[Federal Register Volume 67, Number 158 (Thursday, August 15, 2002)]
[Proposed Rules]
[Pages 53328-53329]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20665]


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POSTAL SERVICE

39 CFR Part 111


Firm Pieces in Presorted Bound Printed Matter Mailings

AGENCY: Postal Service.

ACTION: Clarification.

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SUMMARY: This document clarifies and responds to comments on the mail 
preparation standards for Presorted Bound Printed Matter (BPM) mailings 
that include individually addressed firm pieces. 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) 
composited into a single addressed mailpiece.

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

SUPPLEMENTARY INFORMATION: On April 24, 2002, the Postal Service 
published in the Federal Register (67 FR 20074) a request for comment 
on the Domestic Mail Manual (DMM) eligibility and mail preparation 
standards for firm pieces in Presorted BPM mailings. The notice sought 
comment on the application of the existing rules; it did not propose 
any change to the DMM.
    The Postal Service received comments from four printers, two mail 
owners, and two presort software vendors. Several of the comments 
received were outside the scope of the notice. Four commenters included 
a statement that they were opposed to the change or ``proposal.'' 
However, the notice was clarifying and not proposing to change any DMM 
eligibility or mail preparation standards.
    Two commenters stated that they are in agreement with the current 
standards and that no changes are necessary, as long as all BPM mailers 
are required to meet the standards for both mail preparation (based on 
the characteristics of the mailpiece) and destination entry rate 
eligibility (based on the entry of the mailpiece).
    BPM irregular parcels weighing less than 10 pounds have essentially 
the same preparation standards as flats: they must first be prepared 
into presort destination packages (e.g., secure multiple addressed 
pieces destined for the same 3-digit ZIP Code together in a 3-digit 
package), as appropriate, prior to sacking and palletization. Several 
commenters insisted that the Postal Service granted exceptions to this 
preparation in the past.
    BPM standards were completely rewritten with industry participation 
for R2001-1 implementation on January 7, 2001. The USPS pointed to how 
the new standards would reduce postal processing costs, help mitigate 
future postage rate increases, and make it easier to determine when BPM 
mailings are not prepared properly for the rates claimed. For BPM to be 
eligible for Presorted rates, pieces must be presorted into destination 
packages to the finest extent possible, with each presort destination 
package containing a minimum of two addressed pieces. BPM mailings not 
prepared in accordance with these standards are not eligible for 
Presorted rates and, thus, are also not eligible for destination entry 
rates (like Standard Mail preparation). The exception is that BPM 
irregular parcels placed directly in 5-digit scheme or 5-digit sacks or 
on 5-digit scheme or 5-digit pallets are not required to be first be 
secured together in 5-digit presort destination packages. Machinable 
parcels placed on 5-digit scheme or 5-digit pallets and BMC pallets 
also do not require presort (destination) package preparation.
    One commenter stated that the Postal Service could use small parcel 
and bundle sorters (SPBSs) to sort single individually addressed firm 
pieces to 5-digit destinations. This scenario is not possible in all 
cases because not all SCFs have SPBSs. The most efficient way for the 
Postal Service to process parcels to the 5-digit level is to sort 
machinable parcels on bulk mail center (BMC) parcel sorting machines 
(PSMs). Irregular parcels, such as BPM firm pieces, that do not meet 
the machinable criteria for processing on PSMs are more costly to sort 
as individual pieces and are therefore required to be placed in presort 
destination packages to minimize piece distribution costs. Parcels 
placed on 5-digit scheme, 5-digit, and optional 5-digit metro pallets 
do not have to meet machinability criteria for PSMs because they would 
by-pass that operation and avoid the piece distribution costs.
    One commenter stated that pieces of Standard Mail flats may, at the 
mailer's option, be grouped together to create a BPM irregular parcel, 
thus allowing them to be mailed at BPM rates, which are less than if 
each component were mailed individually at Standard Mail rates. The 
Postal Service agrees with this option, provided the mailer then 
secures these BPM pieces together in accordance with the required mail 
preparation standards for the BPM rates claimed (i.e., presort 
destination packages are required).
    A majority of BPM firm piece preparation results in the creation of 
irregular parcels weighing less than 10 pounds each (as described in 
DMM M722.1.1). Although BPM irregular parcels are flat in shape, they 
generally exceed the flat sorting machine maximums for flat-size piece 
processing in thickness (3/4 inch) as defined in DMM C050. Processing 
of individual machinable BPM parcels is performed at BMCs and, in 
limited situations, at auxiliary service facilities (ASFs), but not in 
sectional center facilities (SCFs). Four commenters stated that because 
the Postal Service permits Periodicals mailers to prepare firm pieces 
and to use a ``firm'' optional endorsement line to identify them, it 
should also be permitted in BPM mailings. Unlike the rates for 
Periodicals mail, BPM presorted rates are not structured to accommodate 
firm piece preparation and the costs associated with processing single 
addressed pieces (except for machinable parcels) claimed at a Presorted 
rate. Periodicals rates place greater emphasis on the pound rate 
portions (advertising and nonadvertising), whereas BPM rates place 
greater emphasis on the addressed piece rate portion.
    Use of a firm optional endorsement line (OEL) is practical only 
with Periodicals mailings, since those firm pieces are not permitted to 
be physically secured with other pieces within a presort destination 
package. Including firm pieces within presort destination packages of 
BPM when mailers rely solely on OELs for labeling of presort 
destination packages does not accommodate two possible destinations 
within a presort destination package (e.g., firm and 5-digit). If the 
firm piece were the top piece in a presort destination package, it is 
likely that the entire package would be delivered to the address on 
that firm piece. One commenter stated that requiring the use of facing 
slips in lieu of OELs is counterproductive. The Postal Service simply 
suggested facing slips as means of overcoming the above scenario.
    One commenter asked if the increase in maximum weight for a BPM 
piece was considered. The increase in weight limits for BPM mailpieces 
occurred October 5, 1997, more than three years before R2000-1 
implementation on January 7, 2001.
    Three commenters stated that they run a ``pre-pass'' to determine 
the

[[Page 53329]]

number of addresses receiving multiple components. Upon completion, the 
mailing job is then split into two mailings: one consisting of the 
multiple component pieces prepared as a machinable parcel mailing, and 
a second (separate) mailing of single component pieces prepared and 
mailed as flats or irregular parcels. As confirmed by one presort 
software vendor, firm piece preparation (if prepared as flats or 
irregular parcels requiring further packaging) creates a problem since 
it would be necessary to put a package (firm piece) into another 
package (presort destination), followed by the sacking or 
palletization. Additionally, the commenter stated that this preparation 
contributes to presort documentation and Mail.dat/PostalOne issues. 
These concerns have been brought to the attention of Business Mail 
Acceptance and Business Customer Support Systems.
    One commenter said that the Postal Service has allowed single firm 
pieces in BPM mailings since January 7, 2001 (either through exception 
or unknowingly), and, therefore, the Postal Service should continue to 
do so. For the reasons stated here and in the April 24, 2002, Federal 
Register notice, the Postal Service cannot support this request.
    Based on the comments, many mailers seem to believe that any BPM on 
SCF or finer pallets is eligible for DSCF entry. To clarify, BPM flats 
and BPM irregular parcels weighing less than 10 pounds are eligible for 
DSCF entry only as follows:
    Pieces in 5-digit and 3-digit presort destination packages placed 
in 5-digit, 3-digit, and optional SCF sacks (DMM M722.2). Presort 
destination packages placed in 5-digit, 3-digit, and optional SCF 
sacks, then placed onto 5-digit, optional 3-digit, SCF, and ASF pallets 
(DMM M045.3.3). Pieces in 5-digit and 3-digit presort destination 
packages only placed directly onto 5-digit scheme, 5-digit, optional 5-
digit metro, optional 3-digit, SCF, and ASF pallets (DMM M045.3.3). 
Mail on ASF pallets (DMM L602) outside of the plant's SCF service area 
(DMM L005) is eligible for DBMC rates.
    Any further consideration of allowing firm piece preparation in 
Presorted BPM mailings of flats and irregular parcels can be given due 
consideration only as part of a future rate case.

    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.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-20665 Filed 8-14-02; 8:45 am]
BILLING CODE 7710-12-P