[Federal Register Volume 67, Number 79 (Wednesday, April 24, 2002)]
[Proposed Rules]
[Pages 20074-20077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10037]


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

POSTAL SERVICE

39 CFR Part 111


Firm Pieces in Carrier Route and Presorted Bound Printed Matter 
Mailings

AGENCY: Postal Service.

ACTION: Request for comment on application of agency rule.

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

SUMMARY: The Postal Service requests comments from the mailing industry 
(especially the presort software industry) as to how Bound Printed 
Matter (BPM) mailings with individually addressed ``firm pieces'' can 
be prepared under current eligibility and mail preparation standards. 
The term ``firm piece'' is generally used to describe a mailpiece that 
consists of more than one component (all destined for the same delivery 
address, which is often a company or business firm) composited into a 
single mailpiece. The existence of firm packages in Periodicals 
mailings is due to separate per-copy and per-addressed piece rates that 
do not exist within other classes of mail. The Postal Service is not 
proposing to change Domestic Mail Manual (DMM) standards in this 
notice.

DATES: Comments must be received on or before May 22, 2002.

ADDRESSES: Written comments should be delivered to the Manager, Mail 
Preparation and Standards, United States Postal Service, 1735 N. Lynn 
St., Room 3025, Arlington, VA 22209-6038. Comments may be transmitted 
via facsimile to 703-292-4058 or via e-mail to [email protected]. 
Copies of all written comments will be available for inspection and 
photocopying at USPS Headquarters Library, 475 L'Enfant Plaza SW, 11th 
Floor N, Washington DC 20260-1450 between 9 a.m. and 4 p.m., Monday 
through Friday.

FOR FURTHER INFORMATION CONTACT: Tom DeVaughan, 703-292-3640; or Marc 
McCrery, 202-268-2704.

SUPPLEMENTARY INFORMATION: On January 7, 2001, the Postal Service 
adopted new standards for Bound Printed Matter (BPM) that formalized 
the packaging and sacking or palletizing of BPM mailings according to 
shape (processing category) and destination entry (if any). These 
standards were incorporated into the Domestic Mail Manual (DMM). At the 
same time, new destination entry discounts were implemented. These 
standards were published for comment in the Federal Register on August 
29, 2000, as part of the proposed DMM changes to implement the R2000-1 
Omnibus Rate Case after extensive meetings with an Implementation 
Readiness Team (IRT) comprised of mailers, printers, publishers, and 
mailer associations. No comments were received on the BPM mail 
preparation standards from the IRT participants or others in the 
industry, and the final rule was published in the Federal Register on 
December 15, 2000.
    After implementation of the new standards on January 7, 2001, the 
Postal Service has been receiving BPM firm pieces in Presorted BPM 
mailings that do not comply with the January 2001 eligibility criteria 
and mail preparation standards for BPM rates. Those standards prescribe 
specific preparation for flats, irregular parcels weighing less than 10 
pounds, irregular parcels weighing 10 pounds or more, and machinable 
parcels. Although the issue may arise with some traditional BPM mailers 
(especially those taking advantage of drop ship incentives), it also 
impacts major printers who print Standard Mail pieces and prepare a 
portion of their mailings as BPM mail. An exhibit is provided at the 
end of this notice to illustrate a firm piece.

Firm Package and Firm Piece Preparation

    Within Periodicals mailings, a ``firm package'' is defined in the 
DMM as two or more copies (pieces) for the same address placed in a 
single package. For presort eligibility and postage calculation, such 
pieces are treated in one of two ways:
     If each copy within the firm package has a delivery 
address, each may be claimed as a separate addressed piece (i.e., the 
number of pieces within the firm package multiplied by the ``piece 
rate'' of postage); or
     The firm package itself may be claimed as only one 
addressed piece.
    In either case, one unit of piece rate postage is paid for each 
addressed piece claimed. A firm package sorted and

[[Page 20075]]

claimed as one addressed piece must be accompanied by (but can be 
physically separate from) other addressed pieces packaged to the same 
presort destination to satisfy the minimum package requirement when 
applicable, regardless of the number of pieces within the firm package.
    Within BPM standards, there is no mention of the terms ``firm 
package,'' ``firm piece,'' and ``firm bundle'' in the DMM. However, 
these terms are used industry-wide in a number of situations to 
describe mailpieces that consist of more than one component composited 
into a single mailpiece addressed to a single delivery point. Within 
this notice, the term ``firm piece'' is used, for discussion purposes 
only, to represent a single addressed piece with one unit of ``piece 
rate'' postage paid.
    Firm piece preparation for BPM mailings existed in the DMM for 
carrier route mailings until June 30, 1996 (DMM Issue 49). It defined a 
``firm package'' like the definition above for Periodicals mailings, 
with one exception. The BPM firm package (for reasons stated below) was 
not permitted to be physically separate from other addressed pieces to 
the same presort destination. DMM Issue 49, M403.3.4 stated:

    A ``firm package'' is two or more pieces for the same address 
placed in one package. If each piece has a delivery address, each 
may be claimed as a separate addressed piece for presort and on the 
mailing statement. The firm package may be claimed as one addressed 
piece for presort and on the mailing statement. If the pieces are 
unaddressed, the firm package is considered as one addressed piece. 
A firm package presorted and claimed as one addressed piece must be 
placed with other addressed pieces to form the minimum volume per 
package regardless of the number of pieces in the firm package.

    Throughout the current DMM the term ``addressed piece'' is used to 
identify a single individually addressed mailpiece bearing evidence of 
postage payment and which, at a minimum, has a unit of ``piece rate'' 
postage paid. An addressed piece can include a firm (composite) piece 
consisting of:
     One addressed piece with one or more unaddressed pieces; 
or
     Two or more pieces each bearing the same delivery address.
    In either case, one unit of piece rate postage is paid for each 
addressed piece. Presort destinations are comprised of a required 
minimum number of addressed pieces or pounds (of addressed pieces), 
whichever occurs first.
    A firm piece is often secured together with shrinkwrap, plastic 
straps, or a combination of the two. The intent of the mailer is for 
the Postal Service to treat the firm piece as a single-addressed 
(composite) piece and deliver it to the delivery address on the top 
piece. The firm piece could be envisioned as the equivalent of multiple 
addressed (or unaddressed) catalogs placed in an addressed carton for 
delivery to the address appearing on the carton (along with evidence of 
postage payment). For the firm piece, the ``mailing container'' 
(carton) is made of shrinkwrap, plastic straps, or both, which makes 
this hybrid piece look like a presort destination package of flats (or 
irregular parcels) that should be opened for distribution at some point 
prior to delivery. The only difference may be the mailer's use of the 
``firm'' optional endorsement line (OEL) identifying the top piece as 
``firm'' (i.e., all pieces in this ``container'' for the same address). 
There currently are no DMM standards for preparing and identifying 
individually addressed firm pieces (packages) using OELs other than 
with Periodicals mailings (DMM M013.1).

Firm Piece Preparation in Bound Printed Matter Mailings

    Some mailers currently use a facing slip affixed to the top of the 
package to indicate that the package is not to be opened and must be 
delivered intact to the address on the top piece. This extra step adds 
production costs for the mailer but helps assure the piece is delivered 
intact. However, the mailer who chooses to count the firm piece as one 
addressed piece saves postage since the firm piece is treated as one 
addressed piece, rather than as individual copies.
    When a typical automated production line is presented with a BPM 
mailing that includes firm pieces, it is not capable of first producing 
and grouping components into firm pieces and then regrouping these firm 
pieces with other individual addressed pieces into appropriate required 
presort destination packages to qualify for the rates claimed. 
Compounding the problem is the fact that the number of component pieces 
comprising a firm piece is likely to vary (e.g., some firm pieces 
consist of nine catalogs, others consist of seven, and others consist 
of 11). Therefore, because each firm piece is reported as (and postage 
is paid as) one addressed piece, the mailings will consist of 
nonidentical-weight pieces that must be accepted under an approved 
postage payment system (manifest mailing system or alternate mailing 
system). In addition, depending on the size (thickness) of the 
individual component pieces, firm piece preparation can lead to some 
firm pieces that fit into two different processing categories (flats 
and irregular parcels). DMM standards do not permit two processing 
categories in the same bulk mailing for any class of mail. So, although 
there is potential for postage savings from the creation of firm 
pieces, production line complications result in improperly prepared 
mailings. Additionally, effective with R2001-1 implementation (June 30, 
2002) and introduction of shape-based categories (i.e., flats and 
parcels) two separate rates will apply to all BPM.
    For Periodicals mailings, the minimums for presort destinations and 
sacking are simple and straightforward: only six addressed pieces for 
package preparation and 24 addressed pieces per sack. By contrast, 
Carrier route and Presorted BPM, the minimums for package and sack 
preparation standards are more complicated. They are based on a minimum 
number of addressed pieces or a minimum weight to the presort 
destination, whichever occurs first (e.g., 10 addressed pieces or 20 
pounds). These required minimums create additional challenges to 
production lines and presort software when BPM pieces and weight from 
``presort destination to presort destination'' vary dramatically within 
the same mailing job. The preparation standards for any particular BPM 
mailing can be checked in the appropriate sections in DMM M700. 
Eligibility standards for destination entry discounts are published in 
DMM E752. The DMM is available online through Postal Explorer at http://pe.usps.gov.

Destination Entry Rate Mailings

    For Carrier Route and Presorted BPM mailings to be eligible for 
destination bulk mail center (DBMC), destination sectional center 
facility (DSCF), and destination delivery unit (DDU) rates, they must 
first meet the required preparation standards based on the physical 
attributes of the (finished) pieces, and then the eligibility standards 
in DMM E752. Unlike Parcel Select mail, single-piece BPM is not 
eligible for destination entry rates. As a result, if individually 
addressed BPM firm pieces (comprised of flats or irregular parcels) are 
not packaged with other pieces to the required presort level prior to 
sacking or palletizing, these individually addressed pieces are not 
eligible for Carrier Route or Presorted rates (as appropriate) and, 
therefore, are not eligible for destination entry rates.
    Single (individually prepared) firm pieces require the Postal 
Service to manually sort the pieces to the appropriate 5-digit 
destination. DSCF rates for Carrier Route and Presorted

[[Page 20076]]

BPM mailings assume pieces are sorted (packaged) in accordance with DMM 
standards, prior to placing into sacks or onto pallets. Therefore, firm 
pieces in the flat-size and irregular parcel (less than 10 pounds) 
category are not permitted as single pieces on pallets or in sacks, 
with the exception of those limited circumstances of the last physical 
package to a carrier route destination or, for presorted, a mixed ADC 
package. The only destination entry rate available for pieces in mixed 
ADC packages is DBMC.

Available Options

    In the past seven months, the Postal Service conducted a series of 
meetings and teleconferences with mailing industry representatives to 
determine how to accommodate firm piece preparation in BPM mailings, 
especially destination entry BPM mailings. The consensus was that firm 
piece preparation within BPM mailings works best when the pieces are 
prepared as machinable parcels. Unless prepared on 5-digit and 5-digit 
scheme pallets or in sacks, machinable parcel preparation may not offer 
the lowest postage rates when compared with rates for destination entry 
mailings of flats and irregular parcels prepared in 5-digit and 3-digit 
presort destination packages first, then placed on 5-digit, 3-digit and 
SCF pallets or in sacks. However, mailers should consider the overall 
total production (nonpostage) costs as well as delivery and 
transportation costs associated with the separate mail preparation 
standards.
    Machinable parcels sorted to BMC pallets and sacks must meet the 
standards in DMM C010.8.0 and M020.1.5b for machinability on BMC parcel 
sorting machines (PSMs). Such parcels bearing a barcode in accordance 
with DMM C850 are entitled to the additional $0.03 discount. Because 
parcels sorted on 5-digit and 5-digit scheme pallets or in sacks are 
not required to meet machinability standards, they would not be 
eligible for this additional $0.03 discount.
    Whenever possible, firm pieces comprised of component pieces 
secured together with shrinkwrap and/or plastic straps should be placed 
at the bottom of each ``logical'' package (the total group of pieces in 
a required presort destination package). In addition to the package 
labeling standards in DMM M020.1.3 (pressure-sensitive labels or OELs), 
firm pieces should bear a facing slip containing instructions such as 
``DO NOT OPEN, ALL FOR ADDRESS ON TOP PIECE'' to ensure that the firm 
piece arrives intact. Firm OELs are permitted only with Periodicals 
mailings. If a logical package consists of only firm pieces (two or 
more), an additional facing slip or label must identify the logical 
package destination (e.g., 5-digit, 3-digit, or ADC). Facing slips must 
contain the same three-line information as for a corresponding sack 
label:
    Line 1: Destination city, SCF, or ADC, as appropriate.
    Line 2: Content [PSVC FLTS or PSVC IRREG].
    Line 3: City and two-letter state abbreviation of origin post 
office.
    All pieces within a BPM mailing must consist of addressed pieces 
within the same processing category: all flats, all irregular parcels, 
or all machinable parcels.
    For the reasons stated above, the Postal Service seeks comments and 
recommendations on the preparation issues arising from firm pieces in 
BPM mailings.

    Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414, 
3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.

Neva R. Watson,
Attorney, Legislative.
BILLING CODE 7710-12-P

[[Page 20077]]

[GRAPHIC] [TIFF OMITTED] TP24AP02.023

[FR Doc. 02-10037 Filed 4-23-02; 8:45 am]
BILLING CODE 7710-12-C