Postal Regulatory Commission

Congressional Budget Justification

Fiscal Year 2019
2

Table of Contents

Executive Summary FY 2019.................................................................................................................3

Background..........................................................................................................................................................6

Commission Achievements in FY 2017........................................................................................................8

Budget Overview and Highlights for FY 2019..........................................................................................13

Budget Program Information.......................................................................................................................18

Proposed Appropriations Language...........................................................................................................19

Strategic Goals, Work Plans, and Performance Objectives..................................................................21

Office of Inspector General...........................................................................................................................27
3

Executive Summary FY 2019

The Postal Regulatory Commission (Commission) is an independent agency that has exercised 

regulatory oversight over the United States Postal Service (Postal Service) since its creation by 

the Postal Reorganization Act of 1970, with expanded responsibilities under the Postal 

Accountability and Enhancement Act of 2006 (PAEA). The Commission promotes high quality 

universal mail service for the American people by ensuring Postal Service transparency, 

accountability, and compliance with the law, particularly on its rates, product offerings, service 

quality, and competition as a government entity. The Commission is the primary regulator of 

the Postal Service and provides analyses on postal financial operations to Congress, 

stakeholders, and the general public. The Commission’s job of regulating the Postal Service, the 

nation’s second largest civilian employer, which is currently facing significant financial 

challenges, could not be more important than it is now. 

To accommodate the Office of Management and Budget’s (OMB) request in the context of 

developing the administration’s budget, the Commission transmits the President’s 

appropriation recommendation of $15,100,000 for the Commission.

Since Fiscal Year (FY) 2009, Congress appropriates the Commission’s budget out of the offbudget Postal Service Fund, which is the permanently appropriated revolving fund comprised 

solely of the monies that the Postal Service controls and raises from selling its products and 

services. The Commission’s funds, therefore, come from the Postal Service’s ratepayers rather 

than taxpayer monies. The Commission’s appropriation represents a tiny fraction of the Postal 

Service’s FY 2017 revenues of $69.6 billion. As the Postal Service continues to adapt its 

operations to mailing and delivery service trends, including declining mail volume and growing 

expenses, the Commission continues to experience substantial increases in its workload. Over 

the last 5 years, the Commission’s docketed cases have increased annually, an average of 11

percent. The administrative support staff’s workload also continues to expand due to the 

Commission’s increased responsibility to meet federal mandates such as emerging Information 

Technology (IT) cybersecurity initiatives. 

After 8 years of reductions from the FY 2008 level, the Commission achieved budgetary

increases in FY 2016 and FY 2017 that put it above the FY 2008 level for the very first time. As a 

result, the Commission, which dedicates 77 percent of its budget for salaries and benefits, was 

finally able to turn the corner on years of deferred hiring and deferred investments in IT for 

cybersecurity protection. However, reductions similar to the low funding levels of FY 2008-2014

would result in a considerable setback of critical progress, and despite efficiencies, could harm 

the Commission. The modest increase in funding requested of $15,100,000 will allow the 
4

Commission to work toward Federal Information Security Management Act (FISMA) compliance 

and to maintain the current staffing level of 80 Full Time Equivalents (FTEs).

Personnel 

The Commission is already a lean organization. After accounting for the workforce 

requirements of commissioners and their staff, and administrative support personnel, the 

Commission has just 46 highly skilled professional staff to perform the challenging analytical, 

technical, and legal work that is the core of the Commission’s regulatory responsibilities. It is 

also important to recognize that in each docketed case, the Commission by law must also 

appoint a staff member to serve as an officer of the Commission to represent the interests of 

the general public. Therefore, the Commission must field “two teams” for every case, further 

stretching resources. 

The Commission continues to work on significant statutorily mandated reviews even as it 

experiences a substantial increase in workload. In addition to increasing in number, these cases 

continue to also increase in complexity, particularly those related to rates, new products, 

service changes, and competition. The Commission’s goal for FY 2019 is to preserve our ability 

to fund the current FTE authority of 80 employees despite a pressing need to increase that level 

to meet the increasing workload demands.

In FY 2019, the Commission expects to experience increased workload related to any potential 

changes resulting from the 10-year review. The continuation of these evaluations will entail 

intensive work and analysis by the Commission, involve extensive public participation, and 

require a significant share of the Commission’s resources.. 

Cybersecurity and IT Infrastructure

The Commission seeks to maintain and optimize its IT infrastructure and strengthen its 

cybersecurity posture. As authorized by the OMB in Directive M-17-28, funds will be used to 

eliminate deficiencies identified by the Department of Homeland Security (DHS) in the 

Commission’s current cybersecurity posture. The planned initiatives will allow the Commission 

to manage cyber-risk and come closer to achieving FISMA compliance. Funding these initiatives 

is essential to ensuring the Commission has an acceptable risk assessment and a strong 

cybersecurity posture.

The FY 2019 budget of $15,100,000 will allow the Commission to meet its statutory obligations, 

including providing timely responses to Congressional mandates and continuing progress in 

achieving FISMA compliance. 
5

Mission

Ensure transparency and accountability of the United States Postal Service 

and foster a vital and efficient universal mail system

GuidingPrinciples

The Commission is committed to, and operates by, the principles of:

 Openness

 Public participation

 Integrity

 Fairness and impartiality

 Timely and rigorous analysis

 Merit

 Commitment to excellence

 Collegiality and multi-disciplinary approaches

 Adaptability

 Proactive response to the rapidly changing postal environment

Vision

To be an independent regulator respected for effectively engaging postal 

stakeholders to promote a robust universal mail system through objective, 

accurate, and timely regulatory analyses and decisions
6

Background

The Commission is an independent establishment of the executive branch of the United States 

Government, exercising regulatory oversight over the Postal Service since its creation by the 

Postal Reorganization Act of 1970, with expanded responsibilities under the PAEA. The 

Commission is composed of five commissioners, each appointed by the president, by and with 

the advice and consent of the Senate, for a term of 6 years. No more than three of the 

commissioners may be adherents of the same political party. The president designates one of 

the commissioners to serve as chairman. The chairman is the principal executive officer of the 

Commission.

Commission staff has expertise in law, economics, finance, statistics, and cost accounting, and is 

organized into four operating offices:

• Accountability and Compliance. The Office of Accountability and Compliance is responsible 

for technical analysis and formulation of policy recommendations for the Commission in 

both domestic and international matters. It provides the analytic support for Commission 

review of rate changes, Negotiated Service Agreements (NSAs), classifications of new 

products, post office closings, amendments to international postal treaties and conventions, 

as well as other issues.

• General Counsel. The Office of the General Counsel provides legal assistance on matters 

involving the Commission’s responsibilities and authorities, including defending Commission 

decisions before the courts and advising the Commission on legislation, rulemaking,

procurement, personnel, ethics, and all other legal matters.

• Public Affairs and Government Relations. The Office of Public Affairs and Government 

Relations is the Commission’s primary resource in support of public outreach and 

education; media relations; and liaison with Congress, the Postal Service, and other 

government agencies. The office provides information for consumers and responds to their 

inquiries.

• Secretary and Administration. The Office of the Secretary and Administration (OSA) 

provides management and staff support to the Commission’s operational offices (including 

the Office of the Inspector General (OIG)), the Commission’s Strategic Plan, and various 

initiatives of the Executive Branch. OSA ensures that the Commission has the physical, 

financial, technological, and human capital infrastructure needed to accomplish its mission

by providing for the management of accounting, finance, budget, records, human capital, 

information technology, and administrative support.

Inspector General. The Commission maintains an independent OIG. That office conducts, 

supervises, and coordinates audits and investigations relating to Commission programs and 

operations, and identifies and reports fraud and abuse.
7

Organizational ChartChart
8

Commission Achievements in FY 2017

The Commission achieved the following significant accomplishments in FY 2017 that support its 

mission to ensure transparency and accountability of Postal Service operations and foster a 

vital and efficient universal mail system.

1. The Commission’s Strategic Plan was finalized with input from all levels of the 

organization. The plan includes the Commission’s Vision Statement: To be an 

independent regulator respected for effectively engaging postal stakeholders to 

promote a robust universal mail system through objective, accurate, and timely 

regulatory analyses and decisions. This comprehensive plan provides a guide for 

the Commission’s pursuit of transparency and accurate and objective analysis; 

commitment to active engagement with Congress and stakeholders; and support 

of the Commission staff. This plan also guides the use of the Commission’s 

resources in ensuring the prudent utilization of the Commission’s budget and 

personnel complement. The plan is posted on the Commission’s webpage, 

www.prc.gov.

2. The Commission published five major reports in FY 2017:

• The Annual Report to the President and Congress (Annual Report) described 

the Commission’s accomplishments and activities as the regulator of the 

Postal Service.

• The Annual Compliance Determination (ACD) reviewed the Postal Service’s 

compliance with pricing and service standards.

• The Financial Analysis of Postal Service Financial Results and 10-K Statement 

for FY 2017 provided an in-depth analysis of the Postal Service’s financial 

condition. 

• The Analysis of Postal Service FY 2016 Performance Report and FY 2017

Performance Plan evaluated whether the Postal Service met its performance 

goals as required under Title 39 of the United States Code (U.S.C.), section 

3653(d). 

• The Section 701 Report: Analysis of the Postal Accountability and 

Enhancement Act of 2006 recommended to the President and Congress 

legislation and other ways to improve the effectiveness and efficiency of the 

United States’ postal laws.

3. The Commission presided over the following rate and classification proceedings 

in FY 2017:
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• The review and approval of a proposal to adjust Market Dominant prices,

including an adjustment to bundle and piece pricing for the Flats Sequencing 

System and Carrier Route 5-Digits categories, increased piece/pound 

breakpoints for Standard Mail flats, and a name change for Standard Mail. 

The Commission denied the Postal Service’s proposed classification change 

to Collect on Delivery Service because the proposed classification change was 

not appropriate for the rate adjustment proceeding.

• The review and approval of four NSAs with foreign postal operators.

• The review and approval of a request to add Inbound Market Dominant 

PRIME Tracked Service to the market dominant product list.

• The review and approval of a proposal to amend prices and classification 

language for Move Update.

• The review and approval of two Postal Service requests for changes in 

Competitive prices and classifications.

4. The Commission considered 12 Postal Service proposals for changes to accepted 

analytical principles. The Commission approved six proposals in full, one 

proposal in part, and the Postal Service withdrew one proposal. Four proposals 

were pending before the Commission at the end of FY 2017; the Commission 

responded to these proposals in FY 2018, approving three and denying one.

5. In December 2016, the Commission began a statutorily mandated 10-year 

performance review of the original “system for regulating rates and classes for 

market-dominant products” in accordance with 39 U.S.C. 3622. The law requires 

the Commission to determine whether the system set up in 2006 has achieved 

the 9 objectives, considering 14 additional factors, which the law established. If 

the objectives have not been achieved, considering the factors, the statute 

allows the Commission an opportunity to modify or adopt an alternative system

that achieves the objectives. The Commission dedicated a majority of its 

resources to this review throughout the fiscal year, and in early FY 2018 the 

Commission issued Order No. 4257 finding that the current system as a whole 

has not achieved the objectives of the PAEA, and Order No. 4258 proposing 

changes to the current system.

6. The Commission considered issues relating to the proposed internal service 

performance measurement system. The Commission hosted a technical 

conference to review the Postal Service’s Audit Plan for the proposed 

measurement system, issued an interim order requesting more information from 

the Postal Service, and responded to a Postal Service Motion for 

Reconsideration. This case is still pending before the Commission.
10

7. The Commission is conducting rulemakings relating to rate and costing issues, 

including:

• Proposed rules for the appropriate contribution to institutional costs for 

competitive products. The Commission issued a Notice of Proposed 

Rulemaking in FY 2018.

• Proposed rules for regulating mail preparation changes that affect the 

price cap. The final rule was issued in FY 2018.

8. The Commission approved 316 NSAs for Competitive products (208 domestic,

108 international) and over 100 amendments to existing NSAs. Additionally, the 

Commission approved five Market Dominant NSAs.

9. The Commission reviewed and approved the Postal Service’s calculation of the 

assumed Federal income tax on Competitive products in a separate docket. 

10. The Commission proposed new rules and amendments concerning the standards 

of ethical conduct for Commission employees. The rules were approved and 

went into effect in early FY 2018.

11. In other proceedings, the Commission:

• Adjudicated two post office closing appeals

• Evaluated and approved two Postal Service requests related to market 

tests

• Considered public inquiry dockets relating to city carrier costs

12. In its international postal policy role, the Commission:

• Continued its active role in the Universal Postal Union (UPU) Letters and 

Parcels Remuneration Groups on international letter mail and parcel 

delivery rates by chairing the UPU Regulatory Issues Project Group on 

behalf of the U.S. Government

• Continued collaboration on international postal issues with other 

government agencies such as the Department of State through its Federal 

Advisory Committee on International Postal and Delivery Services

• Provided views to the Secretary of State on whether certain proposals for 

the 26th Congress of the UPU are consistent with the standards and 

criteria for modern rate regulation established by the Commission under 

39 U.S.C. § 3622

• Published a commissioned study discussing the impact of terminal dues 

on financial transfers among designated UPU operators
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13. In FY 2017, the Commission continued its commitment to support initiatives to 

recruit, develop, and retain a skilled, high-achieving, and diverse workforce. At 

the end of FY 2017, women and minorities accounted for 59 percent and 31

percent of the workforce, respectively. Women also filled 40 percent of the 

Commission’s executive positions; minorities filled 10 percent.

The Commission provided internship opportunities to aid in recruiting and 

developing professionals with diverse backgrounds to the Commission. It will 

continue efforts to increase diversity in the workforce through outreach and 

recruiting at local universities, veterans’ groups, and other organizations and 

groups that target under-represented populations.

14. The Commission continued its commitment to transparency, accountability, and

compliance with the Freedom of Information Act (FOIA). The Commission 

expects to receive a favorable review in the Department of Justice’s FY 2017

Assessment of Agency Progress. The Commission completed all FY 2017 requests 

within statutory limits. The Commission also issued updated FOIA regulations in 

compliance with the FOIA Improvement Act of 2016.

15. As part of its mission to ensure transparency, accountability, and openness, the 

Commission continued to provide live and archived webcasts of hearings, 

technical conferences, and public meetings. These offerings were expanded in FY 

2016 to include video webcasts. These are available on the Commission’s 

website, www.prc.gov.

16. The Commission focused on improving its records management program to 

ensure compliance with the Presidential Memorandum on Managing 

Government Records (November 28, 2011) and OMB/NARA Directive M-12-18 

(Directive). Annual records management training is provided to all Commission 

staff to educate and inform them of their records management responsibilities. 

In FY 2017, the Commission made significant progress in implementing a holistic 

electronic document and records management system, with the goal of finalizing 

implementation in FY 2018. The Commission received positive ratings from the 

U.S. National Archives and Records Administration (NARA) for proceeding with 

and strengthening its records management program.

17. The Commission is committed to maximizing efficient use of appropriated funds. 

It has strengthened financial management processes by implementing internal 

controls, reconciliation initiatives, and a comprehensive budget development 

process to ensure appropriated funds are being managed efficiently. 

18. In response to the 2009 presidential memorandum regarding government 

contracting, and in line with Executive Order 13576, “Delivering an Efficient, 

Effective, and Accountable Government” (2011), the Commission is updating its 

procurement policy and process. The new policy is centered on strengthening 

the Commission’s commitment to best value and promoting a fair and equitable 

procurement opportunity for all vendors. 
12

19. The Commission continued to work with the DHS’s Cyber-hygiene and 

Continuous Diagnostics and Mitigation (CDM) programs to strengthen the 

Commission’s cybersecurity posture and provide management with relevant and 

timely information about threats and vulnerabilities to the Commission IT 

systems. In FY 2017, the Commission had zero incidents to report to the DHS 

United States Computer Emergency Readiness Team (US-CERT) and did not 

experience any breaches of personally identifiable information.

20. The Commission issued revised compensation and performance management

policies to ensure fair and transparent pay processes. 

21. The Commission issued updated reasonable accommodation, flexible work 

program, and leave policies. 

22. Other activities performed by the Commission included:

• The implementation of the Commission’s five-year Strategic Plan for 

Fiscal Years 2017-2022.

• Processing of more than 3,866 inquiries, questions, suggestions, and 

comments from the general public, which primarily involved undelivered, 

delayed, mis-delivered, and missing mail.

• Further website enhancements addressing ease of navigation and 

compliance with Section 508 of the Rehabilitation Act.
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Budget Overview and Highlights for FY 2019

The Commission’s request of $15,100,000 will allow the agency to meet its mission of ensuring 

transparency and accountability of the Postal Service, and fostering a vital and efficient 

universal mail system. To accommodate the OMB’s request in the context of developing the 

administration’s budget, the Commission transmits the President’s appropriation 

recommendation of $15,100,000.

The Commission’s budget request for this year includes a focus on five funding priorities: 

FISMA compliance/cybersecurity, staffing, training, lease, and statutory obligations. If funded at 

much lower levels, the Commission would not be able to achieve FISMA compliance and 

maintain the current staffing level of 80 FTEs.

The Commission’s two primary expenditures are payroll and lease obligations. These two 

expenditures account for 89 percent of the annual appropriation. (See Expenditures FY 2017

below).

The PAEA requires the Commission to execute a broad range of responsibilities relying on a 

staff with a unique set of skills, knowledge, and competencies. As the Commission’s mission 

continues to evolve in complexity and depth, the need for training has become even more 

evident to keep abreast of current trends in law, economics, accounting, and policy. In FY 2017, 

the Commission implemented mandatory Individual Developmental Plans (IDPs) for all 

employees to link training to mission, strategic goals, and budget. In FY 2019, if funded as 

77%

2%

12%

9%

Expenditures FY 2017

Personnel Compensation Supplies and Services Lease Other Operating Expenses
14

requested by the Commission, the staff will be able to continue receiving job specific training.

Prior to FY 2016, training was deferred for years due to limited funds. 

The Federal Government has also experienced many well-publicized cybersecurity challenges, 

and has issued legislation and mandates to meet these challenges, which, in turn results in 

growing requirements for the IT budget line. 

The Commission is committed and confident that, with the approved requested amount of 

$15,100,000, the Commission will continue to achieve its mission.

FY 2008-2019 Enacted/Submitted Budget (in 000s)

$12,700

$13,200

$13,700

$14,200

$14,700

$15,200

$15,700

$16,200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Enacted Budget (000) Submitted (000)

President's FY19 

Recommendation 

of $15,100

Years 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Enacted 

Budget 

(000)

14,985 14,043 14,320 14,450 14,304 $14,450 $14,152 14,700 15,200 16,200

Submitted 

Budget 

(000)

14,400 15,100 
15

Commission’s Statutory Responsibilities Increase

In FY 2017, the 10-year anniversary of the PAEA’s enactment, the Commission began two 

critical reviews mandated by law and expects to take further action on them in FY 2018:

1. A 10-year review of the efficacy of the system for regulating rates and classes in achieving 

the objectives of section 3622 of Title 39 of the United States Code. This review requires a 

comprehensive reassessment of how rates and fees for Market Dominant products are set, 

which could have a critical impact on the American mailing public, business mailers, and the 

Postal Service. On December 1, 2017, the Commission issued its findings on whether the 

current system had achieved applicable statutory objectives during the first 10 years of the 

PAEA as well as a Notice of Proposal Rulemaking, which is currently open for public 

comment.

2. A 5-year review of the contribution of Competitive products to institutional costs, which is 

of significant import to the commercial marketplace. The Commission issued a Notice of 

Proposed Rulemaking in FY 2018.

The continuation of these evaluations will entail intensive work and analysis by the 

Commission, involve extensive public participation, and require a significant share of the 

Commission’s resources. In FY 2019, the Commission expects to experience increased workload 

related to any potential changes resulting from the 10-year review.

In Addition to Statutory Mandates, Workload Continues to Grow

The Postal Service’s efforts to adjust to national changes in mail usage will require the 

Commission to continue to hear cases of major national policy import. The Commission will 

need to review additional Postal Service proposals to right size its network and will be required 

to provide needed oversight as the Postal Service tries to make greater use of its pricing 

flexibility under the PAEA. The Commission will need to apply substantial resources to measure 

the impact of changes implemented by the Postal Service and to fully evaluate and respond to 

new ideas that result in innovative products and services, greater efficiencies, and cost savings 

for the Postal Service.

As the Postal Service implements changes to operating hours, delivery service, and the 

processing infrastructure, the Commission will in turn be required to adjudicate several highly 

complex cases related to these changes. Additionally, as the Postal Service proposes new 

products, services, and NSAs to generate additional revenue, the Commission must review 

these initiatives and service agreements to ensure a predictable, transparent, and effective 

system of rate and product regulation that complies with the law. As a result, the Commission 

will handle an increasing number of complex dockets.
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The Commission anticipates many new challenges as the Postal Service and interested 

stakeholders explore the legal boundaries of the PAEA. For example, the Commission

anticipates processing an increasing number of contentious cases involving requests to expand 

the number of Postal Service Competitive product offerings, either through the creation of new 

Competitive products or the transfer of existing Market Dominant products to the Competitive 

products list.

As in previous years, the Commission will issue its primary regulatory document, the ACD, 

assessing the Postal Service’s compliance with ratemaking regulations and applicable laws. In 

the report, the Commission will review and determine whether Market Dominant rates are 

within the Consumer Price Index rate cap, whether Competitive products are subsidized by 

Market Dominant products, and whether Competitive products pay their attributable costs as 

well as an appropriate share of fixed postal costs. The report will also evaluate the Postal 

Service’s service performance. The Commission will also issue three additional reports: The 

Analysis of United States Postal Service Financial Results and 10-K Statements, Analysis of the 

Postal Services FY 2017 Program Performance Report and FY 2018 Performance Plan, and 

Annual Report to the President and Congress. The Commission may also undertake special 

studies requested by the Postal Service, Congress, or as needed to complete its statutory 

responsibilities. Additionally, the Commission has completed studies on: infra-marginal and 

institutional costs, terminal dues, postal elasticity, cost elements of the Universal Service 

Obligation, and cost elements of the value of the postal monopoly. 

The Commission also serves an integral role in helping the Department of State to formalize and 

promote U.S. Government positions in the UPU, particularly in promoting greater transparency 

and accountability.

Cybersecurity and Information Technology Infrastructure Improvements

The Commission seeks to improve its IT infrastructure and cybersecurity posture by 

implementing much-needed security enhancements and upgrades to the external website and 

dockets system. Great strides were made in prior years toward hardening our systems and 

increasing our monitoring capabilities. In FY 2019, if funded as requested by the Commission, 

the Commission will continue these critical projects to ensure the security of our data and 

systems in the face of increased cybersecurity threats, by obtaining up-to-date technology that 

ensures cyber risks are systematically and effectively identified, evaluated, and mitigated. One 

result of implementing increased capabilities is the on-going budgetary impact of annual 

licensing, service, and maintenance fees. 

The Commission also intends to continue with other modernization initiatives, including

enhancements to the Commission website to ensure compliance with Section 508 of the 
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Rehabilitation Act, and network exfiltration, phishing, and penetration testing. In FY 2016, the 

Commission submitted its transition plan to the General Services Administration (GSA) as 

required for the upcoming telecommunication transition from Networx to Enterprise 

Infrastructure Solutions (EIS). In FY 2019, the Commission will continue to work with GSA on the 

transition activities to ensure that the Commission has a compliant and up-to-date 

telecommunication infrastructure by FY 2020.

The Commission needs to continue developing a modernized digital infrastructure with 

emphasis on records management. In FY 2019, the Commission will finalize the implementation 

of an electronic records management system, including email and document control. This 

system provides compliance with OMB/NARA Records Management directives, and improves 

the safeguards and security of our records.

All of these enhancements and upgrades would be suspended if the enacted budget is 

significantly reduced below the Commission’s request.
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Budget Program Information

The Commission’s FY 2019 Performance Budget Plan has four programs consisting of: (1) Postal 

Service Accountability; (2) Public Access and Participation; (3) Integration and Support; and (4) 

the OIG. These programs are aligned with the goals contained in the Commission’s Strategic 

Plan.

Note: This is the full amount requested by the Inspector General to fund OIG personnel 

(including detailees), travel, and training.

Program

FY17 FY 2018 President’s 

Request

FY 2019 President 

Request

$000 FTE $000 FTE $00 FTE

Postal Service 

Accountability 7,875 47 7,000 47 7,350 47

Public Access & 

Participation 1,125 13 1,000 13 1,080 13

Integration & 

Support 6,075 17 5,400 17 5,670 17

Office of the 

Inspector General 1,125 3 1,000 3 1,000 3

Total 16,200 80 14,400 80 15,100 80
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Proposed Appropriations Language

Postal Regulatory Commission

Salaries and Expenses 

(including transfer of funds)

For necessary expenses of the Postal Regulatory Commission in carrying out the provisions

of the Postal Accountability and Enhancement Act (Public Law 109-435), $15,100,000 * ,

to be derived by transfer from the Postal Service Fund and expended as authorized by section

603(a) of such Act.

* NOTE: Pursuant to 39 U.S.C Section 2009, “The President shall include [the Commission’s appropriation request], with his 

recommendations but without revision, in the budget transmitted to Congress under section 1105 of title 31.” To accommodate the OMB’s

request in the context of developing the administration’s budget, the Commission transmits the President’s appropriation recommendation 

of $15,100,000, $836K less than the Commission’s original request of $15.936.
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Obligation by Object Classification

Object 

Classification FY 2017

FY 2018 

President's 

Recommendation

FY 2019 

President’s 

Recommendation

Personnel 

Compensation

 

12,248 12,248 12,182

Other Personnel 

Compensation

 

170 0 0

Subtotal 12,418 12,248 

 

12,182 

Supplies

 

41 12 1

Office Furniture & 

Equipment

 

8 0 0

Office Equipment 

Rental & Repair

 

15 0 0

Contractual 

Services

 

249 50

 

6 

Consulting Services

 

986 0 1

Advertising

 

8 0 0

Bldg. Repairs & 

Alterations

 

30 0 0

Subtotal 1,337 62

 

8 

Travel

 

24 0 1

Training

 

54 0 1

Printing & 

Reproduction *

 

90 0 82

Lease

 

1,848 1,980 2,059

Miscellaneous, 

Subscriptions

 

2 0 0

Communications

 

170 90 0

Information 

Technology

 

257 20 767

Subtotal 2,445 2,090

 

2,910

Total Obligations 16,200 14,400 

 

15,100

* Printing - Federal Register mandatory filing $82K
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Strategic Goals, Work Plans, and Performance Objectives

Postal Service Accountability

Strategic Goal 1 - Deliver accurate and objective analyses and decisions to ensure 

transparency and accountability of the Postal Service.

 Strategic Objective 1.1. Thoroughly and accurately analyze and apply statutes, 

regulations, and Commission precedent.

 Strategic Objective 1.2. Ensure transparent, accurate, and informative Postal Service 

reporting for evaluation of lawful compliance of rates and service performance.

 Strategic Objective 1.3. Responsibly, transparently, and efficiently lead the review of 

the existing statutory system for regulating rates and classes for Market Dominant 

products, as well as consider, and, if necessary, implement modifications or an 

alternative system. 

 FY 2019 Work Plan Strategies

o Analyze, develop, and implement public policy as it relates to postal matters.

o Execute a visible and effective advisory role with regard to measureable and 

dynamic Postal Service and mail delivery service performance.

o Consult on, revise, and augment performance standards and goals for Market 

Dominant products.

o Assess and refine the rules, regulations, and systems established for publication 

of relevant Postal Service data.

o Prepare analytical framework.

FY 2019 Work Plan:

• Review and evaluate Postal Service financial data.

• Enforce compliance determinations.

• Review and evaluate Postal Service international data and proposals for the UPU.

The Commission will measure success by the timeliness, thoroughness, relevance, and accuracy 

of readable work products. These indicators will be supplemented by feedback from 

commissioners and staff, the Postal Service, the State Department, and other stakeholders.

• Execute a visible and effective advisory role in regard to Postal Service proposals for 

changes in the nature of U.S. postal services, such as proposed changes in nationwide 

services. Issue special reports on Commission evaluation of potential policy and systemic 

changes.
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• On an annual basis, evaluate compliance with standards for service performance (39 U.S.C. 

section 3653) and continue to evaluate the extent to which the Postal Service must use an 

external versus an internal measurement system.

• Consult on, revise, and augment performance standards and goals for Market Dominant 

products.

• Review quarterly service performance data and maintain reports on website.

The Commission will measure success by the timeliness, quality, thoroughness, and accuracy of 

readable work products, as well as its relevance and actionable advice. These indicators will be 

supplemented by feedback from commissioners, the Postal Service, Congress, the postal 

community, and other stakeholders.

• Refine and augment the system for regulating rates and classes for Market Dominant 

products.

• Review and evaluate Postal Service proposals to move products between Market Dominant 

and Competitive product classifications.

• Review, analyze, and evaluate workshare discounts, NSAs, and market tests. Issue timely, 

accurate reports and findings on these reviews.

• Review, analyze, and evaluate Postal Service requests for rate changes.

• Review Postal Service and other parties’ requests for changes to cost methodologies.

The Commission will measure success by the timeliness, thoroughness, and accuracy of its 

readable work products. These indicators will be supplemented by feedback from 

commissioners, the Postal Service, Congress, the postal community, and other stakeholders.

• Calculate cost of the Universal Service Obligation on an annual basis.

• Maintain and improve understanding of universal mail system.

The Commission will measure success by the timeliness, thoroughness, relevance, and accuracy 

of its readable work products. These indicators will be supplemented by feedback from 

commissioners, the Postal Service, Congress, the postal community, and other stakeholders.
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Public Access and Participation

Strategic Goal 2 - Actively engage with Congress and stakeholders in support of a dynamic 

postal system.

 Strategic Objective 2.1. Continue to strengthen proactive and responsive 

communication to foster a collaborative relationship with Congress. 

 Strategic Objective 2.2. Foster constructive communications with the Postal Service and 

stakeholders to streamline the regulatory process. 

 Strategic Objective 2.3. Clearly communicate complex analyses and decisions to address 

the needs of diverse stakeholders.

 FY 2019 Work Plan Strategies

o Effectively communicate the outcome of Commission work to Congress in a 

timely fashion.

o Update the strategic communication plan to facilitate targeted congressional 

outreach.

o Participate in hearings on postal regulatory related matters.

o Facilitate efficient and effective Commission regulatory process and clearly 

articulate Commission expectations and timelines.

o Strengthen open communications with stakeholders.

FY 2019 Work Plan: 

• Maintain and update comprehensive strategy for outreach to the public and media. 

Implement consistent messaging, updating, and branding for public documents and the 

Commission’s website.

• Continue to enhance government relations through proactive outreach and relationship 

building with Congress, the Executive Branch, Federal, state, and local governments. 

• Maintain a timely system to track, analyze, and respond to public and consumer inquiries 

and correspondence, including “informal complaints.”

• Identify legislative and public affairs priorities. Develop Commission Annual Report. 

The Commission will measure success by responding to public inquiries within 72 hours, barring 

exceptional circumstances. 

• Maintain a consistent, transparent, and equitable formal complaint system that provides 

timely and proper due process to complainants and the Postal Service.
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• Identify patterns in appeals and complaints and order appropriate remedies to achieve 

compliance.

The Commission will measure success by the: 

• Percentage of post office appeals resolved within 120 days

• Percentage of formal complaints in which affirmative action was taken within 90 days

• Percentage of rate and service inquiries in which responsive information is obtained within 

60 days

The Commission will review and update as necessary procedures for appeals and complaints at 

least every 5 years. 

• Conduct public outreach through traditional media, technology tools, and other methods to 

ensure wide public notice of all Commission proceedings.

• Review and simplify processes through which members of the public may provide their 

input on the Commission’s decision-making processes.

• In conformance with Commission policy, continually review and provide guidance to those 

appointed to represent the interests of the general public in Commission proceedings in 

order to improve performance.

Integration and Support

Strategic Goal 3 - Provide an optimal internal infrastructure to support management of 

priorities, workload, and emerging requirements.

 Strategic Objective 3.1. Optimize support infrastructure to manage and advance system 

capability, requirements, and security.

 Strategic Objective 3.2. Prioritize and manage workload to increase capacity 

and agility. 

 Strategic Objective 3.3. Collaboratively work across functions to maintain open internal 

communication and address emerging requirements. 

Strategic Goal 4 - Recruit, develop, and retain a diverse, high-performing workforce.

 Strategic Objective 4.1. Exercise Commission flexibilities to attract and retain a diverse, 

high-performing workforce.
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 Strategic Objective 4.2. Maintain fair and impartial human capital management. 

 Strategic Objective 4.3. Continue to enhance the Commission’s commitment to being 

an employer of choice.

 FY 2019 Work Plan Strategies for Strategic Goals 3 and 4

o Optimize IT capabilities.

o Strengthen and modernize the records management program.

o Streamline and standardize procurement policies and processes.

o Maintain ongoing communication of priorities among commissioners and senior 

staff.

o Collaborate to develop and effectively communicate administrative guidance 

and investment priorities.

o Attract and hire qualified and diverse candidates consistent with Federal laws.

o Strengthen relationships with affinity groups to ensure diverse outreach efforts.

o Maintain the Commission’s strong commitment to equal employment 

opportunity.

o Involve employees and participants as agents of diversity, inclusion, and mutual 

respect.

o Continue refining administrative and HR analytics to inform decision-making.

FY 2019 Work Plan for Strategic Goals 3 and 4:

• Develop and maintain the Commission’s annual budget and fiscal processes based on 

administration guidance.

• Assess all IT security policies, practices, and enforcement procedures to ensure functionality 

and security of electronic communication systems such as website, dockets, LAN, webcasts, 

email, VOIP, etc. 

• Execute FY 2019 IT project plan.

• Ensure that Commission records are properly maintained in accordance with policies and 

procedures. 

• Ensure the website – both internal and external – is current, accessible, and useful to 

stakeholders.

• Continue to maintain financial controls to ensure adequate fiscal responsibility.

• Ensure equipment and facilities are sufficient, safe, and secure.

• Implement necessary technology to improve records management, including systems 

necessary to manage all electronic records.

• Enforce up-to-date IT security requirements.
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The Commission will measure success in IT management by:

• Tracking implementation of IT project plan

• Refining and updating metrics and reports to measure success of IT implementations and 

cybersecurity features

The Commission will measure success in records management by:

• Ensuring a score above 85 on NARA’s annual assessment

• Ensuring that the Commission meets its records management goals and is in compliance 

with the NARA directive deadlines

• Ensuring that the Commission is “all green” on the annual FOIA assessment

The Commission will measure success in financial management by:

• Decreasing the monthly variance of actual expenditures to the budgeted amount

• Maintaining the efficiency of resource utilization within the appropriated budget

• Tracking and implementing cost saving measures when identified, and providing the 

secretary with a comprehensive list of cost savings/avoidance achieved

The Commission will measure success in human resource management by:

• Continuing to execute the Human Capital Strategic Plan to ensure alignment of the 

workforce and work environment with the Commission’s mission

• Implementing hiring policies and procedures, including more robust tracking of targeted 

recruitment efforts to attract and select highly qualified candidates into positions required 

to achieve the mission within projected budget constraints

• Continuing to implement a performance management system that rewards outstanding 

contributions to the Commission and addresses employee development to retain high 

performing staff

• Identifying and sponsoring training and development opportunities to develop employees

• Continuing to monitor the results of the Federal Employee Viewpoint Survey and 

implementing solutions to achieve continuous improvement

• Maintaining and enforcing up-to-date human resources policies and procedures (e.g., 

compensation, benefits, Equal Employment Opportunity to ensure a fair, consistent, and 

sustainable application.
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Office of the Inspector General

The Commission's Office of the Inspector General was established in June 2007 as required by 

an amendment to the Inspector General Act of 1978 included in the PAEA. The Commission’s 

Inspector General has a dual reporting responsibility to both commissioners and Congress. 

The role of the OIG is to detect and deter fraud, waste, abuse, and mismanagement within 

Commission programs, as well as to promote efficient and effective use of Commission 

resources. To accomplish this, the OIG conducts, supervises, and coordinates independent 

audits, inspections, evaluations, and other reviews in accordance with applicable law. The OIG 

communicates the results of these assessments to commissioners, Commission management, 

Congress, other oversight entities as appropriate, and to the public. Generally, the OIG 

communicates these results in formal reports that contain findings and recommendations 

aimed at correcting any deficiencies identified and at promoting efficiency and effectiveness in 

Commission programs and operations.

The OIG maintains a hotline to allow employees and the public to anonymously report 

allegations of fraud, waste, abuse, and mismanagement.

The OIG requested $594,000 for the office’s personnel, travel, and training costs as well as the 

Commission contribution to the Council of Inspectors General on Integrity and Efficiency 

(CIGIE). The request includes amounts to satisfy the training requirements cost of $2,750 and 

anticipated CIGIE dues of $1,500.