[Federal Register Volume 70, Number 73 (Monday, April 18, 2005)]
[Notices]
[Pages 20191-20193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-7750]


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POSTAL SERVICE


Request for Comments on the Strategic Transformation Plan 2006-
2010

AGENCY: Postal Service.

ACTION: Request for comments.

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SUMMARY: This Notice addresses the Postal Service's Strategic 
Transformation Plan 2006-2010.
    By law, beginning in 1997, the Postal Service TM is 
required to publish a five-year plan outlining its goals, targets, and 
strategies, and to update and revise its five-year plan at intervals of 
no less than 3 years. In support of its strategic planning process, the 
law requires the Postal Service to solicit and consider the ideas, 
knowledge, and opinions of those potentially affected by or interested 
in its Five-Year Strategic Plan.
    In addition, at the request of Congress, in 2002 the Postal Service 
prepared a comprehensive plan for the structural transformation of the 
postal system to meet the challenges of serving the American public. 
This first Transformation Plan covered the years 2002-2006. A major 
component of the next Five-Year Strategic Plan, covering 2006-2010, 
will be the extension of the Postal Service's Transformation Plan 
through the same period. This notice asks for public comment concerning 
the development and drafting of the Postal Service's combined document, 
the Strategic Transformation Plan 2006-2010.

DATES: Comments must be received by May 15, 2005.

ADDRESSES: Those responding are requested to e-mail their comments to 
[email protected]. Those wishing to send written comments should mail 
them to USPS Office of Strategic Planning, Stakeholder Feedback, 475 
L'Enfant Plaza, SW., Room 5142, Washington, DC 20260-5142. All 
stakeholders are encouraged to view the Postal Service's Web page 
dedicated to soliciting comments on its Strategic Transformation Plan 
2006-2010 located at http://www.usps.com/strategicplanning/2006-2010.htm. Stakeholders are requested to review the content of this Web 
site before submitting comments.

FOR FURTHER INFORMATION CONTACT: George R. Bagay (202) 268-4159.

SUPPLEMENTARY INFORMATION:

Five-Year Strategic Plan Statutory Background

    The Government Performance and Results Act of 1993 (GPRA), Public 
Law 103-62, was enacted to make Federal programs more effective and 
publicly accountable by requiring agencies to institute results-driven 
improvement efforts, service-quality metrics, and customer satisfaction 
programs. Other statutory goals were to improve Congressional decision-
making and the internal management of the United States government. 
Because of the Postal Service's position as an independent 
establishment of the Executive Branch of the government of the United 
States, section 7 of the law amended the Postal Reorganization Act to 
insert similar provisions for performance management in the Postal 
Service. (See 39 U.S.C. 2801-2805.)
    Section 2802 of title 39, United States Code, requires the Postal 
Service to update and revise its strategic plan at least every 3 years. 
This plan must contain:
    (1) A comprehensive mission statement covering the major functions 
and operations.
    (2) General goals and objectives, including outcome-related goals 
and objectives, for the major functions and operations.
    (3) Descriptions of how these goals and objectives are to be 
achieved and of the operational processes; skills and technology; and 
the human, capital, information, and other resources required to meet 
the goals and objectives.
    (4) A description of how the performance goals included in the 
annual performance plan required under section 2803 will be related to 
the general goals and objectives in the strategic plan.
    (5) An identification of the key factors external to the Postal 
Service and beyond its control that could significantly affect the 
achievement of its general goals and objectives.
    (6) A description of the program evaluations used in establishing 
or revising general goals and objectives, with a schedule for future 
program evaluations. (See 39 U.S.C. 2802(a).)
    The law also requires annual performance plans linking the 
organizational goals in the Strategic Plan with ongoing operations. 
Finally, the law requires the preparation of annual performance 
reports, which review and compare actual performance with the 
performance targets stated in the annual plans. (See 39 U.S.C. 2804.)
    In order to include public participation in this planning process, 
the statute provides that the Postal Service, as it develops each new 
iteration of the Strategic Plan, ``shall solicit and consider the views 
and suggestions of those entities potentially affected by or interested 
in such a plan, and shall advise the Congress of the contents of the 
plan.'' (See 39 U.S.C. 2802(d).)

Transformation Background

    On April 4, 2001, the Comptroller General of the United States 
advised the House of Representatives Committee on Government Reform 
that the Postal Service ``faces major challenges that collectively call 
for a structural transformation if it is to remain viable in the 21st 
century.'' He called on the Postal Service, in conjunction with all 
stakeholders, to prepare a comprehensive plan identifying ``the actions 
needed to address the Service's financial, operational, and human 
capital challenges and establish a time frame and specify key 
milestones for achieving positive results.'' On June 14, 2001, the 
Chair and ranking members of the Committee on Governmental Affairs and 
its Postal Oversight Subcommittee wrote to Postmaster General John E.

[[Page 20192]]

Potter asking that a Transformation Plan be developed. The Postal 
Service presented this first Transformation Plan covering the years 
2002- 2006 to Congress in April 2002. The Transformation Plan has made 
possible a number of successes to date: postal rates have remained 
stable since mid-2002, debt has declined by $9.5 billion, and a total 
of $4.3 billion in incremental annual savings have put the service well 
on its way to five straight years of productivity gains. At the same 
time, the Postal Service has achieved record customer satisfaction 
levels, provided record end-to-end service performance, and developed 
innovative postal products and services including Click-N-Ship[reg], 
Negotiated Pricing Agreements (NSAs), and Priority Mail[reg] flat-rate 
boxes.
    Following up on the April 2002 Transformation Plan, the Postal 
Service published two Transformation Plan Progress Reports, one in 
November 2003, and one in November 2004, and incorporated a discussion 
of Transformation Plan progress into its annual Comprehensive Statement 
on Postal Operations to Congress. All of these Postal Service plans and 
documents, along with other key Postal Service transformation, 
planning, and financial documents, can be found online at http://www.usps.com/strategicplanning.
    To maintain this significant momentum, the Postal Service plans to 
extend its ongoing transformation by developing the Strategic 
Transformation Plan 2006-2010 with the participation of its 
stakeholders. This plan will focus on Postal Service-wide 
organizational strategies along with detailed cross-functional 
strategies engineered to enhance value to our customers. Publication is 
planned for September 30, 2005, with subsequent annual updates.
    As a nation, we need to know how we can best structure our postal 
system in the years ahead to meet evolving needs. The Postal Service 
has a mission to serve every address in a growing nation. Its networks, 
with associated costs, are constantly expanding to accommodate new 
deliveries roughly equivalent to those for the cities the size of 
Chicago and Baltimore, year after year. Until recently, during a long 
period of strong economic expansion, the Postal Service benefited from 
growing mail volumes, with increasing postage revenue sufficient to pay 
for the expanding network, and kept postage rates in line with 
inflation. Because of the successes achieved as a result of the April 
2002 Transformation Plan, the Postal Service has improved its 
productivity during this period at an unprecedented rate. Nevertheless, 
changes in competition and technology suggest that, while a system for 
delivery of hard-copy mail will still be important, the volume of mail 
in the system may not grow enough in the future to keep pace with the 
growth in infrastructure required to serve an ever-growing number of 
addresses. The Postal Service currently lacks many of the tools that 
private businesses have to deal with revenue deficiencies. In addition, 
its service responsibilities prevent abandoning unprofitable locations 
or new addresses.

Discussion of the Postal Service Mission, Vision, and Objectives

    In 1970, Congress enacted the Postal Reorganization Act, 
transforming the former Post Office Department into the United States 
Postal Service. The intent was to ensure that the former department 
became a self-sustaining Federal entity, operating more like a 
business. The Postal Reorganization Act states that the Postal Service 
will have the ``basic and fundamental'' responsibility to provide 
postal services to bind the nation together through the personal, 
educational, literary, and business correspondence of the people. 
Prompt, reliable, and efficient postal services must be extended to 
patrons in all areas and to all communities.
    The objective of transformation was stated in the April 2002 
Transformation Plan and the Strategic Plan 2004-2008. The plans 
acknowledge the assistance of the full range of stakeholders in the 
postal industry and a firm commitment to all stakeholders, especially 
our customers. In order to maintain our financial viability and fulfill 
our universal service mission, we commit that we will:
     Foster growth by increasing the value of postal products 
and services to our customers;
     Improve operational efficiency; and
     Enhance the performance-based culture.
    It is for the purpose of maintaining its transformative vision and 
momentum through the Transformation Plan 2006-2010 that we ask 
stakeholders once again to share their views on the future of the 
nation's mail service.

Solicitation of Comments

    Although all comments and feedback are welcome, we are seeking 
current, updated suggestions and commentary rather than resubmission of 
material already provided as part of previous stakeholder outreach 
efforts. Comments can be especially helpful to the Postal Service in 
analyzing external trends that will shape the demand for postal 
services over the next five years. The following fundamental changes 
have previously been identified as likely to reshape the delivery 
services marketplace:

Changing Customer Needs

    With access to more information and options than ever before, 
customers have a broad range of choices for delivery of messages, 
money, and merchandise--our three businesses. Customer requirements for 
postal services and entrenched network structures and service patterns 
may be changing. The Postal Service's Strategic Transformation Plan 
2006-2010 is intended to meet these changing customer requirements 
while continuing to transform the Postal Service into an organization 
that is ``easier to use'' and more responsive to customer needs. The 
Postal Service intends to ``partner'' with customers and industry 
participants to add value to customer transactions.

Eroding Mail Volumes

    Electronic alternatives, particularly bill presentment and payment, 
pose a definite and substantial risk to First-Class Mail'' volume and 
revenue within the next 5-10 years. This could, in turn, have a 
negative impact on First-Class Mail rates.

Rising Costs

    Despite major gains in efficiency and productivity through 
automation, the costs of maintaining an ever-expanding postal network 
are increasing, especially costs outside the direct control of the 
Postal Service, such as retirement and health benefit liabilities.

Fixed Costs

    Universal service requires a significant infrastructure to deliver 
postal services. Almost half of current Postal Service costs are spent 
on these resources, and that level does not change when volume or 
productivity increases or decreases. This makes cost containment most 
challenging.

Merging of Public and Private Operators into Global Networks

    Former national foreign postal services, some privatized, have 
entered the U.S. domestic market.

Increasing Security Concerns

    Rising security concerns require sophisticated countermeasures.
    Are these factors still relevant? Which ones are relevant and which 
are not? Are some more important than others? Is the rate of change for 
each factor increasing or decreasing? Are there

[[Page 20193]]

other factors that warrant consideration? What are they? In developing 
the Strategic Transformation Plan 2006-2010, the Postal Service would 
like to receive stakeholders' views and comments on these and other 
long-term external changes, issues, and trends.
    The Postal Service also invites comment on its long-range 
organizational goals, or objectives, published most recently in the 
Preliminary Annual Performance Plan for 2005 as part of the FY 2004 
Comprehensive Statement on Postal Operations. The Postal Service has 
employed long-range goals, or objectives, as part of a strategic 
planning process for over two decades, along with systematic 
performance assessments. The Postal Service has developed a disciplined 
process to establish goals, objectives, indicators, and targets; assign 
resources to programs that support achievement of the targets; 
implement the programs; and review performance. Stakeholder input will 
also support and enhance the performance process.
    The United States Postal Service maintains a Web page dedicated to 
soliciting comments on its Strategic Transformation Plan 2006-2010: 
http://www.usps.com/strategicplanning/2006-2010.htm. Stakeholders are 
requested to review this Web site, and may submit emails or send 
written comments. Interested parties are encouraged to complete the 
survey presented on the Web page, and, if desired, respond to the 
following questions included on the survey:
     If there were one change you could write into 
Transformation 2006-2010 for the Postal Service, what would it be?
     What is most important to your organization in the next 
five years, and how can the Postal Service best help you?
     What should the Postal Service look like in five years? 
What are the most important changes that should be made?
     What is the proper balance among the multiple goals of the 
Postal Service (universal service, financial self-sufficiency, public 
services, cost management and productivity, workplace and workforce 
improvement, effective products and services, responsive customer 
support)?
     What information should the Postal Service be providing to 
stakeholders?

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 05-7750 Filed 4-15-05; 8:45 am]
BILLING CODE 7710-12-P