Release of contractors

§ 6425. Release of contractors (a) The Postmaster General, in the interest of the postal service, may readvertise and make new contracts for the transportation of mail in order to release contractors and their sureties when— (1) a change is ordered in the service involving a material increase or decrease in the amount of service required to such an extent as to impose undue hardship on the contractor; (2) an abnormal or sustained increase in the quantity of mail develops during a contract period or after a bid has been submitted necessitating larger capacity equipment to maintain the service; (3) a change in schedule is ordered that will necessitate the contractor being away from the initial terminal for an excessively longer or shorter period than required in the advertised schedule; or (4) the contractor complies with subsection (b) of this section and it is found, after full investigation, that the compensation of the contractor is wholly inadequate and that the continuation of the contract would impose undue hardship upon the contractor. (b) A contractor who desires to be released from his contract under the fourth condition of subsection (a) of this section shall give 90 days’ notice to the Postmaster General and waive any extra pay provided under his contract or by law as indemnity for cancellation.