[Federal Register Volume 79, Number 222 (Tuesday, November 18, 2014)]
[Proposed Rules]
[Page 68648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27210]



[[Page 68648]]

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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2015-5; Order No. 2246]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent Postal Service filing 
concerning a Proposed Rulemaking on Analytical Principles Used in 
Periodic Reporting (Proposal Twelve). This document informs the public 
of the filing, invites public comment, and takes other administrative 
steps.

DATES: Comments are due: December 8, 2014. Reply Comments are due: 
December 15, 2014.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Summary of Proposal
III. Initial Commission Action
IV. Ordering Paragraphs

I. Introduction

    On November 7, 2014, the Postal Service filed a petition pursuant 
to 39 CFR 3050.11 requesting that the Commission initiate an informal 
rulemaking proceeding to consider changes to analytical principles 
relating to periodic reports.\1\ It identifies the change filed in this 
docket as Proposal Twelve: To Establish a Cost Methodology for the 
Postal Service Customer Care Centers. Id. Attachment at 1. The Postal 
Service concurrently filed public and non-public versions of a 
supporting Excel spreadsheet, along with an application for non-public 
treatment for the sealed version.\2\
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    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal Twelve), November 7, 2014 
(Petition).
    \2\ Notice of Filing of USPS-RM2015-5/NP1 and Application for 
Nonpublic Treatment, November 7, 2014 (collectively, Application). 
The Application incorporates by reference the Application for Non-
Public Treatment of Materials contained in Attachment Two to the 
December 27, 2013 United States Postal Service Fiscal Year 2013 
Annual Compliance Report. Application at 1. See 39 CFR part 3007 for 
information on access to non-public material.
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II. Summary of Proposal

    Background. This proposal presents changes in the costing 
methodology for call centers due to a change in how these centers are 
staffed. Previously, the Postal Service outsourced call center 
positions; recently, it brought these positions in-house and converted 
them to clerk craft positions. Petition, Attachment at 1.
    Costs associated with outsourced call center activities have been 
included in Cost Segment 16. Id. The Postal Service proposes including 
the bulk of FY 2014 call center expenses in Cost Segment 3 on grounds 
that clerks performed the bulk of call center work in FY 2014. Id. It 
identifies existing Cost Segment 3.3, Administrative Support and 
Miscellaneous clerk costs, as the logical choice for these costs 
because the activities are similar in nature to the activities of 
Claims and Inquiries clerks, and proposes creating a new cost component 
within Cost Segment 3.3 (Customer Care Centers, number 424).\3\ Id.
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    \3\ This proposal does not seek to change established costing 
methods for contractor costs associated with call centers that are 
included in Cost Segment 16. Id.
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    In terms of cost assignment, the Postal Service proposes that costs 
associated with specific inquiries relating to mail products or special 
services (and a proportionate share of clerk support costs) be fully 
attributed to those products. It proposes that costs associated with 
inquiries not related to products (such as ZIP Code inquiries) be 
treated as institutional costs. Id. at 2.
    The Postal Service asserts that achieving the correct assignment of 
institutional and attributable costs requires several steps, states 
that a public spreadsheet shows the specific calculations, and provides 
a brief explanation. Id. at 2-3.
    Cost impacts. The Postal Service estimates the FY 2014 clerk labor 
costs for the call centers at approximately $85.1 million. Id. at 1. It 
states that under the proposed method, approximately 56 percent of the 
accrued call center costs would be treated as attributable. Id. at 5. 
It provides an illustration of the overall model and a table showing 
how the estimated FY 2014 costs would be attributed and distributed to 
products under the proposed methodology. Id. at 5-7. The table shows 
the impact in terms of unit attributable costs for each market dominant 
product. Id. at 6-7. The impact on the specific competitive products 
appears in the spreadsheet filed under seal. Id. at 6.

III. Initial Commission Action

    The Commission establishes Docket No. RM2015-5 for consideration of 
matters raised by the Petition. Additional information concerning the 
Petition may be accessed via the Commission's Web site at http://www.prc.gov. Interested persons may submit comments on the Petition no 
later than December 8, 2014. Reply comments are due no later than 
December 15, 2014. Pursuant to 39 U.S.C. 505, Cassie D'Souza is 
designated as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2015-5 for consideration 
of the matters raised by the Petition of the United States Postal 
Service for the Initiation of a Proceeding to Consider Proposed Changes 
in Analytical Principles (Proposal Twelve), filed November 7, 2014.
    2. Comments are due no later than December 8, 2014.
    3. Reply comments are due no later than December 15, 2014.
    4. Pursuant to 39 U.S.C. 505, the Commission appoints Cassie 
D'Souza to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.
[FR Doc. 2014-27210 Filed 11-17-14; 8:45 am]
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