[Federal Register Volume 69, Number 134 (Wednesday, July 14, 2004)]
[Notices]
[Pages 42221-42226]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-15855]


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POSTAL SERVICE


Privacy Act of 1974, System of Records

AGENCY: Postal Service.

ACTION: Notice of new system of records.

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SUMMARY: The Postal Service proposes a new Privacy Act system of 
records. The system of records will apply to a name and address 
directory that the Postal Service plans to license from a commercial 
source, in order to improve the proper barcoding and delivery of mail.

DATES: Any interested party may submit written comments on the proposed 
system of records. This proposal will become effective without further 
notice on August 23, 2004, unless comments received on or before that 
date result in a contrary determination.

ADDRESSES: Please address your comments to the Privacy Office, United 
States Postal Service, 475 L' Enfant Plaza, SW, Room 10433, Washington, 
DC 20260-2200. Copies of all written comments will be available at this 
address for public inspection and photocopying between 8 a.m. and 4 
p.m., Monday through Friday.

FOR FURTHER INFORMATION CONTACT: Privacy Office, United States Postal 
Service, Room 10433, Washington, DC 20260-2200. Phone: 202-268-5959.

SUPPLEMENTARY INFORMATION:

Introduction

    This document publishes notice of a new system of records for the 
Postal Service, USPS 500.100, Address Matching for Mail Processing. The 
new system of records supports a Postal Service program, called the 
Distribution Quality Improvement (DQI) Program, which will use a 
commercially available name and address directory to improve mail 
processing. The purpose of the DQI program is to increase the ability 
of the Postal Service to barcode mail properly in order to ensure 
delivery to the intended address. The Postal Service plans to pilot 
test the program in New York State from September 2004 to Spring 2005, 
then, if successful, deploy the program nationally in or after May 
2005.
    Described below are: (I) The need for and benefits of the DQI 
program; (II) how the pilot test and national deployment will be 
conducted; and (III) the extensive privacy and security controls that 
have been put in place, including how the directory will and will not 
be used. The Postal Service does not anticipate adverse effects on the 
privacy rights of customers resulting from operation of the DQI 
program.

I. Rationale for the DQI Program

Background--Privacy and Technology

    Mail has always been one of the most valuable, effective, and 
trusted means of communication. For more than two centuries, the 
mission of the Postal Service has been the prompt, reliable, and 
efficient delivery of personal and business mail to all communities in 
the nation. As the delivery network has developed and expanded, the 
Postal Service has continuously adapted every major innovation in 
technology, transportation, and communication to provide enhanced 
service to its customers. From the early transportation improvements 
provided by railway Post Offices, to today's technology applications 
such as USPS.com, the Postal Service has a long history of pursuing 
continual improvements to the speed, accuracy, and certainty of mail 
delivery.
    Today, the Postal Service delivers more than 200 billion pieces of 
mail each year to more than 140 million addresses, serving every 
household and business in the country. Every year, approximately 1.9 
million addresses--equivalent in size to the city of Chicago--are added 
to the delivery network. In order to accomplish its mission of 
universal service, the Postal Service operates some of the most complex 
systems and equipment ever developed. The Postal Service delivers more 
mail to more locations, and at a lower price, than any other post or 
delivery network in the world.
    The privacy and security of mail are also at the core of the Postal 
Service brand. Over the course of its history, the Postal Service has 
built a trusted brand with the public. New technology and processes 
continue to be developed that bring added value and customer service to 
the network. As always, the Postal Service will only use technology, or 
adapt that technology, in a way that ensures that the privacy and 
security of the mail and its customers are maintained at the highest 
levels. The current proposal is no exception. The Postal Service has 
carefully analyzed the need, usage, and benefits of the DQI program, 
while establishing procedures that would properly address privacy and 
security needs.

Mail Processing--USPS Databases, Barcodes, and Finest Depth-of-Sort 
(FDOS)

    In order to ensure that the billions of mailpieces it processes are 
delivered accurately, promptly, and cost effectively, the Postal 
Service has developed a sophisticated network and state-of-the-art 
systems to process mail. This section describes the information the 
Postal Service uses, including databases, ZIP CodesTM , and 
barcodes. The next section describes mail processing systems, including 
automation equipment.
    To facilitate accurate delivery, the Postal Service maintains a 
database of addresses known as the USPS Address Management System 
(AMS). AMS contains valid addresses that receive postal delivery. For 
each address, the AMS database includes the following elements: carrier 
number; ZIP Code; city and state; street name; primary address (such as 
house number); and secondary address information (such as apartment or 
suite number), if applicable. Names of large firms are included. Names 
of individuals are not included, except for

[[Page 42222]]

the names of certain customers on rural routes to assist the letter 
carrier with delivery. AMS was developed in the early 1980s by Postal 
Service personnel based on the creation and assignment of ZIP+4[reg] 
codes. Postal Service personnel continue to update AMS today, based on 
new delivery information.
    As first developed and as used today, AMS supports mail processing 
by enabling the Postal Service to barcode mail that does not have a 
barcode printed on it by the mailer. The mail can then be processed on 
automated sorting equipment rather than by manual or mechanized 
operations. Automation improves the efficiency, accuracy, and 
timeliness of mail processing and delivery.
    The process works as follows: To ensure that mail contains a valid 
address for delivery, the automation equipment first reads the address 
on the piece and matches it to the AMS database. The equipment then 
generates and prints a barcode on the mailpiece which contains the ZIP 
Code associated with that address. The ZIP Code printed may be 5, 9, or 
11 digits, as described below, depending on the level of match to AMS. 
The goal is to print the most complete ZIP Code, a code known as the 
finest depth of sort (FDOS). The FDOS ZIP Code is a code that 
represents the most specific delivery point available for a particular 
address. Examples are a single house or an apartment/suite in a 
building. When coded to FDOS, mail can be sorted without any manual 
intervention directly into the sequence in which a letter carrier 
delivers mail (known as a walk sequence).
    The Postal Service assigns ZIP Codes as follows. The familiar 5-
digit ZIP Code describes a geographical area, such as a small town or 
section of a larger town. The ZIP+4 code, a 9-digit ZIP Code, describes 
a much more specific location, often a particular block on a street of 
single family houses, or a particular apartment building in a more 
densely populated area. The Postal Service also uses an 11-digit code, 
which adds two more digits of specificity. FDOS is generally 11 digits, 
but can be 9 digits (in the case of reply mail for certain businesses) 
or very rarely 5 digits, where a very large mail recipient has its own 
unique ZIP Code. Buildings that contain multiple deliveries are 
typically assigned a 9 digit code. If the mailpiece being processed 
contains sufficient information, such as an apartment number, the 
Postal Service is able to match the piece against AMS and print an 11 
digit FDOS ZIP Code to the specific address. If the mailpiece has 
missing or incorrect elements, the 11 digit barcode printed on the 
piece will simply include a default value for the building, so it is 
not coded to FDOS.
    Without a match to AMS that allows an FDOS ZIP Code, the Postal 
Service cannot be certain of the exact address for delivery. Minor 
discrepancies, such as a single missing, mistaken, or illegible 
character, can modify the address enough to prevent FDOS matching. As 
described below, the Postal Service then has to take significant 
additional steps to handle the mailpiece, and there is a greater 
likelihood the mail will be delayed or not delivered to the intended 
address.

Mail Processing--Automation Equipment, Address Recognition Systems, and 
Manual Processing

    Described below is an overview of the systems used to process 
letters. Particular focus is given to address recognition systems, 
where the DQI program will be implemented.
    Each year, the Postal Service processes more than 147 billion 
letters. These mailpieces enter the postal system in one of two ways. 
Approximately 102 billion pieces come in through acceptance units from 
business mailers, and are typically presorted and/or barcoded. This 
mail is sorted on automation equipment known as barcode sorters, and 
does not require processing on address recognition systems. The 
remainder, approximately 45 billion pieces, enters through collection 
systems such as collection boxes and local Post OfficesTM. 
Some of this mail is barcoded to 5, 9, or 11 digits; some of it is not 
barcoded at all. This mail is processed on address recognition systems, 
as follows:
    1. When collection letter mail is processed, automation equipment 
sends an image of the mailpiece to a recognition system known as a 
remote computer reader (RCR). RCR is a completely computer-based system 
that requires no human intervention to perform address matching. Pieces 
already barcoded are sent to the barcode sorters. For nonbarcoded 
pieces, the RCR system attempts to match the address in the image to an 
address in the AMS database. If it completes a match to a sufficient 
level of confidence, a barcode is printed on the mailpiece, and the 
piece is routed using the barcode. If RCR cannot match the address, the 
image is sent offsite to a recognition system known as a Remote 
Encoding Center (REC).
    2. At REC sites, employees review the image and key in information 
from the mailpiece in an attempt to match the address to AMS. If the 
address is matched, a barcode is printed on the mailpiece, and the 
piece is processed using the barcode. If there is no match, the piece 
must be sorted manually.
    3. Manual processing is conducted at several places and levels, 
including originating and destinating Postal Service facilities, as the 
Postal Service tries to route the mailpiece for delivery to the 
intended address. Employees performing manual processing use various 
sources to recognize the address on the mailpiece. These sources can 
include internal information, such as derivations of AMS, as well as 
external information including phone books and maps. From these 
sources, the mailpiece is sorted to the best estimate of the correct 
letter carrier route. The letter carrier will then attempt further 
sorting and delivery. If the address cannot be recognized as one of the 
carrier's delivery addresses, it will go through further processing to 
find the right address. If all efforts are unsuccessful, the mailpiece 
is determined to be undeliverable as addressed. Undeliverable mail is 
reviewed for final processing, either to be forwarded, returned to the 
sender, or discarded, depending on the class of mail and level of 
service requested by the mailer.
    4. Once barcoded, mail is sorted through automation into the walk 
sequence used by letter carriers to complete their routes. If processed 
manually, the letter carrier sorts the mail into the walk sequence at 
the local delivery facility. Through either process, when carriers 
identify errors based on their personal knowledge, they attempt to 
reroute the mailpiece to the correct address.
    Each additional step in address recognition increases the time, 
resources, and costs required for delivery, and the possibility that 
the mail will not be delivered correctly.

The Problem: Remaining Barriers To Further Recognition Improvements

    Since the Postal Service introduced address recognition systems in 
the 1980s, their performance has continuously improved. For example, 
the ability of RCRs to read and match addresses has improved 
dramatically. From 1996 to 2004, RCR performance has improved from 35% 
to 90%. This has reduced the need for REC image processing from a peak 
of 24 billion to around 6 billion images per year. The error rate, 
where mail is coded improperly, has also been reduced.
    To date, the Postal Service has focused on improvements that could 
be accomplished by technology, such as improvements in reading 
characters in the address. The Postal Service has been very successful 
in these efforts, but is now nearing the limits of technological

[[Page 42223]]

improvements. Some addresses can never be matched by existing systems, 
even if the address is read perfectly, because there are problems with 
address elements on the mailpiece. Address elements commonly include 
street names, street directionals (e.g., N, S, E, or W), house numbers, 
or secondary numbers (such as an apartment or suite number). Problem 
addressing can include addresses with missing, incomplete, or incorrect 
address elements, or address elements that are illegible. Other 
problems include address inserts that are misaligned with the 
envelope's window, so that parts of the address elements are hidden. 
Even a single missing or incorrect address element can prevent the 
Postal Service from recognizing the correct address, with potential 
resulting delays, misdeliveries, or nondeliveries. Some of these 
problems with address elements cannot be corrected by technology alone. 
Without the use of additional information, such as the name in the 
address block on the mailpiece, the Postal Service is unable to confirm 
the correct address for delivery.

II. The Pilot Test and National Deployment

    The goal of the Postal Service in implementing the Distribution 
Quality Improvement (DQI) program is to improve its ability to barcode 
mail that is not already barcoded by the mailer, and deliver it to the 
correct address. The Postal Service plans to pilot test the program in 
New York. The purpose of the test is to evaluate the level of 
improvement achieved through the DQI program. If the test is 
successful, the program will be deployed nationally. Described below 
are how the pilot test will be conducted (including pilot sites), 
estimated benefits, and national deployment.

How the Pilot Test Will Be Conducted

    To conduct the pilot test, the Postal Service will license a name 
and address directory from a commercial vendor. The directory will be a 
commercial directory that is currently available in the marketplace. 
The vendor will serve as a subcontractor to an existing Postal Service 
contractor tasked in part to help improve recognition rates. Neither 
the Postal Service nor its contractor will own the commercial 
directory.
    The commercial directory will be maintained in a secure location, 
at a contractor site during the pilot test, and at a Postal Service 
site during any national deployment. At this maintenance site, before 
the directory is deployed to the field, every address in the directory 
will be compared with the AMS database. Using AMS to screen the 
directory before activation ensures that only valid addresses will be 
used and that the directory will be compatible with postal operations 
and mail processing. In order to assure accuracy, this process will be 
repeated on a weekly basis to conform to the most recent AMS database. 
The removal of invalid addresses will be the only result of this 
procedure--no additions or any other modification will be made to the 
directory used in the DQI program. Also, no data in the AMS database or 
other Postal Service databases will be modified in any way through use 
of the commercial directory.
    After this screening, the commercial directory will be installed on 
RCR systems in field processing centers. Once installed, software on 
the RCR system will perform the following steps:
    1. RCR first compares the address from the mailpiece with the AMS 
database, looking for a match to FDOS coding. If there is an FDOS match 
to a sufficient level of confidence, the mail will be processed without 
use of the commercial directory.
    2. If unable to perform such a match, RCR will use the commercial 
directory to try to find the right address. RCR will use the results of 
the insufficient AMS match to retrieve a set of potential name(s) and 
delivery points from the commercial name and address databases. RCR 
then compares the names with the name on the mailpiece, seeking a 
match.
    3. If the name and address on the mailpiece match a name and FDOS 
address from the commercial directory to a sufficient level of 
confidence, then the address verification process is complete. 
Thereafter, the process is the same as without the directory. An FDOS 
barcode is generated and applied using the identical processes for mail 
coded by RCR.
    4. If a match is not found with the commercial directory, the 
result from the initial AMS match will be used, and the mailpiece will 
be processed using existing systems without DQI.
    The following is a hypothetical example of how the DQI program will 
work: Mr. John Doe lives at 123 Main Street S. There is also a 123 Main 
Street N in that city. The Postal Service receives a nonbarcoded 
mailpiece addressed to Mr. John Doe, 123 Main Street. When the piece is 
processed against AMS, the Postal Service cannot tell whether the right 
address is 123 Main Street North or South. Under current processes, the 
Postal Service will attempt to discover the right address through other 
internal or external tools, or through personal knowledge of letter 
carriers, and there is a risk the piece may be routed or delivered 
incorrectly. With the DQI program, when the AMS match fails to produce 
an FDOS result, the Postal Service can confirm a Mr. John Doe lives at 
123 Main Street S, and can barcode and deliver the piece to that 
address.
    The sole purpose of the use of names in the DQI program is to 
confirm delivery to the correct address. The DQI program and directory 
will not be used for any purpose other than improving the barcoding of 
mail that is not being recognized to an FDOS ZIP Code by existing 
systems. DQI will not modify any written or printed address information 
on the mailpiece. No changes will be made to the AMS database or any 
other Postal Service database as a result of this process, nor will any 
information be provided back to the commercial vendor or directory, 
including which addresses have been removed.

Pilot Test--Scope of DQI Program and Test Sites

    The pilot test of the DQI program will apply to mail that is 
processed by postal stations serving New York State. The commercial 
directory will contain only the names and addresses of individuals and 
firms residing in New York. The directory will be installed on an RCR 
system in a processing plant in Manhattan. Mail originating from the 
processing plant and destinating in the State of New York will be 
subject to DQI processing. During the pilot test, the only mail 
eligible for the DQI program will be mailpieces with machine-printed 
addresses.
    New York was chosen because of the size and complexity of the New 
York City area. The New York City area is not only one of the largest 
in the United States, but also one of the most densely populated, with 
a population of more than 7.4 million people and a total area over 300 
square miles. It typifies areas that experience a higher rate of 
mailpieces with unrecognized addresses. Greater rates of unrecognized 
addresses are found in urban areas with densely populated high-rise 
apartments, concentrations of small business firms, street names with 
numeric or single characters, and street names with directionals (e.g., 
N, S, E, or W).

Projected Benefits of the DQI Program

    The goal of the Postal Service is to deliver mail accurately and 
securely to a specific address. For mail that is not barcoded, the 
Postal Service attempts to recognize and barcode the mail so it gets to 
the right address as efficiently as

[[Page 42224]]

possible. The DQI program is expected to improve the rate and accuracy 
of barcoding of this mail, where there are problems with the address. 
This will enhance the certainty, timeliness, and accuracy of mail 
delivery. More mail will be recognized and barcoded to a specific 
intended address, which increases the certainty and speed of delivery. 
The volume of mail that is coded incorrectly should also be reduced. 
This mail may otherwise have been misdelivered unless the letter 
carrier corrects the error from personal knowledge.
    In 2003, the Postal Service processed more than 45 billion letters 
through its address recognition systems. With the DQI program, the 
Postal Service expects to properly code at least a billion more 
mailpieces than it can under current processes, as well as reduce the 
rate of miscoding.
    Proper barcoding increases the certainty that mail will be 
delivered to the correct and intended address. This decreases the 
likelihood of misdelivered mail, which protects the privacy of Postal 
Service customers. By developing and implementing substantial 
safeguards, the Postal Service seeks to improve mail delivery and 
privacy for its customers, while minimizing privacy risks or 
vulnerabilities.

National Deployment

    The pilot test is planned to start in September 2004 and conclude 
in the Spring of 2005. The Postal Service will thoroughly analyze 
results from the pilot test for operational accuracy and performance 
improvements. The test will be considered successful if it raises the 
encoding rate while reducing the error rate. If the expected 
improvements are achieved, the Postal Service plans to deploy the DQI 
program in other regions or nationally in or after May 2005.
    If the pilot is successful, national deployment will occur in 
several stages. First, the program will become national in scope. The 
directory licensed will include names and addresses of firms and 
individuals throughout the country, and will be deployed to RCRs 
nationally. Second, DQI will be expanded from letters to other types of 
mail, including flats and parcels, so the directory will be installed 
on recognition equipment for those mail types. Third, the directory may 
be used on more levels of recognition equipment, not just the initial 
readers. An example is deployment at the Remote Encoding Centers. As 
deployment proceeds, the Postal Service will carefully evaluate the 
success of each stage, and will monitor privacy and system safeguards.

III. Privacy Act System of Records--Safeguards for the DQI Program

    The Postal Service has established a comprehensive system of 
safeguards to protect the privacy and security of the DQI Program and 
commercial directory. The following describes key aspects of the 
Privacy Act system, including controls and limitations over the 
directory, security controls and safeguards, and limitations on 
external disclosures. The notice of the system of records covers both 
the pilot test and any national deployment.

Controls and Limitations for the Commercial Directory

    The commercial directory will be used only for the purposes 
described in this notice and not for any other purpose. The directory 
will only be used to properly recognize and code mail if it cannot be 
successfully recognized to FDOS by existing systems.
    The Postal Service has limited the type of information that will be 
licensed from the commercial source to the minimum necessary to achieve 
its operational goals. The only information contained in the commercial 
directory are the names and addresses of individuals and businesses.
    The Postal Service has established strict controls to limit how 
data will be compared or shared between the commercial directory and 
Postal Service systems. There will be limited interfaces between the 
directory and Postal Service databases. At the maintenance site, the 
directory will be matched against the AMS database to remove invalid 
addresses before deployment. During mail processing, mailpieces will be 
matched against the directory if the match to AMS is less than to FDOS. 
No data will be exchanged as a result of these comparisons. The 
directory will not be used for updating AMS or any other Postal Service 
database. Likewise, no name or address information from any Postal 
Service database, including information about items removed from the 
directory, will be provided back to the commercial directory or vendor.

Security Controls and Safeguards

    The Postal Service will implement the DQI program in a secure 
fashion. The commercial vendor will supply the directory to the 
contractor during the pilot test, and to the Postal Service during any 
national deployment, where it will be kept in a secure maintenance 
facility. Access to information in the directory will be limited to the 
following circumstances and purposes: At the maintenance facility, the 
Postal Service or contractor will access the directory to remove non-
AMS data as described above, as well as to allow the Postal Service to 
respond to requests by individuals for access to information maintained 
about them as required by the Privacy Act. The Postal Service will also 
access the directory in its Engineering Headquarters facility in order 
to test the success of the program. The maintenance and engineering 
facilities are the only two locations where information contained in 
the directory can be accessed by Postal Service or contractor 
employees.
    When the directory is distributed to Postal Service field sites, 
both name and address information will be encrypted. There will be no 
ability to view, query, or modify records in the directory. At all 
times, the directory will be stored in a separate file from Postal 
Service databases. In addition, the directory's name information will 
be stored in a separate file from its address information.
    The directory will only operate on secure systems. Electronic 
transmissions of updates to the directory will be protected by 
encryption and secure access authorization codes.
    To keep information current as well as secure, the Postal Service 
will receive an updated commercial directory periodically, no less 
frequently than every 90 days. The Postal Service will match the 
directory against the AMS database every week to remove invalid 
addresses. The Postal Service will maintain two versions of the 
directory representing 2 weeks of data--the directory for the current 
week, and the directory for the prior week. Every week, when the next 
directory is created, the Postal Service will destroy the older version 
in accordance with its information security policies. The policies 
require degaussing for computer tapes, using zero-bit formatting for 
computer hard drives, and physically destroying floppy disks, CDs, and 
DVD data disks. After these procedures are conducted, previous versions 
will not be retained in any form.

Disclosures

    The Postal Service does not anticipate adverse privacy effects 
resulting from Postal Service disclosures of information from the 
commercial directory. First, such information is commercially 
available. Any entity can obtain information contained in the directory 
from the commercial source. Second, the Postal Service has limited the 
external disclosures, or routine uses, of information from the 
directory.
    For this system of records, the Postal Service will only employ 
seven of the

[[Page 42225]]

nine standard routine uses that it has issued for systems of records 
containing customer information. These customer systems and routine 
uses were published in the Federal Register on December 16, 2002 (67 FR 
77088-77090). The seven routine uses that apply to this system relate 
to the following: (1) Disclosure incident to legal proceedings; (2) 
disclosure to agents, contractors, and partners; (3) disclosure to 
auditors; (4) disclosure for customer service purposes; (5) disclosures 
related to congressional inquiries; (6) disclosure to labor 
organizations; and (7) disclosure for law enforcement purposes. The 
Postal Service may only disclose information from the directory to 
appropriate law enforcement agencies if there are suspected illegal 
activities against the Postal Service, or as required by law. The 
standard routine uses that will not apply concern disclosures related 
to financial transactions, and disclosures to government agencies 
relating to personnel or contractor matters.
    The Postal Service has also added a special routine use for this 
system. The routine use applies when a mailpiece containing a barcode 
applied using the commercial directory is returned to the mailer. This 
may occur if the mailpiece is still not delivered to an address after 
all Postal Service efforts have been exhausted--for instance, if the 
person does not live at that address--and the mailer is entitled to 
return service because the mailpiece was sent First-Class Mail[reg] or 
the mailer otherwise paid for return service. If the mailer has access 
to the Postal Service ZIP+4 database and is familiar with Postal 
Service rules and algorithms for FDOS coding, the mailer may be able to 
determine the specific FDOS ZIP Code from the barcode. The Postal 
Service ZIP+4 database and rules for coding are available to mailers 
for a fee. ZIP Code information, including ZIP+4 codes and FDOS ZIP 
Codes for houses, is also available as part of the ZIP Code lookup Web 
site available on USPS.com, but only on a specific query basis, not as 
a database.
    The Postal Service considers that disclosure of a barcode that 
contains a ZIP Code for an address may not be a disclosure under the 
Privacy Act. However, in the interests of full notice and transparency, 
the Postal Service is issuing a routine use to account for this 
occurrence. The Postal Service considers this an appropriate routine 
use because the Postal Service must honor return service requests. 
Moreover, the Postal Service considers the value of the information to 
be minimal in this circumstance, and the likelihood of such decoding to 
be remote. The information, which is a specific address, not name, is 
likely to be incorrect, since the mailpiece could not be delivered as 
addressed. Also, the mailer would need to train personnel to identify 
DQI mailpieces, and set up processes or equipment to conduct the 
algorithms needed to extract the address from the barcode. These 
processes are not technically practical, and are likely more costly 
than purchasing the same information directly from one of several 
available commercial sources.

Notice of Use of Information From a Third-Party Source

    The system of records described by this notice entails a third-
party source, as the Postal Service has determined that obtaining this 
information directly from the subject individuals is not practical. 
However, the information collected from the third-party source for this 
system shall in no case result in any adverse determination to 
individuals. The Postal Service will ensure that the third-party source 
is informed of the purposes for which the name and address records will 
be used. This is consistent with OMB Guidelines and Privacy Protection 
Study Commission recommendations related to 5 U.S.C. 552a (e)(3).

Summary

    The Postal Service seeks to improve the accuracy and certainty of 
mail delivery. The Postal Service has developed a very sophisticated 
network and equipment to accomplish this result. Based on its extensive 
experience, the Postal Service considers that use of a commercially 
available name and address database, such as proposed for the DQI 
program, is the best method to achieve higher barcoding rates and more 
certain delivery. The Postal Service proposes use of the directory for 
this sole purpose, and has established effective safeguards to protect 
the information and prevent any other use.
USPS 500.100

System Name:
    Address Matching for Mail Processing.

System Location:
    Computer Operations Service Center; Engineering; Processing and 
Distribution Centers; and contractor site(s).

Categories of Individuals Covered by the System:
    USPS customers, including individual and business customers.

Categories of Records in the System:
    Names and mailing addresses of individuals and businesses.

Authority for Maintenance of the System:
    39 U.S.C. 401, 403, 404.

PURPOSE:
    To improve the speed, accuracy, and certainty of mail delivery.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    The standard routine uses for customer-related systems apply, 
except that routine uses 3 and 6 do not apply. The following additional 
routine use also applies:
    A mailpiece containing a barcode that is encoded with the address, 
but not name, of a customer derived from this system may be disclosed 
to a mailer if the Postal Service is unable to deliver the mailpiece, 
and returns it to the mailer as part of a requested return service.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    Automated databases, electronic and computer storage media, with 
names and addresses stored separately.

Retrievability:
    Retrieval is accomplished by a computer-based system, using one or 
more of the following elements: name, ZIP Code(s), street name, primary 
number, secondary number, delivery point, and/or carrier route 
identification.

SAFEGUARDS:
    The name and address database will be obtained from a commercial 
vendor under strict contract and security controls. The database will 
be maintained separately from Postal Service databases. Name data and 
address data within the commercial database will also be stored 
separate from each other. In field deployment, name and address data 
will be stored in an encrypted fashion. The database will not be 
commingled with any agency records or databases, and will not be used 
to update any agency record or database. No information will be 
provided from the Postal Service into the commercial database or back 
to the vendor.
    The database will only operate on secure systems. Electronic 
transmissions of records are protected by encryption and access 
authorization codes. Records are kept on computers in controlled-access 
areas, with access limited to

[[Page 42226]]

authorized personnel. Computers are protected by a cipher lock system, 
card key system, or other physical access control methods. The use of 
computer systems is regulated with installed security software, 
computer logon identifications, and operating system controls including 
access controls, terminal and use identifications, and file management. 
Contractors are subject to contract controls regarding security, as 
well as security compliance reviews by the Postal Service and Postal 
Inspection Service.

Retention and Disposal:
    The database will be maintained until 90 days after termination of 
the contract or program, and then destroyed. During contract 
performance, the database will be replaced by the vendor in its 
entirety no less frequently than every 90 days. To destroy the replaced 
version, the Postal Service will employ sanitization procedures that 
will ensure the complete destruction of information as specified by its 
information security policies.

System Manager(s) and Address:
    Senior Vice President for Operations, United States Postal Service, 
475 L'Enfant, Plaza, SW., Washington, DC 20260.

Notification Procedure:
    Customers wanting to know if information about them is kept in this 
system of records should address inquiries in writing to the Manager, 
Image Recognition Processing, 8403 Lee Highway, Merrifield VA 22082.

Record Access Procedures:
    Requests for access must be made in accordance with the 
Notification Procedure above and the Postal Service Privacy Act 
regulations regarding access to records and verification of identity 
under 39 CFR 266.6.

Contesting Record Procedures:
    See Notification Procedure and Record Access Procedures above.

Record Source Categories:
    Commercially available source of names and mailing addresses.

Neva Watson,
Attorney, Legislative.
[FR Doc. 04-15855 Filed 7-13-04; 8:45 am]
BILLING CODE 7710-12-P