[Federal Register Volume 67, Number 12 (Thursday, January 17, 2002)]
[Proposed Rules]
[Pages 2388-2390]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-1272]


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 111


Realignment of Buffalo and Pittsburgh Postal Facilities for 
Deposit of DBMC Rate Standard Mail and Package Services Machinable 
Parcels

AGENCY: Postal Service.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This proposed rule amends the Domestic Mail Manual (DMM) to 
realign permissible points for mailer deposit of Standard Mail 
machinable parcels and Package Services machinable parcels currently 
taken to the Buffalo, New York, Auxiliary Service Facility (ASF), and 
claimed at destination bulk mail center (DBMC) rates. The proposed rule 
would require such mail to be taken to and postage calculated from the 
Pittsburgh Bulk Mail Center (BMC) to qualify for the DBMC rates.

DATES: Comments must be received on or before February 19, 2002.

ADDRESSES: Written comments should be mailed or delivered to Manager, 
Mail Preparation and Standards, USPS, 1735 N Lynn Street, Arlington, VA 
22209-6038. Copies of all written comments will be available for 
inspection and photocopying between 9 a.m. and 4 p.m., Monday through 
Friday, in the Library, Postal Service Headquarters, 475 L'Enfant Plaza 
SW., Washington, DC 20260-1540.

FOR FURTHER INFORMATION CONTACT: OB Akinwole, (703) 292-3643; or Cheryl 
Beller (202) 268-5166.

SUPPLEMENTARY INFORMATION:

Background

    Currently machinable and nonmachinable parcels deposited at the 
Buffalo ASF are eligible for destination bulk mail center (DBMC) rates 
if the applicable preparation standards are met (e.g., pieces are 
prepared in 5-digit containers or Buffalo ASF containers) and the 
pieces deposited are addressed for delivery within the ZIP Code range 
of the Buffalo ASF service area as defined in DMM E650, Exhibit 5.1 and 
E751, Exhibit 1.3. For the DBMC rates, that service area currently 
comprises destination 3-digit ZIP Code prefixes 130 through 136 and 140 
through 149. All machinable parcels and nonmachinable parcels entered 
at the Buffalo ASF are sorted manually by the Postal Service to the 
first three digits of the delivery address ZIP Codes. They are then 
transported to sectional center facilities (SCFs) in Rochester, 
Syracuse, Elmira, and Utica. At the SCFs the parcels are sorted by 5-
digit ZIP Code to the associated delivery offices and subsequently 
transported to those delivery offices.
    In contrast to this manual operation in Buffalo, machinable parcels 
entered at the Pittsburgh BMC are sorted on parcel sorting machines 
(PSMs) and finalized to 5-digit ZIP Codes in the 130-136 and 140-149 
range in one or two passes. Sorted parcels destined for the Buffalo ASF 
service area are then transported directly from the Pittsburgh BMC to 
the appropriate SCFs for cross docking to the delivery offices without 
further sortation at the SCFs. Approximately 31 percent of the parcel 
volume now handled by the Pittsburgh BMC is destined for the Buffalo 
ASF service area ZIP Codes and, of that volume, nearly 90 percent is 
sorted to 5-digit ZIP Codes on the PSMs.
    The diversion of machinable parcels from the Buffalo ASF to the 
Pittsburgh BMC is generally not the result of redirection of that 
volume by the Buffalo ASF. Almost since the inception of the DBMC entry 
rate, most drop shippers have deposited machinable parcels and some 
nonmachinable parcels destined for the Buffalo ASF service area at the 
Pittsburgh BMC, either under a 1995 Postal Service exception letter or 
at the direction of the Buffalo ASF.
    In order to calculate postage for these diverted parcels, some 
mailers depositing machinable parcels at the Pittsburgh BMC zone their 
mail from the Buffalo ASF, and others zone their mail from the 
Pittsburgh BMC. Since 1993, the Buffalo ASF has received extremely few 
drop shipments of machinable parcels. In fact, current records indicate 
that more than three years have passed since the Buffalo ASF has 
received any drop shipments.
    Officials at the Pittsburgh BMC confirm that mailers are making 
appointments and dropping machinable parcels destined for the Buffalo 
ASF service area at the Pittsburgh BMC rather than the Buffalo ASF. 
This arrangement coincides with the fact that western New York is not 
an originating site for parcel shippers, and the volume that is 
destined for Buffalo generally originates outside the local area by 
mailers who are also likely to have parcels destined for the Pittsburgh 
BMC service area.
    Facility restrictions at the Buffalo ASF also make it desirable 
that the Postal Service redirect machinable parcels from Buffalo to 
Pittsburgh. The Buffalo ASF lacks sufficient space to handle a large 
volume of parcels. Additionally, since it does not have PSMs even 
machinable parcels must be handled in manual operations.
    Moreover, if the current parcel diversion were stopped, the cost to 
process the 21.5 million parcels annually that would shift from the 
Pittsburgh BMC to the Buffalo ASF would greatly increase because 
additional work hours would be required at the downstream SCFs within 
the Buffalo ASF to sort the parcels to the five-digit delivery offices. 
As previously noted, these parcels are currently finalized to 5-digits 
at the Pittsburgh BMC. At the same time, there would be no reduced 
transportation costs for the Postal Service between Pittsburgh and 
Buffalo because the volume of Standard Mail, not Package Services mail, 
primarily determines the number of daily trips between the two 
facilities.

Effective Date

    The Postal Service is proposing that the following revisions become 
effective March 31, 2002. Mailers are permitted to enter mail under the 
revised standards immediately upon publication of the final rule with 
required compliance by June 1, 2002.

Proposed Changes

    Under the proposed realignment, all machinable parcels claiming 
DBMC rates for Standard Mail, Parcel Select, and Bound Printed Matter 
for ZIP Codes currently listed under the Buffalo ASF service area in 
DMM L602 would be

[[Page 2389]]

entered, by mailers, at the Pittsburgh BMC. Machinable parcels for 
those ZIP Codes claimed at DBMC rates, would be sorted to the 
Pittsburgh BMC, rather than the Buffalo ASF, using DMM Labeling list 
L601. This processing is currently done by the Pittsburgh BMC.
    In addition, mailers would be permitted, as an option, to deposit 
nonmachinable parcels, at non DBMC rates, for the Buffalo ASF service 
area ZIP Codes listed in DMM labeling list L602 at the Pittsburgh BMC 
if the parcels were commingled in bedloads with the DBMC rate 
machinable parcels deposited at the Pittsburgh BMC. Mailers would 
continue to claim DBMC rates for the following types of mail deposited 
at the Buffalo ASF for delivery to Buffalo ASF service area ZIP Codes 
as prescribed in DMM E650, Exhibit 5.1 and E751, Exhibit 1.3:
     Parcel Post nonmachinable parcels not commingled in DBMC 
bedloads with machinable parcels.
     Parcel Select perishables.
     Bound Printed Matter flats and irregular parcels.
     Standard Mail flats, irregular parcels, and letters.
    Under this proposal, Standard Mail, Parcel Select, and Bound 
Printed Matter machinable parcels sorted to 5-digit ZIP Codes within 
the Buffalo SCF service area, as defined in DMM L005, would still be 
required to be entered at Buffalo to qualify for the DSCF rate. 
Standard Mail machinable parcels claimed at DSCF rates and entered at 
Buffalo would continue to be eligible for a parcel barcode discount.
    As part of this proposal, machinable and nonmachinable parcels--
both Parcel Post and Bound Printed Matter--would be zoned from the 
Pittsburgh BMC using Postal Service zone chart 150. Barcoded machinable 
parcels for the Buffalo ASF service area would also be eligible for the 
parcel barcode discount when entered at the Pittsburgh BMC. The Postal 
Service believes that this realignment of ZIP Codes for DBMC rate 
eligibility between the Pittsburgh BMC and the Buffalo ASF will provide 
consistent customer service and promote the most efficient and cost-
effective method for processing machinable parcels for mailers and for 
the Postal Service.
    The Postal Service also believes that this proposal will eliminate 
any confusion concerning the applicable standards for the deposit of 
DBMC machinable parcels in the affected service areas.

List of Subjects in 39 CFR Part 111

    Administrative Practice and Procedure, Postal Service.

PART 111--[AMENDED]

    1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 3001-
3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
    2. Amend Domestic Mail Manual (DMM) modules E and L as follows:

Domestic Mail Manual (DMM)

* * * * *

E  ELIGIBILITY

* * * * *

E600  Standard Mail

* * * * *

E650  Destination Entry

* * * * *
5.0  DBMC DISCOUNT

5.1  Definition

    [Amend Exhibit 5.1 by showing realignment of eligible destination 
ZIP Codes for machinable parcels for the Buffalo ASF and Pittsburgh BMC 
entry facilities to read as follows:]
* * * * *

----------------------------------------------------------------------------------------------------------------
             Eligible destination ZIP Codes                                   Entry facility
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                               *
130-136, 140-149 [Except machinable parcels]...........  ASF BUFFALO NY 140.
150-168, 260-266, 439-447 [Except machinable parcels]..  BMCPITTSBURGH PA 15195.
130-136, 140-168, 260-266, 439-447 [Machinable parcels   BMC PITTSBURGH PA 15195.
 only or machinable parcels combined with bedloaded
 nonmachinable parcels].
 
*                  *                  *                  *                  *                  *
                                               *
----------------------------------------------------------------------------------------------------------------

* * * * *

5.5  Additional Standards for Machinable Parcels

    [Amend 5.5a by adding the phrase ``except as shown in Exhibit 5.1'' 
to the second sentence to explain when sortation of parcels to ASFs is 
optional to read as follows:]
* * * * *
    a. Destination BMC/ASF Containers. Machinable parcels palletized 
under M045 or sacked under M610 may be sorted to destination BMCs under 
L601 or to destination BMCs and ASFs under L601 and L602. When 
machinable parcels are sorted to both destination BMCs and ASFs under 
L601 and L602, they qualify for DBMC rates under 5.2. Except as 
provided in Exhibit 5.1, sortation of machinable parcels to ASFs is 
optional but is required for the ASF mail to be eligible for DBMC 
rates. * * *
* * * * *

E700  Package Services

* * * * *

E750  Destination Entry

E751  Parcel Select

* * * * *
1.0  BASIC STANDARDS
* * * * *

1.3  Definition

    [Amend Item and Exhibit 1.3 by showing realignment of eligible 
destination ZIP Codes for machinable parcels for the Buffalo ASF and 
Pittsburgh BMC entry facilities to read as follows:]
* * * * *
    b. Except as provided in Exhibit 1.3, pieces deposited at each BMC 
or ASF must be addressed for delivery within the ZIP Code range of that 
facility.

[[Page 2390]]



----------------------------------------------------------------------------------------------------------------
             Eligible destination ZIP Codes                                       Entry
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                               *
130-136, 140-149 [Except machinable parcels]...........  ASF BUFFALO NY 140.
150-168, 260-266, 439-447 [Except machinable parcels]..  BMCPITTSBURGH PA 15195.
130-136, 140-168, 260-266, 439-447 [Machinable parcels   BMC PITTSBURGH PA 15195.
 only or machinable parcels combined with bedloaded
 nonmachinable parcels].
 
*                  *                  *                  *                  *                  *
                                               *
----------------------------------------------------------------------------------------------------------------

* * * * *

E752  Bound Printed Matter

* * * * *

2.0  Destination Bulk Mail Center (DBMC) Rates

* * * * *

2.3  Presorted Machinable Parcels

    [Amend 2.3 by adding the phrase ``except as shown in Exhibit 
E751.1.3'' to the third sentence to read as follows:]
    Presorted machinable parcels in sacks or on pallets at all sort 
levels may claim DBMC rates. Machinable parcels palletized under M045 
or sacked under M722 may be sorted to destination BMCs under L601 or to 
destination BMCs and ASFs under L601 and L602. Except as provided in 
Exhibit E751.1.3, sortation of machinable parcels to ASFs is optional 
but is required for the ASF mail to be eligible for DBMC rates. * * *
* * * * *

L  Labeling Lists

* * * * *

L600  Standard Mail and Package Services

L601  BMCs

    [Amend L601 by revising items to read as follows:]
* * * * *
    a. Standard Mail machinable parcels except ASF mail (other than 
mail for the Buffalo ASF service area) prepared and claimed at DBMC 
rates. Machinable parcels for the Buffalo ASF service area prepared and 
claimed at DBMC rates must be sorted to the Pittsburgh BMC.
* * * * *
    c. Bound Printed Matter machinable parcels except ASF mail (other 
than mail for the Buffalo ASF service area) prepared and claimed at 
DBMC rates. Machinable parcels for the Buffalo ASF service area 
prepared and claimed at DBMC rates must be sorted to the Pittsburgh 
BMC.
* * * * *
    e. Parcel Post except for ASF mail (other than mail for the Buffalo 
ASF service area) prepared and claimed at DBMC rates and nonmachinable 
BMC Presort or OBMC Presort rate mail. Machinable parcels for the 
Buffalo ASF service area prepared and claimed at DBMC rates must be 
sorted to the Pittsburgh BMC. Nonmachinable parcels for the Buffalo ASF 
service area claimed at DBMC rates may be sorted to the Pittsburgh BMC 
if bedloaded and presented with machinable parcels.
* * * * *

L602  ASFs

    [Amend L602 by revising L602a, L602c, and L602e to read as 
follows:]
    L602 defines the service area by individual 3-digit ZIP Code prefix 
for Standard Mail and Package Services mail that must be sorted to 
ASFs.
    Use this list for:
    a. Standard Mail machinable parcels if ASF mail (other than mail 
for the Buffalo ASF service area) is prepared and claimed at DBMC 
rates. Machinable parcels for the Buffalo ASF service area prepared and 
claimed at DBMC rates must be sorted to the Pittsburgh BMC under L601.
* * * * *
    c. Bound Printed Matter machinable parcels if ASF mail (other than 
mail for the Buffalo ASF service area) is prepared and claimed at DBMC 
rates. Machinable parcels for the Buffalo ASF service area prepared and 
claimed at DBMC rates must be sorted to the Pittsburgh BMC under L601.
* * * * *
    e. Parcel Post machinable parcels if ASF mail (other than mail for 
the Buffalo ASF service area) is prepared and claimed at DBMC rates. 
Machinable parcels for the Buffalo ASF service area prepared and 
claimed at DBMC rates must be sorted to the Pittsburgh BMC under L601. 
Nonmachinable parcels for the Buffalo ASF service area claimed at DBMC 
rates may be sorted to the Pittsburgh BMC under L601 if bedloaded and 
presented with machinable parcels.
* * * * *
    An appropriate amendment to 39 CFR part 111.3 to reflect these 
changes will be published if the proposal is adopted.

Stanley F. Mires,
 Chief Counsel, Legislative.
[FR Doc. 02-1272 Filed 1-16-02; 8:45 am]
BILLING CODE 7710-12-P