Postal Regulatory Commission

Congressional Budget Justification

(Performance Budget Plan)

Fiscal Year 2018
1

Table of Contents

Page

Executive Summary FY 2018 2

Background 5

Commission Achievements in FY 2016 6

Budget Overview and Highlights for FY 2018 12

Budget Program Information

 Strategic Goals, Work Plans, and Performance Objectives

18

Postal Service Accountability

Strategic Goal 1: Deliver accurate and objective analyses and decisions to

 ensure transparency and accountability of the Postal Service

22

Public Access and Participation

Strategic Goal 2: Actively engage with Congress and stakeholders

24

Integration and Support

Strategic Goal 3: Optimal infrastructure to support mission

25

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

 workforce

26

Office of the Inspector General 29
2

Executive Summary FY 2018

Since Fiscal Year (FY) 2009, Congress appropriates the Postal Regulatory Commission’s 

(Commission) budget out of the off-budget Postal Service Fund, which is the permanently 

appropriated revolving fund solely comprised of the monies that the United States Postal 

Service (Postal Service) controls and raises from selling its products and services. As a result, the 

Commission’s funds come from the Postal Service’s ratepayers rather than taxpayer monies, 

and represent a tiny fraction of the Postal Service’s $71.5 billion operation.

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 Office of 

Management and Budget’s request in the context of developing the administration’s budget, 

the Commission transmits the President’s $14.4 million appropriation recommendation, $778k

less than the Commission’s request of $15.178 million.

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

Technology (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 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 

operations to Congress, stakeholders, and the general public. The Commission’s job of 

regulating the Postal Service, the nation’s second largest civilian employer facing significant 

financial challenges, could not be more significant than it is now. 

In FY 2016, the Postal Service had revenues of $71.5 billion. The Postal Service receives no 

taxpayer appropriations for its operations, which is solely funded from its delivery services and 

product sales. As the Postal Service continues to adapt its operations to the trends, including 

declining mail volume and growing expenses, the Commission continues to experience 

substantial increases in its workload. Over the last 4 years, the Commission’s docketed cases 

have increased an average of 18 percent annually, and increased by 33 percent in FY 2016.

These cases have continued to increase in complexity; particularly those related to rates, new 

products, service changes, and competition. In FY 2018 the Commission will continue its work 
3

on significant statutorily-mandated reviews, as well as an increasing number of complex cases. 

These deliverables require a professional staff with a unique set of skills to meet the dual 

demands of a growing, complicated workload and high quality standards. After accounting for 

the workforce requirements of Commissioners and their staff, and the administrative support 

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

analytical, technical, and legal work that is the core of the Commission’s regulatory 

responsibilities. 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 single case, further 

stretching resources. The administrative support staff’s workload also continues to expand due 

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

cybersecurity initiatives. 

As a result of these demands and mandates, the Commission must have the requisite staff to 

accomplish the documented growing and more complex workload. While additional staffing is 

needed, if funded in FY 2018 as requested by the Commission (at a funding level less than FY 

2017), the Commission will be able to maintain its quality work within current staffing levels, 

while continuing to achieve efficiencies in other areas and through implementation of its latest 

Strategic Plan. As highlighted previously, given that more than 77 percent of the Commission’s 

appropriation is dedicated to salary and benefits, any significant reductions beyond that 

requested will negatively affect the Commission’s ability to meet all of its statutory obligations. 

The marginal increase in funding over the past 2 years has allowed the Commission to fill 

deferred vacancies and to begin funding previously deferred IT infrastructure and cybersecurity 

initiatives. For FY 2018, the Commission has prioritized its limited resources to ensure it has the 

necessary funding for completion of the statutorily-required 10-year rate review study. Also, if 

funded as requested by the Commission, the Commission will be able to continue modernizing 

its IT systems to ensure secure, reliable systems and improved cybersecurity capabilities in 

compliance with the Federal Information Security Modernization Act (FISMA) and other 

mandates. If the Commission is funded at a level significantly below its request, these 

cybersecurity modernizations will stop. The Commission, as a result of cybersecurity 

implementations put in place in FY 2017, now incurs new annual IT service fees of over $140k

to pay for FISMA required Managed Trusted Internet Protocol Service (MTIPS), Dual-Factor 

Authentication, and other initiatives. These critical cybersecurity undertakings must be funded 

to ensure protection of the Commission’s IT systems.
4

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
5

Background

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

Government. It has exercised regulatory oversight over the Postal Service since its creation by 

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

Accountability and Enhancement Act (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 (NSA), 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 and 

policies on procurement, personnel, ethics and 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)). OSA is responsible for the Commission’s strategic 

plan, official records, budget and accounting, 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. 

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.
6

Organizational Chart

Commission Achievements in FY 2016

The Commission achieved the following significant accomplishments in FY 2016 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 published five major reports in FY 2016:

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

the Commission’s accomplishments and activities as the regulator of the U.S. 

Postal Service.

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

compliance with pricing and service standards.
7

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

Year 2015 provided an in-depth analysis of the Postal Service’s financial 

condition. 

• The Review of Postal Service FY 2015 Performance Report and FY 2016

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 assessed the operation of the PAEA and 

recommended to the President and Congress legislation and other means of 

improving the effectiveness and efficiency of our nation’s postal laws.

2. The Commission presided over the following rate and classification proceedings in FY 

2016:

 The review and approval of two proposals to adjust Market Dominant prices; 

including the approval of five temporary promotional discounts related to 

First-Class Mail and Standard Mail and the approval of six First-Class Mail and 

Standard Mail promotional discounts to be offered throughout calendar year 

2017. The Commission also corrected an anomaly within First-Class Mail 

Parcel prices as part of its review.

 The review and approval of Postal Service requests for changes in 

Competitive prices and classifications.

 The approval of the Postal Service’s removal of the exigent surcharge.

 The proposal of a standard for determining whether a mail preparation 

change has rate effects that impact the price cap. A Postal Service petition 

for reconsideration and clarification of the application of the standard is 

currently pending before the U.S. Court of Appeals for the District of 

Columbia Circuit.

 The review and approval of the Global eCommerce Marketplace (GeM) 

market test and the extension of the Customized Delivery market test.

 The approval of a Postal Service request to remove Global Direct Contracts 

from the Competitive product list.

 The approval of a Postal Service request for an extension of an existing 

market test (Metro Post).

3. The Commission considered issues related to service performance measurement and 

reporting in two dockets. The Commission:
8

 Hosted two technical conferences to discuss the Postal Service’s statistical 

design plan for internal service performance measurement

 Issued a final order enhancing the reporting requirement of service 

performance measurement data that requires the Postal Service to regularly 

provide descriptions of current methodologies used to verify accuracy, 

reliability, and representativeness of data for each measurement system

4. The Commission considered proposals to change its costing methodologies and the 

analytical principles used by the Postal Service in its periodic reporting to the 

Commission. One of these, proposed by the United Parcel Service (UPS), resulted in a 

change in cost attribution methodology. 

5. The Commission conducted several rulemakings related to rate and costing issues, 

including:

 Proposed rules for regulating mail preparation changes that affect the price 

cap.

 The consideration of 16 petitions proposing to change various accepted 

analytical principles. Proposals were submitted by UPS, the Postal Service, and 

other interested parties.

6. The Commission considered several postal price adjustments and Mail Classification 

Schedule (MCS) requests by the Postal Service for domestic and international 

Competitive products.

7. The Commission approved 281 Negotiated Service Agreements (NSAs) for Competitive 

products (186 domestic, 95 international) and over 50 amendments to existing NSAs. 

This is more than double the number of NSAs reviewed during FY 2015.

8. The Commission reviewed the Postal Service’s calculation of the assumed Federal 

income tax on Competitive products in a separate docket. 

9. The Commission initiated several public inquiry dockets to solicit comments on: the 

development of the Section 701 Report, scope of public service or activity cost 

reporting, Commission jurisdiction over Post Office Closings and Consolidations, and 

Service Performance.

10. The Commission completed three rulemakings regarding updates to its rules of practice 

and procedures. The Commission:
9

 Revised and reorganized rules concerning ex parte communications

 Considered, but did not adopt, amendments to publishing rules concerning 

the Market Dominant and Competitive product lists

 Reviewed and adopted rules to replace existing regulations governing 

product lists and the MCS

11. In other proceedings, the Commission:

 Adjudicated two post office closing appeals.

 Reviewed and dismissed a complaint alleging violations of postal regulations 

and policies by the Postal Service.

 Issued an order that resolved issues on remand related to the Exigent price 

adjustment. The Postal Service filed a petition before the Court of Appeals for 

the District of Columbia Circuit for review of the basis of the Commission’s

original decision related to the Exigent price adjustment as well as a second 

petition on the Commission’s denial of reconsideration of the “new normal” 

test. The Postal Service’s petitions were denied.

 Denied a Postal Service request to add Round-Trip Mailer to the Competitive 

product list.

 Dismissed a complaint by the American Postal Workers Union (APWU) alleging 

that the Postal Service failed to adhere to the service standards established as 

a result of the Mail Processing Network Rationalization Initiative. APWU filed 

a petition for review of the Commission’s decision before the Court of Appeals 

for the District of Columbia Circuit, which was denied.

 Dismissed a complaint concerning the sale and closure of the Atlantic Street 

station post office in Stamford, Connecticut.

 Issued an order resolving issues on remand concerning a Postal Service 

request to remove Return Receipt for Merchandise Service from the list of 

Special Services in the MCS. The Postal Service recently filed a petition for 

review of this decision before the Court of Appeals for the District of Columbia 

Circuit.

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
10

 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

 Adopted final rules describing general procedures related to the Commission’s views 

on proposals submitted for consideration at UPU Congresses that could affect a 

Market Dominant rate or classification

 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

13. In FY 2016, 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 

2016, women and minorities accounted for 61 percent and 33 percent of the workforce, 

respectively. Women also filled 50 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), which resulted in a favorable 

review in the Department of Justice’s FY 2016 Assessment of Agency Progress. The 

Commission ended the year with no backlog of FOIA requests or appeals. 

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). The records 

management team worked closely with IT to issue an update on acceptable use and 

retention of email records. Records management training was provided to all 

Commission staff to educate and inform them of their records management 
11

responsibilities. In FY 2016, the Commission developed the requirements for an 

electronic 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 in the process of 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. 

19. The Commission joined the Department of Homeland Security’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. 

20. The Commission issued a revised pay and performance policy and process to ensure fair 

and transparent pay processes. 

21. Other activities performed by the Commission include:

 The development of the Commission’s five year Strategic Plan for fiscal years 2017-

2022

 The processing of more than 5,500 inquiries, questions, suggestions and comments 

from the general public, which primarily involved undelivered, delayed, misdelivered, and missing mail

 Further website enhancements addressing ease of navigation and compliance with 

Section 508c of the Rehabilitation Act

 Testimony before the U.S. Senate Committee on Homeland Security and 

Governmental Affairs and the U.S. House Oversight and Government Reform 

Committee 
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Budget Overview and Highlights for FY 2018

While a reduction from the FY 2017 appropriation, the Commission’s request of $15.178 million

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 

Office of Management and Budget’s request in the context of developing the administration’s 

budget, the Commission transmits the President’s $14.4 million appropriation 

recommendation, $778k less than the Commission’s request of $15.178 million.

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

staffing, cybersecurity, training, lease, and statutory obligations. If funded at much lower levels, 

the Commission would all but eliminate training, table projected cybersecurity initiatives, 

reduce contracted IT services, forgo hiring to full complement, and may cause difficulty meeting 

the President’s projected budget pay increase by the full 1.9 percent. This would ultimately 

impact the Commission’s ability to meet statutory responsibilities as 77 percent of its budget is 

for salaries and benefits.

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

expenditures account for 90 percent of the annual appropriation. (See Chart 1 Overview of FY

2016 expenditures).

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 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 2018, if funded as requested by the 

Commission, the staff will be able to continue receiving much needed job specific training, 

which, prior to FY 2016, had been 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. If funded as requested by the Commission at 

$15.178 million, the Commission will continue with needed IT infrastructure upgrades, and be 

able to absorb the $140k annual cost of the on-going increased service fees and maintenance 

agreements. 

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

$15.178 million, the Commission will continue to achieve its mission. 
13

Chart 1

Overview of FY 2016 Expenditures

Personnel 

Compensation

77%

Rent

13%

Supplies & Services

5%

Other Operating 

Expenses

5%

Expenditures FY 2016

Compensation and rent account for 90 percent of Commission expenditures
14

FY 2008-2018 Enacted/Projected Budget

NOTE: In the 8th month of FY 2017, after the Continuing Resolution (CR) budget ($15.2 million) 

was produced, Congress passed the Consolidated Appropriation Act, 2017, providing an 

additional $1.0 million for the Commission bringing the total FY 2017 appropriation to $16.2 

million.

 -

 2,000

 4,000

 6,000

 8,000

 10,000

 12,000

 14,000

 16,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Enacted Budget (000)

President's Recommendation

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

Enacted 

Budget 

(000)

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

President’s

Request 

(000)

$14,400
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Commission’s Statutory Responsibilities Increase

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

critical reviews mandated by law. In FY 2018, the Commission will finalize:

1. A 5-year review of the PAEA and recommendations for improvement.

2. 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.

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

of significant import to the commercial marketplace.

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 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 also 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 would in turn be required to adjudicate several

highly complex cases related to these changes. Additionally, the Postal Service will propose 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.
16

The Commission anticipates many new challenges as the Postal Service and interested 

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

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 2016 Program Performance Report and FY 2017 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 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 FYs 2016 and 2017 toward hardening our systems 

and increasing our monitoring capabilities. In FY 2018, 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, 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 developing a modernized digital infrastructure, with 

emphasis in FY 2018 on records management and website updates. The Commission will 

finalize the implementation of an electronic records management system, including email and 
17

document control. This system provides compliance with OMB/NARA Records Management 

directives, and improves the safeguards and security of our records. The Commission also 

intends to implement an electronic timekeeping system, to move from an outdated, paperbased system. The Commission also intends to enhance our website to ensure compliance with 

Section 508 of the Rehabilitation Act, as well as conduct network 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 2018, the Commission will continue to work 

with GSA on the transition activities to make certain that the Commission has a compliant and 

up-to-date telecommunication infrastructure. All of these enhancements and upgrades would

be suspended if the enacted budget is a significant reduction below the Commission requested 

level.

The following chart details the various IT projects that the Commission intends to implement, 

along with their estimated costs.

IT Phase II Project Plan

FY 2018 Project List Budget Amount 

Modernization of Thin Clients (refresh), New Network Storage (replacement) and 

conference/hearing room (repairs and upgrades) $ 130,000

Website enhancements, including 508c testing $ 20,000

Purchase and implement automated system for timekeeping $ 50,000

EIS transition planning $ 25,000

Help desk ticketing solution $ 10,000

System Testing (phishing and penetration testing) $ 25,000

Total $ 260,000

1. Indirect cost from service level agreements and maintenance contracts from the 

implementation of Phase 1 is not included in the list above and the annual cost is 

$143K

2. This estimate does not include IT contract support and its annual cost is $150K

NOTE:

*If funded less than requested by the Commission, these items may be suspended 

or delayed until funding becomes available in future years

PHASE II of IT Project Plan
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Budget Program Information

The Commission’s FY 2018 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.

A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this account is operating under the further Continuing 

Appropriations Act, 2017 (P.L. 144-254). The amounts included for 2017 reflect the annualized 

level provided by the continuing resolution.

In the 8th month of FY 2017, after the Continuing Resolution (CR) budget ($15.2 million) was 

produced, Congress passed the Consolidated Appropriation Act, 2017, providing an additional 

$1.0 million for the Commission bringing the total FY 2017 appropriation to $16.2 million. 

$000 FTE $000 FTE $000 FTE

Postal Service 

Accountability 7,100 46 7,100 47 7,000 47

Public Access and 

Participation 1,000 13 1,000 13 1,000 13

Integration and 

Support 6,100 15 6,100 17 5,400 17

Office of the 

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

Total 15,200 77 15,200 80 14,400 80

Program

FY 2016 FY 2017 

FY 2018 President's 

Recommendation 
19

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), $ 1 4 , 4 0 0 , 0 0 0 * ,

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.” However, to accommodate the Office of Management and Budget’s request in 

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

$14,400,000 appropriation recommendation, $778,000 less than the Commission’s request of 

$15,178,000.
20

Obligation by Object Classification

A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this account is operating under the further 

Continuing Appropriations Act, 2017 (P.L. 144-254). The amounts included for 2017 reflect the 

annualized level provided by the continuing resolution. 

Personnel Compensation 10,723 12,248 12,248

Other Personnel Compensation 123 170 0

Subtotal 10,846 12,418 12,248

Supplies 13 30 12

Office Furniture and Equipment 12 8 0

Office Equipment Rental and Repair 24 15 0

Contractual Services 221 180 50

Consulting Services 463 225 0

Advertising 0 8 0

BLDG Repairs & Alterations 5 30 0

Subtotal 738 496 62

Travel 54 24 0

Training 45 40 0

Printing and Reproduction 132 80 0

Rent 1,752 1,795 1,980

Miscellaneous, Subscriptions 17 2 0

Communications 151 170 90

Information Technology 333 175 20

Subtotal 2,484 2,286 2,090

Total Obligations 14,068 15,200 14,400

Object Classification FY 2016 FY 2017 (CR)

FY 2018 

President's 

Recommendation
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After the budget was produced, Congress passed the Consolidated Appropriation Act, 2017,

and provided an additional $1.0 million to the Commission bringing the total FY 2017 

appropriation to $16.2 million. The FY 2017 obligation by object class reflecting this additional 

funding is depicted below.

Object Classification FY 2017 

(Actual) 

Personnel Compensation 

12,248 

Other Personnel Compensation 

170 

Subtotal 12,418

Supplies 

41 

Office Furniture and Equipment 

8 

Office Equipment Rental and Repair 

15 

Contractual Services 

249 

Consulting Services 

986 

Advertising 

8 

BLDG Repairs & Alterations 

30 

Subtotal 1,337

Travel 

24 

Training 

54 

Printing and Reproduction 

90 

Rent 

1,848 

Miscellaneous, Subscriptions 

2 

Communications 

170 

Information Technology 

257 

Subtotal 2,445

Total Obligations 16,200
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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 2018 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 2018 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 
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services. Issue special reports on Commission evaluation of potential policy and systemic 

changes.

 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 finding 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 2018 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 2018 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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 Develop procedures and resources for handling an expanding numbers of appeals and 

complaint cases, such as from post office closings.

 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.

The Commission will measure success by the quality and timeliness of public representative 

filings.

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. 
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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.

 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 2018 Work Plan Strategies

o Optimize IT capabilities.

o Strengthen and modernize the records management program.

o Conduct cost-benefit analysis of options for providing support services.

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 Ensure that each action plan appropriately identifies how they will work with 

other departments.

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 a Human Capital Strategic Plan.

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 Institutionalize succession planning to include training, workforce forecasting,

and knowledge transfer.

o Develop HR analytics to inform decision-making.
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FY 2018 Work Plan:

 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 2018 IT project plan.

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

procedures. 

 Continue to improve the records management program at the Commission. Review and 

modify, as necessary, records schedules and policies to meet records management 

directives and to simplify Commission workflow processes.

 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.

The Commission will measure success in IT management by:

 Tracking implementation of IT project plan

 Developing updated metrics and reports to measure success of new implementations and 

cybersecurity features

The Commission will measure success in records and FOIA 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

 Ensuring that the Commission completes all required reports and FOIA requests accurately 

and in a timely manner

The Commission will measure success in improving financial management by:

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

 Maintaining the efficiency of resource utilization within the appropriated budget
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 Tracking and implementing cost savings measures when identified, and providing the 

secretary with a comprehensive list of cost savings/avoidance achieved

 Continuing to update the Human Capital Strategic Plan, including a succession plan, as 

needed, 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, 

targeting leadership development of managers and supervisors

 Continuing to monitor the results of the Federal Employee Viewpoint Survey (FEVS), 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 (EEO) to ensure a fair, consistent,

and sustainable application

The Commission will measure success by: 

 Conducting semi-annual pay analysis and annual demographic analysis

 Continuing the systematic review of human resource policies and update to ensure 

alignment with best practices and current regulations 

 Ensuring positions are aligned with the Commission’s mission by updating position 

descriptions as needed

 Using the FEVS results to measure leadership effectiveness as compared to the FY 2017

baseline

 Tracking the targeted recruitment efforts by sending vacancy notices to diversity and 

affinity groups, as well as colleges and universities, to improve the applicant pool for any 

open positions 

 Ensuring that FEVS Action Plan timelines are met

 Ensuring all goals in the Commission’s OSHA plan are met
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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 IG requested $594k 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.