I 
112TH CONGRESS 
1ST SESSION H. R. 2967 
To enhance the long-term profitability of the United States Postal Service 
through enhanced innovation, operational flexibility, workforce realign-
ment, and regulatory relief. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 20, 2011 
Mr. CUMMINGS (for himself and Mr. LYNCH) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform 
A BILL 
To enhance the long-term profitability of the United States 
Postal Service through enhanced innovation, operational 
flexibility, workforce realignment, and regulatory relief. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REF-
ERENCES. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Innovate to Deliver Act of 2011’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents; references. 
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TITLE I—POSTAL SERVICE PROFITABILITY AND REVENUE- 
GENERATING ENHANCEMENTS 
Sec. 101. Authority to offer nonpostal services. 
Sec. 102. USPS balanced budget minimum requirement. 
Sec. 103. Enhanced pricing flexibility. 
Sec. 104. Investment of competitive product moneys. 
Sec. 105. Requirement that market-dominant products cover attributable costs. 
Sec. 106. PRC to revisit CPI cap instituted under PAEA. 
Sec. 107. Enhanced product innovation. 
Sec. 108. Repeal of uniform rate for books, films, and other materials. 
Sec. 109. USPS innovation officer and accountability. 
TITLE II—POSTAL SERVICE WORKFORCE REALIGNMENT AND 
RIGHT-SIZING 
Sec. 201. Treatment of surplus contributions to Federal Employees’ Retirement 
System. 
Sec. 202. Contributions to Thrift Savings Fund of voluntary separation incen-
tive payments. 
Sec. 203. Modification of prepayment schedule relating to Postal Service Re-
tiree Health Benefits Fund. 
Sec. 204. Study on USPS workforce realignment and right-sizing options. 
Sec. 205. Applicability of provisions relating to reductions in force. 
Sec. 206. Enhanced reporting on facility network initiatives. 
TITLE III—POSTAL SERVICE IMPROVEMENTS AND REGULATORY 
RELIEF 
Sec. 301. Permit appeal rights for closing of postal stations and branches. 
Sec. 302. Intra-agency cooperative agreements. 
Sec. 303. Grouping of negotiated service agreements. 
Sec. 304. Simplification of process for classification of competitive products. 
Sec. 305. Development of new market-dominant classes of mail. 
Sec. 306. Expedited consideration of service changes by PRC. 
(c) REFERENCES.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of title 
39, United States Code. 
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TITLE 
I—POSTAL 
SERVICE 
PROFITABILITY 
AND 
REV-
ENUE-GENERATING 
EN-
HANCEMENTS 
SEC. 101. AUTHORITY TO OFFER NONPOSTAL SERVICES. 
(a) SPECIFIC POWER.—Section 404(a) is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8), by striking the period and 
inserting ‘‘; and’’; and 
(3) by adding at the end the following: 
‘‘(9) to provide nonpostal services in accordance 
with subsection (e).’’. 
(b) NONPOSTAL
SERVICES.—Section 404(e) is 
amended to read as follows: 
‘‘(e)(1) The Postal Service may provide nonpostal 
services that use the processing, transportation, delivery, 
retail network, technology or other resources of the Postal 
Service in a manner consistent with the public interest. 
‘‘(2) At least 90 days before offering new nonpostal 
services, the Postal Service shall request an advisory opin-
ion from the Postal Regulatory Commission that evaluates 
the extent to which the provision of such nonpostal serv-
ices— 
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‘‘(A) would use the processing, transportation, 
delivery, retail network, technology, or other re-
sources of the Postal Service; and 
‘‘(B) would be consistent with the public inter-
est. 
‘‘(3) Within 45 days after receiving the request under 
paragraph (2), the Postal Regulatory Commission— 
‘‘(A) shall issue its advisory opinion to the 
Postal Service; and 
‘‘(B) shall transmit a copy of such opinion, to-
gether with the original request, to— 
‘‘(i) the Committee on Oversight and Gov-
ernment Reform of the House of Representa-
tives; and 
‘‘(ii) the Committee on Homeland Security 
and Governmental Affairs of the Senate. 
‘‘(4) For purposes of this title, the term ‘nonpostal 
services’ means services and products other than postal 
services as defined in section 102(5), including— 
‘‘(A) check-cashing services; 
‘‘(B) new technology and media services; 
‘‘(C) warehousing and logistics; 
‘‘(D) facility leasing; and 
‘‘(E) public internet access services.’’. 
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SEC. 102. USPS BALANCED BUDGET MINIMUM REQUIRE-
MENT. 
Subsection (b) of section 404 is amended— 
(1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’; 
and 
(2) by adding at the end the following: 
‘‘(2) Except as otherwise explicitly prohibited by this 
title, within 180 days after the date of enactment of this 
paragraph, the Governors shall ensure that the rates and 
fees charged, and the level and quality of services pro-
vided, shall be adjusted so that the total revenues received 
by the Postal Service from all sources are at least equal 
to the total costs incurred in the provision of postal serv-
ices, except that the Governors shall continue to provide 
all public services for which appropriations are made to 
the Postal Service under section 2401.’’. 
SEC. 103. ENHANCED PRICING FLEXIBILITY. 
The second sentence of section 404(c) is repealed. 
SEC. 104. INVESTMENT OF COMPETITIVE PRODUCT MON-
EYS. 
Section 2003 is amended— 
(1) by redesignating subsections (d) through (h) 
as subsections (e) through (i), respectively; and 
(2) by inserting after subsection (c) the fol-
lowing: 
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‘‘(d) Notwithstanding any other provision of this sec-
tion, if the Postal Service determines that the moneys of 
the Competitive Products Fund are in excess of current 
needs, it may invest such amounts as it considers appro-
priate in accordance with regulations which the Secretary 
of the Treasury shall prescribe within 180 days after the 
date of enactment of this Act.’’. 
SEC. 105. REQUIREMENT THAT MARKET-DOMINANT PROD-
UCTS COVER ATTRIBUTABLE COSTS. 
(a) REPEAL.—Paragraph (2) of section 3622(c) is re-
pealed. 
(b) EACH CLASS TO BEAR ATTRIBUTABLE COSTS.— 
Section 3622(d)(1) is amended— 
(1) by redesignating subparagraphs (A) through 
(E) as subparagraphs (B) through (F); 
(2) by inserting before subparagraph (B) (as so 
redesignated by paragraph (1)) the following: 
‘‘(A) require that each class or type of mail 
service shall bear the direct and indirect postal 
costs attributable to such class or type through 
reliably identified causal relationships plus that 
portion of all other costs of the Postal Service 
reasonably assignable to such class or type;’’; 
and 
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(3) in subparagraph (B) (as so redesignated by 
paragraph (1)) by inserting ‘‘, excluding changes re-
quired to satisfy subparagraph (A),’’ before ‘‘to be 
set’’. 
SEC. 106. PRC TO REVISIT CPI CAP INSTITUTED UNDER 
PAEA. 
Section 3622 is amended— 
(1) in subsection (c)— 
(A) in paragraph (13), by striking ‘‘and’’ 
at the end; 
(B) by redesignating paragraph (14) as 
paragraph (15); and 
(C) by inserting after paragraph (13) the 
following: 
‘‘(14) the value to the Postal Service of having 
pricing flexibility that would apply a price cap across 
all classes of market dominant products in compari-
son to a class-based price cap.’’; and 
(2) in subsection (d)(3), by striking ‘‘Ten’’ and 
inserting ‘‘Five’’. 
SEC. 107. ENHANCED PRODUCT INNOVATION. 
(a) DOLLAR-AMOUNT LIMITATION RELATING
TO 
MARKET TESTS OF EXPERIMENTAL PRODUCTS.—Section 
3641(e)(1) is amended by striking ‘‘$10,000,000’’ and in-
serting ‘‘$50,000,000’’. 
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(b) DOLLAR-AMOUNT LIMITATION RELATING TO EX-
EMPTION AUTHORITY.—Section 3641(e)(2) is amended by 
striking ‘‘$50,000,000’’ and inserting ‘‘$100,000,000’’. 
SEC. 108. REPEAL OF UNIFORM RATE FOR BOOKS, FILMS, 
AND OTHER MATERIALS. 
(a) IN GENERAL.—Section 3683 is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 36 is amended by repealing 
the item relating to section 3683. 
SEC. 109. USPS INNOVATION OFFICER AND ACCOUNT-
ABILITY. 
(a) IN GENERAL.—Chapter 2 is amended by adding 
at the end the following: 
‘‘SEC. 209. USPS INNOVATION OFFICER AND ACCOUNT-
ABILITY. 
‘‘(a) IN GENERAL.—There shall be in the Postal 
Service a Chief Innovation Officer selected by the Post-
master General who shall have proven expertise and a 
record of success in 1 or more of the postal and shipping 
industry, innovation product research and development, 
marketing brand strategy, emerging communications tech-
nology, or business process management. The Chief Inno-
vation Officer shall manage the Postal Service’s develop-
ment and implementation of innovative postal and non-
postal products and services. 
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‘‘(b) DUTIES.—The Chief Innovation Officer shall 
have as primary duties— 
‘‘(1) leading the development of innovative non-
postal products and services that will maximize rev-
enue to the Postal Service; 
‘‘(2) developing innovative postal products and 
services, particularly those that utilize emerging in-
formation technologies, to maximize revenue to the 
Postal Service; 
‘‘(3) monitoring the performance of these prod-
ucts and services and revising them as needed to 
meet changing market trends; and 
‘‘(4) taking into consideration comments or ad-
visory opinions, if applicable, issued by the Postal 
Regulatory Committee prior to the initial sale of in-
novative postal or nonpostal products and services. 
‘‘(c) DESIGNATION.— 
‘‘(1) DEADLINE.—As soon as practicable after 
the date of enactment of this section, but no later 
than October 1, 2012, the Postmaster General shall 
designate a Chief Innovation Officer. 
‘‘(2) CONDITION.—Nothing in this section shall 
be construed to prohibit an individual who holds an-
other office or position in the Postal Service from 
serving as the Chief Innovation Officer under this 
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chapter. However, the Chief Innovation Officer may 
not, while serving in such office, concurrently hold 
any other office or position in the Postal Service. 
‘‘(d) INNOVATION STRATEGY.— 
‘‘(1) IN GENERAL.—Not later than 24 months 
after the date of enactment of this section, the Post-
master General shall submit to the Committee on 
Homeland Security and Governmental Affairs of the 
Senate and the Committee on Oversight and Govern-
ment Reform of the House of Representatives a 
comprehensive strategy for maximizing revenues 
through innovative postal and nonpostal products 
and services. 
‘‘(2) MATTERS TO BE ADDRESSED.—At a min-
imum, the strategy required by this section shall ad-
dress— 
‘‘(A) the specific innovative postal and 
nonpostal products and services to be developed 
and offered by the Postal Service, including the 
nature of the market to be filled by each prod-
uct and service and the likely date by which 
each product and service will be introduced; 
‘‘(B) the cost of developing and offering 
each product or service; 
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‘‘(C) the anticipated sales volume of each 
product and service; 
‘‘(D) the anticipated revenues and profits 
expected to be generated by each product and 
service; 
‘‘(E) the likelihood of success of each inno-
vative product and service as well as the risks 
associated with the development and sale of 
each innovative product and service; 
‘‘(F) the trends anticipated in market con-
ditions that may affect the success of each 
product and service over the next 5 years; and 
‘‘(G) the metrics that will be utilized to as-
sess the effectiveness of the innovation strategy. 
‘‘(3) STRATEGY
UPDATES.—The strategy re-
quired by this section shall be updated every 3 years 
and submitted to the Committee on Homeland Secu-
rity and Governmental Affairs of the Senate, the 
Committee on Oversight and Government Reform of 
the House of Representatives, and the Postal Regu-
latory Commission with the President’s annual 
budget request. 
‘‘(e) REPORT ON PERFORMANCE.— 
‘‘(1) IN
GENERAL.—The Postmaster General 
shall submit to the Committee on Homeland Secu-
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rity and Governmental Affairs of the Senate, the 
Committee on Oversight and Government Reform of 
the House of Representatives, and the Postal Regu-
latory Commission with the President’s annual 
budget request a report that details the Postal Serv-
ice’s progress in implementing the Innovation Strat-
egy. 
‘‘(2) MATTERS TO BE ADDRESSED.—At a min-
imum, the report required by this section shall ad-
dress— 
‘‘(A) the revenue generated by each prod-
uct and service developed through the Innova-
tion Strategy and the costs of developing and 
offering each such product and service for the 
preceding year; 
‘‘(B) the total sales volume and revenue 
generated by each product and service on a 
monthly basis for the preceding year; 
‘‘(C) trends in the markets filled by each 
product and service; 
‘‘(D) products and services identified in 
the Innovation Strategy that are to be discon-
tinued, the date on which the discontinuance 
will occur, and the reasons for the discontinu-
ance; 
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‘‘(E) alterations in products and services 
identified in the Innovation Strategy that will 
be made to meet changing market conditions, 
and an explanation of how these alterations will 
ensure the success of the products and services; 
and 
‘‘(F) the performance of the Innovation 
Strategy according to the metrics identified in 
subsection (d)(2)(G). 
‘‘(f) COMPTROLLER GENERAL.— 
‘‘(1) IN GENERAL.—The Comptroller General 
shall conduct a study on the implementation of the 
innovation strategy not later than 4 years after the 
date of enactment of this section. 
‘‘(2) CONTENTS.—At a minimum, the Comp-
troller General shall assess the effectiveness of the 
Postal Service in identifying, developing, and selling 
innovative postal and nonpostal products and serv-
ices. The study shall also include— 
‘‘(A) an audit of the costs of developing 
each innovative postal and nonpostal product 
and service developed or offered by the Postal 
Service; 
‘‘(B) the sales volume of each such product 
and service; 
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‘‘(C) the revenues and profits generated by 
each such product and service; and 
‘‘(D) the likelihood of continued success of 
each such product and service. 
‘‘(3) SUBMISSION.—The results of the study re-
quired under this subsection shall be submitted to 
the Committee on Homeland Security and Govern-
mental Affairs of the Senate and the Committee on 
Oversight and Government Reform of the House of 
Representatives.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 2 is amended by adding at 
the end the following: 
‘‘209. USPS innovation officer and accountability.’’. 
TITLE 
II—POSTAL 
SERVICE 
WORKFORCE 
REALIGNMENT 
AND RIGHT-SIZING 
SEC. 201. TREATMENT OF SURPLUS CONTRIBUTIONS TO 
FEDERAL EMPLOYEES’ RETIREMENT SYSTEM. 
Section 8423(b) of title 5, United States Code, is 
amended— 
(1) by redesignating paragraph (5) as para-
graph (6); and 
(2) by inserting after paragraph (4) the fol-
lowing: 
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‘‘(5) If, for any of fiscal years 2011 through 
2016, the amount computed under paragraph (1)(B) 
is less than zero (in this paragraph referred to as 
‘surplus postal contributions’), the amount of those 
surplus postal contributions shall be used by the 
United States Postal Service only for the purposes 
of— 
‘‘(A) providing voluntary separation incen-
tive payments (as established under section 
3523) for eligible employees; and 
‘‘(B) providing voluntary separation incen-
tive payments (as established under section 
3523) in conjunction with voluntary early re-
tirement authority for eligible employees under 
sections 8336(d)(2) or 8414(b)(1)(B).’’. 
SEC. 202. CONTRIBUTIONS TO THRIFT SAVINGS FUND OF 
VOLUNTARY SEPARATION INCENTIVE PAY-
MENTS. 
(a) Section 8351(b)(2) of title 5, United States Code, 
is amended— 
(1) by striking the matter before subparagraph 
(C) and inserting the following: 
‘‘(2)(A) An employee or Member may con-
tribute to the Thrift Savings Fund in any pay period 
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any amount of such employee’s or Member’s basic 
pay for such pay period. 
‘‘(B) An employee may contribute (by direct 
transfer to the Fund) any part of any voluntary sep-
aration incentive payment that the employee receives 
under section 3523.’’; and 
(2) by adding at the end the following: 
‘‘(D) Notwithstanding section 2105(e), in this 
paragraph, the term ‘employee’ includes an employee 
of the United States Postal Service or the Postal 
Regulatory Commission.’’. 
(b) Section 8432(a) of title 5, United States Code, 
is amended— 
(1) by redesignating paragraph (3) as (4); 
(2) by striking the matter before paragraph (4) 
(as so redesignated by paragraph (1)) and inserting 
the following: 
‘‘(a)(1) An employee or Member may contribute to 
the Thrift Savings Fund in any pay period, pursuant to 
an election under subsection (b), any amount of such em-
ployee’s or Member’s basic pay for such pay period. 
‘‘(2) An employee may contribute (by direct transfer 
to the Fund) any part of any voluntary separation incen-
tive payment that the employee receives under section 
3523. 
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‘‘(3) Contributions made under paragraph (1) pursu-
ant to an election under subsection (b) shall, with respect 
to each pay period for which such election remains in ef-
fect, be made in accordance with a program of regular 
contributions provided in regulations prescribed by the 
Executive Director.’’; 
(3) adding at the end the following: 
‘‘(5) Notwithstanding section 2105(e), in this sub-
section the term ‘employee’ includes an employee of the 
United States Postal Service or of the Postal Regulatory 
Commission.’’. 
(c) REGULATIONS.—The Executive Director of the 
Federal Retirement Thrift Investment Board shall pro-
mulgate regulations to carry out the amendments made 
by this section. 
SEC. 203. MODIFICATION OF PREPAYMENT SCHEDULE RE-
LATING 
TO 
POSTAL 
SERVICE 
RETIREE 
HEALTH BENEFITS FUND. 
(a) Section 8909a(d)(2)(B) of title 5, United States 
Code, is amended— 
(1) by striking ‘‘2017’’ and inserting ‘‘2012’’; 
(2) by striking ‘‘2056’’ and inserting ‘‘2051’’. 
(b) Section 8909a(d)(3)(A) is amended— 
(1) in clause (iii), by inserting ‘‘and’’ at the 
end; 
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(2) in clause (iv), by striking the semicolon and 
inserting a period; and 
(3) by striking clauses (v) through (x). 
(c) Section 8909a(d)(3)(B) is amended by striking 
‘‘2017’’ and inserting ‘‘2012’’. 
SEC. 204. STUDY ON USPS WORKFORCE REALIGNMENT AND 
RIGHT-SIZING OPTIONS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Comptroller General 
shall submit to the Committee on Oversight and Govern-
ment Reform of the House of Representatives and the 
Committee on Homeland Security and Governmental Af-
fairs of the Senate a report on workforce reduction or re-
alignment methods which could be used by the United 
States Postal Service to align its workforce with its needs. 
(b) CONTENTS OF THE REPORT.—The report re-
quired under subsection (a) shall include the following: 
(1) The projected workforce needs of the Postal 
Service, given the current mail volumes and the de-
mand for Postal services. 
(2) Possible options for allowing Postal Service 
employees who are eligible for voluntary early retire-
ment to deposit voluntary separation incentive pay-
ments to obtain service credit or to otherwise allow 
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such payments to be credited in the computation of 
retirement annuity benefits. 
(3) The workforce authorities available to the 
Postal Service under existing law, including for re-
ductions in force and voluntary separation incentive 
payments. 
(4) Any training, retraining, or hiring that may 
be required by the authority the Postal Service is 
granted under this Act to develop and offer for sale 
nonpostal products and services. 
SEC. 205. APPLICABILITY OF PROVISIONS RELATING TO RE-
DUCTIONS IN FORCE. 
Section 1005 is amended by adding at the end the 
following: 
‘‘(g)(1) Except as otherwise provided by any collective 
bargaining agreement entered into under chapter 12, the 
provisions of subchapter I of chapter 35 of title 5 and the 
regulations implementing such subchapter, shall apply to 
employees of the Postal Service who hold positions that 
are within bargaining units under section 1202. 
‘‘(2) Before using the authority provided in para-
graph (1), the Postal Service shall demonstrate to the Of-
fice of Personnel Management how it will comply with sec-
tion 3502(a)(4) of title 5.’’. 
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SEC. 206. ENHANCED REPORTING ON FACILITY NETWORK 
INITIATIVES. 
Section 404(d) is amended by adding at the end the 
following: 
‘‘(7)(A) The Postmaster General shall submit to the 
Committee on Homeland Security and Governmental Af-
fairs of the Senate and the Committee on Oversight and 
Government Reform of the House of Representatives and 
the Postal Regulatory Commission a report that details 
plans to close or suspend a Postal Service retail or proc-
essing facility during the period to which such report per-
tains. The first such report shall be submitted not later 
than 120 days after the date of enactment of this para-
graph. Reports shall be submitted semiannually there-
after. 
‘‘(B) Each report submitted by the Postal Service 
under subparagraph (A) shall address, at a minimum— 
‘‘(i) the specific retail and processing facilities 
the Postal Service plans to suspend or close; 
‘‘(ii) the anticipated date of suspension or clo-
sure of each such facility; 
‘‘(iii) the cost of continued operations at the fa-
cilities for which closure is planned; 
‘‘(iv) the purpose of each such suspension or 
closure, as determined by paragraph (2)(A); 
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‘‘(v) plans for the establishment of alternative 
access points for retail facilities listed in clause (i), 
including the date on which each such alternative ac-
cess point shall open for business and the planned 
location of each such alternative access point; 
‘‘(vi) how each facility closure conforms with 
previously filed actions for suspension or closure; 
‘‘(vii) the timeline for closure or suspension ac-
tivities described in paragraphs (1) and (3), and all 
other formal closure or suspension activities planned 
in connection with the retail facility closure; 
‘‘(viii) how work performed at mail processing 
facilities recommended for closure or consolidation 
will be transferred or absorbed by other facilities 
within the network; 
‘‘(ix) cost savings expected or achieved from 
consolidation of both retail and mail processing fa-
cilities; 
‘‘(x) the impact of each planned closure on 
postal employees, including relocation or reassign-
ment plans; and 
‘‘(xi) the status of ongoing suspensions or clo-
sures identified in previous reports.’’. 
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TITLE III—POSTAL SERVICE IM-
PROVEMENTS 
AND 
REGU-
LATORY RELIEF 
SEC. 301. PERMIT APPEAL RIGHTS FOR CLOSING OF POST-
AL STATIONS AND BRANCHES. 
Section 404(d) is amended by adding after paragraph 
(7) (as added by section 206) the following: 
‘‘(8) The provisions of paragraphs (1) through (6) 
shall apply to postal stations and branches in the same 
manner as the provisions apply to post offices.’’. 
SEC. 302. INTRA-AGENCY COOPERATIVE AGREEMENTS. 
(a) IN GENERAL.—Section 411 is amended— 
(1) in the section heading, by inserting ‘‘; AU-
THORITY
FOR
INTRA-SERVICE
AGREEMENT’’ 
after ‘‘AGENCIES’’; and 
(2) adding at the end the following: 
‘‘(b) The Office of the Inspector General of the 
United States Postal Service and other components of the 
Postal Service may enter into intra-service agreements to 
furnish to each other property, both real and personal, and 
personal and nonpersonal services. The furnishing of prop-
erty and services under this section shall be under such 
terms and conditions, including reimbursability, as the 
head of the component concerned and the Inspector Gen-
eral shall deem necessary.’’. 
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