USPSNEWS@WORK

Do it on the clock! Fill out your VOE survey

The Quarter II Voice of the Employee (VOE) Survey is in the mail.

• You have until Jan. 31 to fill it out, place it in the postage-paid envelope and drop it in the mail. It's that simple. And, it's important.

• Your feedback is critical to the Postal Service's continued success.

• Every employee is surveyed - 25% per quarter.

• When you receive the survey at work, take a few minutes to complete it. You can do it on the clock. Make sure your voice is heard.

Universal service is key to USPS future, PMG tells new commission

Speaking at the first meeting of the new Presidential Commission on the Postal Service, Postmaster General (PMG) Jack Potter stressed the importance of universal mail service.

• "The key question is, How can we continue to provide universal service to all Americans and still make it affordable in the face of potentially declining mail volume?" Potter said.

• Potter pointed to USPS's success since its formation under the Postal Reorganization Act of 1970, which helped it evolve into a highly automated communications delivery operation with the highest service levels in its history.

• "We have lived up to our mandate to provide affordable, universal mail service to every American regardless of where they live, where they work or their economic circumstances," Potter said.

• "This past year we seized the initiative to transform the Postal Service - to begin the process of preparing for the future - to preserve America's trust in our ability to deliver," Potter said. However, he cautioned that economic recession, bio-terrorism and electronic diversion have had a negative impact on mail volume.

• Potter told the commission that short-term legislation is needed to change the amount USPS pays into the Civil Service Retirement System, which means rates could remain stable until at least 2006. And he said long-term legislation is needed to ensure that USPS remains a viable, efficient and affordable service to all Americans.

• More about the commission and PMG Potter's detailed presentation are posted on the web at www.usps.com/news/2002/press.

Leadership changes: USPS Board of Governors

David Fineman has been elected chairman of the Postal Service's Board of Governors. He succeeds Robert Rider.

• Fineman is president of Fineman & Bach, a Philadelphia law firm. He was elected vice chairman of the Board in 2001 and re-elected in 2002. He has served on the Board since 1995.

• John Walsh has been elected vice chairman. The longtime Connecticut businessman was appointed to the Board of Governors in 1999.

New challenges, new positions: Bravo, Otto, Weatherall assume new lead roles

PMG Jack Potter has asked Chief Technology Officer Charles Bravo to assume the new position of senior vice president of Intelligent Mail and Address Quality. Information Technology Vice President Robert Otto will take over the chief technology officer position. Potter also named Lakeland District Manager Murry Weatherall as the new vice president of Diversity Development.

• Bravo's new organization will set standards for coding, reading and mailer participation for information placed on all types of mail, including envelopes, packages, sacks, trays, pallets and customer forms. Bravo will report directly to the PMG.

• The Intelligent Mail and Address Quality organization supports the Transformation Plan strategy of using technology to add value to the mail.

• As chief technology officer, Otto will manage and maintain the USPS technology network, including its information technology infrastructure. The Transformation Plan calls for continually upgrading and reengineering the computing infrastructure to support current and new business requirements. Otto is responsible for operating the world's largest intranet, which connects Postal Service facilities nationwide.

• Weatherall assumes responsibility for increasing awareness and appreciation for ethnic and cultural diversity in the Postal Service, as well as for managing all aspects of diversity involving USPS employees, customers and suppliers.

USPSNEWS@WORK

• The culture of the Postal Service is a key component of the USPS transformation effort. And Diversity Development has an important role in several of the Transformation Plan's performance-based strategies, including succession planning to develop future leaders and building a highly effective and motivated workforce.

Five and counting: USPS boasts years of record on-time delivery

Yes, we deliver! USPS continues to provide record on- time delivery performance as it reduces costs through aggressive belt-tightening.

• In the latest EXFC (External First-Class) measurement, for the period Sept. 7 through Nov. 19, 2002, USPS achieved a 94% on-time delivery service performance score. It's the third consecutive quarter in which independently measured EXFC scores have reached this benchmark.

• Erie (PA), Big Sky (MT), Albany (NY), Dakotas (ND, SD) and Lakeland (MI, WI) performance clusters each achieved on-time delivery performance scores of 96%.

• Thirty-seven additional performance clusters reached the 95% threshold. Since spring 1997, First- Class Mail designated for next-day delivery has been delivered on time at least 93% of the time or better.

• And customer satisfaction, as measured by the Gallup Organization, indicates that 93% of households nationwide maintain a positive view of USPS.

Mail volume up, expenses down in PQ 1

USPS processed and delivered 49.3 billion pieces of mail in postal quarter (PQ) 1 - an increase of 742 million compared with a soft first quarter last fiscal year, reports CFO Richard Strasser.

• Standard Mail volume increased 1.5 billion pieces, driven by election mail, while First-Class Mail® volume dropped 629 million pieces.

• Strasser reported that a net income of $1 billion was produced on revenues of $16.3 billion. Although revenue was $300 million less than projected, expenses - thanks to continued cost containment - were $500 million under plan. This produced a net income of $200 million greater than plan.

Periodicals experiment pallet-able to PRC

Co-palletization. It's about sharing space, reducing costs and improving efficiency. And it's a hit with Periodicals mailers and USPS.

• The Postal Rate Commission has recommended that the Periodicals co-palletization experiment continue, and the USPS governors have accepted that recommendation.

• The experimental change establishes two new rate categories and discounts for publishers, printers and mail consolidators to combine different publications or print runs on pallets.

• The new Periodicals rates begin April 20 and will be in effect for two years. USPS will evaluate the projected cost savings during that time.

Feedback helps IT make improvements

USPS Information Technology asked employees for feedback on its service recently in a "Thumbs Up/Thumbs Down" survey. The results from more than 2,000 respondents show three areas where employees say IT can improve - help desk, infrastructure and training.

• Chief Technology Officer Bob Otto said IT has already begun working to improve service in the three areas. "The help desk has taken steps to better its response and problem resolution time."

• "And the national implementation of the Advanced Computing Environment (ACE) this year will replace dated equipment and standardize our infrastructure." Otto said employees will experience a noticeable improvement in systems features and connectivity once ACE is fully implemented.

• He said IT will update employees on the progress and actions being taken to improve service to employees. Survey results are available at http://it.usps.gov. Click on Hot Topics from the quick links menu. Then click on National Survey Summary Report.

Don't be confused by changes in some military mail

Some Postal Service employees are reportedly puzzled by the discontinuation of the "Any Service Member" mail program for overseas military personnel. It doesn't mean we don't accept military mail for delivery.

• Mail properly addressed to individual service members is still permissible. But due to safety concerns, the Department of Defense has placed strict limitations on mail intended for non-specified military personnel.

• Mail marked with the words "Any Service Member" is the type of military mail that is unacceptable at this time.

Administrative Services

Reporting Mail Attacks to the Postal Inspection Service

The Postal Inspection Service devotes significant resources to investigating and preventing theft of mail. In 2002, Postal Inspectors arrested nearly 6,000 individuals for mail theft. These attacks on mail are an ongoing threat to Postal Service employees and our customers. For these reasons, notify the Postal Inspection Service immediately in the event of any mail attack incident.

A mail attack is defined as any breach of Postal Service vehicles or Postal Service hardware used for the transportation, receipt, or delivery of mail. A mail attack is also any robbery of a letter carrier or an attack against any of the following:

• Carrier cart or satchel.

• Relay box.

• Collection box.

• Postal Service vehicle.

• Co-op mailing rack.

• Neighbor delivery and collection box unit.

• Outdoor parcel locker.

• Cluster box unit (CBU).

• Apartment mailbox panel.

• Privately owned vehicle used for mail delivery.

Once a mail attack has been confirmed, Postal Service management must report the incident to the local Postal Inspection Service office. When multiple attacks occur, report the total number of mail attack occurrences and the street address, city, state, and ZIP Code of each incident. Examples of reporting multiple mail attacks are the following:

• Three collection boxes at the corner of 8th and Main Street, Arlington, Virginia, 22201

• Seven CBUs involving addresses 7101 through 7185 Smith Road, Arlington, Virginia, 22201.

The Inspection Service is working to have the reporting of mail attacks included in electronic reporting of mail or mail box conditions. As these efforts develop, we will inform the field.

- Group 2-Security,
Inspection Service, 1-23-03

Customer Relations

Mail Alert

The mailings below will be deposited in the near future. Offices should honor the requested delivery dates. Mailers wishing to participate in these alerts, for mailings of 1 million pieces or more, should contact Business Service Network Integration at 703-292-4041 at least 1 month preceding the requested delivery dates. The Postal Service also offers electronic Mail Alerts via ADVANCE. For more information, see the ADVANCE Notification & Tracking System Technical Guide on the Internet at http://www.ribbs.usps.gov/files/advance/ADVTECH.PDF or contact the National Customer Support Center at 800-458-3181.

Friend-to-Friend Mail for Envelopes

What is Friend-to-Friend Mail?

The Postal Service is testing a new First-Class Mail®[7]service called Friend-to-Friend MailTM (FTF), for an indefinite period of time. FTF is an innovative new way for advertisers to deliver their messages and reach new customers through their current customer base.

Advertisers create FTF mailpieces and distribute them to their regular customers, who read the advertisers' messages and then send the pieces to their friends. The impact of the mailpiece increases since it is sent personally as a referral by a friend, family member, or colleague. In addition to acquiring new customers, FTF can be used for thank-you notes, recruiting, meeting notices, travel and hotel information, and many other things.

A key feature for advertisers is that they are charged for postage only when a piece is mailed between friends. Currently, 102 customers have registered to test FTF and have distributed approximately 8 million cards.

A New Friend-to Friend Mail Envelope Application

Previously, only FTF cards (standard or letter-size) were tested, but in January we will expand the test to include an envelope application. The first FTF envelope test customer is The National Youth Leadership Forum/The International Mission on Medicine. The piece will be mailed under First- Class Mail Permit No. 2467, Washington, DC. Samples of this and other FTF mailpieces are provided on page 6-8.

How Does Friend-to-Friend Mail Work?

FTF mailpieces contain markings similar to Business Reply Mail (BRM), but with three important differences:

1. BRM is labeled with the words "Business Reply Mail" and FTF mailpieces are labeled with the words "Friend-to-Friend Mail."

2. FTF mailpieces always contain a PLANET CodeTM.

3. FTF uses a FIM B not FIM C.

Prior to mailing, the commercial customer must obtain a First-Class Mail permit and establish an advance deposit account at the office where the permit is held. The commercial customer pays $150 to open the permit and then pays the First-Class Mail single-piece postage for every FTF piece mailed.

While FTF is considered pre-paid First-Class Mail, ensuring that postage is collected requires proper handling. FTF uses an automated accounting system that tracks and calculates postage when it's processed on our automated equipment. FTF mailpieces are scanned and the PLANET Codes are read by the ConfirmTM system during normal processing at both origin and destination plants. The PLANET Code contains a 5-digit ID that identifies the commercial customer. During processing, our automated equipment sprays an orange ID tag on the back of the mailpiece and a POSTNET Code representing the delivery address on the front. The combination of the PLANET Code, the ID tag, and the POSTNET Code provides a unique identifier for each FTF mailpiece.

The scan data obtained through the Confirm system is used to generate the FTF billing report. Every 2 weeks the FTF program office sends a billing statement to the customer and a copy to the office where the permit is held for postage deduction from the mailer's advance deposit account. The statement includes the number of pieces processed and the total amount of postage to be deducted.

FTF is not a substitute for BRM and should be delivered without delay to the addressee. No postage is collected and mailpieces should not be returned to the advertiser initiating the mailing.

How to Obtain More Information on Friend-to-Friend Mail

A complete package of FTF information can be found on the Postal Service Intranet at http://blue.usps.gov; click on Headquarters, then Marketing, then Customer Connection, then Product Info. You also can send questions by e-mail to the FTF program office at f2friend@email.usps.com, or call Lyn Seidler, FTF program manager, at 703-292-3861.

- Product Management,
Product Development, 1-23-03

Domestic Mail

DMM REVISION

Address Change Service - New Ancillary Service Options for First-Class Mail and Priority Mail Items

Effective January 23, 2003, Domestic Mail Manual (DMM) F010, F030, and M013 are revised to expand and clarify the standards related to the use of Address Change Service (ACS). The standards in F010 are revised and expanded to provide ACS participant mailers with new options for obtaining address correction or reason for nondelivery notices in conjunction with First-Class Mail® and Priority Mail^® service. A portion of the related standards in F030 and M013 are revised to clarify the conditions that apply to the use of ACS.

ACS is an automated electronic enhancement to the traditional manual method that centralizes, automates, and improves the process of providing address correction or reason for nondelivery notices to mailers. ACS is designed to reduce the volume of manual notifications provided for valid ACS pieces, but it does not completely eliminate manual notifications. ACS involves transmitting address correction information to a central point where the changes are consolidated electronically by unique publication or mailer identifier. The records are sequentially organized by codes assigned by the Postal Service. The identified records are then distributed using electronic media to each participating ACS mailer. The value of ACS is that it reduces costs for both mailers and the Postal Service.

To use ACS, a mailer must be assigned a unique ACS participant code by the Postal Service. Participating ACS mailers must keep their address records in an electronic format. Mailpieces must be marked with the ACS symbols required under M013, and also must bear a correct ancillary service endorsement under F010 to request address correction service.

For First-Class Mail and Priority Mail service, participating mailers can obtain ACS on valid pieces that display the ancillary service endorsement "Address Service Requested" or "Change Service Requested." In response to mailer requests, the National Customer Support Center (NCSC) is expanding the types of service provided for "Address Service Requested" and "Change Service Requested" when these endorsements are used in conjunction with ACS on First-Class Mail and Priority Mail items.

The DMM revisions to F010 allow mailers to choose one of the following two options under which valid First-Class Mail and Priority Mail ACS pieces that bear the endorsement "Address Service Requested" will be processed:

• Option 1 for "Address Service Requested" will continue to provide the same service already afforded to all pieces endorsed "Address Service Requested" (including ACS and non-ACS pieces). Mailers using Option 1 will continue to receive address correction and forwarding service during months 1 through 12 (if a change-of-address order is on file). In all other circumstances, unforwardable pieces will continue to be returned to the mailer with the new address or reason for nondelivery attached.

• Option 2 for "Address Service Requested" is available for use only by authorized ACS mailers who select this option. This option will allow ACS mailers to continue to receive address correction notices for forwardable mailpieces, but also adds the ability to receive separate electronic address correction notices along with the manual return of pieces that cannot be forwarded. This allows the mailer to process address corrections in an established electronic environment. The Computerized Forwarding System (CFS) units will key the ACS data on the returned pieces, but Postal Service processing of the mail does not change. Under Option 2 for "Address Service Requested," the ACS mailer will receive return-to-sender service for pieces that are not forwardable, and separate address correction notices will be provided subject to the appropriate fee.

For valid First-Class Mail or Priority Mail ACS pieces that bear the endorsement "Change Service Requested," the DMM revision to F010 allows mailers to choose one of the following two options under which the pieces will be processed:

• Option 1 for "Change Service Requested" is the same as the service already provided to ACS pieces endorsed "Change Service Requested." Accordingly, ACS mailers selecting Option 1 will continue to be provided with address correction or reason for nondelivery notices, while the mailpieces continue to be disposed of by the Postal Service.

• Option 2 for "Change Service Requested" will allow ACS mailers selecting this option to have valid ACS pieces forwarded during months 1 through 12 (if a change-of-address order is on file) rather than disposed of by the Postal Service. A separate address correction notice subject to the appropriate fee will also be issued when pieces are forwarded under this option.

Mailers using either "Address Service Requested" or "Change Service Requested" must not include the words "Option1" or "Option 2" as part of the endorsement on the mailpieces. NCSC will assist participating ACS mailers with selecting the option they desire. NCSC will ensure the mailer's ACS participant code and selected option are identified within CFS programming for processing purposes. The service provided under the option selected will be provided to the participating mailer's valid ACS pieces under the conditions that apply to ACS.

The DMM revisions to F030 and M013 simply clarify some of the information and conditions that apply to the use of ACS. For more information on ACS requirements, refer to Publication 8, Address Change Service.

Mailers should be aware that ACS is not a guaranteed service. As such, the Postal Service makes no assurance that any minimum percentage of a mailer's address correction notifications will be provided electronically rather than manually. The costs for obtaining address correction or nondelivery information under ACS will continue to be $0.70 for each manual notice and $0.20 for each electronic notice provided.

We will incorporate these revisions into the printed version of DMM Issue 58 and into the monthly update of the online DMM available via Postal Explorer at http://pe.usps.gov.

Domestic Mail Manual (DMM)

* * * * *

F Forwarding and Related Services

F000 Basic Services

F010 Basic Information

* * * * *

5.0 CLASS TREATMENT FOR ANCILLARY SERVICES

5.1 First-Class Mail and Priority Mail

Undeliverable-as-addressed (UAA) First-Class Mail (including stamped cards and postcards) and Priority Mail are treated as described in Exhibit 5.1, with these additional conditions:

[Revise item a to read as follows:]

a. First-Class Mail and Priority Mail cards and unregistered letters that do not appear to contain merchandise and do not bear "Return Service Requested" or "Change Service Requested" (Option 1) may be forwarded to international addresses.

* * * * *

[Revise item e to read as follows:]

e. "Change Service Requested" is not permitted for the following:

(1) Priority Mail other than Priority Mail containing perishable matter.

(2) First-Class Mail or Priority Mail containing live animals.

(3) First-Class Mail or Priority Mail with a special service other than Delivery Confirmation or Signature Confirmation.

[Add new item f to read as follows:]

f. Address Change Service (ACS) as described in F030 is available for First-Class Mail and Priority Mail displaying the appropriate ACS participant code for an authorized ACS participant in conjunction with a permitted ancillary service endorsement. The only endorsements permitted for use on valid First-Class Mail and Priority Mail ACS pieces are "Address Service Requested" and "Change Service Requested" subject to the following:

(1) "Address Service Requested" (Option 1) is valid for use on all mailpieces, including ACS participating pieces. "Address Service Requested" (Option 2) is valid for use only on ACS participating pieces.

(2) "Change Service Requested" (Options 1 and 2) are valid for use only on ACS participating pieces.

(3) The words "Option 1" or "Option 2" must not be part of the "Address Service Requested" or "Change Service Requested" endorsement on mailpieces.

(4) Participating ACS mailers are limited to selecting only one of the two options available for "Address Service Requested" and one of the two options available for "Change Service Requested." The option(s) selected along with the mailer's ACS participant code will be programmed at the CFS unit to facilitate processing of valid ACS pieces within the conditions that apply to ACS.

Exhibit 5.1 Treatment of Undeliverable First-Class Mail and Priority Mail

[Revise the entries for "Address Service Requested" and "Change Service Requested" to read as follows:]

1. Valid for all pieces, including Address Change Service (ACS) participating pieces subject to F030.

2. Valid only for ACS participating pieces subject to F030.

* * * * *

F030 Address Correction, Address Change, FASTforward, and Return Services

* * * * *

2.0 ADDRESS CHANGE SERVICE (ACS)

2.1 Description

[Revise 2.1 to read as follows:]

Address Change Service (ACS) is an automated electronic enhancement to the manual method that centralizes, automates, and improves the process of providing address correction or reason for nondelivery notices. ACS is designed to reduce the volume of manual notifications provided for valid participating ACS mailpieces, but it does not completely eliminate manual notifications. ACS involves transmitting address correction information to a central point where the changes are consolidated electronically by unique publication or mailer identifier. The records are sequentially organized by USPS-assigned codes and distributed to each participating mailer. Mailers must keep their address records in electronic format and mark their mailpieces with the ACS symbols under M013 and the correct endorsement under F010 to obtain address correction. To obtain nondelivery information under F010.4.1 in addition to address correction service, mailers must also use an ACS keyline on mailpieces. ACS can also be used to pay forwarding postage on most Standard Mail and Package Services pieces using Shipper Paid Forwarding under 2.5. Additional information for using ACS is contained in Publication 8, Address Change Service.

2.2 Availability

[Revise 2.2 to read as follows:]

ACS is available monthly, weekly, or more frequently, depending on the needs and ACS volume of the mailer. Because ACS is associated with USPS computerized forwarding operations, the service is not available at all post offices. Therefore, ACS is not a guaranteed service and the USPS makes no assurance that any minimum percentage of a mailer's address correction notifications will be provided electronically rather than manually. The use of an authorized ACS participant code and the required endorsement on mailpieces does not guarantee the return of all notifications in an electronic format. To participate in ACS, write to the National Customer Support Center (see G043 for address).

* * * * *

M Mail Preparation and Sortation

M000 General Preparation Standards

M010 Mailpieces

* * * * *

M013 Optional Endorsement Lines

1.0 USE

* * * * *

1.2 Keyline

[Revise 1.2 to read as follows:]

A mailer's keyline or comparable information may not be placed on the same line as the OEL or on the line above the OEL. A keyline used on valid ACS mailpieces is also subject to 2.4.

* * * * *

2.4 ACS Labels

[Add the following sentence at the end of 2.4 to read as follows:]

***A keyline prepared under 1.2 is required on valid ACS mailpieces if an ACS participant wants to receive notification of nondelivery information under F010.4.1 in addition to address correction service.

* * * * *

- Address Management
Chief Technology Officer, 1-23-03

NOTICE

Mailpieces to Guam Weighing 16 Ounces or More

Effective immediately, the Postal Service requests that customers affix either PS Form 2976, Customs Sender's Declaration, or PS Form 2976-A, Customs Declaration and Dispatch Note, on all mailpieces addressed to Guam (ZIP Code 969) weighing 16 ounces or more.

If a customer refuses to complete and sign PS Form 2976 or PS Form 2976-A, as prescribed, the Postal Service will send the mailpiece by ocean surface transportation. Advise customers that the Postal Service will retain a copy of the declaration as a record of mailing for 30 days.

- Commercial Air Operations,
Network Operations Management, 1-23-03