Transportation by vessel under noncompetitive contracts

§ 6408. Transportation by vessel under noncompetitive contracts (a) When the Postmaster General deems it necessary to make a new contract for the transportation of mail by vessel on waters, or between ports, of the United States he may contract without advertising for terms of not more than four years at a rate of compensation not to exceed the average compensation paid under the existing contract or under the last preceding contract for the transportation of mail on that route. When there has been no prior contract for the transportation of mail on a route on waters, or between ports, of the United States, the Postmaster General may contract for a term of one year for the transportation of mail on that route without advertising, or for terms of not more than four years after advertising. (b) The Postmaster General may contract for the transportation of all classes of mail by vessel of United States registry on the route from Seward to points on Kanai Peninsula, Kodiak Island, Alaska Peninsula, the Aleutian Islands, Umnak Island, and points on Bristol Bay, Alaska, and vicinity. He may make the contract without advertisement for a term of not more than four years, at an annual cost not to exceed $250,000. The Postmaster General shall require the contractor to furnish and use in the service a safe and seaworthy vessel of sufficient size to provide adequate space for mail, passengers and freight.