[Federal Register Volume 72, Number 200 (Wednesday, October 17, 2007)]
[Proposed Rules]
[Pages 58946-58970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-5065]



[[Page 58945]]

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Part II





Postal Service





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39 CFR Parts 121 and 122



Modern Service Standards for Market-Dominant Products; Proposed Rule

Federal Register / Vol. 72, No. 200 / Wednesday, October 17, 2007 / 
Proposed Rules

[[Page 58946]]


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POSTAL SERVICE

39 CFR Parts 121 and 122


Modern Service Standards for Market-Dominant Products

AGENCY: Postal Service.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes modern service standards for its 
market-dominant products. Section 301 of the Postal Accountability and 
Enhancement Act (PAEA) (codified at 39 U.S.C. 3691) requires the Postal 
Service, in consultation with the Postal Regulatory Commission (PRC), 
to establish by regulation a set of modern service standards for 
market-dominant products, no later than December 20, 2007.

DATES: Comments must be received on or before November 16, 2007.

ADDRESSES: Mail written comments to Modern Service Standards for 
Market-Dominant Products Comments, Post Office Box 23280, Washington, 
DC 20026-3280. You may inspect and photocopy copies of all written 
comments between 9 a.m. and 4 p.m., Monday through Friday at the Postal 
Service headquarters library, 11th Floor North, 475 L'Enfant Plaza, 
SW., Washington, DC 20260-1540.

FOR FURTHER INFORMATION CONTACT: Wanda Ayala 202-268-5380.

SUPPLEMENTARY INFORMATION: After stating the requirements of the law, 
the remainder of this notice is divided into five sections. Section 1 
recites the objectives that the Postal Service must satisfy and the 
factors that it must consider in establishing modern service standards, 
as mandated by the PAEA. The second section summarizes the customer 
outreach performed to ascertain customers' expectations regarding 
modern service standards, and describes the Postal Service's 
consultations with the PRC. The third section describes the Postal 
Service's proposed modern market-dominant mail product service 
standards. Section 4 describes how the proposed standards reflect 
consideration of the objectives and factors listed in the law. The 
final section gives notice of the specific service standard regulations 
the Postal Service is proposing to adopt and solicits public comment.

Requirements of the Postal Accountability and Enhancement Act

    Section 301 of the Postal Accountability and Enhancement Act 
(codified at 39 U.S.C. 3691) requires the Postal Service, in 
consultation with the Postal Regulatory Commission, to establish a set 
of modern service standards for market-dominant products no later than 
December 20, 2007. Ordinarily, the Postal Service is required to 
request an advisory opinion from the Commission regarding proposed 
changes in service standards of at least a substantially nationwide 
nature under the terms of 39 U.S.C. 3661. However, section 3691(a) sets 
forth an alternative process for the required establishment of baseline 
modern service standards by December 20, 2007, stating that the Postal 
Service is to consult with the Commission.\1\
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    \1\ Section 3691(a) explicitly acknowledges that the Postal 
Service may, from time to time, by regulation revise the modern 
service standards for market-dominant products established though 
this consultative process. Therefore, the service standards that 
ultimately emerge at the conclusion of this notice-and-comment 
rulemaking should be regarded as establishing a baseline for any 
subsequent service changes. The Postal Service recognizes that any 
such subsequent proposals for service changes that are substantially 
nationwide in scope could be subject to the requirement that they be 
submitted to the Postal Regulatory Commission for review in the form 
of a request for an advisory opinion under the terms of 39 U.S.C. 
3661.
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    Section 3691(b)(1) directs the Postal Service to design modern 
service standards to achieve the following objectives:
    (A) To enhance the value of postal services to both senders and 
recipients.
    (B) To preserve regular and effective access to postal services in 
all communities, including those in rural areas or where Post Offices 
are not self-sustaining.
    (C) To reasonably assure Postal Service customers delivery 
reliability, speed, and frequency consistent with reasonable rates and 
best business practices.
    (D) To provide a system of objective external performance 
measurements for each market-dominant product as a basis for 
measurement of Postal Service performance. However, with the approval 
of the Commission, an internal measurement system may be implemented 
instead of an external measurement system.
    See 120 Stat. 3218. Subsection 3691(c) directs the Postal Service 
to take the following factors into account in establishing these 
standards:
    (1) The actual level of service that Postal Service customers 
receive under any service guidelines previously established by the 
Postal Service.
    (2) The degree of customer satisfaction with Postal Service 
performance in the acceptance, processing, and delivery of mail.
    (3) The needs of Postal Service customers, including those with 
physical impairments.
    (4) Mail volume and revenues projected for future years.
    (5) The projected growth in the number of addresses the Postal 
Service will be required to serve in future years.
    (6) The current and projected cost of serving Postal Service 
customers.
    (7) The effect of changes in technology, demographics, and 
population distribution on the efficient and reliable operation of the 
postal delivery system.
    (8) The policies of [Title 39, United States Code, as amended by 
the PAEA] and such other factors as the Postal Service determines 
appropriate.

120 Stat. 3218-19.

Section 1: General Background Information on Service Standards

    According to 39 U.S.C. 3621(a), as amended by the PAEA (120 Stat. 
3200), the market-dominant products for which section 3691(a) requires 
the establishment of modern service standards in consultation with the 
Commission include the following domestic services: First-Class 
Mail[supreg] Letters and Sealed Parcels, First-Class Mail Cards, 
Periodicals, Standard Mail<SUP>TM</SUP>, Single-Piece Parcel 
Post[supreg], Media Mail, Bound Printed Matter, Library Mail, and 
Special Services.\2\ Section 3621(a) also designates Single-Piece 
International Mail as a market-dominant product. The Postal Service 
proposes that outbound Single-Piece First-Class Mail International be 
included within the market dominant category.\3\
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    \2\ Single-Piece Parcel Post, Media Mail, Bound Printed Matter, 
and Library Mail are separate products under the terms of section 
3621(a). The service standards for these products, historically, 
have been the same. For as long as that remains the case, and for 
purposes of this notice and the regulations proposed herein, these 
products are collectively referred to as Package Services Mail.
    \3\ Docket No. RM2007-1, United States Postal Service Submission 
of Initial Mail Classification Schedule in Response to Order No. 26, 
at 22 (September 24, 2007). The Postal Service also proposed that, 
for a variety of reasons, inbound International Mail should be 
treated on an exceptional basis and not ``classified'' within the 
Mail Classification Schedule. Docket No. RM2007-1, Initial Comments 
of the United States Postal Service in Response to Order No. 26, at 
13-24 (September 24, 2007). Accordingly, the Postal Service is not 
proposing service standards for inbound International Mail.
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    The Postal Service defines service standards as ``[a] stated goal 
for service achievement for each mail class.'' Publication 32, Glossary 
of Postal Terms, (May 1997, as updated with revisions through July 
2007). This definition forms the basis for Postal Service statements 
and postal customers' expectations concerning the number of days that 
it should take for the Postal Service to deliver a mailpiece

[[Page 58947]]

from its point of entry in the mailstream to its destination.
    The service standard for a mail product consists of two related 
elements: the day range and the business rules. The ``day range'' is 
the range of days within which all mail of a particular product type is 
expected to be delivered. For example, the current First-Class Mail 
service standard is often described as ranging ``from one to three 
days'' after acceptance. As implemented by the Postal Service, 
``business rules'' determine the precise delivery day within the range 
that applies to a specific origin-destination pair within the postal 
mail processing network.
    Presently, the domestic postal mail processing network includes all 
50 states and the territories of Guam, Puerto Rico and the U.S. Virgin 
Islands. These states and territories are divided into service areas, 
and each service area is represented by a unique 3-digit ZIP 
Code[supreg] prefix. Currently, the postal network is divided into 915 
originating 3-digit ZIP Code areas and 930 destinating 3-digit ZIP Code 
areas.\4\
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    \4\ The 930 destinating service areas include the 3-digit ZIP 
Code prefixes assigned to domestic Army/Fleet Post Office (APO/FPO) 
gateway processing facilities through which mail originating from or 
destinating at United States overseas military installations enters 
and exits the Postal Service network.
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    As a consequence, there currently are a total of approximately 
851,000 3-digit ZIP Code origin-destination pair combinations in the 
Postal Service network. The different business rules for each mail 
product determine which of these origin-destination pairs are 
overnight, 2-day, 3-day, etc., for each product. As a result, for 
example, a 3-digit ZIP Code origin-destination pair with a 3-day First-
Class Mail service standard can have an 8-day delivery expectation for 
Standard Mail.\5\
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    \5\ Each 3-digit ZIP Code service area is further divided into 
5-digit ZIP Code areas that are served by particular Post Offices. 
Each 5-digit zone is further subdivided into sectors and segments 
that are represented by the 4-digit suffixes that are elements of 
the ZIP+4 Codes to which each of the over 145 million domestic 
delivery points served by the United States Postal Service postal 
network are assigned. Irrespective of the 5-digit or 
ZIP+4<SUP>TM</SUP> Codes assigned to particular addresses, service 
standards generally are established on the basis of 3-digit ZIP Code 
prefixes, and apply to post offices and addresses in a given 3-digit 
ZIP Code area.
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    For purposes of counting delivery days, the day of entry is ``day-
zero,'' if the mailpiece is accepted by the Postal Service before the 
posted ``critical entry time'' (CET) \6\ for that day. Assume, for 
example, that the application of the current First-Class Mail business 
rules results in a 2-day standard from a particular origin to a 
particular destination. Then, a piece of First-Class Mail deposited in 
a collection box before the last pickup time posted on the collection 
box at origin on a Monday is expected to be delivered at the 
destination the following Wednesday, provided that Wednesday is not a 
holiday.
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    \6\ For a definition of Critical Entry Time, see Section 3.
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    Currently, the service standard business rules for each domestic 
mail product (First-Class Mail, Periodicals, Standard Mail, and 
Packages Services) vary on the basis of applicable statutory postal 
policies and such factors as:
    <bullet> The distance from the center of the origin mail processing 
facility s service area, as measured in great circle miles.
    <bullet> The relative degree of expedition or deferability 
intrinsic to the mail product in question.
    <bullet> Whether the mail product is subject only to surface, or 
both surface and air transportation.
    <bullet> The availability, speed, and relative reliability of 
available modes of transportation between specific nodes in the Postal 
Service network.
    <bullet> Whether an objectively determined significant business 
relationship'' exists between a particular 3-digit ZIP Code origin-
destination pair.
    All mail designated by the same product name (e.g., First-Class 
Mail, Periodicals, Standard Mail, or Package Services) receives the 
same particular service standard day to a given 3-digit ZIP Code 
origin-destination pair, irrespective of mailpiece shape or level of 
mailer presortation. Thus, within Standard Mail, the senders of cards 
and parcels currently expect to receive the same level of service that 
is provided to Standard Mail flats entered at the same origin and 
delivered to the same destination.

Section 2: Customer Outreach and Consultations With the Postal 
Regulatory Commission

    The law requires that the Postal Service take customer 
satisfaction, the needs of customers, and the actual level of service 
that customers receive into account in the establishment of modern 
service standards. The law also requires the Postal Service to develop 
service standards in consultation with the PRC.
    Customer satisfaction, needs, and service have always been 
important to the Postal Service. Therefore, the Postal Service was able 
to use a combination of long-established methods, as well as efforts 
undertaken specifically because of the enactment of the PAEA, to reach 
out to customers. Methods included consultations with the Mailers' 
Technical Advisory Committee (MTAC), review of the Postal Service's 
Customer Satisfaction Measurement--Residential/Business surveys (CSM), 
and the administration of a separate consumer and small business 
survey. Postal Service representatives also met with and solicited 
comments from mailers at the National Postal Forum, from postal unions 
and management associations, and from attendees at the Postal Service/
Postal Regulatory Commission Summit on Meeting Customer Needs in a 
Changing Regulatory Environment. Additionally, the Postal Service 
reviewed the comments received by the Commission at its three public 
hearings (Kansas City, Missouri; Los Angeles, California; and 
Wilmington, Delaware) and in PRC Docket PI2007-1, Service Standards and 
Performance Measurement For Market-Dominant Products.
    The main themes that emerged from this outreach were that customers 
want standards that are reliable, consistent, realistic, and 
attainable, and that any proposed changes reflect sensitivity to the 
impact of increased postal costs on rates that they pay. The proposed 
service standards, described in Section 3, seek to meet these goals by 
aligning standards with today's operational and logistical realities, 
while continuing to differentiate among distinct products and minimize 
any adverse impact on postal costs.
    Each of the outreach methods is explained in greater detail below.
    1. MTAC. The Postmaster General's Mailers' Technical Advisory 
Committee (MTAC) is a venue for the Postal Service to share technical 
information with and to receive advice and recommendations from, 
mailers on matters concerning mail-related products and services. 
Membership in MTAC is comprised of mailer associations and other 
associations/organizations related to the mailing industry. The member 
associations/organizations reflect the mailing community in terms of 
classes and categories of mail used and include both large and small 
volume mailers and organizations with significant or unique mailing 
needs. MTAC has been in existence since 1965.
    In early February 2007, a special MTAC workgroup was formed to 
concentrate specifically on service standards and the requirements of 
the PAEA. The main workgroup consisted of nearly 200 participants, 
including representatives from the Postal Service, mail users, mail 
service providers, and observers from the PRC and the General 
Accountability Office. This workgroup subdivided into four subgroups, 
which focused on First-Class Mail, Periodicals, Standard Mail, and 
Package Services, respectively.

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    2. Customer Satisfaction Measurement (CSM)--Residential/Business. 
For over a decade, the Postal Service has been conducting surveys to 
provide ongoing assessments of customer experiences with Postal Service 
products and services, to provide rating and diagnostic results for 
important customer issues, to identify opportunities for improvement, 
to promote positive change by linking management actions with customer 
satisfaction, and to provide operational and process-related 
information to the Postal Service. Residential measurement began in 
1991, and business measurement was added in 1994. Surveys are 
redesigned every two or three years, with the survey and analysis 
conducted independently by The Gallup Organization and IBM Global 
Business Services, respectively.
    For residential customers, the Postal Service surveys, on a 
continuous basis, randomly selected households across the United 
States. Customers have the option of completing the survey online or in 
hard copy. Currently, the Postal Service receives completed survey 
questionnaires from about 250,000 households per quarter. Responses 
provide direct feedback from customers on their experiences when they 
visit a post office, when they send and receive mail, and when they 
contact the Postal Service for information or to report a problem. When 
responding, customers are asked to reflect on the service they have 
received in the past 30 days. Specific to service standards and 
performance, residential customers rate the Postal Service on: time for 
local letters to be delivered, time for nonlocal letters to be 
delivered, overall Postal Service performance, and comparison to other 
delivery service companies.
    For business customers, the Postal Service conducts two types of 
surveys. One survey is mailed on an ongoing basis to randomly selected 
medium- and small-size business customers who have the option of 
responding online or by mail. Approximately 100,000 survey responses 
are received quarterly from these customers. The Postal Service also 
surveys its larger business customers via telephone or through an 
online response option to assess satisfaction with Postal Service 
products and services. Like residential customers, business customers 
are asked about their experiences with sending and receiving mail, but 
questions are tailored by segment to address the way these customers 
typically interact with the Postal Service. With regard to service 
standards and performance, business customers are asked more 
specifically, by type of mail, about their ratings of service.
    In addition to its ongoing CSM survey process, the Postal Service 
has periodically conducted one-time surveys to determine customer 
expectations of service. Such surveys have been conducted in 2001, 
2006, and 2007. The 2007 survey asked residential customers, and small 
to medium-size business customers, for their opinions on overall Postal 
Service performance, and about their expectations regarding delivery 
(both in their local delivery area and outside their local delivery 
area) for First-Class Mail, Parcel Post, Periodicals (monthly and 
weekly magazines and national, out-of-town, and local newspapers 
delivered by mail), advertising mail and flyers, Library Rate Mail, 
Media Mail, and Bound Printed Matter. Survey responses were received 
from approximately 6500 residential and 2500 business customers who had 
recently responded to the Postal Services CSM survey, and then opted to 
participate in additional Postal Service research by providing an e-
mail address.
    3. National Postal Forum Survey. The National Postal Forum was held 
on March 25-28, 2007, in Washington, DC. The forum is an annual 
conference that serves as an educational venue, trade show, and 
networking event for mailing industry professionals. At this forum, the 
Postal Service distributed a survey to a group of attendees. The survey 
asked respondents how closely they pay attention to service standards 
when planning mailings and what they thought the Postal Service should 
consider when re-evaluating its service standards.
    4. Briefings to Labor Unions and Management Associations. On July 
17, 2007, representatives from the Postal Service held a briefing on 
service standards to which representatives from all of its labor unions 
and management associations were invited. Issues discussed included 
service standard elements of the Postal Accountability and Enhancement 
Act and the implications for the Postal Service; the current service 
standards and the rules to create them; revenue protection; and, how to 
approach modernization.
    5. PRC Docket No. PI2007-1. On June 13, 2007, the PRC established 
Docket No. PI2007-1, to obtain a broad spectrum of public opinion on 
service standards and service performance measurement issues. The 
Postal Service reviewed the comments received in this docket as it 
developed the proposed modern service standards reflected in this 
notice.
    6. PRC Field Hearings. On June 12, 2007, the Commission announced 
that it would hold three public hearings as part of its development of 
regulations for a modern postal ratemaking system. The Commission 
invited different segments of the mailing community to testify at three 
public hearings on their vision for a new ratemaking system and their 
views on delivery service standards. These hearings were held in Kansas 
City, Missouri (June 22, 2007); Los Angeles, California (June 28, 
2007); and Wilmington, Delaware (July 9, 2007). The Postal Service 
reviewed the comments made on delivery service standards and took them 
into account in developing its proposed modern service standards.
    7. Postal Service/Postal Regulatory Commission Summit Meeting on 
Meeting Customer Needs in a Changing Regulatory Environment. On March 
13, 2007, the Postal Service and the Commission met with mailers and 
other stakeholders to discuss various aspects of the recently enacted 
PAEA. Approximately three hundred people attended the summit. The 
summit included panel discussions on customer needs related to market-
dominant and competitive products and services the PRC-USPS-designed 
regulatory framework, and service standards and measurements.
    Beginning in March 2007, the Postal Service initiated a series of 
regular informational briefings with the Postal Regulatory 
Commissioners and their technical staff to address service standard 
issues on an informal basis. Members of the Postal Service Executive 
Committee met with Commissioners and PRC staff monthly, beginning in 
May 2007, to discuss preliminary work performed by the Postal Service 
in developing modern service standards, measurement systems, methods 
for reporting data, and customer outreach. In September 2007, the 
Postal Service initiated formal consultations with the Commission for 
the purpose of developing modern service standard proposals for each 
market-dominant product. The consultations regarding service standards, 
which were concluded in October 2007, were very constructive. The 
Postal Service and the Commission found common ground on many issues 
and the Postal Service was able to incorporate valuable suggestions 
offered by the Commission. Equally productive meetings with the 
Commission regarding the development of external and/or internal 
service performance measurement systems under the terms of section 
3691(b)(2) are ongoing.

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Section 3: Proposed Modern Service Standards

    The Postal Service began the development of service standards for 
market-dominant products by examining the existing standards applicable 
to the matrix of nearly 851,000 origin-destination 3-digit ZIP Code 
pairs in the Postal Service network for each mail product. For First-
Class Mail, Periodicals, Standard Mail, Package Services, and Outbound 
Single-Piece First-Class Mail International, the delivery service day 
ranges were reviewed, along with the business rules that determine the 
precise number of delivery days for each 3-digit ZIP Code origin-
destination pair.
    As it reviewed the survey data and other information regarding 
customer preferences described above in Section 2, the Postal Service 
performed extensive computer modeling to determine how best to match 
its current mail processing and transportation network capabilities 
with customer expectations. An internal cross-functional team was 
organized to define and map standardized mail processing and 
transportation flows for all market-dominant mail products. The 
resulting flows were benchmarked against existing network capabilities 
by utilizing internal mail processing and transportation data systems 
to ensure accuracy. Computer programs were then written to calculate 
the resulting days-to-deliver for all of the approximately 851,000 3-
digit ZIP Code origin-destination pairs, separately for each product: 
First-Class Mail, Periodicals, Standard Mail, and Package Services. 
Numerous iterations of the model were run to test different service 
standard day ranges and business rules, and the various alternative 
outputs were carefully analyzed. As refined potential outcomes were 
developed, they became the subject of consultations with the 
Commission.
    The creation of new business rules was a key step in the 
modernization of service standards. Business rules define how the mail 
should move through the network and include precise facility-to-
facility highway transportation distance measurements. For example, the 
business rules for surface products, such as Periodicals, Standard 
Mail, and Package Services, allow for shared product transportation, 
which will keep transportation costs down. Where appropriate, the 
business rules also recognize the deferability of Standard Mail. The 
proposed service standards maintain the policy of requiring the same 
service level for each mail class, irrespective of mailpiece shape. 
And, for the first time, the standards reflect consideration of the 
logistical challenges associated with providing service to, from, and 
within the states of Alaska and Hawaii, as well as the territories of 
Guam, Puerto Rico, and the United States Virgin Islands.
    For special services products, each service was examined to 
determine which services logically could have standards. Then, 
standards for those services were proposed. As discussed further below, 
for certain special services, the establishment of a universal service 
standard would be unnecessary, redundant, or infeasible.
    Subsection A, below, highlights some of the key features of the 
proposed modern service standards for market-dominant mail products. 
Subsection B describes the modern service standards proposed for 
domestic special services. In some instances, the business rules for 
the proposed modern service standards refer to certain postal 
terminology and types of postal mail processing facilities. For 
purposes of clarification, the following brief definitions and 
descriptions are provided:
    An Area Distribution Center (ADC) is a mechanized or automated 
Postal Service mail processing facility that receives and distributes 
mail destined for specific 3-digit ZIP Codes within its service area 
under a managed mail program. The program identifies, on first 
handling, First-Class Mail that cannot make next-day delivery owing to 
destination distance and eliminates a secondary sorting for this mail, 
so that it can be airlifted to the destination plant for processing 
during non-rush hours the next day.
    An Automated Area Distribution Center (AADC) is a Postal Service 
mail distribution center that uses multiline optical character readers, 
barcode sorters, and other equipment designed for processing 
automation-compatible mail.
    A Bulk Mail Center (BMC) is a highly mechanized Postal Service mail 
processing plant that distributes Package Services mail in piece and 
bulk form, as well as Standard Mail parcels, and Standard Mail letters 
and flats in bulk form. An Auxiliary Service Facility (ASF) is a 
mechanized facility, usually part of a general mail facility, that has 
its own service area and serves as a satellite processing hub for a 
particular BMC.
    A Critical Entry Time (CET) is the latest time a particular type of 
mail can be accepted by the Postal Service in order for it to undergo 
the processing and/or dispatch to downstream operations necessary for 
delivery within the service standard for that mail.
    A Destination Delivery Unit (DDU) is the downstream Postal Service 
facility at which mail is dispatched to carriers for delivery on their 
routes or at which it is sorted to a Post Office box.
    Destination entry refers to the qualified drop-shipment of bulk 
quantities of mail at a designated postal facility, either a 
Destination Bulk Mail Center (DBMC), Destination Area Distribution 
Center (DADC), Destination Sectional Center Facility (SCF), or 
Destination Delivery Unit (DDU).
    An International Service Center (ISC) is a Postal Service mail 
processing facility that, among other things, distributes and 
dispatches outbound International Mail originating from designated 3-
digit ZIP Code areas in the United States or its territories. A 
functionally equivalent International Mail Processing Unit (IMPU) may 
be established to serve a smaller range of origin 3-digit ZIP Code 
areas.
    The Periodicals Origin Split and First-Class Mail Mixed ADC/AADC 
DMM Label List (L201) is a 3-digit origin sortation scheme utilized by 
Postal Service mail processing plants and referenced in the Mailing 
Standards of the United States Postal Service, Domestic Mail Manual. 
Periodicals mailers use the scheme to create ``origin'' mixed ADC 
bundles, sacks, and tubs of mail. Mixed ADC volume is separated into 
two groups. Pieces and bundles destinating within the 3-digit ZIP Code 
ranges (surface destinations for First-Class Mail) listed in L201 for 
the origin mail processing plant serving the customer's mailing 
location are presorted separately, and can then be combined and 
processed with First-Class Mail at the origin plant. This allows 
economies of scale to be realized in mail processing, thereby both 
maintaining and increasing Postal Service network efficiency.
    A Sectional Center Facility (SCF) is a Postal Service facility that 
serves as the processing and distribution center/facility (P&DC/F) for 
Post Offices in a designated geographic area, as defined by the first 
three digits of the ZIP Codes of those offices. Some SCFs serve 
multiple 3-digit ZIP Code areas. SCF turnaround mail has its 
originating and destinating processing occur at the same Sectional 
Center Facility

A. Service Standards for First-Class Mail, Periodicals, Standard Mail, 
Package Services, and Single-Piece First-Class Mail International

    Current mail product service standards were originally designed to 
reflect a general end-to-end mailflow through the Postal Service 
network. However, the proliferation of

[[Page 58950]]

destination entry rate discounts in Standard Mail, Periodicals, and 
Package Services has provided incentives for significant mailer 
presortation and containerized entry deeper into the network. Today, 
approximately 75 percent of all Standard Mail and 70 percent of all 
Periodicals Mail enters the Postal Service network as destination entry 
mail, bypassing significant portions of the postal processing and 
transportation network. Over time, the network has adjusted to 
accommodate the many methods of mailer worksharing and the varying 
degrees of destination entry. Both the Postal Service and Postal 
Service customers realize that modern service standards need to reflect 
destination entry, as well as end-to-end mail flows.
    To develop modern service standards, the Postal Service began by 
examining data generated by the External First-Class (EXFC) measurement 
system for single-piece First-Class Mail, by the International Mail 
Measurement System for outbound Single-Piece First-Class Mail 
International, and by its Product Tracking System for Single-Piece 
Parcel Post, Media Mail, Bound Printed Matter, and Library Mail. In the 
absence of systems for the measurement of commercial First-Class Mail, 
Periodicals, and Standard Mail service performance, the Postal Service 
examined internal diagnostic data, as well as similar data provided by 
specific mailers in relation to delivery performance they have 
experienced. Such data are useful as potential indicators of service 
performance and in evaluating Postal Service network capability. In 
addition, the Postal Service designed an internal test which covered 
over 300,000 random pieces of live First-Class Mail, Periodicals, and 
Standard Mail, with different preparation levels, to track how mail 
flows through its network, and to help identify potential operational 
and logistical barriers to the provision of reliable and consistent 
service.
    Service standards and the underlying business rules are now being 
adjusted to give appropriate consideration to contemporary mail 
processing network capabilities and mail entry practices. Business 
rules for the end-to-end product flow have been developed to accurately 
depict the need to consolidate and share both processing and 
transportation resources in order to keep the Postal Service network 
efficient and cost effective. For mail products with destination entry 
rate discounts, the Postal Service is proposing a new destination entry 
service standard dimension to its current origin-destination 3-digit 
ZIP Code matrices. Destination entry service standards have been 
integrated with end-to-end service standards. This results in more 
realistic and accurate delivery expectations for all categories of 
mailers.
    For mail that both originates and destinates within the contiguous 
48 states, no changes are proposed in the 1- to 3-day service standard 
range for First-Class Mail or the 3- to 10-day range for Standard Mail. 
The outer limit of the Periodicals service standard range has been 
expanded by 2 days, from 7 to 9 days. This expansion more realistically 
reflects network capabilities, allows for efficient and economical 
transportation routing, and will provide customers with more reliable 
and consistent service. The outer limit of the service standard day 
range for Package Services is narrowed by 1 day, from 9 to 8 days, for 
the same reasons. These day ranges are summarized in the table below.
[GRAPHIC] [TIFF OMITTED] TP17OC07.000

    *The table above reflects service standard day ranges for the 48 
contiguous states. See the table below for the proposed end-to-end 
service standard day ranges for the states of Alaska and Hawaii, and 
the territories of Guam, Puerto Rico, and the U.S. Virgin Islands.

[[Page 58951]]

[GRAPHIC] [TIFF OMITTED] TP17OC07.001

    The service standards for mail to and from addresses in the states 
of Alaska and Hawaii and the territories of Guam, Puerto Rico, and the 
U.S. Virgin Islands have been designed using the same mail processing 
concepts. However, transporting mail to and from (and sometimes within) 
these locations presents significant challenges, many of which the 
Postal Service cannot control. For mail products that rely exclusively 
on interstate or interterritorial surface transportation, for example, 
the proposed service standard day ranges reflect transportation 
availability and the number of days that it is expected for a ship to 
travel from port to port between origin and destination. The extended 
day ranges reflect the limited availability of economical surface 
transportation options and the logistical challenges present.
    The modern service standard day ranges for mail to and/or from 
these states and territories is depicted above. The lower end of the 
day range illustrates the service expectation for local mail, while the 
higher end of the day range represents the expectation for mail 
traveling between the most extreme origin-destination pairs, for 
example: between Alaska and the U.S. Virgin Islands (USVI), between 
Puerto Rico and Hawaii, or between Guam and all points other than 
Hawaii. Additional transportation time is allotted on a case-by-case 
basis to reflect the logistics required to serve these areas.
    In addition to the end-to-end service standards, a separate matrix 
has been developed to depict the service standards for those market-
dominant mail products that include destination entry mail: 
Periodicals, Standard Mail, and Package Services. For the contiguous 48 
states, these destination entry standards are summarized in the table 
below.

[[Page 58952]]

[GRAPHIC] [TIFF OMITTED] TP17OC07.002

    The destination entry standards are summarized in the table below 
for the states of Alaska and Hawaii and the territories of Guam, Puerto 
Rico, and the U.S. Virgin Islands.
[GRAPHIC] [TIFF OMITTED] TP17OC07.003

    The service standard origin or destination for mail to or from the 
states of Alaska and Hawaii and Guam, Puerto Rico, and the U.S. Virgin 
Islands, is defined to/from the 3-digit ZIP Code area in which the 
interstate/interterritorial gateway mail processing facility is 
located: Anchorage SCF (Alaska); San Juan SCF (Puerto Rico and USVI); 
and Honolulu SCF (Hawaii and Guam). This is necessary because 
transportation beyond these entry/exit points becomes increasingly 
challenging, increasing the variability in service performance 
achieved. For example, in the state of Alaska, transportation of First-
Class Mail letters on a particular flight to a remote area may be 
deferred in favor of Package Services Mail containing groceries or 
medicine, where transportation space is insufficient to carry both 
products.
    The proposed service standards for these states and territories 
also reflect local operating plans developed in

[[Page 58953]]

response to different logistical challenges that affect each state or 
territory. For instance, factors in the state of Alaska that contribute 
to the need for longer, more realistic, service standard day ranges 
include: the reliance on infrequently scheduled cargo ships to and from 
ports in the contiguous 48 states, the absence of intrastate roads to 
many remote locations, the infrequency of available surface 
transportation, the extraordinary geographical reach of the 3-digit ZIP 
Code service areas in the state, and the necessary reliance on 
irregular air and hovercraft transportation in lieu of standard 
commercial trucking and air service between many locations. 
Extraterritorial mail for Guam is routed through Hawaii; 
extraterritorial mail for the U.S. Virgin Islands is routed through 
Puerto Rico. The time-in-transit and the limited availability of cargo 
ship capacity between the contiguous 48 states and Hawaii and Puerto 
Rico significantly affect end-to-end transit times for mail dependent 
on surface transportation, as does the availability of interisland 
shipping within Hawaii.
    The service standard day ranges depicted in the tables above must 
be viewed in the context of the estimated impact. Based on FY 2006 
domestic volumes, an estimated 89.7 percent of total market-dominant 
mail volume will have a service standard in the 1- to 5-day range, 10.1 
percent will have a service standard in the 6- to 10-day range, and 0.1 
percent will have a service standard greater than 10 days.
    Postal Service customers interested in determining what the service 
standard would be for a mail product from any particular 3-digit ZIP 
Code origin to any 3-digit ZIP Code destination, assuming the adoption 
of the service standard day ranges and business rules proposed herein, 
may examine a file which can be accessed at the following Internet 
link: http://ribbs.usps.gov/svcstandardsprop. By product (First-Class 
Mail, Periodicals, Standard Mail, and Package Services) and by origin 
3-digit ZIP Code service area, the file provides a list of all 
destination 3-digit ZIP Code service areas for which the service 
standard would, for example, be 1, 2, 3, or 4, etc., days. In addition, 
the file contains the applicable service for each destination entry 
product from point of entry to destination 3-digit ZIP Code.
    Whether mail originates or destinates on one of the islands of 
Hawaii or on Long Island in New York, modern service standards should 
reflect rational operating plans in light of available, reasonably 
economical, and efficient logistical options. In that way, customers 
can have more realistic expectations and more consistent and reliable 
service.
    The following is a summary of the proposed modern service standard 
day ranges and underlying business rules for market-dominant mail. It 
bears repeating that, where the application of a particular business 
rule for a particular mail product indicates a range of possible 
delivery days, only a single day within that range applies to a 
particular 3-digit ZIP Code origin-destination pair.
1. First-Class Mail
    Domestic First-Class Mail is sealed against inspection and 
typically consists of such matter as bills, statements of account, 
solicitations, personal correspondence and greetings, or other personal 
information that is wholly or partially handwritten or typewritten. The 
proposed modern First-Class Mail service standard day range appears 
below. First-Class Mail utilizes both air and surface transportation. 
The expected delivery day after the Critical Entry Time for any origin-
destination 3-digit ZIP Code pair depends on mail processing operating 
plans, the distance between origin and destination, and transportation 
times between processing plants.
[GRAPHIC] [TIFF OMITTED] TP17OC07.004


[[Page 58954]]


[GRAPHIC] [TIFF OMITTED] TP17OC07.005


[[Page 58955]]


[GRAPHIC] [TIFF OMITTED] TP17OC07.006

    An estimated 99.7 percent of First-Class Mail will have a service 
standard in the 1- to 3-day range, and 0.3 percent will have a 4- to 5-
day service standard.
2. Periodicals
    This domestic mail typically consists of qualified newspapers, 
magazines, and other similar publications. The proposed modern 
Periodicals service standard day range appears below. Periodicals Mail 
utilizes surface transportation. The expected delivery day after the 
Critical Entry Time for any origin-destination 3-digit ZIP Code pair 
depends on the level of destination entry, mail processing operating 
plans, distance between origin and destination, and transportation 
times between processing plants.

[[Page 58956]]

[GRAPHIC] [TIFF OMITTED] TP17OC07.007


[[Page 58957]]


[GRAPHIC] [TIFF OMITTED] TP17OC07.008

    An estimated 92.4 percent of Periodicals will have a service 
standard in the 1- to 4-day range; 7.2 percent will have a service 
standard in the 5- to 9-day range; and 0.4 percent will have a service 
standard greater than 9 days.
3. Standard Mail
    Any mailable matter weighing less than 16 ounces may be mailed 
domestically as Standard Mail (except matter that is required to be 
mailed as First-Class Mail or copies of a publication that is required 
to be entered as Periodicals Mail). The proposed modern Standard Mail 
service standard day range appears below. Standard Mail utilizes 
surface transportation. The expected delivery day after the Critical 
Entry Time for any origin-destination 3-digit ZIP Code pair depends on 
the level of destination entry, mail processing operating plans, 
distance between origin and destination, transportation times between 
processing plants, and consideration of the deferrable nature of the 
product. The proposed business rules incorporate determinations 
defining specifically where in the mail flow for Standard Mail the 
product may be deferred for up to one day. For origin-entry mail, this 
occurs at the Postal Service mail processing facility designated as the 
origin consolidation site; for destination-entry mail, this occurs at 
the destination delivery unit.

[[Page 58958]]

[GRAPHIC] [TIFF OMITTED] TP17OC07.010


[[Page 58959]]


[GRAPHIC] [TIFF OMITTED] TP17OC07.011

    An estimated 79.6 percent of Standard Mail will have a service 
standard in the 2- to 5-day range, 20.2 percent will have a service 
standard in the 6- to 10-day range, and 0.2 percent will have a service 
standard greater than 10 days.
4. Package Services
    Any domestic mailable matter may be entered as Package Services 
mail, except for matter required to be entered as First-Class Mail, 
Periodicals, or Standard Mail, as specified by the Postal Service). The 
proposed modern Package Services (Single-Piece Parcel Post, Media Mail, 
Bound Printed Matter and Library Mail) service standard day range 
appears below. Package Services Mail utilizes surface transportation. 
The expected delivery day after the Critical Entry Time for any origin-
destination 3-digit ZIP Code pair depends on the level of destination 
entry, mail processing operating plans, Bulk Mail Center/Auxiliary 
Service Facility (BMC/ASF) processing relationships, distance between 
origin and destination, and inter-BMC/ASF transportation times.

[[Page 58960]]

[GRAPHIC] [TIFF OMITTED] TP17OC07.012


[[Page 58961]]


[GRAPHIC] [TIFF OMITTED] TP17OC07.013

    An estimated 70.6 percent of Package Services mail will have a 
service standard in the 1- to 4-day range, 29.1 percent will have a 
service standard in the 5- to 8-day range, and 0.3 percent will have a 
service standard greater than 8 days.
5. Outbound Single-Piece First-Class Mail International Letters and 
Flats
    Outbound Single-Piece First-Class Mail International has been 
defined as a separate product by the Postal Service in its proposed 
Mail Classification Schedule.\7\ The proposed service standard day 
range for outbound Single-Piece First-Class Mail International letters 
and flats is equivalent to the service standard for domestic First-
Class Mail from the same origin 3-digit ZIP Code to the 3-digit ZIP 
Code area in which that origin's designated International Service 
Center or International Mail Processing Unit is located.
---------------------------------------------------------------------------

    \7\ PRC Docket No. RM2007-1, United States Postal Service 
Submission of Initial Mail Classification Schedule in Response to 
Order No. 26, at 22 (September 24, 2007).
---------------------------------------------------------------------------

B. Domestic Special Services

1. Summary of Services
    There are two categories of domestic special services: ancillary, 
and stand-alone.
    Ancillary special services are purchased for a fee in addition to 
the postage applicable to First-Class Mail, Periodicals, Standard Mail, 
Single-Piece Parcel Post, Bound Printed Matter, Library Mail, or Media 
Mail. These optional, ancillary special services are varied in nature. 
Some may be purchased only for specific mail products or mailpiece 
shapes. The following is a summary of the ancillary services:
    <bullet> Address Correction Service involves the transmission of 
corrected address information to senders, when recipients to whom they 
have sent a specific mailpiece provide a forwarding address to the 
Postal Service. Information is provided either through automated or 
hardcopy notification, depending on the type of service requested.
    <bullet> Business Reply Mail[supreg], Merchandise Return, and Bulk 
Parcel Return are alternate postage payment methods established for 
bulk mail recipients. Postage is paid through a postal account funded 
by the recipient for pieces that are mailed without postage fixed. 
Return pieces may be First-Class Mail or Package Services, as allowed 
for those services. Shipper Paid Forwarding is an alternate postage 
payment method for bulk mailers who establish accounts to cover 
postage, when parcels directed to addressees specified by the shipper

[[Page 58962]]

need to be forwarded to different addresses designated by the 
recipients. Fees in addition to postage are paid for these various 
accounting related services.
    <bullet> Certified Mail service\TM\ provides the sender a mailing 
receipt and access to electronic information regarding the delivery 
status of a mailpiece.
    <bullet> A Certificate of Mailing provides a receipt to the sender 
as evidence that a mailpiece was accepted by the Postal Service.
    <bullet> Collect on Delivery involves postal collection of payment 
for merchandise ordered by the recipient, and transmission of the 
recipient s payment to the sender.
    <bullet> Delivery Confirmation\TM\ service provides the sender 
access to electronic information regarding the delivery status of a 
mailpiece.
    <bullet> Insurance services provide senders indemnity in the event 
of loss or damage to the contents of mailpieces.
    <bullet> Parcel Airlift Service provides for air transportation of 
Standard Mail parcels on a space available basis to or from U.S. 
military Post Offices outside the contiguous 48 states.
    <bullet> Registered Mail service provides added security for a 
mailpiece from acceptance to delivery, and indemnity in case of loss or 
damage in transit.
    <bullet> Return Receipt service provides the sender with evidence 
that a mailpiece has been received at the delivery address, including 
the original or copy of the recipient s signature. The receipt is 
either in the form of a First-Class Mail card returned to the sender or 
electronically transmitted information.
    <bullet> Restricted Delivery service permits the sender to direct 
that a mailpiece be delivered to a particular person at the delivery 
address (or that person's designated agent for the receipt of mail).
    <bullet> Signature Confirmation\TM\ service provides delivery 
status information, plus the name and signature of the recipient who 
signed for the piece upon delivery.
    <bullet> Special Handling provides preferential handling to the 
extent practicable in dispatch and transportation of First-Class Mail 
and Package Services.
    <bullet> Stamped Envelopes, Stationery and Cards are articles that 
can serve as philatelic items or be used as postage-paid mailpieces.
    A principal feature of a number of ancillary special services is 
the electronic provision of information by the Postal Service to the 
sender regarding the status of a particular mailpiece. That information 
may consist of confirmation that delivery was either attempted or 
completed, a copy of the recipient's signature, or information on 
address corrections of applicable mailpieces.
    For a number of these ancillary services, delivery-related 
information is generated by Postal Service scanning of mailpieces at 
delivery units or during carrier delivery. Before the completion of 
daily work shifts, Postal Service delivery personnel dock their 
portable hand-held scanners, so that delivery information pertinent to 
each scanned mailpiece can be uploaded and transmitted to appropriate 
Postal Service data systems. New scanners currently being deployed 
allow for signatures to be scanned at the time of delivery and 
transmitted with the delivery information. Automated address correction 
of applicable mailpieces is performed passively by certain automated 
Postal Service mail sortation equipment that then transmits information 
to Postal Service systems. Information from these various Postal 
Service data systems is then made available to the purchaser of the 
special service.
    In contrast to these ancillary services, stand-alone special 
services are not contingent upon the sending or receipt of a particular 
mailpiece:
    <bullet> Address List Services are available to mailers seeking 
correction of the addresses or ZIP Codes on their mailing lists, or the 
sequencing of their addresses. The corrected addresses are then used by 
mailers to create and send mail.
    <bullet> Caller Service provides an alternative means of receiving 
properly addressed mail at a postal facility call window or loading 
dock, at times arranged between the recipient and the postal facility.
    <bullet> Change of Address Credit Card Authentication is a service 
through which a Change of Address notice submitted via the Internet or 
by telephone is authenticated by reference to the credit card number 
provided by the requester.
    <bullet> Confirm is a subscription service that enables customers 
who apply the appropriate barcode to their mail to receive information 
concerning passive scans of that mail captured by automated postal mail 
sortation equipment while the mail is in transit between acceptance and 
delivery.
    <bullet> Money Orders are financial instruments that can be used, 
independently of whether they are mailed, to transfer monetary funds 
between parties.
    <bullet> Post Office Box service provides a customer with a locked 
postal receptacle for the receipt of mail as an alternative to delivery 
at the recipient s street address.
    Many mail products, as well as ancillary and stand-alone special 
services, are purchased at Post Office retail windows. As described 
above, some special services are completed during the course of the 
window transaction. However, retail window transactions do not 
constitute market-dominant special services within the meaning of 
subsection 3621(a)(9) for which service standards must be established 
under section 3691. Accordingly, the Postal Service proposes no service 
standards in relation to window service transactions during which mail 
products or special services can be purchased.
2. Proposed Service Standards for Domestic Special Services
    The table below, which summarizes the modern service standards 
proposed for various special services, is followed by a discussion of 
each.

[[Page 58963]]

[GRAPHIC] [TIFF OMITTED] TP17OC07.014

a. Address List Services
    The Postal Service currently has a standard operating procedure for 
completing customer requests for Election Board Address Changes, 
Corrections and ZIP Coding of Lists, and Sequencing of Address Cards. 
The Postal Service proposes making this standard operating procedure 
the modern service standard for these services. This standard would 
require that, except for the period between November 16 and January 1, 
the Postal Service return the corrected addresses within 15 workdays. 
The exclusion of the November 16 to January 1 time period is due to the 
impact of the surge of holiday mail volume on Postal Service personnel 
ordinarily responsible for fulfilling these requests within the 15-
workday period.
b. Information Services for Ancillary and Stand-Alone Services
    A critical element of the various mailpiece delivery information 
services and Confirm is the timely provision of the expected 
information. Accordingly, modern service standards will include an 
objective expectation of availability of delivery scan information for 
the following ancillary special services products: Delivery 
Confirmation, Signature Confirmation, Certified Mail, Registered Mail, 
electronic Return Receipt, and Collect on Delivery. For Confirm, the 
modern service standard will be an objective expectation of 
availability of Confirm scan information obtained from mailpieces. For 
Address Correction services provided electronically, the modern service 
standard will be an objective expectation for availability of address 
correction information obtained in relation to specific mailpieces from 
the customer's mailing. For these special services, the Postal Service 
proposes that delivery information, Confirm scans, or address 
correction information, as appropriate, be accessible online to the 
sender within 24 hours of the time-stamp of the scan. The Postal 
Service emphasizes that the proposed 24-hour standard is not intended 
to abrogate current arrangements in individual Confirm Service 
Agreements regarding the frequency of batching, transmission, or 
earlier availability of such data.
c. Insurance Claims Processing
    A vital element of postal insurance is the timeliness of the Postal 
Service's resolution of indemnity claims filed by customers. 
Accordingly, as a modern service standard, the Postal Service proposes 
that a decision should be transmitted to the claimant no later than 30 
days after the date on which the Postal Service has received all 
information from the claimant necessary for resolution of the claim.
d. Post Office Box Service
    An essential element of Post Office Box service is the timely 
availability of mail by the posted ``uptime.'' The ``uptime'' is the 
time of day by which customers can expect to collect from their Post 
Office Box the mail that has been received for delivery that day. On 
the basis of local mail processing plans

[[Page 58964]]

and standard operating procedures, each Post Office Box section is 
required to establish and publicly post its standard ``uptime'' for 
each delivery day. Accordingly, the Postal Service proposes that the 
modern service standard for Post Office Box service be mail 
availability by the posted daily ``uptime.''
3. Special Services Products for Which No Independent Service Standards 
Are Being Proposed
    As explained below, there are certain special services for which 
the establishment of a universal service standard would be unnecessary, 
redundant or infeasible. Accordingly, the Postal Service interprets 
subsection 3691(a) as not requiring the establishment of service 
standards for the following special services, based upon their present 
characteristics.
a. Address Correction Service
    Mailers seeking to maintain up-to-date mailing lists can purchase 
Address Correction Service, in order to receive updated forwarding 
address information submitted to the Postal Service by addressees. 
Unlike delivery scan data that mailers request at acceptance and expect 
to receive with every delivery, ACS data are expected by the sender 
only for those mailpieces which require the Postal Service to use its 
mail forwarding address database to deliver the mailpiece, and then 
transmit the new delivery address to the sender. Manual ACS information 
is batched, and the frequency with which it is transmitted to the 
purchasers of ACS varies on the methods employed, as well as specific 
arrangements between the Postal Service and particular customers. 
Accordingly, unlike delivery scan data, there is no one standard time 
by which all ACS subscribers expect the requested data to be available. 
Additionally, there is no one availability standard that applies to all 
ACS subscribers served by the same Post Office. For these reasons, no 
service standard is proposed.
b. Alternate Postage Payment Methods
    Business Reply Mail, Merchandise Return, and Bulk Parcel Return are 
alternate postage payment methods established for bulk mail recipients. 
Shipper Paid Forwarding is an alternate postage payment method for bulk 
mailers. Mail subject to these alternate postage payment methods has 
the same delivery service standards for the applicable mail product 
(e.g., First-Class Mail or Single-Piece Parcel Post) as would any other 
mailpiece from the same point of entry, forwarding, or return to 
destination. Accordingly, there is no justification for establishing 
independent service standards for the reply, returned, or forwarded 
portions of the respective mailstreams through which such pieces flow.
c. Caller Service
    Caller Service provides a means for (usually high volume) mail 
recipients to receive their mail at a postal retail window or loading 
dock. From origin to delivery availability, the mail picked up by the 
customer is subject to the standards for each class.
    Daily Caller Service pickup times are arranged between the delivery 
office and the mail recipient. These pickup times may be pre-arranged 
or may be on an ``on-call'' basis. They often vary from posted Post 
Office Box section ``uptimes'' and many Caller Service customers 
arrange for multiple pickups on a given day. Thus, in contrast to Post 
Office Box service, there is no one posted daily ``uptime'' standard by 
which all Caller Service, either system wide or at a particular Post 
Office, is offered. Accordingly, it is infeasible to establish a 
service standard for Caller Service pickup.
d. Certificate of Mailing
    A Certificate of Mailing is provided to the sender by the Postal 
Service as an intrinsic element of the acceptance of the mailpiece for 
which it was purchased. The purchase of the certificate is ancillary to 
sending a First-Class Mail letter or Single-Piece Parcel Post package, 
for example, and does not affect the delivery service standards 
otherwise applicable to those pieces. Provision of the certificate at 
the time of mailing is a part of the acceptance of the mailpiece for 
which the certificate is purchased and completes the special service. 
Accordingly, the Postal Service sees no means or need for a standard 
measuring the timely completion of this special service.
e. Change of Address Credit Card Authentication
    Change of Address Authentication service provides a customer with a 
means of having the Postal Service verify their address using standard 
Address Verification Service (AVS), by reference to a credit card 
number the customer provides when they submit a Change of Address 
request via telephone or the Internet. This authentication service is 
an alternative to the customer completing a hard-copy Change of Address 
request form. The customer pays a fee for the credit card 
authentication associated with the telephone or Internet Change of 
Address request, not for the subsequent processing of that request. The 
authentication service is provided and completed at the time that the 
credit card is validated and the fee is debited. The Postal Service 
does not consider it necessary or feasible to establish an objective 
standard for the timely completion of the authentication which takes 
place during a telephone or Internet transaction.
f. Money Orders
    As with Stamped Cards and Stationery, and entirely at the option of 
the purchaser, Postal Money Orders may be enclosed in, for example, 
First-Class Mail pieces. Such enclosures do not affect the application 
of the First-Class Mail service standards for such mail. Once a Postal 
Money Order is purchased, the Postal Service does not necessarily have 
anything further to do. For these reasons, the Postal Service concludes 
that there is no mandate in section 3691 to establish service standards 
for Postal Money Orders.
g. Return Receipt (Hard-Copy)
    After delivery of the mailpiece to which it was affixed, a hard-
copy Return Receipt card is returned by the Postal Service to its 
purchaser via First-Class Mail. The First-Class Mail service standard 
for the 3-digit ZIP Code pair in question (from destination back to 
origin) governs the return transit. Accordingly, no independent service 
standards should be developed for the Return Receipt portion of the 
First-Class Mail stream.
h. Special Handling, Restricted Delivery, and Parcel Airlift
    A critical element of Parcel Airlift Service, Restricted Delivery, 
and Special Handling is that each product is purchased subject to the 
explicit understanding that the requested preferential handling, 
transportation upgrade, or delivery restriction is subject to 
availability. At the time when these services are purchased, it cannot 
be known whether the processing or transportation upgrade can be 
accommodated, or whether some delivery policy exception or limitation 
applicable to the delivery address overrides the requested delivery 
restriction. Accordingly, the establishment of service standards for 
these conditional service offerings is unwarranted.
i. Stamped Envelopes, Cards, and Stationery
    When used, for example, as First-Class Mail pieces or enclosures, 
Stamped Envelopes, Cards, and

[[Page 58965]]

Stationery are subject to the service standards that apply to other 
First-Class Mail pieces. Accordingly, no independent service standards 
should be developed for these products.

Section 4: The Proposed Modern Service Standards Reflect Consideration 
of Relevant Statutory Objectives and Factors

A. The Statutory Objectives

    As indicated above, subsection 3691(b)(1) requires the Postal 
Service to achieve certain specified objectives in establishing its 
modern service standards. At the same time, subsection 3691(c) requires 
that the modern service standards reflect consideration of a list of 
enumerated factors. The proposed service standards reflect limitations 
inherent in network capabilities, the mail processing environment, and 
transportation. As such, they reflect customer interest in standards 
that establish reasonable expectations for when mail should be 
delivered. Service standard day ranges based on great circle mile zone 
bands are being set aside in favor of ranges based on precise facility-
to-facility highway transportation distance measurements. Destination 
entry service standards have been created to recognize the impact of 
major advances in mailer worksharing on Postal Service mail processing 
and delivery capability. More realistic day ranges have also been 
established for mail originating from, or destinating to, the states of 
Alaska and Hawaii and the territories of Guam, Puerto Rico, and the 
U.S. Virgin Islands. These day ranges more accurately reflect the 
significant logistical challenges and limited availability of 
economical transportation options that affect service for these states 
and territories.
    Below, the Postal Service explains how the modern service standards 
described above and its plans for service performance measurement to 
achieve the objectives of subsection 3691(b).
    (A)--To enhance the value of Postal Service services to both 
senders and recipients.
    The value of postal services to both senders and recipients is 
enhanced when the service standards for those services are clear and 
reflect a balanced consideration of reasonable customer expectations 
and the capabilities of the mail processing and transportation 
networks. By aligning the proposed standards with operational 
capabilities, the Postal Service can provide reliable, consistent 
service, and properly fulfill the service expectations of both senders 
and recipients. Destination entry standards have been created and 
integrated with ``end-to-end'' mail flows to enhance the value of 
mailer worksharing, in a clear and easy-to-use format. Standard Mail 
deferability has been incorporated into the service standard day ranges 
and business rules, to reduce the potential for cumulative local 
deferral decisions that can result in unpredictable delivery times. In 
light of recent mail shifts from First-Class Mail to Standard Mail, 
preservation of clear distinctions between the service standards for 
the different mail classes (to reflect different service levels) will 
enhance value, consistency, and reliability and allow customers to 
continue to make informed choices regarding the service level desired. 
The proposed new time-sensitive service standards for many special 
services will give customers clearer expectations about the services 
offered, which will enhance the value of those services.
    (B)--To preserve regular and effective access to Postal Service 
services in all communities including those in rural areas or where 
Post Offices are not self-sustaining.
    Long-standing Postal Service policy has been to provide regular and 
effective access to postal services in all communities, whether urban 
or rural, without regard to whether post offices at particular origins 
or destinations are self-sustaining. The proposed market-dominant 
service standards adhere to this objective. Service standard day ranges 
have been extended for the states of Alaska and Hawaii and the 
territories of Guam, Puerto Rico, and the U.S. Virgin Islands. These 
changes reflect the Postal Service's goal of seeking to satisfy 
customers' desire for greater consistency and reliability on the basis 
of more realistic mail processing and transportation plans. The 
proposed day ranges more accurately reflect the significant logistical 
challenges and limited availability of economical transportation 
options for these service areas. The consultations with the Postal 
Regulatory Commission confirmed that both agencies share a sensitivity 
to the needs of customers in these states and territories. As with the 
contiguous 48 states, service standard proposals are not influenced by 
whether any portion of any state or territory may be regarded as urban 
or rural, or the degree to which any Post Offices are self-sustaining. 
Additionally, it should be observed that some special services are 
accessible online 24 hours a day, seven days a week, which allows 
customers access regardless of the location in the Postal Service 
network.
    (C)--To reasonably assure Postal Service customers delivery 
reliability, speed, and frequency consistent with reasonable rates and 
best business practices.
    The Postal Service proposes to adjust service standard day ranges 
based on consistent and modern business rules, not only to meet 
customer needs and expectations, but also to conform to the 
capabilities of the current mail processing and transportation network. 
Accordingly, the Postal Service expects that customers will experience 
more reliable service, with reasonable levels of speed consistent with 
the relative degrees of expedition and priority in processing that are 
intrinsic to each market-dominant mail product. Such an approach is 
consistent with the goal of preserving reasonable rates and conforms to 
best business practices.
    (D)--To provide a system of objective external performance 
measurements for each market-dominant product as a basis for 
measurement of Postal Service performance.
    In accordance with subsection 3691(b)(2), the Postal Service is 
continuing to meet with the Postal Regulatory Commission regarding the 
employment of a hybrid mix of external and internal service performance 
measurement systems.\8\ The Postal Service anticipates that these very 
constructive meetings will lead to the development of systems that 
generate data sufficiently reliable and robust for the management of 
its market-dominant mail and special services products, that keep 
postal customers reasonably informed about the quality of service 
provided, and that permit the Commission to fulfill its regulatory 
functions, in a manner that minimizes harm to the Postal Service's 
commercial interests. Further details regarding the nature of these 
service performance measurement systems will be reflected in the Postal 
Service report to Congress detailing its network plan and operational 
objectives that will be implemented to meet the service standards 
proposed in this notice. That network plan will be developed after 
further consultations with the Commission, and the network plan report 
will be submitted to Congress on or before June 20, 2008, in accordance 
with PAEA section 302.
---------------------------------------------------------------------------

    \8\ An ``external'' service performance measurement system would 
be one operated by a non-Postal Service entity; an ``internal'' 
system would be one operated by the Postal Service. Under the terms 
of subsection 3691(b)(2), with the approval of the Commission, the 
Postal Service may employ internal systems.
---------------------------------------------------------------------------

B. The Statutory Factors

    As is demonstrated below, the proposed modern service standards 
also reflect a thorough consideration of the

[[Page 58966]]

enumerated factors in subsection 3691(c).
    (1)--The actual level of service that Postal Service customers 
receive under any service guidelines previously established by the 
Postal Service or service standards established under this section.
    As described previously, early in its review of current service 
standards, the Postal Service examined data generated by the External 
First-Class (EXFC) measurement system for single-piece First-Class 
Mail, its Product Tracking System for Package Services, as well as data 
generated by its special services delivery and en-route mailpiece scan 
data systems, and its Customer Satisfaction Measurement system. In the 
absence of a system for the measurement of Periodicals and Standard 
Mail service performance, the Postal Service examined internal 
diagnostic data, as well as similar data provided by specific mailers 
in relation to actual delivery performance they have experienced.
    Such data are valuable as potential indicators of service 
performance. In addition, as discussed earlier, the Postal Service 
tracked over 300,000 live mailpieces to examine how mail flowed through 
its network and to help identify potential operational bottlenecks and 
logistical barriers to the provision of reliable and consistent mail 
service. The Postal Service also gathered information from customers 
using the methods described in the discussion above in Section 2 of 
this notice and below in reference to the next factor. All of this 
information provided a foundation from which the Postal Service could 
assess current levels of service.
    (2)--The degree of customer satisfaction with Postal Service 
performance in the acceptance, processing, and delivery of mail.
    The Postal Service used a combination of long-established customer 
outreach methods and efforts resulting specifically from the enactment 
of the PAEA to determine the degree of customer satisfaction in the 
acceptance, processing, and delivery of mail. Regarding service 
standards, the main recommendations were that service standards should 
be reliable, consistent, realistic, and attainable, and that any 
proposed changes reflect sensitivity to the impact of increased postal 
costs on rates that customer pay. Examples of other suggestions 
included:

--Existing service standard guidelines should serve as a baseline for 
developing modern standards.
--Measures should be taken to reduce the ``tail'' of the mail, the 
percentage of mail delivered later than the applicable standard.
--Destination entry service standards should be incorporated where such 
rate incentives exist.
--Service standards should vary on the basis of seasonality to 
accommodate the impact of the holiday mailing season.
--Service standards for deferrable Standard Mail should reflect ``in-
home'' delivery day ranges in lieu of specific delivery day targets, 
and performance should be measured on the basis of compliance with 
requested ``in-home'' delivery day ranges.
--Service improvements and costs should be balanced.

    The proposed service standards take into account technology 
deployments and destination entry mailing practices that have emerged 
in the past few decades, as well as standardized mail processing flows 
that have been developed for each market-dominant mail product. As a 
result, the proposed standards are based upon current network 
capabilities. This should ensure better consistency and reliability in 
the delivery of mail, and give customers a more realistic picture of 
Postal Service delivery capabilities. By adopting standards based on 
actual network capabilities and what is realistically attainable, the 
Postal Service expects to provide more consistent and reliable service, 
and to reduce the ``tail'' of the mail. For Standard Mail, the Postal 
Service prefers the establishment of service standards that reflect 
specific day targets, as opposed to a range of ``in-home'' delivery 
days for each origin-destination 3-digit ZIP Code pair. The Postal 
Service will collaborate with a mailing industry workgroup to further 
explore the needs of mailers who request ``in-home'' delivery dates. 
And, rather than adopt service standard day ranges or business rules 
that vary during the year, the Postal Service considers that the 
concerns underlying such proposals are more appropriate for 
consideration in the determination of performance goals, one of the 
subjects of the upcoming network plan consultations under PAEA section 
302(b)(1). In the development of those performance goals, the Postal 
Service will work with mailers to determine what types of goals would 
best address the issue of seasonality.
    The proposed modern standards preserve the differences in service 
levels among the different market-dominant mail products. In addition, 
the standards reflect consideration of customer preference for 
minimizing changes in service levels that could have an adverse impact 
on Postal Service costs for these mail products.
    (3)--The needs of Postal Service customers, including those with 
physical impairments.
    The Postal Service serves different types of customers, with 
varying needs. To ensure that its diverse stakeholders were heard, as 
explained above in Section 2, the Postal Service used a combination of 
long-established customer outreach methods, as well as efforts 
resulting specifically from the enactment of the PAEA. The Postal 
Service consulted with the Mailers' Technical Advisory Committee (MTAC) 
and reviewed the Postal Service's Customer Satisfaction Measurement--
Residential/Business surveys (CSM). The Postal Service also met with 
and solicited comments from mailers at the Postal Service/Postal 
Regulatory Commission Summit on Meeting Customer Needs in a Changing 
Regulatory Environment, and at the semi-annual National Postal Forum. 
Additionally, the Postal Service reviewed the comments solicited by the 
Commission at its three public hearings, held in Kansas City, Missouri; 
Los Angeles, California; and Wilmington, Delaware. Comments received in 
PRC Docket PI2007-1, Service Standards and Performance Measurement For 
Market-Dominant Products, also were reviewed. The Postal Service also 
solicited input from postal unions, management associations, as well as 
through a consumer and small business survey.
    Examples of customers' concerns and how they were addressed are 
detailed in reference to subsection 3691(c)(2) above. Of course, not 
every customer proposal could be accepted. Recommendations that ran 
contrary to the policies of Title 39, or that did not appear to reflect 
a balanced consideration of all of the factors discussed here, were set 
aside.
    The PAEA also requires that the Postal Service take into account 
the needs of customers with physical impairments. 39 CFR 255.1 
implements section 504 of the Rehabilitation Act of 1973, as amended. 
Section 504 prohibits discrimination on the basis of disability in 
programs or activities conducted by the Postal Service. The Postal 
Service is not proposing to adopt any service standards or service 
standard changes that work to the disadvantage of customers with a 
disability.
    (4)--Mail volume and revenues projected for future years.
    The Postal Service examined recent mail volume and revenue trends 
for each market-dominant product, as reflected in its quarterly Revenue 
Pieces

[[Page 58967]]

& Weight/Origin-Destination Information System. The Postal Service also 
reviewed its Docket No. R2006-1 test year volume projections. These 
data suggest that prudent decision-making is necessary if the Postal 
Service is to meet customer expectations at reasonable costs, 
especially in light of the price increase constraints on market-
dominant products enacted as the centerpiece of modern ratemaking and 
the alternatives available for all market-dominant mail products.
    (5)--The projected growth in the number of addresses the Postal 
Service will be required to serve in future years.
    The Postal Service expects continued growth in the number of 
delivery addresses it must serve. Accordingly, the Postal Service 
considered this factor in conjunction with the impact that such growth 
could have on the feasibility of providing service at reasonable costs, 
in light of the current mail mix and volume trends. In developing the 
proposed modern service standards, the Postal Service took a 
conservative approach to change, in light of a shifting mail mix that 
generates less revenue per piece as First-Class Mail volume declines. 
Revenue trends affect the Postal Service's ability to expend capital 
and require it to ensure that its operations are designed to more 
efficiently deliver fewer pieces per address to a growing number of 
addresses.
    (6)--The current and projected future cost of serving Postal 
Service customers.
    As highlighted above, in view of the constraints on price increases 
that are imposed on market-dominant products, it is more important than 
ever that costs associated with these services be contained. At the 
same time, great care must be taken to ensure that necessary cost 
containment does not disturb customer service expectations. 
Accordingly, in determining the degree of adjustment to the current 
service standards for market-dominant products, the Postal Service was 
mindful of recent cost trends associated with these services, as well 
as available cost projections for these products. The Postal Service 
attempted to strike a reasonable balance between desired customer 
service and the need to contain costs.
    (7)--The effect of changes in technology, demographics, and 
population distribution on the efficient and reliable operation of the 
Postal Service delivery system.
    There have been significant advances in mail processing technology 
and postal transportation over the past several decades. Mail 
processing procedures have been adjusted over time to reflect those 
advances. Mail processing capacity in the Postal Service network must 
constantly be adjusted in response to geographic shifts in both 
population and the level of mail-generating economic activity. The 
Postal Service must continue to improve the flexibility of its network 
for this reason. The proposed service standards reflect reasonable 
goals in light of the current network and technological advances that 
are expected in the nearterm. Sophisticated network mapping and 
transportation management tools now permit the Postal Service to manage 
and adjust its operations to meet service goals more efficiently. The 
Postal Service has taken into account the advent of Flats Sequencing 
System technology and advances in mailpiece scanning technology to 
continue to refine service management. Careful coordination will be 
necessary between the implementation of the network plan mandated by 
PAEA section 302 and the service standard changes proposed here to 
ensure that efficiency and reliability of service are improved.
    (8)--The policies of this title and such other factors as the 
Postal Service determines appropriate.
    The Postal Service has been established to operate as a basic and 
fundamental service to the American public. Management of the national 
postal system involves the balancing of important service and 
operational objectives, including promptness, reliability, and 
efficiency [39 U.S.C. 101(a)]. To achieve these objectives, the Postal 
Service is empowered to determine the methods and to deploy the 
personnel necessary to conduct its operations [39 U.S.C. 1001(e)]. At 
the same time, the Postal Service is charged with operating and 
maintaining such facilities and equipment as are necessary to pursue 
these objectives [39 U.S.C. 401(6)]. These considerations have weighed 
heavily in the development of the modern service standards proposed 
here. An improved alignment between service standards and current mail 
processing operational capabilities and limitations should prove 
beneficial in many respects.
    After the establishment of baseline modern service standards as a 
result of this rulemaking, the Postal Service intends to place a high 
priority on annual internal review of the service standard day ranges 
and business rules for its market-dominant products. The Postal Service 
expects to consider the aforementioned statutory factors as a part of 
any such internal review. As a part of this review, the Postal Service, 
at its discretion, may solicit either informal or formal public comment 
regarding current standards or proposals for change. The Postal Service 
also will give due consideration to its obligation to formally request 
advisory opinions from the PRC regarding any changes which may be at 
least ``substantially nationwide'' in scope, under the terms of 39 
U.S.C. 3661.

Section 5: Request for Comment

    It is emphasized that the proposed regulations are being published 
for comments and are subject to revision based on the comments received 
and further consideration by the Postal Service. Although exempt from 
the notice and comment requirements of the Administrative Procedure Act 
[5 U.S.C. 553 (b), (c)] regarding proposed rule making by 39 U.S.C. 410 
(a), the Postal Service invites public comments on these proposed 
regulations.

List of Subjects in 39 CFR Parts 121 and 122

    Postal Service.

    For the reasons stated in the preamble, the Postal Service proposes 
to amend 39 CFR Chapter I, Subchapter C, as follows:
    1. The heading of subchapter C is revised to read as follows:

Subchapter C--General Information on Postal Products

    2. Parts 121 and 122 are added are added to read as follows:

PART 121--SERVICE STANDARDS FOR MARKET-DOMINANT MAIL PRODUCTS

Sec.
121.1 First-Class Mail.
121.2 Periodicals.
121.3 Standard Mail.
121.4 Package Services.
121.5 Outbound Single-Piece First-Class Mail International Letters 
and Flats.

    Authority: 39 U.S.C. 101, 401, 403, 404, 1001, 3691.


Sec.  121.1  First-Class Mail.

    (a) For all intra-Sectional Center Facility (SCF) First-Class Mail 
properly accepted before the day-zero Critical Entry Time at origin, 
the service standard is 1-day (overnight), except for mail between the 
territories of Puerto Rico and the U.S. Virgin Islands and intra-SCF 
mail originating and destinating in the following 3-digit ZIP Code 
areas in the state of Alaska: 996, 997, 998, and 999. First-Class Mail 
addressed to a destination 3-digit ZIP Code area outside of an origin 
intra-SCF service area may be considered for overnight delivery from 
that origin SCF, if that mail is accepted before the day-zero Critical 
Entry Time at origin, if

[[Page 58968]]

sufficient customer need exists [the destination SCF receives at least 
1.5 percent of the total annual First-Class Mail volume originating 
from the origin Processing & Distribution Center/Facility (OPDC/F)], 
and if operational and transportation feasibility permit.
    (b) A 2-day service standard is established for all First-Class 
Mail properly accepted before the day-zero Critical Entry Time at 
origin if a 1-day service standard is not required and if the origin 
PDC/F to Area Distribution Center surface transportation drive time is 
12 hours or less, unless the origin and destination are within the 
state of Alaska; or if the origin and delivery address are separately 
in the territories of Puerto Rico and the U.S. Virgin Islands; or if 
the mail is intra-SCF and originating or destinating one of the 
following 3-digit ZIP Code areas in Alaska: 996, 997, 998, and 999.
    (c) A 3-day service standard is established for all remaining 
First-Class Mail properly accepted before the day-zero Critical Entry 
Time at origin, if neither a 1-day nor a 2-day service standard is 
required and:
    (1) Both the origin SCF and the delivery address are within the 
contiguous 48 states;
    (2) The origin SCF is in the contiguous 48 states, and the delivery 
address is in either of the following: the 995 3-digit ZIP Code area 
(including Anchorage AK), or the 968 3-digit ZIP Code area (including 
Honolulu, HI), or in the 006, 007, or 009 3-digit ZIP Code areas of the 
territory of Puerto Rico;
    (3) The origin is in the 006, 007 or 009 3-digit ZIP Code areas of 
the territory of Puerto Rico and the delivery address is in the 
contiguous 48 states;
    (4) The origin SCF is in the state of Hawaii and the delivery 
address is in the territory of Guam; the origin is in the territory of 
Guam and the delivery address is in the state of Hawaii; or
    (5) Both the origin SCF and the delivery address are within the 
state of Alaska.
    (d) A 4-day service standard is established for all remaining 
First-Class Mail properly accepted before the day-zero Critical Entry 
Time at origin, if either a 1-day, 2-day, or 3-day service standard is 
not required, and if:
    (1) The origin SCF is in the contiguous 48 states and the delivery 
address is in either of the following: any portion of the state of 
Alaska not in the 995 3-digit ZIP Code area; or any portion of the 
state of Hawaii not in the 968 3-digit ZIP Code area; or the territory 
of the U.S. Virgin Islands.
    (2) The delivery address is in the contiguous 48 states and the 
origin is in either of the following: The state of Alaska, the state of 
Hawaii, or the territory of the U.S. Virgin Islands;
    (3) The origin and delivery address are in different states or 
territories, excluding mail to and from the territory of Guam and mail 
between the territories of Puerto Rico and the U.S. Virgin Islands.
    (e) A 5-day service standard is established for all remaining 
First-Class Mail properly accepted before the day-zero Critical Entry 
Time at origin if either the origin or the delivery address is in the 
territory of Guam.


Sec.  121.2  Periodicals.

    (a) End-to-End. (1) For all SCF turnaround Periodicals properly 
accepted before the established and published day-zero Critical Entry 
Time at origin, where the origin P&DC/F and SCF are in the same 
building, the service standard is 1-day (overnight), except for mail 
between the territories of Puerto Rico and the United States Virgin 
Islands and mail originating or destinating in the following 3-digit 
ZIP Code areas within the state of Alaska: 996, 997, 998, and 999.
    (2) The Periodicals service standard is the sum of the applicable 
(1- to 3-day) First-Class Mail service standard plus one day, for each 
3-digit ZIP Code origin-destination pair for which Periodicals are 
accepted before the day-zero Critical Entry Time at origin and merged 
with First-Class Mail for surface transportation (as defined by the 
Periodicals Origin Split and First-Class Mail mixed Area Distribution 
Center/Automated Area Distribution Center (ADC/AADC) Domestic Mail 
Manual label list L201). This standard also applies to Periodicals 
mailed between the territories of Puerto Rico and the U.S. Virgin 
Islands between the state of Hawaii and the territory of Guam and 
between SCFs within Alaska.
    (3) The Periodicals service standard for each remaining 3-digit ZIP 
Code origin-destination pair within the 48 contiguous states, for which 
Periodicals are accepted before the day-zero Critical Entry Time at 
origin, is the sum of 4 or 5 days, plus the number of additional days 
(from 1 to 4) required for surface transportation between each 3-digit 
ZIP Code origin-destination pair.
    (4) The Periodicals service standard for each remaining 3-digit ZIP 
Code origin-destination pair, for which Periodicals are accepted before 
the day-zero Critical Entry Time at origin, is the sum of 4 or 5 days, 
plus the number of additional days (from 4 to 18) required for 
intermodal (highway, boat, air-taxi) transportation outside of the 48 
contiguous states for each 3-digit ZIP Code origin-destination pair.
    (b) Destination Entry. (1) Periodicals that qualify for a 
Destination Delivery Unit (DDU) or Destination Sectional Center 
Facility (DSCF) discount, and that are accepted before the day-zero 
Critical Entry Time at the proper DDU or DSCF, have a 1-day (overnight) 
service standard, except for mail dropped at the SCF in the territory 
of Puerto Rico and destined for the territory of the U.S. Virgin 
Islands, and intra SCF mail in the following 3-digit ZIP Code areas of 
the state of Alaska: 996, 997, 998 and 999.
    (2) Periodicals that qualify for a Destination Area Distribution 
Center (DADC) discount, and that are accepted before the day zero 
Critical Entry Time at the proper DADC, unless the ADC is located with 
the 48 contiguous states and the destination is not, and where the DADC 
and DSCF are not the same building, have a 2-day service standard, 
unless the ADC is located within the contiguous 48 states and the 
destination is not. Mail that qualifies for a Destination Sectional 
Center Facility (DSCF) discount has a 2-day service standard, if it is 
accepted before the day-zero Critical Entry Time, and the mail is 
dropped at the SCF in the territory of Puerto Rico and is destined for 
the territory of the U.S. Virgin Islands; or if the mail is intra-SCF 
in the following 3-digit ZIP Code areas of the state of Alaska: 996, 
997, 998 and 999.
    (3) Periodicals that qualify for a Destination Area Distribution 
Center (DADC) discount and that are accepted before the day zero 
Critical Entry Time at the proper DADC in the contiguous 48 states for 
delivery to addresses in the state of Alaska, or the territories of 
Guam or the U.S. Virgin Islands, have a service standard of either 6 or 
7 days, depending on the origin-destination 3-digit ZIP Code pair. For 
each such pair, the applicable day within the range is based on the 
number of days required for transportation outside of the 48 contiguous 
states.


Sec.  121.3  Standard Mail.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround Standard Mail accepted at origin before the 
day zero Critical Entry Time is 3 days when the origin Processing & 
Distribution Center/Facility (OPD&C/F) and the SCF are the same 
building, except for mail between the territories of Puerto Rico and 
the U.S. Virgin Islands.
    (2) The service standard for Area Distribution Center (ADC) 
turnaround Standard Mail accepted at origin before the day zero 
Critical Entry Time is 4 days when the OPD&C/F and the ADC are the same 
building, unless the ADC

[[Page 58969]]

is in the contiguous 48 states and the delivery address is not, or when 
the mail is between the territories of Puerto Rico and the U.S. Virgin 
Islands.
    (3) The service standard for intra-Bulk Mail Center (BMC) Standard 
Mail accepted at origin before the day zero Critical Entry Time is 5 
days for each remaining 3-digit ZIP Code origin-destination pair within 
the same Bulk Mail Center service area if the origin and destination 
are within the contiguous 48 states; the same standard applies to mail 
that is intra-Alaska, intra-Hawaii, or between the state of Hawaii and 
the territory of Guam.
    (4) For each remaining 3-digit ZIP Code origin-destination pair 
within the 48 contiguous states, the service standard for Standard Mail 
accepted at origin before the day zero Critical Entry Time is the sum 
of 6 days plus the number of additional days (from 1 to 4) required for 
surface transportation between each 3-digit ZIP Code origin-destination 
pair.
    (5) For each remaining 3-digit ZIP Code origin-destination pair, 
the service standard for Standard Mail accepted at origin before the 
day zero Critical Entry Time is the sum of 6 days plus the number of 
additional days (from 4 to 18) required for intermodal (highway, boat, 
air-taxi) transportation outside of the 48 contiguous states for each 
3-digit ZIP Code origin-destination pair.
    (b) Destination Entry. (1) Standard Mail that qualifies for a 
Destination Delivery Unit (DDU) discount and that is accepted before 
the day zero Critical Entry Time at the proper DDU has a 2-day service 
standard.
    (2) Standard Mail that qualifies for a Destination Sectional Center 
Facility (DSCF) discount and that is accepted before the day zero 
Critical Entry Time at the proper DSCF has a 3-day service standard, 
except for mail dropped at the SCF in the territory of Puerto Rico and 
destined for the territory of the U.S. Virgin Islands.
    (3) Standard Mail that qualifies for a Destination Area 
Distribution Center (DADC) discount, and that is accepted before the 
day zero Critical Entry Time at the proper DADC, has a 4-day service 
standard, unless the ADC is in the contiguous 48 states and the 
destination delivery address is not. Mail that qualifies for a 
Destination Sectional Center Facility (DSCF) discount, and that is 
accepted before the day zero Critical Entry Time at the SCF in the 
territory of Puerto Rico, has a 4-day service standard if it is 
destined for the U.S. Virgin Islands.
    (4) Standard Mail that qualifies for a Destination Bulk Mail Center 
(DBMC) discount and that is accepted before the day zero Critical Entry 
Time at the proper DBMC has a 5-day service standard, if both the 
origin and the destination are in the 48 contiguous states.
    (5) Standard Mail that qualifies for a Destination Area 
Distribution Center (DADC) or Destination Bulk Mail Center (DBMC) 
discount and that is accepted before the day zero Critical Entry Time 
at the proper DADC or DBMC in the contiguous 48 states for delivery to 
addresses in the states of Alaska or Hawaii or the territories of Guam, 
Puerto Rico, or the U.S. Virgin Islands has a service standard of 
either 8, 9, or 10 days, depending on the 3-digit origin-destination 
ZIP Code pair. For each such pair, the applicable day within the range 
is based on the number of days required for transportation outside of 
the 48 contiguous states.


Sec.  121.4  Package Services.

    (a) End-to-End. (1) The service standard for Sectional Center 
Facility (SCF) turnaround Package Services mail accepted at the origin 
SCF before the day zero Critical Entry Time is 2 days when the origin 
Processing & Distribution Center/Facility and the SCF are the same 
building, except for mail between the territories of Puerto Rico and 
the U.S. Virgin Islands.
    (2) The service standard for intra-Bulk Mail Center (BMC) Package 
Services mail accepted at origin before the day zero Critical Entry 
Time is 3 days, for each remaining (non-intra-SCF) 3-digit ZIP Code 
origin-destination pair within a Bulk Mail Center service area, where 
the origin and destination is within the contiguous 48 states and is 
not served by an Auxiliary Service Facility; for mail between the 
territories of Puerto Rico and the U.S. Virgin Islands.
    (3) The service standard for intra-Bulk Mail Center (BMC) Package 
Services mail accepted at origin before the day zero Critical Entry 
Time is 4 days for each remaining 3-digit ZIP Code origin-destination 
pair within a Bulk Mail Center service area, where the destination 
delivery address is served by an Auxiliary Service Facility; the same 
standard applies to all remaining intra-Alaska mail and mail between 
the state of Hawaii and the territory of Guam.
    (4) For each remaining 3-digit ZIP Code origin-destination pair 
within the 48 contiguous states, the service standard for Package 
Services mail accepted at origin before the day zero Critical Entry 
Time is between 5 and 8 days. For each such 3-digit ZIP Code origin-
destination pair, this is the sum of 4 days, plus the number of 
additional days (from 1 to 4) required for surface transportation 
between each 3-digit ZIP Code origin-destination pair, plus an 
additional day if the destination delivery address is served by an 
Auxiliary Service Facility.
    (5) For each remaining 3-digit ZIP Code origin-destination pair for 
which either the origin or the destination is outside of the 48 
contiguous states, the service standard for Package Services mail 
accepted at origin before the day zero Critical Entry Time is between 7 
and 22 days. For each such 3-digit ZIP Code origin-destination pair, 
this represents the sum of 4 days, plus the number of days (ranging 
between 3 to 18) required for intermodal (highway, boat, air-taxi) 
transportation between each 3-digit ZIP Code origin-destination pair.
    (b) Destination Entry. (1) Package Services mail that qualifies for 
a Destination Delivery Unit (DDU) discount and that is accepted before 
the day zero Critical Entry Time at the proper DDU has a 1-day 
(overnight) service standard.
    (2) Package Services mail that qualifies for a Destination 
Sectional Center Facility (DSCF) discount and that is accepted before 
the day zero Critical Entry Time at the proper DSCF has a 2-day service 
standard, except for mail dropped at the SCF in Puerto Rico and 
destined for the U.S. Virgin Islands.
    (3) Package Services mail that qualifies for a Destination Bulk 
Mail Center (DBMC) discount, which is accepted before the day zero 
Critical Entry Time at the proper DBMC or Destination Auxiliary Service 
Facility, and that originates and destinates in the contiguous 48 
states, has a 3-day service standard. Mail that qualifies for a 
Destination Sectional Center Facility (DSCF) discount, and that is 
accepted before the day zero Critical Entry Time at the SCF in Puerto 
Rico, has a 3-day service standard if it is destined for the U.S. 
Virgin Islands.
    (4) Package Services mail that qualifies for a Destination Bulk 
Mail Center (DBMC) discount and that is accepted before the day zero 
Critical Entry Time at the proper DBMC in the contiguous 48 states for 
delivery to addresses in the states of Alaska or Hawaii, or the 
territories of Guam, Puerto Rico, or the U.S. Virgin Islands has a 
service standard of either 6, 7, or 8 days, depending on the 3-digit 
ZIP Code origin-destination pair. For each such pair, the applicable 
day within the range is based on the number of days required for 
transportation outside of the 48 contiguous states.

[[Page 58970]]

Sec.  121.5  Outbound Single-Piece First-Class Mail International 
Letters and Flats.

    The service standard for properly accepted outbound Single-Piece 
First-Class Mail International letters and flats is equivalent to the 
service standard for domestic First-Class Mail from the same origin 3-
digit ZIP Code to the 3-digit ZIP Code area in which that origin's 
designated International Service Center or International Mail 
Processing Unit is located.

PART 122--SERVICE STANDARDS FOR MARKET-DOMINANT DOMESTIC SPECIAL 
SERVICES PRODUCTS

Sec.
122.1 Ancillary Special Services.
122.2 Stand-Alone Special Services.

    Authority: 39 U.S.C. 101, 401, 403, 404, 1001, 3691.


Sec.  122.1  Ancillary Special Services.

    (a) For the domestic market-dominant mail products identified in 
part 121 of this chapter, mailers may purchase various ancillary 
special services products, which are designed to provide electronic 
access to information regarding delivery-related events or forwarding 
addresses for individual mailpieces.
    (1) For the following special services, the service standard for 
the electronic provision of delivery-related information is that it be 
made available to the sender no later than 24 hours after the time of 
the recorded delivery-related scan performed by the Postal Service: 
Certified Mail, Delivery Confirmation, Registered Mail, electronic 
Return Receipt, and Signature Confirmation.
    (2) For electronic Address Correction Service, the service standard 
for the electronic provision of forwarding address information is that 
it be made available to the sender no later than 24 hours after the 
time of the recorded forwarding of the mailpiece by the Postal 
Automated Redirection System.
    (b) For the domestic market-dominant mail products identified in 
part 121 of this chapter, mailers may purchase insurance from the 
Postal Service to provide indemnity against loss or damage to the 
contents of a mailpiece. The service standard for the administrative 
resolution of insurance claims is that a final agency decision must be 
transmitted to the claimant no later than 30 days after the date on 
which the Postal Service has received all information from the claimant 
necessary for analysis of the claim.


Sec.  122.2  Stand-Alone Special Services.

    (a) The service standard for Post Office Box service is that mail 
be available for pickup at the box each delivery day no later than the 
daily ``up-time'' publicly posted at the Post Office in which the box 
section is located.
    (b) The service standard for completion of Address List Services 
(change-of-address information for election boards and registration 
commissions, correction and ZIP Coding of mailing lists, and address 
sequencing) is transmission of the corrected addresses within 15 
workdays of receipt to the requester, except for the period from 
November 16 through January 1.
    (c) For the domestic market-dominant mail products identified in 
part 121 of this chapter, Confirm service allows subscribing customers 
to obtain electronic information regarding when and where mailpieces 
undergo barcode scans in mail processing operations. The service 
standard for the electronic provision of Confirm scan information is 
that it be made available to the sender no later than 24 hours after 
the recorded time of the Confirm scan performed by the Postal Service.

Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 07-5065 Filed 10-16-07; 8:45 am]
BILLING CODE 7710-12-P