[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.
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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