News

December 15, 2011

US Postal Service Files Final Proposed Rules on Service Standards for Market-Dominant Mail Products (Federal Register /Vol. 76, No. 241 /Thursday, December 15, 2011 / Proposed Rules 77947)

Today the US Postal Service filed its final proposed rules on the Service Standards and Network Optimization changes for Market Dominant Mail Products. The public and mailing industry has until February 13, 2012 in which to file comments about the proposed rules. On December 05, 2011 the Postal Service filed for an Advisory Opinion with the Postal Regulatory Commission (PRC) seeking their opinion on the proposed rule changes. The NAPM is reviewing both filings and will be preparing responses and comments to each.

It is our recommendation to the membership to keep your clients informed about the changes going on with the Postal Service. Collect their feedback about any impacts these changes are having and use them to provide comments to the PRC, responses/comments to the Federal Register Notices, your state and national political representatives, and to the NAPM so that we can provide industry wide concerns with our responses. Even though the NAPM will file comments and responses on behalf of the presorting industry we encourage each of you to file your own separate ones as well; many can speak much louder than one.

To obtain a copy of the Federal Register Notice click on the link: Federal Register Notice 2011-32009

Or you can also get at the USPS Postal Explorer website: (http://pe.usps.gov/FederalRegisterNotices.asp). It should be available by Friday, December 16, 2011.

December 13, 2011

Statement on Delay of Closing or Consolidation of Post Offices and Mail Processing Facilities

The U.S. Postal Service, in response to a request made by multiple U.S. Senators, has agreed to delay the closing or consolidation of any Post Office or mail processing facility until May 15, 2012. The Postal Service will continue all necessary steps required for the review of these facilities during the interim period, including public input meetings. The Postal Service hopes this period will help facilitate the enactment of comprehensive postal legislation. Given the Postal Service’s financial situation and the loss of mail volume, the Postal Service must continue to take all steps necessary to reduce costs and increase revenue.

Concurrently, members of the US Senate made an announcement regarding the agreement.

[WASHINGTON, D.C.] – Fifteen Senators from around the country today announced that, at their request, the U.S. Postal Service has voluntarily agreed to put in place a five-month moratorium on closing postal facilities, which would give Congress more time to enact postal reform legislation. During the moratorium, scheduled to end on May 15, 2012, the Postal Service will continue to study the impact of proposed closures on service and costs and to solicit community input.

Today’s announcement follows a meeting yesterday between several Senators and the U.S. Postmaster General Patrick Donahoe and the U.S. Postal Service Board of Governors Chairman Thurgood Marshall, Jr., in which Senators expressed concern over the impact of reduced service and the loss of thousands of jobs.

On September 15, 2011, the U.S. Postal Service announced plans to review its mail processing network in the hopes of reducing costs. The Postal Service is currently considering the elimination of overnight delivery and studying the possibility of closing 3,700 mostly rural post offices and 252 mail processing facilities.

For a copy of the Senate announcement click on the link: SENATORS-ANNOUNCE-U

The NAPM also received the communication below from the Postal Service indicating it plans to continue with its studies and rulemaking process during the delay period.

Association Executives:

I’m writing to make you aware of an agreement that was made earlier today between the US Postal Service and multiple U.S. Senators to delay the closing of post offices and mail processing facilities until May 15, 2012.

Please be aware that while facility closings will be delayed, the Postal Service will continue with all of the efforts necessary to fully review facilities previously announced as part of our study. As part of this review, we intend to continue to conduct both industry outreach meetings and public meetings. In addition, the Postal Service intends to continue with the rulemaking process and to participate in the service change proceedings before the PRC. It is premature to speculate on what we will do or when we will implement any changes to our service standards until these processes have unfolded

December 07, 2011

Postal Groups Request Withdrawal of Exigent Rate Case

December 05, 2011, four postal associations have asked U.S. Postmaster General Patrick Donahoe to withdraw the U.S. Postal Service’s request for a $2.3 billion exigent postage increase for 2012. The four groups — The Direct Marketing Association; the Association for Postal Commerce 9; Alliance of Nonprofit Mailers; and MPA-The Association of Magazine Media — sent a letter today to Donahoe, saying the request for an exigent postage increase would be above the announced inflation-capped postage increases scheduled for Jan. 22, 2012. The letter begins with one word: Perplexed.

The letter goes on to describe the industry’s perplexity due to the PMG’s mixed messaging about the exigent case, “we have heard you say repeatedly that you do not want an exigent price increase; an exigent increase will not occur; and mailers should budget for 2012 price increases at the CPI level, because a larger increase would be self-defeating due to its negative effects on mail volume,” and yet the USPS “has continued to file pleadings and signed statements with the Postal Regulatory Commission in Docket No. R2010-4 claiming that the Service still seeks a $2.3 billion exigent increase.” Under the current circumstances, “the only prudent course for mailers is to assume that the Postal Service is still seeking commission approval of an exigent rate increase in this docket, and that an increase approved by the commission may very well be implemented by the Board of Governors” states the 4 associations.

In their request the 4 groups stated, “If you do not want an exigent increase and you do not want mailers to plan for one, withdraw the case. Actions speak louder than words. Unless and until the Postal Service publicly withdraws its formal request for Commission approval of exigent rate increases, mailers must assume that the Postal Service is serious about seeking them. For the good of the Postal Service and the mailing community, we urge you to pull the exigent request.”

(see) Four Postal Groups Request Withdrawal of Exigent Rate Case; 3:46 PM, By Jim Tierney, Multichannel Merchant, http://multichannelmerchant.com/printchannel/postal/postal-groups-request-withdrawl-exigent-rate-case-1205jt1/

December 05, 2011

USPS Files Proposed Rules for Service Standards Changes and Network Optimization with PRC

On December 5, the Postal Service filed a request with the Postal Regulatory Commission (PRC) for an advisory opinion on proposed changes to mail service standards. The Postal Service also will seek public comment on proposed service standard changes for various mailing services products through a notice in the Federal Register. This action follows the solicitation of public comment on service standard changes previously published on September 15 along with numerous outreach efforts to the mailing community.

The most significant revisions would eliminate the expectation of overnight service for significant portions of First-Class Mail and Periodicals; however, there would be an opportunity for mailers who properly prepare and enter mail at the designating processing facility prior to the day’s critical entry time to have their mail delivered the following delivery day. In addition, the 2-day delivery range would be modified to include 3-digit ZIP Code origin-destination pairs that are currently overnight, and the 3-day delivery range also would be expanded.

These revisions would allow for a significant rationalization of the Postal Service’s mail processing and transportation networks. The Postal Service is completing the facility reviews using the well-established Area Mail Processing guidelines, which will continue as announced in September.

Supporting documents such as the proposed rule, an illustrative Service Standard Directory (SSD), and illustrative labeling lists are just a few of the requested documents that will be available on the Mailer Information website. By Thursday, December 8, the website (http://about.usps.com/news/facility-studies/welcome.htm) and RIBBS will be updated with documents and links supporting this announcement

December 02, 2011

Mailers Technical Advisory Committee Meeting (MTAC) – Nov 30 and Dec 01, 2011

The Postmaster General’s Mailers’ Technical Advisory Committee (MTAC) is a venue for the United States Postal Service (the Postal Service) to share technical information with mailers and to receive advice and recommendations from mailers on matters concerning mail-related products and services in order to enhance customer value and expand the use of these products and services for mutual benefit. MTAC is comprised of mailers, mail service providers, mail supply chain providers (e.g. logistics, software/hardware vendors, etc…) and mail industry associations who meet as specialized work groups to develop recommendations, or attend the quarterly general session to track the progress of workgroups and hear the Postal Service’s strategic plans and current statuses. The meetings held November 30 and December 01 marks the end of the quarterly sessions for 2011.

The following are the Key MTAC Issues for the NAPM membership:

Postmaster General Update on Key Issues

The PMG addressed the exigency rate filing and indicated that the industry does not need to worry about it from a rate perspective, and should be budgeting for 2012 based on the CPI filing that was approved. PMG Patrick Donahoe also addressed the MTAC on the key concerns for the USPS to becoming operationally and financially viable for the future. The PMG indicated he needs the industry’s support of the legislative proposals to help the Postal Service. He would like everyone to reach out to their representatives to encourage them to push for and support these bills.

The PMG also discussed the network optimization effort telling the MTAC members that the USPS was “all ears” in working on the plans for the initiative. PMG Donahoe stated whether at the national or at the local level the USPS is opened to the views of its stakeholders. He [Donahoe] wants to ensure that “nothing falls through the cracks so we can provide excellent service while getting costs out of the system.”. Mr Donahoe also discussed the Postal Service’s decision to hire Evercore, which he described is a bankruptcy firm that restructures financial situations. “We have to look at our finances in the short and long term,” he said, “what things we need to work on internally, and present that information not just from the USPS’ perspective but from a third party perspective.” Donahoe said, “One reason we did this is because as we’ve talked with people on the Hill, our unions, and stakeholders, it helps to have someone validate what you think so you are saying the right thing, and someone who has been through these processes can speak from a level of authority so everyone can agree on the facts being presented.”

COO Megan Brennan – First Quarter Service Performance “Unacceptable”

While the service standards for first class presorted mail has been very good, COO Brennan indicated the standards for other classes (Periodicals, Standard) has been “lousy” and the USPS is working diligently to address the issues. Not offering excuses, Ms. Brennan indicated some hiccups in the FSS implementations (that the USPS accelerated deployment of) as well as an unexpected spike in the fall mailings season, which she said was a good thing, has contributed to some of the issues the USPS is addressing. If you are experiencing service related issues you should contact your local (district) BSN representative to report your problems.

Ms. Brennan also addressed the concerns and what the USPS was doing to remedy them regarding the Mail Transport Equipment (MTE) supplies. If you are experiencing problems with obtaining MTE supplies (trays, containers, etc…) then you can also report this through your BSN and there is a national number/email you can use to report your issues (866-330-3404 or hqmte@usps.gov). You can contact your local business mail acceptance office to find out who your BSN is.

Network Optimization and Service Standard Changes

On December 5, 2011 the USPS will be filing the final rule proposal for the Service Standard changes and the Network Optimization process. This will be filed concurrently with the Postal Regulatory Commission (PRC) and in the Federal Register (FR). Comments to the FR filing will be 60 days so we need to have all of your concerns/comments submitted around early February 2012. The comment period to the PRC is significantly shorter, usually one to two weeks. So we will need to collect your concerns as quickly as possible. Your comments and concerns should not only be from your own business perspective but you should collect the concerns of your client’s as well. As always, the NAPM will send out requests (through the listserve) to supply your comments and issues so that we can consolidate for an official response by the NAPM. You should also file individual comments (and recommend your clients do so as well) through the PRC and Federal Register feedback processes.

For information on the list of facilities to be studied and how you can remain up to date on the major changes ahead we suggest you save the following link from the USPS web site to your “Favorites” and check it frequently: http://about.usps.com/news/facility-studies/welcome.htm

For direct communications with the USPS via email go to: industryfeedback@usps.gov

Mail Delivery based on In-Home Date requests

As was sent in a previous memo from the NAPM, the USPS stated that it will no longer be processing mail based on In-Home Date requests made by the mailer or placarded on the containers of mail. The USPS has a responsibility to report its service performance to the PRC. Service measurement starts with the entry of mail to the USPS mail stream based on the Critical Entry Times (CET) identified for the class of mail. The USPS will processes mail for delivery based on when it is entered at the postal facility and will no longer hold mail to meet some requested in home delivery date. For more details please refer to the announcement sent via the listserve on Saturday, December 3, 2011.

Industry Feedback – Pulse of the Industry was moderated by Phil Thompson and consisted of the following panels by Mail Class: Sharon Harrison – First-Class Mail/Expedited Services Erv Drewek – Periodicals Wendy Smith – Package Services Steve Colella – Standard Mail

First Class Mailing Industry MTAC Committee

The First Class Mail (FCM) MTAC Leadership committee met with USPS officials on Tuesday, November 29th to discuss what the industry and Postal Service can do to increase the value propositions for First Class mail. The FCM leadership committee collects issues and concerns from First Class mailers and reports these issues to the MTAC Executive Leadership and works collaboratively with the USPS to address the issues. In this meeting with the USPS, they discussed several postal initiatives regarding future business capabilities (Digital Mail, Hybrid Mail, Leveraging Intelligent Mail for additional transactions e.g. payment). They also discussed other recommendations regarding the USPS’ role in hybrid or digital mail being made by the Postal Service’s OIG (Office of the Inspector General) and the GAO (US General Accounting Office).

The FCM Leadership committee agreed that it beneficial to work together with the Postal Service to try and find ways to grow or at least retain (slow down erosion) of First Class mail through incentives in using First Class mail. The FCM group indicated to the USPS that there are currently 3 mailing issues around using First Class mail; Acceptance processes, Rigidity around Move Update compliance, and Return Mail. While these were the top issues mentioned, there was also concern raised about the Service Standard changes and the consistency of delivery that will probably be a growing issue in time. There was also discussion around the need to get the mail user feedback on this committee. In many cases these committees do not have enough mail “owner” representation or feedback. It was agreed that both the USPS and the industry suppliers need to find better ways to collect the concerns of the mail owners and get that information to the MTAC and the USPS. In addition, there was a concerned raised about the lack of representation or capability to engage the “small business” mailer at the MTAC and the various committees. An action was developed by the FCM leadership committee to develop a structure to address these concerns. The structure would consist of a FCM leadership role that interacts with the MTAC executive leadership, an advisory role(s) comprised of association and industry representatives, and establishment of industry focus group roles that would serve as the communications conduit between the mail owners, service providers, and supply chain users.

After some additional discussions around developing value proposition ideas, it was decided that while we could continue to stimulate creative thinking on new ideas, we should begin by collecting information on the “pain points” or barriers to using first class mail. The FCM leadership will reach out to the various industry associations to survey their members and gather opinions on these barriers. Subsequent surveys will be conducted to solicit innovative thinking on value propositions for first class mail. The NAPM will be reaching out to our members for their ideas, concerns and recommendations to provide in support of this committee.

For all the details on the MTAC Session go to the RIBBS at: https://ribbs.usps.gov/index.cfm?page=mtac Look under Important Links and select MTAC Meeting Minutes

The NAPM urges everyone to keep informed on the events occurring and make sure that you express your concerns to the USPS regarding how you may be impacted. You should also send your comments, thoughts, concerns, or ideas to the NAPM Executive director at bob,galaher@presortmailer.org so they are represented in NAPM responses to the USPS.

October 28, 2011

Industry Alert by the USPS

Mailing Industry Stakeholders:

Postmaster General Pat Donahoe issued a letter and video today to assure mailers that the Postal Service is not going out of business or be privatized.The Postal Service plays a vital role in America’s economy and society. This past year USPS delivered 167.6 billion pieces of mail and sustains a $1 trillion mailing industry that employs 8 million people.

This communication will bring you the up-to-date steps the Postal Service is taking on the legislative, network optimization and wages and benefits frontsto ensure the financial health of USPS now and in years to come.  The PMG continues to urge Congress to allow the move from six-day delivery schedule to five days per week.  On the retail front, the USPS is studying whether to close up to 3,700 retail facilities,and we continue to consolidate delivery routes. USPS is also developing a proposal to adjust service standards and Critical Entry Times for First-Class and Periodicals to allow the streamlining of the mail processing network.

This is a very important message that needs to be shared with your members and co-workers.  Please feel free to distribute and post on your website.

Please click the link to view the video and letter (http://about.usps.com/news/electronic-press-kits/pmg/welcome.htm).  Also,the video can be downloaded for your convenience.

Susan M. LaChance

Vice President Consumer and Industry Affairs

October 18, 2011

Postal Service Adjusts Mailing Services Prices for 2012

Penny Increase in Price of Forever Stamps First Since May 2009

WASHINGTON — Beginning early next year, it will cost just a penny more to mail letters to any location in the United States, the first price change for First-Class Mail stamps (Forever stamps) in more than two and a half years. The new 45-cent price for Forever stamps is among price changes filed with the Postal Regulatory Commission today.

Highlights of the new single-piece First-Class Mail pricing, effective Jan. 22, 2012, include:

• Letters (1 oz.) – 1-cent increase to 45 cents
• Letters additional ounces – unchanged at 20 cents
• Postcards – 3-cent increase to 32 cents
• Letters to Canada or Mexico (1 oz.) – 5-cent increase to 85 cents.
• Letters to other international destinations – 7-cent increase to $1.05

Prices also will change for other mailing services, including Standard Mail, Periodicals, Package Services and Extra Services. Today’s announcement does not affect Express Mail and Priority Mail prices. More information on the new pricing is available at: http://about.usps.com/news/national-releases/2011/pr11_factsht_pricechng_1018.pdf.

The overall average price increase is small and is needed to help address our current financial crisis,” said Postmaster General Patrick Donahoe. “We continue to take actions within our control to increase revenue in other ways and to aggressively cut costs. To return to sound financial footing we urgently need enactment of comprehensive, long-term legislation to provide the Postal Service with a more flexible business model.”

While actual percentage price increases for various products and services varies, the overall average price increase across all mailing services is capped by law at 2.1 percent, the rate of inflation calculated based on the Consumer Price Index.

For business mailers, today’s announcement offers good news for First-Class Mail Presort mailers. When the new prices go into effect on Jan. 22, the second ounce for presorted letters will be free. “This gives companies expanded opportunities to advertise new services and products to their customers as part of bill and statement mailings,” said Paul Vogel, president and chief marketing/sales officer.

Link to PRC Filing:  Notice of Rate Adjustment Final PRC Filing long version with appedices: Notice of Rate Adjustment Final with Appendices

October 4, 2011

The National Association of Presort Mailers submitted recommendations for enabling a streamlined acceptance processes to the postal service’s MTAC leadership and it’s work group 143 sponsors. Since inception, the MTAC work group 143 (Streamline Acceptance) has experienced difficulties defining what “streamline acceptance” is and what the scope of the work group should entail. Several participants from different mailing industry supplier segments submitted positions on the work group objectives and overall initiative goals.  The NAPM decided it prudent to get the position of our members on record and submitted our position statement to the USPS MTAC leadership.

To summarize, the NAPM identified the business concerns we felt were important for USPS to address, we also offered recommendations on how we believe a “verification” model for a streamlined process should work, and we emphasized the need for proper incentives so that the costs of implementing this new process would be shared by all not passed onto the mailers.

The NAPM is here to represent the views and concerns of its membership. If you have concerns or issues you want to express regarding a streamline acceptance process please contact the Executive Director by phone or email. To view the statement in entirety access the link below:

NAPM on Streamline Acceptance

September 27, 2011

Intelligent Mail Package Barcode (IMpb) Implementation for Commercial Parcels

• Resolve the pre-funding of Retiree Health Benefits (RHB)
• Return the $6.9 billion overfunding of the Postal Service’s obligations to the Federal Employees’ Retirement System (FERS)
• Grant the Postal Service the authority to determine delivery frequency
• Allow the Postal Service the flexibility to restructure its healthcare and pension systems
• Permit the streamlining of pricing and product development

• Streamlining our Network of mail processing facilities
  • Going from 508 processing locations today to approximately 200
  • Reduction of career employee complement by 35,000 positions
  • Potential annual savings of $3 billion
• Modifying Delivery routes (apart from five-day delivery)
  • Involves eliminating approximately 20,000 city routes out of 144,000
  • Reduction of employee complement by 22,000 positions
  • Potential annual savings of $2 billion
• Retail network changes
  • Reviews of Post Offices; total of 15,000 offices will be reviewed
  • Potential annual savings of $1.5 billion
  • Enhancing and expanding alternate access sites, including Village Post Offices and usps.com
  • Exploring franchising
• Modifying service standards
  • Revision of First-Class Mail (FCM) service standards and entry times
  • FCM Standards move from 1-3 days to 2-3 days
  • Allows for longer operating windows, which means less equipment needed, fewer facilities needed, and fewer work hours used.

• Simplify the process and supporting documentation
• Standardize the process across eDoc methods
• Update scenarios to match system capabilities
• Add full-service scenarios and criteria for on-boarding full-service mailers

• eDoc and Full Service Authorization
• FAST Authorization
• Full-Service Data Feedback Authorization

1. The first notes that, among other things: (1) mailers or mail service providers must submit a hardcopy, nonaddressed sample of the mailpiece, showing the placement of the mobile barcode, when mailings are presented for acceptance and verification….” and (2) mailers should also retain a copy of the sample mailpiece. To see a copy of this DMM Advisory, click here: Mobile Barcode Promotion Requirement to Submit Sample Mailpiece.
2. The second expressly notes that a separate postage statement is not required for each mail owner with mailpieces that are participating in the Mobile Barcode Promotion but notes further that mailers of commingled, co-mailed and combined mailings that include mailpieces that are participating in the Mobile Barcode Promotion must include at least two postage statements, one covering nonparticipating mailpieces and one, or more, additional postage statements covering the mailpieces that are participating in the promotion. To see a copy of this DMM Advisory, click here: Mobile Barcode Promotion Eligibility Clarification.
3. The third notes that while mailers currently have the option of using either the April 2011 or June 2011 postage statements, to participate in the Mobile Barcode Promotion (and other new pricing options) mailers will have to use the June 2011 postage statements.   To see a copy of this DMM Advisory, click here: Postage Statements Update.

1. address (a) the statutory retiree health benefit pre-funding payments and (b) the overfunding of the Postal Service’s portion of both the Civil Service Retirement System and the Federal Employees Retirement System, and
2. allow the Postal Service to move to five-day delivery to street addresses.