# Presentation: 042996

## Update on Proposed Prices and Standards

**	****Mailers’ Technical Advisory Committee**

***Steve Kearney***
*Vice President, Pricing & Classification*
***Joe Moeller***
*Manager, Pricing*
***Sharon Daniel***
*Manager, Mailing Standards*
***John Nagla***
*Manager, Implementation *
*November 2006*

**Notes:**
Slide 1 – Shaping a More Efficient Future
Today, I will discuss our mailing standards proposal for 2007 and how it shapes a more efficient future for customer's mail preparation. 

## Update on Proposed Prices and Standards 

**PRC Recommendation ****(March 2)**** **

**Litigation ****(May through March 2007)**

**2006 ** **       ****                                         ****	****    ****2007**
**May      Jun      July      Aug      Sep      Oct      Nov      Dec      Jan      Feb      Mar       Apr      May     Jun**

**Filing Date ****(May 3, 2006)**

- 10 Months

- 1 Year

**Proposed Standards**
**(September 27)**** **

**Proposed Standards**
**Comment Period Ends**** **
**(November 13)**** **

- Update on Proposed Prices and Standards** **
- Timeline and Important Dates

**Revised **
**Standards**
**(Early January)**** **

**Interim Final**
**Standards**
**(Early February)**** **

**Final**
**Standards**
**(Early March)**** **

**Implementation Decision ****(Early March)**

**Implementation ****(May 6)**

**We Are**
**Here**

**Notes:**
Slide 36
Timeline
We have  7 months until implementation. The Federal Register proposed standards was published on September 27. Mailers have until November 13 to provide comments.

## 57 Interveners

**2,962 interrogatories**
**54 pieces of testimony filed by interveners**
**Hearings through November 8**
**Rebuttal testimony due November 20**
**December:  More hearings, and briefs  ****	**

- Update on Proposed Prices and Standards
- The rate case

**Notes:**
Slide 28
Priority Mail Parcels
Dimensional weight pricing 
Applies to parcels addressed for delivery to zones 5-8, and exceeding 1 cubic foot capacity 
Pay the dimensional weight or "scale" weight, whichever is more
Balloon rate will not apply 

## Container Charge

**Container Charge**
**85****¢**** container charge applies to pallets, sacks, and trays**

| Container | Pays |
| --- | --- |
| Bundles on pallets | Per pallet |
| Trays on pallets | Per pallet |
| Sacks on pallets | Per sack |
| Sacks | Per sack |
| Trays | Per tray |
| Unsacked carrier route bundles entered at DDUs | Per each 5-digit/scheme serviced by DDU |

- Update on Proposed Prices and Standards
- Periodicals – Outside-County

**Notes:**
Slide 34
Outside-County Changes

The proposal includes a new 85¢ container rate to encourage efficiency for Outside-County Periodicals mail. The 85¢ container rate applies to all pallets, sacks, and trays that contain Outside-County pieces. For bundles of flats and irregular parcels on pallets, the container charge is based on the number of pallets prepared. For letters or flats in trays on pallets, the charge is based on the number of pallets prepared. If not on a pallet, or if in sacks on a pallet, the container charge is based on the number of sacks or trays prepared. For Periodicals carrier route bundles entered at destination delivery units (DDUs), the container charge is based on the number of 5-digit ZIP Codes or 5-digit schemes serviced by the DDU. 
 If preparing mail on pallets is not an option, we encourage mailers to use the fewest number of sacks to minimize the per container rate.  

## Automation

- Length

- 6” min.

- 15” max.

- Height

- 5” min.

- 12” max.

- Thickness
- Min: 0.009”
- Max: 3/4”

- Update on Proposed Prices and Standards
- Flats

**Automation**
**AFSM 100 standards with new flexibility criteria **
**Rigid pieces pay parcel or               Not Flat-Machinable prices **
**Required scheme preparation **

**Notes:**
Slide 15 -- 
Standard Mail automation flats
Just as with First-Class Mail flats, all flats must comply with AFSM 100-compatibility standards, with additional emphasis on flexibility. 
Rigid pieces pay parcel or NFM prices, as appropriate.
5-digit and 3-digit scheme bundle preparation now required 

## Standard Mail

- Update on Proposed Prices and Standards

- 9

- Not Flat-Machinable

**Notes:**
Slide 15 -- 
Standard Mail automation flats
Just as with First-Class Mail flats, all flats must comply with AFSM 100-compatibility standards, with additional emphasis on flexibility. 
Rigid pieces pay parcel or NFM prices, as appropriate.
5-digit and 3-digit scheme bundle preparation now required 

## Not Flat-Machinable

**Not Flat-Machinable**
**5-digit, 3-digit, ADC, mixed ADC prices**
**DDU-entry if sorted to 5-digit/scheme ****(no minimum)**** **
**Follow parcel preparation ****(no bundles)**
**Less than 6 oz., nonmachinable preparation**
**5-digit/scheme, 3-digit, ADC, mxd ADC**
**6 oz. and over, machinable preparation**
**5-digit/scheme, BMC, mxd BMC **
**Optional 5-digit bundles on pallets**
**5-piece minimum required to qualify for 5-digit price**

- Update on Proposed Prices and Standards
- Standard Mail

**Notes:**
Slide 21
Standard Mail "Not Flat-Machinable (NFMs)" Parcels, con't.
NFMs follow parcel preparation and have similar rate levels.  
Less than 6-ounces, use non-machinable parcel preparation 
6-ounces or more, use machinable parcel preparation 
DDU-entry and 5-digit rates available with no minimum sacking. 
Optional 5-digit rate available for bundles of 5 pieces placed on a pallet. 

## Mailpiece review prior to production

**One-on-one discussions**
**Ensures consistent acceptance**
**52 current participants**
**Over 600 Rulings last year**
**Contact: ****	**

- Update on Proposed Prices and Standards
- National Customer Rulings

**Greg Hall**
**Manager, National Customer Rulings****Pricing and Classification Service Center****90 Church Street, Suite 3100****New York, NY 10007-2951 **
**E-mail: ****gregory.a.hall@usps.gov**

**Notes:**
Slide 28
Priority Mail Parcels
Dimensional weight pricing 
Applies to parcels addressed for delivery to zones 5-8, and exceeding 1 cubic foot capacity 
Pay the dimensional weight or "scale" weight, whichever is more
Balloon rate will not apply 

## USPS.com/ratecase

**USPS.com/ratecase**
**DMM Advisory***** ***
***Subscribe:****** dmmadvisory@usps.com***

- Update on Proposed Prices and Standards
- Communicating

**Notes:**
Slide 3 – Overview  
Give customers more choices in terms of shape, sortation, packaging and containers that encourage the production of efficient mailpieces
Increase worksharing opportunities for mailers
Give mailers access to lower rates and reduce the number of bundles, sacks, or trays in a mailing, by requiring scheme sortation for letters, flats, and parcels, and allow mailers to qualify for lower prices by permitting multiple classes of mail to be combined
Minimize undeliverable as addressed mail by encouraging CASS certification of all discount letters and flats