[Federal Register Volume 84, Number 44 (Wednesday, March 6, 2019)]
[Proposed Rules]
[Pages 8066-8068]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04017]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2018-1; Order No. 5004]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Proposed rulemaking.
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SUMMARY: The Commission is proposing rules that require the Postal
Service to provide information about cost and service issues affecting
flat-shaped mail (flats). The Commission intends to analyze this
information over time to identify trends and measurable goals that will
lead to the development of a plan to improve these cost and service
issues. The Commission invites public comment on the proposed rules.
For additional information, Order No. 5004 can be accessed
electronically through the Commission's website at https://www.prc.gov.
DATES: Comments are due: April 5, 2019.
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.
[[Page 8067]]
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Background
II. Basis and Purpose of Proposed Rules
III. Proposed Rules
I. Background
The Commission initiated this proceeding to explore potential
enhancements to the Postal Service's data systems and to facilitate the
development of consistent reporting requirements to measure, track, and
report cost and service performance issues related to flats. To better
understand the data collected by the Postal Service related to flats
and to determine if the data can estimate cost and service impacts, the
Commission issued two information requests and a notice of inquiry.
II. Basis and Purpose of Proposed Rules
Based on the information received from the Postal Service and the
public, the Commission proposes specific reporting requirements to
facilitate measuring and tracking cost and service issues related to
flats. The Postal Service will be required to annually file data at the
national, and facility level (when specified). These reporting
requirements are designed to provide sufficient information to improve
transparency into the cost and service issues associated with flats. In
addition, the proposed requirements will increase the accountability of
the Postal Service related to operational initiatives related to flats.
The proposed reporting requirements seek information readily
available and previously provided or proposed by the Postal Service,
based on filings by the Postal Service in the Fiscal Year (FY) 2015
Annual Compliance Determination (ACD), the FY 2016 ACD, the FY 2017
ACD, and Docket No. RM2018-1. The proposed requirements simply require
the information to be provided in a more organized way and at regular
intervals. The information falls into four categories: (1) Analysis of
consolidated cost and service data; (2) analysis of costs by
operationally relevant groupings; (3) analysis of data related to
individual pinch points; and (4) analysis to estimate the impact of
operational changes.
The Commission is not proposing any specific enhancements to the
Postal Service's underlying data systems at this time, but as the
Commission becomes more familiar with these data reports, it may do so.
However, to ensure transparency on data enhancements implemented
internally by the Postal Service, the Commission proposes that the
Postal Service provide an annual narrative discussing any planned data
enhancements.
III. Proposed Rules
The Commission proposes to place the reporting requirements for
flat-shaped mail in a new section in 39 CFR part 3050.
List of Subjects for 39 CFR Part 3050
Administrative practice and procedure, Postal Service.
For the reasons stated in the preamble, the Commission proposes to
amend chapter III of title 39 of the Code of Federal Regulations as
follows:
PART 3050--PERIODIC REPORTING
0
1. The authority citation for part 3050 continues to read as follows:
Authority: 39 U.S.C. 503, 3651, 3652, 3653.
0
2. Add Sec. 3050.50 to read as follows:
Sec. 3050.50 Information pertaining to cost and service for flat-
shaped mail
(a) The reports in paragraphs (b) through (f) of this section shall
be filed with the Commission at the times indicated.
(b) Within 90 days after the end of each fiscal year, the Postal
Service shall file a financial report that analyzes data from the
fiscal year for all mail products that consist of more than 80 percent
flat-shaped mail. At a minimum, the report shall include:
(1) Volume and shape workpapers that identify products that contain
more than 80 percent flat-shaped mail (flat-shaped products).
(2) Unit attributable cost estimate workpapers for each flat-shaped
product that is disaggregated into the following cost categories: mail
processing unit cost, delivery unit cost, vehicle service driver unit
cost, purchased transportation unit cost, window service unit cost, and
other unit cost.
(3) A narrative that explains the methodology used to calculate the
unit attributable cost categories described in paragraph (b)(2) of this
section.
(4) A narrative supported by workpapers that identifies any flat-
shaped product where unit attributable cost increases were greater than
the change in unit market dominant attributable cost for the same
fiscal year. The narrative must include identification of cost
categories driving above average change in unit attributable cost for
flat-shaped product and a specific plan to reduce unit attributable
cost for identified flat-shaped product.
(5) An analysis of volume trends, and mail mix for flat-shaped
products, which includes, at a minimum, a comparison of:
(i) the aggregate unit attributable costs for flat-shaped products
for the current fiscal year, and
(ii) the calculated estimate of aggregate unit attributable costs
for flat-shaped products for the current fiscal year, using the
previous fiscal year's volume distribution. In addition, a narrative
that identifies drivers of changes in volume trends and mail mix.
(6) An analysis of the Flat Sequencing System (FSS), which
includes, at a minimum, the percent of flat-shaped mail destinating in
a FSS zone that were not finalized on FSS equipment, the cost of
processing flat-shaped mail on the FSS, the delivery point sequence
(DPS) percentage of FSS mail. In addition, a narrative that identifies
drivers of changes in the analysis between fiscal years.
(7) A manual processing analysis, which includes, at a minimum, the
cost of manually processing flat-shaped mail, the percent of flat-
shaped mail that were manually processed, and the percent of flat-
shaped mail that were entered at automation prices. In addition, a
narrative that identifies drivers of changes in the analysis between
fiscal years.
(8) An estimate, with supporting workpapers, of the cost impact of
bundle processing on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the cost impact of
bundle processing on flat-shaped products.
(9) An estimate, with supporting workpapers, of the cost impact of
low productivity on automated equipment on flat-shaped products for the
fiscal year. If no estimate available, provide a timeline to estimate
the cost impact of low productivity on automated equipment on flat-
shaped products.
(10) An estimate, with supporting workpapers, of the cost impact of
manual processing on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the cost impact of
manual processing on flat-shaped products.
(11) An estimate, with supporting workpapers, of the cost impact of
allied operations on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the cost impact of
allied operations on flat-shaped products.
(12) An estimate, with supporting workpapers, of the cost impact of
transportation on flat-shaped products
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for the fiscal year. If no estimate available, provide a timeline to
estimate the cost impact of transportation on flat-shaped products.
(13) An estimate, with supporting workpapers, of the cost impact of
last mile/delivery on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the cost impact of
last mile/delivery on flat-shaped products.
(c) Within 90 days after the end of each fiscal year, the Postal
Service shall file a service report that analyzes data from the fiscal
year for all mail products that consist of more than 80 percent flat-
shaped mail. At a minimum, the analysis must include:
(1) Service performance scores for all flat-shaped products.
(2) An estimate, with supporting workpapers, of the service impact
of bundle processing on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the service impact
of bundle processing on flat-shaped products.
(3) An estimate, with supporting workpapers, of the service impact
of low productivity on automated equipment on flat-shaped products for
the fiscal year. If no estimate available, provide a timeline to
estimate the service impact of low productivity on automated equipment
on flat-shaped products.
(4) An estimate, with supporting workpapers, of the service impact
of manual processing on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the service impact
of manual processing on flat-shaped products.
(5) An estimate, with supporting workpapers, of the service impact
of allied operations on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the service impact
of allied operations on flat-shaped products.
(6) An estimate, with supporting workpapers, of the service impact
of transportation on flat-shaped products for the fiscal year. If no
estimate available, provide a timeline to estimate the service impact
of transportation on flat-shaped products.
(7) An estimate, with supporting workpapers, of the service impact
of last mile/delivery on flat-shaped products for the fiscal year. If
no estimate available, provide a timeline to estimate the service
impact of last mile/delivery on flat-shaped products.
(d) Within 90 days after the end of each fiscal year, the Postal
Service shall file an analysis of costs by operationally relevant
grouping from FY 2013 to present.
(1) The report shall utilize fiscal year data filed in accordance
with Sec. 3050.22, and Sec. 3050.28(c) and (d) and any other data
necessary to complete the analysis.
(2) The report shall also include a narrative that explains the
methodology used to calculate costs by operationally relevant grouping.
(e) Within 90 days after the end of each fiscal year, the Postal
Service shall file the following reports that include data by both
quarter and fiscal year, as well as at the national level and at the
facility level unless otherwise specified. The reports shall include,
at a minimum, five years of quarterly historical fiscal year data
including the current fiscal year.
(1) Bundle Breakage Visibility Reports which include, at a minimum,
number of bundles processed, number of bundles processed by class,
product, facility, and machine type, number of broken bundles; and
number of broken bundles by class, product, facility, and machine type.
(2) Mail Processing Variance Reports, which include, at a minimum,
for each machine type that process flat-shaped mail: category, plant/
facility, volume, actual workhours, earned workhours (target hours),
productivity, variance, and percent achieved, and target
productivities, including narrative that explains methodology used to
develop target.
(3) eFlash Report, which includes, at a minimum manual letter and
flats volume, manual letter and flats workhours, manual letter and
flats cost analysis, manual letter and flats handling time, and manual
letter and flats handling cost per piece.
(4) Work in Process metrics, which include, at a minimum,
measurement of: unload scan to bundle sorter scan, unload scan to tray
mechanization scan, bundle sorter scan to mail processing equipment
piece scan, tray mechanization scan to next automation scan, and unload
scan to first automation scan.
(5) First-Class Mail Root Cause Point Impact Report, which
includes, at a minimum, root cause, shape, service standard, point
impact, rank, results attributed to air transit Automated Area
Distribution Center (AADC)/Area Distribution Center (ADC) processing
delays, and results attributed to surface transit AADC/ADC processing
delays.
(6) SVWeb Report, which includes, at a minimum, on-time departure
percentage, on-time arrival percentage, space utilization type by
container type, average load percentage, total number of late
containers, misrouted containers based on unload scans at unexpected
site, National Performance Assessment (NPA) goals, goal achievement,
the total score for six required scans, trips on time, space
utilization targets, and comparison of fiscal year space utilization to
targets.
(7) Last Mile Impact Report, which includes, at a minimum, overall
on-time score, on-time score at last processing, and last mile impact
for all flat-shaped products at each service standard.
(8) For each report listed in paragraphs (e)(1) through (e)(7) of
this section, the Postal Service shall provide a narrative that
describes any changes made to underlying data systems during the fiscal
year that impact the methodology used to produce the report.
(9) For each report listed in paragraphs (e)(1) through (e)(7) of
this section, the Postal Service shall provide a narrative that
discusses trends, changes, and reasons for any changes in data within
the report.
(f) Within 90 days after the end of each fiscal year, the Postal
Service shall file a report that identifies all national operational
changes and/or initiatives that occurred during the fiscal year related
to flat-shaped mail and all planned national operational changes and/or
initiatives for the next fiscal year related to flat-shaped mail. The
operational changes and/or initiatives should be designed to improve
operations related to flat-shaped mail, reduce the cost of flat-shaped
mail, and/or improve the service of flat-shaped mail.
(1) The report shall identify data from paragraphs (b), (c), (d),
and/or (e) of this section that will be impacted by each operational
change/initiative.
(2) The report shall also include an estimate, with supporting
workpapers, of the impact of each operational change/initiative on the
data selected in paragraph (f)(1) of this section.
(g) Within 90 days after the end of each fiscal year, the Postal
Service shall file a report that identifies all data enhancements that
occurred during the fiscal year related to data systems that affect
flat-shaped mail. The data enhancements should be designed to improve
measuring, tracking, and/or reporting on flat-shaped mail cost and
service issues.
By the Commission.
Stacy L. Ruble,
Secretary.
[FR Doc. 2019-04017 Filed 3-5-19; 8:45 am]
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