[Federal Register Volume 68, Number 126 (Tuesday, July 1, 2003)]
[Notices]
[Pages 39159-39161]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-16596]


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POSTAL SERVICE


NCOA\Link\ (National Change of Address Linkage System) Product

AGENCY: Postal Service.

ACTION: Notice.

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SUMMARY: The United States Postal Service has developed the NCOA\Link\ 
secure dataset product that will enable mailers to update name and 
address mailing lists with customers' new mailing addresses prior to 
mailing in a manner which will increase the security of postal customer 
data and further protect the privacy of this information. This does not 
represent a change in address policy. Rather, this increases the 
security of address information. The Postal Service intends, after an 
appropriate transition period, to replace the current National Change 
of Address (NCOA) and FASTforward[reg] Mailing List Correction (MLC) 
licensed products with NCOA\Link\ licensed products. At this time the 
NCOA\Link\ technology is not supported on Multiline Optical Character 
Reader (MLOCR) platforms, therefore there is no impact to the 
FASTforward[reg] MLOCR licensed service. Beginning July 1, 2003, 
interested parties may apply for NCOA\Link\ product licenses. Effective 
October 1, 2003, the usage of the NCOA\Link\ product will be recognized 
as an additional method for mailers to meet the USPS Move Update 
requirements in order to obtain First-Class Mail automation and 
Presorted discounts.

EFFECTIVE DATE: July 1, 2003.

FOR FURTHER INFORMATION CONTACT: Contact the Move Update Department--
NCOA\Link\ Group at the Postal Service National Customer Support Center 
at (800)-589-5766; or John Boyce at (901) 681-4666; or Charles Hunt at 
(901) 681-4651; or Wayne Orbke at (901) 681-4658.

SUPPLEMENTARY INFORMATION: Mailers will be able to process a mailing 
list using NCOA\Link\ and update the mailing addresses on the list with 
permanent change-of-address (COA) information using secure data store 
technology. This technology process results in no human-readable 
address information being represented within the NCOA\Link\ product. 
Therefore it provides a very high level of security for customer-filed 
COA information and significantly strengthens the ability of the Postal 
Service to exercise appropriate oversight of the information. The 
introduction of NCOA\Link\ does not change, in any way, Postal Service 
policies or usage restrictions regarding change-of-address information. 
This new product will be available under license from the Postal 
Service and will be available both to individual mailers and to service 
bureaus.
    This product enables the Postal Service to make available a pre-
mailing address correction service in a format that is not a clear text 
address list, but is instead a mathematical formulation. As a result, 
mailers can potentially integrate the NCOA\Link\ product into their own 
in-house computer technology and have the ability to update address-
specific information for mailings during their business operations.

[[Page 39160]]

    As with the Postal Service's current NCOA and FASTforward[reg] 
products, in order for a mailer to obtain updated address information 
from the NCOA\Link\ product, it must already possess names and old 
addresses that will be matched against it. The NCOA\Link\ product, due 
to the inherently secure data store technology employed, cannot be used 
to create mailing lists.
    Improving the security and quality of mailer address information 
benefits all parties, including the customer, the mailer and the Postal 
Service. Customers benefit from the added security of their address 
information, and the increased accuracy of delivery, so that mail is 
not delivered to the wrong address. A mailer benefits by managing 
correct address information for its customers, reducing mailing costs 
and other significant business costs associated with handling 
inaccurate address information. The Postal Service benefits from 
reduced volumes of undeliverable-as-addressed mail and decreased 
processing and handling costs for such mail. By creating and licensing 
the NCOA\Link\ product for updating mailing lists, the Postal Service 
is expanding the scope of its ongoing efforts to reduce the volume of 
undeliverable-as-addressed mail and add security to address 
information.
    Commencing on July 1, 2003, the Postal Service will begin accepting 
applications for new NCOA\Link\ Licensees. To ensure that no service 
disruption will occur, existing NCOA and FASTforward[reg] MLC licensees 
will be provided transition periods to migrate to the new NCOA\Link\ 
system. The Postal Service intends to discontinue support for NCOA on 
September 30, 2004, and FASTforward[reg] MLC on September 30, 2005. The 
Postal Service may elect to extend these dates. The Postal Service 
proposes to enter into non-exclusive, annually renewable NCOA\Link\ 
license agreements with approved mailers and service bureaus no earlier 
than October 1, 2003, or such later date as the Postal Service may 
designate. Additionally, on July 1, 2003, software developers may apply 
to be an authorized NCOA\Link\ software interface developer. All 
NCOA\Link\ applications may be obtained by writing to: Move Update 
Department--NCOA\Link\ Group, National Customer Support Center, United 
States Postal Service, 6060 Primacy Parkway Suite 201, Memphis TN 
38188-0001.

Categories of NCOA\Link\ Product Licensees

    The Postal Service will license the NCOA\Link\ product in three 
categories: Full Service Providers, Limited Service Providers, and End-
User Mailers. The license fees have been established with the goal of 
enabling the Postal Service to recover actual and anticipated costs for 
developing, supporting, and administering the NCOA\Link\ product in the 
marketplace. The categories are described as follows:

1. Full Service Provider

    A Full Service Provider is a licensee that uses the NCOA\Link\ 
product to update mailing lists, most of which are owned by unrelated 
third parties. The Postal Service will require Full Service Providers 
to also implement service using other Address Quality tools designated 
by the Postal Service (e.g. Delivery Point Validation, Locatable 
Address Correction System (LACS)). The Postal Service will provide the 
Full Service Provider with a forty-eight month NCOA\Link\ product COA 
dataset which will be updated on a weekly basis. A Full Service 
Provider will pay a $175,000.00 base annual license fee to the Postal 
Service.

2. Limited Service Provider

    A Limited Service Provider is a licensee that uses the NCOA\Link\ 
product for updating either its own mailing lists or mailing lists 
owned by third parties. The Postal Service will provide the Limited 
Service Provider with an eighteen month NCOA\Link\ product COA dataset 
which will be updated on a weekly basis. The Limited Service Provider 
will pay a $15,000.00 base annual license fee to the Postal Service.

3. End-User Mailer

    The End-User Mailer is a licensee that uses the NCOA\Link\ product 
to update mailing lists for its own mailings. The End-User Mailer may 
not update mailing lists for third parties. The Postal Service will 
provide the End-User Mailer with an eighteen month NCOA\Link\ product 
COA dataset which will be updated on a monthly basis. The End-User 
Mailer will pay a $7,500.00 base annual license fee to the Postal 
Service.
    The Postal Service may adjust all license fees in all categories 
after the first year of the license agreement.

NCOA\Link\ Product Usage at Multiple Locations (Sites)

    In order for any category of licensee to use the NCOA\Link\ product 
at more than one of its sites, the licensee must pay the Postal Service 
an additional annual site license fee of one-half the base annual 
license fee for each additional site that they wish to use the 
NCOA\Link\ product.

Existing NCOA and FASTforward[reg] MLC Licensees Transition

    The initial licensing term for all categories of the NCOA\Link\ 
product will begin on October 1, 2003 and expire on September 30, 2004.
    During the initial licensing term and until the discontinuation of 
NCOA, which is also on September 30, 2004, NCOA licensees who apply and 
are authorized, in addition to their NCOA license fees, will pay a 
transition base annual license fee of $25,000.00 to obtain the 
NCOA\Link\ product for use as a Full Service Provider at one site, plus 
a transition site license fee of $12,500 for each additional site at 
which they will use the NCOA\Link\ product. After the expiration of the 
initial NCOA\Link\ license term, full license fees set by the Postal 
Service will be due for the NCOA\Link\ product.
    Different from NCOA, FASTforward[reg] MLC will be supported an 
additional year until September 30, 2005. However, the transition 
licensing fees noted below shall only apply to the initial licensing 
term of the NCOA\Link\ product.
    During the initial licensing term, FASTforward[reg] MLC licensees 
who apply and are authorized to be Limited Service Providers shall, in 
addition to their FASTforward[reg] MLC fees, pay a transition base 
annual license fee of $5,000.00 to use the NCOA\Link\ product at one 
site, plus a transition site license fee of $2,500 for each additional 
site at which they will use the NCOA\Link\ product.
    During the initial licensing term, FASTforward[reg] MLC licensees 
who apply and are authorized to be End-User Mailers shall, in addition 
to their FASTforward[reg] MLC fees, pay a transition base annual 
license fee of $2,500.00 to use the NCOA\Link\ product at one site, 
plus a transition site license fee of $1,250.00 for each additional 
site at which they will use the NCOA\Link\ product prior to October 1, 
2004.
    After the expiration of the initial NCOA\Link\ license term, full 
license fees set by the Postal Service will be due for both the 
NCOA\Link\ product and for FASTforward[reg] MLC until its 
discontinuation the following year.
    The Postal Service will treat existing NCOA and FASTforward[reg] 
MLC licensees that do not apply for NCOA\Link\ product licenses prior 
to September 30, 2004, as new applicants for the NCOA\Link\ product. 
The Postal Service will require these applicants to pay the same 
license fees and satisfy the same application requirements as other new 
applicants. Accordingly, the license fees described above that are

[[Page 39161]]

effective during the transition period will not be available to these 
existing NCOA and FASTforward[reg] MLC licensees.
    The above transition examples illustrate how license fees would be 
handled when a current licensee applies for an NCOA\Link\ category that 
is the equivalent to its current licensee status. However, current NCOA 
and FASTforward[reg] MLC licensees may apply for any license category 
which they may be qualified for and if approved, by paying the 
applicable new license fee. Detailed qualification criteria for each 
category of NCOA\Link\ licensee is available from the Move Update 
Department--NCOA\Link\ Group, National Customer Support Center at (800) 
589-5766.

Authorized NCOA\Link\ Software Interface Developer

    Software developers may apply to provide NCOA\Link\ interface 
software products to the mailing industry. If approved and after the 
execution of an NCOA\Link\ developer's license agreement along with the 
receipt of an initial year $5,000.00 license fee, the Postal Service 
will provide the interface developer with a Software Developer's Kit 
(SDK) to be used in accordance with the terms and conditions set forth 
in the license agreement. The license fee includes testing and 
certification of a single platform. Additional platform certifications 
or any subsequent testing due to performance failures noted during the 
testing will be assessed at an additional $1,000.00 fee. After the 
NCOA\Link\ interface software has been tested and approved by the 
Postal Service it will be officially certified for the specific 
software platform tested. In subsequent years the developer's license 
may be renewed for a $1,000.00 fee which includes testing and 
certification of a single platform. Additional platform certifications 
or any subsequent testing due to performance failures noted during the 
testing will continue to be assessed at an additional $1,000.00 fee. 
The Postal Service must certify the interface developer's NCOA\Link\ 
software before the interface developer may use, sell, or permit third 
parties to use the program.

Commercial Sale of NCOA\Link\ Interface Software

    Software developers must execute a separate commercial sale license 
agreement with the Postal Service in order to market its NCOA\Link\ 
software to any third parties. This license authorizes sales and/or 
distribution activity of the developer's NCOA\Link\ software interface 
for a period of one year for an annual license fee of $25,000.00. This 
fee provides unlimited distribution to Postal Service authorized 
NCOA\Link\ applicants and/or licensees within the terms and conditions 
of the license agreement. An interface developer that has performed in 
accordance with the license agreement may re-apply to sell its 
NCOA\Link\ software for additional one-year terms at the applicable 
license fee and terms set by the Postal Service. An interface developer 
must advise its potential customers that its NCOA\Link\ software cannot 
be used by a party who is not or cannot be licensed by the Postal 
Service to use the NCOA\Link\ product.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-16596 Filed 6-30-03; 8:45 am]
BILLING CODE 7710-12-U