Mailers' Technical Advisory Committee
			 General Session
			  June 13, 1996

			     Minutes

The meeting was called to order on Thursday, June 13, 1996, by 
John Wargo, Mailers' Technical Advisory Committee (MTAC) Postal 
Chair.  He welcomed members and guests and introduced Chief 
Operating Officer and Executive Vice President Bill Henderson to 
present information he had discussed at the National Postal Forum.

Mr. Henderson discussed the issue of postal costs.  He indicated 
since 1971 an increased postal volume of 106 percent, increased 
work hours of 21 percent, increased cost per hour of 322 percent, 
and increased salary and benefits of 412 percent.  Costs over last 
year will increase approximately 6.7 percent, only 1 percent due 
to volume and work hour increases, indicating a need to find an 
alternative to arbitration to resolve labor disputes and noting 
that cost per hour in the Postal Service drives postage rates.  He 
also discussed the impact of automation on increasing productivity.

Mr. Henderson then addressed targeted areas in the future:  
(1) the indirect labor issue and the impact of automation; 
(2) multi-factor productivity; and 
(3) the challenge of controlling cost per hour.  
Regarding controlling cost per hour, he touched on several 
strategies:  (1) through some agreement; (2) outsourcing some 
parts of the Postal Service; (3) more effective ways of adjusting 
to high and low volume periods of the year; (4) reduction in labor 
intensity and reduction in dependency on people; (5) issues such 
as tray management systems; (6) alternate delivery systems; and 
(7) improved transportation efficiency.

Mr. Wargo then introduced Yvonne Reigle, MTAC Industry Chair, and 
Chris Rebello, MTAC Industry Vice Chair, to make some comments.  
Ms. Reigle mentioned the issue of classification reform and the 
task force meeting to look at some of the issues surrounding 
classification reform, and acknowledged the election of the 1997-
1998 industry vice chair, Joe Schick.  She indicated that the 
committee would receive a mailing with key dates for subcommittee 
chair elections and subcommittee designations.

Mr. Rebello mentioned the attempt to bring together a group to 
discuss the omitted three-digit level.  The committee is trying to 
get Bob Krause from the Postal Service side to address the issues 
of move update and the database and NCOA and some of the problems 
associated.  Charles Pace will be working with the committee to 
address fixing the problems of the periodicals side and also to 
set the timetable for bar coding.  Regarding confusion over the 
fletters issue, Mr. Lubenow briefly discussed the 6 month test of 
the modified pointer designation. Mr. Rebello indicated that the 
Postal Service intends to fully educate mailers of the new rules 
and regulations in order to get the mail processed.

Next, Mr. Wargo introduced James Grubiak, Vice President for 
International Business, to present an update on international 
mail.

Mr. Grubiak discussed the strong paradigm shift in the U.S. Postal 
Service toward a global structure, with the key components of 
sales, marketing, and operations.  Since coming on board in 
January 1995, he has been committed to enhancing the credibility 
of the U.S. Postal Service in the international arena, and he 
intends to double the business to $3 billion by the year 2000, 
utilizing $900 million worth of new business:  (1) Global Priority 
Mail; (2) International Package Consignment Service, and (3) 
looking at the full spectrum of customers' needs.  He expects an 
increase in delivery to the core U.S. export eight to ten 
countries which provide 50 percent of revenue of ten times the 
present business, focusing on direct marketing and the catalog 
business, financial and other services, and the publishing 
business, and partnering directly with the other posts.  He 
indicated teams have been working with Canada and Mexico, with 
Brazil, Argentina, and Chile, in the UK and Germany, and with 
China and Japan.

The implementation plan combines a set of tactics which focuses on 
customer requirements and target countries.  Mr. Grubiak added 
that initiatives are well under way; they are attempting to change 
international airline regulations to allow them to use the 
airlines with the best direct delivery and lowest costs.  In 
addition, the international mail can be flexible in obtaining cost 
changes in order to customize solutions.

Following his presentation, Mr. Grubiak welcomed questions from 
the audience:
	(1) Regarding partnership with competing post offices, he 
explained that they have been negotiating fiercely with competitors 
and expects that competitors will find it beneficial to work in 
partnership rather than competing against the Postal Service 
international mail service.  He expects to have an answer by the 
end of July from the UK Royal Mail.
	(2) Regarding remailers and consolidators, such as TNT, 
Mr. Grubiak expressed his belief that consolidators can offer 
dded advantages, and his teams are studying that issue.
	(3) Regarding Canada and providing seamless distribution 
and NAFTA, Mr. Grubiak commented that leveraging, U.S. strength, 
and taking the U.S. leadership forward can make changes.  
	(4) He reiterated his objective to cut costs in order to 
grow business.  
	(5) Regarding consignment services, the intention is to 
work with focus countries to grow the direct marketing businesses 
and to be in the eight countries by August or September of this 
year.  
	(6) With regard to his employees doing deliveries in 
foreign countries, Mr. Grubiak reiterated his objective to working 
with postal partners to develop delivery systems, to improve 
partners' core competencies, in order to seamlessly cross borders, 
utilizing one another's core competencies to grow business.  
	(7)  He described the effort to develop strategies to 
compete with remailers.  
	(8)  Mr. Grubiak clarified that while early strategy is to 
focus on the eight to ten focus countries, there is every interest 
in other countries and in continuing to expand globally.  
	(9)  Herb Cantor is a local contact in the service to 
discuss market research in other countries.  
	(10)  With regard to one-stop shopping, Mr. Grubiak 
mentioned an example of one business whose international business 
grew from 3 percent to over 20 percent as a result of improvements, 
and added that other companies are duplicating that effort.  
	(11)  Regarding airline restrictions and providing airline 
service in the short-term, he discussed solutions such as 
dedicated planes and gateways.  
	(12)  He described advertising and promotion efforts 
through the direct market industry, efforts to better articulate 
available services to new customers, and better education of 
the benefits of Global Priority Mail.

Before adjourning the meeting at 10:26 a.m., Ms. Reigle reminded 
members of the next meeting on September 11 and 12.


		   MTAC Meeting (June 11-13'96)

			  Standard Mail
		       Subcommittee Report


Focus Groups-Introduction of New Reachout Effort

Dan Minnick introduced Don Landis as the first speaker in a new 
series of Industry Focus Group speakers.  Don Landis is the 
industry co-chair for the Midwest and Great Lakes Areas.  He 
explained the history of their Focus group and its meeting 
structure.  Meetings are held in different cities and attended by 
150, or more people.  Usually the focus of the meetings is on 
educating the group on current issues.  Industry and postal 
speakers are invited. Each meeting has a question/answer period.  
Questions are submitted before each meeting, or during the 
sessions.  Evaluation forms are passed out and used to set-up a 
tentative agenda for the next meeting.  The Focus group serves a 
valuable purpose since it fills a niche between Postal Customer 
Councils and the National Postal Forum.  Dan closed by mentioning 
that other industry co-chairs will be invited to future MTAC 
meetings.


ADVANCE-Report on Progress and New Services

Glen Cournoyer announced a recent improvement in the ADVANCE 
system which integrates that system with the dropship appointment 
system.  On June 22'96, the dropship appointment screen will 
include a field for the ADVANCE mailing ID.  This enhancement will 
allow AREA monitors to know the mail arrival date.  This 
information will assist them in investigating mail non-arrival 
reports.  The software to transmit dropship appointment data to 
the Area offices will arrive in August.  Initially, the system 
will capture event code destination entry facilities, appointment 
arrival dates, and the post office trailer unloading date.  
Aggregate delivery data from the delivery units and internal seeds 
captured by the Areas can be made available to MTAC.


Standard Mail Return    Rates-Update

Bill Hoyt provided an update on the issue of an unintentional 
anomaly in the R95 rate case for 3C single piece rate pieces which 
resulted in a 65% increase, instead of an intended 14% across the 
board 3C increase.  This anomaly caused a massive hit on the 
continuity mailing industry.  Put in perspective, a returned 16 oz 
Special 4th piece costs $1.24, a 24 oz bound printed matter piece 
(zone 5) costs $1.66 while a 16 oz 3C piece costs $2.95. Meanwhile, 
many mailers have changed their return endorsement, so pieces are 
not returned.  This change has cost the Postal Service approxi-
mately $80 million dollars in lost revenue.  Until recently, a 
separate filing with the Postal Rate Commission to correct this 
anomaly was not embraced by the Postal Service.  This position 
changed on June 12 in a meeting with Mike Coughlin, where a 
promise was given to consider an Experimental Expedited Emergency 
Relief filing with the Postal Rate Commission.  


Non-Profit Classification Reform Status

The Postal Rate Commission recently announced it has accelerated 
its schedule for concluding its deliberations from the end of the 
year to July 1.  The Board of Governors should have the recom-
mended decision by August and hopefully if all goes well, we 
should see an October implementation.  A discussion then ensued on 
implementing two sets of rates (for profit and non-profit) and two 
sets of preparation standards with a final comment by Ashley Lyons 
that there is a lot of coordination involved in implementing a set 
of rates correctly and with that in mind an October date would 
work the best. The final rule on the non-profit filing will be 
published in the Federal Register.


"Return to Current Resident" Service

Rocky Matthews explained a revenue opportunity exists to reduce 
the soaring cost of processing Undeliverable-as-Addressed First 
and Standard Class mail by expanding the address change service 
(ACS) options.  An attempt is underway to build an ACS optional 
instruction matrix (similar to the way Periodicals have ACS 
notification options) that would use an ACS code to trigger a 
service option for Standard Mail to forward the mailpiece, or 
redirect it back to the current address, in lieu of treating it as 
waste, or returning it.  Redirecting the piece may require an 
additional fee, as yet to be determined.  Software redesign 
initiatives will delay implementation until around July'97.  


Classification Reform Implementation (Open Discussion to Clarify 
 Technical Issues)

Dan Minnick reviewed a number of classification reform technical 
issues for possible group discussion.  Of the issues tabled, the 
elimination of the 3-digit tray, or sack, for enhanced carrier-
route mailings generated considerable discussion.  It was 
generally agreed that this rule change  significantly multiplied 
the number of containers needed to prepare these mailings.  One 
example cited was a current mailing of 6,700 sacks, or 21,000 
trays.  Under the new rules this mailing would require 32,000 
trays,  many of which would be mostly empty since a tray could 
have as few as ten pieces. Trailer usage went from six, or seven, 
to twelve.  Destination entry incentives would not exist due to 
trailers cubing out, therefore causing more mail to end up on 
local post office docks.  This would tax postal service 
transportation and processing functions and possibly impact 
service.   This rule change was generally regarded as needing 
attention and Dan volunteered to elevate MTAC's message to postal 
executive management.


			       MTAC
		   First-Class Mail Subcommittee  
			  Meeting Minutes
			   June 12, 1996


1.  EXFC Quarterly Update - First-Class Mail on-time performance 
for Quarter II showed improvement in the overnight and two-day 
categories compared to Quarter II of last year.  On-time perfor-
mance was 87% for overnight committed, 76% for two-day committed, 
and 71% for three-day mail.  Quarter II's overnight performance 
represented the best winter performance ever achieved.  Graphs 
showing Quarter II National performance and the three year trend 
lines are attached to the minutes.

2.  First-Class Mail Market Research Report - The strategic market 
research program focused on information about bills, statements 
and payments.  The research model looked at the business environ-
ment, USPS business segments, customer segments, USPS business 
processes and indicators and the USPS business outcomes.  

This resulted in the development of the Business Process Model 
which examined the areas affecting the sender, receiver and the 
USPS core processes.  Information for these models resulted from 
research provided to the USPS by a number of research sources that 
included PSI, Institute for the Future, Coopers and Lybrand/
Response Analysis, Mentis and Synergistics.  The analytical 
projects were designed to understand the customer business; extend 
focus beyond mail and identify relevant decision-makers and 
influencers throughout the business process.

The objectives were to support senior management strategic 
planning, provide data for product development and help to 
identify priority initiatives.  The goals were to focus the Postal 
Service on doing the right thing for customers which will result 
in positive impacts on the market for the Postal Service.

Some of the key findings indicated that we will see significant 
changes taking place by 2005.  These include a decrease in the 
percentage of checks in the mail stream from the current level of 
25% to 18% and the growth of electronic payments from 2% today to 
18% by 2005.

It also found that economic activity will continue to drive mail 
volume and that with the increase in electronic transactions, the 
net growth rates for mail will be about 1% for the next five years.

The conclusion is that it will not be business as usual.  Since 
the market is not a protected commodity, the Postal Service will 
have to go after targeted markets and must improve its core 
business.  Along with enhancing the value of the current system, 
the USPS will need to develop new products and services and 
consider partnering for competencies.  This includes the 
establishment of performance measures and monitoring programs by 
segment.

Follow-up research will focus on bank lockbox and third party 
processors; corporate cash management; and consumers.  The 
objectives will be to determine what is important to these 
segments; what will make the most difference to the USPS 
competitive position and what initiatives, investments and 
competencies will be necessary to succeed.

A copy of the slides are attached to the minutes.

3.  Priority Mail Advertising - The presentation focused on 
advertising and promotion designed to grow the package mail 
business with emphasis on Priority Mail usage by small and 
medium size business.  An initial Direct Mail program was 
developed and sent to customers with a focus on the use of 
Priority Mail as a means of growing business.

This was then followed with a review of six Priority Mail 
advertisements which promoted the product based on USPS core 
competencies.  The first five ads are currently running and are 
designed to build product awareness.  The sixth ad is still under 
development and is targeted against the travel industry.

Finally, the USPS is providing mailers with interactive disks 
which respond to a direct mail campaign.  A call to 1-800-USPS 2003 
will allow any mailer to obtain the disk free of charge.  The disk 
is Microsoft Windows and DOS compatible and gives mailers the 
opportunity to actually compare prices by zone with our 
competitors.

The initial results of volume growth indicate that the advertising 
is quite successful.  Prior to A/P 9, the growth rate was holding 
at 2% over same period last year.  The A/P 9 results indicate a 
growth rate of 12.3% over same period last year.

A question of service performance was then discussed.  It was 
noted that the latest National ODIS report indicated 82% of 
Priority Mail is delivered within two days; 95% within three days: 
and virtually everything within four to five days.  Work is being 
directed against improving this as much as possible.  Returning to 
the two day standard Nationwide is still a high priority for the 
Postal Service.

Addressing also was identified as a potential problem.  It was 
noted that addresses to which UPS will deliver are not necessarily 
delivered to by the Postal Service if it turns out that the 
standard delivery address is a box number.  This will be looked 
into by the USPS.

4.  Remittance Update - The report focused on the white mail 
concept test designed jointly by the Postal Service, NationsBank 
and Wachovia.  The test was run with test mail originating in 
Philadelphia and destining in Atlanta.  It was designed to capture 
selected Zips at the origin; flow into the FIM sort plan: and be 
processed as FIM mail.  

The two week test was conducted in January and was not designed to 
be statistically projectable.  All mail handled in week one was in 
the traditional manner and was used as the control period.  In 
week two, NationsBank mail was handled in the traditional manner 
while Wachovia's was captured and included as FIM mail.  

Due to the small sample size, there was no clear signal as to 
whether there was a notable improvement in service.  Tests will 
continue to see if there is a way to accelerate service 
performance for remittance white mail.

The remaining issue in Remittance Mail continues to be performance 
measurement.  Until this is resolved, it will be difficult to 
determine whether there is any noticeable service improvement.  It 
was recognized that Operations, under the leadership of Gary 
Litwinowicz, has done excellent work to improve service perfor-
mance and that there is a noticeable improvement in communications 
between the Postal Service and its customers.

5.  Update Options - Reclassification Issue - The briefing focused 
on the test conducted and reported on by the Postal Service at the 
March meeting.  At that time, five companies had provided the 
Postal Service with test Address files.  After running the test, 
it was noted that on average, three to four percent had move 
orders on file but not in the customer file.  The Postal Service 
had requested additional files from MTAC members to continue the 
test, but as of this date, none have been provided.  Therefore, 
there has been no change in the data provided at the March meeting.  
The major issue that surfaced was tht of "freezing" data bases 
after NCOA processing.  The USPS and mailers will pursue 
clarification of this issue.

6.  Update on Global/Domestic ePOST - This item will be placed on 
the agenda for the September meeting.  

In addition to ePOST, Priority Mail Redesign was requested as a 
topic for the September meeting.



Joan Rau
Acting Chair


		    Addressing and ZIP+4 Subcommittee

			      Rate Markings

Kathy Siviter began the meeting with a review of the change in the 
requirements for automation markings.  With the implementation of 
Classification Reform, mailers who apply barcodes in the address 
block will not be required to add the "AUTO" rate marking to their 
letter sized mailings.  Mailers who apply barcode in the lower 
right corner will be required to add the rate marking to their 
pieces.  
Members did raise questions on whether the "SNGLP" needed to be 
added to pieces with presort indicia which are mailed at single 
piece rates.  These may be pieces which may "fall out" of a 
presort mailing for a variety of reasons.  Other questions were 
raised about the placement of LOT sequence numbers on the mail-
piece, if a mailer chooses to add them.  The Postal Service has 
not required LOT sequence numbers to appear on mailpieces and has 
no preference about where the information may appear, other than 
where specific requirements already exist.

Ancillary Service Endorsements

Rocky Matthews followed with an update to the plan to revise the 
ancillary service endorsements.  A draft of the Federal Register 
notice has been circulated internally. The Postal Service plans to 
publish the Federal Register notice this summer.  Implementation 
will follow the comment period with plans to honor both kinds of 
endorsement language for a period of time, no less than 12 months.  
In addition, software in the Computerized Forwarding System 
offices has already been modified to accommodate the new instruc-
tions and provide the proper service requested.  Rocky added that 
allowing endorsements to appear in the address block would be 
included in the same Federal Register notice.

ZIP+4 Coding at Colleges & Universities

A discussion of some of the challenges faced by colleges and 
universities who operate in a decentralized mail production mode.  
Tom Roylance described his situation and referred to the SUNY 
study of college/university mailing operations. He explained 
difficulties when using endorsements to identify the source of the 
address so that corrections could be properly directed.  One 
member suggested using ad plates on meters to help identify the 
source department.  Peter Moore referred to discussions in the 
Technology group concerning placing encrypted data on the front of 
the mailpiece as a possible solution as well.

Addressing Work Group

Bob O'Brien reported on the meeting of the Addressing Work Group.  
Members reiterated the delivery service problems in areas of 
Emergency 911 address conversions which had been identified at the 
last meeting.  Paul Bakshi indicated that the appropriate 
districts had been contacted concerning the policy on delivery.  
Members suggested that a Postal Bulletin article be published to 
restate the policy.  In addition, they also suggested removing 
rural route box number records from the ZIP+4 product in those 
areas where conversions have occurred.  The Postal Service agreed 
to produce a list of the ZIP Codes where conversion data is 
irretrievable.  This information will be included in the AIS 
product Delivery Type File and will be posted on RIBBS.  Members 
suggested integrating LOT product information into the ZIP+4 
product to ensure data consistency.  This and other possible 
changes to the ZIP+4 product will be discussed over the next 
meetings due to the global impact of any changes to the ZIP+4 
product file structure.  Mailers will be able to produce BRM with 
address block barcodes and permit information beginning in January 
of 1997.  This will allow the creation of generic BRM envelopes 
with indicia and other required elements which can be customized 
as needed through elements on an insert. Bob also reported that 
the Automated Barcode Evaluator (ABE) is now being deployed and 
will be located in 255 BME offices and DMUs which enter the 
highest volume of barcoded letter mailings.  Beginning in 
September 1996, ABE results will be used to accept or reject 
barcode rate mailings.

Classification Reform Address Requirement Update

Joe Lubenow reported on the work being done by the Implementation 
readiness Team.  He indicated that carrier route mailers will have 
until October 1 to activate the Awithin 90 days of the date of 
mailing@ required carrier route code updates. Between July 1 and 
October 1, mailers who present carrier route mailings must have 
updated their carrier route codes with 90 days of the date of 
mailing or have updated their carrier route codes using the April 
quarterly product release.  Mailers who have identified problems 
receiving Line of Travel information from their software vendors 
should file exception requests with their RCSC to cover the period 
of time before LOT processing can be added to their systems.  Any 
pieces which can be ZIP+4 coded but LOT cannot be obtained should 
be placed at the beginning of each carrier route package.

Suggestion - Identifying Delivery locations where Secondary 
Address Information is Nonessential Would Increase Volume

In cases where secondary address information is missing, mailers 
often eliminate such pieces from the mailing. Yet, these pieces 
are often deliverable. Members raised questions about the 
locations where secondary information may not be essential to 
effect proper delivery.  This could include small apartment 
buildings or buildings where the Postal Service hands over the 
mail to building management for delivery to the individual 
residents.  The Postal Service indicated that small apartment 
buildings are already identified in the ZIP+4 database where a 
single "H" record type exists for the address.  If more than one 
"H" record exists for the address, secondary information is 
necessary to individually isolate each delivery point.  Another 
member added that one software package has the capability now to 
identify those locations.  Information on addresses which are 
delivered by building management can be obtained by matching to 
either the Delivery Sequence File or the Computerized Delivery 
Sequence product.  Both of these systems identify "drops" and the 
number of customers served by them.  

Suggestion - It Could Increase Volume to Provide a Correlation 
between Street Address and Delivery Address in Nondelivery Offices

An issue was raised concerning mailing addresses in ZIP Codes 
where no delivery service exists.  Peter suggested that the street 
information be added to the ZIP+4 file and delivery point code 
information be used as the PO Box number.   Other suggestions 
included developing a computer based directory service similar to 
LACS, and using street address as box number.


		MAILERS' TECHNICAL ADVISORY COMMITTEE
	ENGINEERING AND TECHNOLOGY/TRANSPORTATION SUBCOMMITTEE

Industry Chair-Joe Lubenow
Postal Chair-Becky Brentlinger

PIEX - Rick Graff:

Centralized debiting is an postage payment option the USPS intends 
to offer to current CTAS customers.  Rosemary Hamel reported that 
pilot testing with Deluxe Check and the American Management 
Association is going very well and that this new option will be 
available for nationwide use by mid-July.  Advantages include no 
need for advance positioning of funds with the USPS, detailed 
electronic reporting similar to CTAS, and best use of funds.   For 
more information, contact Gwen Gesswein at 202-268-2359. 

A new project to be pilot tested from July through October is a 
Postal Payment Card, a private label credit card for use only by 
business mailers and only for postal services.  The business 
partner of the USPS for this is NationsBank.  While the terms are 
not finalized, it is expected that three days after a mailing, on 
average, the debit would appear against the mailer's account at 
the bank.  For more information on this attractive payment option, 
call Dick Curran at 202-268-2884.

The Graphic Communications Association's Mail.dat specification 
has been published, and three major postal software vendors have 
incorporated the capability in their current product releases.  
Copies of the specification are available from GCA at 
703-548-2867.  Mail.dat is an extension of previous GCA standard 
files that have been used by industry to support mail production 
and distribution planning.  Rosemary Hamel of USPS reported that 
the Direct Link pilot program, intended to show how Mail.dat can 
also support mailing documentation and postage payment, is on 
schedule for testing beginning in late July.

Steven Mapp from the Direct Link team demonstrated a PC based 
information viewer for Mail.dat, showing different views of the 
data as it would be used by the mail owner, mail preparer, 
BMEU/DMU, and entry post office.  Discussion followed on the value 
of such software to user communities and possible product 
opportunities for the USPS and private industry.

Containers and Transportation - Rick Kropski

Rick Kropski reported on industry needs for an electronic version 
of the Form 8125 used in drop shipping.  Cheryl Beller and Kyle 
Pasternak said that the USPS is working toward this goal. 
Additional work group discussion covered pallet regulations, 
including the maximum pallet stack of three pallets, and the need 
to band pallet stacks.  Pallet load integrity for pallets of trays 
is a major concern, and ideas on stabilizing pallets of trays were 
presented, with field studies to follow.  Until these issues are 
resolved, some lettershops may bedload mail in trays rather than 
use pallets.  A related concern is that presort regulations do not 
allow three digit carrier route trays or sacks, which can cause 
many five digit carrier route containers with as few as ten pieces 
of mail.

On a separate issue, Rick reported that digest-size catalogs of 5 
3/8" by 8 3/8" and similar dimensions will be allowed to be 
processed as automated flats, if all other requirements are met.  
These catalogs had been excluded from the "fletter" category of 
mailpieces which can be either letters or automated flats, but 
after a meeting with John Ward, will now be included in this 
category on a six month test basis.  For the industry, this 
provides a way to avoid preparing these pieces as automated 
letters, requiring tabbing and traying, and instead to continue 
preparing them as packages on pallets, subject to the 10% limit on
residual mail.  Industry representatives contended these pieces 
were sometimes processed on flat sorters already, based on 
analysis of delivery patterns.  The test allows a 5 3/8" length as 
oriented on the flat sorter as long as the piece is at least 
7 1/2" in height, it was later clarified.  Previously the length 
had to be at least 6" at this height range.  After the six month 
test period is concluded, the Postal Service will determine 
whether the extension to the size range of automated flats can be 
continued.  According to Rick Kropski, an estimated 1.7 billion 
pieces are potentially affected.  The test pieces still must meet 
requirements for barcode placement and readability and flat mail 
machinability.

The question was raised why this new option was being offered now 
rather than earlier, since some printers had discouraged their 
customers from continuing to produce the affected sizes.  Part of 
the answer is the modification to the Model 881 flat sorters to 
accommodate digest size pieces, which is being installed in second 
half of 1996.  In response to further inquiries, this test does 
not require prior application by mailers or filling out paperwork.  
Further questions may be directed to Sherl Johnson at 202-268-5185.

Postage Meter Issues - The Postal Service was not able to comment 
at this time.  Peter Moore requested an ad hoc work group on 
digital encryption issues related to USPS proposed two-dimensional 
barcoded postage indicia.  Several MTAC members agreed to 
participate.  Envelope manufacturers expressed concern about this 
issue.

Operational Impacts of Classification Reform-Bob Sheehan, Rose 
Barcellona, Gary Litwinowicz - This presentation covered a number 
of areas as follows:

Network Realignment:  Bob Sheehan said that the major changes 
include the elimination of SDC and state/mixed states sortation, 
the advent of three-digit scheme sortation for automated letters, 
the assignment of concentration centers for standard mail residue, 
the updating of transfer hubs for Periodicals, new labeling lists, 
and the availability of the PASSPORT software for electronic 
ordering or self-printing of barcoded tray labels.

Transportation: The main changes here include the revision of 
schedules to match new arrival times, and the replacement of the 
path from SDC to P&DC locations by a path from ADC to P&DC sites.  
This will result in deeper drop shipment penetration.

Mail Transport Equipment:  Comparing MTE availability from July 
1995 to July 1996, and including equipment both in the field and 
in storage, Paul Seehaver cited the following statistics:

	MM trays up from 45 to 59 million
	EMM trays up from 9.5 to 15.3 million
	Flat trays up from 3.9 to 8.3 million
	Half size trays up from 15.4 to 19.8 million
	Pallets holding steady at 2.6 million

Paul said that the Postal Service can get more equipment if needed 
on six weeks notice.
Mailers expressed concerns about having to assemble the cardboard 
trays.  Paul said some mailers prefer assembled trays, but on the 
other hand these take more space, so others prefer new unassembled 
trays.  A mixture of both types is available, but the Postal 
Service cannot guarantee that mailers can always get only the type 
that they prefer.

Processing and Distribution Center Operations:  Rose Barcellona 
discussed the impact of receiving more trays, rather than packages 
and sacks.  The USPS intends to eliminate the mechanized LSM 
equipment by 1998, since it requires 18-20 people to operate, 
while automated machinery uses only 2-3 people.  Classification 
reform, according to Rose will generate 19.1 billion additional 
delivery point barcoded mail pieces.  The corollary to this is 
fewer pieces needing to go through the OCR equipment. Rose 
discussed the advantages of three digit scheme sort, and reported 
that the Postal Service is also working on a five digit scheme 
sort.  While both of these help mailers attain 150 piece minimums 
for rate eligibility for automated letters, the five digit scheme 
sort is more difficult to implement.  This is because different 
five digit ZIP codes are processed at different facilities.  If 
mailers use an outdated scheme, service could be impacted, much 
more so than would be the case with an obsolete three digit scheme.  
Furthermore, deployment of equipment such as new carrier sequence 
bar code sorters will create frequent changes in the five digit 
schemes.

Rose presented an Equipment Deployment table showing amounts of 
automation equipment currently and what is expected in the next 
eighteen months:

				   CURRENT      FUTURE       TOTAL
	MLOCR (multi-line OCR)       837          38          875
	RBCS (remote bar coding)      47          98          145
	MPBCS (bar code sorters)    1369           0         1369
	AFCS (facer/cancellers)      913          42          955
	FSM-881 (flat sorters)       812           0          812
	FSM-1000 (new flat sorters)    0         102          102
	SPBS (small parcel/bundle 
	  sorters)                   187          45          232
	DBCS(delivery bar code 
	  sorters)                  2372         978         3350
	CSBCS (small bar code 
	  sorters)                  1859        1285         3144

	Totals                      8396        2588        10984

Bulk Mail Center Operations:  Bob Sheehan discussed the effects of 
receiving more pallets and many more trays of mail.  Studies of 
BMC capacity have been completed, and expansions have been planned 
for Philadelphia and Jacksonville, with others on the way.

Air Mail Center Operations:  An  AMC capacity study is also under 
way, being carried out by Jim Cunningham.  An increase in "scan 
where you band" capability is in process.

Delivery Operations:  Bob Sheehan said this area would be one of 
the main beneficiaries of classification reform, with increased 
delivery point sequencing volumes, cost reductions, and enhanced 
capacity for other products.

Deliver America-Oscar Avant

Oscar reported on the Deliver America program, which has the goals 
of seeking new revenue and mitigating the effects of electronic 
diversion of current mail.  The program calls for kiosks, which 
are actually consumer shopping stations, to be placed in high 
traffic locations such as post offices, libraries, and airports.  
Market testing with 8-10 catalogers is being carried out in 
locations including Atlanta and Philadelphia from now until the 
end of 1996.  If the program is successful, other locations, 
including some international placements such as in Japan, will be 
forthcoming.


				    MTAC
			   Periodicals Subcommittee
				JUNE 12, 1996

Charles Pace, Industry Chair
Bob Kooken, Postal Chair

INTRODUCTION

Charles Pace opened the meeting by welcoming all participants to 
the MTAC Periodicals subcommittee meeting.  He then introduced 
Glen Cournoyer, Postal Service Program Manager for ADVANCE.

ADVANCE - TRACKING AND MONITORING                                
RECENT DEVELOPMENTS INVOLVING PERIODICALS TRACKING

Glen Cournoyer presented an overview of ADVANCE and said that all 
was going well and that the software for periodicals has been 
reviewed and should be deployed in time for August mailings. He 
also discussed Periodicals customer requirements, to qualify for 
participation in the Advance program.  A copy of his presentation 
is attached.  Glen stated that the ADVANCE program technical guide 
will be distributed through the National Customer Support Center 
in Memphis.  For information, the toll free number for the NCSC is 
1-800-238-3150.  The threshold for Periodicals ADVANCE will be 
between 6 and 50 pieces per carrier route.   Glen also said that 
the program will be available nationally and he will provide 
another update at the September MTAC meeting.  Joe Schick, Quad 
Graphics, suggested that the requirements for Periodicals ADVANCE 
be published in the Postal Bulletin and Glen agreed if the 
Industry feels it is necessary. 

PERIODICALS FOCUS GROUP REPORT                          
QUARTERLY REPORT ON PERIODICALS AND RELATED ISSUES.

Tom Tully, McGraw-Hill, and National Chair for the Periodicals 
Focus Groups, talked about service reports received from the focus 
group meetings and said that service was not too bad.  However, he 
did point out some service problems in Atlanta, South Florida, 
Chicago, New York and Philadelphia.  Lou Bradfield, Mid-Atlantic/
Allegheny Industry Co-chair, said that the meeting held on April 
16, 1996 reported a 50% decrease in complaints compared to the 
March meeting.  Tom expressed concern over some origin and 
destinations which were not processing Periodicals according to 
the critical entry times and that one report indicated a facility 
holding mail as long as twelve hours before processing. Tom said 
that the New York Metro/Northeast and the Mid-Atlantic/Allegheny 
Focus Groups have put together service teams that would go out to 
a printer's plant to review the mail makeup and print order, to 
improve service. Tom urged the committee to contact the ADC's and 
ask how your publication will be handled after reclassification.  
Tom also gave a copy of the Focus Group calendar for the minutes 
and also encouraged the committee association members to attend. 
There will be a Periodicals Focus Group meeting scheduled for the 
National Postal Forum in Washington, DC in August.


POLICY, REQUIREMENTS AND METHODS (PRM)
UPDATE ON AMC PROCEDURES AND OTHER ISSUES.                      

Dennis Farley, Fairchild Publications, reported on the PRM work-
group meeting held June 11, 1996.  Jim Cunningham, Manager, AMC 
Operations, spoke about the elements needed for a complete Air 
Mail Center (AMC) information guide.  He also asked the industry 
for information such as AMC volumes, preparation and 
transportation costs and that the information be sent to him at 
USPS Headquarters, Room 7631.  Joel Rosen, AMC Specialist, 
mentioned that the USPS was looking at putting the 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.  On a separate issue, Dennis Farley expressed serious 
concern with the deployment schedule for flat sorters which handle 
tabloid size publications as well as an implementation timeline 
for barcode rates for tabloids.  Steve Feldman of American 
Business Press, asked that this be made a key issue (see attached).   
Jim Cunnigham said that he would investigate the issue for the 
group.    Also discussed was the need to review the co-mailing 
requirement outlined in DMM Section E230.8.5 by the USPS to ease 
the requirements and allow printers of shortrun publications to 
co-mail.  Bob Kooken agreed to present the issue to Anita Bizzotto 
for comment.

REPORT ON THE IMPLEMENTATION RESOURCE TEAM FOR CLASSIFICATION 
REFORM ISSUES FOR PERIODICALS

Dick Funck, Meredith Corporation, said that although periodicals 
classification reform has not presented as many changes as First-
Class Mail or Standard class, it is becoming apparent that there 
are many problems.  Dick talked about some requirements that were 
changed, such as the "AUTO" marking for automation rate letters 
that was dropped if the mailer prebarcoded in the address block, 
and the 6 month extension for utilizing material that still 
identifies the Periodicals as Second-Class.  

Dick indicated that the implementation team  meets every Friday 
via teleconference at 9:30 A.M. EST.  He spoke about the 
interface problems where 2 out of 3 software programs were not 
properly working for Periodicals.  Joyce McGarvy, Crain 
Communications, related her difficulties interfacing with her 
mainframe.  Monica Lundquist cautioned that even thought the 
product is available, publishers should not expect the software to 
work on all platforms.  In addition, she indicated nonprofit 
mailers would only be getting one software program from the 
vendors and the choice would be to make up the mail in accordance 
with Classification Reform rules or to get an exception.  Dick 
Funck said that next meeting of the Periodicals Implementation 
Group will be August 1, 1996 in Milwaukee following the GCA 
meeting.  Ed Wronski, Manager of the NY Metro RCSC, clarified 
questions concerning mail classification reform requirements and 
guidelines for publishers requesting exception to the July 1, 1996 
deadline.  The Subcommittee has concerns about the implementation 
and has made this a key issue (see attached).

MAIL NORTH OF THE BORDER.

Charles Pace introduced Clayton Bonnell, Manager, International 
Operations from the USPS International Group, Rhonda Dagenais, 
Network Integration,  Canada Post, and Mark Dandeno, Officer, 
Network Planning, Canada Post..  A joint presentation (copy 
attached) focused on the preparation and treatment of Periodicals 
being transferred between the postal services of the USA and 
Canada.  Additional discussion on Canadian service standards and 
flats automation followed.  Clayton also offered to be a point of 
contact for follow-up questions at 202-314-7234.




Signed: _______________________________                         

Date:_______________
		

Charles L. Pace 
Chair



		 KEY ISSUES - JUNE 12, 1996 MEETING
		   MTAC PERIODICALS SUBCOMMITTEE

#1

Cause of great concern - Mailings being run before and after 
7/1/96 cannot use two separate sets of software (must be one or 
other).  If a mailing is to be made on or before 6/29/96 - 6/30/96, 
can we use new software and new schemes while still paying old 
rates in order to help with software conversion?

#2

We ask the Postal Service's Corporate Management to set a 
definitive timetable to allow tabloid-size newspapers and 
magazines to take advantage of the barcode discount.  This also 
includes Periodicals over one pound.

As of now, there is confusion and apprehension about the new 
equipment's (FSM 1000) capability to handle non-magazine 
periodicals that are barcoded.  

Set the date when we will be allowed to claim the discount.



Charles Pace
Chair