Renewal of contracts

§ 6416. Renewal of contracts (a) The Postmaster General, by mutual agreement with the holder of a star route, contract motor vehicle service or water route contract and without advertising may renew the contract for successive terms, of not more than four years each, at the rate of compensation prevailing at the end of the preceding contract term. The contractor shall give such bond as the Postmaster General requires. (b) If a contractor has sublet the service in accordance with law and does not indicate in writing to the Postmaster General at 74 Stat. 700 least 90 days before the end of the contract term that he desires to renew the contract, the Postmaster General may enter into a contract with the subcontractor then, and for 6 months prior thereto, performing the service under the contract to the satisfaction of the Postmaster General. Contracts made under this subsection— (1) shall be upon the terms prevailing at the end of the preceding contract term; (2) may be made without advertising; and (3) shall be accompanied by such bond as the Postmaster General requires. (c) A contract under this section may be terminated at the end of any four-year term at the option of the Postmaster General or of the contractor, or at any time by operation of law.