[Federal Register Volume 82, Number 195 (Wednesday, October 11, 2017)]
[Proposed Rules]
[Pages 47168-47169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-21855]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2018-1; Order No. 4142]


Data Enhancements and Reporting Requirements for Flats

AGENCY: Postal Regulatory Commission.

ACTION: Advance notice of proposed rulemaking.

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SUMMARY: The Commission is initiating a proceeding to explore 
enhancements to the Postal Service's data systems and to facilitate the 
development of consistent reporting requirements. This document informs 
the public of the filing, invites public comment, and takes other 
administrative steps.

DATES: Comments are due: December 4, 2017.

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. Background
III. Next Step
IV. Ordering Paragraphs

I. Introduction

    The Commission initiates this proceeding to explore potential 
enhancements to the Postal Service's data systems and to facilitate the 
development of consistent reporting requirements. These data 
enhancements and reporting requirements will be used to measure, track, 
and report the cost and service performance issues concerning flat-
shaped mailpieces (flats).

II. Background

    In the FY 2015 ACD, the Commission identified and analyzed six 
``pinch points'' that contribute to cost and service issues for flats: 
\1\
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    \1\ Docket No. ACR2015, Annual Compliance Determination Report, 
Fiscal Year 2015, March 28, 2016, at 165 (FY 2015 ACD).

 Bundle processing
 Low productivity on automated equipment
 Manual sorting
 Productivity and service issues in allied operations
 Increased transportation time and cost
 Last mile/delivery

    Using data available at the time, the Commission identified and 
discussed flats cost and/or service issues for each individual pinch 
point. See FY 2015 ACD at 165-180. However, the Commission acknowledged 
that there was a ``lack of comprehensive data'' which prevents the 
Postal Service and the Commission from measuring the impact of specific 
initiatives designed to improve cost and service issues for flats. Id. 
at 180.
    The Commission directed the Postal Service to identify a method to 
measure, track, and report the cost and service performance issues 
relating to each individual pinch point identified by the Commission at 
the most granular level practicable. Id. at 181. To increase 
transparency, the Commission requested certain information in support 
of the identified method: Available data to support methods to measure, 
track and report on cost and service issues related to flats, 
information on the cost to produce and aggregate current data, 
additional data that would be needed to support a method to measure, 
track and report on cost and service issues related to flats and the 
cost to produce that data, and the identification of information 
necessary to develop, implement, monitor, and quantify results for a 
comprehensive plan to improve flats service performance and cost 
coverage if an ideal data system were available. Id.
    The Postal Service responded to the Commission's Chapter 6 
directive on July 26, 2016.\2\ The Postal Service provided an extensive 
discussion of data systems that could be used to measure certain 
aspects of individual pinch points; however, it did not provide a 
specific method for each pinch point to measure, track, and report on 
cost and service issues related to flats. To redirect the Postal 
Service's response, the Commission issued Commission Information 
Request No. 1.\3\ In Order No. 3539, the Commission scheduled an off-
the-record technical conference on October 21, 2016, to determine the 
status of the Postal Service's proposed methods as requested in the 
original Commission Directive.\4\ The Postal Service filed its response 
to CIR No. 1 on November 28, 2016.\5\ In both its 120-Day Response and 
in its Response to CIR No. 1, the Postal Service provided general 
information related to all pinch points, and information specific to 
each individual pinch point. The Postal Service's responses were 
informative; however, the Commission found that neither response 
addressed the Commission's original and main request to develop a 
method to measure, track, and report the cost and service performance 
issues relating to the individual pinch points.\6\ The Postal Service 
stated that the information it provided is ``the first step

[[Page 47169]]

in an evolutionary process to develop a set of data reports that the 
Commission and the Postal Service can agree add value to the question 
of how best to track and report on metrics that will ultimately lead to 
improvements in the service and efficiency of flats processing.'' 
Response to CIR No. 1 at 3.
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    \2\ Docket No. ACR2015, Third Response of the United States 
Postal Service to Commission Requests for Additional Information in 
the FY 2015 Annual Compliance Determination, Report Regarding 
Information about Flats Data Systems, July 26, 2016 (120-Day 
Response).
    \3\ Docket No. ACR2015, Commission Information Request No. 1, 
September 27, 2016 (CIR No. 1).
    \4\ See Docket No. ACR2015, Order Scheduling Technical 
Conference, September 27, 2016 (Order No. 3539).
    \5\ Docket No. ACR2015, Response of the United States Postal 
Service to Commission Information Request No. 1, November 28, 2016 
(Response to CIR No. 1).
    \6\ Docket No. ACR2016, Annual Compliance Determination Report, 
March 28, 2017, at 170.
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III. Next Steps

    Although the Postal Service discussed its data systems and proposed 
metrics for certain pinch points, the Postal Service did not explain 
how it will use this information to report on issues relating to flats. 
The Commission finds that measuring various cost and service impacts 
associated with flats will provide greater insight into the issues. 
Tracking these issues over time will assist the Commission and the 
Postal Service with developing solutions to reduce cost and improve 
service performance of flats. Reporting on these measures and tracking 
will enhance the transparency and ability of stakeholders with vested 
interests to participate in the development of a plan to improve flats 
cost and service issues.
    At this stage in the docket, and given the information already 
provided by the Postal Service, the Commission seeks to better 
understand the data collected by the Postal Service and the 
capabilities of the systems that collect that data. In the information 
request filed along with this Order, the Commission requests that the 
Postal Service provide additional information about certain data 
systems and reports. The information request seeks, among other things, 
information about the capabilities of the data systems, information 
about planned improvements to the data systems, and ideas as to how 
certain data systems could be used to measure the impact on flats costs 
and service performance issues. The Commission also requests certain 
summary data reports that are available from the various data systems. 
Responses to the information request should be submitted no later than 
60 days from the date of this Order. If the Postal Service identifies 
any other data or information that would be helpful to the goal of 
measuring cost and service impacts on flats, the Postal Service should 
also submit it with the requested information.
    Once the information is received and analyzed, the Commission 
intends to schedule a technical conference to review the data submitted 
by the Postal Service and to better understand the capabilities of the 
Postal Service's systems. As explained above, the Commission intends to 
use information provided by the Postal Service in this proceeding to 
develop a detailed proposal of data enhancements and reporting 
requirements for consideration in this docket. The Commission will 
invite public comment on the detailed proposal before adopting any 
final rule. The Commission anticipates that this information will lead 
to the development of measureable goals to decrease the costs and 
improve the service performance of flats.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2018-1 to explore data 
enhancements and to facilitate the development of consistent reporting 
requirements that will be used to evaluate the cost and service 
performance issues associated with flats.
    2. Responses to the Commission Information Request No. 1, in this 
docket, should be provided 60 days from the date of this Order.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Katalin K. 
Clendenin to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2017-21855 Filed 10-10-17; 8:45 am]
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