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Official Transcript of Proceedings Postal Rate OFFICIAL TRANSCRIPT OF PROCEEDINGS BEFORE THE POSTAL RATE COMMISSION In the Matter of: ) ) Docket No.: R2006-I POSTAL RATE AND FEE CHANGES, 2006 ) ) ) ) ) ) VOLUME #18D Designated Written Cross Examination of United States Postal Service Institutional Date: September ii, 2006 Place: Washington, D.C. Pages: 6325 through 6695 HERITAGE REPORTING CORPORATION Official Reporters 1220 L Street, N.W., Suite 600 Washington, D.C. 20005 (202) 628-4888 6325 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO OFFICE OF THE CONSUMER ADVOCATE INTERROGATORY OCNUSPS-1 Please confirm that the letter attached to this interrogatory was sent to Shelley Dreifuss, Office of the Consumer Advocate, by the Postal Service’s General Counsel, Mary Anne Gibbons, on June 19, 2006. Also confirm that, in the letter, (1) Ms. Gibbons describes the steps taken by the Postal Service to post Express Mail, Priority Mail, First-Class Mail, and Parcel Post service performance data at the Postal Service’s website; (2) Ms. Gibbons explains that Priority Mail 3-day service comprises only three percent of retail Priority Mail and that the service standard performance reports from the Product Tracking System are not currently designed to provide such information; and (3) Ms. Gibbons indicates that the cost of reprogramming the data reporting system has been a deterrent to developing it, formation on 3-day service. If any of these statements are not confirmed, then please explain. RESPONSE All four requested confirmations are hereby provided. 6326 MA~Y ANNE G~BBONS SF.MO~ V~E PFI~S~Drr-NI. GENEP.N. C(:WJN~I. UNITED ST~ITES ~ POSTIIL 51:HVICE June 19, 2006 Ms. Shelley S. Dreifuss Director Office of the Consumer Advocate 901 New York Avenue NW, Suite 200 Washington, DC 20268-0001 Dear Ms. Dreifuss: This concerns the status of measures being taken by the Postal Service to make available service performance data on the Postal Service’s public internet web site. During Docket No. R2005-1, the Postal Service agreed to post national performance data at www.usps.com, pursuant to a partial settlement agreement with the Office of the Consumer Advocate (OCA). The letter from Postmaster General Potter to you dated July 22, 2005, specified the data that would be posted. Thank you for meeting with me, the Postal Service’s Consumer Advocate, Delores Killette, Dan Foucheaux and Michael Tidwell on April 26 to review the Postal Service’s plans to implement the agreement. We were pleased to inform you that retail performance statistics would be publicly available, beginning Apdl 28, 2C06. As Mr. Potter indicated, the Postal Service is posting, for the first time, quarterly national on-time percentage data by service standard day, to the extent available, for retail First-Class Mail, Express Mail, Priority Mail, and Parcel Post. We also informed you that the Postal Service would be placing a hard-copy notice in its facilities informing the public- that the performance data would be available on the intemet. The information was made available as of April 28. During our discussion, we also clarified the status of retail performance data for Priority Mail. The July 22 letter indicated that Pdodty Mail performance statistics would be developed from the Pdority Mail End-to-End (PETE) measurement system, and would provide the percentage of Priority Mail test pieces scheduled to receive overnight service that was actually delivered overnight, and the percentage of Priority Mail test pieces scheduled to receive two-day service that was actually delivered in two days. As you know, since the agreement, the PETE measurement system has been terminated. Consistent with our understanding at the time of the settlement, we have agreed to substitute statistics developed from the Product Tracking System (PTS), which relies on data developed, from the Delivery Confirmation service. Since Pdodty Mail is a two/three-day product, until now, we have not estimated and provided the percentage delivered overnight internally. 475 L’,E~F,~ea" PL~.A SW W~SH]NGTON OC 20260-1100 202-268-LxJ50 FAX: 202-268-6981 E-M,NL: mg~bbons@email, usps.gov ve, yw.usps.com 6327 -2- We also clarified that, under PETE, only data representing performance for the first two days of Priority Mail delivery would have been available. Currently, the PTS system itself only compiles retail statistics for the first two days. Prcgramming could be undertaken, at considerable effort and expense, to develop retail statistics for the third day. Such information, however, would have relatively limited value for operations. Management responsible for the PTS system is currently working to evaluate whether additional volumes can be added and measured, such as parcels entered through Carrier Pick-up. If these efforts are successful, down the road, this information could potentially provide more comprehensive and useful tools for improving operations and service and in turn help the consumer. In this regard, we note that Priority Mail that is purchased at retail and has a three-day service standard represents only three percent of Priority Mail volume. The Postal Service, therefore, intends to continue with system enhancements that will provide greater access to service performance and not divert resources to develop retail Priority Mail three-day statistics from PTS. Given the circumstances, we are optimistic that this course w~ll ultimately be most beneficial to all postal customers interested in improving service and in meaningful and useful information concerning the performance of Priority Mail generally. If you have any questions, please do not hesitate to contact me. Again, thank you for meeting with us to discuss the implementation of this agreement. Mary Anne Gibbons 6328 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF THE OFFICE OF THE CONSUMER ADVOCATE OCNUSPS-2. This interrogatory seeks information on the service standards and achieved service performance for Express Mail. Please refer to the Postal Service’s Request, Attachment G, page 37, quoting Commission rule 54(n), which requires identification of any "performance goals" (herein "service standards") and "achieved levels of service" (herein "achieved service performance") for the classes and subclasses of mail. Please answer subparts a.-d., below, for 1) Express Mail as a whole; 2) the following Express Mail services (herein "services"): Custom Designed (Rate Schedule (herein "RS") 122), Next Day and 2d Day-PO to PO (RS 123), and, Next Day and 2d Day-PO to Addressee (RS 123); and, 3) any rate category, or any subset of mail or type of mail service of any of the services. Where applicable, please define any subset of mail or type of mail service of any of the services. a. For FY 2005 and FY 2006, by quarter, please provide data from all measuring systems showing the achieved service performance. If achieved service performance data is available from more than one information system, statistical report or other data source, please provide it. Where applicable, please indicate "Not Measured" if achieved service performance data is not measured for Express Mail as a whole, any of the services, or any rate category, or any subset of mail or type of Express Mail service. b. Please identify the information system(s), statistical report(s), or other data source(s) from which the achieved service performance data provided in response to subpart a., above, is obtained. c. Please provide a citation to the Domestic Mail Manual (herein "DMM") for the service standard(s) applicable to the achieved service performance data provided in response subpart a., above. If no citation to the DMM is applicable, state the applicable service standard, provide a citation to the relevant source for the stated service standard, and characterize the authority of the source (i.e., regulation, Board-approved policy, press release, executive letter directive, etc.). Where applicable, for Express Mail as a whole, any of the services, or any rate category, or any subset of mail or type of Express Mail service, if there is no achieved service performance data provided in response to subpart a., above, and if there is no applicable service standard, please indicate "No Service Standard." 6329 RESPONSE OF .THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF THE OFFICE OF THE CONSUMER ADVOCATE RESPONSE TO OCNUSPS-2 (continued) d. Please explain how the achieved service performance data provided in response to subpart a., above, is statistically representative for each of the service standards being measured, as cited in subpart c., above. If the achieved service performance data provided in response to subpart a., above, is not statistically representative, please 1) explain and rank order the most important reasons why the data is not statistically representative; 2) describe any existing plans by the Postal Service, and their likely implementation in the next 1, 3 or 5 years, to develop statistically representative data on achieved service performance; and, 3) indicate "No Plans" if there are no existing plans to develop statistically representative data on achieved service performance. e. For Express Mail as a whole, or any of the services listed above, where no achieved service performance data is provided in response to subpart a., above, please describe any existing plans by the Postal Service, and their likely implementation in the next 1, 3, or 5 years, to provide achieved service performance data responsive to Commission rule 54(n). Please indicate "No Plans" if there are no existing plans to provide achieved service performance data responsive to Commission rule 54(n). RESPONSE: (a) For Fiscal Year 2005, overall service performance for Express Mini, as measured by the Product Tracking System (PTS), broke down by quarters as follows: pql 92.50 pq2 95.40 pq3 97.07 pq4 96.45 For the first two quarters of Fiscal Year 2006, the measurements of overall service performance for Express Mail were as follows: pql 94.0O pq2 95.42 6330 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF THE OFFICE OF THE CONSUMER ADVOCATE RESPONSE TO OCA/USPS,.2 (continued) (b) The service performance data are from the Product Tracking System (PTS).
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