Effective October 5, 2009, the Postal Service™ is implementing a volume incentive program for qualified mailers of commercial (automation and/or Presort) First-Class Mail® cards, letters, and/or flats, for volume mailed during the program period above their USPS®-determined threshold level. The First-Class Mail Incentive Program period will be from October 1, 2009, through December 31, 2009. Mailers may obtain additional information by reviewing the Federal Register notice titled “First-Class Mail Incentive Program,” available via Postal Explorer® at http://pe.usps.com; click Federal Register Notices.
To participate, mailers must be the permit holder (i.e., owner) of a permit imprint advance deposit account(s) or the owner of qualifying mail volume entered through the permit imprint advance deposit account of a mail service provider. Qualifying mail owners must be able to demonstrate volume of at least five-hundred thousand (500,000) commercial First-Class Mail cards, letters, and/or flats pieces within the period of October 1, 2007, to December 31, 2007, and five-hundred thousand (500,000) commercial First-Class Mail cards, letters, and/or flats pieces within the period of October 1, 2008, to December 31, 2008, for a permit imprint advance deposit account(s), precanceled stamp permit(s), postage meter permit(s), or by a combination of these methods. Applicants may also qualify for the program with volume mailed through an account(s) owned by a mail service provider, when adequate documentation is provided that specifies the applicant is the owner of the mail. Those mail owners eligible to participate in the program will be notified of their eligibility, in writing, on or before October 15, 2009. Mail owners wishing to participate in the program, who believe they meet the eligibility standards under DMM 709.3.2 and were not notified by letter, may request a review of their eligibility by contacting USPS at firstclassmailincentive@ usps.gov.
As part of the application process, participating mail owners will be required to provide historical data demonstrating their commercial First-Class Mail cards, letters, and/or flats volumes mailed within the periods of October 1, 2007, through December 31, 2007; October 1, 2008, through December 31, 2008; September 2008; and January 2009.
Participating mail owners demonstrating commercial First-Class Mail cards, letters, or flats volume above their established threshold level will receive a credit following the close of the program period. Thresholds will be calculated independently for each applicant, by comparing the volume of commercial First-Class Mail cards, letters, and/or flats mailed within the period from October 1, 2007, through December 31, 2007, to the volume mailed within the period of October 1, 2008, through December 31, 2008. The change in recorded volume between these two periods will represent the applicant’s volume trend. Trends that show growth for the period of October 1, 2008, to December 31, 2008, versus that shown in the same period of the prior year, will appear as a ratio above 1.0 (expressed here in a decimal format). Trends that show a volume decline for the period of October 1, 2008, to December 31, 2008, will appear as a ratio below 1.0. The applicable ratio will then be applied to the volume of commercial First-Class Mail cards, letters, and flats mailed within the period of October 1, 2008, to December 31, 2008. This result represents the USPS-determined threshold level for an individual applicant.
Mail owners (applicants) are 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 through a mail service provider’s permit may also qualify for the program, but only if adequate documentation identifies the mail as being prepared on behalf of the applicant and demonstrates the applicant’s prior mailing activity. Mail service providers are not eligible to participate in the First-Class Mail Incentive Program. The Postal Service encourages participants to provide electronic postage statements for all eligible mailings during the program and review periods.
Approved program participants demonstrating an increase in their total commercial First-Class Mail cards, letters, and/or flats volume above their approved threshold level will qualify for a credit to a designated permit imprint advance account, to a Centralized Account Payment System (CAPS) account, or paid through another approved method. The total postage attributable to commercial First-Class Mail cards, 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 receive a credit in the amount of 20 percent of the average price per piece for the total number of mailpieces of the incremental volume above their approved threshold level as recorded during the program period.
The First-Class Mail Incentive Program encourages mailers to generate new mail volume. As a deterrent to mailers shifting previously planned volume into the program to obtain incentive credits, the mailing activity of participating mail owners will be monitored in the calendar months prior to and following the end of the program as follows:
n The participant’s previously determined volume trend will be applied to their volume of commercial First-Class Mail cards, letters, and flats mailed within the months of September 2008 and January 2009, to determine the participant’s September 2009 and January 2010 expected volume.
n Each participant’s actual September 2009 and January 2010 volume will then be compared to their respective September 2009 and January 2010 expected volume.
n Participants failing to meet (or exceed) either of their expected volume thresholds will have any demonstrated shortfall in volume deducted from the number of mailpieces eligible for an incentive credit within the program.
n Participants demonstrating a shortfall in volume to either their September 2009 or January 2010 expected volumes will have that shortfall deducted from the number of mailpieces eligible for an incentive credit within the program regardless of any surplus demonstrated in the expected volume threshold of the other month.
Additionally, as part of the program administration, the Postal Service will require each program participant to certify the data used to calculate the volume trends, threshold levels, and their September 2009 and January 2010 expected volumes. This certification requirement will be similar to what is currently used on PS Form 3600, Postage Statement First-Class Mail and Priority Mail. The certification requirement for this initiative is aimed at ensuring that the data used by the Postal Service to calculate the applicable volume trend, threshold level, and September 2009 and January 2010 expected volume for each qualifying mailer is accurate.
These revisions will be included in the October 5, 2009, version of the online DMM available via Postal Explorer® at http://pe.usps.com, and will be incorporated into the next printed version of the DMM.
— Mailing Standards,
Pricing, 9-24-09
