[Federal Register Volume 86, Number 54 (Tuesday, March 23, 2021)]
[Proposed Rules]
[Pages 15449-15450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-05831]


=======================================================================
-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2021-3; Order No. 5847]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

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 One). This 
document informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: May 3, 2021.

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 15450]]


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 March 11, 2021, 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 One.
---------------------------------------------------------------------------

    \1\ Petition of the United States Postal Service for the 
Initiation of a Proceeding to Consider Proposed Changes in 
Analytical Principles (Proposal One), March 11, 2021 (Petition). The 
Postal Service also filed a notice of non-public materials relating 
to Proposal One. Notice of Filing of USPS-RM2021-3-NP1 and 
Application for Nonpublic Treatment, March 11, 2021.
---------------------------------------------------------------------------

II. Proposal One

    Background. Proposal One is a request to change the methodology for 
estimating revenue, pieces, and weight for domestic products reported 
into the Revenue, Pieces, and Weight (RPW) Report. Petition at 2. The 
Postal Service cites the introduction of numerous census system sources 
over the last 10 years as reducing the need to rely on Origin-
Destination Information System--Revenue, Pieces, and Weight (ODIS-RPW) 
sampling estimates. Id. The Postal Service states that its proposed 
methodology would enable significant reductions in manual data 
collection and the accompanying costs, while maintaining statistical 
reliability. Id. The Postal Service additionally filed under-seal 
materials related to RPW data for competitive products.\2\
---------------------------------------------------------------------------

    \2\ See Library Reference USPS-RM2021-3-NP1, March 11, 2021.
---------------------------------------------------------------------------

    Proposal. The Postal Service's proposal seeks to update its current 
RPW system used to generate the RPW report filed quarterly with the 
Commission in conformance with 39 CFR 3050.25. Petition at 2. The 
current system relies on a variety of source systems, including the 
ODIS-RPW probability sampling system.\3\ The Postal Service's proposed 
methodology redesigns the non-digital sampling portion of ODIS-RPW and 
makes minor changes to the digital portion, along with a two-thirds 
(for non-digital) and one-third (for digital) reduction in sampling 
size. Id at 12.
---------------------------------------------------------------------------

    \3\ Id. at 2-3. The Postal Service references Library References 
USPS-LR-L-16 and USPS-LR-L-17 in Docket No. R2006-1 as the most 
recent full documentation for the ODIS-RPW system. Id.
---------------------------------------------------------------------------

    The Postal Service notes that past reliance on ODIS-RPW for 
business decisions has been replaced by the alternative disaggregated 
data source Informed Visibility (IV), addressing the Commission's 
previous concern that alternative disaggregated data sources be 
developed prior to reducing the sampling size of ODIS-RPW. Id. at 11. 
Similarly, the current Service Performance Measurement (SPM) system 
does not rely on ODIS-RPW volumes, so service measurement would be 
unaffected by the proposed changes to ODIS-RPW. See id. at 11-12.
    The proposed updates to ODIS-RPW include consolidation of non-
digital sample areas from 189 to 10 to reduce the chance of the smaller 
sampling size creating strata with no usable tests. Id. at 13. Mail 
characteristic stratification are defined uniformly at the national 
level, and sample data would be pooled across sample areas to ensure a 
sufficient sample size for each of the twenty strata. Id. The Postal 
Service additionally proposes using a ratio estimator for the non-
digital sample using total reference volume across letters, flats, and 
parcels as the auxiliary variable to obtain national estimates from the 
sampled data. See id. Updates to the digital sample areas are limited 
to the same consolidation of sample areas, and an increase in the 
number of stratum from five to six. Id. at 16.
    Overall, the Postal Service proposes to reduce ODIS-RPW sample 
sizes from approximately 31,000 to 18,000 tests per quarter. Id. at 17. 
The Postal Service justifies this reduction by the proposed methodology 
changes and the fact that much of the Postal Service's mail product 
information, including RPW reporting, now comes from census source 
systems. Id. The Postal Service would prefer to begin the reduced 
sampling starting July 1, 2021. Id.
    Rationale and impact. The Postal Service justifies the proposed 
changes to ODIS-RPW as a comprehensive design that would ``reduce 
sampling without compromising the integrity of the RPW program.'' Id. 
at 18. The Postal Service states that estimates from ODIS-RPW, when 
combined with census source RPW information, would provide reliable and 
consistent information. Id. The Postal Service conducted simulation 
studies of the impact of the proposed changes and compared the results 
to census source data, and provides a table that shows the affected 
lines of the RPW report. Id. at 18-20. The Postal Service states that 
coefficients of variability impacted by the proposed change would grow 
from 2.3 percent to 2.9 percent quarterly, and 1.2 percent to 1.4 
percent annually, noting that there is no universal standard for 
acceptable levels of variation. Id. at 20. The Postal Services states 
that it does not view the potential minor increases in variability for 
RPW reporting as a cause for concern, and further states that it sees 
little or no practical impact of its proposal on the accuracy or 
reliability of estimates generated for the RPW report. Id.

III. Notice and Comment

    The Commission establishes Docket No. RM2021-3 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 May 3, 2021. Pursuant to 39 U.S.C. 505, Manon Boudreault 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. RM2021-3 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 March 11, 2021.
    2. Comments by interested persons in this proceeding are due no 
later than May 3, 2021.\4\
---------------------------------------------------------------------------

    \4\ The Commission reminds interested persons that its revised 
and reorganized Rules of Practice and Procedure became effective 
April 20, 2020, and should be used in filings with the Commission 
after April 20, 2020. The new rules are available on the 
Commission's website and can be found in Order No. 5407. Docket No. 
RM2019-13, Order Reorganizing Commission Regulations and Amending 
Rules of Practice, January 16, 2020 (Order No. 5407).
---------------------------------------------------------------------------

    3. Pursuant to 39 U.S.C. 505, the Commission appoints Manon 
Boudreault 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.
Erica A. Barker,
Secretary.
[FR Doc. 2021-05831 Filed 3-22-21; 8:45 am]
BILLING CODE 7710-FW-P