[Federal Register Volume 76, Number 191 (Monday, October 3, 2011)]
[Rules and Regulations]
[Pages 61052-61054]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-25336]


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POSTAL SERVICE

39 CFR Part 122


Service Standards for Market-Dominant Special Services Products

AGENCY: Postal Service.

ACTION: Final rule.

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SUMMARY: This rule adds a service standard for Stamp Fulfillment 
Services to the set of service standards for stand-alone market-
dominant special services products set forth in our regulations.

DATES: Effective date: November 2, 2011.

FOR FURTHER INFORMATION CONTACT: Khalid Hussain at 816-545-1250.

SUPPLEMENTARY INFORMATION: Section 301 of the Postal Accountability and 
Enhancement Act of 2006, Public Law 109-435, 120 Stat. 3198 et seq., 
requires the Postal Service to establish modern service standards for 
its market-dominant products within a year of the law's December 20, 
2006, enactment. Section 301 also requires that these service standards 
be revised ``from time to time.'' With this final rule, the Postal 
Service adds a set of service standards for Stamp Fulfillment Services 
(SFS) to the previously-established set of modern service standards.
    After extensive consultations with the Postal Regulatory Commission 
(PRC),

[[Page 61053]]

the Postal Service established modern service standards for market-
dominant products at 39 CFR Parts 121 and 122. See 72 FR 58946-70 
(October 17, 2007) (proposed rule); 72 FR 72216-31 (December 19, 2007) 
(final rule).\1\ The Postal Service also requested the PRC's approval 
of proposed systems for the measurement of service standard achievement 
for its market-dominant products. See PRC Docket No. PI2008-1, Notice 
of Request for Comments on Service Performance Measurement Systems for 
Market Dominant Products (December 4, 2007).
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    \1\ By operation of 39 U.S.C. 410(a), the Postal Service is 
exempt from the notice and comment requirements of the 
Administrative Procedure Act (5 U.S.C. 553 (b), (c)) regarding 
proposed rule makings. The Postal Service determined that public 
comment was appropriate for the initial service standards rulemaking 
in light of its unprecedented role. Given the limited scope of the 
rules issued in this notice, however, the Postal Service is 
exercising its discretion to forego notice-and-comment rulemaking in 
this instance.
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    Since the establishment of the Postal Service's service standards, 
the PRC added SFS to the market-dominant products list. PRC Order No. 
487 (July 13, 2010). As a result of SFS' classification as a market-
dominant product, the Postal Service now considers it necessary to add 
a set of service standards for SFS to 39 CFR Part 122.
    SFS provides the fulfillment of stamp and product orders received 
by mail, phone, fax, or Internet at the Postal Service's SFS center in 
Kansas City, Missouri. Orders can include stamps, stamped cards, 
envelopes, and stationery, and other philatelic items such as First Day 
Covers and stamp collecting materials. The Postal Service charges a fee 
for order processing and handling.
    Based on the nature of the fee, the distinct aspect of SFS service 
consists of SFS' intake, processing, and handling of orders for stamps 
(both mail use and philatelic), stamp products, and retail items. Once 
the order is processed, the Postal Service transmits the items as 
First-Class Mail, Priority Mail, Express Mail, Certified Mail, or 
Registered Mail, depending on the nature and priority of the order. 
These mail channels are subject to their own service standards, 
performance measurement, and reporting, where applicable, and so the 
Postal Service does not consider it necessary or reasonable to add a 
separate standard for the time that SFS is in transit as a mail 
shipment. Due to the variety of customer orders received at SFS (mail 
use stamps, collectible stamps, retail product, etc.), the Postal 
Service establishes a set of service standards for SFS based upon order 
profiles.

  Stamp Fulfillment Services--Service Standards for Fulfillment Process
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          Customer order                    Service standard \1\
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Internet Orders: Non-Philatelic/   <= 2 Business Days.
 Non-Custom.
Business Level Orders............  <= 5 Business Days.
Philatelic/Custom and All Other    <= 10 Business Days.
 Order Sources.
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    These service standards apply to the period from receipt of the 
order with payment in Stamp Fulfillment Services' order intake system 
thru order completion for entry (pick up by mail truck) into USPS mail 
stream. These standards exclude orders which may be comprised of pre-
orders, backorders, or orders where merchandise is not fulfilled at 
SFS.
    The service standards for SFS reflects thorough consideration of 
the objectives listed in 39 U.S.C. 3691(b)(1) and the factors listed in 
39 U.S.C. 3691(c), with an emphasis on customer satisfaction and 
customer needs.
    39 U.S.C. 3691(b) requires that market-dominant product service 
standard performance be measured by some objective external system, or 
by internal methods approved by the PRC under 39 U.S.C. 3691(b)(2). The 
Postal Service will submit a plan for service performance measurement 
to the PRC for review.

List of Subjects in 39 CFR Part 122

    Mail, Postal service.

    For the reasons stated in the preamble, the Postal Service amends 
39 CFR Part 122 as follows:

PART 122--[AMENDED]

0
1. The authority citation for 39 CFR Part 122 continues to read as 
follows:

    Authority: 39 U.S.C. 101, 401, 403, 404, 1001, 3691.


0
2. Section 122.2 is amended by adding paragraph (e) to read as follows:


Sec.  122.2  Stand-Alone Special Services.

* * * * *
    (e) The service standards for Stamp Fulfillment Services order 
fulfillment service is shipment of orders within the following 
timeframes, based from the time of order receipt within SFS systems, 
excluding designated postal holidays.

  Stamp Fulfillment Services--Service Standards for Fulfillment Process
------------------------------------------------------------------------
          Customer order                    Service standard \1\
------------------------------------------------------------------------
Internet Orders: Non-Philatelic/   <= 2 Business Days.
 Non-Custom.
Business Level Orders............  <= 5 Business Days.
Philatelic/Custom and All Other    <= 10 Business Days.
 Order Sources.
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[[Page 61054]]

Stanley F. Mires,
Attorney, Legal Policy & Legislative Advice.
[FR Doc. 2011-25336 Filed 9-30-11; 8:45 am]
BILLING CODE 7710-12-P