A similar effort is underway to enable the cameras on flats sorters to decode Delivery Confirmation-type barcodes, barcodes used in special services, 4-state barcodes, and IBI and other two-dimensional barcodes.

     Modifications to PARS software to read ACS related data encoded in the 4-state version of the PLANET barcode began in 2003, and testing is expected in 2004. This would improve the productivity of PARS in providing address correction services.

     Common infrastructure reduces acquisition and operating costs. By developing a common set of requirements and specifications for barcode scanners on POS ONE terminals and using it for the Phase 3 procurement, the Postal Service was able to significantly lower the cost of scanners across all POS ONE terminals regardless of manufacturers. These scanners will be capable of supporting the Standard Shipping Label that is being defined.

     To support the Enhanced Distribution Label, an Automatic Tray Label Assignment System (ATLAS) is being developed to create unique labels for trays and sacks. Pilot testing of ATLAS began late in 2003, and will continue into 2004. It also supports the Surface Visibility Pilots.

     Currently, mail processing equipment is equipped with thermal printers to produce tray labels. These printers are nearing the end of their useful life, and better printers are now available. A new model has been selected as a replacement. It is backward compatible and offers higher print speed and quality. As the aging printers are retired, they will be replaced with the new printers.

     The backbone of all postal automation programs is a local area network (LAN) at each plant that provides the underlying data handling infrastructure. It is the conduit for downloading ZIP Code directories and sort plans to mail processing equipment, moving images of individual mailpieces for ZIP Code resolution, and moving operating and mail tracking data to computer servers for subsequent

processing. The existing LANs have a rudimentary design that merely provides a conduit for data for specific sets of equipment and computers that need to communicate with one another. As more automation equipment was deployed, multiple LANs were installed. Due to the increase in scope and sophistication in automation, over the years, the current LANs are no longer adequate to provide the capacity, reliability, and supportability needed in today's environment. Fixing or replacing these LANs on a piecemeal basis is costly and inefficient.

     In 2003, the Board of Governors approved $35 million of capital funding to build the Mail Processing Infrastructure (MPI) for 62 processing and distribution centers. The MPI uses a flexible, wired infrastructure that the telecommunications industry calls structured wiring. It is a set of standards for the design and installation of networks to maximize performance by ensuring flexibility, adequate bandwidth for communication between devices and integrity of the data traffic. It is the worldwide wiring standard today because it provides the highest reliability, scalability, and manageability at the least cost. Deployment of this phase of MPI began in 2003 and will be completed in 2004.

     The Integrated Data Systems were rolled out to the processing and distribution centers in 1998 as a centralized local storage infrastructure for equipment end-of-run reports and mail tracking data. The same infrastructure is now being implemented at all the BMCs to provide mail visibility. Deployment is scheduled to be completed in early 2004.

     Scanning of mail items with Delivery Confirmation, Certified Mail, Registered Mail, or other special services at overseas military units was introduced in 2003. This positions the Postal Service to better serve the merchandise mailers who ship orders to overseas military units.

     A new, secure Electronic Data Interchange channel through the Internet was implemented for interchange of data with air carriers. This is in support of the new Air System Contract, which intends to increase the value of the service provided by the