Modern Service Standards for Market-Dominant Products, 58946-58970 [07-5065]

Agencies

• Postal Service

[Federal Register Volume 72, Number 200 (Wednesday, October 17, 2007)]
[Proposed Rules]
[Pages 58946-58970]
From the Federal Register Online via the Government Printing 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

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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 MailTM, 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

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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+4TM 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:
     The distance from the center of the origin mail processing 
facility s service area, as measured in great circle miles.
     The relative degree of expedition or deferability 
intrinsic to the mail product in question.
     Whether the mail product is subject only to surface, or 
both surface and air transportation.
     The availability, speed, and relative reliability of 
available modes of transportation between specific nodes in the Postal 
Service network.
     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: https://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:
     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.
     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.
     Certified Mail service\TM\ provides the sender a mailing 
receipt and access to electronic information regarding the delivery 
status of a mailpiece.
     A Certificate of Mailing provides a receipt to the sender 
as evidence that a mailpiece was accepted by the Postal Service.
     Collect on Delivery involves postal collection of payment 
for merchandise ordered by the recipient, and transmission of the 
recipient s payment to the sender.
     Delivery Confirmation\TM\ service provides the sender 
access to electronic information regarding the delivery status of a 
mailpiece.
     Insurance services provide senders indemnity in the event 
of loss or damage to the contents of mailpieces.
     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.
     Registered Mail service provides added security for a 
mailpiece from acceptance to delivery, and indemnity in case of loss or 
damage in transit.
     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.
     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).
     Signature Confirmation\TM\ service provides delivery 
status information, plus the name and signature of the recipient who 
signed for the piece upon delivery.
     Special Handling provides preferential handling to the 
extent practicable in dispatch and transportation of First-Class Mail 
and Package Services.
     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:
     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.
     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.
     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.
     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.
     Money Orders are financial instruments that can be used, 
independently of whether they are mailed, to transfer monetary funds 
between parties.
     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 serv