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Code of Federal Regulations (Last Updated: October 10, 2024) |
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Title 39 - Postal Service |
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Chapter III - Postal Regulatory Commission |
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SubChapter A - Personnel |
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Part 3020 - Product Lists |
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Subpart E - Requests Initiated by the Postal Service To Make Material Changes or Minor Corrections to the Mail Classification Schedule |
§ 3020.93 - Implementation.
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(a) The Commission shall review the proposed changes to product descriptions, and the comments thereon. So long as such changes are not inconsistent with 39 U.S.C. 3642, the Commission shall, subject to editorial corrections, change the Mail Classification Schedule to coincide with the effective date of the proposed change.
(b) The Commission's finding that changes to the product descriptions are not inconsistent with 39 U.S.C. 3642 is provisional and subject to subsequent review.
Pt. 3020, Subpt. E, Nt. Effective Date Note: At 80 FR 35575, June 22, 2015, subpart E was revised, effective July 22, 2015. For the convenience of the user, the revised text is set forth as follows:
Subpart E—Requests Initiated by the Postal Service To Make Material Changes or Minor Corrections to the Mail Classification Schedule § 3020.80 Material changes to product descriptions. (a) Whenever the Postal Service proposes material changes to a product description in the Mail Classification Schedule, no later than 30 days prior to implementing the proposed changes, it shall submit to the Commission a request to change the product description in the Mail Classification Schedule.
(b) The request shall:
(1) Include a copy of the applicable sections of the Mail Classification Schedule and the proposed changes therein in legislative format; and
(2) Provide all supporting justification for the changes upon which the Postal Service proposes to rely.
§ 3020.81 Supporting justification for material changes to product descriptions. (a) Supporting justification for changes to a product description in the Mail Classification Schedule shall include a description of, and rationale for, the proposed changes to the product description; and the additional
material in paragraphs (b) and (c) of this section. (b)(1) As to market dominant products, explain why the changes are not inconsistent with each requirement of 39 U.S.C. 3622(d) and part 3010 of this chapter; or
(2) As to competitive products, explain why the changes will not result in the violation of any of the standards of 39 U.S.C. 3633 and part 3015 of this chapter.
(c) Describe the likely impact that the changes will have on users of the product and on competitors.
§ 3020.82 Docket and notice of material changes to product descriptions. (a) The Commission shall take the actions identified in paragraphs (b) through (e) of this section.
(b) Establish a docket for each request to change a product description in the Mail Classification Schedule;
(c) Publish notice of the request on its Web site;
(d) Designate an officer of the Commission to represent the interests of the general public in the docket; and
(e) Provide interested persons with an opportunity to comment on whether the proposed changes are consistent with title 39 and applicable Commission regulations.
§ 3020.83 Commission review of material changes to product descriptions. (a) The Commission shall review the request and any comments filed. The Commission shall take one of the actions identified in paragraphs (b) through (g) of this section.
(b) Approve the proposed changes, subject to editorial corrections, and change the Mail Classification Schedule to coincide with the effective date of the proposed change;
(c) Reject the proposed changes;
(d) Provide the Postal Service with an opportunity to amend the proposed changes;
(e) Direct the Postal Service to make an appropriate filing under a different section;
(f) Institute further proceedings; or
(g) Direct other action that the Commission considers appropriate.
§§ 3020.84-3020.89 [Reserved] § 3020.90 Minor corrections to product descriptions. (a) The Postal Service shall ensure that product descriptions in the Mail Classification Schedule accurately represent the current offerings of the Postal Service.
(b) The Postal Service shall submit minor corrections to product descriptions in the Mail Classification Schedule by filing notice with the Commission no later than 15 days prior to the effective date of the proposed corrections.
(c) The notice shall:
(1) Explain why the proposed corrections do not constitute material changes to the product description for purposes of § 3020.80;
(2) Explain why the proposed corrections are consistent with any applicable provisions of title 39; and
(3) Include a copy of the applicable sections of the Mail Classification Schedule and the proposed corrections therein in legislative format.
§ 3020.91 Docket and notice of minor corrections to product descriptions. (a) The Commission shall take the actions identified in paragraphs (b) through (e) of this section.
(b) Establish a docket for each proposal to correct a product description in the Mail Classification Schedule;
(c) Publish notice of the proposal on its Web site;
(d) Designate an officer of the Commission to represent the interests of the general public in the docket; and
(e) Provide interested persons with an opportunity to comment on whether the proposed corrections are consistent with title 39 and applicable Commission regulations.
§ 3020.92 Commission review of minor corrections to product descriptions. (a) The Commission shall review the notice and any comments filed. The Commission shall take one of the actions identified in paragraphs (b) through (g) of this section.
(b) Approve the proposed corrections, subject to editorial corrections, and change the Mail Classification Schedule to coincide with the effective date of the proposed change;
(c) Reject the proposed corrections;
(d) Provide the Postal Service with an opportunity to amend the proposed corrections;
(e) Direct the Postal Service to make an appropriate filing under a different section;
(f) Institute further proceedings; or
(g) Direct other action that the Commission considers appropriate.
Subpart F—Size and Weight Limitations for Mail Matter § 3020.110 General. Applicable size and weight limitations for mail matter shall appear in the Mail Classification Schedule as part of the description of each product.
§ 3020.111 Limitations applicable to market dominant mail matter. (a) The Postal Service shall inform the Commission of updates to size and weight limitations for market dominant mail matter by filing notice with
the Commission 45 days prior to the effective date of the proposed update. The notice shall include a copy of the applicable sections of the Mail Classification Schedule and the proposed updates therein in legislative format. (b) The Commission shall provide notice of the proposed update in the
Federal Register and seek public comment on whether the proposed update is in accordance with the policies and the applicable criteria of chapter 36 of title 39 of the United States Code.(c) If the Commission finds the proposed update in accordance with the policies and the applicable criteria of chapter 36 of 39 U.S.C., the Commission shall review the proposed Mail Classification Schedule language for formatting and conformance with the structure of the Mail Classification Schedule, and subject to editorial changes, shall change the Mail Classification Schedule to coincide with the effective date of the proposed update.
(d) If the Commission finds the proposed update not in accordance with the policies and the applicable criteria of chapter 36 of title 39 of the United States Code, the Commission may direct other action as deemed appropriate.
§ 3020.112 Limitations applicable to competitive mail matter. The Postal Service shall notify the Commission of updates to size and weight limitations for competitive mail matter pursuant to subpart E of this part.
Pt. 3025 PART 3025—RULES FOR APPEALS OF POSTAL SERVICE DETERMINATIONS TO CLOSE OR CONSOLIDATE POST OFFICES Sec. 3025.1 Definitions. 3025.2 Applicability. 3025.3 Notice by the Postal Service. 3025.10 Starting an appeal. 3025.11 Submitting an appeal and other documents. 3025.12 Duplicate appeals. 3025.13 Deadlines for appeals. 3025.14 Participation by others. 3025.20 The record on review. 3025.21 Filing of the administrative record. 3025.22 Making documents available for inspection by the public. 3025.30 Suspension pending review. 3025.40 Participant statement. 3025.41 Due date for participant statement. 3025.42 Due date for Postal Service response. 3025.43 Due date for replies to the Postal Service. Authority: 39 U.S.C. 404(d).
Source: 77 FR 6679, Feb. 9, 2012, unless otherwise noted.
§ 3025.1 Definitions. The following definitions apply in this part:
(a)
Final determination means the written determination and findings required by 39 U.S.C. 404(d)(3).(b)
Petitioner means a person who files a Petition for Review.(c)
Petition for Review means a written document that the Commission accepts as an appeal of a post office closing or consolidation.§ 3025.2 Applicability. (a) The rules in this part apply when:
(1) The Postal Service decides to close or consolidate a post office, and
(2) A patron of that post office appeals the closing or consolidation.
(b) The following sections in part 3001, subpart A of this chapter, apply to appeals of post office closings or consolidations: §§ 3001.1 through 3001.9 of this chapter; § 3001.11(a) of this chapter, § 3001.11(c) through (f) of this chapter; §§ 3001.12 through 3001.17 of this chapter; and §§ 3001.21 and 3001.22 of this chapter.
(c) Answers to motions filed by the Postal Service are due within 10 days.
§ 3025.3 Notice by the Postal Service. (a) Pursuant to section 404(d) of title 39, United States Code, any decision to close or consolidate a post office must be preceded by 60 days' notice to persons served by such post office, the opportunity for such persons to present their views, and a written determination based upon consideration of each of the factors listed in section 404(d)(2) of title 39, United States Code.
(b) This notice must include a provision stating that, pursuant to section 404(d)(5) of title 39, United States Code, a final Postal Service determination to close or consolidate a post office may be appealed by any person served by
such office to the Postal Regulatory Commission at 901 New York Avenue NW., Suite 200, Washington, DC 20268-0001, within 30 days after such determination is made available to such person by the Postal Service. § 3025.10 Starting an appeal. (a) A Postal Service decision to close or consolidate a post office may be appealed only by a person served by that office. An appeal is commenced by submitting a Petition for Review to the Postal Regulatory Commission.
(b) The Petition for Review must state that the person(s) submitting it is/are served by the post office that the Postal Service has decided to close or consolidate. The petition should include the name(s) and address(es) of the person(s) filing it and the name or location of the post office to be closed or consolidated. A petitioner may include other information deemed pertinent.
§ 3025.11 Submitting an appeal and other documents. Petitions for Review, comments, motions, answers, and other documents may be submitted by persons other than the Postal Service by mail, electronically through the Commission's Web site,
http://www.prc.gov, or by delivery to the Commission's offices at 901 New York Avenue NW., Suite 200, Washington, DC 20268-0001.§ 3025.12 Duplicate appeals. If the Commission receives more than one Petition for Review of the same post office closing or consolidation, the petitions will be considered in a single docket.
§ 3025.13 Deadlines for appeals. (a)
In general. If the Postal Service has issued a final determination to close or consolidate a post office, an appeal is due within 30 days of the final determination being made available in conformance with § 3025.3(b).(b)
Appeals sent by mail. If sent by mail, a Petition for Review must be postmarked no later than 30 days after the final determination has been made available.(c)
Appeals sent by other physical delivery. If sent by some other form of physical delivery, a Petition for Review must be received in the Commission's Docket Section no later than 4:30 p.m., eastern time, on the 30th day after the final determination has been made available.(d)
Appeals sent electronically. If submitted electronically, a Petition for Review must be received in the Commission's Docket Section no later than 4:30 p.m., eastern time, on the 30th day after the final determination has been made available.§ 3025.14 Participation by others. (a) A person served by the post office to be closed or consolidated pursuant to the Postal Service written determination under review who desires to intervene in the proceeding, or any other interested person, or any counsel, agent, or other person authorized or recognized by the Postal Service as such interested person's representative or the representative of such interested person's recognized group, such as Postmasters, may participate in an appeal by sending written comments to the Postal Regulatory Commission in the manner described in § 3025.11.
(b) Persons may submit comments supporting or opposing a Commission order returning the entire matter to the Postal Service for further consideration. Comments must be filed in accordance with the deadlines established in §§ 3025.41 through 3025.43. Commenters may use PRC Form 61, which is available on the Commission's Web site,
http://www.prc.gov. § 3025.20 The record on review. (a) The record on review includes:
(1) The final determination;
(2) The notices to persons served by the post office to be closed or consolidated;
(3) The administrative record; and
(4) All documents submitted in the appeal proceeding.
(b) The record shall contain all evidence considered by the Postal Service in making its determination and shall contain no evidence not previously considered by the Postal Service.
§ 3025.21 Filing of the administrative record. The Postal Service shall file the administrative record within 10 days of the date of posting of a Petition for Review on the Commission's Web site. The Commission may alter this time for good cause. The Secretary will notify participants that they may view the administrative record at post offices where the final determination was posted.
§ 3025.22 Making documents available for inspection by the public. Copies of all filings (including the administrative record) related to an appeal shall be available for public inspection at the post offices where the final determination was posted. The Secretary will notify participants that they may view copies of filings at post offices where the final determination was posted.
§ 3025.30 Suspension pending review. (a)
Application. Application for suspension of a determination of the Postal Service to close or consolidate any post office pending the outcome of an appeal to the Postal Regulatory Commission shall be made at the time of the filing of a Petition for Review. The application shall show the reasons for the relief requested and the facts relied upon, and if the facts are subject to dispute the application shall be supported by affidavits or other sworn statements or copies thereof. The applicant must be a person served by the affected post office. Immediate notice of the application shall be given to all parties to the proceeding. The application shall be filed with the Secretary of the Commission.(b)
Answer and filing of the relevant record by the Postal Service. Within 10 days after the application for suspension is filed, the Postal Service shall file with the Secretary of the Commission and serve on the petitioners an answer to the application supported by affidavits or other sworn statements or copies thereof.§ 3025.40 Participant statement. (a) When a timely Petition for Review of a decision to close or consolidate a post office is filed, the Secretary shall furnish petitioner with a copy of PRC Form 61. This form is designed to inform petitioners on how to make a statement of his/her arguments in support of the petition.
(b) The instructions for PRC Form 61 shall provide:
(1) A concise explanation of the purpose of the form;
(2) A copy of section 404(d)(2)(A) of title 39, United States Code; and
(3) Notification that, if petitioner prefers, he or she may file a brief in lieu of or in addition to completing PRC Form 61.
§ 3025.41 Due date for participant statement. The statement or brief of petitioner and of any other participant seeking to have the Commission return the entire matter to the Postal Service for further consideration, shall be filed not more than 20 days after the filing of the administrative record.
§ 3025.42 Due date for Postal Service response. The statement or brief of the Postal Service, and of any other participant opposing return of the matter for further consideration, shall be filed not more than 14 days after the date for filing of petitioner's statement.
§ 3025.43 Due date for replies to the Postal Service. Petitioner, and any other participant seeking to have the Commission return the matter for further consideration, may file a reply to the Postal Service response not more than 10 days after the date of the Postal Service response. Replies are limited to issues discussed in the responses of the Postal Service and other participants seeking affirmation of the Postal Service determination.
Pt. 3030 PART 3030—RULES FOR COMPLAINTS Subpart A—General Sec. 3030.1 Applicability. 3030.2 Scope and nature of complaints. Subpart B—Form and Manner Requirements of Initial Pleadings 3030.10 Complaint contents. 3030.11 Service. 3030.12 Pleadings filed in response to a complaint. 3030.13 Conditions for applying rate or service inquiry procedures to complaints. 3030.14 Answer contents. Subpart C—Supplemental Information 3030.20 Sufficiency of information. 3030.21 Investigator. Subpart D—Proceedings 3030.30 Beginning proceedings on complaints. Subpart E—Settlement 3030.40 Policy on settlement. 3030.41 Satisfaction. Subpart F—Commission Determinations and Relief 3030.50 Remedies. Authority: 39 U.S.C. 503; 3662.
Source: 74 FR 16744, Apr. 10, 2009, unless otherwise noted.
Subpart A—General § 3030.1 Applicability. (a) The rules in this part govern the procedure for complaints filed under 39 U.S.C. 3662 that meet the form and manner requirements of subpart B of this part. Part 3001, subpart A of this chapter, applies unless otherwise stated in this part or otherwise ordered by the Commission.
(b) Sections 3001.25 through 27 of this chapter and § 3001.33 of this chapter do not apply to this part unless and until the Commission makes a finding under § 3030.30(a)(1) that the complaint raises material issues of fact or law.
§ 3030.2 Scope and nature of complaints. Any interested person (including a duly appointed officer of the Commission representing the interests of the general public) may file a written complaint with the Commission if that person believes that the Postal Service is not operating in conformance with:
(a) The provisions of 39 U.S.C. chapter 36, or 39 U.S.C. 101(d), 401(2), 403(c), 404a, or 601; or
(b) Any rule, order, or other regulatory requirement based on any of these statutory provisions.
Subpart B—Form and Manner Requirements of Initial Pleadings § 3030.10 Complaint contents. (a) A complaint must:
(1) Set forth the facts and circumstances that give rise to the complaint;
(2) Clearly identify and explain how the Postal Service action or inaction violates applicable statutory standards or regulatory requirements including citations to the relied upon section or sections of title 39, order, regulation, or other regulatory requirements;
(3) Set forth the business, commercial, economic or other issues presented by the action or inaction as such relate to the complainant;
(4) Include a description of persons or classes of persons known or believed to be similarly affected by the issues involved in the complaint, if applicable;
(5) State the nature of the evidentiary support that the complainant has or expects to obtain during discovery to support the facts alleged in the complaint;
(6) Include an explanation as to why such facts could not reasonably be ascertained by the complainant where claims are premised on information and belief;
(7) State whether the issues presented are pending in or have been resolved by an existing Commission proceeding or a proceeding in any other forum in which the complainant is a party; and if so, provide an explanation why timely resolution cannot be achieved in that forum;
(8) State the specific relief or remedy requested and the basis for that relief; and
(9) Include a certification that states that prior to filing, the complainant attempted to meet or confer with the Postal Service's general counsel to resolve or settle the complaint, why the complainant believes additional such steps would be inadequate, and the reasons for that belief; and
(10) Include a certification that the complaint has been served on the United States Postal Service as required by § 3030.11.
(b) The Commission may waive any of the requirements listed in paragraph (a) of this section to serve the interests of justice.
§ 3030.11 Service. Any person filing a complaint must simultaneously serve a copy of the complaint on the Postal Service at the following address:
PRCCOMPLAINTS@usps.gov. A complaint is not deemed filed until it is served on the Postal Service. A waiver may be obtained pursuant to § 3001.9(a) of this chapter.[74 FR 54755, Oct. 23, 2009] § 3030.12 Pleadings filed in response to a complaint. (a) Unless otherwise ordered by the Commission, the Postal Service shall file its answer to a complaint within 20 days after the complaint is filed.
(b) If appropriate, the Postal Service may file a dispositive motion or otherwise move to delay disposition of the complaint. If the Postal Service files such a motion, unless otherwise ordered by the Commission, the period of time for filing its answer is altered as follows:
(1) If the Commission denies the motion or postpones disposition, the answer is due within 10 days of the Commission's action; or
(2) If the Commission invokes the rate or service inquiry special procedures under § 3030.13 to the complaint, the answer is due contemporaneously with the Postal Service's report under § 3031.11 of this chapter if the complaint has not been resolved by that date.
(c) If the Postal Service answer is delayed by the filing of a motion under paragraph (b) of this section, it may not obtain a further delay by filing another motion under paragraph (b) of this section raising an issue or objection that was available to the Postal Service but omitted from its earlier motion.
§ 3030.13 Conditions for applying rate or service inquiry procedures to complaints. (a) This section applies to complaints that concern rate or service matters that are isolated incidents affecting few mail users provided that the complaint does not either:
(1) Raise unfair competition issues;
(2) Raise issues affecting a significant number of mail users;
(3) Represent a pattern, practice, or systemic issue that affects a significant number of mail users (or is reasonably likely to be evidence that such a pattern has begun); or
(4) Impact a substantial region of the nation.
(b) The Commission may in its discretion,
sua sponte , attempt to resolve a complaint through the rate or service inquiry procedures of § 3031.11 of this chapter if the Commission finds that there is a reasonable likelihood that such procedures may result in resolution of the complaint. The Commission will issue an order to apply the procedures of § 3031.11 of this chapter prior to the due date for the Postal Service answer set forth in § 3030.12.(c) If the Commission determines that application of paragraph (a) of this section is appropriate and the Postal Service is unable to resolve the complaint within 45 days, or such other period of time as ordered by the Commission, the Postal Service shall file its answer in accordance with § 3030.12(b)(2).
§ 3030.14 Answer contents. (a) An answer must:
(1) Contain a clear and concise statement of any disputed factual allegations upon which the answer relies;
(2) Contain a clear and concise statement of any legal interpretation upon which the answer relies;
(3) Admit or deny, specifically and with explanatory detail, each material factual allegation of the complaint. Denials based on information and belief must include an explanation as to why such facts could not reasonably be ascertained by the Postal Service prior to filing the answer. Each fact alleged in a complaint not thus specifically answered shall be deemed to have been admitted;
(4) Set forth every defense relied upon. The answer shall advise the complainant and the Commission fully and completely of the nature of any defense, including factual allegations and law upon which the Postal Service relies. Affirmative defenses shall be specifically captioned as such and presented separately from any denials;
(5) State the nature of the evidentiary support that the Postal Service has or expects to obtain to support its factual allegations and defenses; and
(6) Include a certification that states that prior to the filing of its answer, the Postal Service met or conferred with the complainant to resolve or settle the complaint, whether the Postal Service believes additional such steps would be inappropriate and the reasons for that belief.
(b) The Commission may waive any of the requirements listed in paragraph (a) of this section to serve the interests of justice.
Subpart C—Supplemental Information § 3030.20 Sufficiency of information. If, after review of the information submitted pursuant to this part, the Commission determines that additional information is necessary to enable it to evaluate whether the complaint raises material issues of fact or law, the Commission shall, in its discretion, either require the complainant and/or the Postal Service to provide additional information as deemed necessary, issue an appropriate order to appoint an investigator in accordance with § 3030.21, or do both.
§ 3030.21 Investigator. The Commission may appoint an investigator to examine issues raised by the complaint and responses thereto. The investigator will use appropriate due diligence under the circumstances and provide a public, written report to the Commission.
Subpart D—Proceedings § 3030.30 Beginning proceedings on complaints. (a) Within 90 days after receiving a properly filed complaint under this part, the Commission will issue:
(1) A notice and order in accordance with § 3001.17 of this chapter that finds the complaint raises one or more material issues of fact or law and begin proceedings on the complaint; or
(2) An order dismissing the complaint.
(b) Orders issued pursuant to paragraph (a) of this section shall include the Commission's written statement setting forth the bases of its determination.
(c) Contemporaneously with, or shortly after issuing a notice and order under paragraph (a)(1) of this section, the Commission will appoint a public representative to represent the interests of the general public in the complaint proceeding.
Subpart E—Settlement § 3030.40 Policy on settlement. It shall be the general policy and practice of the Commission to encourage alternative dispute resolution and settlement of complaints by informal procedures, such as correspondence, conferences between the parties, and the conduct of proceedings off the record with the consent of the parties.
§ 3030.41 Satisfaction. (a) If a complaint is resolved informally, in whole or in part, subsequent to Commission action under § 3030.30(a)(1), the complainant must promptly file:
(1) A statement explaining the resolution; and
(2) A motion to dismiss or amend the complaint based on the resolution.
(b) The Commission may order the submission of additional information before acting on any motion filed under paragraph (a)(2) of this section.
(c) In determining whether to allow the complaint to be dismissed or amended under this section, the Commission will take into consideration
whether the issues raised by the complaint may continue to impact a significant segment of the mailing community. Subpart F—Commission Determinations and Relief § 3030.50 Remedies. (a) If the Commission finds that a complaint is justified, it will order that the Postal Service take such action as the Commission determines appropriate to:
(1) Achieve compliance with the applicable requirements; and
(2) Remedy the effects of any non-compliance.
(b) If the Commission finds deliberate non-compliance on the part of the Postal Service, the Commission may order, based on the nature, circumstances, extent, and seriousness of the non-compliance, a fine for each incidence of non-compliance.
(c) In any case where the Commission is considering the extraordinary relief described in paragraph (b) of this section, the Commission will provide notice to the participants that such relief is being considered. It will allow the participants a reasonable opportunity to comment and present aggravating and mitigating factors for its consideration.
Pt. 3031 PART 3031—RULES FOR RATE OR SERVICE INQUIRIES Subpart A—Rate or Service Inquiry Forms and Procedures Sec. 3031.10 Rate or service inquiry contents. 3031.11 Rate or service inquiry procedures. 3031.12 Treatment as a complaint. Subpart B [Reserved] Authority: 39 U.S.C. 503, 3662.
Source: 74 FR 16746, Apr. 10, 2009, unless otherwise noted.
Subpart A—Rate or Service Inquiry Forms and Procedures § 3031.10 Rate or service inquiry contents. (a) A rate or service inquiry shall be in writing and should contain:
(1) The name, address, and telephone number of the inquiring party;
(2) Details regarding the Postal Service's action or inaction;
(3) A statement of facts supporting the inquiring party's allegations; and
(4) The specific relief being sought, if any.
(b) The Commission may waive any of the requirements listed in paragraph (a) of this section to serve the interests of justice.
§ 3031.11 Rate or service inquiry procedures. (a) The Commission will forward rate or service inquiries to the Postal Service for investigation. The Postal Service will, within 45 days of receipt of such inquiry, advise the Commission in writing, with a copy to the inquiring party, of its resolution of the inquiry or its refusal or inability to do so.
(b) The Commission will monitor all rate or service inquiries to determine if Commission action under § 3031.12 is appropriate.
(c) Where there are clear indications from the Postal Service's report or from other communications between the parties that the inquiry has been resolved, the Commission may, in its discretion, consider such proceeding to be resolved, without response to the inquiring party.
§ 3031.12 Treatment as a complaint. If the Commission receives a volume of rate or service inquiries on the same or similar issue such that there may be cause to warrant treatment as a complaint, it may appoint an investigator to review the matter under § 3030.21 of this chapter or appoint a public representative representing the interests of the general public to pursue the matter.
Subpart B [Reserved] Pt. 3032 PART 3032—SPECIAL RULES FOR COMPLAINTS ALLEGING VIOLATIONS OF 39 U.S.C. 404 a Subpart A—General Sec. 3032.1 Applicability. 3032.2-3032.4 [Reserved] Subpart B—Requirements and Defenses 3032.5 Postal Service rules that create an unfair competitive advantage. 3032.6 Disclosure, transfer, and licensing of intellectual property. 3032.7 Unlawfully obtaining information. 3032.8 Statutorily authorized affirmative defense. Authority: 39 U.S.C. 404a; 3662.
Source: 79 FR 62294, Oct. 16, 2014, unless otherwise noted.
Subpart A—General § 3032.1 Applicability. The rules in this part govern proceedings filed under 39 U.S.C. 3662 alleging violations of 39 U.S.C. 404a that meet the requirements of §§ 3030.2 and 3030.10 of this chapter.
§§ 3032.2-3032.4 [Reserved] Subpart B—Requirements and Defenses § 3032.5 Postal Service rules that create an unfair competitive advantage. (a) A complaint alleging a violation of 30 U.S.C. 404(a)(a)(1) must show that a Postal Service rule, regulation, or standard has the effect of:
(1) Precluding competition; or
(2) Establishing the terms of competition.
(b) As an affirmative defense to a complaint under 39 U.S.C. 404a(a)(1), the Postal Service may demonstrate that the rule, regulation, or standard at issue does not create an unfair competitive advantage for itself or any entity funded, in whole or in part, by the Postal Service.
(c) As used in this section, the term
rule, regulation, or standard includes, among other things, documents or policies issued by the Postal Service to exercise its regulatory authority or otherwise act as a governmental entity.§ 3032.6 Disclosure, transfer, and licensing of intellectual property. (a) A complaint alleging a violation of 39 U.S.C. 404a(a)(2) must show that the Postal Service has compelled or attempted to compel the disclosure, transfer, or licensing of the intellectual property of the person filing the complaint to a third party.
(b) As used in this section, the term
intellectual property includes, among other things, patents, copyrights, trademarks, trade secrets, and proprietary information.(c) As used in this section, the term
disclosure, transfer, or licensing of intellectual property includes, among other things, an action that has an adverse effect on the value of intellectual property.§ 3032.7 Unlawfully obtaining information. (a) A complaint alleging a violation of 39 U.S.C. 404a(a)(3) must show that:
(1) The person filing the complaint has provided or sought to provide a product;
(2) The Postal Service obtained information about such product from the person filing the complaint; and
(3) The Postal Service offers or offered a postal service that uses or is based, in whole or in part, on the information obtained from the person filing the complaint.
(b) As an affirmative defense to a complaint under 39 U.S.C. 404a(a)(3), the Postal Service may demonstrate that substantially the same information was obtained (or was obtainable) from an independent source or is otherwise obtained (or obtainable) through lawful means.
(c) As an affirmative defense to a complaint under 39 U.S.C. 404a(a)(3), the Postal Service may show that the information obtained was provided by written consent.
§ 3032.8 Statutorily authorized affirmative defense. (a) As an affirmative defense to an allegation of a violation of 39 U.S.C.
404a(a), the Postal Service may demonstrate that it is specifically authorized by law to take the action or inaction alleged to be a violation of that section. (b) Authority under 39 U.S.C. 401 or 39 U.S.C. 404 may not form the basis of an affirmative defense under paragraph (a) of this section.
(c) Paragraph (b) of this section does not preclude the Postal Service from arguing that a particular Postal Service regulation or other action (or inaction) does not have the requisite effect to violate 39 U.S.C. 404a(a).
Pt. 3035 PART 3035—RULES FOR MARKET TESTS OF EXPERIMENTAL PRODUCTS Sec. 3035.1 Applicability. 3035.2 Advance notice. 3035.3 Contents of notice. 3035.4 Review. 3035.5 Commission action. 3035.6 Changes in market test. 3035.7-3035.9 [Reserved] 3035.10 Duration. 3035.11 Extension of market test. 3035.12 Cancellation of market test. 3035.13-3035.14 [Reserved] 3035.15 Dollar amount limitation. 3035.16 Exemption from dollar amount limitation. 3035.17 Prevention of market disruption. 3035.18 Filing for permanent product status. 3035.19 [Reserved] 3035.20 Data collection and reporting requirements. Authority: 39 U.S.C. 3641.
Source: 79 FR 54563, Sept. 11, 2014, unless otherwise noted.
§ 3035.1 Applicability. The rules in this part apply to market tests of experimental products undertaken pursuant to 39 U.S.C. 3641.
§ 3035.2 Advance notice. The Postal Service shall file notice with the Commission of its determination to initiate a market test at least 30 days before initiating the market test.
§ 3035.3 Contents of notice. (a) Notices of proposed market tests shall include:
(1) The basis for the Postal Service's determination that the market test is governed by 39 U.S.C. 3641, which shall:
(i) Describe, from the viewpoint of mail users, how the experimental product is significantly different from all products offered by the Postal Service within the 2 fiscal years preceding the start of the market test;
(ii) Establish that the introduction or continued offering of the experimental product will not create an unfair or otherwise inappropriate competitive advantage for the Postal Service or any mailer, particularly in regard to small business concerns, as defined in § 3001.5(v) of this chapter; and
(iii) Identify the experimental product as either market dominant or competitive for purposes of the market test, and explain the reasoning for the categorization in accordance with the criteria set forth in 39 U.S.C. 3642(b)(1).
(2) A description of the nature and the scope of the market test that:
(i) Describes the market test and experimental product;
(ii) Demonstrates why the market test is not inconsistent with the requirements of 39 U.S.C. 3641;
(iii) Identifies the beginning and ending dates of the market test;
(iv) Describes the geographic market(s) where the market test may be conducted;
(v) Estimates the total revenue that is anticipated by the Postal Service for each fiscal year of the market test, including available supporting documentation; and
(vi) Includes a data collection plan for the market test, including a description of the specific data items to be collected. The minimum data collection plan requirements are described in § 3035.20.
§ 3035.4 Review. (a) The Commission will establish a docket for each market test initiated under this part, promptly publish a notice in the
Federal Register, and post the filing on its Web site. The notice shall:(1) Describe the general nature of the proceeding;
(2) Refer to the legal authority under which the proceeding is to be conducted;
(3) Identify an officer of the Commission to represent the interests of the general public in the docket;
(4) Specify a period for public comment; and
(5) Include such other information as the Commission deems appropriate.
(b) [Reserved]
§ 3035.5 Commission action. (a) The Commission shall review the Postal Service notice together with any comments for initial compliance with the statutory requirements of 39 U.S.C. 3641, and:
(1) Find that the market test is consistent with the requirements of 39 U.S.C. 3641;
(2) Find that the market test is inconsistent with the requirements of 39 U.S.C. 3641 and provide an opportunity to correct the identified deficiencies;
(3) Find that the market test is inconsistent with the requirements of 39 U.S.C. 3641 and order that the market test not go into effect; or
(4) Direct other action as the Commission may consider appropriate.
(b) [Reserved]
§ 3035.6 Changes in market test. (a) The Postal Service shall file a notice with the Commission describing each material change made to the market test or services offered under the market test at least 10 days before implementing such changes. Material changes are changes that may affect compliance with 39 U.S.C. 3641 and include, without limitation, adjustments to prices, geographic scope, eligibility for service, and termination date.
(b) The Commission may, in its discretion, notice the filing and provide an opportunity for comment.
§§ 3035.7-3035.9 [Reserved] § 3035.10 Duration. A market test may not exceed 24 months in duration unless the Commission authorizes an extension pursuant to a request filed by the Postal Service under § 3035.11.
§ 3035.11 Extension of market test. (a) The Postal Service may request an extension of the duration of a market test, not to exceed an additional 12 months, if such an extension is necessary to determine the feasibility or desirability of a product being tested. The Postal Service must file a written request for extension with the Commission at least 60 days before the market test is scheduled to terminate.
(b) The request for extension shall:
(1) Explain why an extension is necessary to determine the feasibility or desirability of the experimental product;
(2) List the new end date for the market test;
(3) Calculate the total revenue received by the Postal Service from the market test for each fiscal year the market test has been in operation and provide supporting documentation for the calculations;
(4) Estimate the additional revenue that is anticipated by the Postal Service for each fiscal year remaining on the market test, including the requested extension period, and provide available supporting documentation; and
(5) Provide any additional information necessary for the Commission to evaluate the continued consistency with the requirements of 39 U.S.C. 3641.
(c) The Commission shall review the Postal Service request for extension to ensure that an extension is necessary in order to determine the feasibility or desirability of the experimental product and:
(1) Find that the extension is consistent with the requirements of 39 U.S.C. 3641;
(2) Find that the extension is inconsistent with the requirements of 39 U.S.C. 3641 and provide an opportunity to correct the identified deficiencies;
(3) Find that the extension is inconsistent with the requirements of 39 U.S.C. 3641 and deny the extension; or
(4) Direct other action as the Commission considers appropriate.
§ 3035.12 Cancellation of market test. (a) The Postal Service may cancel a market test at any time. It shall file notice of cancellation with the Commission within 10 days of cancelling the market test.
(b) Pursuant to 39 U.S.C. 3641(f), the Commission may direct the Postal
Service to demonstrate that the market test continues to meet the requirements of 39 U.S.C. 3641 and the Commission's rules. The Commission, in its discretion, may provide an opportunity for comments. (c) Based upon its review, the Commission may:
(1) Find that the market test is consistent with the requirements of 39 U.S.C. 3641;
(2) Find that the market test is inconsistent with the requirements of 39 U.S.C. 3641 and provide an opportunity to correct the identified deficiencies;
(3) Find that the market test is inconsistent with the requirements of 39 U.S.C. 3641 and cancel the market test; or
(4) Direct other action as the Commission may consider appropriate.
§§ 3035.13-3035.14 [Reserved] § 3035.15 Dollar amount limitation. (a) The Consumer Price Index used for calculations under this part is the CPI-U index, as specified in §§ 3010.21(a) and 3010.22(a) of this chapter.
(b) An experimental product may only be tested if total revenues that are anticipated or received by the Postal Service do not exceed $10,000,000 in any fiscal year, as adjusted for the change in the CPI-U index, as specified in paragraph (d) of this section ($10 Million Adjusted Limitation). Total revenues anticipated or received may exceed the $10 Million Adjusted Limitation in any fiscal year if an exemption is granted pursuant to § 3035.16.
(c) For each fiscal year, the $10 Million Adjusted Limitation shall reflect the average CPI result during the previous fiscal year calculated as described in paragraph (d) of this section. The Commission shall publish this figure annually, after the close of the fiscal year, on its Web site at
http://www.prc.gov. (d) The calculation of the $10 Million Adjusted Limitation involves the following steps. First, a simple average CPI-U index was calculated for fiscal year 2008 by summing the monthly CPI-U values from October 2007 through September 2008 and dividing the sum by 12 (Base Average). The resulting Base Average is 214.5. Then, a second simple average CPI-U index is similarly calculated for each subsequent fiscal year by summing the 12 monthly CPI-U values for the previous fiscal year and dividing the sum by 12 (Recent Average). Finally, the annual limitation for the current fiscal year is calculated by multiplying $10,000,000 by the Recent Average divided by 214.5. The result is expressed as a number, rounded to the nearest dollar.
(e) The formula for calculating the $10 Million Adjusted Limitation is as follows: $10 Million Adjusted Limitation = $10,000,000 * (Recent Average/214.5).
§ 3035.16 Exemption from dollar amount limitation. (a) The Postal Service may request an exemption from the $10 Million Adjusted Limitation by filing a written request with the Commission. In no instance shall the request for exemption exceed the market test dollar amount limitation of $50,000,000 in any fiscal year, as adjusted for the change in the CPI-U index, as specified in paragraph (c) of this section ($50 Million Adjusted Limitation).
(b) For each fiscal year, the $50 Million Adjusted Limitation shall reflect the average CPI result during the previous fiscal year calculated as described in paragraph (c) of this section. The Commission shall publish this figure annually, after the close of the fiscal year, on its Web site at
http://www.prc.gov. (c) The calculation of the $50 Million Adjusted Limitation involves the following steps. First, a simple average CPI-U index was calculated for fiscal year 2008 by summing the monthly CPI-U values from October 2007 through September 2008 and dividing the sum by 12 (Base Average). The resulting Base Average is 214.5. Then, a second simple average CPI-U index is similarly calculated for each subsequent fiscal year by summing the 12 monthly CPI-U values for the previous fiscal year and dividing the sum by 12 (Recent Average). Finally, the annual limitation for the current fiscal year is calculated by multiplying $50,000,000 by the Recent Average divided by 214.5. The result is expressed as a number, rounded to the nearest dollar.
(d) The formula for calculating the $50 Million Adjusted Limitation is as follows: $50 Million Adjusted Limitation = $50,000,000 * (Recent Average/214.5).
(e) The Postal Service shall file its request for exemption at least 45 days before it expects to exceed the $10 Million Adjusted Limitation.
(f) The request for exemption shall:
(1) Explain how the experimental product will:
(i) Benefit the public and meet an expected demand;
(ii) Contribute to the financial stability of the Postal Service; and
(iii) Not result in unfair or otherwise inappropriate competition;
(2) Calculate the total revenue received by the Postal Service from the market test for each fiscal year the market test has been in operation, and provide supporting documentation;
(3) Estimate the additional revenue that is anticipated by the Postal Service for each fiscal year remaining on the market test, including any extension period granted by the Commission in accordance with § 3035.11(c), and provide available supporting documentation; and
(4) Quantify the product specific costs associated with the development of the market test; that is, costs incurred before the market test is implemented.
(g) The Commission shall review the request for exemption for consistency with the statutory requirements of 39 U.S.C. 3641 and:
(1) Find that the exemption is consistent with the requirements of 39 U.S.C. 3641;
(2) Find that the exemption is inconsistent with the requirements of 39 U.S.C. 3641 and provide an opportunity to correct the identified deficiencies;
(3) Find that the exemption is inconsistent with the requirements of 39 U.S.C. 3641 and deny the exemption; or
(4) Direct other action as the Commission may consider appropriate.
§ 3035.17 Prevention of market disruption. Notwithstanding the $10 Million Adjusted Limitation or any adjustment granted pursuant to § 3035.16, the Commission may limit the amount of revenues the Postal Service may obtain from any particular geographic market as necessary to prevent the creation of an unfair or otherwise inappropriate competitive advantage for the Postal Service or any mailer, particularly in regard to small business concerns, as defined in § 3001.5(v) of this chapter.
§ 3035.18 Filing for permanent product status. (a) If the Postal Service determines to make an experimental product permanent, it shall file a request, pursuant to 39 U.S.C. 3642 and part 3020, subpart B of this chapter, to add a new product or price category to the market dominant or competitive product list. Requests to make existing experimental products permanent must be filed at least 60 days before the market test expires (including any extension period granted) or the market test exceeds any authorized adjusted limitation in any fiscal year, whichever is earlier.
(b) A request to make an experimental product permanent must, among other things, quantify the product specific costs associated with the development of the market test; that is, costs incurred before the market test is implemented.
(c) The Postal Service shall also file a notice of its request to make an experimental product permanent in the market test proceeding's docket. The notice shall include the applicable docket number(s) for the proceeding evaluating the request.
§ 3035.19 [Reserved] § 3035.20 Data collection and reporting requirements. (a) A notice of a market test shall include a data collection plan for the market test as required by § 3035.3(a)(2)(vi). Data collection plans shall include, at a minimum:
(1) The revenue by fiscal quarter received to date by the Postal Service from the market test;
(2) Attributable costs incurred in conducting the market test, including product specific costs related to the administration of the market test; and
(3) Volumes of the experimental product by fiscal quarter.
(b) The Commission may request additional information or data as it deems appropriate.
(c) To assess the potential impact of a market test in a particular geographic market, the Commission may require the Postal Service to report the revenues from the market test for specified geographic markets.
(d) The Postal Service shall file the information required by the data collection plan in data collection reports. Data collection reports must be filed within 40 days after the close of each fiscal quarter during which the market test is offered, or such other period as the Commission may prescribe.
(e) The Postal Service shall file in its Annual Compliance Report information on each market test conducted during the fiscal year pursuant to § 3050.21(h) of this chapter.
Pt. 3050 PART 3050—PERIODIC REPORTING Sec. 3050.1 Definitions applicable to this part. 3050.2 Documentation of periodic reports. 3050.3 Access to information supporting Commission reports or evaluations. 3050.10 Analytical principles to be applied in the Postal Service's annual periodic reports to the Commission. 3050.11 Proposals to change an accepted analytical principle applied in the Postal Service's annual periodic reports to the Commission. 3050.12 Obsolescence of special studies relied on to produce the Postal Service's annual periodic reports to the Commission. 3050.13 Additional documentation required in the Postal Service's section 3652 report. 3050.14 Format of the Postal Service's section 3652 report. 3050.20 Compliance and other analyses in the Postal Service's section 3652 report. 3050.21 Content of the Postal Service's section 3652 report. 3050.22 Documentation supporting attributable cost estimates in the Postal Service's section 3652 report. 3050.23 Documentation supporting incremental cost estimates in the Postal Service's section 3652 report. 3050.24 Documentation supporting estimates of costs avoided by worksharing and other mail characteristics in the Postal Service's section 3652 report. 3050.25 Volume and revenue data. 3050.26 Documentation of demand elasticities and volume forecasts. 3050.27 Workers' Compensation Report. 3050.28 Monthly and pay period reports. 3050.30 Information needed to estimate the cost of the universal service obligation. [Reserved] 3050.35 Financial reports. 3050.40 Additional financial reporting. 3050.41 Treatment of additional financial reports. 3050.42 Proceedings to improve the quality of financial data. 3050.43 Information on program performance. 3050.60 Miscellaneous reports and documents. Authority: 39 U.S.C. 503, 3651, 3652, 3653.
Source: 74 FR 20850, May 5, 2009, unless otherwise noted.
§ 3050.1 Definitions applicable to this part. (a)
Accepted analytical principle refers to an analytical principle that was applied by the Commission in its most recent Annual Compliance Determination unless a different analytical principle subsequently was accepted by the Commission in a final rule.(b)
Accepted quantification technique refers to a quantification technique that was applied in the most recent iteration of the periodic report applying that quantification technique or was used to support a new analytical principle adopted in a subsequent rule 3050.11 proceeding.(c)
Analytical principle refers to a particular economic, mathematical, or statistical theory, precept, or assumption applied by the Postal Service in producing a periodic report to the Commission.(d)
Annual Compliance Determination refers to the report that 39 U.S.C. 3653 requires the Commission to issue each year evaluating the compliance of the Postal Service.(e)
Annual periodic reports to the Commission refers to all of the reports that the Postal Service is required to provide to the Commission each year.(f)
Quantification technique refers to any data entry or manipulation technique whose validity does not require the acceptance of a particular economic, mathematical, or statistical theory, precept, or assumption. A change in quantification technique should not change the output of the analysis in which it is employed.(g)
Section 3652 report refers to the annual compliance report provided by the Postal Service to the Commission pursuant to 39 U.S.C. 3652, but does not include the reports required by 39 U.S.C. 2803 and 2804.§ 3050.2 Documentation of periodic reports. (a) At the time that it submits any periodic report to the Commission, the Postal Service shall identify any input data that have changed, list any quantification techniques that it has changed, and list any corrections that it has made since that report was last submitted to and accepted by the Commission. It shall provide a brief narrative explanation of each listed change.
(b) If workpapers are required to support a periodic report, they shall:
(1) Show all calculations employed in producing each estimate;
(2) Be sufficiently detailed to allow all numbers used in such calculations to be traced back to public documents or to primary data sources; and
(3) Be submitted in a form, and be accompanied by sufficient explanation and documentation, to allow them to be replicated using a publicly available PC application.
(c) Spreadsheets used in preparing periodic reports shall be submitted in electronic form. They shall display the formulas used, their links to related spreadsheets, and shall not be password protected.
(d) Filing of portions of the documentation required by paragraphs (b) and (c) of this section that are not time critical may be delayed up to 2 weeks if the Postal Service obtains permission from the Commission to defer filing of such portions at least 30 days prior to the date on which the periodic report is due.
§ 3050.3 Access to information supporting Commission reports or evaluations. (a) The Commission shall have access to material if, in its judgment, the information supports any report, assessment, or evaluation required by title 39 of the United States Code, including:
(1) The working papers and supporting matter of the Postal Service or the Postal Service Inspector General in connection with any information submitted under 39 U.S.C. 3652; and
(2) Information that supports the Commission's annual assessment under 39 U.S.C. 3651.
(b) [Reserved]
§ 3050.10 Analytical principles to be applied in the Postal Service's annual periodic reports to the Commission. In its annual periodic reports to the Commission, the Postal Service shall use only accepted analytical principles. With respect to its submissions under § 3050.26, however, the Postal Service may elect to use an analytical principle prior to its acceptance by the Commission.
§ 3050.11 Proposals to change an accepted analytical principle applied in the Postal Service's annual periodic reports to the Commission. (a) To improve the quality, accuracy, or completeness of the data or analysis of data contained in the Postal Service's annual periodic reports to the Commission, the Commission, acting on its own behalf, may issue a notice of proceeding to change an accepted analytical principle. In addition, any interested person, including the Postal Service or a public representative, may submit a petition to the Commission to initiate such a proceeding.
(b)
Form and content of notice or petition. The notice of proceeding or petition shall identify the accepted analytical principle proposed for review, explain its perceived deficiencies, and suggest how those deficiencies should be remedied.(1) If the notice of proceeding or petition proposes that a specific alternative analytical principle be followed, it should include the data, analysis, and documentation on which the proposal is based, and, where feasible, include an estimate of the impact of the proposed change on the relevant characteristics of affected postal products, including their attributable cost, avoided cost, average revenue, or service attainment.
(2) If the petitioner requests access to data from the Postal Service to support the assertions or conclusions in
its petition, and such data are not otherwise available, it shall accompany the petition with a request to gain access to such data. The petitioner's request should identify the data sought, and include the reasons for believing that the data will support its petition. To expedite its evaluation of the data request, the Commission may, after reasonable public notice, order that answers or objections be presented orally or in writing. (c)
Procedures for processing a notice or petition. To better evaluate a notice or petition to change an accepted analytical principle, the Commission may order that it be made the subject of discovery. By request of any interested person, or on its own behalf, the Commission may order that the petitioner and/or the Postal Service provide experts on the subject matter of the proposal to participate in technical conferences, prepare statements clarifying or supplementing their views, or answer questions posed by the Commission or its representatives.(d)
Action on the notice or petition. (1) After the conclusion of discovery procedures, if any, the Commission shall determine whether to issue a notice of proposed rulemaking based on the petition and the supporting material received. Such notice shall be evaluated by procedures that are consistent with 5 U.S.C. 553. Interested parties will be afforded an opportunity to present written comments and reply comments, and, if the Commission so orders, to present oral comments as well.(2) If accepted by the Commission, the change proposed in the notice of proposed rulemaking shall be published in a final rule in the
Federal Register and on the Commission's Web site.§ 3050.12 Obsolescence of special studies relied on to produce the Postal Service's annual periodic reports to the Commission. The Postal Service shall provide a list of special studies whose results are used to produce the estimates in its annual periodic reports to the Commission. It shall indicate the date the study was completed and whether the study reflects current operating conditions and procedures. The Postal Service shall update the list annually.
§ 3050.13 Additional documentation required in the Postal Service's section 3652 report. At the time the Postal Service files its section 3652 report, it shall include a brief narrative explanation of any changes to accepted analytical principles that have been made since the most recent Annual Compliance Determination was issued and the reasons that those changes were accepted.
§ 3050.14 Format of the Postal Service's section 3652 report. The Postal Service's Cost and Revenue Analysis (CRA) report shall be presented in a format reflecting the classification structure in the Mail Classification Schedule.
[79 FR 24336, Apr. 30, 2014] § 3050.20 Compliance and other analyses in the Postal Service's section 3652 report. (a) The Postal Service's section 3652 report shall include an analysis of the information that it contains in sufficient detail to demonstrate the degree to which, in the fiscal year covered by its report, each of its products (market dominant and competitive) comply with all of the applicable provisions of title 39 of the United States Code and the regulations promulgated thereunder, and promote the public policy objectives set out in title 39 of the United States Code.
(b) Its analysis shall be applied to products individually, and, where appropriate, to products collectively.
(c) It shall address such matters as non-compensatory rates, discounts greater than avoided costs, and failures to achieve stated goals for on-time delivery standards. A more detailed analysis is required when the Commission observed and commented upon the same matter in its Annual Compliance Determination for the previous fiscal year.
§ 3050.21 Content of the Postal Service's section 3652 report. (a) No later than 90 days after the close of each fiscal year, the Postal Service shall submit a report to the
Commission analyzing its cost, volume, revenue, rate, and service information in sufficient detail to demonstrate that all products during such year comply with all applicable provisions of title 39 of the United States Code. The report shall provide the items in paragraphs (b) through (j) of this section. (b) The volume and revenue generated by each product;
(c) The attributable costs of, and the contribution to institutional costs made by, each product;
(d) The quality of service received by each market dominant product, including the speed of delivery and the reliability of delivery;
(e) For each market dominant workshare discount offered during the reporting year:
(1) The per-item cost avoided by the Postal Service by virtue of such discount;
(2) The percentage of such per-item cost avoided that the per-item workshare discount represents;
(3) The per-item contribution made to institutional costs; and
(4) The factual and analytical bases for its conclusion that one or more of the exception provisions of 39 U.S.C. 3622(e)(2)(A) through (D) apply.
(f) For each market dominant negotiated service agreement:
(1) Identify its rates and service features;
(2) Estimate its costs, volumes, and revenues;
(3) Analyze its effect on the operational performance of the Postal Service, specifying the affected operations and, to the extent possible, quantifying the effect;
(4) Analyze the contribution of the agreement to institutional costs for its most recent year of operation. The year analyzed shall end on the anniversary of the negotiated service agreement that falls within the fiscal year covered by the Postal Service's annual periodic reports to the Commission and include the 12 preceding months. The analysis shall show all calculations and fully identify all inputs. Inputs used to estimate the effect on total contribution to the Postal Service, such as unit costs and price elasticities, shall be updated using fiscal year values; and
(5) Analyze the effect of the negotiated service agreement (and other functionally equivalent negotiated service agreements) on the marketplace. If there were harmful effects, explain why those effects were not unreasonable.
(g) For each competitive negotiated service agreement:
(1) Identify its rates and service features; and
(2) Estimate its costs, volumes, and revenues.
(h) For market tests of experimental products:
(1) Estimate their costs, volumes, and revenues individually, and in aggregate, by market dominant and by competitive product group;
(2) Estimate the quality of service of each individual experimental product; and
(3) Indicate whether offering the experimental product has created an inappropriate competitive advantage for the Postal Service or any mailer.
(i) For each nonpostal service, estimate its costs, volumes, and revenues; and
(j) Provide any other information that the Postal Service believes will help the Commission evaluate the Postal Service's compliance with the applicable provisions of title 39 of the United States Code.
§ 3050.22 Documentation supporting attributable cost estimates in the Postal Service's section 3652 report. (a) The items in paragraphs (b) through (p) of this section shall be reported when they have changed from those used in the most recent Annual Compliance Determination.
(b) The CRA report, including relevant data on international mail services;
(c) The Cost Segments and Components (CSC) report;
(d) All input data and processing programs used to produce the CRA report, to include:
(1) CSC Reconciliation to Financial Statement and Account Reallocations;
(2) Manual Input Requirement (reflecting direct accounting or modeled costs);
(3) The CSC “A” report (showing how indirect costs are distributed to products based on the distribution of direct costs);
(4) The CSC “B” report (showing how indirect Property Equipment Supplies Services and Administrative (PESSA) costs are distributed to products;
(5) The CSC “D” report (showing final adjustments to total attributable and product-specific costs);
(6) The CSC “F” report (containing distribution keys for indirect labor components);
(7) The control file that includes the CRA program control string commands used to produce the CRA and the above-described CSC reports; and
(8) The master list of cost segment components, including all of the components used as distribution keys in the development of the CSC report and its accompanying reports.
(e) Spreadsheet workpapers underlying development of the CSC report by component. These workpapers shall include the updated factors and input data sets from the supporting data systems used, including:
(1) The In-Office Cost System (IOCS);
(2) The Management Operating Data System (MODS);
(3) The City Carrier Cost System (CCCS);
(4) The City Carrier Street Time Sampling System (CCSTS);
(5) The Rural Carrier Cost System (RCCS);
(6) The National Mail Count;
(7) The Transportation Cost System (TRACS);
(8) System for International Revenues and Volumes/Outbound (SIRV/O);
(9) System for International Revenues and Volumes/Inbound (SIRV/I);
(10) Military and International Dispatch and Accountability System; and
(11) Inbound International Revenue Accounting Systems (IAB data).
(f) The econometric analysis of carrier street time, including input data, processing programs, and output;
(g) The Window Service Supply Side Variability, Demand Side Variability, and Network Variability studies, including input data, processing programs, and output;
(h) The econometric analysis of purchased highway transportation cost variability, including input data, processing programs, and output;
(i) The econometric analysis of freight rail cost variability, including input data, processing programs, and output;
(j) A list and summary description of any transportation contracts whose unit rates vary according to the level of postal volume carried. The description should include the product or product groups carried under each listed contract;
(k) Spreadsheets and processing programs distributing attributable mail processing costs;
(l) The Vehicle Service Driver Data Collection System;
(m) Input data, processing programs, and output of the Vehicle Service Driver Cost Variability Study;
(n) Econometric analysis of postmaster cost variability;
(o) Floor Space Survey; and
(p) Density studies used to convert weight to cubic feet of mail.
§ 3050.23 Documentation supporting incremental cost estimates in the Postal Service's section 3652 report. Input data, processing programs, and output of an incremental cost model shall be reported.
§ 3050.24 Documentation supporting estimates of costs avoided by worksharing and other mail characteristics in the Postal Service's section 3652 report. (a) The items in paragraphs (b) through (l) of this section shall be reported, including supporting calculations and derivations.
(b) Letter, card, flat, parcel and non-flat machinable mail processing cost models with Delivery Point Sequence percentages calculated, which shall include:
(1) Coverage factors for any equipment where coverage is less than 100 percent;
(2) MODS productivities;
(3) Piggyback factors and supporting data;
(4) Entry profiles, bundle sorts, and pieces per bundle;
(5) Bundle breakage, handlings, and density;
(6) Mail flow density and accept rates;
(7) Remote Computer Reader finalization costs, cost per image, and Remote Bar Code Sorter leakage;
(8) Percentage of mail finalized to carrier route;
(9) Percentage of mail destinating at post office boxes; and
(10) Wage rates and premium pay factors.
(c) Pallet cost models for Periodicals;
(d) Sack cost models for Periodicals;
(e) Bundle cost models for Periodicals;
(f) Other container cost models for Periodicals;
(g) Analysis of Periodicals container costs;
(h) Business Reply Mail cost supporting material;
(i) Mail processing units costs for Carrier Route, High Density, and Saturation mail;
(j) Mail processing unit costs by shape and cost pool for each product and benchmark category;
(k) Delivery costs by product, shape, presort level, automation compatibility, and machinability, including Detached Address Label cost calculations; and
(l) Dropship cost avoidance models.
§ 3050.25 Volume and revenue data. (a) The items in paragraphs (b) through (e) of this section shall be provided.
(b) The Revenue, Pieces, and Weight (RPW) report, including estimates by shape, weight, and indicia, and the underlying billing determinants, broken out by quarter, within 90 days of the close of each fiscal year;
(c) Revenue, pieces, and weight by rate category and special service by quarter, within 30 days of the close of the quarter;
(d) Quarterly Statistics Report, including estimates by shape, weight, and indicia, within 30 days of the close of the quarter; and
(e) Billing determinants within 40 days of the close of the quarter.
§ 3050.26 Documentation of demand elasticities and volume forecasts. By January 20 of each year, the Postal Service shall provide econometric estimates of demand elasticity for all postal products accompanied by the underlying econometric models and the input data sets used; and a volume forecast for the current fiscal year, and the underlying volume forecasting model.
§ 3050.27 Workers' Compensation Report. The Workers' Compensation Report, including summary workpapers, shall be provided by March 1 of each year.
§ 3050.28 Monthly and pay period reports. (a) The reports in paragraphs (b) through (f) of this section shall be provided within 15 days of the close of the relevant period or as otherwise stated.
(b) Monthly Summary Financial Report on the 24th day of the following month, except that the report for the last month of each quarter shall be provided at the time that the Form 10-Q report is provided.
(1) The report shall follow the formats as shown below.
ER05MY09.003 ER05MY09.004 ER05MY09.005 ER05MY09.006 (2) [Reserved]
(c) National Consolidated Trial Balances and the Revenue and Expense Summary (monthly);
(d) National Payroll Hours Summary in electronic form (pay period);
(e) On-roll and Paid Employee Statistics (ORPES) (pay period); and
(f) Postal Service Active Employee Statistical Summary (HAT report) (pay period).
§ 3050.30 Information needed to estimate the cost of the universal service obligation. [Reserved] § 3050.35 Financial reports. (a) The reports in paragraphs (b) through (d) of this section shall be provided annually at the time indicated.
(b) Annual Report of the Postmaster General (when released to the public);
(c) Congressional Budget Submission and supporting workpapers, including Summary Tables SE 1, 2, and 6 (within 7 days of the submission of the Federal Budget by the President to the Congress); and
(d) Integrated Financial Plan (within 7 days of approval by the Board of Governors).
§ 3050.40 Additional financial reporting. (a)
In general. The Postal Service shall file with the Commission:(1) Within 40 days after the end of each fiscal quarter, a quarterly report containing the information required by the Securities and Exchange Commission to be included in quarterly reports under sections 13 and 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)) on Form 10-Q, as such form (or any successor form) may be revised from time to time;
(2) Within 60 days after the end of each fiscal year, an annual report containing the information required by the Securities and Exchange Commission to be included in annual reports under such sections on Form 10-K, as such form (or any successor form) may be revised from time to time; and
(3) Periodic reports within the time frame and containing the information prescribed in Form 8-K of the Securities and Exchange Commission, as such form (or any successor form) may be revised from time to time.
(b)
Internal control report. For purposes of defining the reports required by paragraph (a)(2) of this section, the Postal Service shall comply with the rules prescribed by the Securities and Exchange Commission implementing section 404 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262), beginning with the annual report for fiscal year 2010.(c)
Financial reporting. The reports required by paragraph (a)(2) of this section shall include, with respect to the Postal Service's pension and post-retirement health obligations:(1) The funded status of the Postal Service's pension and post-retirement health obligations;
(2) Components of the net change in the fund balances and obligations and the nature and cause of any significant changes;
(3) Components of net periodic costs;
(4) Cost methods and assumptions underlying the relevant actuarial valuations;
(5) The effect of a 1 percentage point increase in the assumed health care cost trend rate for each future year on the service and interest costs components of net periodic post-retirement health cost and the accumulated obligation;
(6) Actual contributions to and payments from the funds for the years presented and the estimated future contributions and payments for each of the following 5 years;
(7) The composition of plan assets reflected in the fund balances; and
(8) The assumed rate of return on fund balances and the actual rates of return for the years presented.
(d)
Time of filing. Within 5 business days of receiving the data listed under paragraph (c) of this section from the Office of Personnel Management, the Postal Service shall provide two copies of that data to the Commission.(e)
Segment reporting. (1) Beginning with reports for fiscal year 2010, for purposes of the reports required under paragraphs (a)(1) and (2) of this section, the Postal Service shall include segment reporting.
(2) The Postal Service shall determine the appropriate segment reporting under paragraph (e)(1) of this section after consultation with the Commission.
§ 3050.41 Treatment of additional financial reports. (a) For purposes of the reports required by § 3050.40(a)(2), the Postal Service shall obtain an opinion from an independent auditor on whether the information listed in § 3050.40(c) is fairly stated in all material respects, either in relation to the basic financial statements as a whole or on a stand-alone basis.
(b)
Supporting matter. The Commission shall have access to the audit documentation and any other supporting matter of the Postal Service and its independent auditor in connection with any information submitted under § 3050.40.§ 3050.42 Proceedings to improve the quality of financial data. The Commission may, on its own motion or on request of an interested party, initiate proceedings to improve the quality, accuracy, or completeness of Postal Service data required under § 3050.40 whenever it shall appear that the data have become significantly inaccurate or can be significantly improved; or those revisions are, in the judgment of the Commission, otherwise necessitated by the public interest.
§ 3050.43 Information on program performance. (a) The Postal Service shall provide the items in paragraphs (b)(1) through (3) of this section at the same time that the President submits an annual budget to Congress:
(b)(1) The comprehensive statement required by 39 U.S.C. 2401(e);
(2) The performance plan required by 39 U.S.C. 2803; and
(3) The program performance reports required by 39 U.S.C. 2804.
(c) Section 3050.10 does not apply to the reports referenced in this section.
§ 3050.60 Miscellaneous reports and documents. (a) The reports in paragraphs (b) through (g) of this section shall be provided at the times indicated.
(b) A master list of publications and handbooks, including those related to internal information procedures, data collection forms, and corresponding training handbooks by July 1, 2009, and again when changed;
(c) The items listed in paragraph (b) of this section in hard copy form, and in electronic form, if available;
(d) Household Diary Study (when completed);
(e) Input data and calculations used to produce the annual Total Factor Productivity estimates (by March 1 of each year);
(f) Succinct narrative explanations of how the estimates in the most recent Annual Compliance Determination were calculated and the reasons that particular analytical principles were followed. The narrative explanations shall be comparable in detail to that which had been provided in Library Reference 1 in omnibus rate cases processed under the Postal Reorganization Act (by July 1 of each year); and
(g) An update of the history of changes in postal volumes, revenues, rates, and fees that appears in library references USPS-LR-L-73 through 76 in Docket No. R2006-1 (by July 1 of each year).
Pt. 3055 PART 3055—SERVICE PERFORMANCE AND CUSTOMER SATISFACTION REPORTING Subpart A—Annual Reporting of Service Performance Achievements Sec. 3055.1 Annual reporting of service performance achievements. 3055.2 Contents of the annual report of service performance achievements. 3055.3 Reporting exceptions. 3055.4 Internal measurement systems. 3055.5 Changes to measurement systems, service standards, service goals or reporting methodologies. 3055.6 Addition of new market dominant products or changes to existing market dominant products. 3055.7 Special study. 3055.20 First-Class Mail. 3055.21 Standard Mail. 3055.22 Periodicals. 3055.23 Package Services. 3055.24 Special Services. 3055.25 Non-postal products. [Reserved] Subpart B—Periodic Reporting of Service Performance Achievements 3055.30 Periodic reporting of service performance achievements. 3055.31 Contents of the Quarterly Report of service performance achievements. 3055.32 Measurement systems using a delivery factor. 3055.45 First-Class Mail. 3055.50 Standard Mail. 3055.55 Periodicals. 3055.60 Package Services. 3055.65 Special Services. 3055.70 Non-postal products. [Reserved] Subpart C—Reporting of Customer Satisfaction 3055.90 Reporting of customer satisfaction. 3055.91 Consumer access to postal services. 3055.92 Customer Experience Measurement Surveys. Authority: 39 U.S.C. 503, 3622(a), 3652(d) and (e); 3657(c).
Source: 75 FR 38742, July 6, 2010, unless otherwise noted.
Subpart A— Annual Reporting of Service Performance Achievements § 3055.1 Annual reporting of service performance achievements. For each market dominant product specified in the Mail Classification Schedule in part 3020, appendix A to subpart A of part 3020 of this chapter, the Postal Service shall file a report as part of the section 3652 report addressing service performance achievements for the preceding fiscal year.
§ 3055.2 Contents of the annual report of service performance achievements. (a) The items in paragraphs (b) through (k) of this section shall be included in the annual report of service performance achievements.
(b) The class or group-specific reporting requirements specified in §§ 3055.20 through 3055.25.
(c) The applicable service standard(s) for each product.
(d) The applicable service goal(s) for each product.
(e) A description of the measurement system for each product, including:
(1) A description of what is being measured;
(2) A description of the system used to obtain each measurement;
(3) A description of the methodology used to develop reported data from measured data;
(4) A description of any changes to the measurement system or data reporting methodology implemented within the reported fiscal year; and
(5) Where proxies are used, a description of and justification for the use of each proxy.
(f) A description of the statistical validity and reliability of the results for each measured product.
(g) A description of how the sampled data represents the national geographic mail characteristics or behavior of the product.
(h) For each product that does not meet a service standard, an explanation of why the service standard is not met, and a plan describing the steps that have or will be taken to ensure that the product meets or exceeds the service standard in the future.
(i) The identification of each product, or component of a product, granted an exception from reporting pursuant to § 3055.3, and a certification that the rationale for originally granting the exception remains valid.
(j) Documentation showing how data reported at a given level of aggregation were derived from data reported at greater levels of disaggregation. Such documentation shall be in electronic format with all data links preserved. It shall show all formulas used, including volumes and other weighting factors.
(k) For each product, documentation showing how the reports required by subpart A of this part were derived from the reports required by subpart B of this part. Such documentation shall be in electronic format with all data links preserved. It shall show all formulas used, including volumes and other weighting factors.
§ 3055.3 Reporting exceptions. (a) The Postal Service may petition the Commission to request that a product, or component of a product, be excluded from reporting, provided the Postal Service demonstrates that:
(1) The cost of implementing a measurement system would be prohibitive in relation to the revenue generated by the product, or component of a product;
(2) The product, or component of a product, defies meaningful measurement; or
(3) The product, or component of a product, is in the form of a negotiated service agreement with substantially all components of the agreement included in the measurement of other products.
(b) The Postal Service shall identify each product or component of a product granted an exception in each report required under subparts A or B of this part, and certify that the rationale for originally granting the exception remains valid.
§ 3055.4 Internal measurement systems. Service performance measurements obtained from internal measurement systems or hybrid measurement systems (which are defined as systems that rely on both an internal and an external measurement component) shall not be used to comply with any reporting requirement under subparts A or B of this part without prior Commission approval.
§ 3055.5 Changes to measurement systems, service standards, service goals, or reporting methodologies. The Postal Service shall file notice with the Commission describing all changes to measurement systems, service standards, service goals or reporting methodologies, including the use of proxies for reporting service performance, 30 days prior to planned implementation. The Commission may initiate a proceeding at any time to consider such changes if it appears that the changes might have a material impact on the accuracy, reliability, or utility of the reported measurement, or if the changes might have a material impact on the characteristics of the underlying product.
§ 3055.6 Addition of new market dominant products or changes to existing market dominant products. Whenever the Postal Service proposes the addition of a new market dominant product or a change to an existing market dominant product, it also shall propose new or revised (as necessary) service performance measurement systems, service standards, service goals, data reporting elements, and data reporting methodologies.
§ 3055.7 Special study. Included in the second section 3652 report due after this rule becomes final, and every 2 years thereafter, the Postal Service shall provide a report, by class of mail, on delivery performance to remote areas of the Alaska, Caribbean, and Honolulu districts.
§ 3055.20 First-Class Mail. (a)
Single-Piece Letters/Postcards, Bulk Letters/Postcards, Flats, and Parcels. For each of the Single-Piece Letters/Postcards, Bulk Letters/Postcards, Flats, and Parcels products within the First-Class Mail class, report the on-time service performance (as a percentage rounded to one decimal place), disaggregated by mail subject to the overnight, 2-day, and 3/4/5-day service standards.(b)
Outbound Single-Piece First-Class Mail International and Inbound Single-Piece First-Class Mail International. For each of the Outbound Single-Piece First-Class Mail International and Inbound Single-Piece First-Class Mail International products within the First-Class Mail class, report the on-time service performance (as a percentage rounded to one decimal place).§ 3055.21 Standard Mail. For each product within the Standard Mail class, report the on-time service performance (as a percentage rounded to one decimal place).
§ 3055.22 Periodicals. For each product within the Periodicals class, report the on-time service performance (as a percentage rounded to one decimal place).
§ 3055.23 Package Services. For each product within the Package Services class, report the on-time service performance (as a percentage rounded to one decimal place).
§ 3055.24 Special Services. For each product within the Special Services group, report the percentage of time (rounded to one decimal place) that each product meets or exceeds its service standard.
§ 3055.25 Nonpostal products. [Reserved] Subpart B—Periodic Reporting of Service Performance Achievements § 3055.30 Periodic reporting of service performance achievements. For each market dominant product specified in the Mail Classification Schedule in part 3020, appendix A to subpart A of part 3020 of this chapter, the Postal Service shall file a Quarterly Report with the Commission addressing service performance achievements for the preceding fiscal quarter (within 40 days of the close of each fiscal quarter).
§ 3055.31 Contents of the Quarterly Report of service performance achievements. (a) The items in paragraphs (b) through (e) of this section shall be included in the quarterly report of service performance achievements.
(b) The class or group-specific reporting items specified in §§ 3055.45 through 3055.70.
(c) The identification of each product, or component of a product, granted an exception from reporting pursuant to § 3055.3, and a certification that the rationale for originally granting the exception remains valid.
(d) Documentation showing how data reported at a given level of aggregation were derived from data reported at greater levels of disaggregation. Such documentation shall be in electronic format with all data links preserved. It shall show all formulas used, including volumes and other weighting factors.
(e) A year-to-date aggregation of each data item provided in each Quarterly Report due for the reported fiscal year, where applicable, including volumes and other weighting factors provided in electronic format, with formulas shown and data links preserved to allow traceability to individual Quarterly Reports.
§ 3055.32 Measurement systems using a delivery factor. For measurements that include a delivery factor, the duration of the delivery factor also shall be presented independent of the total measurement.
§ 3055.45 First-Class Mail. (a)
Single-Piece Letters/Postcards, Bulk Letters/Postcards, Flats, and Parcels. For each of the Single-Piece Letters/Postcards, Bulk Letters/Postcards, Flats, and Parcels products within the First-Class Mail class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), disaggregated by mail subject to the overnight, 2-day, and 3/4/5-day service standards, provided at the District, Postal Administrative Area, and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, disaggregated by mail subject to the overnight, 2-day, and 3/4/5-day service standards, provided at the District, Postal Administrative Area, and National levels.
(b)
Outbound Single-Piece First-Class Mail International and Inbound Single-Piece First-Class Mail International. For each of the Outbound Single-Piece First-Class Mail International and Inbound Single-Piece First-Class Mail International products within the First-Class Mail class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), provided at the Postal Administrative Area and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, provided at the Postal Administrative Area and National levels.
§ 3055.50 Standard Mail. (a) For each product within the Standard Mail class, report the on-time service performance (as a percentage rounded to one decimal place), disaggregated by the Destination Entry (2-day), Destination Entry (3-day through 4-day), Destination Entry (5-day through 10-day), End-to-End (3-day through 5-day), End-to-End (6-day through 10-day), and End-to-End (11-day through 22-day) entry mail/service standards, provided at the District,
Postal Administrative Area, and National levels. (b) For each product within the Standard Mail class, report the service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, disaggregated by the Destination Entry (2-day), Destination Entry (3-day through 4-day), Destination Entry (5-day through 10-day), End-to-End (3-day through 5-day), End-to-End (6-day through 10-day), and End-to-End (11-day through 22-day) entry mail/service standards, provided at the District, Postal Administrative Area, and National levels.
§ 3055.55 Periodicals. (a)
Within County Periodicals. For the Within County Periodicals product within the Periodicals class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), provided at the Postal Administrative Area and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, provided at the Postal Administrative Area and National levels.
(b)
Outside County Periodicals. For the Outside County Periodicals product within the Periodicals class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), disaggregated by the Destination Entry and End-to-End entry mail, provided at the Postal Administrative Area and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, disaggregated by the Destination Entry and End-to-End entry mail, provided at the Postal Administrative Area and National levels.
§ 3055.60 Package Services. (a)
Single-Piece Parcel Post. For the Single-Piece Parcel Post product within the Package Services class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), disaggregated by mail subject to the 2-day through 4-day and 5-day through 20-day service standards, provided at the District, Postal Administrative Area, and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, disaggregated by mail subject to the 2-day through 4-day and 5-day through 20-day service standards, provided at the District, Postal Administrative Area, and National levels.
(b)
Bound Printed Matter Flats, Bound Printed Matter Parcels, and Media Mail/Library Mail. For each of the Bound Printed Matter Flats, Bound Printed Matter Parcels, and Media Mail/Library Mail products within the Package Services class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), disaggregated by the Destination Entry and End-to-End entry mail, provided at the District, Postal Administrative Area, and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, disaggregated by the Destination Entry and End-to-End entry mail, provided at the District, Postal Administrative Area, and National levels.
(c)
Inbound Surface Parcel Post (at UPU rates). For the Inbound Surface Parcel Post (at UPU rates) product within the Package Services class, report the:(1) On-time service performance (as a percentage rounded to one decimal place), provided at the Postal Administrative Area and National levels; and
(2) Service variance (as a percentage rounded to one decimal place) for mail delivered within +1 day, +2 days, and +3 days of its applicable service standard, provided at the Postal Administrative Area and National levels.
§ 3055.65 Special Services. (a) For each product within the Special Services group, report the percentage of time (rounded to one decimal
place) that each product meets or exceeds its service standard, provided at the National level. (b)
Additional reporting for Ancillary Services. For the Certified Mail, electronic Return Receipt, Delivery Confirmation, Insurance, and an aggregation of all other services within the Ancillary Services product, individually report the percentage of time (rounded to one decimal place) that each service meets or exceeds its service standard. For green card Return Receipt report:(1) The number of EXFC seed mailpieces sent;
(2) The percentage of green cards properly completed and returned;
(3) The percentage of green cards not properly completed, but returned;
(4) The percentage of mailpieces returned without a green card signature; and
(5) The percentage of the time the service meets or exceeds its overall service standard.
(c)
Additional reporting for Post Office Box Service. For Post Office Box Service, report the percentage of time (rounded to one decimal place) that the product meets or exceeds its service standard, provided at the District and Postal Administrative Area levels.(d)
Additional reporting for Stamp Fulfillment Service. For Stamp Fulfillment Service, report:(1) The on-time service performance (as a percentage rounded to one decimal place), disaggregated by customer order entry method; and
(2) The service variance (as a percentage rounded to one decimal place) for orders fulfilled within +1 day, +2 days, and +3 days of their applicable service standard, disaggregated by customer order entry method.
[75 FR 38742, July 6, 2010, as amended at 76 FR 70656, Nov. 15, 2011] § 3055.70 Nonpostal products. [Reserved] Subpart C—Reporting of Customer Satisfaction § 3055.90 Reporting of customer satisfaction. For each market dominant product specified in the Mail Classification Schedule in part 3020, appendix A to subpart A of part 3020 of this chapter, the Postal Service shall file a report as part of the section 3652 report, unless a more frequent filing is specifically indicated, addressing customer satisfaction achievements for the preceding fiscal year. The report shall include, at a minimum, the specific reporting requirements presented in §§ 3055.91 through 3055.92.
§ 3055.91 Consumer access to postal services. (a) The following information pertaining to post offices shall be reported, disaggregated by type of post office facility, and provided at the Postal Administrative Area and National levels:
(1) The number of post offices at the beginning of the reported fiscal year;
(2) The number of post offices at the end of the reported fiscal year;
(3) The number of post office closings in the reported fiscal year;
(4) The number of post office emergency suspensions in effect at the beginning of the reported fiscal year;
(5) The number of post office emergency suspensions in the reported fiscal year; and
(6) The number of post office emergency suspensions in effect at the end of the reported fiscal year.
(b) The following information pertaining to delivery points shall be reported, disaggregated by delivery point type, provided at the Postal Administrative Area and National levels:
(1) The number of residential delivery points at the beginning of the reported fiscal year;
(2) The number of residential delivery points at the end of the reported fiscal year;
(3) The number of business delivery points at the beginning of the reported fiscal year; and
(4) The number of business delivery points at the end of the reported fiscal year.
(c) The following information pertaining to collection boxes shall be reported, provided at the Postal Administrative Area and National levels:
(1) The number of collection boxes at the beginning of the reported fiscal year;
(2) The number of collection boxes at the end of the reported fiscal year;
(3) The number of collection boxes removed during the reported fiscal year; and
(4) The number of collection boxes added to new locations during the reported fiscal year.
(d) The average customer wait time in line for retail service shall be reported. Data shall be provided for the beginning of the reported fiscal year and for the close of each successive fiscal quarter at the Postal Administrative Area and National levels.
§ 3055.92 Customer Experience Measurement Surveys. (a) The report shall include a copy of each type of Customer Experience Measurement instrument, or any similar instrument that may supersede the Customer Experience Measurement instrument used in the preceding fiscal year.
(b) The report shall include information obtained from each type of Customer Experience Measurement instrument, or any similar instrument that may supersede the Customer Experience Measurement instrument including:
(1) A description of the customer type targeted by the survey;
(2) The number of surveys initiated and the number of surveys received; and
(3) Where the question asked is subject to a multiple choice response, the number of responses received for each question, disaggregated by each of the possible responses.
Pt. 3060 PART 3060—ACCOUNTING PRACTICES AND TAX RULES FOR THE THEORETICAL COMPETITIVE PRODUCTS ENTERPRISE Sec. 3060.1 Scope. 3060.10 Costing. 3060.11 Valuation of assets. 3060.12 Asset allocation. 3060.13 Valuation of liabilities. 3060.14 Competitive products enterprise statement of allocated assets and liabilities. 3060.20 Reports. 3060.21 Income report. 3060.22 Financial status report. 3060.23 Identified property and equipment assets report. 3060.24 Competitive products fund report. 3060.30 Statement of allocated assets and liabilities for competitive products. 3060.31 Initial filing. 3060.40 Calculation of the assumed Federal income tax. 3060.41 Supporting documentation. 3060.42 Commission review. 3060.43 Annual transfer from competitive products fund to Postal Service fund. Authority: 39 U.S.C. 503, 2011, 3633, 3634.
Source: 73 FR 79261, Dec. 24, 2008, unless otherwise noted.
§ 3060.1 Scope. The rules in this part are applicable to the Postal Service's theoretical competitive products enterprise developed pursuant to 39 U.S.C. 2011 and 3634 and to the Postal Service's obligation to calculate annually an assumed Federal income tax on competitive products income and transfer annually any such assumed Federal income tax due from the Competitive Products Fund to the Postal Service Fund.
§ 3060.10 Costing. (a) The assumed taxable income from competitive products for the Postal Service's theoretical competitive products enterprise for a fiscal year shall be based on total revenues generated by competitive products during that year less the costs identified in paragraph (b) of this section calculated using the methodology most recently approved by the Commission.
(b) The net income for the Postal Service's theoretical competitive products enterprise shall reflect the following costs:
(1) Attributable costs, including volume variable and product specific costs; and
(2) The appropriate share of institutional costs assigned to competitive products by the Commission pursuant to 39 U.S.C. 3633(a)(3).
§ 3060.11 Valuation of assets. For the purposes of 39 U.S.C. 2011, the total assets of the Postal Service theoretical competitive products enterprise are the greater of:
(a) The percentage of total Postal Service revenues and receipts from
competitive products times the total net assets of the Postal Service, or (b) The net assets related to the provision of competitive products as determined pursuant to § 3060.12.
§ 3060.12 Asset allocation. Within 6 months of January 23, 2009, and for each fiscal year thereafter, the Postal Service will develop the net assets of the theoretical competitive products enterprise as follows:
(a) Identify all asset accounts within the Postal Service's Chart of Accounts used solely for the provision of competitive products.
(b) Identify all asset accounts within the Postal Service's Chart of Accounts used solely for the provision of market dominant products.
(c) The portion of asset accounts in the Postal Service's Chart of Accounts that are not identified in either paragraph (a) or paragraph (b) of this section shall be assigned to the Postal Service theoretical competitive products enterprise using a method of allocation based on appropriate revenue or cost drivers approved by the Commission.
(d) Within 6 months of January 23, 2009, the Postal Service shall submit to the Commission for approval a proposed methodology detailing how each asset account identified in the Chart of Accounts shall be allocated to the theoretical competitive products enterprise and provide an explanation in support of each allocation.
(e) If the Postal Service desires to change the methodologies outlined above, it shall utilize the procedures provided in § 3050.11 of this chapter.
§ 3060.13 Valuation of liabilities. Within 6 months of January 23, 2009, and for each fiscal year thereafter, the Postal Service will develop the liabilities of the theoretical competitive products enterprise as follows:
(a) Identify all liability accounts within the Postal Service's Chart of Accounts used solely for the provision of competitive products.
(b) Identify all liability accounts within the Postal Service's Chart of Accounts used solely for the provision of market dominant products.
(c) The portion of liability accounts in the Postal Service's Chart of Accounts that are not identified in either paragraph (a) or paragraph (b) of this section shall be assigned to the theoretical competitive products enterprise using a method of allocation based on appropriate revenue or cost drivers approved by the Commission.
(d) Within 6 months of the effective date of these rules, the Postal Service shall submit to the Commission for approval a proposed methodology detailing how each liability account identified in the Chart of Accounts shall be allocated to the theoretical competitive products enterprise and provide an explanation in support of each allocation.
(e) If the Postal Service desires to change the methodologies outlined above, it shall utilize the procedures provided in § 3050.11 of this chapter.
§ 3060.14 Competitive products enterprise statement of allocated assets and liabilities. The Postal Service will report the assets and liabilities of the theoretical competitive products enterprise as computed under §§ 3060.12 and 3060.13 in the format as prescribed under § 3060.30 for each fiscal year starting with FY 2010.
§ 3060.20 Reports. (a) Beginning with reports for FY 2009, the Postal Service shall file with the Commission each of the reports required by this part by no later than 90 days after the close of each fiscal year. For FY 2008, the Postal Service may file these reports by January 15, 2009, with the exception of the report required by § 3060.24.
(b) Each report shall include workpapers that cite all numbers to primary sources and such other information needed to present complete and accurate financial information concerning the provision of competitive products.
(c) Each report shall utilize the same books of accounts and data collection systems used to produce the report required by part 3050 of this chapter.
(d) Each report shall include summary descriptions of computations
used, assumptions made, and other relevant information in the form of notes to the financial statements. (e) A one-time extension until January 15, 2009, shall be permitted for the submission of the reports due for fiscal year ending September 30, 2008.
(f) The accounting practices used by the Postal Service in the reports filed for FY 2008, as approved by the Commission, shall be used for all future reports until such time as they may be changed by the Commission. If the Postal Service desires to change such practices, it shall utilize the procedures provided in § 3050.11 of this chapter.
§ 3060.21 Income report. The Postal Service shall file an Income Report in the form and content of Table 1, below.
Table 1—Competitive Products Income Statement—PRC Form CP-01 [$ in 000s] FY 20xx FY 20xx-1 Percent change from - SPLY
Percent change from - SPLY
Revenue: $x,xxx $x,x - xx
xxx xx.x (1) Mail and Services Revenues xxx xxx xx xx.x (2) Investment Income x,xx x,xxx xxx xx.x (3) Total Competitive Products Revenue Expenses: (4) Volume-Variable Costs x,xxx x,xxx xxx xx.x (5) Product Specific Costs x,xxx x,xxx xxx xx.x (6) Total Competitive Products Attributable Costs x,xxx x,xxx xxx xx.x (7) Net Income Before Institutional Cost Contribution x,xxx x,xxx xxx (8) Required Institutional Cost Contribution x,xxx x,xxx $xxx x.x.x (9) Net Income (Loss) Before Tax x,xxx x,xxx $xxx xx.x (10) Assumed Federal Income Tax x,xxx x,xxx $xxx xx.x (11) Net Income (Loss) After Tax x,xxx x,xxx $xxx xx.x Line (1): Total revenues from Competitive Products volumes and Ancillary Services. Line (2): Income provided from investment of surplus Competitive Products revenues. Line (3): Sum total of revenues from Competitive Products volumes, services, and investments. Line (4): Total Competitive Products volume variable costs as shown in the Cost and Revenue Analysis (CRA) report. Line (5): Total Competitive Products product specific costs as shown in the CRA report. Line (6): Sum total of Competitive Products costs (sum of lines 4 and 5). Line (7): Difference between Competitive Products total revenues and attributable costs (line 3 less line 6). Line (8): Minimum amount of Institutional Cost contribution required under 39 CFR 3015.7 of this chapter. Line (9): Line 7 less line 8. Line (10): Total assumed Federal income tax as calculated under 39 CFR 3060.40. Line (11): Line 9 less line 10. § 3060.22 Financial status report. The Postal Service shall file a Financial Status Report in the form and content of Table 2, below.
Table 2—Annual Summary of Competitive Products Financials—PRC Form CP-02 [$ in 000s] Beginning value Change from prior year Ending value (1) Cumulative Net Income (Loss) After Assumed Federal Income Tax (2) Total Financial Obligations (List of Financial Obligations) (3) Total Financial Investments (List of Financial Investments) Line 1: Beginning Value: Sum total of Net Income (Loss) as of October 1 of Reportable Fiscal Year. Change from Prior Year: Amount of Net Income (Loss) of Reportable Fiscal Year. Ending Value: Sum of Beginning Value and the Change from Prior Year. Line 2: Beginning Value: Sum total of Financial Obligations as of October 1 of Reportable Fiscal Year. Change from Prior Year: Amount of Net Financial Obligations of Reportable Fiscal Year. Ending Value: Sum of Beginning Value and the Change from Prior Year. Line 3: Beginning Value: Sum total of Financial Investments as of October 1 of Reportable Fiscal Year. Change from Prior Year: Amount of Net Financial Investments of Reportable Fiscal Year. Ending Value: Sum of Beginning Value and the Change from Prior Year. § 3060.23 Identified property and equipment assets report. The Postal Service shall file an Identified Property and Equipment Assets Report in the form and content of Table 3, below.
Table 3—Competitive Products Property and Equipment Assets—PRC Form CP-03 [$ in 000s] Finance No. Finance - location
Asset - identifier
Asset - description
Cost Accumulated depreciation Net book value Total $x,xxx $x,xxx $x,xxx § 3060.24 Competitive products fund report. Within 90 days of the close of each fiscal year the Postal Service will provide the most recent report of the activity of the Competitive Products Fund as provided to the Secretary of the Treasury under 39 U.S.C. 2011(i)(1).
§ 3060.30 Statement of allocated assets and liabilities for competitive products. (a) The Postal Service shall file a Statement of Allocated Assets and Liabilities for Competitive Products in the form and content of Table 4, below.
Table 4—Statement of Allocated Assets and Liabilities for Competitive Products—PRC Form CP-04 [$ in millions] USPS annual report FY20XX - competitive
- products
FY 20XX-1 competitive products Distributed on basis of: Total net assets Cash and Cash Equivalents $x,xxx $x,xxx $x,xxx Net Accounts Receivable x,xxx x,xxx x,xxx Supplies, Advances and Prepayments x,xxx x,xxx x,xxx Appropriations Receivable—Revenue Forgone x,xxx x,xxx x,xxx Total Current Assets x,xxx x,xxx x,xxx Property and Equipment: Buildings x,xxx x,xxx x,xxx Leasehold Improvements x,xxx x,xxx x,xxx Equipment x,xxx x,xxx x,xxx Land x,xxx x,xxx x,xxx Accumulated Depreciation x,xxx x,xxx x,xxx Construction in Progress x,xxx x,xxx x,xxx Total Property and Equipment, Net x,xxx x,xxx x,xxx Total Assets $x,xxx $x,xxx $x,xxx Total Assets Determined from 39 U.S.C. 2011(e)(5) $x,xxx $x,xxx $x,xxx Total net liabilities Liabilities Current Liabilities: Compensation and Benefits x,xxx x,xxx x,xxx Payables and Accrued Expenses x,xxx x,xxx x,xxx Customer Deposit Accounts x,xxx x,xxx x,xxx Deferred Revenue-Prepaid Postage x,xxx x,xxx x,xxx Outstanding Postal Money Orders x,xxx x,xxx x,xxx Prepaid Box Rent and Other Deferred Revenue x,xxx x,xxx x,xxx Debt x,xxx x,xxx x,xxx Non-Current Liabilities: x,xxx x,xxx x,xxx Workers' Compensation x,xxx x,xxx x,xxx Employees Accumulated Leave x,xxx x,xxx x,xxx Deferred Appropriation and Other Revenue Long-Term Portion of Capital Lease Obligations x,xxx x,xxx x,xxx Deferred Gains on Sales of Property x,xxx x,xxx x,xxx Contingent Liabilities and Other x,xxx x,xxx x,xxx Total Liabilities x,xxx x,xxx x,xxx (b) The Statement of Allocated Assets and Liabilities for Competitive Products shall detail the analysis and selection of methods of allocation of total assets and liabilities to the competitive products.
§ 3060.31 Initial filing. The due date for filing the initial Statement of Allocated Assets and Liabilities for Competitive Products is 90 days after the close of FY 2010.
§ 3060.40 Calculation of the assumed Federal income tax. (a) The assumed Federal income tax on competitive products income shall be based on the Postal Service theoretical competitive products enterprise income statement for the relevant year and must be calculated in compliance with chapter 1 of the Internal Revenue Code by computing the tax liability on the taxable income from the competitive products of the Postal Service theoretical competitive products enterprise at the section 11 (regular) or section 55(b)(1)(B) (Alternative Minimum Tax) tax rates, as applicable.
(b) The end of the fiscal year for the annual calculation of the assumed Federal income tax on competitive products income shall be September 30.
(c) The calculation of the assumed Federal income tax due shall be submitted to the Commission no later than the January 15 following the close of the fiscal year referenced in paragraph (b) of this section, except that a one-time extension of 6 months, until July 15, 2009, shall be permitted for the calculation of the assumed Federal income tax due for fiscal year end September 30, 2008.
(d) No estimated Federal income taxes need to be calculated or paid.
(e) No state, local, or foreign income taxes need to be calculated or paid.
§ 3060.41 Supporting documentation. (a) In support of its calculation of the assumed Federal income tax, the Postal Service shall file detailed schedules reporting the Postal Service theoretical competitive products enterprise assumed taxable income, effective tax rate, and tax due.
(b) Adjustments made to book income, if any, to arrive at the assumed taxable income for any year shall be submitted to the Commission no later than January 15 of the following year.
§ 3060.42 Commission review. (a) Interested persons shall be provided an opportunity to comment on the filing of the calculation of the assumed Federal income tax and supporting documentation.
(b) The Commission will review the calculation of the assumed Federal income tax submitted pursuant to
§ 3060.40, the supporting documentation submitted pursuant to § 3060.41, and any comments. The Commission then will issue an order either approving the calculation of the assumed Federal income tax for that tax year or take such other action as the Commission deems appropriate, including, but not limited to, directing the Postal Service to file additional supporting materials. (c) The Commission will issue such order no later than 6 months after the Postal Service's filing pursuant to § 3060.40.
(d) Notwithstanding paragraph (b) of this section, if the Commission determines within 3 years of its submission that the Postal Service's calculation of an assumed Federal income tax is incomplete, inaccurate, or otherwise deficient, the Commission will notify the Postal Service in writing and provide it with an opportunity to cure or otherwise explain the deficiency. Upon receipt of the Postal Service's responsive pleading, the Commission may order such action as it deems appropriate.
§ 3060.43 Annual transfer from competitive products fund to Postal Service fund. (a) The Postal Service must on an annual basis transfer the assumed Federal income tax due on competitive products income from the Competitive Products Fund to the Postal Service Fund.
(b) If the assumed taxable income from competitive products for a given fiscal year is positive, the assumed Federal income tax due, calculated pursuant to § 3060.40, shall be transferred to the Postal Service Fund no later than the January 15 following the close of the relevant fiscal year.
(c) A one-time extension of 6 months, until July 15, 2009, shall be permitted for the transfer of the assumed Federal income tax due for fiscal year ending September 30, 2008.
(d) If assumed taxable income from competitive products for a given fiscal year is negative, and:
(1) A payment was made to the Postal Service Fund for the previous tax year, a transfer equaling the lesser of the amount paid into the Postal Service Fund for the past 2 tax years or the amount of the hypothetical tax on the loss shall be made from the Postal Service Fund to the Competitive Products Fund no later than the January 15 following the close of the relevant fiscal year; or
(2) No payment has been made into the Postal Service Fund for the previous 2 tax years, the loss may be carried forward and offset against any calculated assumed Federal taxable income on competitive products income for 20 years.
PARTS 3061-3099 [RESERVED]