[Federal Register Volume 89, Number 59 (Tuesday, March 26, 2024)]
[Notices]
[Pages 21019-21020]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-06269]


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POSTAL REGULATORY COMMISSION

[Docket No. PI2024-1; Order No. 7014]


Public Inquiry on Modification of Service Performance Measurement 
Plan

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recently filed Postal Service 
request proposing modifications to its Service Performance Measurement 
Plan for Market Dominant products and related measurement changes. This 
notice informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: April 3, 2024.

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: On March 18, 2024, the Postal Service filed 
a notice, pursuant to 39 CFR 3055.5, notifying the Commission of 
proposed modifications to its Service Performance Measurement (SPM) 
Plan for Market Dominant products and related measurement changes.\1\ 
The most recent version of the SPM Plan that is the subject of this 
proceeding was approved

[[Page 21020]]

for implementation on July 18, 2022, in Docket No. PI2022-3.\2\ 
Accompanying the Notice is a library reference, which contains a copy 
of the Postal Service's SPM Plan, revised March 18, 2024 (both redline 
and clean versions).\3\ The Postal Service intends to implement its 
proposed modifications ``no earlier than 30 days after the filing of 
this Notice with the Commission.'' Notice at 2.
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    \1\ United States Postal Service Notice of Filing Changes to 
Service Performance Measurement Plan Document, March 18, 2024 
(Notice).
    \2\ On July 18, 2022, the Commission approved the Postal 
Service's proposed modifications to the Service Performance 
Measurement Plan, except for the proposed change to the critical 
entry times (CET) for Periodicals because the Postal Service was 
first required to file a request for an advisory opinion pursuant to 
39 U.S.C. 3661(b) and in accordance with 39 CFR part 3020. Docket 
No. PI2022-3, Order Directing the Postal Service to Request an 
Advisory Opinion Prior to Implementing its Proposed Change to the 
Critical Entry Times for Periodicals and Approving the Other 
Proposed Revisions to Market Dominant Service Performance 
Measurement Plan, July 18, 2022, at 26-27 (Order No. 6232). As 
directed on September 2, 2022, the Postal Service filed the request 
for an advisory opinion from the Commission. Docket No. N2022-2, 
United States Postal Service's Request for an Advisory Opinion on 
Changes in the Nature of Postal Services, September 2, 2022. On 
November 30, 2022, the Commission provided its written advisory 
opinion. Docket No. N2022-2, Advisory Opinion on Changes to the 
Critical Entry Times for Certain Categories of Periodicals, November 
30, 2022.
    \3\ Library Reference USPS-LR-PI2024-1/1, March 18, 2024.
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    The Postal Service explains that the two principal changes it is 
proposing are related to the measurement of Single-Piece First-Class 
Mail. Id. at 1. Specifically, the Postal Service proposes to: ``(1) 
apply a data-driven approach to collection box density and origin 
proportion referential data; and (2) enhance SPM to align First Mile 
samples and retail pieces to their relative service standard service 
standard and apply these profiles to corresponding census originating 
volume.'' Id. The Postal Service also proposes ``other minor revisions, 
including word choice and grammar.'' Id.
    The Postal Service states that SPM currently relies on ``collection 
box density referential data to determine sampling targets and origin 
proportion referential data to align collection samples and retail 
pieces to Single-Piece First-Class Mail originating volume.'' Id. at 3. 
Collection box density data are based on the results of a Collection 
Box Density Test performed by mail carriers once a year, which, the 
Postal Service contends, does not capture seasonal variations in the 
data. Id. The data are also currently input manually, which the Postal 
Service maintains is ``subject to potential data input error.'' Id. The 
Postal Service states that ``deficiencies in the accuracy and 
representativeness of this data were validated through sample 
randomized collection box inspections conducted in 2024 that showed 
large variations in the observed collection box density relative to the 
referential data.'' Id. Therefore, the Postal Service proposes using 
``return address information as an alternative data source to improve 
the accuracy of density reference data in First Mile measurement.'' Id. 
at 4.
    Similarly, the Postal Service states that origin proportion 
referential data is currently ``determined by estimating the origin 
volume proportion that a ZIP Code represents of its district for a 
given mail product by using USPS delivery point data as a proxy for 
where volume originates.'' Id. The Postal Service states that this 
``proxy approach does not accurately reflect the decline in mail volume 
and changes in customer behavior in the past decade,'' because it 
``gives weight equally to all delivery points during volume 
proportioning, which does not reflect the reality that geographies 
where businesses are located may have more volumes but less delivery 
points.'' Id. The Postal Service therefore proposes replacing the 
existing origin proportion referential data with return address data 
captured by mail processing equipment. Id. at 5. For both collection 
box density and origin proportion referential data, the Postal Service 
states that it intends to automate the generation and integration of 
return address data into the SPM system each quarter. Id.
    With respect to aligning First Mile samples and retail pieces to 
their relative service standard, the Postal Service states that 
``[c]urrently, there is one combined First Mile profile across all 
service standards, which is then equally applied to the census 
originating volume data for each service standard.'' Id. The Postal 
Service states that ``a more granular measurement and reporting 
approach is needed to ensure the accuracy and representativeness of SPM 
First Mile calculations.'' Id. Therefore, the Postal Service proposes 
to ``update the SPM system to create separate First Mile profiles by 
service standard and align to corresponding census originating volume 
for that service standard.'' Id. at 5-6.
    Interested persons are invited to comment on the Postal Service's 
proposed modifications to its SPM Plan and related measurement changes. 
Comments are due April 3, 2024. The Commission does not anticipate the 
need for reply comments at this time. The Commission intends to 
evaluate the comments received and use those suggestions to help carry 
out its service performance measurement responsibilities under Title 39 
of the United States Code. Material filed in this docket will be 
available for review on the Commission's website, http://www.prc.gov. 
The Commission appoints Nikki Brendemuehl to represent the interests of 
the general public (Public Representative) in this docket.
    It is ordered:
    1. Docket No. PI2024-1 is established for the purpose of 
considering the Postal Service's proposed revisions to its Service 
Performance Measurement Plan for Market Dominant products and related 
measurement changes.
    2. Interested persons may submit written comments on any or all 
aspects of the Postal Service's proposals no later than April 3, 2024.
    3. Nikki Brendemuehl is designated to represent the interests of 
the general public (Public Representative) in this docket.
    4. The Secretary shall arrange for publication of this Notice in 
the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2024-06269 Filed 3-25-24; 8:45 am]
BILLING CODE 7710-FW-P