

terminates the contract postal unit operation agreement; or

(bb)

permanently ceases to operate the contract postal unit with respect to which the contract postal unit operation agreement applies.

(B)

(i)

Notwithstanding subparagraph (A), a contract postal unit operation agreement that remains in effect pursuant to an election by a covered contractor under paragraph (1) shall, if determined appropriate by the Postmaster General, require the Postal Service to make payments to the covered contractor with respect to the operation of the contract postal unit with respect to which the contract postal unit operation agreement applies after the date on which, but for such election, the contract postal unit operation agreement would have terminated or ended.

(ii)

The Postmaster General shall determine terms and conditions of any payments the Postal Service is required to make to a covered contractor under a contract postal unit operation agreement pursuant to clause (i).

(3)

If a covered contractor makes the election under paragraph (1) with respect to a contract postal unit operation agreement, the Postal Service shall agree to amend the terms and conditions of the contract postal unit operation agreement in accordance with this subsection.

(4)

In this subsection—

(A)

the term contract postal unit means a facility operated by a covered contractor at which the covered contractor provides retail postal services under a contract postal unit operation agreement;

(B)

the term contract postal unit operation agreement means a contract or other agreement between the Postal Service and a covered contractor under which the covered contractor operates a contract postal unit; and

(C)

the term covered contractor means an individual or entity operating a contract postal unit under a contract postal unit operation agreement.