AREA MAIL PROCESSING (AMP) PROPOSAL SUMMARY
Detroit, MI to Michigan Metroplex

Date:  09/08/08

Area Mail Processing (AMP) is the consolidation of mail processing operations from one or more postal facilities to other facilities to improve operational efficiency and/or service.  This summary of the Detroit, MI AMP proposal consolidates all outgoing mail processing operations from the Detroit, MI Processing & Distribution Center (P&DC) to the new Michigan Metroplex Processing & Distribution Center (P&DC) in Pontiac, MI.  The Detroit facility would continue to process mail sent from other areas for delivery in the Detroit service area.  The two facilities are approximately 32 miles apart.

The Detroit AMP feasibility study is currently being refreshed using the worksheets from the March 2008 version of Handbook PO-408, Area Mail Processing (AMP) Guidelines.

1.	Business Case:

Proposed annual savings for the AMP is $4,294,545:
•	Annual Workhour savings of $6,174,932
•	Transportation cost of $2,157,671
•	Other savings of $277,285
•	The first year will reflect a savings of $3,860,875 after incurring one-time costs associated with transferring the operations.

2.	Postal Employees:

The proposed consolidation would impact approximately 160 positions at the Detroit plant.  Approximately 79 positions will be relocated to Michigan Metroplex.

3.	Local Customer Considerations:

The services that are currently available at the Detroit facility will continue to be available.

•	Collection box pick-up times will remain the same.
•	Retail services will remain the same.
•	Business mail acceptance will remain the same.
•	A local postmark will be available for stamped, First-Class Mail, upon request.
•	Customers will continue to receive the same services, such as delivery of mail at the same day and time.

4.	Business Mailers:

•	Mailers who presort mail will continue to receive the applicable postage discounts.
•	Mailers who drop ship mail will continue to deposit at the Detroit facility.

5.	Public Comment Summary:
A public meeting was held on October 23, 2007 at Wayne State University.  Approximately 200 people attended the meeting.  An opportunity was provided to submit written comments after the meeting.  Common issues from the meeting and the written comments were concerns over losing the postmark, loss of jobs and delays in service.