[Federal Register Volume 83, Number 103 (Tuesday, May 29, 2018)]
[Proposed Rules]
[Pages 24445-24446]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-11366]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2018-4; Order No. 4610]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is noticing a recent filing requesting that the 
Commission initiate an informal rulemaking proceeding to consider 
changes to an analytical method for use in periodic reporting (Proposal 
One). This notice informs the public of the filing, invites public 
comment, and takes other administrative steps.

DATES: 
    Comments are due: June 13, 2018.
    Reply Comments are due: June 20, 2018.

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. Proposal One
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On May 17, 2018, the Postal Service filed a petition pursuant to 39 
CFR 3050.11 requesting that the Commission initiate a rulemaking 
proceeding to consider changes to analytical principles relating to 
periodic reports and compliance determinations.\1\ The Petition 
identifies the proposed analytical method changes filed in this docket 
as Proposal One.
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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 One), May 17, 2018 (Petition).
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II. Proposal One

    Background. Proposal One relates to sampling procedures for the 
Delivery Point Sequenced (DPS) portion of the Rural Carrier Cost System 
(RCCS) data used for the distribution of rural carrier costs within the 
Cost and Revenue Analysis (CRA) Report. Petition at 1. The RCCS is a 
continuous, ongoing cross-sectional statistical study, or probability 
sample of rural carrier route-days. Id. Proposal One at 1. For each 
selected route-day, a sample of mail is selected, and for each selected 
mailpiece, characteristics are recorded directly into a portable 
microcomputer. Id. RCCS data are primarily used to distribute rural 
carrier costs among the products that rural carriers deliver. Id. at 2.
    The Origin-Destination Information System--Revenue, Pieces, and 
Weight (ODIS-RPW) used to estimate volume and revenue is also a 
probability-based destinating mail sampling system in which data 
collectors also record mail characteristics from sampled mailpieces. 
Id. Data collectors record mail characteristics using digitally 
captured images of letter-shaped and card-shaped mail, thereby 
eliminating the need for manual sampling of DPS letters and cards. Id. 
Mailpiece information obtained from ODIS-RPW digital sampling is 
similar to RCCS DPS data elements, including the destinating carrier 
route number. Id.
    Proposal. Proposal One involves a methodology change in RCCS data 
collection procedures and in the volume proportion estimation 
procedures used for cost distribution for certain DPS mail. Id. at 1. 
Proposal One is similar to Proposal Nine approved by the Commission in 
Docket No. RM2017-13, which proposed use of digital image samples for 
the City Carrier Cost System (CCCS).\2\
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    \2\ Id. Docket No. RM2017-13, Order on Analytical Principles 
Used in Periodic Reporting (Proposal Nine), December 15, 2017 (Order 
No. 4278).
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    Proposal One would allow utilization of the same digital data 
(regarding DPS pieces destined for delivery by rural routes) currently 
employed by ODIS-RPW to simultaneously enhance the RCCS estimation of 
delivered DPS volumes and eliminate the need to manually sample a large 
portion of DPS mail. Petition, Proposal One at 2. Details about the 
mapping of products to mailcodes are set forth in the RCCS Digital 
Mailcode Flowchart Excel file electronically attached to the Petition. 
The RCCS Digital System documentation electronically attached to 
Proposal One as a PDF document provides more details on the proposed

[[Page 24446]]

procedures. For rural routes in ZIP Codes that are not included in the 
ODIS-RPW digital sampling frame, the current methodology of manually 
sampling DPS mail would continue, and those estimates would be combined 
with the digital DPS estimates to produce the distribution key for DPS 
mail used to apportion street activity costs to categories of mail in 
Cost Segment 10. Id. at 3.
    Rationale and impact. The Postal Service states that including 
ODIS-RPW digital data would greatly enhance RCCS DPS estimates and 
would substantially magnify the benefits of utilizing digital data 
already approved by the Commission. Id. RCCS data collectors on most 
RCCS tests would no longer have to take the time to pull sample 
mailpieces from DPS letter trays. Id. This would allow them more time 
to devote to sampling other mail types, like parcels and cased letters 
and flats. Id. at 3-4. This could also help avoid delays of carriers 
leaving the office to deliver mail. Id. at 4.
    The automated, systematic method of collecting images of DPS letter 
and cards used to collect the sample would reduce the risk of 
undetected sampling errors, and the retention of the mailpiece images 
for 30 days would permit review and post-analysis by data collectors 
and supervisors. Id. Detailed information regarding the rational and 
impact of Proposal One, Rural Carrier Cost System--Digital DPS 
Statistical Documentation, is attached to the Petition as a PDF 
document. A table, Impact of Proposal One, included in the Petition 
also compares the FY 2017 DPS distribution key proportions and 
estimates the impact on unit costs from the proposal. Id. at 5. The 
Postal Service states that the table and an electronically attached 
Excel file demonstrate that the expected impact of Proposal One would 
be minimal. Id. at 4.

III. Notice and Comment

    The Commission establishes Docket No. RM2018-4 for consideration of 
matters raised by the Petition. More information on the Petition may be 
accessed via the Commission's website at http://www.prc.gov. Interested 
persons may submit comments on the Petition and Proposal One no later 
than June 13, 2018. Reply comments are due no later than June 20, 2018. 
Pursuant to 39 U.S.C. 505, Lawrence Fenster 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. RM2018-4 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 One), filed May 17, 2018.
    2. Comments by interested persons in this proceeding are due no 
later than June 13, 2018.
    3. Reply comments are due no later than June 20, 2018.
    4. Pursuant to 39 U.S.C. 505, the Commission appoints Lawrence 
Fenster 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.
Stacy L. Ruble,
Secretary.
[FR Doc. 2018-11366 Filed 5-25-18; 8:45 am]
 BILLING CODE 7710-FW-P