**Highlights**

**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**

The Mailers' Technical Advisory Committee (MTAC) celebrated its 40^th^
anniversary. Postmaster General John E. Potter honored the 40-year
partnership stressing the significant value which has been provided all
these years by MTAC for the mutual benefit of both the Postal Service
and the mailing industry.

The Postmaster General recognized past Industry and Postal Chairs by
name, and gave special thanks to current Industry Chair, Bob O'Brien,
who will retire at the end of this year after serving a three-year term.
He also honored the longest serving MTAC member and former Industry
Chair, Bill Hoyt. Mr. Potter announced that a special room will be
provided at USPS Headquarters for MTAC members when they are in town for
meetings. He presented MTAC members with a plaque recognizing 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 Mr. O'Brien 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,

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

**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 marketing campaigns for the holiday
season. A festive snowman cookie will carry the banner in most ad
pieces. The centerpiece of the campaign is the printed Holiday Shipping
and Mailing Guide that will be delivered to every postal address in the
country. Ads will appear in a wide variety of venues -- magazines mainly
targeted at women, who are the main holiday gift buyers; radio ads to
publicize convenient carrier pickup; new holiday web pages on usps.com
(including a downloadable Holiday Shipping and Mailing Guide); ads
broadcast on television, Internet, radio and subscription satellite
radio.

Field offices will drop 50 million colorful postcards in local mail
boxes to advertise products and services available at local post
offices, and there will be new ad ideas -- ad screens at movie theaters
and transit ads (i.e. huge ads on the sides of buses and commuter
trains). Retail sites have added holiday products -- holiday stamps,
postcards, gift boxes, gift tags, wrapping materials and so on.

Public Relations created a media box filled with product samples,
including the Snowman Cookie. It goes to 1,500 media outlets, with a
weekly follow-up postcard containing a relevant story that can be used
on air. Finally, a private television production company will produce a
holiday special based on kids who sent letters to Santa through the
mails. The program will follow the experiences of several of the
children and be aired on December 9.

**Transformation 2006 -- 2010 Update**

**Linda Kingsley, VP**

**Strategic Planning**

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

Ms. Kingsley announced that the Strategic Transformation Plan 2006-2010
was issued on September 30, 1995. The Plan incorporates the formerly
separate Five-Year Strategic Plan, the Annual Performance Plan, The
Transformation Plan, and the Transformation Plan Progress Report. It
will be updated annually.

The Plan reflects the need to continue the progress made under the first
Transformation Plan issued in 2002. Even though much success has been
achieved under that Plan, there continue to be challenges. First-Class
Mail volume has declined and its contribution is only partially offset
by increases in Standard Mail. The delivery network is continually
expanding. There is a continually raising bar for service in the
delivery industry and increased competition from commercial carriers.
Pressing workforce issues include the need for scheduling flexibility
(because the steady volume of First-Class Mail is being replaced by the
irregular volume of Standard Mail), and the large number of managers who
will be retiring in the next few years.

The Plan's five-year objectives of the are to reduce costs by \$5
billion, to increase revenues by expanding services and the customer
base, to continue to advance employee engagement in serving customers,
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.

The Plan is built around four main strategic goals -- increasing
revenues, reducing costs, improving service and achieving results with a
customer-focused, performance-based culture. Some of the specific
approaches include 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.). A major focus in cost reduction is
on the high-labor delivery process and the rationalization of the
transportation and facilities network. The effort to "connect" the front
line employee to the customer will continue. There will also be a major
focus on optimizing service across all customer contact points.

The full text of the Strategic Transformation Plan 2006-2010 is
available at www.usps.gov.

**USPS Financial Update**

**Richard J. Strasser, Jr.**

**Chief Financial Officer & EVP**

[**Click here to see the
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. He shared information reflecting that the Postal Service has
essentially fully funded both the CSRS and FERS retirement programs.
Between the two programs, total assets related to the Postal Service
portion of these funds amount to \$239 billion at the end of 2004 and
total obligations amount to \$233 billion. 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.

Although, Public Law 108-18 modified Postal Service funding of the Civil
Service Retirement System, it establishes 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. 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. 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 see the
presentation**](https://ribbs.usps.gov/files/mtac/MTAC1105/150MTAC Oct service Hurricanes r2.ppt)

Mr. Galligan described the impacts 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, but
major damage to the Louisiana area Postal facilities and service. Before
Katrina hit, delivery staff created a mapping system 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 buildings that were usable, or tents, trailers
or other temporary quarters); and green zones, where service was
essentially unaffected. 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 impacted, almost all were back at work by October 28,
most at their original jobs, while some moved to other areas in the U.S.
A small number were not back at work. In terms of processing operations,
mail sorting was moved mainly to Texas sites, route changes were made, a
number of temporary distribution sites were established, temporary
systems were set up to forward mail and work with changes of address,
and temporary local distribution sites (some even in tents) were set up
for customer mail pick-up.

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 almost all were fully restored by October 13. Change of
address requests exploded from about 19,000 on September 2, increasing
to a total of over 630,000 by October 30. 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.

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 change of addresses were suspended.

**Association Presentation**

**Gene A. Del Polito, President**

**Association for Postal Commerce (PostCom)**

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

Mr. Del Polito outlined the history of the Association for Postal
Commerce (PostCom), mentioning a number of important accomplishments:

-   Facilitating the first Industry-Postal Service exchange focused on
    advertising mail

-   Proposing that unrelated business income be a test to distinguish
    between regular mail and nonprofit mail

-   Working to put new barcodes in the address area of an envelope
    rather than in an area that could be used for ad copy

-   Calling for mail rate classification reform that would reflect the
    actual costs of processing various classes of mail and would take
    into account the savings from worksharing

-   Conducting the first national PR campaign to inform the public and
    legislators about the economic importance of ad mail

-   Supporting a less-than-inflation, across-the-board rate increase in
    1994 to expedite increased revenue for the Postal Service

-   Participating in the Postal Service's effort to reform First-,
    Second- and Third-Class Mail

-   Proposing an increase in automated letter weight from 2.5 ounces to
    3.5 ounces, and an increase in Bound Printed Matter and Nonprofit
    mail from 10 pounds to 15 pounds -- both were approved.

-   Proposing a bulk rate for parcel returns that resulted in the Bulk
    Small Parcel Return Service

-   Contributing to the Postal Service's definition of requirements for
    the new Standard Mail Class

-   Promoting the first Postal Summit on Flat Mail Processing and
    Automation and the first Industry CEO Conference on postal reform

-   Spearheading the creation of the Universal Postal Union's (UPU)
    Consultative Committee, bringing the voice of the consumer to the
    UPU table.

Mr. Del Polito concluded by mentioning that PostCom serves on the UPU
Direct Mail Advisory Board as well as the Smithsonian National Postal
Museum Advisory Board

**Association Presentation**

**James Pierce Myers, EVP & Counsel**

**Parcel Shippers Association**

**[Click here to see the
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. 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.

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. 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. 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 see the
presentation](https://ribbs.usps.gov/files/mtac/MTAC1105/305MTAC100_MLOCR_GENERAL_session.ppt)**

Mr. Gillotte explained that this new work group will define 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 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.

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

**Scott Lorenz/Pritha Mehra**

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

Mr. Lorenz stated that 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 must be readily available to the publishers,
printers and audit bureaus.

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 (volume, issue
number, etc) that could result in duplications that might confuse the
system. Also, the weight and ad percentage process should be more
clearly and fully defined -- there may be ways to make the process more
efficient.

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

**David Steinhardt/Pritha Mehra**

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

Ms. Mehra noted that the work group had three teams to look at vision
for the future, barcodes, and a team to consider design and concept
testing. The first two teams have completed their work. The vision team
recommended a full court press on electronic information input and
exchange, and the barcode team approved the current barcodes -- the four
state barcode, the new pallet barcode and the 24-digit barcode.

The design and concept testing team is working on improving the
plant-verified drop ship process, with a focus on eliminating paper \--
a seamless mailing induction program. The work group worked with
PostalOne!, already involved in the electronic 8125 and a drop ship
management system A pilot test in two phases was planned. 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 has been completed and consisted of testing the basic
processes, including the handheld scanners and information collected.
Phase Two will validate postage rates claimed by the mailers, identify
schedule conflicts and develop an automated adjustment process to
resolve the conflicts. It successfully generated electronic 8125s and
demonstrated successful data exchange. 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
development and delivery to the Postal Service and MTAC of a final
report and recommendation.

**PostalOne! Postage Payment &**

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

**Phil Thompson/Pritha Mehra**

[**Click here to see the
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 10.0 included an electronic
8125, eMIR enhancements, electronic postage statements and the first
version of Postage Statement Wizard. Release 10.1 should be available in
January.

The work group had originally been charged 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. Currently, the
PostalOne! system must be shut down briefly for maintenance. Since the
job is done, Mr. Thompson reported that the work group will sunset after
this MTAC meeting. He announced that a user group will be established to
support users of PostalOne!.

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 CAPS
to all customers. Postage Statement Wizard will be enhanced to allow
entry of postage statements online. Finally, there will be enhancements
to the electronic 8125,

Ms. Mehra paid tribute to three volunteers who have supported the work
group since its inception -- Rod Ryan (R.R. Donnelley), Debbie Cooper
(Quebecor) 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 -- 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. He announced that, on
December 31, 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 and 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 described the Office of the Inspector General (OIG), as
having two main missions -- 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 OIG's law enforcement
investigators, called special agents, focus on criminal and
administrative violations without regard to the position or seniority of
the individuals involved.

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

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. 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 and restitution.

**Surface Visibility Update**

**Paul Vogel, VP Network Operations Management**

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

Mr. Vogel explained that Surface Visibility is an internal control
system that requires that 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 trucks or trailers that move the mail from facility
to facility. There is a continuous scanning of the mail based on a
nesting concept --letters nest into trays, trays nest into pallets, and
pallets nest into trailers and trucks. Everything is barcoded in the
process. Through the continual scanning, the Postal Service and the
mailer will be able to track each mail piece.

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. The system is "up" and ready to
go in 111 larger facilities that handle 85% of the mail.

**Legislative Update**

**Thomas G. Day, SVP**

**Government Relations**

Mr. Day discussed HR 22, which passed during the summer, and S 662,
which has been sidelined, partly because of the "fair and equitable"
rate issue. When the House version passed, the administration issued a
Statement of Administrative Policy (SAP) that basically required that
the outcome must be budget neutral. The SAP addressed the financial
aspect of the law, that the Postal Service must cover all financial
obligations. Mr. Day explained that the escrow requirement, which is
\$3.1 billion in 2006 and escalates thereafter, is a sticking point as
far as the Postal Service is concerned. In the next ten years this would
mean a cash flow impact as a result of the administration's policy of
\$90 billion.

Mr. Day also discussed the Board of Governor's September letter which
covered 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 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.

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 and it would almost
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, Mgr. Service**

**Performance Improvement &**

**Sue Redman, eMIR Program Mgr.**

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

Mr. Fisher reported that 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 the effort to get 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%. There has been a consistent
improvement in reporting, and there is also better volume reporting and
improved container label information. Mailers expressed concern about
access to eMIR reports because they must register and the information is
only available to the mail owner and preparer. A wider distribution of
information might be appropriate. There have also been requests that
there be a single eMIR contact for a large company.

**Association Presentation**

**Neal Denton, Executive Director**

**Alliance of Nonprofit Mailers**

[**Click here to see the
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 and that the Alliance has continued to participate
with others in the industry in supporting legislation important to the
nonprofit mailers, and to the industry as a whole. The Alliance has
supported legislation for federal funds to pay for the difference
between the nonprofit preferred postal rates and the commercial postal
rates, defended that legislation when there was an effort to repeal it,
and supported the 1993 Revenue Foregone Reform Act that finally
guaranteed nonprofit rates, making the reimbursement unnecessary. The
Alliance has supported MTAC through active membership participation, and
has worked with the Postal Service to develop eligibility rules for
nonprofit mailers, designating what can and cannot be mailed under the
nonprofit 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.

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

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

**Mury Salls/Bob Fisher**

**[Click here to see the
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 or as accessible as they could be. The
work group intends to develop 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.

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

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

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

**[Click here to see the
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 more useful for Standard Mail mailers. 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. As
a first step, the work group will identify and prioritize issues and
develop a plan to address the above problems.

Ms. Jones discussed NCOA^LINK^ performance and statistics. NCOA^LINK^
Full Service Provider (FSP) provides 48 months of data, and Limited
Service/End User (LSP/EUM) 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, which has been terminated, processed 29 million and matched a
half million.

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

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

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

Mr. Lien described the mission of work group #97, 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. Twenty issues have been identified, including 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 see the
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 processes and challenges.

Mr. Wilson reported on the final results of the test begun in August.
The test moved a certain amount of student mail out of the school change
of address (COA) system and into the Postal Service, which handled 1,136
corrections. Standard mail accounted for about two-thirds of the
changes, First-Class most of the rest. NCOA^LINK^ handled 95% of the
changes. About 8% of the mail that flowed through the test was affected.

Mr. Wilson stated that there is a clear need for a standardized policy
for handing school undeliverable as addressed (UAA) mail. There are many
inconsistencies in the way schools handle change of address, but there
are questions about whether and how the schools might take better
advantage of the services available within the Postal Service.

Mr. Roylance announced that the work group will sunset and that the
National Association of College and University Mail Services will handle
some remaining issues. He suggested that the Postal Service should look
at procedures and processes with an eye to developing standardized
policies for colleges and universities with regard to change of address
management.

***[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 see the
presentation](https://ribbs.usps.gov/files/mtac/MTAC1105/1120MTAC96_Nov.2_V2.PPT)**

Mr. Winn described the work group charge, to develop 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 AFSM AI is
an automatic handling device that should eliminate that labor intensive
step.

After site visits to two facilities employing the AFSM AI, the work
group will look at the transition process. A successful preliminary test
at the USPS Pittsburgh facility allowed the Postal Service to make the
decision to move ahead with deployment, which will put 210 AIs into 57
facilities by September 2006 as Phase One of the deployment.

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

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

**[Click here to see the
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. Currently 73% of appointments are being made
online, 20% through Web Services, 3% by phone and 4% are unscheduled
arrivals. Minimum standards for available volume capacities have been
defined, to be followed by an evaluation of slot availability.

Enhancements in the October 23 release include an easier online entry
process, the ability to enter multiple 8125s on a single online page,
online validation to check on any changes or diversions to other
receiving facilities, and verification of appointment status and reasons
for any cancellations. 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.

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

**Ted Freedman/Cindy Mallonee**

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

Mr. Freedman reported that work group \# 95 is responsible for
developing a plan to add Periodicals to FAST. After site visits to a
consolidator and to a periodicals printer the work group mapped out the
processes involved and will look at Standard Mail processes within FAST
to identify common elements that would be useful to the Periodical Mail
process.

**Summary & Adjournment**

**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.