The Postal Service™ is promoting the general availability of the Postage Due Weight Averaging (PDWA) program for customers with a qualifying volume of postage due, Merchandise Return Service (MRS), and Bulk Parcel Return Service (BPRS) pieces. To participate, customers must receive at least 50,000 combined return pieces annually and, if approved, are required to enter into a service agreement with the Postal Service. The program includes postage due charges and other fees for ordinary unpaid and shortpaid parcels and flats for all classes of mail, as well as for pieces returned under MRS and BPRS programs.
PDWA is a comprehensive, statistically valid program used to calculate postage due returns in bulk rather than rating each individual piece. The program applies a postage due cost factor, generated through a 4-week rolling average sampling period to assess postage and fees based upon the net weight of each container. A new postage due cost factor is calculated and applied weekly based on the previous 4 weeks of sampling data. The 4-week rolling average is not applicable if a new PDWA system is implemented or if there is a rate change. When these circumstances occur the new postage due cost factor is determined through the sampling in the first week. That cost factor is then applied in the first 2 weeks. After the fourth week of sampling, the cost factor is a complete 4–week rolling average.
The PDWA program is designed to significantly reduce verification time, reduce turn-around time to customers, and provide a structured and consistent process to benefit customers and the Postal Service.
We will incorporate these changes in our August update of the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) Parts 507 and 705 as noted below.
Mailers may request to participate in the PDWA program immediately.
Mailing Standards of the United States Postal Service, Domestic Mail Manual
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500 Additional Mailing Services
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507 Mailer Services
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10.0 Merchandise Return Service
10.1 Rates and Fees
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[Add new 10.1.4 as follows:]
10.1.4 Postage Due Weight Averaging
MRS mailers may participate in the Postage Due Weight Averaging program described in 705.19.
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11.0 Bulk Parcel Return Service
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11.2 Charges and Fees
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[Add new 11.2.6 as follows:]
11.2.6 Postage Due Weight Averaging
BPRS mailers may participate in the Postage Due Weight Averaging program described in 705.19.
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700 Special Standards
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705 Advanced Preparation and Special Postage Payment Systems
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[Add new section 19.0 as follows:]
19.0 Postage Due Weight Averaging Program
19.1 Basic Information
19.1.1 Description
The Postage Due Weight Averaging (PDWA) program is a comprehensive, statistically valid program used to calculate postage due returns in bulk, rather than rating each individual piece. This program, subject to application, approval, and service agreement, is available for customers who receive a minimum of 50,000 combined postage due parcels and flats, Merchandise Return Service (MRS), or Bulk Parcel Return Service (BPRS) pieces. The PDWA program applies a postage due cost factor, generated through a 4-week rolling average sampling period, to assess postage and fees based upon the net weight of each container. A new postage due cost factor is calculated and applied weekly, based on the previous 4-weeks of sampling data. The 4-week rolling average is not applicable if a new PDWA system is implemented or if there is a postage rate change. When these circumstances occur, the new postage due cost factor is determined through the sampling in the first week. That new postage due cost factor is then applied in the first 2 weeks. After the fourth week of sampling, the postage due cost factor is a complete 4–week rolling average. PDWA is designed to significantly reduce processing time and provide for shorter verification time for customers.
19.1.2 General Qualification
A PDWA program may be authorized for applicants who receive a minimum of 50,000 combined returns per year. Returns can include all classes of mail where postage due fees are assessed, including MRS and BPRS return pieces. Only parcels and flats may be processed through the PDWA program. See 19.2 for application process.
19.1.3 Quality Control
PDWA customers may elect to establish and conduct a quality control program to ensure that all missorted and accountable mail (including certified, collect on delivery (COD), returned receipt for merchandise, Delivery Confirmation service, and Signature Confirmation services pieces) are identified and returned to the servicing Post Office prior to being opened. The program must include:
a. Training of all employees who process returns on how to identify accountable items.
b. Permanently displaying examples of accountable return items in full view of employees responsible for the identification of accountable returns.
c. Instructional material pertaining to identifying accountable returns.
d. The random selection and tracking of individual sample pieces within the customer’s operational process to assure that they are identified.
If the customer elects to not implement a quality control program, the customer must assume all responsibility for claims filed by clients who returned their product to them via accountable mail.
19.1.4 Service Agreement
A service agreement must be signed by the customer and agent, the postmaster, plant manager, district manager, marketing manager, and Business Mailer Support manager. The service agreement must specify, among other things, the customer’s quality control procedures and procedures for handling missorted and accountable mail.
19.2 Authorization
19.2.1 Application
The customer or agent must submit a PDWA application to the postmaster of the office through which delivery service is provided. The customer must provide information including current permits, authorizations, and average volume figures. The postmaster will provide input regarding staffing, hours of operation, standard operating procedures, and recommendations or comments for approval.
19.2.2 Approval
The Business Mailer Support manager, USPS Headquarters, approves or denies applications for PDWA systems.
19.2.3 Denial
If the PDWA application is not approved, the Business Mailer Support manager will send a written notice to the applicant with the reason for denial.
19.2.4 Authorization Period
Authorization remains in effect until the Business Mailer Support manager or the customer cancels the agreement. If Postal Service periodic reviews or customer-supplied information indicates a need for modification of the authorization, then the authorization will be amended with concurrence of the Business Mailer Support manager and the customer.
19.2.5 USPS Suspension
The Business Mailer Support manager may suspend a PDWA service agreement at any time if the agreement does not provide adequate revenue protection, or the customer (or agent) fails to meet the criteria established by the agreement.
19.2.6 Mailer Cancellation
The customer may cancel a PDWA agreement by writing to the Business Mailer Support manager (see DMM 608.8.0 for address).
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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 available via Postal Explorer® at http://pe.usps.com.
— Mailing Standards,
Pricing and Classification, 8-2-07
