(Continued from Employee.)

International Mail

IMM AND PUBLICATION 51 REVISIONS

International Mail - Airmail Parcel Post Insurance to Ethiopia

Effective July 22, 2004, the International Mail Manual (IMM) and Publication 51, International Postal Rates and Fees, are revised to reflect the availability of insurance for airmail parcel post items to Ethiopia, with a maximum insurance indemnity limit of $1,000.

We will incorporate this revision into the printed version of IMM 30 and the next printed version of Publication 51, and also into the online versions of the IMM and Publication 51, both of which are available via Postal Explorer® at http://pe.usps.gov.

International Mail Manual (IMM)

* * * * *

Individual Country Listings

* * * * *

Ethiopia

* * * * *

Special Services

* * * * *

Insurance (320)

[Revise the section on insurance by removing the text "NOT Available" and adding new text and an insurance table to read as follows:]

Available for Airmail Parcel Post only (see 324.2 for required markings)

Insured Amount Not Over	Fee	Insured Amount Not Over	Fee
$50	$1.85	Add $1.00 for each additional $100 or fraction of insurance coverage.	blank
$100	$2.60	Add $1.00 for each additional $100 or fraction of insurance coverage.	blank
$200	$3.60	Add $1.00 for each additional $100 or fraction of insurance coverage.	blank
$300	$4.60	Add $1.00 for each additional $100 or fraction of insurance coverage.	blank
$400	$5.60	Add $1.00 for each additional $100 or fraction of insurance coverage.	blank
$500	$6.60	$1,000 max.	$11.60

* * * * *

Publication 51, International Postal Rates and Fees

* * * * *

Country Listing

[In the Country Listing, revise the entry for Ethiopia to read as follows (showing a revision in the column "Parcel Post Insurance Indemnity Limit ($)"):]

Country	EMS Rate Group	EMS Max. Weight Limit (lb.)	Airmail Parcel Post Rate Group	Economy (Surface) Parcel Post Rate Group	Parcel Post Max. Weight Limit (lb.)	Parcel Post Insurance Indemnity Limit ($)	Letter- post Rate Group *	GXG Rate Group
* * * * *
Ethiopia	10	44	10	10	66	1000	5	8
* * * * *

* * * * *

REMINDER

Preparation Requirements for International Priority Airmail to Canada

Canada Post has informed us that some mailers are failing to prepare International Priority Airmail (IPA) letter and flat mail as specified in the International Mail Manual (IMM). As noted in the IMM, mailers must place IPA letter and flat mail to Canada in trays - mailers cannot place such mail in sacks.

Postal ServiceTM acceptance unit clerks must identify any mail that is not prepared according to the IMM specifications and must have the mailer prepare it correctly before accepting it.

To remind mailers and acceptance personnel of the specifications, we are including the applicable IMM text with this article.

International Mail Manual (IMM)

* * * * *

2 Conditions for Mailing

* * * * *

290 Commercial Services

* * * * *

292 International Priority Airmail Service

* * * * *

292.4 Preparation Requirements for Individual Items

* * * * *

292.45 Sacking Requirements

* * * * *

292.455 Preparation Requirements for Canada

* * * * *

a. Letter-Size Mail and Flat-Size Mail. Letter-size items are prepared in letter trays, either half-size or full- size, depending on volume. Flat-size items are prepared in flat trays. All items must be faced in the same direction, and all trays must be full enough to keep the mail from mixing during transportation. Do not prepare the content of the tray in packages. The mailer must label each tray to show the destination in Canada and the dispatching U.S. International exchange office in the following format:

Line 1: Canadian Destination, U.S. Exchange Office
Code

Line 2: Contents

Line 3: Mailer, Mailer Location

Example:

MONTREAL QC FWD 003 IPA ABC COMPANY NEW YORK NY

In addition, the mailer must complete PS Tag 115, International Priority Airmail. Write "Canada" on the reverse and tape the tag to the tray sleeve. All trays must be banded.

* * * * *

- International Network Operations,
Network Operations Management, 7-22-04

REVISED PUBLICATION

Publication 141, Global Express Guaranteed Service Guide

We have revised Publication 141, Global Express Guaranteed Service Guide. Publication 141 sets forth the policies, regulations, and procedures governing Global Express Guaranteed® (GXGTM) services that the U.S. Postal Service® provides to the public.

We mailed copies of Publication 141 to participating Postal ServiceTM locations starting on June 4, 2004.

Publication 141 is also available on the following web sites:

• The Postal Service PolicyNet Web site:

- Go to http://blue.usps.gov.

- Under "Essential Links" in the left-hand column, click on References.

- Under "References" in the right-hand column, click on PolicyNet.

- Click on PUBs.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

• The Postal Service Internet Web site:

- Go to www.usps.com.

- Click on About USPS & News, then Forms & Publications, then Postal Periodicals and Publications, and then Publications.

• The Global Delivery Service Web site:

- Go to www.usps.com.

- Click on Send Mail & Packages, then International Delivery Options, then Global Express Guaranteed®, and then, under "Resource Center," Global Express Guaranteed Service Guide (PDF).

- International Product Development,
Product Development, 7-22-04

Philately

STAMP ANNOUNCEMENT 04-25

Navajo Jewelry Definitive Stamp

The Postal ServiceTM will issue a 2-cent, Navajo Jewelry definitive stamp (Item 107200) in a pressure-sensitive adhesive (PSA) pane of 20 on August 20, 2004, in Indianapolis, Indiana. The stamp, designed by Derry Noyes of Washington, DC, goes on sale nationwide August 21, 2004.

Inaugurated in 2002 with the American Toleware stamp, the American Design series showcases beautiful works of American art and crafts. The 2002 issuance featured American Toleware followed by American Clock and Tiffany Lamp (2003), and Chippendale Chair (2004).

For this fifth issuance in the American Treasures series, artist Lou Nolan painted a detail of a Navajo silver and turquoise necklace with sand-cast squash blossoms set with polished blue turquoise nuggets. Mr. Nolan based his painting on a photograph by Peter T. Furst. The necklace itself belongs to a private collector.

How to Order First Day of Issue Postmark

Customers have 30 days to obtain the first day of issue postmark by mail. They may purchase new stamps at their local Post OfficeTM, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. They should affix the stamps to envelopes of their choice, address the envelopes (to themselves or others), and place them in a larger envelope addressed to:

NAVAJO JEWELRY DEFINITIVE STAMP
POSTMASTER
125 W SOUTH ST
INDIANAPOLIS IN 46206-9998

Issue:	Navajo Jewelry
Item Number:	107200
Denomination & Type of Issue:	2-cent definitive
Format:	Pane of 20 (1 design)
Series:	American Design
Issue Date & City:	August 20, 2004, Indianapolis, IN 46206
Designer:	Derry Noyes, Washington, DC
Art Director:	Derry Noyes, Washington, DC
Typographer:	Derry Noyes, Washington, DC
Illustrator:	Lou Nolan, McLean, VA
Engraver:	Keating Gravure
Modeler:	Avery Dennison, SPD
Manufacturing Process:	Gravure
Printer:	Avery Dennison (AVR)
Printed at:	AVR, Clinton, SC
Press Type:	Dia Nippon Kiko (DNK)
Stamps per Pane:	20
Print Quantity:	100 million stamps
Paper Type:	Nonphosphored, Type III
Adhesive Type:	Pressure-sensitive
Processed at:	AVR, Clinton, SC
Colors:	Yellow, Cyan, Magenta, Black, PMS 309 (Green)
Stamp Orientation:	Vertical
Image Area (w x h):	0.730 x 0.840 in./18.542 x 21.336 mm
Overall Size (w x h):	0.870 x 0.980 in./22.098 x 24.943 mm
Full Pane Size (w x h):	5.250 x 4.921 in./133.35 x 124.9934 mm
Plate Size:	280 stamps per revolution
Plate Numbers:	"V" followed by five (5) single digits
Marginal Markings:	"© 2004 USPS" • Price • Plate position diagram
Plate Numbers	Four per pane • Four barcodes on back of each pane
Catalog Item Number(s):	107220 Block of 4 - $0.08 107230 Block of 10 - $0.20 107240 Full Pane of 20 - $0.40 107262 First Day Cover - $0.77

After applying the first day of issue postmark, the Postal Service will return the envelopes through the mail. There is no charge for the postmark. All orders must be postmarked by September 19, 2004.

How to Order First Day Covers

Stamp Fulfillment Services also offers first day covers for new stamp issues and Postal Service stationery items postmarked with the official first day of issue cancellation. Each item has an individual catalog number and is offered in the quarterly USA Philatelic catalog. Customers may request a free catalog by calling 800-STAMP-24 or writing to:

INFORMATION FULFILLMENT
DEPT 6270
US POSTAL SERVICE
PO BOX 219014
KANSAS CITY MO 64121-9014

Philatelic Products

There are no philatelic products for this stamp issue.

Distribution: Item 107200, 2-cent Navajo Jewelry, Definitive Stamp

All stamp distribution offices (SDOs) will receive an automatic distribution of Item 107200, 2-cent Navajo Jewelry, PSA pane of 20 stamps. Master carton size is 40,000 stamps.

Initial Supply to Post Offices

SDOs will not make a subsequent automatic distribution to Post Offices. To obtain an initial supply of this 2-cent definitive stamp, all Post Offices must immediately submit a separate PS Form 17, Stamp Requisition/Stamp Return, to their designated SDO. SDOs must not distribute these stamps to Post Offices before August 15, 2004.

Philatelic Requirement

SDOs with authorized philatelic centers will receive an automatic distribution of these stamps in 14 positions for subsequent distribution to each philatelic window.

SDOs That Serve This Many Philatelic Windows...	Will Receive This Quantity of the Navajo Jewelry Definitive Stamp, Item 107200
1	28,000
2	28,000
3	56,000
4	56,000
5	84,000
6	84,000
8	112,000
9	140,000
12	168,000
13	196,000
16	224,000
19	280,000

Additional Supply

Post Offices requiring additional Item 107200 must requisition them from their designated SDO using PS Form 17. SDOs requiring additional stamps must order them from the appropriate accountable paper depository (APD) using PS Form 17.

For fulfilling supplemental orders from SDOs, the San Francisco, Chicago, Memphis, and New York APDs will each receive 2,400,000 additional stamps; the Denver APD will receive 1,040,000 additional stamps.

For fulfilling supplemental orders from APDs, the Kansas City Stamp Services Center will receive 28,800,000 additional stamps.

- Stamp Services,
Government Relations, 7-22-04

STAMP ANNOUNCEMENT 04-26

Art of the American Indian Stamps

The Postal ServiceTM will issue 37-cent, Art of the American Indian commemorative stamps (Item 457300) in a pressure-sensitive adhesive (PSA) souvenir sheet of 10, in 10 designs on August 21, 2004, in Santa Fe, New Mexico. The stamps, designed by Richard Sheaff of Scottsdale, Arizona, go on sale nationwide August 22, 2004. This $3.70 souvenir sheet may not be split, and the stamps may not be sold individually.

This pane of 100 jumbo stamps offers a sampling of the diverse ways in which American Indians, in their everyday lives, created utilitarian, social, spiritual, and commercial objects that were also extraordinary expressions of beauty. The pane features photographs of 100 American Indian artifacts dating from around the 11th century A.D. to circa 1969. John Stevens, a calligrapher in Winston-Salem, North Carolina, designed and created the lettering in the title. Descriptive text on the back provides an overview and information about each of the 10 objects.

The first-day-of-issue ceremony will take place at 11 A.M. on August 21, 2004, at the Santa Fe Indian Market. This annual event sponsored by the Southwestern Association for Indian Arts (SWAIA) includes 1,200 artists from 100 tribes. The event attracts an estimated 100,000 visitors to Santa Fe from all over the world and is where Native American art meets the world. The stamp's issuance is also in anticipatory celebration of the September 2004 opening of the National Museum of the American Indian on the National Mall in Washington, DC.

The stamps will also be issued in a set of stamped cards (Item 884500).

How to Order First Day of Issue Postmark

Customers have 30 days to obtain the first day of issue postmark by mail. They may purchase new stamps at their local Post OfficeTM, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. They should affix the stamps to envelopes of their choice, address the envelopes (to themselves or others), and place them in a larger envelope addressed to:

ART OF THE AMERICAN INDIAN COMMEMORATIVE STAMPS
POSTMASTER
120 S FEDERAL PL
SANTA FE NM 87501-9998

After applying the first day of issue postmark, the Postal Service will return the envelopes through the mail. There is no charge for the postmark. All orders must be postmarked by September 20, 2004.

How to Order First Day Covers

Stamp Fulfillment Services also offers first day covers for new stamp issues and Postal Service stationery items postmarked with the official first day of issue cancellation. Each item has an individual catalog number and is offered in the quarterly USA Philatelic catalog. Customers may request a free catalog by calling 800-STAMP-24 or writing to:

INFORMATION FULFILLMENT
DEPT 6270
US POSTAL SERVICE
PO BOX 219014
KANSAS CITY MO 64121-9014

Philatelic Products

Two philatelic products are available for the Art of the American Indian stamps:

• Matted keepsake $21.95 (Item 457382).

• Stamped postal cards $9.75 (Item 884500).

These philatelic products will be available at postal stores, online at www.usps.com, and by telephone at 800 STAMP-24. The stamped postal cards will also be available at all Post Offices.

Distribution: Item 457300, $3.70 Art of the American Indian Souvenir Sheet of 10 Stamps

Stamp distribution offices (SDOs) will receive approximately three-fourths of their standard automatic distribution quantities for a PSA sheet stamp. Distributions are rounded up to the nearest master carton size (2,000 souvenir sheets/20,000 stamps).

Initial Supply to Post Offices

SDOs will make a subsequent automatic distribution to Post Offices for one-half of their standard automatic distribution quantities using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute this souvenir sheet to Post Offices before August 15, 2004.

Issue:	Art of the American Indian
Item Number:	457300
Denomination & Type of Issue:	37-cent commemorative
Format:	Souvenir Sheet of 10 (10 designs)
Series:	N/A
Issue Date & City:	August 21, 2004, Santa Fe, NM 87501
Designer:	Richard Sheaff, Scottsdale, AZ
Art Director:	Richard Sheaff, Scottsdale, AZ
Typographer:	Richard Sheaff, Scottsdale, AZ
Engraver:	Keating Gravure
Modeler:	Avery Dennison, SPD
Manufacturing Process:	Gravure
Printer:	Avery Dennison (AVR)
Printed at:	AVR, Clinton, SC
Press Type:	Dia Nippon Kiko (DNK)
Stamps per Sheet:	10
Print Quantity:	87 million stamps
Paper Type:	Nonphosphored, Type III
Adhesive Type:	Pressure-sensitive
Processed at:	AVR, Clinton, SC
Colors:	Yellow, Magenta, Cyan, Black; PMS 452 (Green)
Stamp Orientation:	Vertical
Image Area (w x h):	1.270 x 1.820 in./32.258 x 46.228 mm
Overall Size (w x h):	1.410 x 1.960 in./35.814 x 49.784 mm
Full Pane Size (w x h):	8.0 x 5.8125 in./203.20 x 147.6375 mm
Plate Size:	80 stamps per revolution
Plate Numbers:	N/A
Marginal Markings:	blank
Front:	Heading "ART OF THE AMERICAN INDIAN"
Back:	At the top of the pane, two paragraphs describe the diverse ways the American Indian artist uses creative expression. Each stamp has a paragraph written about the artifact image that appears on the stamp and the museum in which the piece of art is located • Barcode • "© 2003 USPS"
Catalog Item Number(s)	457340 Full Pane of 10 - $3.70 457362 FDC FP - $6.20 457364 Canceled FP - $6.20 457366 Stamped Cards - $9.75 457382 Matted Keepsake - $21.95 457391 Ceremony Keepsake - $9.65 457393 Full Pane w/First Day Cover - $9.90

Philatelic Requirement

SDOs will not receive a separate quantity of this souvenir sheet for their authorized philatelic centers. Philatelic centers must be supplied their quantities from the initial automatic distribution made to SDOs.

Additional Supply

Post Offices requiring additional souvenir sheets must requisition Item 457300 from their designated SDO using PS Form 17. SDOs requiring additional souvenir sheets must order them from the appropriate accountable paper depository (APD) using PS Form 17.

For fulfilling supplemental orders from SDOs, the Memphis, Chicago, and New York APDs will each receive 300,000 additional souvenir sheets; the San Francisco APD will receive 250,000 additional souvenir sheets; and the Denver APD will receive 200,000 additional souvenir sheets.

Sales Policy

All Post Offices must acquire and maintain a supply of each new commemorative stamp as long as customer demand exists, until inventory is depleted, or until the stamp is officially withdrawn from sale. If supplies run low, Post Offices must reorder additional quantities using their normal ordering procedures. The $3.70 Art of the American Indian souvenir sheet may not be split, and the stamps may not be sold individually.

Issue:	Art of the American Indian
Item Number:	884500
Denomination & Type of Issue:	23-cent stamped postal card
Format:	$9.75 stamped postal card booklet of 20 (10 designs)
Series:	N/A
Issue Date & City:	August 21, 2004, Santa Fe, NM 87501
Designer:	Richard Sheaff, Scottsdale, AZ
Art Director:	Richard Sheaff, Scottsdale, AZ
Typographer:	Richard Sheaff, Scottsdale, AZ
Engraver:	N/A
Modeler:	Donald Woo
Manufacturing Process:	Offset
Printer:	Banknote Corporation of America, Inc./SSP
Printed at:	Browns Summit, NC
Press Type:	Man Roland, 300
Cards per Set:	20
Print Quantity:	35,000 booklets (700,000 cards)
Paper Type:	Phosphored Tagged
Adhesive Type:	N/A
Colors:	Cyan, Magenta, Yellow, Black
Stamp Orientation:	Vertical
Card Size (w x h):	6 x 4.25 in./152.40 x 107.95 mm
Booklet Size (w x h):	6.75 x 4.25 in./171.45 x 107.95 mm
Plate Size:	12 cards per revolution
Plate Numbers:	N/A
Marginal/Backside Markings:	blank
Front:	Header • Stamp Design Image • "Twenty Stamped Postal Cards" • "Ten Designs $9.75"
Back:	USPS Logo • Design • Web site information • "© 2004 USPS" • Barcode
Catalog Item Number(s)	884566 Stamped Card Set - $9.75

- Stamp Services,
Government Relations, 7-22-04

Pictorial Cancellations Announcement

As a community service, the Postal ServiceTM offers pictorial cancellations to commemorate local events celebrated in communities throughout the nation. A list of events for which pictorial cancellations are authorized appears below. If available, the sponsor of the pictorial cancellation appears in italics under the date. Also provided, as space permits, are illustrations of those cancellations that were reproducible and available at press time.

People attending these local events may obtain the cancellation in person at the temporary Post OfficeTM station established there. Those who cannot attend the event, but who wish to obtain the cancellation, may submit a mail order request. Pictorial cancellations are available only for the dates indicated, and requests must be postmarked no later than 30 days following the requested pictorial cancellation date.

All requests must include a stamped envelope or postcard bearing at least the minimum First-Class Mail® postage. Items submitted for cancellation may not include postage issued after the date of the requested cancellation. Such items will be returned unserviced.

Customers wishing to obtain a cancellation should affix stamps to any envelope or postcard of their choice, address the envelope or postcard to themselves or others,insert a card of postcard thickness in envelopes for sturdiness, and tuck in the flap. Place the envelope or postcard in a larger envelope and address it to: PICTORIAL CANCELLATIONS, followed by the NAME OF THE STATION,ADDRESS, CITY, STATE, ZIP+4® CODE, exactly as listed below (using all capitals and no punctuation, except thehyphen in the ZIP+4 code).

Customers can also send stamped envelopes and postcards without addresses for cancellation, as long as they supply a larger envelope with adequate postage and their return address. After applying the pictorial cancellation, the Postal Service returns the items (with or without addresses) under addressed protective cover.

- Stamp Services,
Government Relations, 7-22-04

Post Offices

MOVER'S GUIDE NEWS

Spanish-Language Edition of Mover's Guide (Publication 75-S, La Mudanza) - July-September Edition Now Available

The July-September 2004 edition of Publication 75-S, La Mudanza (the Spanish edition of Publication 75, Mover's Guide), is now available.

You may order a 3-month supply of the July-September 2004 edition of La Mudanza from the Material Distribution Center (MDC) by using touch-tone order entry (TTOE): Call 800-332-0317, option 2.

Note: You must be registered to use TTOE. To register, call 800-332-0317, option 1, extension 2925, and follow the prompts to leave a message. (Wait 48 hours after registering before placing your first order.)

Discard/recycle all copies of expired stock once you receive the July-September 2004 edition. Please order only as many copies of this edition as you need for July through September. This version is valid for only 3 months. At the end of September, order your copies of the October-December edition of La Mudanza.

Please display La Mudanza next to the English edition of Mover's Guide.

Use the following information to order Publication 75-S:

PSIN: PUB 75-S
PSN: 7610-03-000-4096
Unit of Measure: EA
Minimum Order Quantity: 125
Bulk Pack Quantity: 1,000
Quick Pick Number: N/A
Price: No cost

- Address Management,
Intelligent Mail and Address Quality, 7-22-04

Retail

HANDBOOK PO-701 REVISION

Vehicle Assignment and Service Expectancies

Effective July 22, 2004, Section 221.2 and Exhibit 221.211 of Handbook PO-701, Fleet Management, are revised to reflect current information.

We will incorporate this revision into the next printed version of Handbook PO-701 and also into the online version of Handbook PO-701, which is available on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, click on PolicyNet.

• Click on HBKs.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

Handbook PO-701, Fleet Management

* * * * *

2 Vehicle Operations and Utilization

* * * * *

22 Vehicle Assignment, Scheduling, and Dispatching

221 Vehicle Assignment

* * * * *

[Revise the title and text of section 221.2 in its entirety to read as follows:]

221.2 Repair and Replacement of Vehicles

221.21 Vehicles Requiring Extensive Repair

Due to cumulative age and wear or extensive body damage, some vehicles might require considerable maintenance investment before being restored to operational service. Before authorizing extensive repairs, the district's manager of vehicle maintenance (MVM) must confirm with the functional customer that the vehicle is essential to operations. Additionally, the MVM must determine if the vehicle can be replaced with an existing surplus vehicle, or if it can be replaced more economically with a rented or leased vehicle until a permanent replacement is identified or acquired.

221.211 Scheduled Service Life and Maintenance Reinvestment

Before initiating any extensive vehicle repair, including a repair for major fire or body damage, vehicle maintenance facilities (VMFs) must assess maintenance reinvestment using PS Form 4587, Request to Repair, Replace, or Dispose of Postal- Owned Vehicle, in conjunction with Exhibit 221.211. The MVM and the district manager (DM) or the DM's designee (excluding vehicle maintenance employees) must concur on any decision to exceed the maintenance reinvestment guidelines in Exhibit 221.211.

Exhibit 221.211 Service Life and Maintenance Reinvestment Guidelines

* Note: Original LLV service life expectancy was based on an aluminum body and a planned mid-life refurbishment program. Life expectancy for aluminum-bodied right-hand drive vehicles (LLVs and FFVs) is now 24 years, with ongoing maintenance of individual vehicles (including engine and transmission replacement) on an as-needed basis. For years 13-24, the threshold for maintenance reinvestment requiring completion of PS Form 4587 remains at 20 percent.

** Includes Ford Windstar, Ford Aerostar, and Chrysler van-type vehicles acquired for delivery operations.

221.212 Retain Records Permanently

Permanently retain each individual work order for any engine, transmission, hour meter, or speedometer head replacement in the vehicle's maintenance file.

221.22 Surplus and Seized Vehicles

221.221 Use of Available Surplus Vehicles Required

VMFs must meet vehicle needs with existing Postal Service-owned vehicles whenever possible, documenting each vehicle requirement on PS Form 4515, Vehicle Request, Review, and Approval. Using PS Form 4515, the MVM will determine if surplus vehicles are available within the cluster. If surplus vehicles are not available, the MVM will contact the area vehicle maintenance programs analyst (VMPA), who will attempt to locate suitable vehicles in other performance clusters within the area. If no suitable vehicles are available, the VMPA will contact Headquarters Delivery Vehicle Operations (DVO), which may meet service needs by directing inter-area vehicle transfers or releasing storage vehicles. VMF personnel must thoroughly inspect vehicles released from storage and ensure that appearance deficiencies and all safety-related defects are corrected before the vehicle is returned to service. Note: The area manager of Distribution Networks Operations (DNO) is responsible for administering Postal Vehicle Service (PVS) requirements. The DNO reviews needs, identifies and reallocates available PVS vehicles, and approves leasing in periods between national acquisitions.

221.222 Office of Inspector General or Postal Inspection Service Vehicles

Office of Inspector General or Postal Inspection Service (OIG/IS) surplus vehicles are vehicles that are no longer required for OIG/IS use or that are no longer suitable for law enforcement applications. When a genuine need exists, the MVM may reassign serviceable and suitable surplus OIG/IS vehicles to the non-mailhauling fleet to defer or avoid acquiring replacement vehicles.

Special agents-in-charge (SAC) should notify the OIG vehicle control officer (VCO) at Headquarters of surplus or unsuitable vehicles. Postal Service inspectors-in-charge should notify the MVM when surplus or unsuitable vehicles are available. When the OIG VCO or a Postal Service inspector-in-charge releases surplus vehicles, VMF personnel should move the surplus OIG/IS vehicles to a VMF to facilitate their processing. If surplus vehicles are not needed for reassignment locally, the MVM must first notify the area VMPA of their availability for possible transfer to other clusters. If the area VMPA determines that there is no need for the surplus vehicles, the MVM must dispose of them in accordance with chapter 7.

Note: The reassignment of surplus vehicles (including full-size sedans) must be cost-effective and suitable. Reassigned vehicles must reflect an appropriate professional application and image. If surplus vehicles present an image that is too "sporty" or extravagant, the MVM must dispose of such vehicles in accordance with chapter 7. Prior to vehicle redeployment or disposal, VMF personnel must ensure that all "police package" equipment (e.g., lights, sirens, and specialty radios) are removed.

221.223 Seized Vehicles

When the Inspection Service seizes vehicles as a result of law enforcement activity and does not redirect them for use in the Inspection Service fleet, the chief inspector or designee will notify the local MVM of seized vehicles to be released to the nearest VMF for disposal. The VMF will promptly dispose of the seized vehicles in accordance with chapter 7. With the exception of authorized Inspection Service applications, the Postal Service will not use seized vehicles in its fleet.

221.23 New Vehicles

221.231 Purchase of Mailhauling Vehicles Restricted

Headquarters controls the purchase of all new or replacement mailhauling vehicles for delivery and Postal Vehicle Service (PVS) applications. The Delivery and Retail group is responsible for delivery requirements, and the Network Operations group is responsible for PVS requirements. No other organization or field office may initiate a purchase of mailhauling vehicles without the specific written authorization from the senior vice president of Operations. In periods between national acquisitions, the MVM and DNO must meet local needs first by reallocating existing vehicles (see section 221.221) and then by using vehicle rental/lease (see part 221.5). Headquarters may periodically issue supplemental instructions or restrictions to the purchase, rental, or lease of mailhauling vehicles.

221.232 Purchase of Non-Mailhauling Vehicles

Clusters must compile and prioritize local requirements for non-mailhauling vehicles annually in accordance with field budget processes and meet those requirements through improved utilization or redeployment of existing vehicles to the maximum extent practicable. MVMs should submit residual requirements to the area VMPA, who then reviews, compiles, approves, and forwards the residual requirements to Supply Material Management (SMM) at the Vehicles CMC. The SMM submits the funding request to Headquarters Finance for review. Upon funding approval, each district VMF enters its approved and funded orders in accordance with the ordering instructions published on the Vehicles CMC web site at http://blue.usps.gov/purchase/material/pmsc/philadelphia/dlphi.htm; click on Non-Mailhauling Vehicles, then on Non-Mailhauling Vehicles ordering process, and then follow the procedures noted there.

221.233 Restriction on Purchase of Non-Mailhauling Vehicles

Vehicles CMC is authorized to purchase full-size non-mailhauling vehicles only for Postal Service vice presidents and the Postal Inspection Service. See section 221.222 for reallocation of surplus Inspection Service vehicles.

221.234 Consideration of Alternative Fuel Vehicles Required

The Energy Policy Act of 1992 requires that certain percentages of newly purchased or leased Postal Service vehicles be capable of using alternative fuels. (Refer to Management Instruction AS-550-1999-4, Alternative Fuel Vehicle Program). To the maximum extent practicable, the MVM must specify suitable alternative fuel vehicles (AFVs) when submitting requests for light-duty vehicles - e.g., those less than 8,500 lbs. gross vehicle weight rating (GVWR) - through the area VMPA to the Vehicles CMC for acquisition (see section 221.231). Vehicles CMC may return requests for acquisition of non-AFVs to the area or cluster for additional review or information, as necessary to ensure Postal Service compliance with the Energy Policy Act.

221.24 Assignment of Older Vehicles

The MVM will assign vehicles that are nearing replacement due to age, mileage, or high maintenance cost to locations closer to the VMF or a designated maintenance provider. When practicable, deploy them to less-demanding assignments. This will minimize overall repair cost and will avoid disruption of service at offices that may not be able to obtain prompt local maintenance service.

* * * * *

- Delivery Vehicle Operations, Delivery and Retail, 7-22-04

PhotoStamps - In Market Test Phase

A new form of USPS®- approved PC Postage® known as PhotoStampsTM is in the market test phase. The new PhotoStampsTM labels (shown on this page) are in the mail stream beginning July 23, 2004. These PhotoStamps labels are authorized postage, so employees must process them as usual, without delay.

PhotoStampsTM is an online commercial service that allows customers to create postage with their own designs, images, and photographs. The product is a variation of Stamps.com's NetStampsTM, and has been approved and in popular use since June 2002. PC Postage products like NetStamps use secure Information Based Indicia (IBI) technology to provide maximum revenue protection and mail intelligence while also providing extended value to the customer.

The PhotoStamps label measures approximately 1.4 inches by 1.8 inches and includes unique serrations on one side. The label base material of the PhotoStamp product has proprietary invisible florescent material printed onto it for added security. The image covers approximately two- thirds of the face of the label with the remaining one-third containing the indicia information, two dimensional (2D) barcode, a human readable unique serial number, and the postage face value.

During the market test phase, PhotoStamps offers seven full-rate postage mail types and values for use with assorted mailpieces. The mail types and values are:

• Postcard ($0.23).

• Regular envelope ($0.37).

• Large envelope ($0.49).

• Two-ounce envelope ($0.60).

• Three-ounce envelope ($0.83).

• Four-ounce envelope ($1.06).

• Priority Mail® service Flat Rate envelope ($3.85).

The online interface also allows customers to change the border color of their PhotoStamps labels.

- Product Development,
Postage Technology Management, 7-22-04

Supply Management

PM REVISION

Purchasing Manual - Chapters 1 and 2

Effective July 22, 2004, the following sections of the Purchasing Manual have been revised:

• Section 1.4.4.b.3 has been changed to correct a typographical error.

• Section 2.1.6.c.4(a) has been rewritten to reflect the new job titles resulting from the reorganization of Supply Management.

We will incorporate these revisions into the next update of the online version of the Purchasing Manual, Issue 3, available on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, click on PolicyNet.

• Click on Manuals.

Purchasing Manual (PM)

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1 Authority, Responsibility and Policy

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1.4 Purchasing Authority

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1.4.4 Appointment and Selection

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1.4.4.b Selection

[Revise the second sentence of 1.4.4.b.3 to read as follows:]

1.4.4.b.3 Qualifications. Appointment to a particular contracting officer level requires progressively more exacting qualifications. However, all individuals nominated to be contracting officers, with the exception of those individuals nominated and holding a certification described in item (a) of this section must have baccalaureate degrees. ***

* * * * *

2 Purchase Planning

2.1 Policy

* * * * *

2.1.6 Purchase Method

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2.1.6.c Noncompetitive Purchase Method.

* * * * *

2.1.6.c.4 Reviews and Approvals

[Revise 2.1.6.c.4(a) to read as follows:]

2.1.6.c.4(a) The VP, SM, has delegated noncompetitive review and approval authority for contracts up to and including $10 million, by letter of delegation, to the managers, Facilities, Mail Equipment, Services, Supplies, and Transportation Portfolios, and to the managers, Operations, Supply Chain Management Strategies, and Supply Management Infrastructure, who may, consistent with those delegations, redelegate, by letter of delegation, some of that authority to subordinate managers and contracting officers.

* * * * *

- Supply Management Infrastructure,
Supply Management, 7-22-04

NON-SUPPLY MANAGEMENT EMPLOYEES

Total Cost of Ownership (TCO)

Have you ever wondered why Supply Management suggests that you make eBuy purchases, paying a seemingly higher price for an item that is available at a local store? You probably ask yourself, "Why would management want me to pay a higher price for something and at the same time tell me to do all I can to hold costs down?" The frustration of this situation seems quite valid, but if you take a closer look at all the costs involved in making a purchase from a local supplier and compare them to how little it costs to make an eBuy purchase, you will come away with a different conclusion. This closer examination is often referred to as an "all-in-cost" or "true cost," or "total cost of ownership" (TCO) analysis.

Hidden Costs

A TCO analysis is routinely performed for items that Supply Management purchases from all of the Postal Service'sTM national strategic contracts (e.g., office supplies, custodial products, furniture, etc.). All purchasing decisions take item price into consideration, as this is usually the major component of the total cost. However, Supply Management professionals also take into account "all-in-cost" components - the hidden costs associated with requisition preparation and approval, invoicing, and payment - before awarding a contract.

An example of an "all-in-cost" consideration in a TCO analysis is the shipping and handling (S&H) cost. When you order items from eBuy, the item price almost always includes S&H. Even if you pick up the item yourself to avoid the S&H costs, you still have to factor in the cost of your time and - if you use a Postal Service vehicle to pick up the item - the cost of gas and maintenance.

Other less obvious costs are those associated with requisition preparation and approval, invoicing, and payment. The least expensive way to make and pay for a Postal Service purchase is by using eBuy. With eBuy, requisition preparation and approval, invoicing, and payment are made electronically. If you purchase an item locally and pay for it using miscellaneous disbursement, no-fee money orders, or cash, the administrative costs to process the associated paperwork are significant, often costing more than the price paid for the item. Of course, using a Postal Service credit card helps to lower these costs, but when you consider the credit card reconciliation process, eBuy is still by far the least expensive method for anyone in the Postal Service to purchase and pay for an item.

You may often spend several hours searching for better prices for items you want to purchase. If you look hard enough, you may find the item you are looking for on sale. But considering the time and effort you spend to hunt out this "bargain," when you do find it, that bargain may, in fact, not be a bargain at all. Also, do not make the mistake of comparing the price of an item in one of our supplier's commercial catalogs with that of a competitor. Commercial catalogs do not show the Postal Service's negotiated prices. To obtain these prices, you must look the item up in eBuy or call the supplier and ask for the special Postal Service price. You will be pleasantly surprised at the discount.

All of these less obvious transaction costs are real and must be taken into consideration. The "hidden" costs of time spent tracking down the correct order information, shopping for the lowest price, placing and receiving the order, processing and paying the invoice, and all of the associated material costs for these necessary steps are significant. However, when you use eBuy, you can be assured of receiving a quality product, timely delivery, and a fair price at the absolute lowest transaction costs to the Postal Service. eBuy incorporates the latest technological advances to ensure our transaction costs are always kept to a minimum.

Product Quality Costs

Costs associated with product quality (warranties and returns) are also often overlooked. When you purchase an item through eBuy from one of our national strategic suppliers, warranty issues and returns are not a problem. Each of these suppliers has agreed to total customer satisfaction. Warranty issues and returns are accepted without added costs, such as restocking charges. Additionally, Supply Management professionals are available to assist if you have a problem with a purchase from these suppliers. Our purchasing power with these suppliers is significant and suppliers do not want to lose Postal Service business due to unsatisfied customers.

There are also important organization-wide strategic benefits to consider when making a purchasing decision. The Postal Service takes its corporate goals toward environmental stewardship, supplier diversity, and small- business development very seriously. Each strategic partner is committed to search out and offer environmentally friendly products and services, manufactured by small minority- or woman-owned businesses. Similarly, there are important legal requirements that must be met throughout the purchasing process such as compliance with the Javits- Wagner-O'Day Act. This act mandates that certain items must be purchased from workshops that provide employment opportunities for blind and severely disabled persons.

Additionally, knowing how much the Postal Service spends for products and services is invaluable for Supply Management when making future strategic sourcing decisions. If we can accurately identify and consolidate similar purchases, we can leverage the organization's total spending to negotiate larger discounts from our suppliers. This "cheaper by the dozen" principle can amount to huge savings when applied to a $66 billion organization. All of these strategic nonprice issues are automatically addressed when making purchases from our suppliers.

In short, TCO analysis is an important step that Supply Management professionals always consider when selecting a national supplier. So the next time you see an item "on sale" at a local business and wonder why you are asked to pay a slightly higher price through a Postal Service national contract, remember that a whole team of Supply Management professionals worked to ensure that you get the absolute best value (a combination of quality, delivery, and price) at the absolute lowest total cost of ownership.

- SCM Strategies,
Supply Management, 7-22-04