Special Study on Flats Operations, 82431-82433 [2023-25914]

Download as PDF 82431 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices Award type Norcross ....................... Little Rock ..................... Arlington ....................... GA AR VT SP LP SP CareerSource Research Coast ........................... Port St. Lucie ................ FL SG N/A ....................................................................... .............................................................................. WPS Labor, LLC ................................................. 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Zero Point, Incorporated ........................................ .............................................................................. .............................................................................. Military Women’s Memorial ................................. Dated: November 14, 2023. James D. Rodriguez, Assistant Secretary, Veterans’ Employment and Training Service. VI. Notice and Comment VII. Ordering Paragraphs [FR Doc. 2023–25563 Filed 11–22–23; 8:45 am] In accordance with the Postal Service Reform Act of 2022 (PSRA),1 the Commission submitted a report on the findings of its flats operations study on April 6, 2023.2 The PSRA also required the Postal Service to develop and implement a plan to remedy each inefficiency identified in the Commission’s flats study or provide an explanation why remedying such inefficiency is not practicable. PSRA section 206(b)(1). On October 6, 2023, the Postal Service submitted its plan to the Commission for approval.3 I. Introduction BILLING CODE 4510–79–P POSTAL REGULATORY COMMISSION [Docket No. SS2022–1; Order No. 6803] Special Study on Flats Operations Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is recognizing a recently filed Postal Service document with the Commission concerning its plan to remedy inefficiencies identified in the Commission’s flats study. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: January 5, 2024. SUMMARY: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. ADDRESSES: FOR FURTHER INFORMATION CONTACT: ddrumheller on DSK120RN23PROD with NOTICES1 State/ terr. Employer name David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: Table of Contents I. Introduction II. Background III. Postal Service Flats Plan IV. Motions V. Commission Analysis VerDate Sep<11>2014 21:46 Nov 22, 2023 Jkt 262001 II. Background The Postal Service has faced significant challenges in processing and delivering flats 4 in a cost-effective manner. For years, in response to statutory requirements and Commission directives, the Postal Service has been designing and implementing operational and pricing initiatives to address these issues, but the Postal Service has been unable to either quantify the expected 1 Postal Service Reform Act of 2022, Public Law 117–108, 136 Stat. 1127, available at https:// www.congress.gov/117/plaws/publ108/PLAW117publ108.pdf (PSRA). 2 Flats Operations Study Report, April 6, 2023 (Flats Operations Study Report). 3 See Submission of the United States Postal Service Flats Plan Pursuant to Section 206 of the Postal Service Reform Act of 2022, October 6, 2023 (Notice); see also Notice, Postal Service Flats Plan Pursuant to Section 206 of the Postal Service Reform Act of 2022, October 6, 2023 (Flats Plan). 4 Flats, or flat-shaped mail, refers to large envelopes, magazines, and other flexible, rectangular mail that meet certain criteria. See United States Postal Service, Publication 32, Glossary of Postal Terms, July 1, 2016, at 88, available at https://postalpro.usps.com/storages/ 2016-04/pub32_glossary.pdf. PO 00000 Frm 00119 Fmt 4703 Sfmt 4703 impact of those initiatives or isolate the impact to specific products.5 The PSRA required the Commission, in consultation with the Inspector General of the United States Postal Service (USPS OIG), to conduct a study evaluating the Postal Service’s flats operations. PSRA section 206(b)(2)(A). The statute also required the Commission to submit a report on the findings of the study no later than 1 year after enactment of the PSRA. Id. To carry out the study, the Commission collected and reviewed flats data provided by the Postal Service. Flats Operations Study Report at 1. Commission staff also visited Postal Service facilities over a period of several months, visited mailers’ facilities, contracted with an operations expert, and consulted with the USPS OIG. Id. On April 6, 2023, the Commission submitted its report on the findings of the study to Congress and the Postmaster General. In its Flats Operations Study Report, the Commission identified multiple causes of inefficiencies in the collection, sorting, transportation, and delivery of flats. Flats Operations Study Report at 23–133. In addition, the Commission quantified the effects of the volume trends, certain investment decisions, excess capacity, and operational inefficiencies of the Postal Service on costs that are attributable to flats. Id. at 134–209. At the conclusion of the Flats Operations Study Report, the Commission provided eight suggestions to the Postal Service for consideration as the Postal Service develops its plan. Id. at 210. In response to the report, the Postal Service was required to develop and implement a plan to remedy each 5 Flats Operations Study Report at 23 (citing Docket No. ACR2021, Annual Compliance Determination, March 29, 2022, at 31, 60). E:\FR\FM\24NON1.SGM 24NON1 82432 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices inefficiency identified in the Commission’s flats study or provide an explanation why remedying such inefficiency is not practicable. PSRA section 206(b)(1). Prior to implementing the plan, the Postal Service must give the public an opportunity to comment on the plan and the Commission must approve the plan. Id. On August 16, 2023, the Postal Service published a draft plan and sought public comments on the plan.6 On October 6, 2023, the Postal Service submitted its Flats Plan to the Commission for approval. ddrumheller on DSK120RN23PROD with NOTICES1 III. Postal Service Flats Plan The Postal Service asserts that its plan conforms to the relevant statutory requirements and should be approved by the Commission. Notice at 2. In addition to considering public comments, the Postal Service states that it considered the Commission’s suggestions, and the findings that inform those suggestions. Id. It notes that the Flats Plan incorporates the majority of the Commission’s recommendations. Id. The Postal Service asserts that where it was unable to accept a Commission recommendation fully, the Flats Plan details how such recommendations may in the future become practicable. Id. At the beginning of its Flats Plan, the Postal Service describes how the implementation of the Delivering for America (DFA) plan will enable it to increase revenue from flats, while also reducing costs by addressing the inefficiencies that currently exist in the processing, transporting, and delivery of flats. Flats Plan at 2. The Postal Service claims that since enactment of the DFA Plan in March 2021, it has made significant progress.7 In addressing the Commission’s suggestions from the Flats Operations Study Report, the Postal Service discusses specific initiatives relating to flats, and explains that these initiatives are part of the DFA plan. Flats Plan at 2–3. The initiatives include pricing to increase flats revenue, redesigning the network, improving the data quality, and pursuing initiatives to reduce bundle breakage. Id. at 4–17. The Postal Service also addresses the 6 See Notice of Availability of Draft Plan for FlatShaped Mail, 88 FR 55740 (August 16, 2023); see also Postal Service Flats Plan Pursuant to Section 206 of the Postal Service Reform Act of 2022, August 15, 2023, available at https:// about.usps.com/psra-flats-study/usps-flats-plan.pdf (Draft Flats Plan). Interested parties were invited to submit written comments during a 30-day period, terminating on September 15, 2023. Notice at 2. 7 Id. at 1–2 (referring to United States Postal Service, Delivering for America, Second-Year Progress Report (April 2023), available at https:// about.usps.com/what/strategic-plans/delivering-foramerica/assets/usps-dfa-two-year-report.pdf). VerDate Sep<11>2014 21:46 Nov 22, 2023 Jkt 262001 relationship between mail volume and productivity, and provides analysis to support its view that productivity declines and therefore increased costs, are due in part to volume declines. Id. at 17–24. Finally, the Postal Service addresses comments from the public received on its Draft Flats Plan, and ‘‘clarif[ies] certain aspects of the flats plan in response to those comments.’’ Id. at 24–27. IV. Motions After the Postal Service filed its Flats Plan, the Commission received motions for leave to provide comments on the Flats Plan from the News Media Alliance (NMA) and the Association for Postal Commerce (PostCom).8 NMA and PostCom both state that acceptance of their comments on the Flats Plan would be in the public interest and assist in the Commission’s decision whether to approve or reject the Flats Plan. NMA Motion at 1; PostCom Motion at 1. PostCom also provides examples of where the Commission has accepted pleadings in other dockets where such pleadings were not specifically authorized but would assist the Commission in its deliberations. PostCom Motion at 1. These motions are granted. In its comments, NMA states the Flats Plan ‘‘lacks the comprehensiveness, metrics, and accountability’’ needed to remedy well-established flats inefficiencies.9 NMA recommends that the Commission reject the plan and direct the Postal Service to address the deficiencies identified by NMA. NMA Comments at 1. PostCom also urges the Commission to reject the Flats Plan and direct the Postal Service to revise the plan to respond to PSRA directives.10 PostCom attaches its comments submitted to the Postal Service on the Draft Flats Plan, where PostCom asserts the draft plan lacked, among other things, targets toward cost coverage improvement, and did not consider the diseconomies of scale that result from declining flats volume. PostCom Comments at 1. PostCom states that despite its comments, the Postal Service submitted the final plan that is ‘‘essentially unchanged’’ from its draft plan. Id. 8 Motion for Acceptance of Comments, October 16, 2023 (NMA Motion); Motion for Leave to File Comments, October 18, 2023 (PostCom Motion). 9 Comments of the News/Media Alliance on the Postal Service’s Flats Plan, October 16, 2023, at 1 (NMA Comments). 10 Comments of the Association for Postal Commerce, October 18, 2023, at 1 (PostCom Comments). PO 00000 Frm 00120 Fmt 4703 Sfmt 4703 V. Commission Analysis Upon consideration of the Flats Plan, the Commission finds that, as submitted, this plan presents a highlevel proposal that lacks both important details and analytical support needed to evaluate the plan and determine whether it sufficiently and effectively addresses the inefficiencies identified by the Commission and described in the Flats Operations Study Report. The Commission suggested in the Flats Operations Study Report that the Postal Service quantify the impact of any initiatives on cost to ensure its efforts are effective. Flats Operations Study Report at 3. While the Postal Service explains that there are processes to validate potential net financial benefits of initiatives and methodologies for calculating and tracking the results, it does not provide any quantifiable metrics for potential benefits or cost impact results as it describes the initiatives throughout the Flats Plan. See Flats Plan at 17. Furthermore, the Postal Service does not provide a clear timeline for implementing the initiatives, with some initiatives seemingly already implemented and others in various stages of implementation. See Flats Plan at 7, 9–14. Additionally, while some initiatives appear to have been implemented as early as FY 2021, there is no timeline for when quantifiable impacts of these initiatives will be available. In its response to public comments, the Postal Service references technology updates to the Automated Flats Sorting Machine. See id. at 26. This effort is well-advised and further details of these plans, including timelines, would improve the Commission’s ability to evaluate the plan. Similarly, it is important for the Commission to understand the plan and timeline for other technology improvements, including to the equipment used to process bundles as a means to reduce bundle breakage. In addition, to thoroughly evaluate the Flats Plan, it is important for the Commission to learn more about the improved data-collection tools developed to enhance the reporting and tracking of bundle irregularities and bundle breakage. See id. at 7–9. The discussion of these tools highlights their capability to link images and other evidence of mail irregularities to the Mailer Scorecard but does not clearly specify whether the tools also resolve the other bundle breakage data quality issues the Commission set out in the Flats Operations Study Report. Id.; see also Flats Operations Study Report at E:\FR\FM\24NON1.SGM 24NON1 Federal Register / Vol. 88, No. 225 / Friday, November 24, 2023 / Notices 85–87. These data quality issues include missing data in the bundle breakage dataset for bundles without a fullservice Intelligent Mail barcode (IMb) and the lack of ability to identify where in the mail processing flow a bundle breakage occurs. See Flats Operations Study Report at 85–87. Addressing these additional issues would allow the Postal Service to identify trends and causes of bundle breakage within the handling and processing of bundles, which were previously lacking in the data. Accordingly, the Commission will seek more information from the Postal Service to enable evaluation of the Flats Plan prior to issuing its approval. The Commission also will invite comments from other interested persons on whether the Flats Plan is consistent with applicable statutory requirements. VI. Notice and Comment Interested persons may submit comments on the Flats Plan no later than January 5, 2024. Pursuant to 39 U.S.C. 505, Manon A. Boudreault is designated as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. VII. Ordering Paragraphs It is ordered: 1. The News Media Alliance’s Motion for Acceptance of Comments, filed October 16, 2023, is granted. 2. The Association for Postal Commerce’s Motion for Leave to File Comments, filed October 18, 2023, is granted. 3. Comments on the Flats Plan are due no later than January 5, 2024. 4. Pursuant to 39 U.S.C. 505, Manon A. Boudreault is appointed to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding. 5. The Secretary shall arrange for publication of this notice in the Federal Register. ddrumheller on DSK120RN23PROD with NOTICES1 By the Commission. Erica A. Barker, Secretary. [FR Doc. 2023–25914 Filed 11–22–23; 8:45 am] BILLING CODE 7710–FW–P VerDate Sep<11>2014 21:46 Nov 22, 2023 Jkt 262001 POSTAL REGULATORY COMMISSION [Docket Nos. MC2024–55 and CP2024–56; MC2024–56 and CP2024–57; MC2024–57 and CP2024–58; MC2024–58 and CP2024– 59; MC2024–59 and CP2024–60; MC2024– 60 and CP2024–61; MC2024–61 and CP2024–62; MC2024–62 and CP2024–63; MC2024–63 and CP2024–64; MC2024–64 and CP2024–65; MC2024–65 and CP2024– 66] New Postal Products Postal Regulatory Commission. Notice. AGENCY: ACTION: The Commission is noticing a recent Postal Service filing for the Commission’s consideration concerning a negotiated service agreement. This notice informs the public of the filing, invites public comment, and takes other administrative steps. DATES: Comments are due: November 29, 2023. ADDRESSES: Submit comments electronically via the Commission’s Filing Online system at https:// www.prc.gov. Those who cannot submit comments electronically should contact the person identified in the FOR FURTHER INFORMATION CONTACT section by telephone for advice on filing alternatives. FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 202–789–6820. SUPPLEMENTARY INFORMATION: SUMMARY: Table of Contents I. Introduction II. Docketed Proceeding(s) I. Introduction The Commission gives notice that the Postal Service filed request(s) for the Commission to consider matters related to negotiated service agreement(s). The request(s) may propose the addition or removal of a negotiated service agreement from the Market Dominant or the Competitive product list, or the modification of an existing product currently appearing on the Market Dominant or the Competitive product list. Section II identifies the docket number(s) associated with each Postal Service request, the title of each Postal Service request, the request’s acceptance date, and the authority cited by the Postal Service for each request. For each request, the Commission appoints an officer of the Commission to represent the interests of the general public in the proceeding, pursuant to 39 U.S.C. 505 (Public Representative). Section II also establishes comment deadline(s) pertaining to each request. PO 00000 Frm 00121 Fmt 4703 Sfmt 4703 82433 The public portions of the Postal Service’s request(s) can be accessed via the Commission’s website (https:// www.prc.gov). Non-public portions of the Postal Service’s request(s), if any, can be accessed through compliance with the requirements of 39 CFR 3011.301.1 The Commission invites comments on whether the Postal Service’s request(s) in the captioned docket(s) are consistent with the policies of title 39. For request(s) that the Postal Service states concern Market Dominant product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3622, 39 U.S.C. 3642, 39 CFR part 3030, and 39 CFR part 3040, subpart B. For request(s) that the Postal Service states concern Competitive product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3035, and 39 CFR part 3040, subpart B. Comment deadline(s) for each request appear in section II. II. Docketed Proceeding(s) 1. Docket No(s).: MC2024–55 and CP2024–56; Filing Title: USPS Request to Add Priority Mail & USPS Ground Advantage Contract 108 to Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: November 17, 2023; Filing Authority: 39 U.S.C. 3642, 39 CFR 3040.130 through 3040.135, and 39 CFR 3035.105; Public Representative: Jennaca D. Upperman; Comments Due: November 29, 2023. 2. Docket No(s).: MC2024–56 and CP2024–57; Filing Title: USPS Request to Add Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 14 to Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: November 17, 2023; Filing Authority: 39 U.S.C. 3642, 39 CFR 3040.130 through 3040.135, and 39 CFR 3035.105; Public Representative: Gregory S. Stanton; Comments Due: November 29, 2023. 3. Docket No(s).: MC2024–57 and CP2024–58; Filing Title: USPS Request to Add Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 15 to Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: November 17, 2023; Filing Authority: 39 U.S.C. 3642, 39 CFR 3040.130 through 3040.135, and 39 CFR 3035.105; Public Representative: Gregory S. Stanton; Comments Due: November 29, 2023. 1 See Docket No. RM2018–3, Order Adopting Final Rules Relating to Non-Public Information, June 27, 2018, Attachment A at 19–22 (Order No. 4679). E:\FR\FM\24NON1.SGM 24NON1

Agencies

[Federal Register Volume 88, Number 225 (Friday, November 24, 2023)]
[Notices]
[Pages 82431-82433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25914]


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POSTAL REGULATORY COMMISSION

[Docket No. SS2022-1; Order No. 6803]


Special Study on Flats Operations

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

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SUMMARY: The Commission is recognizing a recently filed Postal Service 
document with the Commission concerning its plan to remedy 
inefficiencies identified in the Commission's flats study. This notice 
informs the public of the filing, invites public comment, and takes 
other administrative steps.

DATES: Comments are due: January 5, 2024.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at https://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at 
202-789-6820.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Background
III. Postal Service Flats Plan
IV. Motions
V. Commission Analysis
VI. Notice and Comment
VII. Ordering Paragraphs

I. Introduction

    In accordance with the Postal Service Reform Act of 2022 (PSRA),\1\ 
the Commission submitted a report on the findings of its flats 
operations study on April 6, 2023.\2\ The PSRA also required the Postal 
Service to develop and implement a plan to remedy each inefficiency 
identified in the Commission's flats study or provide an explanation 
why remedying such inefficiency is not practicable. PSRA section 
206(b)(1). On October 6, 2023, the Postal Service submitted its plan to 
the Commission for approval.\3\
---------------------------------------------------------------------------

    \1\ Postal Service Reform Act of 2022, Public Law 117-108, 136 
Stat. 1127, available at https://www.congress.gov/117/plaws/publ108/PLAW-117publ108.pdf (PSRA).
    \2\ Flats Operations Study Report, April 6, 2023 (Flats 
Operations Study Report).
    \3\ See Submission of the United States Postal Service Flats 
Plan Pursuant to Section 206 of the Postal Service Reform Act of 
2022, October 6, 2023 (Notice); see also Notice, Postal Service 
Flats Plan Pursuant to Section 206 of the Postal Service Reform Act 
of 2022, October 6, 2023 (Flats Plan).
---------------------------------------------------------------------------

II. Background

    The Postal Service has faced significant challenges in processing 
and delivering flats \4\ in a cost-effective manner. For years, in 
response to statutory requirements and Commission directives, the 
Postal Service has been designing and implementing operational and 
pricing initiatives to address these issues, but the Postal Service has 
been unable to either quantify the expected impact of those initiatives 
or isolate the impact to specific products.\5\
---------------------------------------------------------------------------

    \4\ Flats, or flat-shaped mail, refers to large envelopes, 
magazines, and other flexible, rectangular mail that meet certain 
criteria. See United States Postal Service, Publication 32, Glossary 
of Postal Terms, July 1, 2016, at 88, available at https://postalpro.usps.com/storages/2016-04/pub32_glossary.pdf.
    \5\ Flats Operations Study Report at 23 (citing Docket No. 
ACR2021, Annual Compliance Determination, March 29, 2022, at 31, 
60).
---------------------------------------------------------------------------

    The PSRA required the Commission, in consultation with the 
Inspector General of the United States Postal Service (USPS OIG), to 
conduct a study evaluating the Postal Service's flats operations. PSRA 
section 206(b)(2)(A). The statute also required the Commission to 
submit a report on the findings of the study no later than 1 year after 
enactment of the PSRA. Id. To carry out the study, the Commission 
collected and reviewed flats data provided by the Postal Service. Flats 
Operations Study Report at 1. Commission staff also visited Postal 
Service facilities over a period of several months, visited mailers' 
facilities, contracted with an operations expert, and consulted with 
the USPS OIG. Id. On April 6, 2023, the Commission submitted its report 
on the findings of the study to Congress and the Postmaster General.
    In its Flats Operations Study Report, the Commission identified 
multiple causes of inefficiencies in the collection, sorting, 
transportation, and delivery of flats. Flats Operations Study Report at 
23-133. In addition, the Commission quantified the effects of the 
volume trends, certain investment decisions, excess capacity, and 
operational inefficiencies of the Postal Service on costs that are 
attributable to flats. Id. at 134-209. At the conclusion of the Flats 
Operations Study Report, the Commission provided eight suggestions to 
the Postal Service for consideration as the Postal Service develops its 
plan. Id. at 210.
    In response to the report, the Postal Service was required to 
develop and implement a plan to remedy each

[[Page 82432]]

inefficiency identified in the Commission's flats study or provide an 
explanation why remedying such inefficiency is not practicable. PSRA 
section 206(b)(1). Prior to implementing the plan, the Postal Service 
must give the public an opportunity to comment on the plan and the 
Commission must approve the plan. Id. On August 16, 2023, the Postal 
Service published a draft plan and sought public comments on the 
plan.\6\ On October 6, 2023, the Postal Service submitted its Flats 
Plan to the Commission for approval.
---------------------------------------------------------------------------

    \6\ See Notice of Availability of Draft Plan for Flat-Shaped 
Mail, 88 FR 55740 (August 16, 2023); see also Postal Service Flats 
Plan Pursuant to Section 206 of the Postal Service Reform Act of 
2022, August 15, 2023, available at https://about.usps.com/psra-flats-study/usps-flats-plan.pdf (Draft Flats Plan). Interested 
parties were invited to submit written comments during a 30-day 
period, terminating on September 15, 2023. Notice at 2.
---------------------------------------------------------------------------

III. Postal Service Flats Plan

    The Postal Service asserts that its plan conforms to the relevant 
statutory requirements and should be approved by the Commission. Notice 
at 2. In addition to considering public comments, the Postal Service 
states that it considered the Commission's suggestions, and the 
findings that inform those suggestions. Id. It notes that the Flats 
Plan incorporates the majority of the Commission's recommendations. Id. 
The Postal Service asserts that where it was unable to accept a 
Commission recommendation fully, the Flats Plan details how such 
recommendations may in the future become practicable. Id.
    At the beginning of its Flats Plan, the Postal Service describes 
how the implementation of the Delivering for America (DFA) plan will 
enable it to increase revenue from flats, while also reducing costs by 
addressing the inefficiencies that currently exist in the processing, 
transporting, and delivery of flats. Flats Plan at 2. The Postal 
Service claims that since enactment of the DFA Plan in March 2021, it 
has made significant progress.\7\ In addressing the Commission's 
suggestions from the Flats Operations Study Report, the Postal Service 
discusses specific initiatives relating to flats, and explains that 
these initiatives are part of the DFA plan. Flats Plan at 2-3. The 
initiatives include pricing to increase flats revenue, redesigning the 
network, improving the data quality, and pursuing initiatives to reduce 
bundle breakage. Id. at 4-17. The Postal Service also addresses the 
relationship between mail volume and productivity, and provides 
analysis to support its view that productivity declines and therefore 
increased costs, are due in part to volume declines. Id. at 17-24. 
Finally, the Postal Service addresses comments from the public received 
on its Draft Flats Plan, and ``clarif[ies] certain aspects of the flats 
plan in response to those comments.'' Id. at 24-27.
---------------------------------------------------------------------------

    \7\ Id. at 1-2 (referring to United States Postal Service, 
Delivering for America, Second-Year Progress Report (April 2023), 
available at https://about.usps.com/what/strategic-plans/delivering-for-america/assets/usps-dfa-two-year-report.pdf).
---------------------------------------------------------------------------

IV. Motions

    After the Postal Service filed its Flats Plan, the Commission 
received motions for leave to provide comments on the Flats Plan from 
the News Media Alliance (NMA) and the Association for Postal Commerce 
(PostCom).\8\
---------------------------------------------------------------------------

    \8\ Motion for Acceptance of Comments, October 16, 2023 (NMA 
Motion); Motion for Leave to File Comments, October 18, 2023 
(PostCom Motion).
---------------------------------------------------------------------------

    NMA and PostCom both state that acceptance of their comments on the 
Flats Plan would be in the public interest and assist in the 
Commission's decision whether to approve or reject the Flats Plan. NMA 
Motion at 1; PostCom Motion at 1. PostCom also provides examples of 
where the Commission has accepted pleadings in other dockets where such 
pleadings were not specifically authorized but would assist the 
Commission in its deliberations. PostCom Motion at 1. These motions are 
granted.
    In its comments, NMA states the Flats Plan ``lacks the 
comprehensiveness, metrics, and accountability'' needed to remedy well-
established flats inefficiencies.\9\ NMA recommends that the Commission 
reject the plan and direct the Postal Service to address the 
deficiencies identified by NMA. NMA Comments at 1.
---------------------------------------------------------------------------

    \9\ Comments of the News/Media Alliance on the Postal Service's 
Flats Plan, October 16, 2023, at 1 (NMA Comments).
---------------------------------------------------------------------------

    PostCom also urges the Commission to reject the Flats Plan and 
direct the Postal Service to revise the plan to respond to PSRA 
directives.\10\ PostCom attaches its comments submitted to the Postal 
Service on the Draft Flats Plan, where PostCom asserts the draft plan 
lacked, among other things, targets toward cost coverage improvement, 
and did not consider the diseconomies of scale that result from 
declining flats volume. PostCom Comments at 1. PostCom states that 
despite its comments, the Postal Service submitted the final plan that 
is ``essentially unchanged'' from its draft plan. Id.
---------------------------------------------------------------------------

    \10\ Comments of the Association for Postal Commerce, October 
18, 2023, at 1 (PostCom Comments).
---------------------------------------------------------------------------

V. Commission Analysis

    Upon consideration of the Flats Plan, the Commission finds that, as 
submitted, this plan presents a high-level proposal that lacks both 
important details and analytical support needed to evaluate the plan 
and determine whether it sufficiently and effectively addresses the 
inefficiencies identified by the Commission and described in the Flats 
Operations Study Report. The Commission suggested in the Flats 
Operations Study Report that the Postal Service quantify the impact of 
any initiatives on cost to ensure its efforts are effective. Flats 
Operations Study Report at 3. While the Postal Service explains that 
there are processes to validate potential net financial benefits of 
initiatives and methodologies for calculating and tracking the results, 
it does not provide any quantifiable metrics for potential benefits or 
cost impact results as it describes the initiatives throughout the 
Flats Plan. See Flats Plan at 17.
    Furthermore, the Postal Service does not provide a clear timeline 
for implementing the initiatives, with some initiatives seemingly 
already implemented and others in various stages of implementation. See 
Flats Plan at 7, 9-14. Additionally, while some initiatives appear to 
have been implemented as early as FY 2021, there is no timeline for 
when quantifiable impacts of these initiatives will be available.
    In its response to public comments, the Postal Service references 
technology updates to the Automated Flats Sorting Machine. See id. at 
26. This effort is well-advised and further details of these plans, 
including timelines, would improve the Commission's ability to evaluate 
the plan. Similarly, it is important for the Commission to understand 
the plan and timeline for other technology improvements, including to 
the equipment used to process bundles as a means to reduce bundle 
breakage.
    In addition, to thoroughly evaluate the Flats Plan, it is important 
for the Commission to learn more about the improved data-collection 
tools developed to enhance the reporting and tracking of bundle 
irregularities and bundle breakage. See id. at 7-9. The discussion of 
these tools highlights their capability to link images and other 
evidence of mail irregularities to the Mailer Scorecard but does not 
clearly specify whether the tools also resolve the other bundle 
breakage data quality issues the Commission set out in the Flats 
Operations Study Report. Id.; see also Flats Operations Study Report at

[[Page 82433]]

85-87. These data quality issues include missing data in the bundle 
breakage dataset for bundles without a full-service Intelligent Mail 
barcode (IMb) and the lack of ability to identify where in the mail 
processing flow a bundle breakage occurs. See Flats Operations Study 
Report at 85-87. Addressing these additional issues would allow the 
Postal Service to identify trends and causes of bundle breakage within 
the handling and processing of bundles, which were previously lacking 
in the data. Accordingly, the Commission will seek more information 
from the Postal Service to enable evaluation of the Flats Plan prior to 
issuing its approval. The Commission also will invite comments from 
other interested persons on whether the Flats Plan is consistent with 
applicable statutory requirements.

VI. Notice and Comment

    Interested persons may submit comments on the Flats Plan no later 
than January 5, 2024. Pursuant to 39 U.S.C. 505, Manon A. Boudreault is 
designated as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.

VII. Ordering Paragraphs

    It is ordered:
    1. The News Media Alliance's Motion for Acceptance of Comments, 
filed October 16, 2023, is granted.
    2. The Association for Postal Commerce's Motion for Leave to File 
Comments, filed October 18, 2023, is granted.
    3. Comments on the Flats Plan are due no later than January 5, 
2024.
    4. Pursuant to 39 U.S.C. 505, Manon A. Boudreault is appointed to 
serve as an officer of the Commission (Public Representative) to 
represent the interests of the general public in this proceeding.
    5. The Secretary shall arrange for publication of this notice in 
the Federal Register.

    By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-25914 Filed 11-22-23; 8:45 am]
BILLING CODE 7710-FW-P
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