Failed sent mail messages not retrying

We are seeing a number of failed e-mail messages out of IFS.  We are on Apps 10 UPD16.

The error we are seeing on the outgoing messages is “SMTP Send Failed Exception, concurrent connection limit exceeded.”.  We are checking the limits allowed though exchange.

Our issue is that in IFS connect the settings we have against MAIL_SENDER1 is MAX RETRIES = 60 and RETRY INTERVAL = 60.  

With these settings in IFS Connect I think the Failed application messages should be retried every 60 seconds on 60 attempts, but this does not appear to be happening.

Any assistance hear would be appreciated.