**Minutes of the**

**November 2 - 3, 2005**

**Mailers' Technical Advisory Committee (MTAC) Meeting**

**U.S. Postal Service Headquarters**

**Ben Franklin Room**

**Washington, DC**

###### WEDNESDAY, NOVEMBER 2

**Ceremony to Recognize MTAC's**

**40 Years of Achievement**

**Postmaster General John E. Potter**

Postmaster General John E. Potter honored the 40-year partnership of the
Postal Service and MTAC, dating from 1965 when the mission was
improvement of services and products. That goal has become more
sophisticated with presort, then mechanization and finally automation
and the importance of information technology. He pointed especially to
the effective relationship between the two major players in the mailing
industry who sometimes have had different approaches to issues, but who
have always been able to resolve those issues and move forward to the
benefit of both the Postal Service and the mailing industry. He
expressed appreciation that the process has resulted in a more efficient
Postal Service, both operationally and financially.

Mr. Potter recognized the service of past Industry Chairs -- Angelo
Venezian, Coleman (Bill) Hoyt, Lee Epstein, Sig Guthman, John Murchake,
Herb Gertz, Mike McSweeney, Dick Funck, Emily Smith, Jim Pehta, Yvonne
Reigel, Heywood Girion, Bill David, Chris Rebello, Joe Schick and Joe
Lubenow. It was mentioned that Joe Lubenow had just completed his tenure
as MTAC Industry Immediate Past Chair. The Postal Service Chairs
recognized were Gordon Morison and John Wargo. Finally, Mr. Potter
congratulated incoming Industry Chair Joyce McGarvy and Industry Vice
Chair Don Harle.

The Postmaster General presented a token of appreciation to the current
Industry Chair, Bob O'Brien, who has served a three-year term which will
end this December. He also honored Coleman (Bill) Hoyt, the longest
serving MTAC industry member who served as Industry Chair from 1971 to
1973. Mr. Hoyt accepted a token of appreciation and, in return,
presented to the Postmaster General an archived photo of the second MTAC
meeting, attended by 22 members.

Mr. Potter announced that a special room will be provided at USPS
Headquarters for MTAC members when they are in town for meetings.
Finally, he presented a plaque to all MTAC members honoring MTAC's 40
years of contribution and partnership.

**Welcome**

**Susan Plonkey, Chair, Postal**

**Bob O'Brien, Chair, Industry**

Ms. Plonkey welcomed MTAC members and guests and invited Mr. O'Brien to
add his comments. Mr. O'Brien announced the 2006 MTAC meeting dates --
February 22-23, May 17-18, August 2-3 and November 1-2. He introduced
the following:

New MTAC association member:

National Small Business Association

New MTAC association executives:

Todd McCracken, President, National Small Business Association

> Donna Garren, Executive Vice-President, Florida Gift Fruit Shippers
> Association,

And new MTAC representatives:

Don Wright, Florida Gift Fruit Shippers Association

Marty Mellett, National Alliance of Standard Mailers and Logistics

Denise Love, General Services Administration

> Clem Balanoff, National Association of County Recorders, Election
> Officials and Clerks

Mr. O'Brien announced that the election of eight new members of the MTAC
Industry Leadership Committee would take place at the regular business
meeting at the close of the afternoon session.

**Holiday Campaigns**

**Rod DeVar, Manager**

**Advertising & Promotion**

[**Click here to see the
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1235 holiday Campaigns.ppt)

Mr. DeVar described the expanded campaign that will reach out to holiday
customers. A snowman cookie, which will appear in much of the
advertising material, is carrying the banner this year. The anchor of
the campaign is a printed Holiday Shipping and Mailing Guide that will
be delivered to every postal address in the country. A similar version
proved effective last year when 38% of recipients remembered receiving
the brochure three weeks after it was delivered. This year it is the
centerpiece of the ad campaign, supported by a wide variety of ads in
other venues.

There will be ads in a number of magazines mainly targeted at women, who
are the dominant holiday buying decision maker. There will be special
blow-ins in some of the magazines, including a pane of gift tags that
can be used on gift packages. Radio will carry a number of messages
promoting carrier pickup and, for the first time, both Internet radio
and satellite radio will be included in the campaign. The Postal Service
web site has added several pages of promotional information, including a
downloadable Holiday Shipping and Mailing Guide. Last year the
successful 30-second "Angie" television ad showed how she easily handled
all of the holiday packages dumped on her desk through Internet pickup
scheduling. This year a similar home-based ad will be included in the
television campaign.

Over 50 million postcards will be produced by the field offices to make
local customers aware of products and services, expanded service hours,
etc., and the field offices will also be testing new ideas -- ad screens
in movie theaters and transit ads (large ad wraps that cover the sides
of buses and trains). There will be an expanded array of ads and
products at Post Office retail sites -- holiday stamps, postcards, gift
boxes, gift tags, wrapping materials and so on.

The Public Relations Office created a media box filled with product
samples, including the Snowman Cookie. The media box will go to 1,500
media outlets, which will also receive a weekly postcard containing a
relevant story that can be used on air. Finally, a private television
production company that specialized in reality programming proposed that
the Postal Service participate in a one-hour program, to be aired on
December 9. The program will be based on how the Postal Service handles
Letters to Santa, and it will show how a number of these letters
affected the childrens' lives.

**Transformation 2006 -- 2010 Update**

**Linda Kingsley, VP**

**Strategic Planning**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/100mtac transformation.ppt)

Ms. Kingsley announced that the Strategic Transformation Plan 2006-2010
has been published. The previous plan, through 2006, focused on improved
service, which has been steadily improving based on independent
assessments, including some that compare major delivery services. One
challenge that occurred during that plan was the decline of First-Class
Mail volume in spite of increasing delivery points. At the same time
Standard Mail volume has been growing, but it contributes less revenue
per piece than First-Class Mail. There is also increased competition
with private companies; workforce issues that include the cost of
benefits outpacing inflation, greater demands for work schedule
flexibility, and the fact that almost a third of the managers will
retire within a few years.

To make the overall plan more understandable, the Strategic
Transformation Plan 2006-2010 is composed of four major elements -- the
Five-Year Strategic Plan, the Annual Performance Plan, The
Transformation Plan, and the Transformation Plan Progress Report. The
Plan is updated annually.

The Plan is built around four main strategic goals -- increasing
revenues, reducing costs, improving service and achieving verifiable
results with a customer-focused, performance-based corporate culture.
Increased revenues in other classes must offset the First-Class Mail
volume decline. Reducing costs, so successful during the last several
years, must continue, and the individual Postal Service employee must be
brought into the customer partnership in an effective and productive
way.

Increasing revenues will depend on responding to customer needs --
expansion of intelligent mail services, supporting mailers' efforts to
increase response rates, simplification of pricing so annual increases
will smooth out the customer's planning process, and improving access to
products and services (e.g., Internet transactions, online tracking and
payment, etc.). In the area of cost reductions, a major focus is on the
high-labor delivery process. Technology and equipment will continue to
be important, including improved automation handling equipment, PARS,
flats sequencing, etc.

Finally, the importance of Postal Service-customer partnerships is clear
with a sense of mutual benefit. One area that will offer excellent
potential for improved efficiency and reduced costs is the
rationalization of the transportation network. There will be continued
improvements in the information technology (IT) services that have
become so important in the last few years. There has been a major effort
to "connect" the front line employee to the customer, and that effort
will continue with tangible opportunities for the employee to benefit
from signing on. It is also important to increase workforce flexibility
since the loss of the relatively steady flow of First-Class Mail has
been replaced by a more irregular flow of Standard Mail. It will be
important to maintain the level of service already achieved, and working
to make it even better. One difference that has occurred in the last few
years is the expanded number of contact points available to customers,
including the Internet, various online access points, and new services
available to major mailers that are just now becoming more widely
available, including tracking, payments and address change programs.

Ms. Kingsley offered an example of how a particular improvement affects
revenues, costs, service and customer needs. As the address quality
improvement programs succeed, customers see that the costs to maintain
more current address lists are more than offset by the increased
benefits (value) -- mail gets to recipients faster and more reliably and
the cost of handling of bad address pieces is reduced.

In summary, Ms. Kingsley said that the objectives of the Plan are to
reduce costs by a specific \$5 billion, to increase revenues by
expanding services and the customer base, to continue to advance
employee involvement, and to maintain a focus on core products and
services to insure that universal and affordable service continues to be
available to Postal Service customers.

**USPS Financial Update**

**Richard J. Strasser, Jr.**

**Chief Financial Officer & EVP**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/130 Strassrer.PPT)

Mr. Strasser stated that the 2005 financial statements are being
reviewed by the external auditors, after which they will be presented to
the Board of Governors for approval. Following Board approval, 2005
results will be released to the public. Although October results are not
yet available, revenues may be a little below last October and expenses
may be a little higher than anticipated because of the hurricanes and
the costs of fuel.

Mr. Strasser presented a review of the Postal Service retirement
programs. The Civil Service Retirement System (CSRS) was closed to new
entrants in the mid-eighties. It was, and continues to be, significantly
under funded because of the inadequate statutory employee contribution
of 7% and agency contribution of 7%. Congress created the Federal
Employees Retirement System (FERS) for new hires of the federal
government beginning in 1984. This system is fully funded.

In addition to the 7% funding, the USPS was required to fund increased
pension costs caused by pay increases over 30 years and costs caused by
retiree COLAs over 15 years. It was the only agency to make these
payments. In 2003, Congress modified Postal Service CSRS funding to
prevent over funding of CSRS obligations. The 30 year and 15 year
payments were eliminated and the Postal Service contribution was
increased to 17.4%. In developing the new Postal Service CSRS funding
requirements, the cost of pensions earned by military service was
transferred from the United States Treasury to the Postal Service,
retroactive to 1971. With this \$27 billion transfer, there remains a
\$4 billion shortfall in USPS obligations for CSRS, and the Postal
Service has been paying \$240 million a year to cover that shortfall.

Under FERS, the employee still contributes 7%, most of which is for
social security funding, and the agency contributes between 18.4% and
22.4% for FERS, social security and a contribution to the Thrift Savings
Plan (TSP) (a plan similar to a 401K plan). The USPS automatically
contributes 1% to the TSP and matches employees' contributions up to an
additional 4%, thus the basis of the 18.4% to 22.4% range.

The Postal Service portion of the CSRS fund is \$191 billion versus an
estimated benefit obligation of \$195 billion (the nominal \$4 billion
shortfall above). FERS is funded at \$48 billion with an obligation of
\$38 billion, resulting in an over funding situation. Therefore, for the
Postal Service, both CSRS and FERS are fully, or in fact, over funded.
However, for the rest of the federal government, although the FERS fund
is fully funded, the CSRS fund is under funded by more than \$500
billion.

Public Law 108-18 established an escrow fund beginning in 2006 for the
"savings" defined as the difference between Postal Service CSRS funding
before and after 108-18. In 2006, this difference is estimated at \$3.1
billion, and by 2015 it will be \$6.3 billion. That money will go to a
separate Postal Service escrow account, and cannot be spent until
legislation is enacted authorizing its use.

Concerning health benefits, the Postal Service is the only agency to
directly fund the cost of retiree health benefits. For retirees, the
Postal Service pays 60% of the health insurance premiums and slightly
more for employees. In 2005, the USPS payment for health benefits was
\$6.6 billion (\$5.1 billion for active employees, \$1.5 billion for
retirees). The estimate for 2006 is about \$7.3 billion, more than 10%
of the Postal Service's annual operating expenses. Because the Postal
Service follows multi-employer accounting for these costs, they are
expensed when paid. GAO has recommended that the estimated future health
benefit obligation be included in the Postal Service financial
statements (about \$48 billion to \$59 billion, the difference being 1%
in the inflation rate of out year health benefit costs).

Mr. Strasser described the effects of the Medicare Modernization Act of
2003 that established a retiree drug subsidy for employers providing
retiree health benefit coverage for prescription drugs. The law provides
that an employer who provides a more generous drug benefit than that
described in the Act may apply for a rebate. Although the Federal
Employee Health Benefits Plan is covered by the Act, OPM has decided not
to apply for the rebate. OPM's decision has no impact on federal
funding, because taxpayer dollars fund both the Medicare Part D program
as well as the cost of retiree health benefits for government retirees.
However, because postal rate payers, and not taxpayers, pay the health
benefit costs for postal retirees the Postal Service has applied for the
Part D subsidy which is estimated at a quarter of a billion dollars for
2006.

**Service Update**

**William P. Galligan, SVP Operations**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/150MTAC  Oct service Hurricanes r2.ppt)

Mr. Galligan described the impact and the lessons learned as a result of
the hurricanes that hit the southeastern U.S., Katrina, Rita and Wilma.
Katrina did only minor damage to the Florida Air Mail Center (although
Wilma inflicted major damage that has interrupted service, especially
with regard to Customs clearance). When Katrina hit Louisiana the Postal
Service had made some preparations that preserved some transportation
equipment, and delivery staff created a mapping system in advance that
allowed levels of service to be reported and mapped down to the 5-digit
level. As the hurricane passed through Louisiana and Mississippi, and
during the period of recovery afterwards, the map was continually
updated. It showed red zones, where service was basically unavailable;
yellow zones, where there was limited service (basically mail pick-up
points in whatever Postal Service building that were usable, or tents,
trailers or other temporary quarters); and green zones, where service
was essentially unaffected. Mr. Galligan reported that, as of the MTAC
meeting day, there were only a few yellow zones remaining.

Between Katrina and Wilma the Postal Service moved many operations to
Texas, particularly the Beaumont area, where the effects of Wilma
seriously impacted operations.

After the hurricanes, the recovery process included an effort to locate
employees and work with them to enable them to return to work. Of the
3,900 employees in the Katrina-affected area, by October 28 almost all
were back at work. About 800 returned to their regular work sites. About
300 were relocated to other areas of the United States, sometimes
because of the hurricane damage to their homes. About 250 were not back
at work.

In terms of processing operations, a number of temporary distribution
sites were established, routing changes were made, mail was moved
through Houston Hobby Airport and processed at the Houston Postal
facility. Temporary systems were set up to forward mail and work with
changes of address to try to intercept mail before it moved toward an
invalid address. Except when it was shut down by Wilma, the Beaumont
remote encoding site was processing mail, and the Postal Service worked
with FedEx to move operations from the almost inoperative New Orleans
airport to the Baton Rouge airport. Short-term leases were negotiated
for space in Baton Rouge and Port Allen.

There are still three embargo points because there is not delivery to
the delivery points in the zip codes: drop shipments from ZIP 330
through 333 in Florida and in ZIP Codes 701, 706 and 700 in Louisiana;
and Standard Mail and Periodical Mail in the same Louisiana ZIP Codes.

The loss of delivery points was exceptionally high. In Louisiana, over
611,000 delivery points were affected, reduced to about 96,000 by
October 7, and all were fully restored by October 13. Change of address
(COA) requests exploded from about 19,000 on September 2, increasing to
over 630,000 by October 30. One factor was the fact that some
individuals moved several times, each move causing a new COA. Retail
operations in the same area were affected, peaking at 154 closed
facilities. Infrastructure damage was significant, with 412 damaged
facilities and ten facilities totally destroyed. Putting it all back
together will require careful examination of each site by industrial
hygienists, and consideration of the financial impact.

The Postal Service responded well to customer needs, working with
Homeland Security to help sort out the massive change of address
problem, exacerbated by the need to get relief checks, and later Social
Security checks, to individuals in need. The Postal Service worked
overtime, even on Sundays, to delivery this mail. To help local
residents, fees for COAs were suspended, although that did cause some
concern later. There is a follow-on issue with regard to the large
number of COAs that were completed without the standard credit card
authentication, and it is impossible to send COA confirmation letters to
residences that no longer exist or are in areas where service has been
interrupted. Mr. Galligan suggested that this situation invites
reconsideration of COA policies, especially in light of the upcoming
need to deliver IRS form 1099s in January.

**Association Presentation**

**Gene A. Del Polito, President**

**Association for Postal Commerce (PostCom)**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/235mtac.presentation.ppt)

Mr. Del Polito outlined the history of the Association for Postal
Commerce (PostCom), which began in 1947 in the form of the Association
of Third Class Mail Users, went through several name changes as it
expanded its interests, and arrived at its present name in recognition
of the fact that members were actually involved in postal commerce,
using all of the classes of mail as resources.

Describing some of PostCom's accomplishments, Mr. Del Polito noted that
it had helped put together the first Industry-Post Office exchange
focused on advertising mail. In 1986 PostCom submitted a filing with the
Postal Rate Commission to use unrelated business income as a test to
distinguish between regular mail and nonprofit mail. When automation
began to become an issue, and the Postal Service was looking for a place
on the envelope to place barcoded information, PostCom argued for
reserving space in the address area of an envelope, an issue important
to advertisers who use envelopes to carry ad messages as well as
addresses. The final proposal was worked out by a special work group
that worked with MTAC. In 1988, in an article in Direct Marketing,
PostCom called for mail classification reform that would reflect the
actual costs of processing each class, and take into consideration the
savings generated by worksharing.

Mr. Del Polito talked about the early impression that Third Class Mail
was not an important segment of the Post Office Department's product
line, and the feeling of the public and legislators that it was "junk"
mail. PostCom worked to encourage the Postal Service to look more
carefully at its value, and initiated the first national public
relations campaign directed at the public and legislators to change
attitudes about ad mail. PostCom's proposal to allow commercial
companies to compete for ad mail distribution may have been one of the
earliest issues related to postal reform. Later PostCom worked with both
the Reagan and Bush administrations as postal reform became an issue for
legislative action.

In 1994, PostCom worked with other organizations on the concept of a
less-than-inflation, across-the-board rate increase to expedite
increased revenue for the Postal Service. PostCom worked on joint
Industry-USPS initiatives, such as the Competitive Services Task Force,
and was extensively involved in the Postal Service's effort to reform
First-Class, Second-Class and Third-Class mail.

PostCom called for an increase in the weight limit for automated letters
(from 2.5 ounces to 3.5 ounces), worked on a proposal that was accepted
by the Postal Service to increase the maximum weight for Bound Printed
Matter from 10 pounds to 15 pounds, and cooperated in a USPS-Industry
effort to clarify rules concerning inserts and premiums in Bound Printed
Matter and Nonprofit mail.

PostCom initiated the proposal to create a new rate for returning small
parcels and this helped in creating the Bulk Small Parcel Return
Service. Although parcels usually go out as individual items, the
returns are cumulated and sent back in lots, and should be eligible for
a bulk rate. In the process that defined Standard Mail, PostCom
submitted a proposal that helped the Postal Service provide requirements
for that class of mail.

Mr. Del Polito described some of the "firsts" initiated by PostCom --
the first public information campaign about the value of ad mail, the
first Postal Summit on Flat Mail Processing and Automation, and the
first Industry CEO conference on postal reform. PostCom has been one of
the organizations to spearhead the creation of the Universal Postal
Union's (UPU) Consultative Committee that brought the voice of users to
the UPU proceedings. Finally, PostCom serves on the UPU Direct Mail
Advisory Board and on the Smithsonian National Postal Museum Advisory
Board

**Association Presentation**

**James Pierce Myers, EVP & Counsel**

**Parcel Shippers Association**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/250PSA and MTAC 05-1102 Final.ppt)

Mr. Myers discussed the Parcel Shippers Association (PSA), the leading
advocate for competition in package delivery services. The Association's
mission is similar to most associations -- to support members with
information, to foster competition, to promote partnerships that promote
the interests of parcels shippers, and to encourage innovation in the
field. PSA's lobbying and litigation activities have saved parcel
shippers hundreds of millions in postal package delivery costs. PSA
Members, major parcel shippers in the U.S. and Canada, participate in
Association meetings, events, and surveys and receive newsletters and
e-updates to keep them well informed. Twenty percent of the members are
active in MTAC, which is significant because one of the most important
partnerships PSA has formed is with MTAC.

According to Mr. Myers, PSA partners with MTAC to accomplish many of its
goals. For example, in 2000 PSA members expressed the need for
measurement of package delivery performance. As a result, PSA asked the
Postal Service whether there were performance standards, goals to
improve performance, and any formal accountability for delivery
performance. Within a year, the Postal Service announced specific
performance standards and worked with PSA to coordinate the support of
MTAC in establishing work group \# 82 "Parcel Delivery Performance
Measurement Effectiveness". The work group included participants from
the industry and Postal Service representatives. The work group refined
delivery standards, formalized an accountability process, recommended
improvements for destination delivery unit (DDU) performance, and
created an affordable and user-friendly delivery confirmation
capability.

The Postal Rate Commission (PRC) supported the effort by "embedding" the
delivery confirmation fee in Parcel Select rates as part of the 2001
rate case. In the 2002-2005 time period the process was implemented so
that now there is a Parcel Select Delivery Performance Report available
to all participating shippers, which provides detailed data on delivery
performance across the system. Shippers can compare their own experience
to that report and work with the Postal Service to resolve any issues
that may exist that are at variance with the standards. This report is
the benchmark for delivery performance in other mail classes.

***[Seamless Acceptance and Induction]{.underline}:***

**Seamless Acceptance for MLOCR Environment (New WG \# 100)**

**Jay Gillotte/Pritha Mehra**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/305MTAC100_MLOCR_General_session.ppt)

Mr. Gillotte noted that this is the first work group to address MLOCR.
The work group aims to define capabilities of a seamless acceptance
process for both in-house and third party MLOCR environment First-Class
Mail. The work group will look at web services and mail.dat to identify
gaps that inhibit transition to electronic statements and documentation.
For First-Class Mail mailers, the work group will identify issues in
current acceptance and verification, and differences between in-house
and third party providers of MLOCR processing. Finally, the work group
will look at any communications system issues that inhibit timely
feedback.

The work group has met once, reviewed web services and mail.dat, and
come to the preliminary conclusion that mailers will choose mail.dat. A
test program will be developed with two users to demonstrate if and how
the process actually works. Finally, presort members of the work group
have agreed to develop process flow charts which should prove useful.

**Streamline Acceptance/Verification of Periodicals (New WG \# 99)**

**Scott Lorenz/Pritha Mehra**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/315MTAC99_Periodicals_General_session.PPT)

Mr. Lorenz stated that the work group had met once in New York. The
purpose of the work group is to leverage PostalOne! to increase the
efficiency of acceptance, inductance, verification and payment, reducing
or eliminating labor-intensive processes such as weight and ad percent
capture and verification. The work group will look at the flexibility
and ease of the reporting process. Reporting data needs to be available
for several levels -- the issue, presort, mail segment and so on. And
the data must be readily available to the publishers, printers and audit
bureaus.

Mr. Lorenz showed a draft work flow chart for periodicals flow that
began with the publisher/printer entering weight and ad percentage data
into PostalOne!, while detached mail units (DMUs) verify the weight and
ad percentage information. Then the publisher/printer would adjust the
data in PostalOne! and finally the DMU would finalize postage
statements, debit the customer's account and issue the automatic postage
statement.

Mr. Lorenz noted that, after the first meeting, it was clear that an
alternative to the issue identification should be considered because
publishers had various policies for identifying issues of a publication
(volume, issue number, etc) that could result in duplications that might
confuse the system. The weight and ad percentage process should be more
clearly and fully defined -- and there may be ways to make it more
efficient.

**Streamlining Verification (WG \# 93)**

**David Steinhardt/Pritha Mehra**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/325mtac93.ppt)

Ms. Mehra recalled the presentation at the last meeting that identified
three teams that would look at vision, barcodes and concept design and
testing. The first two teams have completed their work. The vision team
recommended a full court press on electronic information input and
exchange -- more visibility for the customer and extensive use of
barcodes. The barcode team approved the current barcodes -- the four
state barcode, the new pallet barcode and the 24-digit barcode. The team
also looked at how these barcodes could be used effectively.

The design and concept testing team is working on improving the
plant-verified drop ship process, with a focus on eliminating paper. Mr.
Gallagher commented that the team was tasked to look at a seamless
mailing induction program. The work group worked with PostalOne!, which
was already involved in the electronic 8125 and a drop ship management
system, and was on the verge of a pilot test to be conducted in a live
environment. In the pilot, customers would barcode pallets and enter
electronic mailing information. Postal One! would process the
information, track the data and create the electronic 8125. Surface
Visibility would track and verify the actual shipments.

Phase one of the pilot tested the processes, including the handheld
scanners, and looked at the information collected. That phase is
complete. Phase two will validate postage rates claimed by the mailers,
identify schedule conflicts and develop an automated adjustment process
to resolve the conflicts.

Two mailers are now involved in Phase two, and three or four entry
points will be online within a week or so. The pilot should be completed
by March 2006. Phase one began in October and has successfully generated
electronic 8125s and demonstrated successful data exchange (with minor
problems that are easy to resolve). In Phase two, some effort will go to
issues related to the data on the 8125 and any conflicts that may arise.

Next steps include determination that essential business services to
support a seamless induction process have been identified; analysis of
the Phase one data; and the final development and delivery to MTAC of a
final report and recommendation.

**PostalOne! Postage Payment &**

**Statements -- Approach & Design (WG \# 84)**

**Phil Thompson/Pritha Mehra**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/340MTAC84_PostalOne!_General_session_update.ppt)

Mr. Thompson announced that Release 9.0.3 and 10.0 have been distributed
without any significant problems. Release 10.1 should be available in
January, hopefully before the rate case. The date for Release 11 has not
been determined. Release 10.0 included an electronic 8125, eMIR
enhancements, electronic postage statements and the first version of
Postage Statement Wizard.

Ms. Mehra discussed the content of Release 11, which will include
electronic periodicals statements, a new tool (eCheck) that will allow
mailers to electronically deposit funds to trust accounts, and open the
Centralized Account Payment System (CAPS) to all customers. Hopefully,
it will include a capability to enter all statements via electronic
media. Postage Statement Wizard will be enhanced to allow entry of
postage statements online. Finally, there will be enhancements to the
electronic 8125,

Mr. Thompson added that the work group had originally been tasked to
identify issues that might impede PostalOne! from handling all
statements. The work group has done that and submitted a report to the
Postal Service for action, identifying 30 issues that will be addressed
in Release 11 or future releases. Another goal, a 24/7 help desk is a
reality, and a 24/7 infrastructure will be in place in the near future.
The PostalOne! system will be shut down briefly for maintenance.

Since the job is done, Mr. Thompson reported that the work will sunset
after this MTAC meeting. He announced that a user group will be
established to support users of PostalOne!

Ms. Mehra paid tribute to the three volunteers who have supported the
work group since its inception -- Rod Ryan (R.R. Donnelley), Debbie
Cooper (Quebecor World Logistics) and Phil Thompson (Quad Graphics).

**[THURSDAY NOVEMBER 3]{.underline}**

**Welcome/Messages**

**Joyce McGarvy, Vice Chair, Industry**

**Alixe Johnson, Vice Chair, Postal**

Ms. McGarvy called the meeting to order and announced the results of the
MTAC Industry Leadership Committee elections:

Mail Class:

First-Class/Expedited Mail Ernie Rojas

Periodicals Val Scansaroli

Standard Mail Anita Pursley

Package Services Jim Bowler

Focus Area

Address Accuracy Joe Lubenow

Optimization of Preparation & Entry Phil Thompson

Seamless Acceptance & Induction Wanda Senne

Service Measurement & Improvement Joyce Bagby

(Please note it was subsequently clarified that those individuals listed
above for mail class will provide Industry Leadership representation for
mail class specific issues and will also be paired by Focus Area so the
following individuals will provide Focus Area MTAC Industry Leadership):

Focus Area

Address Accuracy Ernie Rojas/Joe Lubenow

Optimization of Preparation & Entry Val Scansaroli/Phil Thompson

Seamless Acceptance & Induction Anita Pursley/Wanda Senne

Service Measurement & Improvement Jim Bowler/Joyce Bagby

**Recap -- MTAC Industry Chair**

**Bob O'Brien**

Mr. O'Brien recalled that he had joined MTAC in the early seventies,
when carrier route presort was a new idea. In the early years he was
involved with the Automation and Barcode Committees (ABC), mail make-up
and address quality. After serving as Industry Vice Chair, he became the
first Industry Chair to serve a three-year term. He announced that, on
December 31 of this year, he would retire as Industry Chair from MTAC
and from his company, Time Customer Service Inc.

Looking back over the last few years, he noted that 20 work groups had
completed their tasks successfully. In 2002, work groups concerned with
in home delivery and with the instructions for Standard Mail delivered
their final recommendations. The next year, 2003, work groups completing
their work included design guidelines for flat mail, MOVE Update,
delivery standards, business mail measurement, the first PostalOne! work
group, the first presort optimization work group, publication watch,
then electronic pub watch. In 2004, work groups finished work on Merlin,
address accuracy, mail improvement reporting (now called eMIR), and
bundle breakage. In 2005, work groups successfully completed included
enhancing Confirm, flat mail optimization, consistency of mailing
standards and business mail acceptance (the latter generated the very
useful DMM Advisory) and finally, coding accuracy support system
-refinements and awareness.

Mr. O'Brien stated that the body of work for the last three years was
impressive, all the more so because of the quality and dedication of the
members who worked on the various initiatives. He commended Joe Schick
and Joe Lubenow for their part in the reorganization that resulted in
the current MTAC Leadership structure, which includes the participation
of USPS senior management on the MTAC Leadership Team.

In closing, Mr. O'Brien thanked the MTAC members and the Postal Service
managers for three years of solid support.

**Office of Inspector General (OIG) Presentation**

**David Williams, Inspector General**

Mr. Williams relied on historical evidence, going back hundreds of
years, to lay the foundation for the mission of an effective inspector
general. Over the centuries, those in power have been tempted by the
wealth and power associated with their offices -- and entities such as
the inspector general have, on many occasions, been the only defense
against those temptations.

The origin of the current office of the inspector general in Federal
Government agencies and the Postal Service began with legislation in the
mid-seventies. That legislation placed a presidentially-appointed
inspector general in cabinet-level departments. In 1996, Congress
created the first, independent Office of Inspector General at the
U.S. Postal Service.

There are two mission arms within the OIG -- audit and investigation.
The auditors address efficiency, economy and effectiveness --
essentially they are consultants for improved operations, and they
usually work in a positive partnership with Postal Service management.
The law enforcement investigators, called special agents, focus on
criminal and administrative violations without regard to the position or
seniority of the individuals involved.

The investigative difference between the OIG and the U.S. Postal
Inspection Service (USPIS) is that the OIG looks inward on employee and
contractor crimes such as bribery, extortion, and conflict of interest.
The USPIS looks outward on crimes such as mail theft, mail fraud,
burglaries, and violent crimes. The Chief Inspector of the USPIS reports
to the Postmaster General; the Inspector General of the OIG reports to
the Postal Service Governors. Additionally, the OIG has oversight over
the USPIS.

There are times when the lines of responsibility merge, as when Postal
employees are involved in some criminal activity in consort with an
individual not associated with the Postal Service, and in unusual
circumstances when it is important to cooperate in investigative
processes (such as in the aftermath of hurricane Katrina).

Mr. Williams commented that the audit arm is currently involved in the
restructuring of the network operation, the resolution of some of the
issues related to technology design, the development of faster and more
accurate financial reports, and implementation of efficiencies in the
management information systems (MIS) area. There is a continual quest
for the lowest combined cost (usually through work sharing) for the
mutual benefit of both the USPS and its customers. This includes looking
for efficiencies across a broad array of opportunities in the
transportation system, in delivery, and other areas.

Mr. Williams stated that last year the OIG issued 378 audit reports --
recommendations for economies in operations and recovery of fraud loss,
opinions on investments, and so on. There were over 3,400
investigations, 1,300 of which were management and administrative, and
376 criminal investigations. The OIG identified \$66.5 million that
could be recovered through fines, restitution, and recoveries.

Mr. Williams expressed appreciation for being invited to discuss the
Office of the Inspector General. He added that MTAC has done excellent
work in the past and that he would welcome any recommendations that
might arise from that past work or future initiatives.

**Surface Visibility Update**

**Paul Vogel, VP Network Operations Management**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/845Paul Vogel MTAC.ppt)

Mr.Vogel explained that Surface Visibility is basically an internal
control system that requires mailers and the Postal Service cooperate in
placing barcodes on mail in whatever form it enters the system --
individual pieces, smaller containers like trays, larger containers like
pallets and even the truck or trailer that move the mail from facility
to facility. There will be a continuous scanning of the mail based on a
nesting concept --letters nest into trays, trays nest into pallets,
pallets nest into trailers and trucks. Everything is barcoded in the
process. Once the scanning begins, the Surface Visibility system will
remember what is contained in each successive nested component. The scan
of a trailer will allow identification of every piece of mail sealed in
the trailer. Both the Postal Service and the mailer will be able to
track each piece. The mailer will have to become comfortable using the
various barcodes on the various nesting segments -- the mail piece, the
handling unit (trays and tubs), the container (pallets) and the
transport (trucks and trailers).

The heart of the system is a hand-held scanner that can interface with
the various data and tracking programs -- FAST, electronic 8125s,
start-the-clock, APPS, Web Atlas, etc. Although the 14-digit barcode can
be used initially, ultimately the system will require the 24-digit code
and the four-state code. The system is "up" and "ready to go" in 111
larger facilities that handle 85% of the mail.

Work group \# 87 is working to get Standard Mail mailers on board, and
work group \# 95 is dealing with the Periodical mailers. There is some
interest in developing a work group for First-Class Mail mailers, and
parcel shippers should assess whether Surface Visibility would be an
appropriate tool for them.

During discussion, on an unrelated matter, Mr. Vogel addressed the
planned consolidation at ten facilities. A process called area mail
processing (AMP), which has been proved successful for several decades,
will be applied to this consolidation. AMP provides information to the
public and legislators and government officials about planned
consolidations, allowing an opportunity for response. The ten facilities
in the current consolidation would not be eliminated from the system,
but some processing functions would be moved, mainly origination mail
processing. There will be very little impact on service or on the labor
situation (most employees will be successfully relocated). Mr. Vogel
added that mailers should consider the AMP as a "FYI". When the
consolidation is imminent, mailers will receive specific information
that will allow them to make any changes necessary in their own
operating processes.

Asked about the implementation of Surface Visibility, Mr. Vogel conceded
that a transition period is anticipated and there may a number of issues
that must be resolved, but he felt sure that within months the system
would become fully functional.

**Legislative Update**

**Thomas G. Day, SVP**

**Government Relations**

Mr. Day announced that HR 22 passed during the summer with a strong
majority, and the administration issued a Statement of Administrative
Policy (SAP) that basically required that the outcome must be budget
neutral. On the Senate side, S 662 has been sidelined, partly because of
the "fair and equitable" issue. The Postal Service has been working with
Senate staff to resolve the issue, but agreement has not yet been
achieved. If agreement is reached, the law should pass without delay,
but it is more likely that nothing will happen before the holiday break.

The SAP addresses the financial aspect of the law, that the Postal
Service must cover all financial obligations. In a ten-year time frame
the benefit is not evident. The Postal Service would cover the 2006
\$3.1 billion escrow payment, a payment that would steadily increase in
the future. The budget neutral aspect of the administration's SAP
promises a return of the escrow, but it would then be applied to health
benefits. Cash flow would be adversely impacted for nearly twenty years,
while the annual payments to retiree benefits and the military
retirement would continue. In the next ten years this would mean a cash
flow impact as a result of the administration's policy of \$90 billion.
There are a number of issues that the Postal Service finds more or less
acceptable, but the financial policy appears to be a "sticking point".

Concerning the Board of Governor's September letter, there were three
main issues. The first was governance, the issue of balance of power
between the Board and the Postal Rate Commission (PRC). The second issue
concerned ratemaking and whether the Postal Service can bank Consumer
Price Index (CPI) increases if there are two or three years between rate
cases. The Postal Service believes there should be a comprehensive rate
making process to avoid becoming fragmented by various issues that would
detract from the total rate making process.

The third issue was a need for financial relief, and the
administration's budget neutral position will not support that need. The
PRC responded that the Board's letter was based on unfounded concerns.
One part of that response indicated that the PRC would like to have
oversight of capital investments and purchasing authority, which is
actually a Board authority and responsibility. There are layers of
oversight -- Congressional, GAO, OIG and the basic oversight body, the
Board of Governors.

Finally, there is concern about the wording of the legislative provision
about "fair and equitable" rate making. If that concept, as it is
written, remains in the law, it will not be possible to restructure
rates to provide incentives for various classes. Although the historical
concept of "fair and equitable" is reasonable and could go forward
without detriment, the slight change in wording in the law that makes it
an objective and ties it to the annual rate structure could eliminate
needed flexibility.

In summary, Mr. Day stated that the Postal Service has concerns with S
662 and H22. There are positive aspects to the proposed legislation, but
there are serious concerns about the flexibility and authority to
accomplish the Postal Service's mission. The Postal Service and the
Board believe that, if these issues are not adequately addressed, it
would be better to remain with the current legislation.

**eMIR Bundle Breakage Blitz**

**Bob Fisher, Manager Service**

**Performance Improvement &**

**Sue Redman, eMIR Program Manager**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/945MTAC_Oct_Blitz.ppt)

Mr. Fisher reported that there is a coordinated effort with Operations,
the BSN, and Business Mail Acceptance to control bundle breakage costs.
The third and largest bundle breakage blitz was just completed; 5,433
reports were submitted, noting 7,709 issues. The Operations emphasis was
on nationwide participation and on quality reporting, including an
effort to obtain photos. As before, the overall results showed that
shrinkwrap and plastic straps caused the greatest problems -- straps
slipping off and breaking, shrinkwrap seams parting and tears in plastic
that appeared to be too thin. The three blitz tests showed very similar
results -- shrinkwrap 28%-30%, plastic straps 28%-30%, and rubber bands
18%-20%.

Ms. Redman reported mailer concerns that included the BME inspecting
mailers more closely who had had previous bundle breakage problems.
There has been a consistent improvement in reporting (although with the
last test there were a larger number of new users who were on the
learning curve regarding reporting). There is also better volume
reporting and improved container label information. There has been some
concern that there needs to be more consistency in the bundle
preparation verification process by BME field personnel.

There has also been concern about access to eMIR reports because the
mailer must register and the information is available to both the mail
owner and preparer. There have also been requests that there be a single
eMIR contact.

Customers are interested in shared information and there has been an
effort to get some of the information onto the usps.com web site. The
Postal Service will continue to work with large mailers on bundle
breakage problems. Within the Postal Service, there will be more
training, increased communications with the field, and regularly
distributed information updates.

**Association Presentation**

**Neal Denton, Executive Director**

**Alliance of Nonprofit Mailers**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1015MTAC.ppt)

Mr. Denton noted that the Alliance of Nonprofit Mailers was formed in
1984 in response to rate case litigation that was unfavorable to
nonprofit mailers. The members continue to be the major nonprofit
organization in the United States. The Alliance offers the usual array
of association member services, including a newsletter, the Alliance
Report, that reports serious issues with a sense of humor.

The Alliance, working with others in the industry, has supported passage
of much legislation that affects mailers, both nonprofit and otherwise.
An early effort was support for legislation that used federal funds to
pay for the difference between the nonprofit preferred postal rates and
the commercial postal rates. A challenge to that legislation was
defeated in 1992, again with active Alliance participation in the
process. The Alliance has worked with the Postal Service to develop
eligibility rules for nonprofit mailers, what can and cannot be mailed
under the nonprofit rates.

The Alliance was a primary player in the passage of the 1993 Revenue
Foregone Reform Act, which made nonprofit rates permanent and ended the
need for federal reimbursement. Later the Alliance supported an
amendment to that bill that allowed nonprofit publications to accept
most ad revenue and retain the lower postal rates. The Alliance joined
other mailers to present testimony to the President's Commission on
Postal Reform, and regularly testifies on behalf of nonprofit mailers
before the Postal Rate Commission.

Finally, Mr. Denton expressed his appreciation for the efforts of MTAC,
endorsed the support that the Alliance has maintained with membership
representation. He noted that a number of the individuals on the
Alliance's board of directors are active MTAC members.

***[Service Measurement and Improvement:]{.underline}***

**Service Performance Reporting Process Standardization (WG \# 94)**

**Mury Salls/Bob Fisher**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1030MTAC WG94 Nov3.ppt)

Mr. Fisher stated that there is a wide range of mailer reports in the
postal process and, because there is little standardization, those
reports are often not as helpful nor as accessible as they could be. The
work group objectives include developing criteria, guidelines and
standardized elements for mailer-generated reports so that data can be
applied more broadly. There should also be a consistent process for
sharing reports and the work group will assess the potential of
establishing a "clearinghouse" where all reports will reside and access
would be easier than it is now. Finally, the work group will look at
industry concerns about the Confirm Certification process.

Mr. Fisher outlined the work group's progress. The draft of the
standardization criteria should be completed within a few weeks, and
then it will go to work group members for review and comment. The Postal
Service is meeting one-on-one with various mailers to discuss their
internal processes, which will help in developing the final criteria.
There is also an effort to improve the BSN process with regard to
reports that require action. The Confirm issue will probably be referred
to the Leadership Committee for review and assignment.

***[Address Accuracy]{.underline}:***

**Address Quality Tools -- MOVE Update (WG \# 98)**

**Carole Morrow/Ruth Jones/Charles Hunt**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1045Workgroup_98 MTAC 11_05.ppt)

Ms. Morrow stated that the objective of the work group is to make
Address Correction Service (ACS) more useful for Standard Mail mailers.
In many applications ACS generates a large volume of manual returns, a
particular problem with rented lists that may come from various sources.
The work group will focus on current policies and procedures and develop
recommendations that will lead to electronic ACS notification to mail
list owners.

The problems that currently exist include the manual notifications not
being returned to the original list source, duplications and multiple
entries, the weighted fee system, and the amount of data on some mail
pieces. The work group first met in September, organized and identified
general issues. The second meeting, which is scheduled immediately after
this MTAC session, will refine and prioritize those issues.

Ms. Jones briefly discussed NCOA^LINK^ performance and statistics. There
were three services until October, when the FASTforward Mail List
Correction was ended. The remaining two are NCOA^LINK^ Full Service
Provider (FSP) which provides 48 months of data, and Limited Service/End
User (LSP/EUM) which provides 18 months of data. There were 437 billion
records processed through FSP, with 24 billion updated (a 5% match
rate). There were about 29 billion records processed through LSP/EUM
with a million updates (a 3% match rate). The FASTforward system
processed 29 million and matched a half million.

**Address Quality Methodology (WG \# 97)**

**Chris Lien/Jim Wilson/Wayne Orbke**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1055mtac97.ppt)

Mr. Lien explained the mission of this new work group, which met for the
first time in September. First, an objective is to identify and apply
best practices in data quality to achieve *ready-to-go* addresses for
*just-in-time* mailing. Secondly, the work group will evaluate the
methodology -- looking to move away from certifying a whole list of
addresses and instead to create a list of certified addresses, so that
each address stands on its own. The overall objective is to support and
contribute to the USPS goal of reducing undeliverable as addressed (UAA)
mail by fifty percent.

During the work group's first meeting a list of about twenty issues was
developed, with an eye to developing a series of best practices. That
list included a number of data collection and handling issues, software
issues, and the management of un-assignable versus undeliverable
addresses.

**Improving the Change of Address System for Colleges & Universities (WG
\# 90)**

**Thom Roylance/Jim Wilson & Frank Spencer**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1105MTAC 11-03-05wg90.ppt)

Mr. Roylance announced that the work group would sunset, having
developed a good understanding of the issues involved in college and
university mail change of address (COA) processes and challenges.

Mr. Wilson described the test that developed useful information about
the process of integrating Postal Service change of address services
(PARS, NCOA^LINK^, FASTforward) into the college and university mailing
environment. The test was begun in August and early data showed that, of
241 corrections, about half were First-Class, half were Standard.
NCOA^LINK^ accounted for 90% of the corrections. After 1,136 corrections
had been processed, Standard Mail took a dramatic lead (about
two-thirds) and NCOA^LINK^ handled 95% of the changes. About 8% of the
mail that flowed through the test was affected.

Mr. Wilson said the work group has concluded that there is a clear need
for a standardized policy for handing school UAA mail, but there are
questions about whether and how the schools might take advantage of the
services available within the Postal Service. The work group determined
that there are inconsistencies in the way the schools manage mail,
including COA, that there is a potential value to mailers in developing
a more effective process, and that there is a clear rationale for
developing a standardized process for the colleges and universities in
partnership with the Postal Service.

Mr. Roylance summarized the work recommendations. First, the work group
should sunset even though there are issues that must still be addressed
in the future. Some of those issues should be referred to the National
Association of College and University Mail Services, because the
Association has the resources to pursue them. The Postal Service should
look at procedures and processes with an eye to developing standardized
policies specifically for colleges and universities with regard to
change of address management. Finally, the test was not large enough to
provide the best data. There were only four schools (out of more than 25
in the NACUMS membership) that participated, partly because the test was
proposed late in the school year. That test could be expanded in the
future to provide data that is more statistically valid.

Finally, there may be value in looking at some other unique mailing
systems, such as the military and some business-to-business systems.

***[Optimization of Preparation and Entry:]{.underline}***

**Developing an Interface to the AFSM 100 Automated Induction Process
(WG \# 96)**

**Dave Williams/Mike Winn**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1120MTAC96_Nov.2_V2.PPT)

Mr. Winn reported that this new work group is charged with developing
innovative preparation techniques to facilitate transition to the new
induction drive for the AFSM 100. Typically the mailer has handed off
mail in presort bundles, which then goes into the Postal Service's
sortation process. There is a manual transition in which the bundles are
taken apart and the mail is fed onto the sortation equipment. The work
group is looking at a new approach to that process, the foundation of
which is the AFSM AI (Automatic Induction) equipment.

The work group made a site visit to the USPS Southern Maryland facility
to better understand the flow of mail through the device, and then
visited R.R. Donnelley in Lancaster, PA to better understand the
printer's preparation process. The question to be addressed is the
difference between the traditional presort-based mail preparation and a
new machine-based system.

Mr. Williams showed a diagram of the AI attached to an AFSM 100, and a
photo of the Automation Capable Tray (ACT) which is barcoded. When mail
that has been scanned is put into the trays, full tracking is possible.

The goal is to eliminate the transition handling of presorted mail, a
process that is labor-intensive. Initial field tests in Pittsburgh were
successfully completed in September and the Postal Service is moving
ahead with Phase One deployment, installation of 210 AIs in 57
facilities, to be completed by September 2006.

**Improving the Drop Shipment Process (WG \# 87)**

**Anita Pursley/Cindy Mallonee/Carla Siniscalchi**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1130MTAC Presentation 87_11-02-05_UpdateV6.ppt)

Ms. Siniscalchi reported that all facilities will be on the FAST system
by the end of November. About 73% of appointments are being made online
and 20% through Web Services. Only 3% are now by phone and 4% are
unscheduled arrivals. Mr. Williams's group has assessed the volume of
flats that can be accepted in a facility, looking at the equipment and
the procedures. Minimum standards have been defined. The next step is to
evaluate slot availability. Monitoring is under way for unscheduled
arrivals, no shows, declined appointments and pallet discrepancies.

The October 23 release provided an easier online entry process,
including the ability to process multiple 8125s on a single page. The
deadline time for making changes to appointments has been reduced from
eight hours to one hour. Between eight hours and one hour, appointment
requests must be made by telephone. E-mail inquiries may be directed to
<FAST@usps.gov>.

Ms. Siniscalchi mentioned some of the enhancements since the last MTAC
report. Appointment content can now be entered on a single web page that
can handle multiple 8125s. Mailers may also use online validation to
ascertain whether the appointment facility is able to accept deliveries,
and find out if there are any last minute diversions to other
facilities. A mailer's customer may also verify the status of
appointments and the reasons for any cancellations.

Concerning barcodes on pallets, the mailer should be aware that use of
Web Services will be required to integrate the entire process with
PostalOne! Even so, mailers may use pallet barcodes to access
information about appointment status, and all mailers should begin to
use pallet barcodes.

**FAST for Periodicals (WG \# 95)**

**Ted Freedman/Cindy Mallonee**

[**Click here to view
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/1145MTAC 95 Update 1103 v2.ppt)

Mr. Freedman reported that work group \# 95 began work in September,
identifying some of the challenges of integrating Periodicals with the
FAST system. To get a handle on process flow, the work group conducted
site visits to a consolidator and to a periodicals printer. The work
group will begin to look at service providers, adequate and timely
advance notice verification, and processes for Standard Mail to see if
there are common elements that would be useful to the Periodical Mail
process. Through the end of March, the work group will look at high
level and detailed requirements in anticipation of developing a test
process in April.

**Summary & Adjourn**

**Joyce McGarvy**

Ms. McGarvy expressed appreciation to those who contributed to a
successful 40th anniversary celebration, and to Mr. O'Brien and Mr.
Lubenow for their significant contributions to the leadership of MTAC.