Proposed Rule2022-09327
Periodic Reporting
Primary source
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Published
May 2, 2022
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is proposing revisions to existing annual and periodic service performance reporting requirements for the Postal Service's market dominant products as well as related revisions consistent with the Postal Service Reform Act of 2022. This document informs the public of the filing, invites public comment, and takes other administrative steps.
Full Text
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<title>Federal Register, Volume 87 Issue 84 (Monday, May 2, 2022)</title>
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[Federal Register Volume 87, Number 84 (Monday, May 2, 2022)]
[Proposed Rules]
[Pages 25595-25598]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-09327]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3055
[Docket No. RM2022-7; Order No. 6160]
RIN 3211-AA32
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Advance notice of proposed rulemaking.
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SUMMARY: The Commission is proposing revisions to existing annual and
periodic service performance reporting requirements for the Postal
Service's market dominant products as well as related revisions
consistent with the Postal Service Reform Act of 2022. This document
informs the public of the filing, invites public comment, and takes
other administrative steps.
DATES: Comments are due: June 3, 2022. Reply comments are due: June 24,
2022.
ADDRESSES: Submit comments electronically via the Commission's Filing
Online system at <a href="https://www.prc.gov">https://www.prc.gov</a>. Those who cannot submit comments
electronically should contact the person identified in the FOR FURTHER
INFORMATION CONTACT section by telephone for advice on filing
alternatives.
FOR FURTHER INFORMATION CONTACT: David A. Trissell, General Counsel, at
202-789-6820.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Introduction
II. Background
III. Invitation To Comment
IV. Administrative Actions
V. Ordering Paragraphs
I. Introduction
The Commission initiates this rulemaking to consider revisions to
update the existing annual and periodic service performance reporting
requirements for the Postal Service's Market Dominant products, which
are codified in 39 CFR part 3055, subparts A and B, as well as related
revisions consistent with the Postal Service Reform Act of 2022
(PSRA).\1\ The Commission hereby seeks comments to facilitate the
Commission's examination of these reporting requirements.
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\1\ See Postal Service Reform Act of 2022, H.R. 3076, 117th
Cong. (2022).
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II. Background
The Postal Accountability and Enhancement Act (PAEA) granted the
Commission enhanced information gathering and reporting
responsibilities. See 39 U.S.C. 3652(e)(1). The PAEA provides that the
Commission shall prescribe the content and form of the public reports
that the Postal Service files with the Commission under section 3652.
Id. In doing so, the Commission must attempt to provide the public with
timely information that is adequate to allow it to assess the
lawfulness of Postal Service rates, should attempt to avoid unnecessary
or unwarranted Postal Service effort and expense, and must endeavor to
protect the confidentiality of commercially sensitive information. See
id. The Commission may initiate proceedings to improve the quality,
accuracy, or completeness of Postal Service reporting whenever it
determines that the service performance data have become significantly
inadequate, could be significantly improved, or otherwise require
revision as necessitated by the public interest. 39 U.S.C. 3652(e)(2).
In Docket No. RM2009-11, the Commission issued its initial periodic
reporting requirements of service performance measurements under the
PAEA.\2\ Since then, there have been a number of relevant modifications
to those requirements as well as the systems used to measure service
performance generally.\3\ Moreover, in
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FY 2019 and again in FY 2021, service performance reporting for many
products that had previously been measured using external methods began
to use the Postal Service's internal service performance measurement
system.\4\
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\2\ Docket No. RM2009-11, Order Establishing Final Rules
Concerning Periodic Reporting of Service Performance Measurements
and Customer Satisfaction, May 25, 2010 (Order No. 465).
\3\ See Docket No. PI2015-1, Order Approving Use of Internal
Measurements Systems, July 5, 2018, at 13 n.31 (Order No. 4697);
Docket No. PI2015-1, Errata to Order No. 4697, August 21, 2018
(Order No. 4771); see also Docket No. PI2022-3, United States Postal
Service Notice of Filing Changes to Service Performance Measurement
Plan Document, April 22, 2022, at 1 (describing changes to the
service performance measurement plan pending before the Commission,
including a revision to how ``Start-the-Clock'' events are measured,
the addition of Reply Mail in the Single-Piece First-Class Letters/
Cards/Flats category, and a revision to the critical entry time for
Periodicals); United States Postal Service, Office of Inspector
General, Report No. CRR-AR-11-003, Service Performance Measurement
Data--Commercial Mail, September 6, 2011, at 2-3, 13, available at
<a href="https://www.uspsoig.gov/sites/default/files/document-library-files/2015/CRR-AR-11-003.pdf">https://www.uspsoig.gov/sites/default/files/document-library-files/2015/CRR-AR-11-003.pdf</a> (determining that the process used to obtain
service performance scores for commercial mail was ``not effective''
due to ``significant data quantity, accuracy, and reliability
issues,'' based on an interim audit conducted from November 2010
through September 2011); United States Postal Service, Office of
Inspector General, Report No. CRR-AR-12-005, Service Performance
Measurement Data--Commercial Mail, June 25, 2012, at 3, 11,
available at <a href="https://www.uspsoig.gov/sites/default/files/document-library-files/2015/CRR-AR-12-005.pdf">https://www.uspsoig.gov/sites/default/files/document-library-files/2015/CRR-AR-12-005.pdf</a> (reviewing the actions of the
Postal Service taken to address the issues identified in Report No.
CRR-AR-11-003 and concluding that service performance measurement
data for mail measured with Full Service Intelligent Mail barcodes
(IMbs) were ``generally reliable,'' based on audit conducted from
July 2011 through June 2012); Docket No. PI2016-1, Order Enhancing
Service Performance Reporting Requirements and Closing Docket,
August 26, 2016, at 1-3 (Order No. 3490) (enhancing the reporting
requirements imposed on the Postal Service in continuation of the
Commission's monitoring of service performance and assessment of the
accuracy, reliability, and representativeness of the underlying
data).
\4\ See Order No. 4697 at 1-4, 66-67; Docket No. PI2019-1, Order
Granting Request and Approving Use of Internal Service Performance
Measurement System, July 1, 2020, at 1-2, 10-11 (Order No. 5576).
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There have also been several significant changes to relevant
service standards. Most recently, in FY 2021 the Postal Service
modified its service standards for First-Class Mail and end-to-end
Periodicals.\5\ Subsequently, the Commission explained that it intended
to initiate a separate rulemaking proceeding to consider potential
improvements to the existing service performance reporting
requirements.\6\
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\5\ See Revised Service Standards for Market-Dominant Mail
Products, 86 FR 43941 (Aug. 11, 2021) (codified at 39 CFR part 121);
see also Docket No. N2021-1, Advisory Opinion on Service Changes
Associated with First-Class Mail and Periodicals, July 20, 2021
(Docket No. N2021-1 Advisory Opinion). The Postal Service also
requested an advisory opinion from the Commission regarding
revisions to service standards for a Competitive product, First-
Class Package Service, but has not implemented the new standards
yet. See Docket No. N2021-2, United States Postal Service Request
for an Advisory Opinion on Changes in the Nature of Postal Services,
June 17, 2021; see also Docket No. N2021-2, Advisory Opinion on the
Service Standard Changes Associated with First-Class Package
Service, September 29, 2021. Additionally, the Postal Service
requested an advisory opinion from the Commission regarding changes
to the service standards for two additional Competitive products,
Retail Ground and Parcel Select Ground, which remain pending before
the Commission. See Docket No. N2022-1, United States Postal
Service's Request for an Advisory Opinion on Changes in the Nature
of Postal Services, March 21, 2022.
\6\ See Docket No. PI2021-3, Order Approving Modifications to
Market Dominant Service Performance Measurement Systems and Closing
Docket, September 28, 2021, at 8 (Order No. 5989).
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Additionally, on April 6, 2022, the PSRA was signed into law. The
PSRA imposed requirements on the Postal Service and the Commission that
require consideration of changes to 39 CFR part 3055. Specifically, the
PSRA directs the Postal Service to develop and maintain a publicly
available online ``dashboard'' that provides weekly service performance
data for Market Dominant products. See 39 U.S.C. 3692(c). It also
mandates that the Commission provide reporting requirements for this
Postal Service dashboard as well as ``recommendations for any
modifications to the Postal Service's measurement systems necessary to
measure and publish the performance information'' located on the
dashboard. 39 U.S.C. 3692(b). The PSRA also authorizes the Postal
Service to provide certain nonpostal services to the public and other
Governmental agencies and requires the Postal Service to periodically
report the quality of service for these nonpostal services. See 39
U.S.C. 3703-3705.
In light of these developments, the Commission has initiated this
docket in order to update the service performance reporting
requirements codified in 39 CFR part 3055.
III. Invitation To Comment
Interested persons are invited to provide written comments to
facilitate the Commission's examination of the service performance
reporting requirements. The Commission seeks comments specifically on
the usefulness and relevance of the potential new reporting
requirements and the frequency of the Postal Service's obligation to
provide such corresponding data. In making their comments, commenters
are encouraged to provide specific language (so-called ``redlines'')
for the new or amended regulations. If the Postal Service claims that a
potential modification is particularly onerous, involves costly new
data collection, or does not appear to add useful transparency, the
Postal Service is requested to quantify its incremental cost or burden.
A. Modifications to 39 CFR Part 3055, Subparts A and B
In terms of the proposed changes to 39 CFR part 3055, subparts A
and B, the Commission intends for the Postal Service to continue to
provide on-time service percentage and variance data for each Market
Dominant product. The Commission is seeking comment on the following
specific potential new reporting requirements concerning its Market
Dominant products.
First, the Commission is considering requiring the Postal Service
to report the average actual calendar days to delivery for all Market
Dominant products. This information is often provided by the Postal
Service in communications that it submits directly to the public for
certain types of mail--for example, via press releases and election
reports.\7\ This type of information is useful in that it is easily
understood by the public and presents a picture of the actual service
being provided at any given time.
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\7\ See, e.g., David Partenheimer, USPS Highest Service
Performance Scores Across All Mail Categories Since Pre-2021 Holiday
Season, United States Postal Service (April 1, 2022), available at
<a href="https://about.usps.com/newsroom/national-releases/2022/0401-usps-highest-service-performance-scores-across-all-mail-categories.htm">https://about.usps.com/newsroom/national-releases/2022/0401-usps-highest-service-performance-scores-across-all-mail-categories.htm</a>
(reporting that ``[a]verage mail delivery time across nation remains
2.7 days''); United States Postal Service, 2020 Post-Election
Analysis: Delivering the Nation's Election Mail in an Extraordinary
Year, updated January 12, 2021, at 2, available at <a href="https://about.usps.com/newsroom/national-releases/2021/usps_postelectionanalysis_1-12-21_georgia.pdf">https://about.usps.com/newsroom/national-releases/2021/usps_postelectionanalysis_1-12-21_georgia.pdf</a> (explaining that the
Postal Service ``delivered ballots to voters in 2.1 days'' and
``delivered ballots from voters to election officials in just 1.6
days'').
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Second, the Commission intends to require the Postal Service to
report root cause point impact data for all Market Dominant
products.\8\ The term ``point impact'' refers to the amount (number of
percentage points) by which on-time performance decreased due to a
specific root cause of failure. These data are useful in isolating
significant drivers of delay for an individual product and have been
previously provided by the Postal Service as part of the Annual
Compliance Review proceedings. See, e.g., FY 2021 ACD at 150.
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\8\ See, e.g., Docket No. ACR2021, Annual Compliance
Determination, March 29, 2022, at 150 (FY 2021 ACD) (displaying
point impact data for the top five root causes for the failure of 3-
5-Day Single-Piece Letters/Postcards to be delivered on time in FY
2021). As part of this reporting requirement, the Commission intends
for the Postal Service to inform the Commission whenever it changes
its method of calculating point impact data.
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Third, the Commission intends to require the Postal Service to
report the performance for each national operating plan target (also
referred to as the 24-Hour Clock national clearance goals) for all
Market Dominant products. These data are useful in isolating
bottlenecks in processing that are causing the most significant
negative service impacts on each product and have been previously
provided by the Postal Service as part of
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the Annual Compliance Review proceedings.\9\
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\9\ See, e.g., FY 2021 ACD at 167 (requiring the Postal Service
to report the performance of First-Class Mail products against 24-
Hour Clock national clearance goals).
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Fourth, the Commission intends to create reporting requirements for
the quality of service for all of the Postal Service's nonpostal
products, which it will set out in the previously reserved 39 CFR
3055.25. As explained above, the PSRA requires the Postal Service to
submit to the Commission, no later than 90 days after the end of each
year, a report that analyzes, among other things, the ``quality of
service for each agreement or substantially similar set of agreements
for the provision of property or nonpostal services'' under
methodologies prescribed by the Commission. 39 U.S.C. 3705(a)(1). By
regulation, the Commission must prescribe the content and form of this
report, giving due consideration to: (a) Providing the public with
timely, adequate information; (b) avoiding unnecessary burden to the
Postal Service; and (c) protecting confidentially sensitive commercial
information. 39 U.S.C. 3705(b)(1). The Commission seeks comment on how
best to effectuate these requirements by regulation.
Fifth, the Commission is considering requiring the Postal Service
to regularly report: (a) Mail excluded from measurement, disaggregated
by reason(s) for exclusion; and (b) mail volumes measured and
unmeasured by Full Service Intelligent Mail barcode (IMb). In Docket
No. PI2016-1, the Commission invited public comment on issues related
to the quality and completeness of service performance data measured by
the Postal Service. Order No. 3490 at 1. In response, several
commenters expressed concerns about the quantity and impact of mail
excluded from Postal Service measurement. See, e.g., id. at 15-19. As a
result, the Commission required the Postal Service to regularly report
certain exclusion information, finding that this information would
``enhance the quality and completeness of service performance data.''
Id. at 24-25. The Commission invites comments on whether to codify
those requirements and if so, whether any modifications to these
requirements is warranted.
The Commission also seeks comment on how best to require the Postal
Service to disaggregate service performance data for the aforementioned
subjects. The Commission requires product-level data in order to
analyze the quality of service as part of its Annual Compliance
Determination. See 39 U.S.C. 3652(a)(2)(B)(i). In addition, data
disaggregated below the product level should align with the Postal
Service's service standards in order to allow the Commission to monitor
the Postal Service's level of achievement of its service performance
targets.\10\ Therefore, the Commission invites comments on whether the
reporting rules in 39 CFR part 3055, subpart B, should directly cross-
reference the Postal Service's service standards, contained in 39 CFR
121.1 et seq., thus obviating the need for the Commission to revise its
regulations whenever the Postal Service amends its service standards.
The Commission also invites comments on how best to align the reporting
requirements geographically.
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\10\ See, e.g., Order No. 465 at 10 (``Reporting on quality of
service allows assessment of whether the Postal Service is meeting
the objective of maintaining the `high quality service standards
established under section 3691' '') (quoting 39 U.S.C. 3622(b)(3)).
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The Commission also plans to update the terminology used in its
requirements where it has become outdated--for instance, with regard to
class and product names and performance measurement systems. The
Commission invites suggestions as to what specific terminology should
be updated and how to do so.
B. Postal Service Online Dashboard
The Commission is also seeking comments on implementing the PSRA's
new online dashboard mandate. As explained above, the PSRA requires
that the Postal Service develop an online dashboard ``that provides
performance information for market-dominant products that is updated on
a weekly basis.'' 39 U.S.C. 3692(c)(1). In regards to this Postal
Service dashboard, the Commission shall provide ``requirements for the
Postal Service to publish nationwide, regional, and local delivery area
performance information'' that are consistent with the organizational
structure of the Postal Service, ``reflect the most granular geographic
level of performance information appropriate for the Postal Service to
publish,'' and include ``performance information for different time
periods, including annual, quarterly, monthly, and weekly segments.''
39 U.S.C. 3692(b)(1), (c)(2). The Commission shall also provide
``recommendations for any modifications to the Postal Service's
measurement systems necessary to measure and publish the performance
information'' for the Postal Service's dashboard. 39 U.S.C. 3692(b)(2).
With these statutory provisions in mind, the Commission invites
comments on what specific data should be required of the Postal Service
and any recommended corresponding revisions to the Postal Service's
measurement systems.
IV. Administrative Actions
The Regulatory Flexibility Act requires Federal agencies, in
promulgating rules, to consider the impact of those rules on small
entities. See 5 U.S.C. 601 et seq. If the proposed or final rules will
not, if promulgated, have a significant economic impact on a
substantial number of small entities, the head of the agency may
certify that the initial and final regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604 do not apply. See 5 U.S.C. 605(b).
In the context of this rulemaking, the Commission's primary
responsibility is regulatory oversight of the Postal Service. The rules
that are the subject of this rulemaking have a regulatory impact on the
Postal Service, but do not impose any regulatory obligation upon any
other entity. Based on these findings, the Chairman of the Commission
certifies that the rules that are the subject of this rulemaking will
not have a significant economic impact on a substantial number of small
entities. Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is
exempt from the initial and final regulatory flexibility analysis
requirements of 5 U.S.C. 603 and 604.
Comments are due no later than June 3, 2022. Reply comments are due
no later than June 24, 2022. All comments and suggestions received will
be available for review on the Commission's website, <a href="https://www.prc.gov">https://www.prc.gov</a>.
Pursuant to 39 U.S.C. 505, Kenneth E. Richardson is appointed to
serve as an officer of the Commission (Public Representative) to
represent the interests of the general public in the above-captioned
docket.
V. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. RM2022-7 to consider
revisions to the periodic reporting requirements.
2. Comments are due no later than June 3, 2022. Reply comments are
due no later than June 24, 2022.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Kenneth E.
Richardson to serve as an officer of the Commission (Public
Representative) to represent the interests of the general public in
this docket.
4. The Secretary shall arrange for publication of this notice in
the Federal Register.
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By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2022-09327 Filed 4-29-22; 8:45 am]
BILLING CODE 7710-FW-P
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