WASHINGTON, D.C. - The United States Postal Service has awarded Amtrak a new two-year contract to carry more mail, says Amtrak's Chief Operating Officer Stan Bagley in a letter to employees.
The new contract involves 43 trains and 42 stations and includes strategies to tighten security in the post-9/11 environment. The base contract is for $80 million per year, which does not include overflow volumes. "And, as in the past, we can and will exceed the base amount if Amtrak remains a responsive and reliable contractor," says Bagley.
The agreement permits the ten Postal Services Distribution Networks the authority to request additional services without awaiting USPS headquarters approval.
The new contract also specifies higher penalties whenever Amtrak fails to live up to tight contract requirements. This means Amtrak must ensure equipment is in good condition, switch moves are made promptly, all mail is scanned, and routing is accurate.
