Federal Register, Volume 84 Issue 216 (Thursday, November 7, 2019)

[Federal Register Volume 84, Number 216 (Thursday, November 7, 2019)]
[Proposed Rules]
[Pages 60031-60032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-24307]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2020-1; Order No. 5291]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent filing requesting the 
Commission initiate a rulemaking proceeding to consider changes to 
analytical principles relating to periodic reports (Proposal Nine). 
This document informs the public of the filing, invites public comment, 
and takes other administrative steps.

DATES: Comments are due: December 20, 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.

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

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Proposal Nine
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On October 31, 2019, 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.\1\ The Petition identifies the proposed analytical 
changes filed in this docket as Proposal Nine.
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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 Nine), October 31, 2019 (Petition). 
The Postal Service filed a notice of filing of non-public materials 
relating to Proposal Nine. Notice of Filing of USPS-RM2020-1/1 and 
USPS-RM2020-1/NP1 and Application for Nonpublic Treatment, October 
31, 2019.
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II. Proposal Nine

    Background. Proposal Nine relates to methodological changes for 
estimating facility-related costs. Petition, Proposal Nine at 1. The 
cost models were last presented in Docket No. ACR2018, Library 
References USPS-FY-18-NP15 and USPS-FY18-NP16, respectively. Id. The 
Postal Service acknowledges that because the extensive underlying data 
collection, analysis, and synthesis supporting this proposal ran 
relatively late into the year, the review is unlikely to be completed 
in time for FY 2019 Annual Compliance Report (ACR) preparation. Id. 
However, the Postal Service hopes to be able to incorporate the 
proposal into the ACR for FY 2020. Id.
    The current methodology is based on data from a Facility Space 
Usage Study (FSUS) conducted in 1999 and presented in Docket No. R2005-
1. Id. Since then, the Office of the Inspector General for the Postal 
Service recommended updating the FSUS. Id. The Postal Service's updated 
FSUS is the basis for Proposal Nine. Id.
    Proposal and rationale. The Postal Service notes that it recognized 
the need for a new FSUS since many facility changes have occurred since 
the old study. Id. at 2. In the interim, several types of equipment 
used to process mail in 1999 no longer exist (e.g., the multi-line 
optical character reader input sub system, the mail processing bar code 
sorter output sub system, among others) while new processing equipment 
has been introduced (e.g., the automated flat-sorting machine model 100 
and the automated package processing system). Id. Additionally, mail 
processing operations have been consolidated, bin capacity has 
increased over time, and network distribution centers have been 
activated in the meantime. Id.
    Not only have extensive changes taken place in the mail processing 
network since 1999, but the Postal Service's delivery network has 
changed as well. Id. Due to the deployment of the Flats Sequencing 
System to some plants, flat mail pieces at some delivery units are 
sorted into delivery point sequence order. Id. Automated delivery unit 
sorters have also been deployed to some postal facilities for parcel 
sortation to the carrier route level. Id. at 2-3.
    The Postal Service states that while it has updated its cost 
analysis annually to reflect the use of facility space, these 
adjustments were merely approximations. Id. at 3. The new FSUS provides 
a more comprehensive approach to estimating space proportions. Id.
    The FSUS update process began with a data collection phase using 
sample statistics from 11 mail processing strata and 6 retail facility 
and delivery strata. Id. The sample statistics were then used to 
inflate the space data into population estimates using the ``combined 
ratio'' estimation. Id. This methodology was used to de-average the 
total electronic Facility Management System building gross square 
footage for postal managed buildings into space categories representing 
each operation and function. Id.
    The Petition includes an updated facility file version from the FY 
2018 ACD (attached as USPS-FY18-8) to the Postal Service's Annual 
Compliance Review in Docket No. ACR2019. Id. at 4. The proposed new 
version is presented as Excel file ``FACILITY19.PROP9.xlsx'' (Facility 
File Workbook). Id. The Postal Service has modified the Facility File 
Workbook to remove redundant or outdated worksheets and includes the 
following 16 worksheets:

 Worksheet List Worksheet
 FSUS Results Worksheet
 MODS Data Worksheet
 Adjust FSUS Results Worksheet
 Rent Per Sq Ft Worksheet
 Change Factors Worksheet
 FSUS Facility Data Worksheet
 Equip Footprint Worksheet
 Equip Adjust Worksheet
 Remove Worksheet
 Deploy Worksheet
 Space Change Worksheet
 CRA Inputs Worksheet
     Outputs to CRA Worksheet
     POBox-Caller Service Split Worksheet
     Component Variability Worksheet
Id. at 4-12.


[[Page 60032]]


    Impact. The Postal Service summarizes the impact of Proposal Nine 
to product volume-variable and product-specific costs for FY 2018 in a 
table attached to the Petition. Id. at 14. It also provides a 
comprehensive version under seal. Id. at 12.

III. Notice and Comment

    The Commission establishes Docket No. RM2020-1 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 Nine no later 
than December 20, 2019. Pursuant to 39 U.S.C. 505, Katalin K. Clendenin 
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. RM2020-1 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 Nine), filed October 31, 2019.
    2. Comments by interested persons in this proceeding are due no 
later than December 20, 2019.
    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.
Darcie S. Tokioka,
Acting Secretary.
[FR Doc. 2019-24307 Filed 11-6-19; 8:45 am]
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