Policies, Procedures, and Forms Updates

Manuals

DMM Revision: New Incentive Programs for 2011

Effective January 2, 2011, the Postal Service™ will revise the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) 233, 243, and 343 to implement two new incentive programs.

Reply Rides Free Incentive Program

We are implementing an option for First-Class Mail® let­ters weighing over 1 ounce up to and including 1.2 ounces to qualify for postage payment at the 1-ounce price when those letters include a reply card or reply envelope under specified conditions. Reply pieces must bear an Intelligent Mail® barcode as of May 1, 2011.

This new program provides an incentive for mailers to include more content in their automation First-Class Mail letters by providing a postage credit equal to the second ounce of postage for eligible letters as follows:

n Eligible letters must qualify for automation letter prices and weigh more than 1 ounce up to 1.2 ounces. At the time of mailing, mailers pay the appli­cable 2-ounce price for these pieces. All commercial (presorted and automation) First-Class Mail letter-size volume counts towards meeting an overall mail volume threshold, but only those letters qualifying for automation letter prices will be eligible for postage credit. As of May 1, 2011, only those automation let­ters qualifying for and mailed at full-service automa­tion letter prices will be eligible for postage credit.

n Letters must include a reply card or envelope, either Business Reply Mail® or Courtesy Reply Mail™. As of May 1, 2011, reply pieces must bear an accurate Intelligent Mail barcode corresponding to the delivery address on the piece. The reply piece may be in the form of a reusable envelope. Permit reply mailpieces are not eligible for this program.

n The postage credit will be for the amount paid for the second ounce and is provided for those pieces mailed as automation letters during the 2011 pro­gram period (January 2, 2011, through December 31, 2011) when the mailer’s volume of all commercial First-Class Mail letter-size mailpieces mailed in this period is at least 2.5 percent greater than the mailer’s trend of all commercial First-Class Mail letter-size volume mailed during USPS® fiscal year (FY) 2010 (October 1, 2009, through September 30, 2010) com­pared to volume mailed in USPS FY 2009 (October 1, 2008, through September 30, 2009). The threshold volume for program postage credit eligibility is the amount that is 2.5 percent greater than the mailer’s projected volume based on the mailer’s trend, except that mailers with a positive trend must mail at least 2.5 percent more letter volume during calendar year 2011 than during fiscal year 2010. For example, if a mailer’s letter-size volume has declined from 100,000 to 95,000 pieces (a 5 percent decline) from FY 2009 to FY 2010, the projected volume for 2011 at the same trend would be 90,250 (95,000 times .95). That mailer’s volume must be at least 92,507 (1.025 times 90,250) during the program period to meet the eligi­bility threshold. A mailer with a positive trend (for example, an increase from 90,000 to 100,000 letters) would have a threshold that is 2.5 percent more than their FY 2010 volume or 102,500 (100,000 times 1.025).

n Separate thresholds will be set for each of the first three quarters of calendar year 2011, based on the trend for each comparable quarter in FY 2010. Post­age credit will be provided after the end of each quar­ter, upon calculation and verification of the mail volume data.

n The threshold for quarter four of calendar year 2011 will be the yearly threshold, with all previous three quarters’ volume being added to the volume for quarter four. Postage credit will be provided at the end of quarter four only when the annual volume threshold is met.

n Mailers who do not meet the calendar year 2011 vol­ume threshold are retroactively ineligible for any postage credit for this program.

n Mailers who did not mail commercial First-Class Mail letters in FY 2009 may not participate in the Reply Rides Free program.

n The program period will be from January 2, 2011, through December 31, 2011.

Mail owners, but not mail service providers, who have mailed commercial First-Class Mail letters during USPS FY 2009 and 2010 may apply to participate in this incentive program by following instructions provided at www.usps.com/firstclassmailincentive, no later than Janu­ary 31, 2011. Mail owners must validate that they have mailed at least one commercial presorted or automation mailing of First-Class Mail letters during each of the fiscal years 2009 and 2010 and should state their intent to mail First-Class Mail letters containing qualifying reply pieces weighing more than 1 ounce up to 1.2 ounces during the 2011 program period. After registration, mail owners must supply adequate proof of the total qualifying mail volume claimed for USPS FY 2009 and FY 2010 in order to be eli­gible for participation.

2011 Saturation and High Density Incentive Program

The Postal Service is implementing an incentive pro­gram for Standard Mail® and Nonprofit Standard Mail let­ters and flats mailed at saturation and high density prices.

Mailers of Standard Mail or Nonprofit Standard Mail sat­uration or high density letters and/or flats (complete mail­pieces) who meet the eligibility requirements are able to participate in both the saturation and high density catego­ries simultaneously. Participants have the option to dem­onstrate growth in total mailed volume or growth within a defined market. Mailers who participate only within defined market areas are required to demonstrate volume growth within a specific, or group of specific, USPS sectional cen­ter facility (SCF) service area(s) to qualify for the incentive. Participants have the option to select one or more, up to a maximum of 20, individual SCF areas or up to five metro­politan target markets (consisting of multiple contiguous SCFs) for participation in the program and must meet the eligibility requirements for each area selected. USPS must approve all applicant-selected market areas prior to accep­tance into the program.

Franchisees that are not separate business entities cannot apply for an incentive independently of the parent organiza­tion. Applicants will receive a credit for volume mailed, within their selected growth area and price category, above their USPS-determined volume threshold. The program period will be from January 2, 2011, through December 31, 2011.

To participate, mailers must be the permit holder (i.e., owner) of a permit imprint advance deposit account(s) at a postal facility having PostalOne! capability, or be the owner of qualifying mail volume entered through the permit imprint advance deposit account of a mail service provider at a postal facility having PostalOne! capability. Only the volume of the mail owner, defined as the entity paying for the post­age, will be eligible within the program period to meet eligibil­ity requirements. Mail service providers and customers supplying inserts, enclosures, or other components included in the saturation or high density mailings of another mailer are not eligible to participate in this program.

Standard Mail or Nonprofit Standard Mail saturation or high density letters and/or flats (complete mailpieces) mailed through a permit imprint advance deposit account, precanceled stamp permit, or a postage evidencing system owned by a mail service provider may be included as vol­ume within the program, and towards program eligibility, when adequate documentation demonstrates that the applicant is the owner of the mail.

Participants must electronically submit postage state­ments and mailing documentation to the PostalOne! sys­tem for the duration of the program period. Mailers participating within a defined market area(s) must electron­ically submit postage statements and mailing documenta­tion to the PostalOne! using Mail.dat® or Mail.XML®. All other mailers may submit postage statements through Postal Wizard.

Applicants must demonstrate a combined minimum of six saturation or high density mailings within the period of October 1, 2009, to September 30, 2010. Applicants meet­ing the other eligibility criteria may participate in both price categories simultaneously. Applicants who choose to par­ticipate only within defined market areas must meet the eli­gibility criteria independently for each selected SCF service area or selected metropolitan target market.

Mail owners participating in the 2011 Saturation and High Density Incentive Program are not eligible for concur­rent participation in any other Postal Service–sponsored volume incentive program that includes Standard Mail pieces in the saturation or high density price categories.

Thresholds for the 2011 Saturation and High Density Incentive Program are set at 5 percent above the volume of Standard Mail or Nonprofit Standard Mail saturation and high density letters and flats recorded in the 2010 calendar year, within each participant-selected growth area and price category. Applicants electing to participate in both the saturation and high density price categories must exceed the combined thresholds of both categories before qualifying for an incentive payment in either category.

Approved program participants demonstrating a vol­ume increase above their threshold level, in their total Stan­dard Mail or Nonprofit Standard Mail saturation and high density letters and flats volume within their total market area, selected SCF service areas, or metropolitan target market, qualify for a credit to a single designated permit imprint advance deposit account or Centralized Account Payments System (CAPS) account, following the close of the 2011 Saturation and High Density Incentive Program. The total postage paid for Standard Mail saturation and high density letters and flats within the program period will be identified for each participant and divided by the total number of recorded pieces to generate the average price per piece. Participants will receive a credit in the amount of a percentage of the average price per piece, for the total number of mailpieces of their incremental volume above their threshold level, recorded during the program period as follows:

 

Participation Level

Standard Mail

Nonprofit Standard Mail

Saturation

22%

8%

High Density

13%

8%

Program Administration

Those mailers identified by the Postal Service as being eligible to participate in the program have been sent an invitation letter. The invitation letter directs mailers to apply for the program online at www.usps.com/SaturationHD. Mailers wishing to participate in the program, but who were not notified by letter, may request a review of their eligibility by contacting USPS at SaturationHDIncentive@usps.gov or by submitting an online application. Any mailer wishing to participate in the program must initially apply online no later than January 31, 2011.

Mailers completing the online application process will receive an electronic response from USPS that includes:

n An individual volume threshold report.

n A certification letter.

n A threshold inquiry form.

The individual threshold report will display the appli­cant’s USPS-recorded saturation and/or high density mail volume for the 2010 calendar year. Applicants agreeing with their threshold volume(s) have the option to sign the provided certification letter and return a copy via e-mail, or mail a hardcopy to Saturation Incentive Program Office, 475 L’Enfant Plaza SW, RM 5500, Washington, DC 20260-5500, to register for the program. Applicants not agreeing with any portion of their USPS-calculated threshold(s) must complete the threshold inquiry form along with supporting evidence and return it via e-mail or hardcopy, no later than March 15, 2011.

In addition to Standard Mail volume prepared and entered directly by the mailer (applicant), applicants will also be eligible to participate in the program with qualifying vol­ume prepared by a mail service provider when entered through a permit owned by the applicant. Mail volume entered through a mail service provider’s permit will also qualify for the program if adequate documentation, such as postage statements, PS Form 3602-R, or PS Form 3602-N, identify the mail as being prepared on behalf of the applicant and demonstrates the applicant’s 2010 mailing activity.

Additionally, as part of the program administration, the Postal Service requires each program participant to certify the data used to calculate the participant’s program threshold(s). This certification requirement is similar to that currently used on a postage statement, and is designed to ensure that the data used by the Postal Service to calculate the threshold level(s) is (are) accurate.

Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM)

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200 Commercial Letters and Cards

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230 First-Class Mail

233 Prices and Eligibility

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[Add new 7.0 to read as follows:]

7.0 First-Class Mail Incentive Programs

7.1 General Description

First-Class Mail incentive programs are designed to encourage mail volume growth and retention.

7.2 Reply Rides Free Program

The Reply Rides Free program provides an incentive for mailers to include additional contents in their automation First-Class Mail letters by providing a postage credit for let­ters weighing over 1 ounce but no more than 1.2 ounces. Applicants are required to review and certify the accuracy of the data used by the USPS to calculate their threshold level (see 7.2.1); and, upon request, may be required to pro­vide documentation of their mailing activity in fiscal years 2009 and 2010 and during the 2011 program period.

7.2.1 Basic Mailpiece Eligibility

Letter-size mailpieces mailed by an approved program par­ticipant are eligible for a postage credit under all of the fol­lowing conditions:

a. Eligible automation letters must weigh more than 1 ounce but no more than 1.2 ounces. Mailers pay the applicable 2-ounce price for these pieces. As of May 1, 2011, automation letters must be eligible for and mailed at full-service (see 705.22) Intelligent Mail prices.

b. Letters must include a reply card or envelope, either Business Reply Mail or Courtesy Reply Mail. The reply piece may be part of a reusable envelope prepared ac­cording to 601.6.4 or 601.6.5. Mailers must provide a sample of the reply card or envelope at the time of mailing. Reply pieces must be automation-compatible and must bear the correct Intelligent Mail barcode cor­responding to the address as of May 1, 2011.

c. The postage credit is for the amount paid for the sec­ond ounce for eligible letters that meet the standards in 7.2, that are mailed during the 2011 program peri­od, and that meet or exceed their USPS-determined threshold volume for 2011. To be eligible for program participation, a mailer must have mailed at least one mailing of 500 or more presorted or automation First-Class Mail letters during USPS fiscal years (FY) 2009 and 2010 (October 1 through September 30).The threshold volume is determined as follows:

1. The USPS determines a mailing volume trend for mailers with all commercial First-Class Mail letter volume mailed during both USPS FY 2009 and USPS FY 2010. To qualify for postage credit, the mailing volume in 2011 must be at least 2.5 percent greater than the projected mail volume based on the volume trend percentage from FY 2009 to FY 2010. For example, if a mailer’s letter-size volume has declined from 100,000 to 95,000 pieces (a trend of 5 percent decline) from USPS FY 2009 to USPS FY 2010, that mailer’s projected volume for 2011 would be 95,000 pieces times 0.95 (90,250). The actual volume mailed during calendar year 2011 must be at least 92,507 pieces (the threshold vol­ume, which is 1.025 times the projected volume of 90,250) during the program period.

2. However, mailers with a positive volume trend will have a threshold of 2.5 percent more than their FY 2010 volume, rather than 2.5 percent more than their trend. For example, a mailer’s whose volume rose from 90,000 in FY 2009 to 100,000 in FY 2010 would have a threshold for the 2011 calen­dar year of 102,500 (1.025 times 100,000).

d. In addition to an annual volume threshold, separate thresholds will be set for each of the first three quar­ters of calendar year 2011, based on the trend for each comparable quarter in FY 2010. Quarterly thresholds for mailers with a positive mail volume trend will be set at 2.5 percent more than the volume in the comparable quarter of FY 2010. Postage credit will be provided after the end of each quarter, upon calculation and verification of the mail volume data.

e. The threshold for quarter four of calendar year 2011 will be the yearly threshold, with all previous three quarters’ volume being added to the volume for quar­ter four. Postage credit will be provided at the end of quarter four only when the annual volume threshold is met.

f. Credit is provided to the mail owner’s CAPS account, upon USPS calculation and verification of the mail volume data after the end of each quarter.

g. The program period for eligible mail volume is from January 2, 2011, through December 31, 2011. To be eligible for any postage credit, the participant must ensure that the total volume of First-Class Mail com­mercial letters paid at presorted or automation letter prices mailed during the 2011 program period meets or exceeds the USPS-determined threshold volume, as determined under 7.2.1.

h. Mailers who do not meet the calendar year 2011 vol­ume threshold are ineligible for any postage credit for this program. Any quarterly credits provided to mail­ers for quarters one through three must be returned to the Postal Service if the calendar year 2011 vol­ume threshold is not met.

7.2.2 Mailer Participation Eligibility and Documentation

Mail service providers are not eligible to participate in this program. Mail owners are considered eligible for the pro­gram as follows:

a. Applicants must have mailed at least one presorted or automation First-Class Mail mailing of 500 letters or more during both USPS FY 2009 and FY 2010. Ap­plicants must be able to document their total mailed volume of commercial First-Class Mail letters for FY 2009 and 2010, as follows:

1. Volume through one or more permit imprint advance deposit accounts, precanceled stamp permits, or postage meter permits owned by the applicant, or

2. Volume prepared by a mail service provider when entered through a permit owned by the applicant, or

3. Volume mailed under a mail service provider’s permit that can be specifically identified as being mailed on behalf of the applicant.

b. Approved participants must be able to document the total mailed volume of letters that are eligible, under 7.2, for postage credit. Accordingly, pieces must be presented for mailing under either of the following conditions:

1. A separate mailing of identical weight pieces, all of which weigh more than 1 ounce up to 1.2 ounces.

2. A mailing of nonidentical weight pieces, sup­ported by documentation under the manifest mailing standards in 705.2.0, with individual piece weight listings substantiating that participant pieces weigh more than 1 ounce but no more than 1.2 ounces. The manifest listing must also provide a total of eligible pieces.

c. At the end of the 2011 program period, approved participants must be able to document their total mailed volume of commercial First-Class Mail letters during the program period, the total mail volume eli­gible for postage credit under 7.2.2b, and meet the following conditions:

1. Letters mailed in the 2011 program period that meet the USPS-determined mail volume thresh­old, as provided in 7.2.1, must weigh more than 1 ounce up to a maximum of 1.2 ounces.

2. Letters mailed during the 2011 program period must contain a reply card or reply envelope. Reply pieces must be automation-compatible and bar­coded. As of May 2011, the barcode on reply pieces must bear the correct Intelligent Mail barcode cor­responding to the address on the reply piece.

3. Credit applies only to automation letters; as of May 1, 2011, credit will apply only for automation letters mailed under the full-service automation option described in 705.22.

d. Fluctuations in mailing activity resulting from the merger or acquisition of one or more program partic­ipants, prior or subsequent to the beginning of the program period, are subject to review, possible recal­culation of thresholds, and approval by the USPS.

e. Mailers participating in the Reply Rides Free incen­tive program are not eligible for simultaneous partic­ipation in any other USPS-sponsored volume incentive program that includes First-Class Mail commercial letters during the 2011 program period.

7.2.3 Application

Mail owners wishing to participate may apply at www.usps.com/firstclassmailincentive no later than Janu­ary 31, 2011. Following registration, mailers are required to provide documentation demonstrating their total commer­cial First-Class Mail letter volume mailed during USPS FY 2009 and FY 2010 (as described in 7.2.1). The USPS reviews the documentation provided for adequacy and provides an electronic response that includes:

a. Notification of approval (or of the need for additional documentation) for participation in the program.

b. Applicant’s verified mail volume for USPS FY 2009 and FY 2010.

c. Applicant’s 2011 mail volume threshold for program and postage credit eligibility.

d. A certification letter. Mailers must present a printed copy of the certification letter to a postal acceptance employee with the first mailing under this program, at each mailing office.

7.2.4 Mailer Response

Mailers wishing to dispute the USPS-verified mail volume or USPS-determined threshold (see 7.2.1) may request a review by following the procedure outlined at www.usps.com/firstclassmailincentive no later than February 15, 2011.

7.2.5 Program Credits

Approved participants that can demonstrate an increase in their mailed volume of commercial First-Class Mail letters in the 2011 program period, meeting or exceeding the threshold volume as determined under 7.2.1, qualify for a credit, after the end of the program period, to their desig­nated Centralized Account Payment System (CAPS) permit imprint account, as follows:

a. The letter-size pieces for which the credit is claimed must weigh more than 1 ounce but no more than 1.2 ounces and be mailed under all standards in 7.2.

b. Participants that meet or exceed their threshold vol­ume receive a credit in the amount of the postage paid for the second ounce for each eligible piece meeting all the conditions in 7.2 that are mailed dur­ing the 2011 program year from January 2, 2011, through December 31, 2011.

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240 Standard Mail

243 Prices and Eligibility

1.0 Prices and Fees for Standard Mail

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[Delete section 1.7 in its entirety to remove reference to the 2009 Saturation Mail Volume Incentive Program.]

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[Add new section 8.0 to read as follows:]

8.0 Incentive Programs for Standard Mail Letters

8.1 General Description

Incentive programs for Standard Mail letters are designed to encourage mail volume growth and retention.

8.2 Saturation and High Density Incentive Program

The Saturation and High Density Incentive Program pro­vides postage credits for qualified mail owners of Standard Mail, or Nonprofit Standard Mail, letters and flats mailed at saturation and high density carrier route prices that can document mail volumes exceeding their individual USPS-recorded threshold level, during the 2011 program period, from January 2, 2011, through December 31, 2011. Partic­ipating mail owners documenting volumes above their threshold level receive a credit, for each piece exceeding their threshold level, to a designated permit imprint advance deposit account or Centralized Account Payment System (CAPS) account after the end of the program period. Refer to 343.8.2 for program details.

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300 Commercial Mail Flats

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340 Standard Mail

343 Prices and Eligibility

1.0 Prices and Fees for Standard Mail

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[Delete section 1.6 in its entirety to remove reference to the 2009 Saturation Mail Volume Incentive Program.]

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[Add new 8.0 as follows:]

8.0 Incentive Programs for Standard Mail Flats

8.1 General Description

Incentive programs for Standard Mail flats are designed to encourage mail volume growth and retention.

8.2 Saturation and High Density Incentive Program

8.2.1 Program Description

The Saturation and High Density Incentive Program pro­vides postage credits for qualified mail owners of Standard Mail, or Nonprofit Standard Mail, letters and flats (complete mailpieces) mailed at saturation and high density carrier route prices that can document mail volumes exceeding their individual USPS-recorded threshold level, during the 2011 program period, from January 2, 2011, through December 31, 2011. Participating mail owners document­ing volumes above their threshold level receive a credit, for each piece exceeding their threshold level, to a single des­ignated permit imprint advance deposit account or Central­ized Account Payment System (CAPS) account after the end of the program period. Applicants are required to review and certify the accuracy of the data used by the USPS to calculate their threshold level(s); and, upon request, may be required to provide documentation of their mailing activity in the 2010 calendar year, the 2009–2010 eligibility period, and during the program period.

8.2.2 Eligibility Standards

Mail service providers are not eligible to participate in this program. Mail owners are eligible for the program as follows:

a. Mailers must be the owner of a permit imprint ad­vance deposit account, precanceled stamp permit, or postage meter permit at a USPS facility having PostalOne! capability; or the owner of qualifying mail­piece volume entered through the account(s) of a mail service provider at a USPS facility having Post­alOne! capability, when adequate documentation demonstrates that the applicant is the owner of the mailpieces.

b. Applicants must electronically submit postage state­ments and mailing documentation to the Postal One! system. Applicants participating within a defined mar­ket area(s) must electronically submit postage state­ments and mailing documentation using Mail.dat or Mail.XML. All other applicants may optionally submit postage statements via Postal Wizard.

c. Only the volume of the mail owner, defined as the en­tity paying for the postage, is eligible within the pro­gram period.

d. Mail service providers and customers supplying in­serts, enclosures or other components included in the mailings of another mailer are not eligible to par­ticipate in this program.

e. For either the saturation or high density incentives, applicants must demonstrate a combined minimum of six saturation or high density mailings of Standard Mail letters and/or flats within the qualification period of October 1, 2009, to September 30, 2010.

f. Applicants meeting the eligibility criteria in 8.2.2a through 8.2.2d may participate within both the satu­ration and high density price categories simulta­neously.

g. Applicants who participate only within defined mar­ket areas must meet the eligibility criteria indepen­dently for each selected SCF service area or selected metropolitan target market.

h. Mailers participating in the 2011 Saturation and High Density Incentive Program are not eligible for concur­rent participation in any other USPS-sponsored volume incentive program that includes Standard Mail pieces in the saturation or high density price categories.

8.2.3 Program Threshold Level

Threshold level figures are calculated independently for each applicant as follows:

a. Thresholds are set at 5 percent (5%) above (or 105% of) the volume, within the participant-selected growth area and price category, of Standard Mail or Nonprof­it Standard Mail saturation and high density letters and flats recorded in the 2010 calendar year.

b. Applicants participating in both the saturation and high density price categories must exceed the com­bined thresholds of both categories before qualifying for an incentive payment in either category.

8.2.4 Application

Mail owners identified by the Postal Service as being eligi­ble to participate in the program will be sent an invitation letter after November 1, 2010. Mail owners may apply for the program as follows:

a. The invitation letter directs mail owners to apply for the program online at www.usps.com/SaturationHD no later than January 31, 2011.

b. Applicants participating with Standard Mail satura­tion and/or high density mail volume destinating only within defined market areas must select the sectional center facility (SCF) service areas for participation in the program, up to a maximum of 20 individual SCF areas or up to five metropolitan target markets (con­sisting of multiple contiguous SCFs). The USPS must approve all applicant-selected market areas prior to acceptance into the program.

c. Mail owners completing the online application pro­cess receive an electronic response from the USPS that includes:

1. An individual volume threshold report, with the applicant’s recorded saturation and/or high den­sity volume for the 2010 calendar year.

2. A certification letter.

3. A threshold inquiry form.

d. Applicants agreeing with their threshold volume(s) can sign the certification letter and return a copy via e-mail to: SaturationHDIncentive@usps.gov, or mail a hardcopy to Saturation Incentive Program Office, 475 L’Enfant Plaza SW, Room 5500, Washington, DC 20260-5500, to be registered for the program.

e. Applicants not agreeing with any portion of their USPS-calculated threshold(s) must complete the threshold inquiry form and return it along with sup­porting evidence, via e-mail, or mail a hardcopy to Saturation Incentive Program Office, 475 L’Enfant Plaza SW, Room 5500, Washington, DC 20260-5500, no later than March 15, 2011.

f. Mail owners wishing to participate in the program, but who were not notified by letter, may request a review of their eligibility by contacting the USPS at Saturation/HDIncentive@usps.gov or submitting an online applica­tion at www.usps.com/SaturationHD no later than January 31, 2011.

8.2.5 Program Participation

Mail owners may participate in the program with qualifying letters and flats mailpieces mailed at saturation or high density prices as follows:

a. Standard Mail, or Nonprofit Standard Mail, mailpiec­es mailed by the participant through the participant’s own permit imprint advance account, precanceled stamp permit(s), or postage meter permit(s).

b. Standard Mail, or Nonprofit Standard Mail, mailpiec­es prepared by a mail service provider, when entered through a permit owned by the participant.

c. Standard Mail, or Nonprofit Standard Mail, mailpiec­es mailed through a mail service provider’s permit, only when the pieces can be identified as being pre­pared for the participant and when the applicant’s prior mailing activity through the mail service provid­er’s permit can be validated.

d. Fluctuations in mailing activity resulting from the merger or acquisition of one or more program partic­ipants, prior or subsequent to the beginning of the program period, are subject to review and approval by the USPS for inclusion in reported volume.

8.2.6 Incentive Program Credits

Approved participants demonstrating an increase in Stan­dard Mail, or Nonprofit Standard Mail, saturation and high density letters and flats volume above their threshold level qualify for a credit to a single designated permit imprint advance deposit account or CAPS account as follows:

a. The total postage paid for Standard Mail, or Nonprof­it Standard Mail, letters and flats mailed at saturation and high density prices, recorded during the program is identified for each participant.

b. The total postage paid during the program period is divided by the total number of recorded mailpieces to determine the average price per piece for the pro­gram period.

c. Participants receive a credit, based on the percent­ages of the average price per piece, for the number of mailpieces of incremental volume above their threshold level, recorded during the program period, as follows:

1. Saturation letters and flats: 22 percent for Stan­dard Mail, 8 percent for Nonprofit Standard Mail pieces.

2. High density letters and flats: 13 percent for Stan­dard Mail, 8 percent for Nonprofit Standard Mail pieces.

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We will incorporate these revisions into the next printed version of the DMM and into the monthly update of the online DMM, which is available via Postal Explorer® at http://pe.usps.com.