The US Postal Service can now offer alternatives to banning bad contractors

The US Postal Service changed its rules for banning contractors who perform poorly or break rules. It can now offer alternatives to outright suspension or debarment, like requiring a contractor to improve their processes or pay a fine.

Before this change, the Postal Service had a blunt tool: either ban a contractor or don't. This meant that for minor issues, or when a contractor was critical but underperforming, the agency had limited options. Now, it can negotiate specific improvements or penalties, which could keep more contractors working while still addressing problems. This could make it easier to manage its supply chain without completely cutting ties with vendors.