[Federal Register Volume 73, Number 19 (Tuesday, January 29, 2008)]
[Notices]
[Pages 5242-5245]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-1471]


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POSTAL SERVICE


Changes in Domestic Mail Classifications

AGENCY: Postal Service.

ACTION: Notice of implementation of changes to the Domestic Mail 
Classification Schedule.

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SUMMARY: This notice sets forth the changes to the Domestic Mail 
Classification Schedule to be implemented as a result of the Decision 
of the Governors of the United States Postal Service on the Opinion and 
Recommended Decision of the Postal Regulatory Commission Approving 
Negotiated Service Agreement with Bank of America Corporation, Docket 
No. MC2007-1.

DATES: Effective Date: April 1, 2008.

FOR FURTHER INFORMATION CONTACT: Matthew J. Connolly, (202) 268-8582.

SUPPLEMENTARY INFORMATION: On February 7, 2007, in accordance with 39 
U.S.C. 3622(f) as amended by the Postal Accountability and Enhancement 
Act, Public Law 109-435, and former sections 3622 and 3623 of the 
Postal Reorganization Act (39 U.S.C. 101, et seq.), the United States 
Postal Service filed a request with the Postal Regulatory Commission 
(``PRC'') for a decision recommending a negotiated service agreement 
(``NSA'') with Bank of America Corporation. The PRC designated this 
filing as Docket No. MC2007-1. On October 3, 2007, pursuant to chapter 
36 of title 39 of the U.S. Code, the PRC issued to the Governors of the 
Postal Service its Opinion and Recommended Approving the NSA with Bank 
of America Corporation.
    Pursuant to former 39 U.S.C. 3625, the Governors of the United 
States Postal Service acted on the PRC's recommendation on December 17, 
2007. In the Decision of the Governors of the United States Postal 
Service on the Opinion and Recommended Decision of the Postal 
Regulatory Commission Approving Negotiated Service Agreement with Bank 
of America Corporation, Docket No. MC2007-1, the Governors of the 
Postal Service approved the recommended decision. In accordance with 
Resolution 07-7, the Board of Governors established an implementation 
date of April 1, 2008 on which the approved changes to the 
classification schedule for NSAs will take effect. The attachments to 
the Governors' Decision, setting forth the classification changes 
ordered into effect by the Governors, are set forth below.
    In accordance with the Decision of the Governors and Resolution No. 
07-7 of the Board of Governors, the Postal Service hereby gives notice 
that the classification changes set forth below will become effective 
at 12:01 a.m. on April 1, 2008.

Attachment A to the Decision of the Governors of the United States 
Postal Service on the Opinion and Recommended Decision of the Postal 
Regulatory Commission Approving Negotiated Service Agreement With Bank 
of America Corporation, Docket No. MC2007-1

Approved Changes in Rate Schedules

    The following represent the changes to the rate schedules 
recommended by the Postal Regulatory Commission and approved by the 
Governors of the Postal Service in Docket No. MC2007-1. The changes 
require the addition of five new rate schedules--630A, 630B, 630C, 
630D, and 630E. The italicized text signifies that the text is new, and 
shall appear in addition to all other rate schedule text.

           BANK OF AMERICA CORPORATION NSA RATE SCHEDULE 630A
         (First-class mail improved mail processing performance)
------------------------------------------------------------------------
                                                          Rate incentive
                 Incremental improvement                    (per piece)
------------------------------------------------------------------------
0.1%....................................................        $0.00032
0.2.....................................................         0.00065
0.3.....................................................         0.00097
0.4.....................................................         0.00129
0.5.....................................................         0.00162
0.6.....................................................         0.00194
0.7.....................................................         0.00227
0.8.....................................................         0.00260
0.9.....................................................         0.00292
1.0.....................................................         0.00325
1.1.....................................................         0.00358
1.2.....................................................         0.00391
1.3.....................................................         0.00424
1.4.....................................................         0.00457
1.5.....................................................         0.00483
1.6.....................................................         0.00506
1.7.....................................................         0.00529
1.8.....................................................         0.00552
1.9.....................................................         0.00575
------------------------------------------------------------------------

SCHEDULE 630A NOTES

    1. All discounts will be paid in the form of a refund at the end of 
each Postal Fiscal Quarter in accordance with section 630.4 of the 
Domestic Mail Classification Schedule (DMCS).
    2. Per-piece rate incentives deducted from per-piece rates for 
letter-rated items in Rate Schedule 221.

[[Page 5243]]



           BANK OF AMERICA CORPORATION NSA RATE SCHEDULE 630B
                 [First-class mail reduced return rates]
------------------------------------------------------------------------
                                                    Rate         Rate
                                                 incentive    incentive
           Incremental  improvement              schedule A   schedule B
                                                (per piece)  (per piece)
------------------------------------------------------------------------
10.0%.........................................     $0.00022     $0.00360
20.0..........................................      0.00037      0.00390
30.0..........................................      0.00053      0.00420
40.0..........................................      0.00068      0.00450
50.0..........................................      0.00083      0.00480
60.0..........................................      0.00099      0.00510
70.0..........................................      0.00114      0.00540
80.0..........................................      0.00130      0.00570
90.0..........................................      0.00145      0.00600
------------------------------------------------------------------------

SCHEDULE 630B NOTES

    1. All discounts will be paid in the form of a refund at the end of 
each Postal Fiscal Quarter in accordance with section 630.4 of the 
Domestic Mail Classification Schedule (DMCS).
    2. Per-piece rate incentives deducted from per-piece rates for 
letter-rated items in Rate Schedule 221.

           BANK OF AMERICA CORPORATION NSA RATE SCHEDULE 630C
               [First-class mail reduced forwarding rates]
------------------------------------------------------------------------
                                                          Rate incentive
                 Incremental improvement                    (per piece)
------------------------------------------------------------------------
10%.....................................................        $0.00013
20......................................................         0.00030
30......................................................         0.00047
40......................................................         0.00064
50......................................................         0.00081
60......................................................         0.00098
70......................................................         0.00116
80......................................................         0.00133
90......................................................         0.00150
------------------------------------------------------------------------

SCHEDULE 630C NOTES

    1. All discounts will be paid in the form of a refund at the end of 
each Postal Fiscal Quarter in accordance with section 630.4 of the 
Domestic Mail Classification Schedule (DMCS).
    2. Per-piece rate incentives deducted from per-piece rates for 
letter-rated items in Rate Schedule 221.

           BANK OF AMERICA CORPORATION NSA RATE SCHEDULE 630D
      [Standard mail letters improved mail processing performance]
------------------------------------------------------------------------
                                                          Rate incentive
                 Incremental improvement                    (per piece)
------------------------------------------------------------------------
0.1%....................................................        $0.00024
0.2.....................................................         0.00049
0.3.....................................................         0.00073
0.4.....................................................         0.00097
0.5.....................................................         0.00122
0.6.....................................................         0.00146
0.7.....................................................         0.00171
0.8.....................................................         0.00195
0.9.....................................................         0.00220
1.0.....................................................         0.00244
1.1.....................................................         0.00269
1.2.....................................................         0.00294
1.3.....................................................         0.00319
1.4.....................................................         0.00343
1.5.....................................................         0.00363
1.6.....................................................         0.00379
1.7.....................................................         0.00396
1.8.....................................................         0.00419
1.9.....................................................         0.00466
------------------------------------------------------------------------

SCHEDULE 630D NOTES

    1. All discounts will be paid in the form of a refund at the end of 
each Postal Fiscal Quarter in accordance with section 630.4 of the 
Domestic Mail Classification Schedule (DMCS).
    2. Per-piece rate incentives deducted from per-piece rates for 
letter-rated items in Rate Schedules 321B or 322.

           BANK OF AMERICA CORPORATION NSA RATE SCHEDULE 630E
    (Standard mail letters reduced undeliverable-as-addressed rates)
------------------------------------------------------------------------
                                                          Rate incentive
                 Incremental improvement                    (per piece)
------------------------------------------------------------------------
10%.....................................................        $0.00040
20......................................................         0.00060
30......................................................         0.00100
40......................................................         0.00110
50......................................................         0.00130
60......................................................         0.00150
70......................................................         0.00170
80......................................................         0.00170
90......................................................         0.00170
------------------------------------------------------------------------

SCHEDULE 630E NOTES

    1. All discounts will be paid in the form of a refund at the end of 
each Postal Fiscal Quarter in accordance with section 630.4 of the 
Domestic Mail Classification Schedule (DMCS).
    2. Per-piece rate incentives deducted from per-piece rates for 
letter-rated items in Rate Schedule 321B or 322.

Attachment B to the Decision of the Governors of the United States 
Postal Service on the Opinion and Recommended Decision of the Postal 
Regulatory Commission Approving Negotiated Service Agreement With Bank 
of America Corporation, Docket No. MC2007-1

Approved Changes in the Domestic Mail Classification Schedule

    The following material represents changes to the Domestic Mail 
Classification Schedule recommended by the Postal Regulatory Commission 
and approved by the Governors of the Postal Service in Docket No. 
MC2007-1. The italicized text signifies that the text is new, and shall 
appear in addition to all other Domestic Mail Classification Schedule 
text.

NEGOTIATED SERVICE AGREEMENTS CLASSIFICATION SCHEDULE

* * * * *
    630 BANK OF AMERICA CORPORATION NEGOTIATED SERVICE AGREEMENT.
    630.1 Definitions.
    The following terms shall have the meanings ascribed to them in the 
Negotiated Service Agreement (NSA or Agreement) between Bank of America 
Corporation (Bank of America) and the United States Postal Service 
(Postal Service): Bank of America mail, Confirm service, Courtesy Reply 
Mail, eDropship, FAST (Facility Access and Shipment Tracking System), 
Four-State Barcode (OneCode), Letter-Rated Mail, OneCode ACS, 
PostalOne![supreg], Qualifying Permit Numbers, Schedule A First-Class 
Mail, Schedule B First-Class Mail, and Seamless Acceptance.
    630.2 Eligible Mail.
    630.21 Bank of America. Bank of America mail eligible for discounts 
under Rate Schedules 630A, 630B, 630C, 630D, and 630E is limited to 
letter-rated mail that (1) is entered by or on behalf of Bank of 
America or a subsidiary or affiliate, (2) relates to the business 
activities of Bank of America or a subsidiary or affiliate, and (3) 
complies with the machinability requirements specified in the 
Agreement. Such mail includes cooperative mailings and mail entered 
pursuant to marketing arrangements with other entities.
    630.22 Other Mailers. Functionally equivalent NSAs, involving 
worksharing discounts for performance-based improvements resulting from 
(1) the implementation of Four-State Barcode, OneCode ACS, Confirm 
service, Seamless Acceptance, FAST, and eDropship, (2) the barcoding of 
Courtesy Reply Mail, Business Reply Mail, and

[[Page 5244]]

Qualified Business Reply Mail, and (3) the adoption of electronic 
Address Correction Service in lieu of physical returns for letter-rated 
First-Class Mail that would otherwise be eligible for Standard Mail 
rates, may be entered into with other customers, as specified by the 
Postal Service, and implemented pursuant to proceedings under chapter 
36 of title 39 of the United States Code.
    630.3 Operational Commitments of Bank of America.
    630.31 Four-State Barcode. Bank of America will use the Four-State 
Barcode on all Bank of America mail entered under a Qualifying Permit 
Number as letter-rated First-Class Mail or Standard Mail.
    630.32 OneCode ACS. Bank of America will place OneCode ACS markings 
on all Bank of America mail entered under a Qualifying Permit Number as 
letter-rated First-Class Mail and Standard Mail, subject to the 
conditions and exceptions set forth in the text of the NSA.
    630.33 Waiver of Physical Return of Certain Letter-Rated 
Mailpieces. Bank of America will accept electronic information about 
certain kinds of undeliverable-as-addressed letter-rated mailpieces 
instead of their physical return, as specified in the text of the NSA.
    630.34 Confirm Service. Bank of America will implement use of 
Confirm service in accordance with section 991. Bank of America will 
use Confirm service for all Bank of America mail entered under a 
Qualifying Permit Number as letter-rated First-Class Mail and Standard 
Mail.
    630.35 Seamless Acceptance. Bank of America will use seamless 
acceptance for Bank of America mail entered under a Qualifying Permit 
Number as letter-rated First-Class Mail and Standard Mail. Bank of 
America will use a Mail.dat file (or Web-services) in conjunction with 
Four-State Barcodes to enable the Postal Service to use performance-
based verification procedures for mail entered by Bank of America, 
subject to the conditions and exceptions set forth in the text of the 
NSA.
    630.36 FAST and eDropship. Bank of America will use the automated 
scheduling services provided to the FAST system through the PostalOne! 
electronic data exchange services to enter its letter-rated Standard 
Mail mailpieces with destination entry discounts, subject to the 
conditions and exceptions set forth in the text of the NSA.
    630.37 Barcoding of Courtesy Reply Mail, Business Reply Mail, and 
Qualified Business Reply Mail. Bank of America will implement use of 
the Four-State Barcode on all Courtesy Reply Mail, Business Reply Mail, 
and Qualified Business Reply Mail envelopes enclosed in its mail. All 
mailpieces will be machinable, automation compatible, and properly 
marked with a OneCode Four-State Barcode. This requirement is subject 
to certain conditions and exceptions as provided in the text of the 
NSA.
    630.4 Discounts.
    630.41 General Terms and Conditions. The Postal Service shall pay 
rate discounts in the form of refunds to Bank of America for improved 
address quality and mail processing in accordance with the text of the 
NSA. Discounts shall be calculated as adjustments to the rates of 
postage otherwise established by the DMM. Discounts shall be determined 
quarterly, over the life of the Agreement, based on Bank of America's 
actual mail volumes and address quality for each quarter just ended, 
subject to the conditions in the text of the NSA.
    630.42 First-Class Mail Discounts.
    630.421 Discounts for Improved Mail Processing. Eligible mail that 
is sent via First-Class Mail is subject to the otherwise applicable 
First-Class Mail postage in Rate Schedule 221, less the discounts shown 
in Rate Schedule 630A for improved mail processing performance for 
letter-rated First-Class Mail mailpieces.
    630.422 Discount Formula for Improved Mail Processing. The Postal 
Service will use the following formula to calculate the rate discounts 
Bank of America will receive pursuant to Rate Schedule 630A:
    a. The Postal Service will determine the total number of letter-
rated First-Class Mail mailpieces of Bank of America mail that are read 
and accepted during their first pass through Postal Service mail 
sorting equipment during an applicable quarter.
    b. The Postal Service will divide the number identified in section 
630.422(a) above by the total number of letter-rated First-Class Mail 
mailpieces of Bank of America mail that receive a first pass through 
Postal Service mail sorting equipment during the same quarter.
    c. The Postal Service will subtract the baseline value set forth in 
the agreement from the percentage obtained in section 630.422(b) to 
obtain the incremental improvement within the meaning of the table in 
Rate Schedule 630A.
    630.423 Discounts for Reduced Return Rates. Eligible mail that is 
sent via First-Class Mail is subject to the otherwise applicable First-
Class Mail postage in Rate Schedule 221, less the discounts shown in 
Rate Schedule 630B for reduced return rates for letter-rated First-
Class Mail mailpieces.
    630.424 Discount Formula for Reduced Return Rates. The Postal 
Service will use the following formula to calculate the rate discounts 
Bank of America will receive pursuant to Rate Schedule 630B:
    a. The Postal Service will identify the number of undeliverable-as-
addressed letter-rated First-Class Mail mailpieces of Bank of America 
mail that have been returned to the sender by the Postal Service, as 
determined through OneCode ACS, for the applicable quarter.
    b. The Postal Service will divide the number identified in section 
630.424(a) above by the total number of letter-rated First-Class Mail 
mailpieces of Bank of America mail for the applicable quarter.
    c. The percentage obtained in section 630.424(b) will be subtracted 
from the applicable baseline undeliverable-as-addressed rate set forth 
in the Agreement, and the difference divided by that baseline 
undeliverable-as-addressed rate. The result, expressed as a percentage, 
will serve as the incremental improvement percentage used to determine 
the applicable rate incentive in Rate Schedule 630B.
    630.425 Discount for Reduced Forwarding Rates. Eligible mail that 
is sent via First-Class Mail is subject to the otherwise applicable 
First-Class Mail postage in Rate Schedule 221, less the discounts shown 
in Rate Schedule 630C for reduced forwarding rates for letter-rated 
First-Class Mail mailpieces.
    630.426 Discount Formula for Reduced Return Rates. The Postal 
Service will use the following formula to calculate the rate discounts 
Bank of America will receive pursuant to Rate Schedule 630C: 
    a. The Postal Service will identify the number of undeliverable-as-
addressed letter-rated First-Class Mail mailpieces of Bank of America 
mail that have been forwarded by the Postal Service, as determined 
through OneCode ACS, for the applicable quarter.
    b. The Postal Service will divide the number identified in section 
630.426(a) above by the total number of letter-rated First-Class Mail 
mailpieces of Bank of America mail for the applicable quarter.
    c. The percentage obtained in section 630.426(b) will be subtracted 
from the baseline forwarding rate set forth in the Agreement, and the 
difference divided by that baseline forwarding rate. The result, 
expressed as a percentage, will serve as the incremental improvement 
percentage used to determine the applicable rate incentive in Rate 
Schedule 630C.
    630.43 Standard Mail Discounts.

[[Page 5245]]

    630.431 Discounts for Improved Mail Processing. Eligible mail that 
is sent via Standard Mail is subject to the otherwise applicable 
Standard Mail postage in Rate Schedules 321B or 322, less the discounts 
shown in Rate Schedule 630D for improved mail processing performance 
for letter-rated Standard Mail mailpieces.
    630.432 Discount Formula for Improved Mail Processing. The Postal 
Service will use the following formula to calculate the rate discounts 
Bank of America will receive pursuant to Rate Schedule 630D:
    a. The Postal Service will determine the total number of letter-
rated Standard Mail mailpieces of Bank of America mail that are read 
and accepted during their first pass through Postal Service mail 
sorting equipment during an applicable quarter.
    b. The Postal Service will divide the number identified in section 
630.432(a) by the total number of letter-rated Standard Mail mailpieces 
of Bank of America mail that receive a first pass through Postal 
Service mail sorting equipment during the same quarter.
    c. The Postal Service will subtract the baseline value set forth in 
the Agreement from the percentage obtained in section 630.432(b) to 
obtain the incremental improvement percentage within the meaning of the 
table in Rate Schedule 630D.
    630.433 Discounts for Reduced Undeliverable-As-Addressed Rates. 
Eligible mail that is sent via Standard Mail is subject to the 
otherwise applicable Standard Mail postage in Rate Schedules 321B or 
322, less the discounts shown in Rate Schedule 630E for reduced 
undeliverable-as-addressed rates for letter-rated Standard Mail 
mailpieces.
    630.434 Discount Formula for Reduced Undeliverable-As-Addressed 
Rates. The Postal Service will use the following formula to calculate 
the rate discounts Bank of America will receive pursuant to Rate 
Schedule 630E:
    a. The Postal Service will identify the number of undeliverable-as-
addressed letter-rated Standard Mail mailpieces of Bank of America mail 
that have been returned by the Postal Service, as determined through 
OneCode ACS, for the applicable quarter.
    b. The Postal Service will divide the number identified in section 
630.434(a) above by the total number of letter-rated Standard Mail 
mailpieces of Bank of America mail for the applicable quarter.
    c. The percentage obtained in section 630.434(b) will be subtracted 
from the baseline undeliverable-as-addressed rate set forth in the 
Agreement, and the difference divided by that baseline undeliverable-
as-addressed rate. The result, expressed as a percentage, will serve as 
the incremental improvement percentage used to determine the applicable 
rate incentive in Rate Schedule 630E.
    630.5 Rounding Convention.
    For the purposes of the Agreement, the following rounding 
convention will apply:
    a. Numbers expressed as percentages will be rounded to the nearest 
tenth of a percent, and
    b. Numbers expressed in dollars and cents will be rounded to the 
nearest thousandth of a cent.
    630.6 Rates and Fees.
    The rates applicable to this Agreement are set forth in the 
following Rate Schedules:

630A
630B
630C
630D
630E
    630.7 Expiration.
    The provisions of section 630 expire on April 1, 2011 at 12:01 a.m. 
(Eastern).
    630.8 Precedence.
    To the extent any provision of section 630 is inconsistent with any 
other provision of the Domestic Mail Classification Schedule, the 
former shall control.
* * * * *

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. E8-1471 Filed 1-28-08; 8:45 am]
BILLING CODE 7710-12-P