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PRC Reviews USPS FY 2013 Performance Goals and FY 2014 Plan

prcWashington, DC – In a report released today, the Postal Regulatory Commission evaluates the Fiscal Year 2013 performance goals and Fiscal Year 2014 performance plans of the United States Postal Service. The Commission had in previous years provided this analysis in its Annual Compliance Determination report. However, the Commission has determined that issuing its analysis in a separate report allows the Commission to provide a more in-depth review of the Postal Service’s goals and plans than in previous years.

The Commission’s report addresses and makes suggestions related to the Postal Service’s four performance goals: 1) Service, 2) Customer Experience, 3) Financial Results, and 4) Workplace Environment. Below is a summary of the Commission’s findings.

  • The Commission found that the Postal Service partially met the Service performance goal because it met some, but not all, targets for the service performance indicators. For presort First-Class Mail, all performance indicator targets were met. Single-Piece First-Class Mail performance results were mixed.
  • The Service did not meet its Customer Experience performance goals for residential and small-medium businesses as measured by national surveys. While the Postal Service also surveys large business customers, those survey data are not used in assessing performance towards achieving the Customer Experience goal. To ensure that all customers’ needs are being considered, the Postal Service should include a customer experience performance indicator and target measure for large business customer experiences.
  • The Commission determined that the Postal Service partially met its Financial Results performance goal. For FY 2013, deliveries per hour, which the Postal Service uses to measure productivity, did not meet the target. However, operating losses were less than forecast.
  • In the fourth and final goal, the Commission found that the Postal Service partially met its Workplace Environment performance target. In FY 2013, its Occupational Safety and Health Administration’s Illness and Injury Rate of 5.61 met the performance target; however, the Voice of the Employee survey target was not met.

A complete copy of the Commission’s report can be found on the PRC website at www.prc.gov

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PRC Evaluates USPS Performance: 18 Discount Rates Miss the Mark

prcWashington, DCToday the Postal Regulatory Commission issued its 2013 Annual Compliance Determination (ACD) report, an assessment of the U.S. Postal Service’s rates and service in Fiscal Year (FY) 2013.  This year’s ACD is based on information the Postal Service is required to provide to the Commission and comments from the public.

The Commission notes that the Postal Service has made improvements in the areas of customized service agreements and increased cost coverage and contribution from competitive products.  Also, the volume of mail being measured for service performance has increased, and customer access and satisfaction have improved over the previous fiscal year.  The Commission also found that customers were generally satisfied with their overall experience when visiting post offices, but were less satisfied with the resolution of complaints.  Overall, the majority of the products were found to be in compliance.

However, the Commission has identified several compliance issues the Postal Service must address in FY 2014:

1)    Market Dominant Rates and Fees:  The Commission finds that 18 workshare discounts did not comply with section 3622(e), which requires the Commission to ensure that workshare discounts do not exceed the costs avoided by the Postal Service as a result of mailers preparing the mail.

2)    Competitive Products Rates and Fees:   Rates for Parcel Return Service Contract 4, International Priority Mail, International Air Parcel Post, and International Money Transfer Service-Outbound were not in compliance because they did not cover attributable costs.  The Commission ordered the Postal Service to take corrective actions.

3)    Market Dominant Products Service Performance:  Despite overall improvements, the Commission found that a majority of market dominant mail products did not reach their annual service performance targets.           

4)    In the FY 2014 ACR, the Postal Service must provide a detailed analysis of the progress made in improving Periodicals cost coverage that includes the impact of leveraging its pricing flexibility and implementing operational strategies.

“While the Postal Service has made strides in FY 2013 in service performance,” Chairman Ruth Y. Goldway noted, “it’s important to correct those areas we identified that hurt its financial condition, and also to pay attention to meeting service standards and solving customer complaints.”

 The Commission is required to issue its ACD 90 days after the filing of the Postal Service’s Annual Compliance Report.  A copy is available at Commission offices and may be found on the Commission’s website at 2013 Annual Compliance Determination

. The Commission analyzed the Postal Service’s financial condition in a separate report issued on March 18, 2014.

 

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PRC says USPS should rethink “load levelling” scheme

prcThe Postal Regulatory Commission today issued its advisory opinion on the USPS’s plans to better spread advertising mail through the week by changing the daily delivery standards. The PRC found that the USPS hadn’t done enough testing to verify whether or not the plan would work, and has so far failed to gain support for the scheme from customers: Read More

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PRC Names David A. Trissell to General Counsel Post

prcWashington, DC – Postal Regulatory Commission Chairman, Ruth Y. Goldway, announced today that David A. Trissell has been selected by the Commission to assume the role of General Counsel in the Commission’s Office of General Counsel (OGC) effective March 24, 2014. Trissell succeeds Stephen Sharfman, who retired after 23 years as general counsel to the Commission. Read More

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PRC approves exigent rate increase- but only temporarily

prcThe Postal Regulatory Commission (PRC) has approved the US Postal Service’s request for an “exigent” rate increase (to 49 cents for a one ounce letter) to make up for revenue lost due to the recession. Because the rate hike is related to a temporary economic fluctuation, however, the rate increase is also temporary. How temporary? The PRC doesn’t say. However, the decision requires the USPS to develop a plan for rescinding the rate increase as soon as it has recovered the “lost” income. The PRC says that will happen within two years.

Here’s the PRC summary of its decision: Read More