# Presentation: 676325

**Change to CASS/MASS **ZIP + 4®
**Process**

**Jan Caldwell**
**Manager, Address Management**

**Mailers Technical Advisory Committee**
**May 2006**

**George Hurst**
**Manager, Direct Mail**

**Notes:**
Joint Presentation to MTAC (May, 2005) – Jan Caldwell and George Hurst

## The Goal
PMG has called for a 50% reduction in UAA mail by 2010
Effective August 1, 2007
All CASS/MASS certified ZIP+4 software will incorporate DPV Primary Number Confirmation as a Standard Process

- PMG has called for a 50% reduction in UAA mail by 2010
**Effective August 1, 2007**
- All CASS/MASS certified ZIP+4 software will incorporate DPV Primary Number Confirmation as a Standard Process

**Notes:**
As you know Mr. Potter has challenged the Industry and the Postal Service to reduce UAA mail by 50% by the year 2010.

To that end, one important step will be to ensure that the primary numbers on automation compatible mailpieces are accurate.

That’s what this most recent change in the CASS/MASS software requirements is all about.

## 	Current CASS/MASS ZIP+4 Process

Assigns +4 Codes using range-based matching

Does not discern if address is valid delivery point

- Assigns +4 Codes using range-based matching
- Does not discern if address is valid delivery point

**Notes:**
Today, CASS/MASS ZIP+4 software assigns +4 codes based on matching into a range on the USPS ZIP+4 file.

It does nothing to verify that the address is one recognized by USPS as a delivery point.

This leaves gaps in the accuracy of the address as we will point out today.

## 	ZIP+4 Process Example
Mailer Address:
		123 Mail Street Anytown, NY  12345

Matches to USPS record:
		121-129 Main Street, Anytown NY 12345-3356

- Mailer Address:
- 		**123 Mail Street Anytown, NY  12345**
- Matches to USPS record:
- 		**121-129 Main Street, Anytown NY 12345-3356**

**Notes:**
In this example,

The address on the mailers list that is submitted to CASS ZIP+4 software is (read from screen)

The Primary Number for this address is 123.

In this case it matches to a record on the USPS ZIP+4 that has a Primary Number range of 121-129.

Therefore it will be assigned the +4 code associated with this range of 3356.

That’s what happens today and that’s what will happen August 1, 2007 when the Primary Number change is implemented.

## 	DPV Process Example
Mailer Address after ZIP+4 match:
		123 Mail Street Anytown, NY  12345-3356
After the ZIP+4 match DPV will check if the Primary Number 123 exists within the range (121-129)
Yes - +4 code is retained and address returned
No - +4 code is removed and address returned

- Mailer Address after ZIP+4 match:
- 		**123 Mail Street Anytown, NY  12345-3356**
- After the ZIP+4 match DPV will check if the Primary Number **123** exists within the range **(121-129)**
**Yes** - +4 code is retained and address returned
**No** - +4 code is removed and address returned

**Notes:**
Now for the change part,

AFTER the address on the mailers list  has been coded by CASS ZIP+4 software with a +4 add-on of 3356,

DPV will then check the specific accuracy of the Primary Number and also the Secondary Number (if present) of the address.

What it actually does is verify that the primary number, in this case 123, exists within the Primary Number range used by the ZIP+4 software (121-129) to assign the +4 code of 3356.

If as a result of the DPV check it found 123 within the range, then the +4 code would be retained and returned as part of the ZIP+4 process. 

If, on the other hand, it did not find 123, then the+4 code would be removed before the address is returned from the ZIP+4 process.

Now, I need to point out that in no case, with this upcoming change, will the accuracy check of a Secondary Number result in the removal of a +4 code.

And also, as happens today, detailed DPV return and footnote codes will be returned from the process indicating the results of the DPV accuracy check for both the Primary and Secondary numbers.

## 	DPV Return Codes

| Return Code | Definition | Record Types |
| --- | --- | --- |
| N | No Delivery Point Validated  | All |
| Y | Delivery Point Validated /Primary Valid and Secondary Number (When Present) Valid  | All |
| S | Valid Primary Number; But Secondary (Primary for Rural Route) Present and is Not Confirmed  | All |
| D | Valid Primary; Input Missing Secondary (Primary for Rural Route) | All, but Street |

**Notes:**
Let’s talk about the DPV return codes for just a moment.

The Code that comes into play with the change to the CASS/MASS process is “N”.

All of the others, “Y, S, and D” indicate that the Primary Number has been confirmed.

Note: If questioned about the parentheticals on S and D - For Rural Route and Highway Contract Type addresses the “BOX” number is considered the Primary Number but it appears in a Secondary Number position.

## ZIP+4 Vendor Requirements
Today: DPV is an optional processing feature 

Tomorrow: DPV Primary Number confirmation will be required

**Today:** DPV is an optional processing feature
**Tomorrow:** DPV Primary Number confirmation will be required

**Notes:**
This is very simple and straightforward,

Since today all CASS ZIP+4 software MUST have the optional capability to perform DPV processing,

the main difference for them is that DPV Primary Number confirmation will become a standard processing feature that cannot be de-selected, if a USPS form 3553 is going to be generated.

## 	Mailer Requirements
No change
Automation Rate Qualification requires the use of CASS-certified ZIP+4 software

- No change
- Automation Rate Qualification requires the use of CASS-certified ZIP+4 software

**Notes:**
From the mailer/end user perspective there really is no change.

The requirements for the use of CASS-certified Software for rate qualification are the same as they have been.

## 	DPV Performance
Some DPV users report increases up to 20% in processing throughput (Mainframe)
DPV Flat File developed for Mainframe users
Expect vendors to improve performance

- Some DPV users report increases up to 20% in processing throughput (Mainframe)
- DPV Flat File developed for Mainframe users
- Expect vendors to improve performance

**Notes:**
Regarding performance:
Some early users of DPV have reported throughput time increases up to 20% versus just ZIP+4 coding. 

DPV performance is, as many other computer functions, dependant upon the hardware environment that it is run on. DPV does require systems that possess enough dedicated memory (about 2 GB) to achieve optimum performance.

Several users have implemented DPV on these type systems and have had no increase in throughput time. 

It seems that the most problematic implementations have been on legacy mainframe systems. To address these problems we developed a second generation DPV called “Flat File” which dramatically reduces the number of probes needed to execute DPV on systems with memory limitations.

Further, as with NCOALink, we expect that software vendors will continue to refine their DPV implementations to improve performance to achieve a competitive edge.

## 	USPS Database Accuracy
FY2005 Street Reviews found that the AMS database is 99.91% accurate regarding Primary Numbers
21 Days – Average time for adding new addresses

- FY2005 Street Reviews found that the AMS database is 99.91% accurate regarding Primary Numbers
- 21 Days – Average time for adding new addresses

**Notes:**
Prior to recommending this change we examined the accuracy of the AMS database to see if there were any issues that needed to be addressed. (Pun intended)

Here is what we found. We think these numbers support the initiative very well.

## 	The Five Percent Rumor
It is untrue that, on average, this change will cause ZIP+4 coding rates to drop 5%
Speculation on this is due to:
DPV footnotes not correctly categorized
Change applied to both Primary and Secondary Numbers

- It is untrue that, on average, this change will cause ZIP+4 coding rates to drop 5%
- Speculation on this is due to:
- DPV footnotes not correctly categorized
- Change applied to both Primary and Secondary Numbers

**Notes:**
There has been a lot of conversation regarding the potential drop in +4 coding rates with this change.

I’m here to set the record straight. On average, it will not be 5% and we have the research to support this statement which I will show on the next slide.

This speculation has been fueled by two things: 

Certain DPV footnote codes have been miss-categorized in the past. Specifically, a footnote that indicated that the primary number was missing on a NON-ZIP+4 CODED ADDRESS was being considered a non-DPV confirmed address when in fact, as I have shown these addresses are not even candidates for DPV processing.

  So, you can’t code these today and you won’t code these tomorrow. No Impact.

2. As I have stated, this change ONLY affects Inaccurate Primary Numbers NOT Secondary Numbers.

Now let’s look at the research I mentioned (next slide).

## 	The Real Story
98.1% - Primary Number Confirmation with NCOALink DPV processing (337 billion addresses) 
99.2% - Primary Number Confirmation in recent studies with two major mailers

**98.1%** - Primary Number Confirmation with NCOALink DPV processing (337 billion addresses)
**99.2%** - Primary Number Confirmation in recent studies with two major mailers

**Notes:**
Here’s the real story on this:

In FY 05 our NCOALink Full Service providers, who are required to run DPV as part of their service to their customers, reported statistics that showed a 98.1% confirmation rate against 337 BILLION addresses processed. That’s a 1.9% error rate. Not too BAD.

But it gets even better, recently, there were two separate studies completed by two very large mailers of their own address files to gauge the impact and the results were even more impressive. On average a Less than 1% error rate!!!

This tells us that, as with all things regarding quality, that those mailers who are truly making an effort to keep their address files in good shape are not going to have a problem with this change.

And, it looks like on average, the worst case will probably be around 2%. Some will have more some will have less.

## 	DPV Benefits
Increases mail volume that can be Delivery Point Sequenced
Improves Delivery Operations and Reduces Cost
Contributes to UAA mail reduction
Makes mail a more Efficient Communication Channel

- Increases mail volume that can be Delivery Point Sequenced
- Improves Delivery Operations and Reduces Cost
- Contributes to UAA mail reduction
- Makes mail a more Efficient Communication Channel

**Notes:**
Let’s recap the benefits that this change provides;

First, it will increase the volume of mail that USPS can accurately DPS. This helps us leverage our automation assets.

Second, More DPS mail improves our delivery operations and reduces our delivery costs. Everyone here understands the importance of this.

We must seriously begin to depend on Accurate Addressing not Carrier Force Knowledge as the means to get mail delivered. The cost for the latter is just too high.

Third, Addresses with Accurate Primary Numbers will help reduce UAA mail volumes. In our recent study, Primary Number problems were shown to be one of the largest contributors to UAA mail due to physical addressing deficiencies.

And Finally, Accurate Primary Numbers will go a long way to help make mail a more efficient, thus a more desirable, communication channel, to you, our customers, who we realize have choices in this regard.  

## 	Between Now and August 1, 2007
Fix bad Primary Numbers with DPV-AECII

USPS Developing Communications Plan
National PCC Day, Memo To Mailer, Etc.

- Fix bad Primary Numbers with DPV-AECII
- USPS Developing Communications Plan
- National PCC Day, Memo To Mailer, Etc.

**Notes:**
So what should we do between now and August 1, 2007?

The opportunity exists for mailers to use this time to identify bad Primary numbers with DPV and repair them using AECII during this time while they are still getting discounts for these addresses.

Help us get the word out to the industry on this. We are developing a communications plan on this but we could use your help to make sure that all mailers are aware of the change and what they can do to prepare.

***Thank You!***

**Notes:**
Thank you!