**Mailers' Technical Advisory Committee**

**General Session**

**September 12, 1996**

**Minutes**

The meeting was called to order on Thursday, September 12, 1996, by
**Pat McGee**. He welcomed members and guests and introduced Vice
President of Operations Support **Allen Kane** to discuss the fall
holiday mailing season.

Mr. Kane indicated that this year's fall holiday season would operate
under the same basic framework as the previous two years, as those had
worked well. However, some adjustments have to be made due to the
reclass changes to the network. He discussed some trends in reclass
indicators: (1) an increase in number of vans is due to trays with light
loads; (2) an increase in delayed vans at BMCs from 2 or 3 percent to 8
percent; (3) sack sorter capacity appears not to be a problem; (4) an
increase in cross-dock pallets; (5) a growth in pre-bar code mail
volume, which provides better service and efficiency; (6) a trend toward
decreased work hours and opening unit operations costs, in part due to
increased automation of volume; (7) a slight decrease in drop ship vans
at BMCs and SCFs; and (8) inventory of equipment appears steady and,
therefore, not a concern.

Mr. Kane then discussed pending issues. One pending issue is exceptions.
The number of exceptions has come down; however, remaining exceptions
create dual networks, which has a cost impact. He also emphasized that
tray problems, such as trays not strapped properly and improper
labeling, have a huge impact on bulk mail centers. Lastly, he cited
pallet problems, similar to tray problems.

Moving into the fall mailing season necessitates adjustments in BMCs.
Mr. Kane said that in the last two weeks an analysis of every BMC has
been done and an alternate game plan put together to offset some of the
trends seen in reclass.

Next, Mr. Kane introduced **John Kelly** to discuss the New York Key
Program. Mr. Kelly discussed some of the issues involved in implementing
the New York Key Program. Although only approximately 60 percent of the
necessary address information has been collected, implementation is
expected to start in October with a Federal Register notice and
conversion of lists in March, with hopefully an effective date of June
1998. He added that although the key system will hopefully increase mail
efficiency in New York, the decision to transport to other urban areas
will have to be made individually.

Mr. Kelly then responded to questions. Regarding the June 1998 effective
date,

Mr. Kelly said that the qualification will be the lowest step of sort;
building discount will no longer qualify. He added that the cost to the
mailer would depend on how their file is set up. As far as impact on
package delivery, the carriers would know who is in each apartment, as
each receptacle would have its own number. This number would not be a
ZIP+4 number, but a unique identifier for a particular receptacle, and
would be printed on the address line. He emphasized that apartment
numbers in New York City do not work at present. Eventually the key
number will be a permanent part of the address base. Advance
notification of the key number to those changing address is intended.
Mr. Kelly clarified that the key system currently is intended for
Manhattan, although it may be expanded the other boroughs on a more
limited basis.

Next, Mr. McGee introduced **Kenneth Hunter**, Chief Postal Inspector of
the Postal Service, to discuss Inspection Service Customer Initiatives.
Mr. Hunter focused on three initiatives: (1) credit card fraud; (2)
rebate fraud; and, (3) mail order fraud.

Mr. Hunter introduced **Ricky Dodd** to discuss credit card fraud. Mr.
Dodd outlined the Non-Received Issued (NRI) mail theft and fraud loss
prevention initiative, in partnership with other credit card industry
members, which focused on proactive prevention measures. He specified
five working groups which work together to facilitate communications and
develop solutions to credit card fraud: (1) NRI Loss Reporting Group;
(2) Department of Justice Liaison Group; (3) Pre-Sort Mail Security; (4)
Check Fraud; and (5) Account/Identity Takeover. Additional communication
efforts include a credit card newsletter, designated division credit
card coordinators, and the International Association of Credit Card
Investigators (IACCI) electronic network to share information.

Mr. Dodd outlined some successes of the NRI mail theft and fraud loss
prevention initiative, which has seen a tremendous drop in NRI losses.
He spoke about the development of airport mail security reviews, better
use of Express Mail drop ship, and the development of the application
fraud reference guide, which will be available soon. These application
fraud reference guides will be sent to those who requested one at the
meeting. Since 1992, fraud losses, due to credit cards stolen from the
mails, have decreased by about half.

Mr. Hunter added that the common database helps identify trends in fraud
and theft, and that the fraud application guide can be useful in many
areas of fraud, not just credit card fraud. Next, he introduced **Rick
Bowdren** to speak about rebate fraud.

Mr. Bowdren gave a brief overview of rebate fraud, its causes, and
effects. He described the rebate Group task force which was formed to
address the causes of rebate fraud: the lack of uniformity in the
design, development, processing and handling, and the need for more
fraud prevention. A handbook was created and published with a
collaboration of best business practices. Copies may be obtained by
contacting Mr. Bowdren at (513) 684-8000. The task force determined that
clear and concise industry guidelines governing mail-in offer
development and an information collection process were needed. The task
force recommended a series of progressive steps to combat rebate fraud:
(1) industry pre/post promotion review of data collection; (2) voluntary
discontinuance; (3) administrative sanctions against abusers; and (4)
law enforcement action.

Mr. Hunter emphasized the necessity for cooperation in the effort to
fight fraud. Next, he introduced **Chuck Wilson** to discuss the newest
initiative, the Confidence in the Mails or the Mail Order Industry
Initiative.

Mr. Wilson stated the general objectives of the Mail Order Industry
Initiative: to reduce non-receipt dollar losses and fraud dollar losses.
He outlined several strategies: (1) the attractive loss parcel reporting
system for collection and analysis of loss information, with a pilot
project with Fingerhut Corporation; (2) the implementation of prevention
strategies; (3) investigation of losses; and (4) looking at issues from
a systematic standpoint as opposed to individual problems. He added that
the working group would be meeting on September 16 and 17. If you have
any questions, please contact Mr. Wilson, Detroit Division, at (313)
226-8033.

Mr. Hunter then responded to questions. Regarding postage meter fraud,
he stated that over 20 different methods of cheating the Postal Service
have been identified in the last three years, such as counterfeiting and
copying, and he believes that is just the tip of the iceberg. He cited
new sophisticated detection tools and statistical analysis to help in
prevention efforts.

With regard to commercial mail receiving agents such as Mailboxes, Etc.,
Mr. Hunter affirmed that many criminals have seized upon the existence
of such addresses to conduct fraud. The Inspection Service will be
working closely with the CMRA industry to reduce the problem.

Mr. Hunter reiterated that first and foremost, efforts are to be
proactive to prevent fraud.

**Yvonne Reigle** thanked the participants and introduced the 1997-1998
leadership team for subcommittees:

\(1\) Mury Salls, First-Class/Expedited Mail;

\(2\) Howard Schwartz, Periodicals;

\(3\) Dan Minnick, Standard Mail;

\(4\) Lloyd Karls, Parcels;

\(5\) Peter Moore, Addressing & ZIP+4;

\(6\) Joe Lubenow, Engineering & Technology/Transportation.

**Chris Rebello** added the importance of finding a solution to the
problem of tray labels falling off.

Before adjourning the meeting at 11:02 a.m., Ms. Reigle stated that the
cut-off for new issues for agenda items for the December MTAC meeting is
**November 8**.

**Parcels Meeting**

September 11, 1996

Ed Meszaros, Industry Chair

Richard Sherrill, Postal Chair

**1. Reclassification Update:** Lloyd Karls stated that there is data
being collected in the field to help determine reclass positions. There
will be a meeting in early to mid-October to present these findings.
Industry will then report to the USPS their feedback. The test year for
reclass has not been determined. The issue of whether this is reclass or
a revenue case was discussed. Reclass should be to improve service and
bring in new products. The effect of the LPSS was discussed.

**2. Minutes of the Parcel Working Group:** This was given by Phil
Parizino. He discussed:

-   The Greensboro MTAC meeting minutes

-   Swiss Colony Video

-   LPSS

**3. Bulk Insurance:** A presentation was given by Jon Wittnebel.
(attached)

**4. Changes in Collection Procedures:** (attached**)** A discussion on
these changes brought out the issue of several industry spokespersons
stated that they were getting APO and FPO parcels returned. When they
made inquiries into this they seemed to get different messages from the
field and headquarters. What is the current policy? This is described in
the attached.

**5. Track and Trace:** Julie Rios discussed the following:

-   TNT is on schedule for the BOG meeting

-   BMCs are being wired to transmit TNT data for machineable parcels

-   Near-real time scanning is being expanded to 500 carriers in the
    Tampa test

-   The scanning devices being planned will have \"panic\" buttons and
    other functions other than just TNT.

-   There is a Priority Mail test at the end of October. This will
    include a peel-off label.

-   Julie is looking for businesses that mail +500 Priority Mail daily
    for the test.

-   May 98 is the goal for full deployment of all products for TNT.

**Standard Mail Subcommittee Meeting**

**September 11, 1996**

**Industry Chair:** Daniel J. Minnick

**Postal Chair:** Tim Reeter

**Replacement of EX3C With ADVANCE**

In response to questions raised during the day, Pat McGee provided
explanation of the Postal Service's position regarding the announced
discontinuance of EX3C and replacement by ADVANCE.

Mr. McGee offered that the USPS no longer felt that the information
provided by EX3C and EX2C was not actionable and, therefore, represented
about \$6 million of incurred costs with no appreciable benefit. He
further explained that ADVANCE could provide delivery information that
was a representation of the mailing delivery to be supported with
periodic EX3C verification. He indicated that the Postal Service did not
see any value in having aggregate delivery information for Standard
Mail.

Several in the audience asked about the Postal decision including:

\- if aggregate results were not of interest, why preserve the
First-Class program (EXFC)?

\- industry testing had shown there were sharp discrepancies between
EX3C and ADVANCE.

\- how would ADVANCE represent a mailing when less than half the
involved offices reported?

\- how ADVANCE could be valuable since it did not measure "to the door"?

\- if, as stated, \$2 million for 2C subscriptions, then was the
probable \$2 million net for 3C too

much for monitoring performance for over 65 billion pieces of mail?

Mr. Minnick solicited comments from interested parties after the
session.

**Standard Mail Focus Groups - Report**

Ruthie Ewers shared how communications and product exposure were greatly
enhanced by Focus Groups. As Southeast/Southwest Industry Chair, Ms.
Ewers enthusiastically expressed her personal commitment and desire for
continuing industry and Postal support for Focus Groups as the singular
most important means of getting the word to the masses. She did raise an
issue that had come from her Focus Group: why is the "tap test"
pertinent when a legitimate barcode has been reapplied to the face of
the window envelope? This was acknowledged as over-zealous behavior by
the involved Postal Acceptance employees and would be resolved
immediately.

Many thanks to Ruthie for her dynamic, hard-hitting and humorous
remarks.

**Return Rates for Third-Class Mail Pieces**

Ashley Lyons sent a note stating that no new action since his last
report.

**Problem Created by Having Less than 200 Non-Barcode Pieces Per
Destination Entry Point**

Cheryl Beller provided a solution for the inefficiency that
Classification Reform's creation of essentially three subclasses had
fostered within segmentation for Destination Entry. Ms. Beller said that
a notice would be published indicating that the eligibility minimum
(such as 200) would be applied per "job" as long as all of the "job" was
entered at one physical location. This should essentially resolve the
issue.

Ms. Beller also answered two implementation issues:

\- Would "fletter" rules relax so more than 10% no-CR/No-barcode could
be in a palletized

mailing?

\- Would MxBMC pallet rules relax so more than 10% could exist in a
mailing?

Ms. Beller said that neither of those scenarios were being considered
for change.

**Update On Proposed "Return to Current Resident" Service**

Rocky Matthews reported that it was technically feasible to place
"mailer criteria" within the ACS system to initiate a return of the
mailpiece to the "current resident" after the change-of-address
processing had been completed. However, the existing ACS system is
maxed-out. Therefore, this process could not be implemented until at
least early '98. However, Mr. Matthews is initiating discussions to get
procedure, pricing and protocol in place by the technical availability
date.

**Possible New Service - Notification of Delivery Duplicates**

Rocky Matthews also responded to a suggested new service that would
enable carriers to identify and communicate the existence of a duplicate
mailpiece within a specific days mail.

Mr. Matthews was concerned as to the practicality of a venture. With
automation processing more and more mail directly into delivery
sequence, the carrier is denied the opportunity to identify duplicates
without bringing them back from the street. What is a duplicate; how
would a carrier distinguish between a mailpiece where the same name is a
duplicate versus where the mailer intentionally put two pieces into that
address on the same day?

Mr. Minnick solicited participation in a Task Group for this issue, with
Chris Rebello as Leader. You may contact Mr. Rebello at 719-531-2188, or
Mr. Minnick at 847-517-5683.

**CustomerPerfect! - Overview**

Bob Scanlon presented an overview of the Postal Service's new process
quality program. Based upon the criteria used to judge for the Baldrige
Award, CustomerPerfect! is a continuous cycle of needs identifications,
goal setting and review which through time closely ties process
performance to customer needs.

**Classification Reform Implementation**

Many thanks to Charley Howard, Dan Goodkind, and the Standard Mail
Subcommittee for their insight and diligence in exposing and educating
the Postal Service to the serious impact created by the elimination of
the Three-Digit Carrier Route Trays. That traying level has been
reinstated.

However, the change did not include the Three-Digit Carrier Route sacks.
Joe Schick described two scenarios where over a thousand "unnecessary"
sacks were created in a single string of one mailing. This could mean
nearly 100,000 "air" sacks per week out of one of his company's
facilities each week. Mr. Minnick asked that more data be collected so
that full analysis can be made at the December MTAC meeting.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Daniel J. Minnick

Industry Chair

**Addressing and ZIP+4 Subcommittee**

***September 11, 1996***

***Three-Digit ZIP Changes In Northern Virginia***

Richard Strasser, District Manager for Northern Virginia began the
meeting. He described the characteristics of his district which led to
the need for a three-digit realignment to improve delivery service. Dick
outlined the process by which customers in the area were notified of the
new information. He added that the implementation appeared to be moving
smoothly. He also asked for the help of the membership. The new ZIP Code
information was announced in January and appeared in the June and July
Address Information System City State file. While mailers are gradually
making the conversion to the new ZIP Codes, the district has received
some complaints from residents who are attempting to supply address
information over the phone either when ordering new goods and services
or making corrections to an existing record. It appears that some
on-line verification systems have not been updated with the new ZIP Code
information. Consequently, the caller is being told that the ZIP Code
information they are supplying is invalid, that they must be mistaken
about the ZIP Code they are attempting to furnish and that the Postal
Service "says" that the ZIP Codes are incorrect. Dick asked that the
members spread the word about the ZIP Code changes with their members
and ask them to ensure that all systems are updated with the new ZIP
Code data.

***Ancillary Service Endorsements***

Rocky Matthews announced that the Federal Register on new service
endorsements would be published this month. He asked that the members
take note and provide comments during the 30 day comment period. He
anticipates an implementation date of January 1997, with a dual system
operating for a year to allow mailers stock to become depleted. Peter
Moore also encouraged positive comments to be supplied when the Federal
Register notice is published.

***Impact of Classification Reform on Small Mailers***

Peter then described some of the experiences which he had had subsequent
to Classification Reform. He received many calls from smaller volume
mailers who were very uncertain about what to do under Classification
Reform. He described a need to have something for those customers which
would tell them what to do and how to do it. Several members also
related similar stories and most cited the Postal Business Center as an
excellent resource for those mailers. Peter commended the recent Postal
Bulletin article which provided a lot more information about PAVE
certified software, such as the platform used, price ranges, etc. Hank
Cleffi asked the group about the types of tools that could be provided
to mailers. One suggestion was to provide the Business Mail Entry
personnel and other delivery unit staffs who accept mailings with
information on the Postal Business Centers and instructions to direct
customers to that group. Another suggestion was that the various
alternatives be outlined in greater detail, using actual cases perhaps,
so mailers could make more informed decisions. The presence of local
service providers should be made more widely available. Others called
for economic models to be developed to assist mailers in making the
right decision for their business. Others suggested that the continuing
change in technology may make mailers more able as time goes on. The
case studies or economic models will need to be regularly updated as a
result . Peter asked for volunteers to help develop some additional
suggestions or resources.

***Five-Digit Scheme Sort***

Ralph Moden announced that the 5 digit scheme option will become
available in October. 5 digit scheme is an optional sorting procedure
for automation letters which allow mailers to group together 5 digit ZIP
Codes which the Postal Service performs the final sortation on a single
piece of equipment at the same time. Similar to the 3 digit scheme,
these ZIP Codes may be combined to meet the 150 piece requirement for
tray preparation and rate eligibility. New schemes will be issued every
other month and will be effective or mailings presented to the Postal
Service in a three month period following the release of the scheme
information. Further information is available through a Federal Register
notice and Postal Bulletin article.

***Manual Assignment of Carrier Route Codes***

Cheryl Beller announced a clarification of the policy for small volume
mailers at Enhanced Carrier Route Basic and Periodicals Basic rates.
Those customers who have used hard copy Carrier Route Information System
(CRIS) products in the past to assign carrier route codes manually will
continue their eligibility for carrier route rates as long as the
carrier route codes are updated within 90 days of the date of mailing
using the current hard copy CRIS available. Any sequence requirements
which apply to rate categories must also be met within 90 days of the
date of mailing using the available sequencing options.

***ZIP+4 Coding At Colleges And Universities***

Thom Roylance reported on a meeting held in conjunction with the Postal
Forum. The meeting was held at the behest of Jim Pehta. A joint task
force was assembled to address the problems surrounding college and
university addresses. The Postal Service, colleges and universities,
educational list mailers/compilers and software vendors were all
represented. Agreement was reached that a comprehensive guide to address
systems for colleges and universities needs to be developed. University
officials also need to understand the potential benefits that a
comprehensive addressing system can provide to the university. Thom
reminded the members that it is likely they are unable to mail at
discount rates to those institutions because of the difficulty in
matching addresses. Software developers have agreed to evaluate the
unique conditions that these addresses may pose with an eye to improving
coding rates. Thom also expressed concerns about his industry's ability
to meet the Move Update requirement.

***Implementation Of New Addressing Requirements***

Joe Lubenow reported on the requirements for non-profit implementation.
On October 6, the percentage requirements for barcoded non-profit
Periodicals and Standard A mail, sequence requirements in Enhanced
Carrier Route, Five Digit ZIP Code verification, update carrier route
codes within 90 days of the date of mailing, update barcodes within 6
months of the date of mailing and PAVE or standard documentation
requirements will be implemented. January 1, 1997, PAVE or standard
documentation, 100% barcoding for Periodicals and barcoded label
requirements will be implemented. On March 1, the requirements for
automation compatible reply mail enclosures will be implemented.

***Addressing Work Group Report***

Bob O'Brien reported on the Addressing Work Group's meeting.

One of the barriers to 100% barcoding is that the customer has supplied
a street address when they receive mail through a post office box. This
exists under two circumstances: when there is no delivery except through
post office boxes and, in some locations, when the customer resides
within 1/4 mile of the post office and rural route delivery exists
beyond the 1/4 mile radius of the post office. A list of ZIP Codes where
the 1/4 mile condition exists will be compiled.

Some time was spent on the "default" code issue, but since it was a part
of the main committee agenda, that is covered later.

The Postal Service has gathered the data on ZIP Codes where address
conversions have happened more than 3 years ago and there is no way to
establish a link between old and new address. The list of ZIP Codes will
be posted on RIBBS concurrent with a Postal Bulletin article on the
proper handling of mail in areas where address conversions have
occurred.

The other primary topic of the Addressing Work Group was the Automated
Barcode Evaluation (ABE) tool which has been deployed nationwide. ABE is
designed to be an objective tool which will evaluate the quality of
barcodes on letters. It will replace the subjective tests which had
previously been performed by postal employees. He added that Anita
Bizzotto had apologized to the group for the way initial implementation
had occurred, as the field was not adequately briefed on the way ABE was
to be used.

Bob outlined the process of ABE implementation. A burn-in phase will
occur from September 14 through October 13. During this time, the Postal
Service will be sure BME employees know how to use the equipment, that
some mechanical problems which have been identified are corrected, that
the tolerance limits on the barcode reader are appropriate and that an
SOP is issued to cover how ABE is to be used in the acceptance process.
During Phase 1 (October 14-November 17), mailings will be tested and
qualified using ABE. During Phase 1, if 85% of the barcodes in the
mailing are within the tolerance limits, the mailing will be accepted.
If less than 70% of the barcodes are within tolerance, non-automation
rates will be applied to the mailing. For mailings between 70% and 85%,
a financial penalty will be applied to the postage paid which equals the
percentage of barcodes out of tolerance. During Phase 2 (November
18-December 31), the percentage correct needed to gain access to
automation rates is raised to 90%. Effective January 1, 1997, the
percentage requirement is raised to 95%. Bob added that a number of
questions had been raised about specific conditions or procedures and
Anita assured the group that these would be answered or explained in the
SOP which is still being finalized. Members expressed concerns about the
calibrations and how frequently the machines would be reset, how to
handle failures and if staffing in BMEUs was sufficient to run the
process. Bob reiterated that the SOP had not been completed and that
their concerns would be addressed. Bob also stated that the reverse
address look-up process would be in operation but would not impact
acceptance except in the case of gross errors, such as all the same
numbers in the ZIP+4 code, etc.

***The Impact Of The Use Of Default ZIP+4 Codes On LOT And DPBC***

Peter then framed the questions concerning default codes. The Postal
Service is seeking to automate the sequencing of mail in high-rise
buildings. To do this, two steps must be accomplished. The calculation
of barcode information must be altered to allow the creation of unique
delivery point codes using secondary information. Once that has been
accomplished, it will become necessary for addresses to have secondary
information and the finest depth of ZIP+4 code if the Postal Service
will be able to delivery point sequence the mail. In places where the
finest depth of code is required to allow delivery point sequencing of
mail in buildings, the Postal Service would limit access to barcoded
discounts to those addresses on mailpieces which have the finest depth
of code. Addresses which have received the "default" ZIP+4 code for the
building would no longer be eligible for the rates. There is clearly an
operational necessity in these cases to get the mail properly addressed
with complete information. Paul Bakshi added that there are still some
internal concerns which need to be resolved before we can move forward.
He also stated that the Postal Service will be able to identify on a
building-by-building case where the most exact delivery point
information will be needed. Once the list of buildings has been
developed, a list of the "default" codes associated with those buildings
will be developed. The Postal Service will work with the industry to
determine what the impact of restricting the access to rates for the
addresses matching those ZIP+4 codes will be. Without the list to
evaluate, it is difficult to assess the impact of the proposal. However,
it should be noted the access to automation rates will not be restricted
for all addresses matching to building default ZIP+4 codes, just in some
cases where the Postal Service is using automation to delivery point
sequence mail within buildings. The list of impacted ZIP+4 codes will
not be available for a couple months. Peter added that the size and the
scope of the impact will vary based on the characteristics of each list.
One member offered that there might be an opportunity to help mailers
with lists with significant impact if other lists with similar
characteristics have a lesser impact. These mailers could be used as a
resource to provide tips or ideas on list management to help others
improve address quality. Peter also raised concerns about the Postal
Service limiting access to carrier route rates for addresses whose ZIP+4
codes do not appear in the Line of Travel product. Currently, these
addresses are placed at the beginning of the route.

***Address Coding/Business Center Group***

Peter concluded by thanking Doug Schmidt and the members of the Ad Hoc
Address Coding/Business Center group for their work. The group has
disbanded.

**First-Class / Expedited Mail Subcommittee**

**Meeting Minutes**

**September 11, 1996**

**[1. EXFC Quarterly Update]{.underline} -** The following data
represented the national performance during Postal Quarter III which
began on March 2, 1996 and ended May 24, 1996. First-Class Mail on-time
performance for Quarter III showed improvement in the overnight and
two-day categories compared to Quarter III of last year while three-day
service remained unchanged. On-time performance was 90 percent for
overnight committed mail, 80 percent for two-day committed mail, and 82
percent for three-day mail. Quarter III\'s overnight performance set a
new benchmark with the best performance ever achieved in this category.
The trend line for the performance of all three categories continues to
show improvement with the new high reached by overnight and two-day time
on-time delivery performance tying the existing all-time high score.
Copies of the data slides are attached.

**[2. Move Update Requirements for New Customers vs. Purchased/Rented
Lists]{.underline} -** Two approaches will be used for this item. In the
case of new customers initiating the request to change an address, the
mailer will continue to be eligible for a discount until the next cycle
change. This assumes that the mailer already has an established cycle.

Any other names which originate from a source other than the actual
customer will receive discounts only if documentation is provided by the
address source that the address had already been passed through the
moved update.

**[3. Status of other Move Update Options]{.underline} -** A brief
presentation was made on the options currently being considered for
implementation. Details of these will be provided as soon as they are
finalized.

**[4. Mail Acceptance Time Moved Up]{.underline} -** It was noted that
this is normally a local issue which should be handled through the
standard procedures established for problem solving by the Postal
Service. The mailers are asked to initially discuss the issue with the
Plants that are effected by the change in acceptance. It the problem can
not be resolved, then the mailers may go to the appropriate Area
Operations Center and then to the Operations Center in Headquarters.
This can be done by going through the National Account Manager or
Account Representative who can either contact the Operations Center for
the mailer or give the mailer the telephone number so that the can
contact the Operations Center directly.

**[5. Mail Acceptance Problems with the Customer Aapplied (MLOCR)
5-Digit Bar Code]{.underline} -** The Postal Service will be issuing
changes in the start location of 5-digit customer applied barcodes in
the September 26th Postal Bulletin with an effective date of October 1.
The new proposals will allow mailers to print the 5-digit barcode
between 4-1/4 to 2-3/8 inches from the right edge of the mailpiece. The
Postal Service still will prefer that the leftmost bar of the 5-digit
barcode be located between 4-1/4 and 4-1/8 inches from the right edge.
Thus, this relaxed requirement of allowing the 5-digit barcode to be
located within a 1-7/8 inch length results in tolerance of at least 1/4
inch rather than the present 1/8 inch.

**[6. New Customer Service Strategy]{.underline} -** The Postal Service
is in the process of establishing its new Business Customer Care Network
based on the goal of establishing a world class care system for its
business customers. The goal of this program is to establish a world
class system which can respond to the needs of its customers
proactively; identify and solve systemic problems; keep its management
informed of problems; establish cross-functional support systems for
resolving problems; and becoming technically superior in all areas that
it does business.

The Business Customer Care Network will be designed to have three levels
of Operations Centers, Headquarters, 10 Area Offices and the 85 Business
Centers. The Headquarters Operations Center will handle selected
National Accounts; the 10 Area Operations Centers will be responsible
for National

Accounts and selected Premier Accounts; and the 85 Business Centers will
handle the Premier Accounts, Major Accounts and Principal Accounts. The
major objective is to be sure that all business mailers will receive
excellent service from the Postal Service, thus increasing customer
satisfaction in dealing with the Postal Service. A copy of the
presentation overheads is attached.

Mury Salls

Chairman

**MTAC**

**Periodicals Subcommittee**

**SEPTEMBER 11, 1996**

[Charles Pace, Industry Chair]{.underline}

[Bob Kooken, Postal Chair]{.underline}

**Introduction**

Charles Pace opened the meeting by welcoming all participants to the
MTAC Periodicals subcommittee meeting and announced that this will be
his last meeting as Industry Chair and thanked everyone for their help
and recognized that this group has accomplished much over the years.
Charles discussed the Business and Courtesy Reply Mail design
requirements, due to start January 1, 1997 which still needs additional
clarification from the Postal Service prior to implementation.

**ADVANCE - Tracking and Monitoring**

**Recent developments involving Periodicals tracking**

Glen Cournoyer, Project Manager for ADVANCE, could not be in attendance
and asked Bob Kooken, the Periodicals Postal Chair to give the report.
Bob read Glen's report (copy attached) which included instructions for
participation in the ADVANCE program. Bob also noted that anyone
interested in having someone give a presentation on ADVANCE at their
company, can do so by contacting the National Customer Support Center
(NCSC) in Memphis (1-800-238-3150). Bob stated that the ADVANCE program
technical guide has been distributed to all ADVANCE customers through
the NCSC in Memphis. Bob said that the current threshold for Periodicals
ADVANCE is 25 pieces per carrier route.

**Periodicals Focus Group Report**

**Quarterly Report on Periodicals and related issues.**

Joyce McGarvy, Crain Communications, gave a report for Tom Tully,
National Chair for the Periodicals Focus Groups, concerning the recent
meeting that was held at the National Postal Forum in Washington, DC on
August 26, 1996. Each postal area reported that they did not experience
any service problems as a result of the recent Classification Reform.
She stated that service currently seems to be very good. Joyce also
announced that the Midwest/Great Lakes area Focus Group meeting will be
held in conjunction with the Standard Mail Focus Group meeting on
September 24 & 25, 1996 in Chicago. Joyce said that, at this meeting it
will include a tour of the new Postal Processing & Distribution center
as well as discussions on the upcoming fall mailing season. Anyone
interested in attending a focus group meeting is asked to contact their
Industry Chair in their area for an updated Focus Group calendar. A copy
of the Periodicals Focus Group Industry and Postal Co-chair list is
attached.

**Policy, Requirements and Methods (PRM)**

**Update on AMC procedures and other issues.**

Bill Strong, from The Strong Group reported on the PRM workgroup meeting
held September 10, 1996. Joel Rosen, Postal Service AMC Specialist,
spoke about the efforts being taken to complete the Air Mail Center
(AMC) information guide. He said that Alice Van Gorder, is taking the
lead and will have the guide placed on RIBBS. Suggestions were made to
include the guide on the Postal Web page. Joel mentioned that the USPS
is considering the placement of AMC information on the internet as well
as RIBBS. Also discussed by Joel was a list of operational issues
pertaining to the handling of periodicals between air carriers, the
Postal Service and publishers. Bill Strong expressed concern with the
deployment schedule for flat sorters which currently do not handle
tabloid size publications as well as a implementation timeline for
barcode rates for tabloids. Eugene Dunaway, AMC Specialist said that
there is a machine being tested in Pallatine, IL, that will handle
tabloid size publications. Bill announced that the comailing requirement
(DMM Section E230.8.5) was reviewed by the USPS and that there appears
to be no problem with comailing and that mailers are not being assessed
the same advertising portion as the publication they are comailing with.

**MILITARY Mail OPERATIONS**

Charles Pace introduced Joseph Eagle, Manager, Military Mail Operations
from the USPS International Group. Joe gave an extensive overview (copy
attached) on how mail was transported through the USPS to the Military
Postal Operations throughout the world. Joe stressed that, contrary to
popular belief, most letter mail is delivered to the military within 5
days and that other classes were delivered within 14 days. He did say
that some dispatches are being missed by mailers which could cause delay
or overlap of some publications. Joe also said that address hygiene is
an area that needs attention by the Military, Industry and the USPS. He
said that even though the Postal Service policy allows for forwarding
civilian mail for twelve months, military mail is only forwarded for 60
days. He said that not only do mailers have to concentrate on active and
inactive zipcodes, they should also delete addresses which are returned.
He said that subscriptions can be extended for the issues missed, after
the subscriber contacts the publisher with the proper mailing address.

**SIX PIECE SACKING MINIMUMS**

Charles Pace announced that Anita Bizzotto, Manager, Business Mail
Acceptance could not be in attendance to discuss this issue. Max Heath,
Landmark Community Newspapers, praised the fact that due to Anita
Bizzotto's and Charlie Pace's efforts, the six piece minimum requirement
has been relaxed. Sacks may now be sorted to Carrier Route, 5-digit or
3-digit with fewer than six pieces for service reasons, at the mailers
discretion, and this ruling will be published in an upcoming Federal
Register. If anyone wanting to start this type of sortation immediately,
they must contact their Rates and Classification Service Center. Max
also said that the Postal Service announced that a hard copy CRIS
(letter attached) file can be used to update records for matching
carrier route ID's.

Signed: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Charles L. Pace, Chair

**MAILERS' TECHNICAL ADVISORY COMMITTEE**

**ENGINEERING & TECHNOLOGY/TRANSPORTATION SUBCOMMITTEE**

**Industry Chair: Joe Lubenow**

**Postal Chair: Becky Brentlinger**

**Information Based Indicia - Roy Gordon:**

Roy Gordon of USPS provided an overview of the Information Based Indicia
(IBI) Program. The Postal Service is pursuing new methods for business
customers that use personal computer technology or postage meters to
generate communications to apply evidence of postage. The establishment
of a new form of postage indicia will enhance security of postage
revenue, support value added products and services, and improve the
level of detail and type of information by which USPS business and
processing activities are managed. The current meter impressions, which
date from 1920, will be retired within the next decade.

An Information Based Indicium consists of five parts: an optional
advertising art area; the town circle information; evidence of postage;
device nomenclature; and, a two-dimensional barcode. Associated with IBI
mail, a FIM mark is also required to assist in sorting the mail. It is
not seen as a replacement for permit imprints or pre-canceled stamps,
and is not planned for use on Periodicals or Standard Mail.

The IBI will be generated by a Postal Security Device (PSD) and host
software acting together. The PSD holds monetary registers and provides
information relating to these registers to the host system. The host
system generates the IBI contents based on information including the
rate, date of mailing, and postage amount, and in some cases, the
destination zip code. The specification includes an encrypted digital
signature to protect authenticity.

The proposed IBI will support the use of alternative printing
technologies including standard off the shelf laser and ink jet printers
using regular ink. At this time, the USPS does not plan to provide for
the use of invisible or UV ink, though this issue is open for comment.
The current USPS specification proposes the PDF-417 two-dimensional
barcode as part of the IBI, though the Postal Service is open to
consideration of alternative symbologies.

Roy Gordon discussed the roles of customers, vendors and the USPS under
the IBI program and explained that the roles will not change very much
from the current activities involving postage meters. The vendors will
supply authorized devices to the customers, who will apply the indicia
to mailpieces. Customers also obtain postage refills from the vendors.
The USPS issues license and audits the process.

To date, the USPS has published draft IBI and PSD specifications, and is
asking for industry comment through October 15, 1996. Additional
documents are under development, including policy updates, a Host System
specification, and an IBI Concept of Operations document. As the
documents are published in the Federal Register, public meetings will be
held to facilitate understanding of the program and to allow for
comments. To obtain more information about the draft specifications or
the public meetings, contact Terry Goss at 202-268-3757.

MTAC members expressed concern about the size and appearance of the
barcode, which may detract from the purpose of the mailpiece.
Representatives from the envelope industry particularly questioned
whether readability could be consistently assured without costly and
intrusive testing and monitoring procedures. Existing stocks of
materials may have to be redesigned and manufactured to different
specifications. On the other hand, if readability is not consistent,
this could have a negative impact on mail processing.

**PIEX - Rick Graff:**

Rick Graff reported on the new Centralized Automated Payment System
(CAPS), replacing the old CTAS system, which Rosemary Hamel presented at
PIEX. A recently published brochure on CAPS, which combines the twin
options of a centralized trust account and a centralized debit account,
can be obtained from the CAPS service center at 415-377-1334.

New optional services that can be paid for through centralized accounts
are: Address Element Correction (AEC), coming on line by the end of
1996; and Address Change Service (ACS) by the first quarter of 1997.

Under development is a postage statement application that will be
downloaded via Internet. This is a Java program, which would not just
provide the correct format for the postage statement but would allow for
local entry of line items and calculation of totals. The results can
then be both printed out and retained as a file. This should be
available on the USPS Web site next year, but will not be accessible
from RIBBS.

**Containers and Transportation - Jim Reifenberg for Rick Kropski:**

Jim Reifenberg discussed the USPS reinstatement on August 23 of
three-digit carrier route trays. As software is distributed and
pipelines of previously prepared mail are cleared, the letter mail
stream will become more efficient through the elimination of large
quantities of five-digit carrier route trays with few mailpieces.

Updating the status of the Drop Ship Appointment System (DSAS), there
has recently been an increase of 3% in no-shows, which is being
monitored. Dynamic entry was discussed and is already being utilized
with no apparent difficulties. The ADVANCE mail tracking program is now
linked to the DSAS system, and its use is included as a data item when
appointments are made.

**Automated Flats: Test of Extended Sizes - Sherl Johnson:**

Sherl Johnson of USPS provided feedback to mailers on barcoding tests
conducted since July 1 of small flats with trim sizes of 5 3/8" in
length by 7 1/2" to 12" in height. Unfortunately, many of the pieces
don't process well, including but not limited to those with relatively
thin cover stock of over 9" in height. However, these results may not be
conclusive because of the ongoing modifications to the equipment to
stabilize light weight pieces and to change the timing of the photo
cells to better recognize narrow pieces. More data also needs to be
collected for certain sizes and types. Therefore, the USPS has decided
to revamp the testing procedure, dividing the test into cells by trim
size and mailpiece design type. The various cells defined in that way
will be evaluated on several criteria including damage to mailpieces,
effect on the automation mail stream, and whether or not additional
costs are incurred to process the pieces. The design of the test allows
for the possibility that some cells could succeed even if all do not.
The date for concluding the test has been extended to June 10, 1997.

In response to questions, she clarified that mailers should receive
several months warning of any impending restriction in the sizes
accepted. Any change should not affect flats that are already eligible
for automation discounts, since these are not part of the test. Further
questions may be directed to Sherl Johnson at 202-268-5185.

**Equipment Availability - Paul Seehaver:**

Paul Seehaver of USPS reported on Mail Transport equipment inventory
status. The news was positive, inasmuch as there are no significant
shortages in any category as we head in to the fall mailing season.

**USPS Industry Test of MAIL.DAT - Rosemary Hamel, Dan Minnick, Phil
Thompson**

Dan Minnick introduced the other speakers, and explained that Mail.dat
is a ten file database specification which represents all necessary
summary information about a mailing. The specification has been
published by the Graphic Communications Association and incorporated
into the current product releases of major presort software vendors.
Copies of the specification are available from GCA at 703-548-2867.

Rosemary Hamel of USPS referred MTAC members to the Direct Link brochure
published recently. The Direct Link program will use Mail.dat to
simplify mail acceptance and to eliminate paper documentation, including
postage statements. Electronically communicated data will be kept
on-line for mailers to view and distributed to the field, allowing for
easier verification and better quality control for USPS. Electronic
payment options can be incorporated within the Direct Link framework.
Testing of Direct Link began this summer, with hardware and software
installed at Quad/Graphics for the test. She asked for additional
participants for future testing, which is focused on Standard Mail (A)
and Periodicals.

Phil Thompson explained that Mail.dat was first used in production to
get information from the list house to the mail production plant. The
USPS came in sooner than expected with a positive approach, so testing
on the extended uses began this summer in Sussex, WI. He said that it
was necessary to make change in the data base to precisely represent
what is actually going out the door. The infrastructure needed for the
test included a separate USPS network, server and Oracle data base. A
radio frequency (RF) connection to the work stations was also used in
verification. In testing to date, only Standard Mail was involved, and
more work will be needed to handle Periodicals.

In discussion, Rosemary clarified that the spread of Direct Link will
mean the eventual end of the current MEPPS program.

**Electronic Postmark - Chuck Chamberlain:**

Chuck Chamberlain of USPS reported on the Electronic Postmark program
which was the subject of a Federal Register notice dated August 14,
1996. The national information infrastructure, he said, is not entirely
electronic but also needs benefits associated with hard copy
communications as well as hybrid components. For example, in hard copy
mail, a postmark serves as a guarantee that what was sent is what was
received. The Internet also needs to be a trustworthy communication
medium, so the USPS is exploring the need for a service to guarantee
intact delivery of electronic mail. Among the features of the proposed
Electronic Postmarking Service are the visual display on the screen of
the authentication of the communication by the Postal Service, and a
warning if any tampering has been detected. The USPS is working with
AT&T, Citicorp, and other companies on this initiative.

In the discussion, Chuck Chamberlain commented that the USPS is also
taking a look at a hybrid service combining electronic mail and hard
copy delivery, with a two dimensional bar code used for authentication.
With respect to the electronic postmark, pricing has not yet been
determined but can be expected to compare favorably to a First-Class
stamp. Proof of delivery, while not included in the current test, could
be accomplished within the technical standards being utilized.