[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3536 Engrossed in Senate (ES)]
110th CONGRESS
2d Session
S. 3536
_______________________________________________________________________
AN ACT
To amend section 5402 of title 39, United States Code, to modify the
authority relating to United States Postal Service air transportation
contracts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Air Carriage of International Mail
Act''.
SEC. 2. AIR CARRIAGE OF INTERNATIONAL MAIL.
(a) Contracting Authority.--Section 5402 of title 39, United States
Code, is amended by striking subsections (b) and (c) and inserting the
following:
``(b) International Mail.--
``(1) In general.--
``(A) Except as otherwise provided in this
subsection, the Postal Service may contract for the
transportation of mail by aircraft between any of the
points in foreign air transportation only with
certificated air carriers. A contract may be awarded to
a certificated air carrier to transport mail by air
between any of the points in foreign air transportation
that the Secretary of Transportation has authorized the
carrier to serve either directly or through a code-
share relationship with one or more foreign air
carriers.
``(B) If the Postal Service has sought offers or
proposals from certificated air carriers to transport
mail in foreign air transportation between points, or
pairs of points within a geographic region or regions,
and has not received offers or proposals that meet
Postal Service requirements at a fair and reasonable
price from at least 2 such carriers, the Postal Service
may seek offers or proposals from foreign air carriers.
Where service in foreign air transportation meeting the
Postal Service's requirements is unavailable at a fair
and reasonable price from at least 2 certificated air
carriers, either directly or through a code-share
relationship with one or more foreign air carriers, the
Postal Service may contract with foreign air carriers
to provide the service sought if, when the Postal
Service seeks offers or proposals from foreign air
carriers, it also seeks an offer or proposal to provide
that service from any certificated air carrier
providing service between those points, or pairs of
points within a geographic region or regions, on the
same terms and conditions that are being sought from
foreign air carriers.
``(C) For purposes of this subsection, the Postal
Service shall use a methodology for determining fair
and reasonable prices for the Postal Service designated
region or regions developed in consultation with, and
with the concurrence of, certificated air carriers
representing at least 51 percent of available ton miles
in the markets of interest.
``(D) For purposes of this subsection, ceiling
prices determined pursuant to the methodology used
under subparagraph (C) shall be presumed to be fair and
reasonable if they do not exceed the ceiling prices
derived from--
``(i) a weighted average based on market
rate data furnished by the International Air
Transport Association or a subsidiary unit
thereof; or
``(ii) if such data are not available from
those sources, such other neutral, regularly
updated set of weighted average market rates as
the Postal Service, with the concurrence of
certificated air carriers representing at least
51 percent of available ton miles in the
markets of interest, may designate.
``(E) If, for purposes of subparagraph (D)(ii),
concurrence cannot be attained, then the most recently
available market rate data described in this
subparagraph shall continue to apply for the relevant
market or markets.
``(2) Contract process.--The Postal Service shall contract
for foreign air transportation as set forth in paragraph (1)
through an open procurement process that will provide--
``(A) potential offerors with timely notice of
business opportunities in sufficient detail to allow
them to make a proposal;
``(B) requirements, proposed terms and conditions,
and evaluation criteria to potential offerors; and
``(C) an opportunity for unsuccessful offerors to
receive prompt feedback upon request.
``(3) Emergency or unanticipated conditions; inadequate
lift space.--The Postal Service may enter into contracts to
transport mail by air in foreign air transportation with a
certificated air carrier or a foreign air carrier without
complying with the requirements of paragraphs (b)(1) and (2)
if--
``(A) emergency or unanticipated conditions exist
that make it impractical for the Postal Service to
comply with such requirements; or
``(B) its demand for lift exceeds the space
available to it under existing contracts and--
``(i) there is insufficient time available
to seek additional lift using procedures that
comply with those requirements without
compromising the Postal Service's service
commitments to its own customers; and
``(ii) the Postal Service first offers any
certificated air carrier holding a contract to
carry mail between the relevant points the
opportunity to carry such excess volumes under
the terms of its existing contract.
``(c) Good Faith Effort Required.--The Postal Service and potential
offerors shall put a good-faith effort into resolving disputes
concerning the award of contracts made under subsection (b).''.
(b) Conforming Amendments to Title 49.--
(1) Section 41901(a) is amended by striking ``39.'' and
inserting ``39, and in foreign air transportation under section
5402(b) and (c) of title 39.''.
(2) Section 41901(b)(1) is amended by striking ``in foreign
air transportation or''.
(3) Section 41902 is amended--
(A) by striking ``in foreign air transportation
or'' in subsection (a);
(B) by striking subsection (b) and inserting the
following:
``(b) Statements on Places and Schedules.--Every air carrier shall
file with the United States Postal Service a statement showing--
``(1) the places between which the carrier is authorized to
transport mail in Alaska;
``(2) every schedule of aircraft regularly operated by the
carrier between places described in paragraph (1) and every
change in each schedule; and
``(3) for each schedule, the places served by the carrier
and the time of arrival at, and departure from, each such
place.'';
(C) by striking ``subsection (b)(3)'' each place it
appears in subsections (c)(1) and (d) and inserting
``subsection (b)(2)''; and
(D) by striking subsections (e) and (f).
(4) Section 41903 is amended by striking ``in foreign air
transportation or'' each place it appears.
(5) Section 41904 is amended--
(A) by striking ``to or in foreign countries'' in
the section heading;
(B) by striking ``to or in a foreign country'' and
inserting ``between two points outside the United
States''; and
(C) by inserting after ``transportation.'' the
following: ``Nothing in this section shall affect the
authority of the Postal Service to make arrangements
with noncitizens for the carriage of mail in foreign
air transportation under subsections 5402(b) and (c) of
title 39.''.
(6) Section 41910 is amended by striking the first sentence
and inserting ``The United States Postal Service may weigh mail
transported by aircraft between places in Alaska and make
statistical and -administrative computations necessary in the
interest of mail service.''.
(7) Chapter 419 is amended--
(A) by striking sections 41905, 41907, 41908, and
41911; and
(B) redesignating sections 41906, 41909, 41910, and
49112 as sections 41905, 41906, 41907, and 41908,
respectively.
(8) The chapter analysis for chapter 419 is amended by
redesignating the items relating to sections 41906, 41909,
41910, and 49112 as relating to sections 41905, 41906, 41907,
and 41908, respectively.
(9) Section 101(f) of title 39, United States Code, is
amended by striking ``mail and shall make a fair and equitable
distribution of mail business to carriers providing similar
modes of transportation services to the Postal Service.'' and
inserting ``mail.''.
(10) Subsections (b) and (c) of section 3401 of title 39,
United States Code, are amended--
(A) by striking ``at rates fixed and determined by
the Secretary of Transportation in accordance with
section 41901 of title 49'' and inserting ``or, for
carriage of mail in foreign air transportation, other
air carriers, air taxi operators or foreign air
carriers as permitted by section 5402 of this title'';
(B) by striking ``at rates not to exceed those so
fixed and determined for scheduled United States air
carriers'';
(C) by striking ``scheduled'' each place it appears
and inserting ``certificated''; and
(D) by striking the last sentence in each such
subsection.
(11) Section 5402(a) of title 39, United States Code, is
amended--
(A) by inserting ```foreign air carrier'.'' after
```interstate air transportation','' in paragraph (2);
(B) by redesignating paragraphs (7) through (23) as
paragraphs (8) through (24) and inserting after
paragraph (6) the following:
``(7) the term `certificated air carrier' means an air
carrier that holds a certificate of public convenience and
necessity issued under section 41102(a) of title 49;'';
(C) by redesignating paragraphs (9) through (24),
as redesignated, as paragraphs (10) through (25),
respectively, and inserting after paragraph (8) the
following:
``(9) the term `code-share relationship' means a
relationship pursuant to which any certificated air carrier or
foreign air carrier's designation code is used to identify a
flight operated by another air carrier or foreign air
carrier;''; and
(D) by inserting ``foreign air carrier,'' after
``terms'' in paragraph (2).
(c) Effective Date.--The amendments made by this section shall take
effect on October 1, 2008.
Passed the Senate September 26, 2008 (legislative day,
September 17), 2008.
Attest:
Secretary.
110th CONGRESS
2d Session
S. 3536
_______________________________________________________________________
AN ACT
To amend section 5402 of title 39, United States Code, to modify the
authority relating to United States Postal Service air transportation
contracts, and for other purposes.