[Federal Register Volume 75, Number 67 (Thursday, April 8, 2010)]
[Rules and Regulations]
[Pages 17861-17863]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-7896]


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POSTAL SERVICE

39 CFR Part 111


2010 Standard Mail Incentive Program

AGENCY: Postal ServiceTM.

ACTION: Final rule.

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SUMMARY: The Postal Service is revising Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM[supreg]), to replace 
existing section 709.2 with new standards for a volume incentive 
program for mailers of Standard Mail[supreg] letters and flats with 
mail volume exceeding their individual USPS[supreg]--determined 
threshold levels. The program period will be from July 1, 2010 through 
September 30, 2010.

DATES: Effective Date: July 1, 2010.

FOR FURTHER INFORMATION CONTACT: Krista Becker at 202-268-7345 or Kevin 
Gunther at 202-268-7208.

SUPPLEMENTARY INFORMATION: The Postal Service is replacing the 
standards applicable to the Standard Mail Incentive Program that ended 
on September 30, 2009 with new standards describing the 2010 Standard 
Mail Incentive Program. The 2010 Standard Mail Incentive Program 
implements a volume incentive program for qualified high-volume mailers 
of Standard Mail, or Nonprofit Standard Mail, letters and flats, with 
volume mailed between July 1, 2010 and September 30, 2010, above their 
individual threshold level. The threshold level for this program will 
be set at five percent (5%) above the volume demonstrated by the 
participant mailer during the same period in 2009. This program 
encourages mailers to generate new volume and demonstrates the 
commitment of the Postal Service to the future health of the mailing 
industry.
    To participate, mailers must be the permit holder (i.e. owner) of a 
permit imprint advance deposit account(s) or the owner of qualifying 
mail volume entered through the permit imprint advance deposit account 
of a mail service provider. Qualifying mailers must be able to 
demonstrate volume of at least three-hundred and fifty thousand 
(350,000) Standard Mail letters and/or flats, within the program 
qualification period of July 1, 2009 to September 30, 2009, mailed 
through a permit imprint advance deposit account, precanceled stamp 
permit, postage meter permit, or by a combination of these methods. 
Applicants may also qualify for the program with volume mailed through 
an account(s) owned by a mail service provider, when adequate 
documentation is provided that specifies the applicant is the owner of 
the mail.
    The 2010 Standard Mail Incentive Program encourages mailers to 
generate new mail volume. As a deterrent to mailers shifting previously 
planned volume into the program to obtain incentive credits, the 
mailing activity of participating mail owners will be monitored in the 
calendar months prior to and following the end of the program as 
follows:
     For the 2010 Standard Mail Incentive Program, each 
participant's June 2010 and October 2010 expected volume will be 
defined as five percent (5%) over the total volume of Standard Mail 
letters and/or flats recorded for the participant in June 2009 and 
October 2009 respectively.
     Each participant's actual June 2010 and October 2010 
volumes will be compared to their respective June 2010 and October 2010 
expected volumes.
    Participants demonstrating a shortfall with volume to either their 
June 2010 or October 2010 expected volumes will have that shortfall 
deducted from the number of mailpieces eligible for an incentive credit 
within the program regardless of any surplus demonstrated in the 
expected volume threshold of the other month.
    Those mailers identified by the Postal Service as being eligible to 
participate in the program will be sent an invitation letter on or 
before May 1, 2010. This invitation letter will direct interested 
mailers to apply for the program online at http://www.usps.com/summersale. Mailers wishing to participate in the program, who believe 
they meet the eligibility standards under DMM 709.2.2 (of this final 
rule) and were not notified by letter, may request a review of their 
eligibility by contacting the USPS at [email protected] no later than 
May 15, 2010. Any mailer wishing to participate in the program must 
initially apply at http://www.usps.com/summersale no later than May 28, 
2010.
    Mailers completing the online application process will receive an 
electronic response from the USPS that includes:
     An individual volume threshold report.
     A certification letter.
     A threshold inquiry form.
    The individual threshold report displays the applicant's July 1, 
2009 to September 30, 2009 Standard Mail letters and flats volume 
mailing history, by permit number, and the applicant's USPS-calculated 
threshold. The report also includes the applicant's June 2009 and 
October 2009 mailing histories and the USPS-calculated expected June 
2010 and October 2010 volumes. Applicants agreeing with the volume 
histories and USPS calculations can sign the provided certification 
letter and return a copy via e-mail to [email protected], or mail 
hardcopy to Summer Sale Program Office, 475 L'Enfant Plaza, SW., RM 
5410, Washington, DC 20260-5410, to be fully registered for the 
program. To simplify the review process, by identifying potential 
permit issues prior to scheduling contact with a USPS representative, 
applicants not agreeing with any portion of their volume histories must 
complete the threshold inquiry form and return it, via e-mail to 
[email protected], or mail hardcopy to Summer Sale Program Office, 
475 L'Enfant Plaza, SW., RM 5410, Washington, DC 20260-5410, no later 
than June 30, 2010. Applicants

[[Page 17862]]

disputing USPS volume histories or calculations will be required to 
provide supporting evidence as appropriate.
    In addition to Standard Mail volume prepared and entered directly 
by the mailer (applicant), applicants are also eligible to participate 
in the program with qualifying volume prepared by a mail service 
provider when entered through a permit owned by the applicant. Mail 
volume through a mail service provider's permit may also qualify for 
the program if adequate documentation, such as PS Form 3602, Postage 
Statement--Standard Mail, identifies the mail as being prepared on 
behalf of the applicant and demonstrates the applicant's prior mailing 
activity. Mail service providers are not eligible for the 2010 Standard 
Mail Incentive Program.
    Approved program participants, demonstrating an increase in their 
total Standard Mail letters and flats volume above their threshold 
level, will qualify for a credit to a single designated permit imprint 
advance deposit account or Centralized Account Payment System (CAPS) 
account, following the close of the October 2010 mailing activity 
review period. The total postage attributable to Standard Mail letters 
and flats within the program period will be identified for each 
participant and divided by the total number of recorded pieces, to 
generate the average price per piece. Participants receive a credit in 
the amount of thirty percent (30%) of the average price per piece for 
the total number of mailpieces of the incremental volume, above their 
threshold level, recorded during the program period.
    Additionally, as part of the program administration, the Postal 
Service will require each program participant to certify the data used 
to calculate their program threshold level and their June 2010 and 
October 2010 expected volumes. This certification requirement will be 
similar to what is currently used on a PS Form 3602, Postage 
Statement--Standard Mail. The certification requirement for this 
initiative is designed to ensure that the data used by the Postal 
Service to calculate the threshold level and applicable June 2010 and 
October 2010 expected volumes for each qualifying mailer is accurate.
    In accordance with the Postal Accountability and Enhancement Act, 
on February 26, 2010, the Postal Service filed a Notice with the Postal 
Regulatory Commission (PRC) regarding the 2010 Standard Mail Incentive 
Program. Regulatory review may take up to 45 days from that date.
    The Postal Service adopts the following changes to Mailing 
Standards of the United States Postal Service, Domestic Mail Manual 
(DMM), incorporated by reference in the Code of Federal Regulations. 
See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

    Administrative practice and procedure, Postal Service.

0
Accordingly, 39 CFR part 111 is amended as follows:

PART 111--[AMENDED]

0
1. The authority citation for 39 CFR part 111 continues to read as 
follows:

    Authority:  5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414. 
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3622, 3626, 3632, 3633 
and 5001.


0
2. Revise the following sections of Mailing Standards of the United 
States Postal Service, Domestic Mail Manual (DMM) as follows:

Mailing Standards of the United States Postal Service, Domestic Mail 
Manual (DMM)

* * * * *

700 Special Standards

* * * * *

709 Experimental and Temporary Classifications

* * * * *
    [Delete current section 709.2.0 in its entirety and replace with 
new section 709.2.0 to introduce new standards for the 2010 Standard 
Mail Incentive Program as follows:]

2.0 2010 Standard Mail Incentive Program

2.1 Program Description

    The 2010 Standard Mail Incentive Program provides volume pricing 
for qualified mail owners of Standard Mail, or Nonprofit Standard Mail, 
letters and/or flats that are able to document mail volume exceeding 
their individual USPS-determined threshold level, during the July 1, 
2010 through September 30, 2010 program period. Participating mail 
owners documenting volumes above their established threshold level will 
receive a thirty percent (30%) credit, for each piece exceeding their 
individual USPS-determined threshold level, to a single designated 
permit imprint advance deposit account or Centralized Account Payment 
System (CAPS) account at the conclusion of the program period. To 
participate in the program, applicants must review and certify the 
accuracy of the data used by the USPS to calculate their threshold 
level and their June 2010 and October 2010 expected volumes.

2.2 Eligibility Standards

    Mail owners are considered eligible for the program as follows:
    a. Applicants must be able to document, in aggregate, volume of at 
least three-hundred and fifty thousand (350,000) pieces of Standard 
Mail, or Nonprofit Standard Mail, letters and/or flats in the July 1, 
2009 to September 30, 2009 time period as follows:
    1. Volume through one or more permit imprint advance deposit 
accounts, precanceled stamp permits, or postage meter permits owned by 
the applicant, or
    2. Volume prepared by a mail service provider when entered through 
a permit owned by the applicant, or
    3. Volume within a mail service provider's permit, which can be 
identified as being prepared on behalf of the applicant.
    b. Mail service providers are not eligible to participate in this 
program.

2.3 Program Threshold Level

    Threshold level figures will be calculated independently for each 
applicant as follows:
    a. Thresholds will be calculated independently for each applicant, 
based on the consolidated volume of Standard Mail letters and/or flats 
mailed within the period from July 1, 2009 to September 30, 2009.
    b. Five percent (5%) above (or 105% of) the total consolidated 
volume mailed during this period defines the USPS-determined threshold 
level for an individual applicant.

2.4 Application

    Mail owners identified by the Postal Service as being eligible to 
participate in the program will be sent an invitation letter on or 
before May 1, 2010. Mail owners may apply for the program as follows:
    a. The invitation letter will direct interested mail owners to 
apply for the program online at www.usps.com/summersale.
    b. Mail owners wishing to participate in the program must initially 
apply online, or contact the USPS, at [email protected] no later than 
May 28, 2010.
    c. Mail owners completing the online application process will 
receive an electronic response from the USPS that includes:
    1 An individual volume threshold report displaying the applicant's 
July 1, 2009 to September 30, 2009 Standard Mail letters and flats 
volume mailing history (by permit number), the applicant's USPS-
calculated threshold, the applicant's June 2009 and October

[[Page 17863]]

2009 mailing histories and the USPS-calculated expected June 2010 and 
October 2010 volumes.
    2 A certification letter.
    3 A threshold inquiry form.
    d. Applicants agreeing with the volume histories and USPS 
calculations can sign the provided certification letter and return a 
copy via e-mail to [email protected], or mail hardcopy to Summer Sale 
Program Office, 475 L'Enfant Plaza, SW., RM 5410, Washington, DC 20260-
5410, no later than June 30, 2010, to be fully registered for the 
program.
    e. Applicants not in agreement with any portion of their volume 
histories must complete threshold inquiry form and return it, via e-
mail to [email protected], or mail hardcopy to Summer Sale Program 
Office, 475 L'Enfant Plaza, SW., RM 5410, Washington, DC 20260-5410, no 
later than June 30, 2010.
    f. Applicants disputing USPS volume histories or calculations will 
be required to provide supporting evidence as appropriate.
    g. Upon resolution of threshold and expected volume figures, 
applicants must provide a copy of the certification letter as described 
in d.
    h. Mail owners wishing to participate in the program, who believe 
they meet the eligibility standards under 2.2 and were not notified by 
letter, may request a review of their eligibility by contacting the 
USPS at [email protected] no later than May 15, 2010.

2.5 Program Participation

    Mail owners may participate in the program with qualifying volume 
as follows:
    a. Standard Mail, or Nonprofit Standard Mail, letters and/or flats 
volume mailed by the participant through the participant's own permit 
imprint advance account, precanceled stamp permit(s), or postage meter 
permit(s);
    b. Standard Mail, or Nonprofit Standard Mail, letters and/or flats 
volume prepared by a mail service provider, when entered through a 
permit owned by the participant;
    c. Standard Mail, or Nonprofit Standard Mail, letters and/or flats 
pieces mailed through a mail service provider's permit, only when the 
pieces can be identified as being prepared for the participant and when 
the applicant's prior mailing activity through the mail service 
provider's permit can be validated.

2.6 Incentive Program Credits

    Approved participants demonstrating an increase in Standard Mail, 
or Nonprofit Standard Mail, letters and flats volume above their 
threshold level qualify for a credit to a single designated permit 
imprint advance deposit account or Centralized Account Payment System 
(CAPS) account as follows:
    a. The total postage paid for Standard Mail, or Nonprofit Standard 
Mail, letters and flats recorded during the program will be identified 
for each participant.
    b. The total postage paid during the program period will be divided 
by the total number of recorded pieces to generate the average price 
per piece for the program period.
    c. Participants will receive a credit in the amount of thirty 
percent (30%) of the average price per piece applied to the total 
number of mailpieces (less any adjustments resulting from the mailing 
activity review under 2.7), for the incremental volume above their 
threshold level, recorded during the program period.

2.7 Mailing Activity Review

    Mailing activity by participants will be reviewed in the calendar 
months preceding and following the end of the program. The qualifying 
volume recorded for participants may be adjusted in accordance with the 
following:
    a. For the 2010 Standard Mail Incentive Program, each participant's 
June 2010 and October 2010 expected volume will be defined as five 
percent (5%) above (or 105% of) the total consolidated volume of 
Standard Mail letters and/or flats recorded for the participant in June 
2009 and October 2009 respectively.
    b. Each participant's actual June 2010 and October 2010 volume will 
be compared to their respective June 2010 and October 2010 expected 
volume.
    c. Participants demonstrating a shortfall in volume to either their 
June 2010 or October 2010 expected volumes will have that shortfall 
deducted from the number of mailpieces eligible for an incentive credit 
within the program regardless of any surplus demonstrated in the 
expected volume threshold of the other month.
* * * * *

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 2010-7896 Filed 4-7-10; 8:45 am]
BILLING CODE 7710-12-P