Service Standard Changes, 83708-83718 [2024-23853]
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Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices
reservation boundaries, and (4) when
there are changes. Information is
requested from those Indian Tribes
seeking to receive advance notifications.
Some information is requested one time.
6. Who will be required or asked to
respond: Federally recognized Indian
Tribes. Only those Federally recognized
Indian Tribes with reservations and
either receiving or seeking to receive the
advance notifications would be asked to
respond to the specific information
request.
7. The estimated number of annual
responses: 20 (7 reporting responses +
13 recordkeepers).
8. The estimated number of annual
respondents: 13.
9. The estimated number of hours
needed annually to comply with the
information collection requirement or
request: 37.5 hours (21 reporting + 16.5
recordkeeping).
10. Abstract: In order to receive
notification of certain shipments of
irradiated reactor fuel and/or nuclear
waste within or across the boundary of
comply with the compatible Agreement
State regulations.
III. Specific Requests for Comments
The NRC is seeking comments that
address the following questions:
1. Is the proposed collection of
information necessary for the NRC to
properly perform its functions? Does the
information have practical utility?
Please explain your answer.
2. Is the estimate of the burden of the
information collection accurate? Please
explain your answer.
3. Is there a way to enhance the
quality, utility, and clarity of the
information to be collected?
4. How can the burden of the
information collection on respondents
be minimized, including the use of
automated collection techniques or
other forms of information technology?
IV. Availability of Documents
The documents identified in the
following table are available to
interested persons through ADAMS.
Document description
ADAMS
accession No.
Five-year Notification Letter Template for Tribal Participation in the Advance Notification Program ................................................
Acknowledgment Letter Template for Tribal Participation in the Advance Notification Program .......................................................
NUREG/BR–0362 ‘‘Protection of Safeguards Information: Requirements for Tribes Participating in the Advance Notification of Irradiated Reactor Fuel Shipments’’.
Safeguards Information (SGI) Awareness Training ............................................................................................................................
Draft Supporting Statement .................................................................................................................................................................
ML24170A429
ML24170A430
ML12283A116
Dated: October 11, 2024.
For the Nuclear Regulatory Commission.
David Cullison,
NRC Clearance Officer, Office of the Chief
Information Officer.
[FR Doc. 2024–23961 Filed 10–16–24; 8:45 am]
BILLING CODE 7590–01–P
POSTAL REGULATORY COMMISSION
[Docket No. N2024–1; Order No. 7695]
Service Standard Changes
Postal Regulatory Commission.
Notice.
AGENCY:
ACTION:
The Commission is
acknowledging a recently-filed Postal
Service request for an advisory opinion
regarding planned changes to its
processing and transportation networks.
This document invites public comments
on the request and addresses several
related procedural steps.
DATES: Notices of intervention are due:
October 21, 2024; Live WebEx Technical
Conference: October 16, 2024, at 1 p.m.,
eastern daylight time, virtual.
SUMMARY:
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an Indian Tribe’s reservation, Tribes
shall affirmatively opt into the advance
notification program. Because the
notification may contain Safeguards
Information (SGI), the Tribal official
will submit certification that the Tribal
official or their designee(s) has
completed NRC-provided training on
the handling of SGI and has the
necessary protection measures in place
for implementation. The Tribal official
will provide contact information for the
designee(s) and emergency response
contact(s). The Tribal official will also
provide confirmation of the reservation
boundaries or the necessary corrections
to a map provided by the NRC. The NRC
makes this information available to
others, including NRC and Agreement
State licensees. NRC licensees will use
the information to comply with the
NRC’s regulations that require them to
provide advance notice of certain
shipments of radioactive material to
participating Tribes. Agreement State
licensees may use the information to
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Submit notices of
intervention electronically via the
Commission’s Filing Online system at
https://www.prc.gov. Persons interested
in intervening who cannot submit their
views electronically should contact the
person identified in the FOR FURTHER
INFORMATION CONTACT: David A. Trissell,
General Counsel, at 202–789–6820.
SUPPLEMENTARY INFORMATION:
ADDRESSES:
Table of Contents
I. Introduction
II. Pre-Filing Issues
III. The Request
IV. Initial Administrative Actions
V. Ordering Paragraphs
I. Introduction
On October 4, 2024, the Postal Service
filed a request for an advisory opinion
from the Commission regarding planned
changes to its processing and
transportation networks.1 In particular,
1 United States Postal Service’s Request for an
Advisory Opinion on Changes in the Nature of
Postal Services, October 4, 2024 (Request). The
Postal Service filed the instant Request at the
direction of the Commission, following the Postal
Service’s initial presentation of these proposed
changes as part of the changes associated with the
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the Postal Service plans to create a
nationwide network of Regional
Processing and Distribution Centers
(RPDCs) and Local Processing Centers
(LPCs). Id. at 3. The Postal Service states
that this initiative will ‘‘increase
throughput, gain productivity, and
increase asset utilization across the
country.’’ Id. Additionally, the Postal
Service intends to implement its
Regional Transportation Optimization
(RTO) initiative on a nationwide basis.
Id. The Postal Service states that the
RTO initiative will ‘‘improve the
efficiency and velocity of the processing
network.’’ Id. The Postal Service
estimates that these two initiatives will
allow it ‘‘to achieve estimated cost
savings of between $3.6 billion and $3.7
billion on an annual basis once fully
implemented.’’ Id.
The Postal Service also proposes to
revise its service standards ‘‘to align
with these operational initiatives. . . .’’
Id. Specifically, the Postal Service will
Delivering for America Plan. See Docket No.
PI2023–4, Order Directing Postal Service to Show
Cause or File a Nature of Service Proceeding
Regarding Certain Delivering for America
Initiatives, April 26, 2024 (Order No. 7061).
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‘‘transition to 5-Digit to 5-Digit ZIP Code
service standards’’ that reflect ‘‘the three
operational legs applicable to the
movement of mail and packages:
collection to origin processing (Leg 1),
origin processing to destination
processing (Leg 2), and destination
processing to delivery (Leg 3).’’ Id. at 4.
The Postal Service asserts that despite
these changes, it will preserve the
existing day ranges for First-Class Mail,
which is currently 1–5 days, and USPS
Ground Advantage, which is 2–5 days.
Id. Additionally, the Postal Service
intends to ‘‘transition the service
standards for end-to-end USPS
Marketing Mail and USPS Package
Services so that they are based on the
standards for First-Class Mail and USPS
Ground Advantage,’’ which will shorten
the day ranges for those products as
compared to current standards. Id. The
Postal Service states that ‘‘[s]ome mail
and packages will . . . have a service
expectation that is longer than the
current expectation (although still
within the current day-ranges)’’ if its
originating 5-Digit ZIP Code is subject to
RTO. Id. at 5. Finally, the Postal Service
states that it will also exclude Sundays
and holidays as transit days in these
new service standards. Id.
The intended effective date of the
Postal Service’s planned changes is no
earlier than 90 days after the filing of
the Request. Id. at 48. The Request was
filed pursuant to 39 U.S.C. 3661 and 39
CFR part 3020. Before issuing its
advisory opinion, the Commission shall
accord an opportunity for a formal, onthe-record hearing pursuant to 5 U.S.C.
556 and 557. 39 U.S.C. 3661(c). This
Order provides information on the
Postal Service’s planned changes,
explains and establishes the process for
the on-the-record hearing, and lays out
the procedural schedule to be followed
in this case.
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II. Pre-Filing Issues
On August 22, 2024, the Postal
Service filed a notice of its intent to
conduct a pre-filing conference
regarding its plans to transform its
processing and transportation networks
and to revise service standards to align
with these changes.2
On August 26, 2024, the Commission
issued Order No. 7414, which
established Docket No. N2024–1 to
consider the Postal Service’s proposed
changes, notified the public concerning
the Postal Service’s pre-filing
conference, and appointed a Public
2 Notice
of Pre-Filing Conference, August 22,
2024, at 1.
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Representative.3 The Postal Service held
its pre-filing conference virtually on
September 5, 2024, at 1:00 p.m. Eastern
Time (ET). See Request at 49. The Postal
Service certifies that it has made a good
faith effort to address concerns of
interested persons about the Postal
Service’s proposal raised at the prefiling conference. See id.
III. The Request
A. The Postal Service’s Planned
Changes
1. Processing and Transportation
Networks
Currently, the Postal Service’s legacy
processing network consists of a mix of
Processing and Distribution Centers
(P&DCs) and Network Distribution
Centers (NDCs), combined with
‘‘numerous ancillary facilities . . . .’’
Id. at 13. As a result of the current
processing network facilities’ conditions
and age, their number and the
piecemeal and ad hoc nature of their
implementation, and the lack of
operational standardization necessary to
address the processing of mail and
packages, the Postal Service determined
that it must redesign the legacy network
and ‘‘construct a network that enables
[it] to handle mail and packages in a
precise, efficient, and integrated
manner. . . .’’ Id. at 13–14. The
proposed processing network will be
designed using a ‘‘regional concept,’’
and consist of two standardized facility
types: (1) Regional Processing and
Distribution Centers (RPDCs) and (2)
Local Processing Centers (LPCs). Id. at
14.
RPDCs will manage ‘‘the flow of mail
and packages that originate or destinate
in that region.’’ Id. at 15. They will
‘‘perform originating sortation
operations for letters, flats, and packages
to the 3-digit ZIP Code level, for
dispatch to the rest of the country.’’ Id.
They will also ‘‘engage in cross-docking
and sortation operations for destinating
letters, flats, and parcels for dispatch to
a LPC.’’ Id. Finally, they will ‘‘serve as
intermediate consolidation points for
volume that is traveling across the
country (known as Regional Transfer
Hub (RTH) operations).’’ Id.
LPCs will be designed to ‘‘handle
destinating letter, flat, and package
sortation operations for designated 3Digit ZIP Codes within a region, for
dispatch to Sorting and Delivery Centers
(S&DCs) and delivery units.’’ Id. at 16.
Some LPCs might ‘‘sort and/or crossdock carrier route bundles of flats to
3 Notice and Order Concerning the Postal
Service’s Pre-Filing Conference, August 26, 2024
(Order No. 7414).
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S&DCs and delivery units’’ or perform
‘‘certain originating operations’’ as
designated by the Postal Service. Id.
They will also act as a consolidation
point ‘‘for all volume types coming from
the delivery network on the way to the
RPDC.’’ Id.
Some LPCs might be co-located with
RPDCs and some RPDC operations
might be located ‘‘in a single building or
a campus of two or more buildings’’
based on what the Postal Service
determines is most efficient and costeffective. Id. at 15–16. The Postal
Service notes that each of the functions
these new facility categories ‘‘are not
rigid, and may be subject to varying
adjustments and configurations based
on local operational considerations
. . . .’’ Id. at 16. The Postal Service
intends to make these network changes
on a region-by-region basis over the
course of multiple years. Id.
In conjunction with these new
facilities, the Postal Service also intends
to implement its Regional
Transportation Optimization (RTO)
initiative on a nationwide basis. Id. at
21. While, according to the Postal
Service, ‘‘[t]he volume of mail collected
through [its] rental facilities (including
mail collected on carrier routes and
entered at Post Offices) has declined
substantially in recent decades[,]’’ it has
not ‘‘fundamentally adjusted’’ its
associated collection processes and
transportation network to account for
the decline. Id. at 19. This has resulted
in numerous transportation and
processing inefficiencies as the Postal
Service has continued its process of
transporting destinating mail and
packages from the processing network to
collection or delivery facilities in the
morning and transporting originating
mail from collection or delivery
facilities to the processing network in
the afternoon. Id. at 19–20.
Instead, under RTO, ‘‘certain
collection/delivery facilities will have
their destinating mail dropped off, and
their originating mail picked up, on the
same transportation route.’’ Id. at 22.
The Postal Service indicates that it will
designate 5-Digit ZIP Codes for RTO
‘‘when the facility from which the
collection mail and packages are
dispatched is more than 50 miles from
the RPDC campus.’’ Id. According to the
Postal Service, RTO will enable it to
redesign its transportation routes to
reduce the number of trips and layovers
and eliminate unnecessary or
underutilized trips. Id. at 23.
2. Service Standards
Currently, the Postal Service’s FirstClass Mail and USPS Ground Advantage
service standards ‘‘are predicated on
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plant-to-plant (i.e., on a 3-Digit to 3Digit ZIP Code) driving distances.’’ Id. at
27. They do not consider the variations
in transportation operations that are
required to move volume from the
collection point to the processing
network. Id. The Postal Service
proposes to ‘‘transition to 5-Digit to 5Digit ZIP Code (i.e. Post Office to Post
Office) service standards that maintain
the existing delivery day ranges for both
First-Class Mail and USPS Ground
Advantage . . . .’’ Id. at 28. The Postal
Service also proposes to ‘‘transition the
service standards for end-to-end USPS
Marketing Mail and Package Services so
that they are based on the standards for
First-Class Mail and USPS Ground
Advantage, respectively, which will
result in a shorter day range for these
products when compared to the current
service standards.’’ Id.
Under its proposed approach for
inter-RPDC First-Class Mail and USPS
Ground Advantage, the Postal Service
would segment volume into three legs:
collection to origin processing (Leg 1);
origin processing facility to destination
processing facility (Leg 2); and
destination processing facility to
delivery (Leg 3). Id. at 30. The proposed
service standards ‘‘will be based on how
many days cumulatively apply to a
particular mailpiece across the three
operational legs.’’ Id. For Leg 1, the
Postal Service will ‘‘align our standards
with RTO’’ and apply 1 day to pieces
that ‘‘originate in a 5-Digit ZIP Code
more than 50 miles from the RPDC,
meaning RTO is being applied, and 0
days will apply to pieces originating in
other 5-Digit ZIP Codes.’’ Id.
For Leg 2, the Postal Service will
‘‘apply [2–5] days based on the travel
distance between the originating and
destinating processing plants’’ using the
new network outlined above. Id. at 30–
31. The transit paths will be updated to
reflect the new network and ‘‘measure
the distance between the Origin RPDC
and the Destination RPDC and then the
distance between the Destination RPDC
and the Destination LPC.’’ Id. at 34.
With regard to Leg 2, the Postal Service
states that because RTO and the new
and more efficient network will improve
arrival profiles, ‘‘each of the existing
service standard bands will expand by
four hours for First-Class Mail.’’ Id. at
34–36. No additional days will be added
for Leg 3, ‘‘which is the same as the
current standards.’’ Id. at 30.
The Leg 1 rules will not apply to ‘‘any
products entered at a RPDC, Presort
First-Class Mail, or any destinationentered volume.’’ Id. at 32. The Postal
Service proposes to add an ‘‘extra day
for volume that is entered in a 5-Digit
ZIP Code subject to RTO[ ]’’ for its
Priority Mail and Priority Mail Express
products but still ‘‘intends for Priority
Mail to remain a 1–3 day product,’’ and
anticipates that ‘‘Priority Mail Express
will be a 1–3 day (guaranteed) product.’’
Id. at 33–34. Finally, for mail and
packages that originate and destinate
within the same RPDC region, ‘‘[t]he
proposed service standards would
expand the geographic scope of
turnaround volume (i.e., volume
originating and destinating within a
facility’s service area).’’ Id. at 37.
Currently, this ‘‘volume receives a twoday standard.’’ Id. Under the proposed
standards, intra-LPC and intra-RPDC
volume will either be subject to a 2 or
3-day standard depending on whether
the originating volume is from a 5-digit
ZIP Code beyond 50 miles of the
cancellation location. Id. ‘‘The
standards for end-to-end Marketing
Mail, Periodicals, and Package Services
within a region will also be based on
these standards.’’ Id. The Postal Service
outlines the proposed standards as
follows:
· Leg2
Leg 1
Coliectlo1n (0•1 day)
Network 12-5 days)
l:!Pf:l
l!lP3
Leg3
Delivery (0 days') __,. .
ZIP5.ll:1Plil
.DFAM1p
DU
• Service standard based on oRPOC to dtsl!naling
•RPOC (dRPOC) lo dHtinaling LPC (dLPC:)
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• Assi>gnmenl of 0-1 day bail.lld oo
Wlher ZIP Code has been
designated ror RTO
" New ba11d1 which rel!eel exp:111ndad 1J)lll:nl-to-pl111nt
re10h due to operatioMI Initiatives
Id. at 31.
B. The Postal Service’s Position
Finally, the Postal Service intends to
change how it measures performance
under these standards. Id. at 40.
‘‘Specifically, the Postal Service will not
count Sundays or holidays as transit
days for volume entered on a Saturday
or the day before a holiday.’’ Id. It will
also ‘‘change the Service Performance
Measurement system to enable
measurement at the 5-Digit ZIP Code
level . . . .’’ Id.
1. Processing and Transportation
Networks
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The Postal Service asserts that these
network changes will ‘‘enable
significant cost reductions in both
processing operations and in [its]
transportation network, while
improving the work environment for
[its] employees.’’ Id. at 18. It will enable
the Postal Service to more efficiently
balance its use of ground and air
transportation and should result in a
reduced number of surface and air
nodes. Id. The Postal Service states that
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these modifications will eliminate
‘‘unnecessary trips’’ and increase
utilization of the remaining trips. Id. It
will also allow the Postal Service to
further reduce costs through the
elimination of ‘‘excess facilities.’’ Id.
Additionally, according to the Postal
Service, the implementation of the RTO
initiative on a nationwide basis will
‘‘result in significant improvements in
transportation and processing
operations.’’ Id. at 22. It will result in a
reduced number of trips and layovers,
which will in turn reduce carbon
emissions and increase utilization of the
Postal Service’s transportation
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resources. Id. at 23. The Postal Service
also states that the RTO initiative will
improve ‘‘the efficiency and velocity of
the processing network,’’ by creating
efficient ‘‘operating windows in
originating and processing facilities’’
because non-RTO volume may be
processed and dispatched earlier than
under its current transportation policy.
Id.
Overall, the Postal Service estimates
that it will save ‘‘between $3.6 and $3.7
billion annually in Leg 1 and Leg 2
transportation costs, mail and package
processing costs, and facility costs[ ]’’
through the implementation of these
two initiatives. Id. at 23. Table 1 below
details the Postal Service’s estimated
annual cost savings, organized by
category. The Postal Service cautions
that because it intends to implement
these initiatives ‘‘through a deliberate
implementation plan over time,’’ that
not all savings will be achieved
immediately. Id. at 26. Thus, ‘‘[t]his
approach reasonably estimates the
expected future savings from these
initiatives when fully implemented.’’ Id.
TABLE 1—ESTIMATED ANNUAL COST SAVINGS BY CATEGORY
Category
Estimated annual cost savings
Regional Transportation ..........................
Network Transportation ...........................
Mail and Package Processing .................
Facilities ...................................................
$651 million.
$1.8 billion ($1.1 billion from surface transportation and $701 million from air transportation).
$1.1–$1.2 billion.
$81 million.
Id. at 24–25.
2. Service Standards
The Postal Service states that under
the new standards, ‘‘the majority of
overall market-dominant volume’’ will
have ‘‘either the same service standards
. . . or an accelerated standard.’’ Id. at
38. And while the specific volume
impacts were filed under seal for
competitive products, the Postal Service
states that ‘‘the overall impact of these
proposed changes is that the majority of
packages will either have the same
service standard or a better standard,
consistent with the fact that a majority
of package volume is entered in ZIP
Codes that are within 50 miles of’’ the
processing network. Id. at 40. Table 2
below details ‘‘the impact on all marketdominant volume, including end-to-end
and destination entry. Id. at 38.
TABLE 2—ESTIMATED VOLUME CHANGES UNDER PROPOSED SERVICE STANDARDS
Products
Estimated % of volume change
All Market Dominant Products .....................................
First-Class Mail ............................................................
Marketing Mail .............................................................
Periodicals ...................................................................
Package Services 4 ......................................................
83%
75%
90%
93%
79%
unchanged,
unchanged,
unchanged,
unchanged,
unchanged,
11% upgraded, 6% downgraded.
14% upgraded, 11% downgraded.
8% upgraded, 2% downgraded.
4% upgraded, 3% downgraded.
12% upgraded, 9% downgraded.
Id. at 38–39.
Volume Upgrades and Downgrades . .A.cross Mark.et Dominant Products
p·y2.4a.3 Volume·
Summary impact
Sr&akout .by product
%Of V¢lllime
248.
100
UIO
11,279M
12,136M
FCM
Marketing
Man
0
4 Package Services refers to a Market Dominant
class of mail products intended for non-urgent
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delivery of books, catalogs, and other printed
materials such as Media Mail/Library Mail. It does
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Periodicals
Package
Services
not refer to the Postal Service’s Competitive
package products such as USPS Ground Advantage.
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Id. at 38.
C. The Postal Service’s Direct Case
The Postal Service is required to file
its direct case along with the Request.
See 39 CFR 3020.114. The Postal
Service’s direct case includes all the
prepared evidence and testimony upon
which the Postal Service proposes to
rely on in order to establish that its
proposal accords with and conforms to
the policies of title 39, United States
Code. See id. The Postal Service
provides the direct testimony of five
witnesses and identifies a sixth
individual to serve as its institutional
witness and provide information
relevant to the Postal Service’s proposal
that is not provided by other Postal
Service witnesses. See Request at 50–52.
Table 3 below details the Postal
Service’s direct case, organized by
witness.
TABLE 3—POSTAL SERVICE WITNESSES
1. Stephen Hagenstein .............
2. Arslan Saleem ......................
3. Leslie Johnson-Frick ............
4. Gregory White ......................
5. Curtis Whiteman ...................
6. Sharon Owens .....................
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Description of the proposed revisions to service standards, including the three legs ............
Explanation of inefficiencies of current network’s first leg .......................................................
Description of how RTO initiative corrects those inefficiencies ...............................................
Anticipated flow of mail and package volume within the RPDC/LPC network ........................
Estimated impact of proposed service standards on 5-Digit ZIP pairs ....................................
Explanation of how the proposed changes will be addressed in measurement (including
through revisions to the Service Performance Measurement (SPM) Plan).
Explanation of the exclusion of Sundays and holidays as transit days ...................................
Estimate of impacts on mail volumes .......................................................................................
Explanation of performance measurement based on 5-Digit ZIP code ...................................
Description of how RTO changes will not impact local mail collection and delivery ...............
Explanation of how local office operations might change to accommodate the RTO initiative
Explanation of how changes will be communicated to customers ..........................................
Explanation of measures to ensure timely delivery of Election Mail .......................................
Explanation of how the RPDC/LPC network changes and RTO initiative will improve processing effectiveness and produce cost savings.
Description of the standard operating procedures for the RPDCs and LPCs .........................
Discussion of the estimated cost savings ................................................................................
Description of the methodology used to calculate the estimated savings ...............................
Institutional witness capable of providing information relevant to the Postal Service’s proposal that is not provided by other Postal Service witnesses.
Id. at 51–52.
Additionally, the Postal Service filed
17 library references, 8 of which are
USPS–T–1.
USPS–T–2.
USPS–T–3.
USPS–T–4.
USPS–T–5.
None filed.
available to the public and 9 of which
are designated as non-public material.
TABLE 4—POSTAL SERVICE LIBRARY REFERENCES
USPS–LR–N2024–1–1 ..........
USPS–LR–N2024–1–2 ..........
USPS–LR–N2024–1–3 ..........
USPS–LR–N2024–1–4 ..........
USPS–LR–N2024–1–5 ..........
USPS–LR–N2024–1–6 ..........
USPS–LR–N2024–1–7 ..........
USPS–LR–N2024–1–8 ..........
USPS–LR–N2024–1–NP1 .....
USPS–LR–N2024–1–NP2 .....
USPS–LR–N2024–1–NP3 .....
USPS–LR–N2024–1–NP4 .....
USPS–LR–N2024–1–NP5 .....
USPS–LR–N2024–1–NP6 .....
USPS–LR–N2024–1–NP7 .....
USPS–LR–N2024–1–NP8 .....
USPS–LR–N2024–1–NP9 .....
RTO Determination Based on Distance from RPDC ........................................................
Planned RPDCs and LPCs ...............................................................................................
Service Standard Changes to Market Dominant Products ...............................................
Revised USPS Service Performance Measurement Plan ................................................
Revised Implementation Document for Service Performance Measurement Plan ..........
Market Dominant Mail Volume Impact Analysis in Future State ......................................
Legacy Processing Assignments ......................................................................................
Facilities and Operating Cost Savings from STC Insourcing ...........................................
LTO Model Explanation and Pilot Results ........................................................................
Leg 2 Modeling Inputs, Explanation and Results .............................................................
Service Standard Changes to Competitive Products ........................................................
Competitive Products Volume with Start-the-Clock on Saturday or Day Before Holiday
Competitive Product Mail Volume Impact Analysis in Future State .................................
Impacts on Pharmaceutical Volume ..................................................................................
Competitive Product Volume Impact in Future State ........................................................
LDC Productivity Rates and Workhours ...........................................................................
Site-Specific Machine Productivity Information .................................................................
Stephen Hagenstein.
Stephen Hagenstein.
Stephen Hagenstein.
Arslan Saleem.
Arslan Saleem.
Arslan Saleem.
Gregory White.
Gregory White.
Stephen Hagenstein.
Stephen Hagenstein.
Stephen Hagenstein.
Arslan Saleem.
Arslan Saleem.
Arslan Saleem.
Arslan Saleem.
Gregory White.
Gregory White.
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Note: The Postal Service filed the non-public library reference under seal (shaded in the above table), asserting it consists of commercially
sensitive business information, specifically transportation costs and modeling, information related to the Postal Service’s competitive products,
and site- and machine-specific processing capabilities and productivity rates for competitive products. See Notice of United States Postal Service
of Filing of Library References and Application for Non-Public Treatment, October 4, 2024, Application of the United States Postal Service for
Non-Public Treatment at 4–8.
IV. Initial Administrative Actions
A. General Procedures
The procedural rules in 39 CFR part
3020 apply to Docket No. N2024–1.
Before issuing its advisory opinion, the
Commission shall accord an
opportunity for a formal, on-the-record
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hearing pursuant to 5 U.S.C. 556 and
557. 39 U.S.C. 3661(c). The Commission
will sit en banc for Docket No. N2024–
1. See 39 CFR 3020.122(b). The form
and manner for any hearings to be held
in Docket No. N2024–1 shall be
established by Commission Order or
Presiding Officer Ruling at a later date.
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B. Scope
Docket No. N2024–1 is limited in
scope to the specific changes proposed
by the Postal Service in its Request. See
39 CFR 3020.102(b). To the extent that
participants raise alternative proposals
and present reasons why those
alternatives may be superior to the
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Postal Service’s proposal, the
Commission would interpret such
discussion as critiquing the specific
changes proposed by the Postal Service
in its Request.5 However, the
Commission would not evaluate or
opine on the merits of such alternative
proposals in its advisory opinion. See
Order No. 2080 at 18. Pursuant to its
discretion, the Commission may
undertake evaluation of alternatives or
other issues raised by participants in
separate proceedings (such as special
studies or public inquires). See 39 CFR
3020.102(b). Moreover, any interested
person may petition the Commission to
initiate a separate proceeding (such as a
rulemaking or public inquiry) at any
time. See 39 CFR 3010.201(b) (initiation
of notice and comment proceedings).
C. Designation of Presiding Officer
Pursuant to 39 CFR 3010.106, the
Commission appoints Stephanie A.
Quick to serve as presiding officer in
Docket No. N2024–1, effective
immediately. Ms. Quick shall have the
authority delegated to the presiding
officer under 39 CFR 3010.106(c),
except for regulating the course of
public conferences and hearings. See 39
CFR 3010.106(c)(2). The Commission
expands Ms. Quick’s authority to allow
her to propound formal discovery
requests upon any party, at her
discretion. The numerical limitation on
interrogatories appearing in 39 CFR
3020.117(a) shall not apply to the
presiding officer. The Commission also
authorizes the presiding officer to rule
on procedural issues such as motions
for late acceptance and discoveryrelated matters such as motions to be
excused from answering discovery
requests. The presiding officer shall
have authority to issue any ruling in this
docket not otherwise specifically
reserved to the Commission by 39 CFR
3020 and 3010.106. Commissioner
Ashley Poling shall preside over the
technical conference and any hearings
conducted as part of this proceeding.
Commissioner Poling shall have all the
authority of the presiding officer,
including but not limited to convening,
adjourning, and ruling on oral motions
made during the hearings.
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D. Procedural Schedule
The Commission establishes a
procedural schedule, which appears
below the signature of this Order as
Attachment 1. See 39 CFR 3010.151,
3020.110; see also 39 CFR part 3020
5 See
Docket No. RM2012–4, Order Adopting
Amended Rules of Procedure for Nature of Service
Proceedings Under 39 U.S.C. 3661, May 20, 2014,
at 18 (Order No. 2080).
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appendix A. Generally, the procedural
schedule for a nature of service
proceeding requires that the advisory
opinion be issued within 90 days from
the date of the filing of the Postal
Service’s request. See 39 CFR 3020.110.
Due to the breadth and complexity of
the Postal Service’s request, as well as
the number of federal holidays that
occur in the next 90 days, the
Commission finds good cause to deviate
from the pro forma procedural schedule,
including extending the issuance date of
the advisory opinion to 120 days. See 39
CFR part 3020 appendix A. These dates
may be further changed if good cause is
shown, if the Commission later
determines that the Request is
incomplete, if the Commission
determines that the Postal Service has
significantly modified the Request, or
for other reasons as determined by the
Commission. See 39 CFR 3020.110(b)
and (c).
E. How To Access Material Filed in This
Proceeding
1. Using the Commission’s Website
The public portions of the Postal
Service’s filing are available for review
on the Commission’s website (https://
www.prc.gov). The Postal Service’s
electronic filing of the Request and
prepared direct evidence effectively
serves the persons who participated in
the pre-filing conference. See 39 CFR
3020.104. Other material filed in this
proceeding will be available for review
on the Commission’s website, unless the
information contained therein is subject
to an application for non-public
treatment.
2. Using Methods Other Than the
Commission’s Website
The Postal Service must serve hard
copies of its Request and prepared
direct evidence ‘‘only upon those
persons who have notified the Postal
Service, in writing, during the pre-filing
conference(s), that they do not have
access to the Commission’s website.’’ 39
CFR 3020.104. If you demonstrate that
you are unable to effectively use the
Commission’s Filing Online system or
are unable to access the internet, then
the Secretary of the Commission will
serve material filed in Docket No.
N2024–1 upon you via First-Class Mail.
See 39 CFR 3010.127(b) and (c). You
may request physical service by mailing
a document demonstrating your need to
the Office of Secretary and
Administration, Postal Regulatory
Commission, 901 New York Avenue
NW, Suite 200, Washington, DC 20268–
0001. Pursuant to 39 CFR 3010.127(c),
the Secretary shall maintain a service
PO 00000
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list identifying no more than two
individuals designated for physical
service of documents for each party
intervening in this proceeding.
Accordingly, each party must ensure
that its listing is accurate and should
promptly notify the Secretary of any
errors or changes. See 39 CFR
3010.127(c).
3. Non-Public Material
The Commission’s rules on how to
file and access non-public material
appear in 39 CFR part 3011. Each
individual seeking non-public access
must familiarize themselves with these
provisions, including the rules
governing eligibility for access; nondissemination, use, and care of the nonpublic material; sanctions for violations
of protective conditions; and how to
terminate or amend access. See 39 CFR
3011.300, 3011.302–.304. Any person
seeking access to non-public material
must file a motion with the Commission
containing the information required by
39 CFR 3011.301(b)(1)–(4). Each motion
must attach a description of the
protective conditions and a certification
to comply with protective conditions
executed by each person or entity (and
each individual working on behalf of
the person or entity) seeking access. 39
CFR 3011.301(b)(5)–(6). To facilitate
compliance with 39 CFR
3011.301(b)(5)–(6), a template Protective
Conditions Statement and Certification
to Comply with Protective Conditions
appears below the signature of this
Order as Attachment 2, for completion
and attachment to a motion for access.
See 39 CFR part 3011 subpart C,
appendix A. Persons seeking access to
non-public material are advised that
actual notice provided to the Postal
Service pursuant to 39 CFR
3011.301(b)(4) will expedite resolution
of the motion, particularly if the motion
for access is uncontested by the Postal
Service.
Non-public information must be
redacted from filings submitted through
the Commission’s website; instead, nonpublic information must be filed under
seal as required by 39 CFR part 3011
subpart B.
F. How To File Material in This
Proceeding
1. Using the Commission’s Filing Online
System
Except as provided in 39 CFR
3010.120(a),6 all material filed with the
6 The Commission’s Filing Online system allows
account holders to file materials that contain nonpublic information. See Postal Regulatory
Commission eDockets User Guide, at 39, available
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Commission shall be submitted in
electronic format using the Filing
Online system, which is available over
the internet through the Commission’s
website. The Commission’s website
accepts filings during the Commission’s
regular business hours, which are from
8:00 a.m. through 4:30 p.m. Eastern
Time (ET), except for Saturdays,
Sundays, and Federal holidays. A guide
to using the Filing Online system,
including how to create an account, is
available at https://www.prc.gov/how-toparticipate. If you have questions about
how to use the Filing Online system,
please contact the dockets clerk by
email at dockets@prc.gov or telephone
at (202) 789–6800, option 2. Please be
advised that the dockets clerk can only
answer procedural questions but may
not provide legal advice or
recommendations.
2. Using Methods Other Than the
Commission’s Filing Online System
Material may be filed using a method
other than the Commission’s website
only if at least one of the following
exceptions applies:
• The material cannot reasonably be
converted to electronic format,
• The filer is unable to effectively use
the Commission’s Filing Online system
and the document is 10 pages or fewer,
or
• The Secretary has approved an
exception to the requirements to use the
Commission’s Filing Online system
based on a showing of good cause.
39 FR 3010.120(a).
Material subject to these exceptions
may be filed by mail to the Office of
Secretary and Administration, Postal
Regulatory Commission, 901 New York
Avenue NW, Suite 200, Washington, DC
20268–0001. The posting of mailed
materials to the Commission’s website
may be delayed.
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G. Technical Conference
1. Date and Purpose
A technical conference will be held
live via Microsoft Teams on October 16,
2024, at 1:00 p.m. ET. The technical
conference is an informal, off-the-record
opportunity to clarify technical issues as
well as to identify and request
information relevant to evaluating the
Postal Service’s proposed changes. See
39 CFR 3020.115(c). The technical
at https://www.prc.gov/sites/default/files/
PRC%20eFiling%20User%20Guide_06092023.pdf.
The filer must adhere to the requirements of 39 CFR
3011 subpart B, including the requirement to
concomitantly provide an application for nonpublic treatment, a redacted (public) version of the
non-public materials, and an unredacted (sealed)
version of the non-public materials. See 39 CFR
3011.200(a).
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conference will be limited to
information publicly available in the
Request. Any non-public information,
including information in non-public
library references attached to the
Request, should not be raised at the
technical conference. At the technical
conference, the Postal Service will make
available for questioning its five
witnesses whose direct testimony was
filed along with the Request and a sixth
individual to serve as its institutional
witness, who will provide information
relevant to the Postal Service’s proposal
that is not provided by other Postal
Service witnesses. See Request at 51–52;
see also 39 CFR 3020.113(b)(6)–(7),
3020.115(b). The names and topics to
which these six individuals are
prepared to address are summarized
above in section III.C., table 3, infra.
2. How To Livestream the Technical
Conference
The technical conference will be
broadcast to the public via livestream,
which will allow the public to view and
listen to the technical conference, as it
is occurring and after. To view and
listen to the livestream, on or after 1
p.m. ET on October 16, 2024, an
individual must click on the internet
link that will be identified on the
Commission’s YouTube Channel, which
is available at https://
www.youtube.com/channel/UCbHvKS8CJFT5yNQe4MkTiQ. Individuals do
not have to register in advance to access
the livestream. Please note that the
livestream is a broadcast; therefore,
there is a brief delay (several seconds)
between the technical conference being
captured on camera and being displayed
to viewers of the livestream.
Additionally, please note that clicking
on the livestream link will not allow an
individual the opportunity to question
the Postal Service’s six witnesses.
Details on how to participate in the live
technical conference event (and have
the opportunity to question the Postal
Service’s six witnesses) follow.
3. How To Participate in the Technical
Conference
To participate in this live technical
conference and have the opportunity to
ask questions of the Postal Service’s six
witnesses, an individual need not
formally intervene in this docket but
must register in advance as follows.
Each individual seeking to participate in
the live technical conference via
Microsoft Teams using an individual
device (e.g., a desktop computer, laptop,
tablet, or smart phone) must register by
sending an email to Registration@
prc.gov, with the subject line ‘‘N2024–
1 Conference Registration’’ by October
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15, 2024. In order to facilitate orderly
public participation, this email shall
provide the following information:
• your first and last name;
• your email address (to receive the
Microsoft Teams link);
• the name(s) of the Postal Service
witness(es) you would like to question
and/or the topic(s) of your question(s);
and
• your affiliation (if you are
participating in your capacity as an
employee, officer, or member of an
entity such as a corporation, association,
or government agency).
The Registration@prc.gov email
address is established solely for the
exchange of information relating to the
logistics of registering for, and
participating in, the technical
conference.7 No information related to
the substance of the Postal Service’s
Request shall be communicated, nor
shall any information provided by
participants apart from the list
identified above be reviewed or
considered. Only documents filed with
the Commission’s docket system will be
considered by the Commission. Before
the technical conference, the
Commission will email each identified
individual a Microsoft Teams link, an
explanation of how to connect to the
technical conference, and information
regarding the schedule and procedures
to be followed.
4. Availability of Materials and
Recording
To facilitate discussion of the matters
to be explored at the technical
conference, the Postal Service shall, if
necessary, file with the Commission any
materials not already filed in Docket No.
N2024–1 (such as PowerPoint
presentations or Excel spreadsheets)
that the Postal Service expects to
present at the technical conference by
October 15, 2024. Doing so will foster an
orderly discussion of the matters under
consideration and facilitate the ability of
individuals to access these materials
should technical issues arise for any
participants during the live technical
conference. If feasible, the recording
will be available on the Commission’s
YouTube Channel at https://
www.youtube.com/channel/UCbHvKS8CJFT5yNQe4MkTiQ.
Participants in the live technical
conference, by participating, consent to
such recording and posting. Information
obtained during the technical
conference or as a result of the technical
conference is not part of the decisional
record, unless admitted under the
7 Please refer to the Commission’s privacy policy
which is available at https://www.prc.gov/privacy.
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standards of 39 CFR 3010.322. See 39
CFR 3020.115(e).
The Commission reserves the right to
cancel the technical conference should
no parties register an intent to question
the Postal Service’s six witnesses.
H. How To Intervene (Become a Party to
This Proceeding)
To become a party to this proceeding,
a person or entity must file a notice of
intervention by October 21, 2024.8 This
filing must clearly and concisely state:
(1) the nature and extent of the
intervenor’s interest in the issues
(including the postal services used); (2)
the intervenor’s position on the
proposed changes in services (to the
extent known); (3) whether or not the
intervenor requests a hearing; and (4)
whether or not the intervenor intends to
actively participate in the hearing. See
39 CFR 3010.142(b). Page one of this
filing shall contain the name and full
mailing address of no more than two
persons who are to receive service,
when necessary, of any documents
relating to this proceeding. See id. A
party may participate in discovery; file
testimony and evidence; conduct
written examination of witnesses;
conduct limited oral cross-examination;
file briefs, motions, and objections; and
present argument before the
Commission or the presiding officer. See
id. sections 3010.142(a); 3020.122(e). An
opposition to a notice of intervention is
due within 3 days after the notice of
intervention is filed. See id. section
3010.142(d)(2).
I. Discovery
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1. Generally Applicable Discovery
Procedures
Discovery requests may be
propounded upon filing a notice of
intervention. Discovery that is
reasonably calculated to lead to
admissible evidence is allowed. See 39
CFR 3020.116(a). Each party must
familiarize themselves with the
Commission’s rules appearing in 39 CFR
part 3020, including the rules for
discovery in N-dockets generally and
specific to interrogatories, requests for
the production of documents, and
requests for admissions. See 39 CFR
3020.116–3020.119. No party may
propound more than a total of 25
interrogatories (including both initial
and follow-up interrogatories) without
8 Neither the Public Representative nor the Postal
Service must file a notice of intervention; both are
automatically deemed parties to this proceeding.
See 39 CFR 3010.142(a).
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prior approval by the Commission or
presiding officer.9
Each answer to a discovery request is
due within 7 days after the discovery
request is filed.10 Any motion seeking to
be excused from answering any
discovery request is due within 3 days
after the discovery request is filed. See
39 CFR 3020.105(b)(1). Any response to
such motion is due within 2 days after
the motion is filed. See id. section
3020.105(b)(2). The Commission expects
parties to make judicious use of
discovery, objections, and motions
practice, and encourages parties to make
every effort to confer to resolve disputes
informally before bringing disputes to
the Commission to resolve.
2. Discovery Deadlines for the Postal
Service’s Direct Case
All discovery requests regarding the
Postal Service’s direct case must be filed
by November 5, 2024. All discovery
answers by the Postal Service must be
filed by November 12, 2024. The parties
are urged to initiate discovery promptly,
rather than to defer filing requests and
answers to the end of the period
established by the Commission.
J. Rebuttal Case Deadlines
A rebuttal case is any evidence and
testimony offered to disprove or
contradict the evidence and testimony
submitted by the Postal Service. A
rebuttal case does not include crossexamination of the Postal Service’s
witnesses or argument submitted via a
brief or statement of position. Any party
that intends to file a rebuttal case must
file a notice confirming its intent to do
so by November 27, 2024. Any rebuttal
case, consisting of any testimony and all
materials in support of the case, must be
filed by December 4, 2024.
K. Surrebuttal Case Deadlines
A surrebuttal case is any evidence and
testimony offered to disprove or
contradict the evidence and testimony
submitted by the rebutting party. A
surrebuttal case does not include crossexamination of the rebutting party’s
witnesses or argument submitted via a
brief or statement of position. Any party
that intends to file a surrebuttal case
must obtain the Commission’s prior
approval and must bear the burden of
demonstrating exceptional
circumstances that would warrant
9 See 39 CFR 3020.117(a); Order No. 2080 at 42;
see also Docket No. N2021–1, Order Affirming
Presiding Officer’s Ruling No. N2021–1/9, May 26,
2021, at 9 (Order No. 5901).
10 See 39 CFR 3020.117(b)(4), 3020.118(b)(1),
3020.119(b)(1). Filing an opposition to a notice of
intervention shall not delay this deadline. See 39
CFR 3010.142(d)(3).
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granting the motion. See 39 CFR
3020.121(b). Any motion for leave to file
a surrebuttal case is due December 6,
2024. Any response to such motion is
due December 10, 2024. Any surrebuttal
case, consisting of any testimony and all
materials in support of the case, must be
filed by December 13, 2024.
L. Hearing Dates
The Commission expects that this
case will require no more than 1 or 2
business days for hearing, but reserves
3 business days out of an abundance of
caution and consistent with the pro
forma schedule set forth in appendix A
of 39 CFR part 3020. If no party files a
notice of intent to file a rebuttal case by
November 27, 2024, then the hearing of
the Postal Service’s direct case shall
begin December 4, 2024, with additional
days reserved on December 5, 2024, and
December 6, 2024.
If any party files a notice of intent to
file a rebuttal case by November 27,
2024, but no surrebuttal testimony will
be presented, then the hearing of the
Postal Service’s direct case shall begin
December 11, 2024, with additional
days reserved on December 12, 2024,
and December 13, 2024.
If any party files a notice of intent to
file a rebuttal case by November 27,
2024, and the Commission approves the
presentation of surrebuttal testimony,
then the hearing of the Postal Service’s
direct case shall begin December 18,
2024, and the hearing of the surrebuttal
case shall end December 20, 2024.
M. Presentation of Evidence and
Testimony
Evidence and testimony shall be in
writing and may be accompanied by a
trial brief or legal memoranda. 39 CFR
3020.122(e)(1). Whenever possible and
particularly for factual or statistical
evidence, written cross-examination
will be used in lieu of oral crossexamination. Id. section 3020.122(e)(2).
Oral cross-examination will be
allowed to clarify written crossexamination and/or to test assumptions,
conclusions, or other opinion evidence.
Id. section 3020.122(e)(3). Assuming
that no rebuttal case is filed, any party
that intends to conduct oral crossexamination shall file a notice of intent
to do so by November 25, 2024. The
notice must include an estimate of the
amount of time requested for each
witness.
In lieu of submitting hard copy
documents to the Commission as
contemplated by 39 CFR 3020.122(e)(2),
each party shall file a single document
titled ‘‘Notice of Designations’’
containing a list for each witness that
identifies the materials to be designated
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(without the responses). The filing party
shall arrange its list for each witness in
alphabetical order by the name of the
party propounding the interrogatory
followed by numerical order of the
interrogatory. For example:
Designations for Witness One
ABC/USPS–T1–1
ABC/USPS–T1–3
DEF/USPS–T1–1
GHI/USPS–T1–3
JKL/USPS–T1–2
Designations for Witness Two
DEF/USPS–T2–4
GHI/USPS–T2–2
Assuming that no rebuttal case is
filed, each party shall file its Notice of
Designations by November 26, 2024.
Assuming that no rebuttal case is
filed, on December 2, 2024, the Postal
Service shall file a ‘‘Notice of
Designated Materials’’ identifying any
corrections to the testimony or
designated materials for each witness
sponsored by the Postal Service.
Attached to that notice shall be an
Adobe PDF file that contains the
witness’s designated written responses
in alphabetical order by the name of the
party propounding the interrogatory
followed by numerical order of the
interrogatory (with any corrections to
the responses highlighted). The Postal
Service shall also contemporaneously
file any corrections to testimony (with
those corrections highlighted).
N. Presentation of Argument
1. General Procedures
Any person that has intervened in
Docket No. N2024–1 (and thereby
formally became a party to this
proceeding) may submit written
argument by filing a brief or a statement
of position; they also may request to
present oral argument at the hearing.
See 39 CFR 3020.123; see also 39 CFR
3010.142(a). Any person that has not
intervened in Docket No. N2024–1 may
submit written argument by filing a
statement of position. See 39 CFR
3020.123(g); see also 39 CFR
3010.142(a).
2. Presentation of Written Argument
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A brief is a written document that
addresses relevant legal and evidentiary
issues for the Commission to consider
and must adhere to the requirements of
39 CFR 3020.123(a)–(f). A statement of
position is a less formal version of a
brief that describes the filer’s position
on the Request and the information on
the existing record in support of that
position. See 39 CFR 3020.123(g).
a. Briefing Deadlines
Assuming that no rebuttal case is
filed, initial briefs are due December 12,
2024, and reply briefs are due December
19, 2024. If any party files a notice
confirming its intent to file a rebuttal
case by November 27, 2024, then the
briefing schedule may be revised.
b. Deadline for Statement of Position
Any interested person, including
anyone that has not filed a notice of
intervention and become a party to this
proceeding, may file a statement of
position. See 39 CFR 3020.123(g); see
also 39 CFR 3010.142(a). A statement of
position is limited to the existing record
and may not include any new
evidentiary material. See 39 CFR
3020.123(g). Filings styled as a brief or
comments, conforming with the content
and timing requirements, shall be
deemed statements of positions. Any
statement of position is due December
12, 2024.
3. Request To Present Oral Argument
Oral argument has not historically
been part of N-cases; the Commission
would only grant a request to present
oral argument upon an appropriate
showing of need by the presenting
party. See Order No. 2080 at 53.
Assuming that no rebuttal case is filed,
any party may file a request to present
oral argument by November 25, 2024.
O. The Commission’s Advisory Opinion
In section IV.D., the Commission
stated that it found good cause to
modify the procedural schedule such
that the Commission shall issue its
advisory opinion within 120 days of the
filing of the Request. Therefore, absent
a determination of good cause for
further extension, the Commission shall
issue its advisory opinion in this
proceeding by January 31, 2025. ‘‘The
opinion shall be in writing and shall
include a certification by each
Commissioner agreeing with the
opinion that in his [or her] judgment the
opinion conforms to the policies
established under [title 39, United
States Code].’’ 39 U.S.C. 3661(c). The
advisory opinion shall address the
specific changes proposed by the Postal
Service in the nature of postal services.
See 39 CFR 3020.102(b). The
Commission encourages the Postal
Service to consider the
recommendations from the advisory
opinion before moving forward with
implementation.
P. Public Representative
Pursuant to 39 U.S.C. 3661(c), Ping
Gong shall continue to serve as an
officer of the Commission (Public
Representative) to represent the
interests of the general public in this
proceeding. See Order No. 7414 at 3.
V. Ordering Paragraphs
It is ordered:
1. The procedural schedule for this
proceeding is set forth below the
signature of this Order.
2. Pursuant to 39 CFR 3010.106 and
3020.122(b), the Commission appoints
Stephanie A. Quick to serve as presiding
officer in Docket No. N2024–1, effective
immediately.
3. Stephanie A. Quick is authorized to
propound formal discovery requests
upon any party, at her discretion. The
numerical limitation on interrogatories
appearing in 39 CFR 3020.117(a) shall
not apply to the Presiding Officer.
4. Stephanie A. Quick is authorized to
rule on procedural issues such as
motions for late acceptance and
discovery-related matters such as
motions to be excused from answering
discovery requests.
5. Stephanie A. Quick is authorized to
make other rulings in this Docket not
otherwise specifically reserved to the
Commission according to 39 CFR 3020
and 3010.106.
6. Pursuant to 39 U.S.C. 3661(c), Ping
Gong shall continue to serve as an
officer of the Commission (Public
Representative) to represent the
interests of the general public in this
proceeding.
7. The Secretary shall arrange for
publication of this Order in the Federal
Register.
By the Commission.
Erica A. Barker,
Secretary.
PROCEDURAL SCHEDULE FOR DOCKET NO. N2024–1
[Established by the Commission, October 8, 2024]
Technical Conference Dates:
Deadline to Email Registration@prc.gov to Register to Participate in the Live Technical Conference via
Microsoft Teams.
Filing of the Postal Service’s Materials (if any) for the Technical Conference ..........................................
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October 15, 2024.
October 15, 2024.
17OCN1
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Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices
PROCEDURAL SCHEDULE FOR DOCKET NO. N2024–1—Continued
[Established by the Commission, October 8, 2024]
Technical Conference (live via Microsoft Teams) ......................................................................................
ddrumheller on DSK120RN23PROD with NOTICES1
Intervention Deadline:
Filing of Notice of Intervention ....................................................................................................................
Discovery Deadlines for the Postal Service’s Direct Case:
Last Filing of Discovery Requests ..............................................................................................................
Filing of the Postal Service’s Answers to Discovery ..................................................................................
Deadlines in Preparation for Hearing (assuming no rebuttal case):
Filing of Notice Confirming Intent to Oral Conduct Cross-Examination .....................................................
Filing of Request to Present Oral Argument ..............................................................................................
Filing of Notice of Designations (Parties) ...................................................................................................
Filing of Notices of Designated Materials (Postal Service) ........................................................................
Rebuttal Case Deadlines (if applicable):
Filing of Notice Confirming Intent to File a Rebuttal Case .........................................................................
Filing of Rebuttal Case ...............................................................................................................................
Surrebuttal Case Deadlines (if applicable):
Filing of Motion for Leave to File Surrebuttal Case ...................................................................................
Filing of Response to Motion for Leave to File Surrebuttal Case ..............................................................
Filing of Surrebuttal Case (if authorized) ....................................................................................................
Hearing Dates:
Hearings (with no Rebuttal Case) ..............................................................................................................
Hearings (with Rebuttal Case, but no authorized Surrebuttal Case) .........................................................
Hearings (with Rebuttal Case and authorized Surrebuttal Case) ..............................................................
Briefing Deadlines:
Filing of Initial Briefs (with no Rebuttal Case) ............................................................................................
Filing of Reply Briefs (with no Rebuttal Case) ...........................................................................................
Statement of Position Deadline:
Filing of Statement of Position (with no Rebuttal Case) ............................................................................
Advisory Opinion Deadline:
Filing of Advisory Opinion ...........................................................................................................................
Docket N2024–1 Template To Attach
To Motion for Access to Non-Public
Material Protective Conditions
Statement
The Postal Service requests
confidential treatment of non-public
materials identified as lll (nonconfidential description of non-public
materials) (hereinafter ‘‘these
materials’’) in Commission Docket No.
N2024–1. lll (name of participant
filing motion) (hereinafter ‘‘the
movant’’) requests access to these
materials related to Commission Docket
No. N2024–1 (hereinafter ‘‘this matter’’).
The movant has provided to each
person seeking access to these materials:
Æ This Protective Conditions
Statement;
Æ The Certification to Comply with
Protective Conditions;
Æ The Certification of Compliance
with Protective Conditions and
Termination of Access; and
Æ The Commission’s rules applicable
to access to non-public materials filed in
Commission proceedings (subpart C of
part 3011 of the U.S. Code of Federal
Regulations).
Each person (and any individual
working on behalf of that person)
seeking access to these materials has
executed a Certification to Comply with
Protective Conditions by signing in ink
or by typing /s/ before his or her name
in the signature block. The movant
VerDate Sep<11>2014
18:31 Oct 16, 2024
Jkt 265001
attaches the Protective Conditions
Statement and the executed
Certification(s) to Comply with
Protective Conditions to the motion for
access filed with the Commission.
The movant and each person seeking
access to these materials agree to
comply with the following protective
conditions:
1. In accordance with 39 CFR
3011.303, the Commission may impose
sanctions on any person who violates
these protective conditions, the persons
or entities on whose behalf the person
was acting, or both.
2. In accordance with 39 CFR
3011.300(b), no person involved in
competitive decision-making for any
individual or entity that might gain
competitive advantage from using these
materials shall be granted access to
these materials. Involved in competitive
decision-making includes consulting on
marketing or advertising strategies,
pricing, product research and
development, product design, or the
competitive structuring and
composition of bids, offers or proposals.
It does not include rendering legal
advice or performing other services that
are not directly in furtherance of
activities in competition with an
individual or entity having a proprietary
interest in the protected material.
3. In accordance with 39 CFR
3011.302(a), a person granted access to
PO 00000
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October 16, 2024, at 1:00 p.m.
Eastern Time (ET).
October 21, 2024.
November 5, 2024.
November 12, 2024.
November
November
November
December
25, 2024.
25, 2024.
26, 2024.
2, 2024.
November 27, 2024.
December 4, 2024.
December 6, 2024.
December 10, 2024.
December 13, 2024.
December 4 to 6, 2024.
December 11 to 13, 2024.
December 18 to 20, 2024.
December 12, 2024.
December 19, 2024.
December 12, 2024.
January 31, 2025.
these materials may not disseminate
these materials in whole or in part to
any person not allowed access pursuant
to 39 CFR 3011.300(a) (Commission and
court personnel) or 3011.301 (other
persons granted access by Commission
order) except in compliance with:
a. Specific Commission order,
b. Subpart B of 39 CFR 3011
(procedure for filing these materials in
Commission proceedings), or
c. 39 CFR 3011.305 (production of
these materials in a court or other
administrative proceeding).
4. In accordance with 39 CFR
3011.302(b) and (c), all persons granted
access to these materials:
a. Must use these materials only
related to this matter; and
b. Must protect these materials from
any person not authorized to obtain
access under 39 CFR 3011.300 or
3011.301 by using the same degree of
care, but no less than a reasonable
degree of care, to prevent the
unauthorized disclosure of these
materials as those persons, in the
ordinary course of business, would be
expected to use to protect their own
proprietary material or trade secrets and
other internal, confidential,
commercially sensitive, and privileged
information.
5. The duties of each person granted
access to these materials apply to all:
E:\FR\FM\17OCN1.SGM
17OCN1
83718
Federal Register / Vol. 89, No. 201 / Thursday, October 17, 2024 / Notices
a. Disclosures or duplications of these
materials in writing, orally,
electronically, or otherwise, by any
means, format, or medium;
b. Excerpts from, parts of, or the
entirety of these materials;
c. Written materials that quote or
contain these materials; and
d. Revised, amended, or supplemental
versions of these materials.
6. All copies of these materials will be
clearly marked as ‘‘Confidential’’ and
bear the name of the person granted
access.
7. Immediately after access has
terminated pursuant to 39 CFR
3011.304(a)(1), each person (and any
individual working on behalf of that
person) who has obtained a copy of
these materials must execute the
Certification of Compliance with
Protective Conditions and Termination
of Access. In compliance with 39 CFR
3011.304(a)(2), the movant will attach
the executed Certification(s) of
Compliance with Protective Conditions
and Termination of Access to the notice
of termination of access filed with the
Commission.
8. Each person granted access to these
materials consents to these or such other
conditions as the Commission may
approve.
Respectfully submitted,
/s/
lllllllllllllllllll
Attorney/Non-Attorney Representative
for
(signature of representative)
(print name of representative)
(address line 1 of representative)
(address line 2 of representative)
(telephone number of representative)
(e-mail address of representative)
(choose the appropriate response)
(name of the movant)
You may delete the instructional text
to complete this form. This form may be
filed as an attachment to the motion for
access to non-public materials under 39
CFR 3011.301(b)(5).
ddrumheller on DSK120RN23PROD with NOTICES1
Certification To Comply With
Protective Conditions
The Postal Service requests
confidential treatment of non-public
materials identified as lll (nonconfidential description of non-public
materials) (hereinafter ‘‘these
materials’’) filed in Commission Docket
No. N2024–1.
lll (name of participant filing
motion) requests that the Commission
grant me access to these materials to use
related to Docket No. N2024–1
(hereinafter ‘‘this matter’’). I certify that:
Æ I have read and understand the
Protective Conditions Statement and
VerDate Sep<11>2014
18:31 Oct 16, 2024
Jkt 265001
this Certification to Comply with
Protective Conditions;
Æ I am eligible to receive access to
these materials because I am not
involved in competitive decisionmaking for any individual or entity that
might gain competitive advantage from
using these materials; and
Æ I will comply with all protective
conditions established by the
Commission.
/s/
lllllllllllllllllll
(signature of individual receiving
access)
(print name of individual receiving
access)
(title of individual receiving access)
(employer of individual receiving
access)
(name of the participant filing the
motion)
(date)
You may delete the instructional text
to complete this form. This form may be
filed as an attachment to the motion for
access to non-public materials under 39
CFR 3011.301(b)(6).
[FR Doc. 2024–23853 Filed 10–16–24; 8:45 am]
BILLING CODE 7710–FW–P
POSTAL REGULATORY COMMISSION
and K2025–45; MC2025–47 and K2025–46;
MC2025–48 and K2025–47; MC2025–49 and
K2025–48; MC2025–50 and K2025–49;
MC2025–51 and K2025–50; MC2025–52 and
K2025–51; MC2025–53 and K2025–52;
MC2025–54 and K2025–53; MC2025–55 and
K2025–54; MC2025–56 and K2025–55;
MC2025–57 and K2025–56; MC2025–59 and
K2025–57; MC2025–60 and K2025–58;
MC2025–61 and K2025–59; MC2025–62 and
K2025–60]
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: October 18,
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.
SUMMARY:
PO 00000
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Fmt 4703
Sfmt 4703
FOR FURTHER INFORMATION CONTACT:
David A. Trissell, General Counsel, at
202–789–6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Public Proceeding(s)
III. Summary Proceeding(s)
I. Introduction
Pursuant to 39 CFR 3041.405, the
Commission gives notice that the Postal
Service filed request(s) for the
Commission to consider matters related
to Competitive negotiated service
agreement(s). The request(s) may
propose the addition of a negotiated
service agreement from the Competitive
product list or the modification of an
existing product currently appearing on
the Competitive product list.
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
Section II identifies the docket
number(s) associated with each Postal
Service request, if any, that will be
reviewed in a public proceeding as
defined by 39 CFR 3010.101(p), the title
of each such request, the request’s
acceptance date, and the authority cited
by the Postal Service for each request.
For each such 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 and 39 CFR 3000.114 (Public
Representative). Section II also
establishes comment deadline(s)
pertaining to each such request.
The Commission invites comments on
whether the Postal Service’s request(s)
identified in Section II, if any, are
consistent with the policies of title 39.
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 3041.
Comment deadline(s) for each such
request, if any, appear in Section II.
Section III identifies the docket
number(s) associated with each Postal
Service request, if any, to add a
standardized distinct product to the
Competitive product list or to amend a
standardized distinct product, the title
of each such request, the request’s
acceptance date, and the authority cited
by the Postal Service for each request.
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\17OCN1.SGM
17OCN1
Agencies
[Federal Register Volume 89, Number 201 (Thursday, October 17, 2024)]
[Notices]
[Pages 83708-83718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23853]
=======================================================================
-----------------------------------------------------------------------
POSTAL REGULATORY COMMISSION
[Docket No. N2024-1; Order No. 7695]
Service Standard Changes
AGENCY: Postal Regulatory Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commission is acknowledging a recently-filed Postal
Service request for an advisory opinion regarding planned changes to
its processing and transportation networks. This document invites
public comments on the request and addresses several related procedural
steps.
DATES: Notices of intervention are due: October 21, 2024; Live WebEx
Technical Conference: October 16, 2024, at 1 p.m., eastern daylight
time, virtual.
ADDRESSES: Submit notices of intervention electronically via the
Commission's Filing Online system at https://www.prc.gov. Persons
interested in intervening who cannot submit their views electronically
should contact the person identified in the FOR FURTHER INFORMATION
CONTACT: David A. Trissell, General Counsel, at 202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Pre-Filing Issues
III. The Request
IV. Initial Administrative Actions
V. Ordering Paragraphs
I. Introduction
On October 4, 2024, the Postal Service filed a request for an
advisory opinion from the Commission regarding planned changes to its
processing and transportation networks.\1\ In particular, the Postal
Service plans to create a nationwide network of Regional Processing and
Distribution Centers (RPDCs) and Local Processing Centers (LPCs). Id.
at 3. The Postal Service states that this initiative will ``increase
throughput, gain productivity, and increase asset utilization across
the country.'' Id. Additionally, the Postal Service intends to
implement its Regional Transportation Optimization (RTO) initiative on
a nationwide basis. Id. The Postal Service states that the RTO
initiative will ``improve the efficiency and velocity of the processing
network.'' Id. The Postal Service estimates that these two initiatives
will allow it ``to achieve estimated cost savings of between $3.6
billion and $3.7 billion on an annual basis once fully implemented.''
Id.
---------------------------------------------------------------------------
\1\ United States Postal Service's Request for an Advisory
Opinion on Changes in the Nature of Postal Services, October 4, 2024
(Request). The Postal Service filed the instant Request at the
direction of the Commission, following the Postal Service's initial
presentation of these proposed changes as part of the changes
associated with the Delivering for America Plan. See Docket No.
PI2023-4, Order Directing Postal Service to Show Cause or File a
Nature of Service Proceeding Regarding Certain Delivering for
America Initiatives, April 26, 2024 (Order No. 7061).
---------------------------------------------------------------------------
The Postal Service also proposes to revise its service standards
``to align with these operational initiatives. . . .'' Id.
Specifically, the Postal Service will
[[Page 83709]]
``transition to 5-Digit to 5-Digit ZIP Code service standards'' that
reflect ``the three operational legs applicable to the movement of mail
and packages: collection to origin processing (Leg 1), origin
processing to destination processing (Leg 2), and destination
processing to delivery (Leg 3).'' Id. at 4. The Postal Service asserts
that despite these changes, it will preserve the existing day ranges
for First-Class Mail, which is currently 1-5 days, and USPS Ground
Advantage, which is 2-5 days. Id. Additionally, the Postal Service
intends to ``transition the service standards for end-to-end USPS
Marketing Mail and USPS Package Services so that they are based on the
standards for First-Class Mail and USPS Ground Advantage,'' which will
shorten the day ranges for those products as compared to current
standards. Id. The Postal Service states that ``[s]ome mail and
packages will . . . have a service expectation that is longer than the
current expectation (although still within the current day-ranges)'' if
its originating 5-Digit ZIP Code is subject to RTO. Id. at 5. Finally,
the Postal Service states that it will also exclude Sundays and
holidays as transit days in these new service standards. Id.
The intended effective date of the Postal Service's planned changes
is no earlier than 90 days after the filing of the Request. Id. at 48.
The Request was filed pursuant to 39 U.S.C. 3661 and 39 CFR part 3020.
Before issuing its advisory opinion, the Commission shall accord an
opportunity for a formal, on-the-record hearing pursuant to 5 U.S.C.
556 and 557. 39 U.S.C. 3661(c). This Order provides information on the
Postal Service's planned changes, explains and establishes the process
for the on-the-record hearing, and lays out the procedural schedule to
be followed in this case.
II. Pre-Filing Issues
On August 22, 2024, the Postal Service filed a notice of its intent
to conduct a pre-filing conference regarding its plans to transform its
processing and transportation networks and to revise service standards
to align with these changes.\2\
---------------------------------------------------------------------------
\2\ Notice of Pre-Filing Conference, August 22, 2024, at 1.
---------------------------------------------------------------------------
On August 26, 2024, the Commission issued Order No. 7414, which
established Docket No. N2024-1 to consider the Postal Service's
proposed changes, notified the public concerning the Postal Service's
pre-filing conference, and appointed a Public Representative.\3\ The
Postal Service held its pre-filing conference virtually on September 5,
2024, at 1:00 p.m. Eastern Time (ET). See Request at 49. The Postal
Service certifies that it has made a good faith effort to address
concerns of interested persons about the Postal Service's proposal
raised at the pre-filing conference. See id.
---------------------------------------------------------------------------
\3\ Notice and Order Concerning the Postal Service's Pre-Filing
Conference, August 26, 2024 (Order No. 7414).
---------------------------------------------------------------------------
III. The Request
A. The Postal Service's Planned Changes
1. Processing and Transportation Networks
Currently, the Postal Service's legacy processing network consists
of a mix of Processing and Distribution Centers (P&DCs) and Network
Distribution Centers (NDCs), combined with ``numerous ancillary
facilities . . . .'' Id. at 13. As a result of the current processing
network facilities' conditions and age, their number and the piecemeal
and ad hoc nature of their implementation, and the lack of operational
standardization necessary to address the processing of mail and
packages, the Postal Service determined that it must redesign the
legacy network and ``construct a network that enables [it] to handle
mail and packages in a precise, efficient, and integrated manner. . .
.'' Id. at 13-14. The proposed processing network will be designed
using a ``regional concept,'' and consist of two standardized facility
types: (1) Regional Processing and Distribution Centers (RPDCs) and (2)
Local Processing Centers (LPCs). Id. at 14.
RPDCs will manage ``the flow of mail and packages that originate or
destinate in that region.'' Id. at 15. They will ``perform originating
sortation operations for letters, flats, and packages to the 3-digit
ZIP Code level, for dispatch to the rest of the country.'' Id. They
will also ``engage in cross-docking and sortation operations for
destinating letters, flats, and parcels for dispatch to a LPC.'' Id.
Finally, they will ``serve as intermediate consolidation points for
volume that is traveling across the country (known as Regional Transfer
Hub (RTH) operations).'' Id.
LPCs will be designed to ``handle destinating letter, flat, and
package sortation operations for designated 3-Digit ZIP Codes within a
region, for dispatch to Sorting and Delivery Centers (S&DCs) and
delivery units.'' Id. at 16. Some LPCs might ``sort and/or cross-dock
carrier route bundles of flats to S&DCs and delivery units'' or perform
``certain originating operations'' as designated by the Postal Service.
Id. They will also act as a consolidation point ``for all volume types
coming from the delivery network on the way to the RPDC.'' Id.
Some LPCs might be co-located with RPDCs and some RPDC operations
might be located ``in a single building or a campus of two or more
buildings'' based on what the Postal Service determines is most
efficient and cost-effective. Id. at 15-16. The Postal Service notes
that each of the functions these new facility categories ``are not
rigid, and may be subject to varying adjustments and configurations
based on local operational considerations . . . .'' Id. at 16. The
Postal Service intends to make these network changes on a region-by-
region basis over the course of multiple years. Id.
In conjunction with these new facilities, the Postal Service also
intends to implement its Regional Transportation Optimization (RTO)
initiative on a nationwide basis. Id. at 21. While, according to the
Postal Service, ``[t]he volume of mail collected through [its] rental
facilities (including mail collected on carrier routes and entered at
Post Offices) has declined substantially in recent decades[,]'' it has
not ``fundamentally adjusted'' its associated collection processes and
transportation network to account for the decline. Id. at 19. This has
resulted in numerous transportation and processing inefficiencies as
the Postal Service has continued its process of transporting
destinating mail and packages from the processing network to collection
or delivery facilities in the morning and transporting originating mail
from collection or delivery facilities to the processing network in the
afternoon. Id. at 19-20.
Instead, under RTO, ``certain collection/delivery facilities will
have their destinating mail dropped off, and their originating mail
picked up, on the same transportation route.'' Id. at 22. The Postal
Service indicates that it will designate 5-Digit ZIP Codes for RTO
``when the facility from which the collection mail and packages are
dispatched is more than 50 miles from the RPDC campus.'' Id. According
to the Postal Service, RTO will enable it to redesign its
transportation routes to reduce the number of trips and layovers and
eliminate unnecessary or underutilized trips. Id. at 23.
2. Service Standards
Currently, the Postal Service's First-Class Mail and USPS Ground
Advantage service standards ``are predicated on
[[Page 83710]]
plant-to-plant (i.e., on a 3-Digit to 3-Digit ZIP Code) driving
distances.'' Id. at 27. They do not consider the variations in
transportation operations that are required to move volume from the
collection point to the processing network. Id. The Postal Service
proposes to ``transition to 5-Digit to 5-Digit ZIP Code (i.e. Post
Office to Post Office) service standards that maintain the existing
delivery day ranges for both First-Class Mail and USPS Ground Advantage
. . . .'' Id. at 28. The Postal Service also proposes to ``transition
the service standards for end-to-end USPS Marketing Mail and Package
Services so that they are based on the standards for First-Class Mail
and USPS Ground Advantage, respectively, which will result in a shorter
day range for these products when compared to the current service
standards.'' Id.
Under its proposed approach for inter-RPDC First-Class Mail and
USPS Ground Advantage, the Postal Service would segment volume into
three legs: collection to origin processing (Leg 1); origin processing
facility to destination processing facility (Leg 2); and destination
processing facility to delivery (Leg 3). Id. at 30. The proposed
service standards ``will be based on how many days cumulatively apply
to a particular mailpiece across the three operational legs.'' Id. For
Leg 1, the Postal Service will ``align our standards with RTO'' and
apply 1 day to pieces that ``originate in a 5-Digit ZIP Code more than
50 miles from the RPDC, meaning RTO is being applied, and 0 days will
apply to pieces originating in other 5-Digit ZIP Codes.'' Id.
For Leg 2, the Postal Service will ``apply [2-5] days based on the
travel distance between the originating and destinating processing
plants'' using the new network outlined above. Id. at 30-31. The
transit paths will be updated to reflect the new network and ``measure
the distance between the Origin RPDC and the Destination RPDC and then
the distance between the Destination RPDC and the Destination LPC.''
Id. at 34. With regard to Leg 2, the Postal Service states that because
RTO and the new and more efficient network will improve arrival
profiles, ``each of the existing service standard bands will expand by
four hours for First-Class Mail.'' Id. at 34-36. No additional days
will be added for Leg 3, ``which is the same as the current
standards.'' Id. at 30.
The Leg 1 rules will not apply to ``any products entered at a RPDC,
Presort First-Class Mail, or any destination-entered volume.'' Id. at
32. The Postal Service proposes to add an ``extra day for volume that
is entered in a 5-Digit ZIP Code subject to RTO[ ]'' for its Priority
Mail and Priority Mail Express products but still ``intends for
Priority Mail to remain a 1-3 day product,'' and anticipates that
``Priority Mail Express will be a 1-3 day (guaranteed) product.'' Id.
at 33-34. Finally, for mail and packages that originate and destinate
within the same RPDC region, ``[t]he proposed service standards would
expand the geographic scope of turnaround volume (i.e., volume
originating and destinating within a facility's service area).'' Id. at
37. Currently, this ``volume receives a two-day standard.'' Id. Under
the proposed standards, intra-LPC and intra-RPDC volume will either be
subject to a 2 or 3-day standard depending on whether the originating
volume is from a 5-digit ZIP Code beyond 50 miles of the cancellation
location. Id. ``The standards for end-to-end Marketing Mail,
Periodicals, and Package Services within a region will also be based on
these standards.'' Id. The Postal Service outlines the proposed
standards as follows:
[GRAPHIC] [TIFF OMITTED] TN17OC24.003
Id. at 31.
Finally, the Postal Service intends to change how it measures
performance under these standards. Id. at 40. ``Specifically, the
Postal Service will not count Sundays or holidays as transit days for
volume entered on a Saturday or the day before a holiday.'' Id. It will
also ``change the Service Performance Measurement system to enable
measurement at the 5-Digit ZIP Code level . . . .'' Id.
B. The Postal Service's Position
1. Processing and Transportation Networks
The Postal Service asserts that these network changes will ``enable
significant cost reductions in both processing operations and in [its]
transportation network, while improving the work environment for [its]
employees.'' Id. at 18. It will enable the Postal Service to more
efficiently balance its use of ground and air transportation and should
result in a reduced number of surface and air nodes. Id. The Postal
Service states that these modifications will eliminate ``unnecessary
trips'' and increase utilization of the remaining trips. Id. It will
also allow the Postal Service to further reduce costs through the
elimination of ``excess facilities.'' Id.
Additionally, according to the Postal Service, the implementation
of the RTO initiative on a nationwide basis will ``result in
significant improvements in transportation and processing operations.''
Id. at 22. It will result in a reduced number of trips and layovers,
which will in turn reduce carbon emissions and increase utilization of
the Postal Service's transportation
[[Page 83711]]
resources. Id. at 23. The Postal Service also states that the RTO
initiative will improve ``the efficiency and velocity of the processing
network,'' by creating efficient ``operating windows in originating and
processing facilities'' because non-RTO volume may be processed and
dispatched earlier than under its current transportation policy. Id.
Overall, the Postal Service estimates that it will save ``between
$3.6 and $3.7 billion annually in Leg 1 and Leg 2 transportation costs,
mail and package processing costs, and facility costs[ ]'' through the
implementation of these two initiatives. Id. at 23. Table 1 below
details the Postal Service's estimated annual cost savings, organized
by category. The Postal Service cautions that because it intends to
implement these initiatives ``through a deliberate implementation plan
over time,'' that not all savings will be achieved immediately. Id. at
26. Thus, ``[t]his approach reasonably estimates the expected future
savings from these initiatives when fully implemented.'' Id.
Table 1--Estimated Annual Cost Savings by Category
------------------------------------------------------------------------
Category Estimated annual cost savings
------------------------------------------------------------------------
Regional Transportation.............. $651 million.
Network Transportation............... $1.8 billion ($1.1 billion from
surface transportation and $701
million from air
transportation).
Mail and Package Processing.......... $1.1-$1.2 billion.
Facilities........................... $81 million.
------------------------------------------------------------------------
Id. at 24-25.
2. Service Standards
The Postal Service states that under the new standards, ``the
majority of overall market-dominant volume'' will have ``either the
same service standards . . . or an accelerated standard.'' Id. at 38.
And while the specific volume impacts were filed under seal for
competitive products, the Postal Service states that ``the overall
impact of these proposed changes is that the majority of packages will
either have the same service standard or a better standard, consistent
with the fact that a majority of package volume is entered in ZIP Codes
that are within 50 miles of'' the processing network. Id. at 40. Table
2 below details ``the impact on all market-dominant volume, including
end-to-end and destination entry. Id. at 38.
Table 2--Estimated Volume Changes Under Proposed Service Standards
------------------------------------------------------------------------
Products Estimated % of volume change
------------------------------------------------------------------------
All Market Dominant Products......... 83% unchanged, 11% upgraded, 6%
downgraded.
First-Class Mail..................... 75% unchanged, 14% upgraded, 11%
downgraded.
Marketing Mail....................... 90% unchanged, 8% upgraded, 2%
downgraded.
Periodicals.......................... 93% unchanged, 4% upgraded, 3%
downgraded.
Package Services \4\................. 79% unchanged, 12% upgraded, 9%
downgraded.
------------------------------------------------------------------------
Id. at 38-39.
---------------------------------------------------------------------------
\4\ Package Services refers to a Market Dominant class of mail
products intended for non-urgent delivery of books, catalogs, and
other printed materials such as Media Mail/Library Mail. It does not
refer to the Postal Service's Competitive package products such as
USPS Ground Advantage.
[GRAPHIC] [TIFF OMITTED] TN17OC24.004
[[Page 83712]]
Id. at 38.
C. The Postal Service's Direct Case
The Postal Service is required to file its direct case along with
the Request. See 39 CFR 3020.114. The Postal Service's direct case
includes all the prepared evidence and testimony upon which the Postal
Service proposes to rely on in order to establish that its proposal
accords with and conforms to the policies of title 39, United States
Code. See id. The Postal Service provides the direct testimony of five
witnesses and identifies a sixth individual to serve as its
institutional witness and provide information relevant to the Postal
Service's proposal that is not provided by other Postal Service
witnesses. See Request at 50-52. Table 3 below details the Postal
Service's direct case, organized by witness.
Table 3--Postal Service Witnesses
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
1. Stephen Hagenstein.................. Description of the proposed USPS-T-1.
revisions to service standards,
including the three legs.
Explanation of inefficiencies of
current network's first leg.
Description of how RTO
initiative corrects those inefficiencies.
Anticipated flow of mail and
package volume within the RPDC/LPC
network.
Estimated impact of proposed
service standards on 5-Digit ZIP pairs.
2. Arslan Saleem....................... Explanation of how the proposed USPS-T-2.
changes will be addressed in measurement
(including through revisions to the
Service Performance Measurement (SPM)
Plan).
Explanation of the exclusion of
Sundays and holidays as transit days.
Estimate of impacts on mail
volumes.
Explanation of performance
measurement based on 5-Digit ZIP code.
3. Leslie Johnson-Frick................ Description of how RTO changes USPS-T-3.
will not impact local mail collection
and delivery.
Explanation of how local office
operations might change to accommodate
the RTO initiative.
Explanation of how changes will
be communicated to customers.
Explanation of measures to
ensure timely delivery of Election Mail.
4. Gregory White....................... Explanation of how the RPDC/LPC USPS-T-4.
network changes and RTO initiative will
improve processing effectiveness and
produce cost savings.
Description of the standard
operating procedures for the RPDCs and
LPCs.
5. Curtis Whiteman..................... Discussion of the estimated cost USPS-T-5.
savings.
Description of the methodology
used to calculate the estimated savings.
6. Sharon Owens........................ Institutional witness capable of None filed.
providing information relevant to the
Postal Service's proposal that is not
provided by other Postal Service
witnesses.
----------------------------------------------------------------------------------------------------------------
Id. at 51-52.
Additionally, the Postal Service filed 17 library references, 8 of
which are available to the public and 9 of which are designated as non-
public material.
Table 4--Postal Service Library References
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
USPS-LR-N2024-1-1....................... RTO Determination Based on Distance from Stephen Hagenstein.
RPDC.
USPS-LR-N2024-1-2....................... Planned RPDCs and LPCs.................... Stephen Hagenstein.
USPS-LR-N2024-1-3....................... Service Standard Changes to Market Stephen Hagenstein.
Dominant Products.
USPS-LR-N2024-1-4....................... Revised USPS Service Performance Arslan Saleem.
Measurement Plan.
USPS-LR-N2024-1-5....................... Revised Implementation Document for Arslan Saleem.
Service Performance Measurement Plan.
USPS-LR-N2024-1-6....................... Market Dominant Mail Volume Impact Arslan Saleem.
Analysis in Future State.
USPS-LR-N2024-1-7....................... Legacy Processing Assignments............. Gregory White.
USPS-LR-N2024-1-8....................... Facilities and Operating Cost Savings from Gregory White.
STC Insourcing.
USPS-LR-N2024-1-NP1..................... LTO Model Explanation and Pilot Results... Stephen Hagenstein.
USPS-LR-N2024-1-NP2..................... Leg 2 Modeling Inputs, Explanation and Stephen Hagenstein.
Results.
USPS-LR-N2024-1-NP3..................... Service Standard Changes to Competitive Stephen Hagenstein.
Products.
USPS-LR-N2024-1-NP4..................... Competitive Products Volume with Start-the- Arslan Saleem.
Clock on Saturday or Day Before Holiday.
USPS-LR-N2024-1-NP5..................... Competitive Product Mail Volume Impact Arslan Saleem.
Analysis in Future State.
USPS-LR-N2024-1-NP6..................... Impacts on Pharmaceutical Volume.......... Arslan Saleem.
USPS-LR-N2024-1-NP7..................... Competitive Product Volume Impact in Arslan Saleem.
Future State.
USPS-LR-N2024-1-NP8..................... LDC Productivity Rates and Workhours...... Gregory White.
USPS-LR-N2024-1-NP9..................... Site-Specific Machine Productivity Gregory White.
Information.
----------------------------------------------------------------------------------------------------------------
Note: The Postal Service filed the non-public library reference under seal (shaded in the above table),
asserting it consists of commercially sensitive business information, specifically transportation costs and
modeling, information related to the Postal Service's competitive products, and site- and machine-specific
processing capabilities and productivity rates for competitive products. See Notice of United States Postal
Service of Filing of Library References and Application for Non-Public Treatment, October 4, 2024, Application
of the United States Postal Service for Non-Public Treatment at 4-8.
IV. Initial Administrative Actions
A. General Procedures
The procedural rules in 39 CFR part 3020 apply to Docket No. N2024-
1. Before issuing its advisory opinion, the Commission shall accord an
opportunity for a formal, on-the-record hearing pursuant to 5 U.S.C.
556 and 557. 39 U.S.C. 3661(c). The Commission will sit en banc for
Docket No. N2024-1. See 39 CFR 3020.122(b). The form and manner for any
hearings to be held in Docket No. N2024-1 shall be established by
Commission Order or Presiding Officer Ruling at a later date.
B. Scope
Docket No. N2024-1 is limited in scope to the specific changes
proposed by the Postal Service in its Request. See 39 CFR 3020.102(b).
To the extent that participants raise alternative proposals and present
reasons why those alternatives may be superior to the
[[Page 83713]]
Postal Service's proposal, the Commission would interpret such
discussion as critiquing the specific changes proposed by the Postal
Service in its Request.\5\ However, the Commission would not evaluate
or opine on the merits of such alternative proposals in its advisory
opinion. See Order No. 2080 at 18. Pursuant to its discretion, the
Commission may undertake evaluation of alternatives or other issues
raised by participants in separate proceedings (such as special studies
or public inquires). See 39 CFR 3020.102(b). Moreover, any interested
person may petition the Commission to initiate a separate proceeding
(such as a rulemaking or public inquiry) at any time. See 39 CFR
3010.201(b) (initiation of notice and comment proceedings).
---------------------------------------------------------------------------
\5\ See Docket No. RM2012-4, Order Adopting Amended Rules of
Procedure for Nature of Service Proceedings Under 39 U.S.C. 3661,
May 20, 2014, at 18 (Order No. 2080).
---------------------------------------------------------------------------
C. Designation of Presiding Officer
Pursuant to 39 CFR 3010.106, the Commission appoints Stephanie A.
Quick to serve as presiding officer in Docket No. N2024-1, effective
immediately. Ms. Quick shall have the authority delegated to the
presiding officer under 39 CFR 3010.106(c), except for regulating the
course of public conferences and hearings. See 39 CFR 3010.106(c)(2).
The Commission expands Ms. Quick's authority to allow her to propound
formal discovery requests upon any party, at her discretion. The
numerical limitation on interrogatories appearing in 39 CFR 3020.117(a)
shall not apply to the presiding officer. The Commission also
authorizes the presiding officer to rule on procedural issues such as
motions for late acceptance and discovery-related matters such as
motions to be excused from answering discovery requests. The presiding
officer shall have authority to issue any ruling in this docket not
otherwise specifically reserved to the Commission by 39 CFR 3020 and
3010.106. Commissioner Ashley Poling shall preside over the technical
conference and any hearings conducted as part of this proceeding.
Commissioner Poling shall have all the authority of the presiding
officer, including but not limited to convening, adjourning, and ruling
on oral motions made during the hearings.
D. Procedural Schedule
The Commission establishes a procedural schedule, which appears
below the signature of this Order as Attachment 1. See 39 CFR 3010.151,
3020.110; see also 39 CFR part 3020 appendix A. Generally, the
procedural schedule for a nature of service proceeding requires that
the advisory opinion be issued within 90 days from the date of the
filing of the Postal Service's request. See 39 CFR 3020.110. Due to the
breadth and complexity of the Postal Service's request, as well as the
number of federal holidays that occur in the next 90 days, the
Commission finds good cause to deviate from the pro forma procedural
schedule, including extending the issuance date of the advisory opinion
to 120 days. See 39 CFR part 3020 appendix A. These dates may be
further changed if good cause is shown, if the Commission later
determines that the Request is incomplete, if the Commission determines
that the Postal Service has significantly modified the Request, or for
other reasons as determined by the Commission. See 39 CFR 3020.110(b)
and (c).
E. How To Access Material Filed in This Proceeding
1. Using the Commission's Website
The public portions of the Postal Service's filing are available
for review on the Commission's website (https://www.prc.gov). The Postal
Service's electronic filing of the Request and prepared direct evidence
effectively serves the persons who participated in the pre-filing
conference. See 39 CFR 3020.104. Other material filed in this
proceeding will be available for review on the Commission's website,
unless the information contained therein is subject to an application
for non-public treatment.
2. Using Methods Other Than the Commission's Website
The Postal Service must serve hard copies of its Request and
prepared direct evidence ``only upon those persons who have notified
the Postal Service, in writing, during the pre-filing conference(s),
that they do not have access to the Commission's website.'' 39 CFR
3020.104. If you demonstrate that you are unable to effectively use the
Commission's Filing Online system or are unable to access the internet,
then the Secretary of the Commission will serve material filed in
Docket No. N2024-1 upon you via First-Class Mail. See 39 CFR
3010.127(b) and (c). You may request physical service by mailing a
document demonstrating your need to the Office of Secretary and
Administration, Postal Regulatory Commission, 901 New York Avenue NW,
Suite 200, Washington, DC 20268-0001. Pursuant to 39 CFR 3010.127(c),
the Secretary shall maintain a service list identifying no more than
two individuals designated for physical service of documents for each
party intervening in this proceeding. Accordingly, each party must
ensure that its listing is accurate and should promptly notify the
Secretary of any errors or changes. See 39 CFR 3010.127(c).
3. Non-Public Material
The Commission's rules on how to file and access non-public
material appear in 39 CFR part 3011. Each individual seeking non-public
access must familiarize themselves with these provisions, including the
rules governing eligibility for access; non-dissemination, use, and
care of the non-public material; sanctions for violations of protective
conditions; and how to terminate or amend access. See 39 CFR 3011.300,
3011.302-.304. Any person seeking access to non-public material must
file a motion with the Commission containing the information required
by 39 CFR 3011.301(b)(1)-(4). Each motion must attach a description of
the protective conditions and a certification to comply with protective
conditions executed by each person or entity (and each individual
working on behalf of the person or entity) seeking access. 39 CFR
3011.301(b)(5)-(6). To facilitate compliance with 39 CFR
3011.301(b)(5)-(6), a template Protective Conditions Statement and
Certification to Comply with Protective Conditions appears below the
signature of this Order as Attachment 2, for completion and attachment
to a motion for access. See 39 CFR part 3011 subpart C, appendix A.
Persons seeking access to non-public material are advised that actual
notice provided to the Postal Service pursuant to 39 CFR 3011.301(b)(4)
will expedite resolution of the motion, particularly if the motion for
access is uncontested by the Postal Service.
Non-public information must be redacted from filings submitted
through the Commission's website; instead, non-public information must
be filed under seal as required by 39 CFR part 3011 subpart B.
F. How To File Material in This Proceeding
1. Using the Commission's Filing Online System
Except as provided in 39 CFR 3010.120(a),\6\ all material filed
with the
[[Page 83714]]
Commission shall be submitted in electronic format using the Filing
Online system, which is available over the internet through the
Commission's website. The Commission's website accepts filings during
the Commission's regular business hours, which are from 8:00 a.m.
through 4:30 p.m. Eastern Time (ET), except for Saturdays, Sundays, and
Federal holidays. A guide to using the Filing Online system, including
how to create an account, is available at https://www.prc.gov/how-to-participate. If you have questions about how to use the Filing Online
system, please contact the dockets clerk by email at [email protected] or
telephone at (202) 789-6800, option 2. Please be advised that the
dockets clerk can only answer procedural questions but may not provide
legal advice or recommendations.
---------------------------------------------------------------------------
\6\ The Commission's Filing Online system allows account holders
to file materials that contain non-public information. See Postal
Regulatory Commission eDockets User Guide, at 39, available at
https://www.prc.gov/sites/default/files/PRC%20eFiling%20User%20Guide_06092023.pdf. The filer must adhere to
the requirements of 39 CFR 3011 subpart B, including the requirement
to concomitantly provide an application for non-public treatment, a
redacted (public) version of the non-public materials, and an
unredacted (sealed) version of the non-public materials. See 39 CFR
3011.200(a).
---------------------------------------------------------------------------
2. Using Methods Other Than the Commission's Filing Online System
Material may be filed using a method other than the Commission's
website only if at least one of the following exceptions applies:
The material cannot reasonably be converted to electronic
format,
The filer is unable to effectively use the Commission's
Filing Online system and the document is 10 pages or fewer, or
The Secretary has approved an exception to the
requirements to use the Commission's Filing Online system based on a
showing of good cause.
39 FR 3010.120(a).
Material subject to these exceptions may be filed by mail to the
Office of Secretary and Administration, Postal Regulatory Commission,
901 New York Avenue NW, Suite 200, Washington, DC 20268-0001. The
posting of mailed materials to the Commission's website may be delayed.
G. Technical Conference
1. Date and Purpose
A technical conference will be held live via Microsoft Teams on
October 16, 2024, at 1:00 p.m. ET. The technical conference is an
informal, off-the-record opportunity to clarify technical issues as
well as to identify and request information relevant to evaluating the
Postal Service's proposed changes. See 39 CFR 3020.115(c). The
technical conference will be limited to information publicly available
in the Request. Any non-public information, including information in
non-public library references attached to the Request, should not be
raised at the technical conference. At the technical conference, the
Postal Service will make available for questioning its five witnesses
whose direct testimony was filed along with the Request and a sixth
individual to serve as its institutional witness, who will provide
information relevant to the Postal Service's proposal that is not
provided by other Postal Service witnesses. See Request at 51-52; see
also 39 CFR 3020.113(b)(6)-(7), 3020.115(b). The names and topics to
which these six individuals are prepared to address are summarized
above in section III.C., table 3, infra.
2. How To Livestream the Technical Conference
The technical conference will be broadcast to the public via
livestream, which will allow the public to view and listen to the
technical conference, as it is occurring and after. To view and listen
to the livestream, on or after 1 p.m. ET on October 16, 2024, an
individual must click on the internet link that will be identified on
the Commission's YouTube Channel, which is available at https://www.youtube.com/channel/UCbHvK-S8CJFT5yNQe4MkTiQ. Individuals do not
have to register in advance to access the livestream. Please note that
the livestream is a broadcast; therefore, there is a brief delay
(several seconds) between the technical conference being captured on
camera and being displayed to viewers of the livestream. Additionally,
please note that clicking on the livestream link will not allow an
individual the opportunity to question the Postal Service's six
witnesses. Details on how to participate in the live technical
conference event (and have the opportunity to question the Postal
Service's six witnesses) follow.
3. How To Participate in the Technical Conference
To participate in this live technical conference and have the
opportunity to ask questions of the Postal Service's six witnesses, an
individual need not formally intervene in this docket but must register
in advance as follows. Each individual seeking to participate in the
live technical conference via Microsoft Teams using an individual
device (e.g., a desktop computer, laptop, tablet, or smart phone) must
register by sending an email to [email protected], with the subject
line ``N2024-1 Conference Registration'' by October 15, 2024. In order
to facilitate orderly public participation, this email shall provide
the following information:
your first and last name;
your email address (to receive the Microsoft Teams link);
the name(s) of the Postal Service witness(es) you would
like to question and/or the topic(s) of your question(s); and
your affiliation (if you are participating in your
capacity as an employee, officer, or member of an entity such as a
corporation, association, or government agency).
The [email protected] email address is established solely for
the exchange of information relating to the logistics of registering
for, and participating in, the technical conference.\7\ No information
related to the substance of the Postal Service's Request shall be
communicated, nor shall any information provided by participants apart
from the list identified above be reviewed or considered. Only
documents filed with the Commission's docket system will be considered
by the Commission. Before the technical conference, the Commission will
email each identified individual a Microsoft Teams link, an explanation
of how to connect to the technical conference, and information
regarding the schedule and procedures to be followed.
---------------------------------------------------------------------------
\7\ Please refer to the Commission's privacy policy which is
available at https://www.prc.gov/privacy.
---------------------------------------------------------------------------
4. Availability of Materials and Recording
To facilitate discussion of the matters to be explored at the
technical conference, the Postal Service shall, if necessary, file with
the Commission any materials not already filed in Docket No. N2024-1
(such as PowerPoint presentations or Excel spreadsheets) that the
Postal Service expects to present at the technical conference by
October 15, 2024. Doing so will foster an orderly discussion of the
matters under consideration and facilitate the ability of individuals
to access these materials should technical issues arise for any
participants during the live technical conference. If feasible, the
recording will be available on the Commission's YouTube Channel at
https://www.youtube.com/channel/UCbHvK-S8CJFT5yNQe4MkTiQ.
Participants in the live technical conference, by participating,
consent to such recording and posting. Information obtained during the
technical conference or as a result of the technical conference is not
part of the decisional record, unless admitted under the
[[Page 83715]]
standards of 39 CFR 3010.322. See 39 CFR 3020.115(e).
The Commission reserves the right to cancel the technical
conference should no parties register an intent to question the Postal
Service's six witnesses.
H. How To Intervene (Become a Party to This Proceeding)
To become a party to this proceeding, a person or entity must file
a notice of intervention by October 21, 2024.\8\ This filing must
clearly and concisely state: (1) the nature and extent of the
intervenor's interest in the issues (including the postal services
used); (2) the intervenor's position on the proposed changes in
services (to the extent known); (3) whether or not the intervenor
requests a hearing; and (4) whether or not the intervenor intends to
actively participate in the hearing. See 39 CFR 3010.142(b). Page one
of this filing shall contain the name and full mailing address of no
more than two persons who are to receive service, when necessary, of
any documents relating to this proceeding. See id. A party may
participate in discovery; file testimony and evidence; conduct written
examination of witnesses; conduct limited oral cross-examination; file
briefs, motions, and objections; and present argument before the
Commission or the presiding officer. See id. sections 3010.142(a);
3020.122(e). An opposition to a notice of intervention is due within 3
days after the notice of intervention is filed. See id. section
3010.142(d)(2).
---------------------------------------------------------------------------
\8\ Neither the Public Representative nor the Postal Service
must file a notice of intervention; both are automatically deemed
parties to this proceeding. See 39 CFR 3010.142(a).
---------------------------------------------------------------------------
I. Discovery
1. Generally Applicable Discovery Procedures
Discovery requests may be propounded upon filing a notice of
intervention. Discovery that is reasonably calculated to lead to
admissible evidence is allowed. See 39 CFR 3020.116(a). Each party must
familiarize themselves with the Commission's rules appearing in 39 CFR
part 3020, including the rules for discovery in N-dockets generally and
specific to interrogatories, requests for the production of documents,
and requests for admissions. See 39 CFR 3020.116-3020.119. No party may
propound more than a total of 25 interrogatories (including both
initial and follow-up interrogatories) without prior approval by the
Commission or presiding officer.\9\
---------------------------------------------------------------------------
\9\ See 39 CFR 3020.117(a); Order No. 2080 at 42; see also
Docket No. N2021-1, Order Affirming Presiding Officer's Ruling No.
N2021-1/9, May 26, 2021, at 9 (Order No. 5901).
---------------------------------------------------------------------------
Each answer to a discovery request is due within 7 days after the
discovery request is filed.\10\ Any motion seeking to be excused from
answering any discovery request is due within 3 days after the
discovery request is filed. See 39 CFR 3020.105(b)(1). Any response to
such motion is due within 2 days after the motion is filed. See id.
section 3020.105(b)(2). The Commission expects parties to make
judicious use of discovery, objections, and motions practice, and
encourages parties to make every effort to confer to resolve disputes
informally before bringing disputes to the Commission to resolve.
---------------------------------------------------------------------------
\10\ See 39 CFR 3020.117(b)(4), 3020.118(b)(1), 3020.119(b)(1).
Filing an opposition to a notice of intervention shall not delay
this deadline. See 39 CFR 3010.142(d)(3).
---------------------------------------------------------------------------
2. Discovery Deadlines for the Postal Service's Direct Case
All discovery requests regarding the Postal Service's direct case
must be filed by November 5, 2024. All discovery answers by the Postal
Service must be filed by November 12, 2024. The parties are urged to
initiate discovery promptly, rather than to defer filing requests and
answers to the end of the period established by the Commission.
J. Rebuttal Case Deadlines
A rebuttal case is any evidence and testimony offered to disprove
or contradict the evidence and testimony submitted by the Postal
Service. A rebuttal case does not include cross-examination of the
Postal Service's witnesses or argument submitted via a brief or
statement of position. Any party that intends to file a rebuttal case
must file a notice confirming its intent to do so by November 27, 2024.
Any rebuttal case, consisting of any testimony and all materials in
support of the case, must be filed by December 4, 2024.
K. Surrebuttal Case Deadlines
A surrebuttal case is any evidence and testimony offered to
disprove or contradict the evidence and testimony submitted by the
rebutting party. A surrebuttal case does not include cross-examination
of the rebutting party's witnesses or argument submitted via a brief or
statement of position. Any party that intends to file a surrebuttal
case must obtain the Commission's prior approval and must bear the
burden of demonstrating exceptional circumstances that would warrant
granting the motion. See 39 CFR 3020.121(b). Any motion for leave to
file a surrebuttal case is due December 6, 2024. Any response to such
motion is due December 10, 2024. Any surrebuttal case, consisting of
any testimony and all materials in support of the case, must be filed
by December 13, 2024.
L. Hearing Dates
The Commission expects that this case will require no more than 1
or 2 business days for hearing, but reserves 3 business days out of an
abundance of caution and consistent with the pro forma schedule set
forth in appendix A of 39 CFR part 3020. If no party files a notice of
intent to file a rebuttal case by November 27, 2024, then the hearing
of the Postal Service's direct case shall begin December 4, 2024, with
additional days reserved on December 5, 2024, and December 6, 2024.
If any party files a notice of intent to file a rebuttal case by
November 27, 2024, but no surrebuttal testimony will be presented, then
the hearing of the Postal Service's direct case shall begin December
11, 2024, with additional days reserved on December 12, 2024, and
December 13, 2024.
If any party files a notice of intent to file a rebuttal case by
November 27, 2024, and the Commission approves the presentation of
surrebuttal testimony, then the hearing of the Postal Service's direct
case shall begin December 18, 2024, and the hearing of the surrebuttal
case shall end December 20, 2024.
M. Presentation of Evidence and Testimony
Evidence and testimony shall be in writing and may be accompanied
by a trial brief or legal memoranda. 39 CFR 3020.122(e)(1). Whenever
possible and particularly for factual or statistical evidence, written
cross-examination will be used in lieu of oral cross-examination. Id.
section 3020.122(e)(2).
Oral cross-examination will be allowed to clarify written cross-
examination and/or to test assumptions, conclusions, or other opinion
evidence. Id. section 3020.122(e)(3). Assuming that no rebuttal case is
filed, any party that intends to conduct oral cross-examination shall
file a notice of intent to do so by November 25, 2024. The notice must
include an estimate of the amount of time requested for each witness.
In lieu of submitting hard copy documents to the Commission as
contemplated by 39 CFR 3020.122(e)(2), each party shall file a single
document titled ``Notice of Designations'' containing a list for each
witness that identifies the materials to be designated
[[Page 83716]]
(without the responses). The filing party shall arrange its list for
each witness in alphabetical order by the name of the party propounding
the interrogatory followed by numerical order of the interrogatory. For
example:
Designations for Witness One
ABC/USPS-T1-1
ABC/USPS-T1-3
DEF/USPS-T1-1
GHI/USPS-T1-3
JKL/USPS-T1-2
Designations for Witness Two
DEF/USPS-T2-4
GHI/USPS-T2-2
Assuming that no rebuttal case is filed, each party shall file its
Notice of Designations by November 26, 2024.
Assuming that no rebuttal case is filed, on December 2, 2024, the
Postal Service shall file a ``Notice of Designated Materials''
identifying any corrections to the testimony or designated materials
for each witness sponsored by the Postal Service. Attached to that
notice shall be an Adobe PDF file that contains the witness's
designated written responses in alphabetical order by the name of the
party propounding the interrogatory followed by numerical order of the
interrogatory (with any corrections to the responses highlighted). The
Postal Service shall also contemporaneously file any corrections to
testimony (with those corrections highlighted).
N. Presentation of Argument
1. General Procedures
Any person that has intervened in Docket No. N2024-1 (and thereby
formally became a party to this proceeding) may submit written argument
by filing a brief or a statement of position; they also may request to
present oral argument at the hearing. See 39 CFR 3020.123; see also 39
CFR 3010.142(a). Any person that has not intervened in Docket No.
N2024-1 may submit written argument by filing a statement of position.
See 39 CFR 3020.123(g); see also 39 CFR 3010.142(a).
2. Presentation of Written Argument
A brief is a written document that addresses relevant legal and
evidentiary issues for the Commission to consider and must adhere to
the requirements of 39 CFR 3020.123(a)-(f). A statement of position is
a less formal version of a brief that describes the filer's position on
the Request and the information on the existing record in support of
that position. See 39 CFR 3020.123(g).
a. Briefing Deadlines
Assuming that no rebuttal case is filed, initial briefs are due
December 12, 2024, and reply briefs are due December 19, 2024. If any
party files a notice confirming its intent to file a rebuttal case by
November 27, 2024, then the briefing schedule may be revised.
b. Deadline for Statement of Position
Any interested person, including anyone that has not filed a notice
of intervention and become a party to this proceeding, may file a
statement of position. See 39 CFR 3020.123(g); see also 39 CFR
3010.142(a). A statement of position is limited to the existing record
and may not include any new evidentiary material. See 39 CFR
3020.123(g). Filings styled as a brief or comments, conforming with the
content and timing requirements, shall be deemed statements of
positions. Any statement of position is due December 12, 2024.
3. Request To Present Oral Argument
Oral argument has not historically been part of N-cases; the
Commission would only grant a request to present oral argument upon an
appropriate showing of need by the presenting party. See Order No. 2080
at 53. Assuming that no rebuttal case is filed, any party may file a
request to present oral argument by November 25, 2024.
O. The Commission's Advisory Opinion
In section IV.D., the Commission stated that it found good cause to
modify the procedural schedule such that the Commission shall issue its
advisory opinion within 120 days of the filing of the Request.
Therefore, absent a determination of good cause for further extension,
the Commission shall issue its advisory opinion in this proceeding by
January 31, 2025. ``The opinion shall be in writing and shall include a
certification by each Commissioner agreeing with the opinion that in
his [or her] judgment the opinion conforms to the policies established
under [title 39, United States Code].'' 39 U.S.C. 3661(c). The advisory
opinion shall address the specific changes proposed by the Postal
Service in the nature of postal services. See 39 CFR 3020.102(b). The
Commission encourages the Postal Service to consider the
recommendations from the advisory opinion before moving forward with
implementation.
P. Public Representative
Pursuant to 39 U.S.C. 3661(c), Ping Gong shall continue to serve as
an officer of the Commission (Public Representative) to represent the
interests of the general public in this proceeding. See Order No. 7414
at 3.
V. Ordering Paragraphs
It is ordered:
1. The procedural schedule for this proceeding is set forth below
the signature of this Order.
2. Pursuant to 39 CFR 3010.106 and 3020.122(b), the Commission
appoints Stephanie A. Quick to serve as presiding officer in Docket No.
N2024-1, effective immediately.
3. Stephanie A. Quick is authorized to propound formal discovery
requests upon any party, at her discretion. The numerical limitation on
interrogatories appearing in 39 CFR 3020.117(a) shall not apply to the
Presiding Officer.
4. Stephanie A. Quick is authorized to rule on procedural issues
such as motions for late acceptance and discovery-related matters such
as motions to be excused from answering discovery requests.
5. Stephanie A. Quick is authorized to make other rulings in this
Docket not otherwise specifically reserved to the Commission according
to 39 CFR 3020 and 3010.106.
6. Pursuant to 39 U.S.C. 3661(c), Ping Gong shall continue to serve
as an officer of the Commission (Public Representative) to represent
the interests of the general public in this proceeding.
7. The Secretary shall arrange for publication of this Order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
Procedural Schedule for Docket No. N2024-1
[Established by the Commission, October 8, 2024]
------------------------------------------------------------------------
------------------------------------------------------------------------
Technical Conference Dates:
Deadline to Email [email protected] October 15, 2024.
to Register to Participate in the Live
Technical Conference via Microsoft
Teams.
Filing of the Postal Service's October 15, 2024.
Materials (if any) for the Technical
Conference.
[[Page 83717]]
Technical Conference (live via October 16, 2024, at 1:00
Microsoft Teams). p.m. Eastern Time (ET).
Intervention Deadline:
Filing of Notice of Intervention....... October 21, 2024.
Discovery Deadlines for the Postal
Service's Direct Case:
Last Filing of Discovery Requests...... November 5, 2024.
Filing of the Postal Service's Answers November 12, 2024.
to Discovery.
Deadlines in Preparation for Hearing
(assuming no rebuttal case):
Filing of Notice Confirming Intent to November 25, 2024.
Oral Conduct Cross-Examination.
Filing of Request to Present Oral November 25, 2024.
Argument.
Filing of Notice of Designations November 26, 2024.
(Parties).
Filing of Notices of Designated December 2, 2024.
Materials (Postal Service).
Rebuttal Case Deadlines (if applicable):
Filing of Notice Confirming Intent to November 27, 2024.
File a Rebuttal Case.
Filing of Rebuttal Case................ December 4, 2024.
Surrebuttal Case Deadlines (if applicable):
Filing of Motion for Leave to File December 6, 2024.
Surrebuttal Case.
Filing of Response to Motion for Leave December 10, 2024.
to File Surrebuttal Case.
Filing of Surrebuttal Case (if December 13, 2024.
authorized).
Hearing Dates:
Hearings (with no Rebuttal Case)....... December 4 to 6, 2024.
Hearings (with Rebuttal Case, but no December 11 to 13, 2024.
authorized Surrebuttal Case).
Hearings (with Rebuttal Case and December 18 to 20, 2024.
authorized Surrebuttal Case).
Briefing Deadlines:
Filing of Initial Briefs (with no December 12, 2024.
Rebuttal Case).
Filing of Reply Briefs (with no December 19, 2024.
Rebuttal Case).
Statement of Position Deadline:
Filing of Statement of Position (with December 12, 2024.
no Rebuttal Case).
Advisory Opinion Deadline:
Filing of Advisory Opinion............. January 31, 2025.
------------------------------------------------------------------------
Docket N2024-1 Template To Attach To Motion for Access to Non-Public
Material Protective Conditions Statement
The Postal Service requests confidential treatment of non-public
materials identified as ___ (non-confidential description of non-public
materials) (hereinafter ``these materials'') in Commission Docket No.
N2024-1. ___ (name of participant filing motion) (hereinafter ``the
movant'') requests access to these materials related to Commission
Docket No. N2024-1 (hereinafter ``this matter'').
The movant has provided to each person seeking access to these
materials:
[cir] This Protective Conditions Statement;
[cir] The Certification to Comply with Protective Conditions;
[cir] The Certification of Compliance with Protective Conditions
and Termination of Access; and
[cir] The Commission's rules applicable to access to non-public
materials filed in Commission proceedings (subpart C of part 3011 of
the U.S. Code of Federal Regulations).
Each person (and any individual working on behalf of that person)
seeking access to these materials has executed a Certification to
Comply with Protective Conditions by signing in ink or by typing /s/
before his or her name in the signature block. The movant attaches the
Protective Conditions Statement and the executed Certification(s) to
Comply with Protective Conditions to the motion for access filed with
the Commission.
The movant and each person seeking access to these materials agree
to comply with the following protective conditions:
1. In accordance with 39 CFR 3011.303, the Commission may impose
sanctions on any person who violates these protective conditions, the
persons or entities on whose behalf the person was acting, or both.
2. In accordance with 39 CFR 3011.300(b), no person involved in
competitive decision-making for any individual or entity that might
gain competitive advantage from using these materials shall be granted
access to these materials. Involved in competitive decision-making
includes consulting on marketing or advertising strategies, pricing,
product research and development, product design, or the competitive
structuring and composition of bids, offers or proposals. It does not
include rendering legal advice or performing other services that are
not directly in furtherance of activities in competition with an
individual or entity having a proprietary interest in the protected
material.
3. In accordance with 39 CFR 3011.302(a), a person granted access
to these materials may not disseminate these materials in whole or in
part to any person not allowed access pursuant to 39 CFR 3011.300(a)
(Commission and court personnel) or 3011.301 (other persons granted
access by Commission order) except in compliance with:
a. Specific Commission order,
b. Subpart B of 39 CFR 3011 (procedure for filing these materials
in Commission proceedings), or
c. 39 CFR 3011.305 (production of these materials in a court or
other administrative proceeding).
4. In accordance with 39 CFR 3011.302(b) and (c), all persons
granted access to these materials:
a. Must use these materials only related to this matter; and
b. Must protect these materials from any person not authorized to
obtain access under 39 CFR 3011.300 or 3011.301 by using the same
degree of care, but no less than a reasonable degree of care, to
prevent the unauthorized disclosure of these materials as those
persons, in the ordinary course of business, would be expected to use
to protect their own proprietary material or trade secrets and other
internal, confidential, commercially sensitive, and privileged
information.
5. The duties of each person granted access to these materials
apply to all:
[[Page 83718]]
a. Disclosures or duplications of these materials in writing,
orally, electronically, or otherwise, by any means, format, or medium;
b. Excerpts from, parts of, or the entirety of these materials;
c. Written materials that quote or contain these materials; and
d. Revised, amended, or supplemental versions of these materials.
6. All copies of these materials will be clearly marked as
``Confidential'' and bear the name of the person granted access.
7. Immediately after access has terminated pursuant to 39 CFR
3011.304(a)(1), each person (and any individual working on behalf of
that person) who has obtained a copy of these materials must execute
the Certification of Compliance with Protective Conditions and
Termination of Access. In compliance with 39 CFR 3011.304(a)(2), the
movant will attach the executed Certification(s) of Compliance with
Protective Conditions and Termination of Access to the notice of
termination of access filed with the Commission.
8. Each person granted access to these materials consents to these
or such other conditions as the Commission may approve.
Respectfully submitted,
/s/
-----------------------------------------------------------------------
Attorney/Non-Attorney Representative for
(signature of representative)
(print name of representative)
(address line 1 of representative)
(address line 2 of representative)
(telephone number of representative)
(e-mail address of representative)
(choose the appropriate response)
(name of the movant)
You may delete the instructional text to complete this form. This
form may be filed as an attachment to the motion for access to non-
public materials under 39 CFR 3011.301(b)(5).
Certification To Comply With Protective Conditions
The Postal Service requests confidential treatment of non-public
materials identified as ___ (non-confidential description of non-public
materials) (hereinafter ``these materials'') filed in Commission Docket
No. N2024-1.
___ (name of participant filing motion) requests that the
Commission grant me access to these materials to use related to Docket
No. N2024-1 (hereinafter ``this matter''). I certify that:
[cir] I have read and understand the Protective Conditions
Statement and this Certification to Comply with Protective Conditions;
[cir] I am eligible to receive access to these materials because I
am not involved in competitive decision-making for any individual or
entity that might gain competitive advantage from using these
materials; and
[cir] I will comply with all protective conditions established by
the Commission.
/s/
-----------------------------------------------------------------------
(signature of individual receiving access)
(print name of individual receiving access)
(title of individual receiving access)
(employer of individual receiving access)
(name of the participant filing the motion)
(date)
You may delete the instructional text to complete this form. This
form may be filed as an attachment to the motion for access to non-
public materials under 39 CFR 3011.301(b)(6).
[FR Doc. 2024-23853 Filed 10-16-24; 8:45 am]
BILLING CODE 7710-FW-P