Proposed Rule2023-11935
Periodic Reporting
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 6, 2023
Issuing agencies
Postal Regulatory Commission
Abstract
The Commission is acknowledging a recent filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports (Proposal Two). 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 88 Issue 108 (Tuesday, June 6, 2023)</title>
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[Federal Register Volume 88, Number 108 (Tuesday, June 6, 2023)]
[Proposed Rules]
[Pages 37003-37004]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-11935]
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POSTAL REGULATORY COMMISSION
39 CFR Part 3050
[Docket No. RM2023-7; Order No. 6528]
Periodic Reporting
AGENCY: Postal Regulatory Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Commission is acknowledging a recent filing requesting the
Commission initiate a rulemaking proceeding to consider changes to
analytical principles relating to periodic reports (Proposal Two). This
document informs the public of the filing, invites public comment, and
takes other administrative steps.
DATES: Comments are due: June 29, 2023.
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. Proposal Two
III. Notice and Comment
IV. Ordering Paragraphs
I. Introduction
On May 26, 2023, the Postal Service filed a petition pursuant to 39
CFR 3050.11 requesting that the Commission initiate a rulemaking
proceeding to consider changes to analytical principles relating to
periodic reports.\1\ The Petition identifies the proposed analytical
changes filed in this docket as Proposal Two.
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\1\ Petition of the United States Postal Service for the
Initiation of a Proceeding to Consider Proposed Changes in
Analytical Principles (Proposal Two), May 26, 2023 (Petition).
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II. Proposal Two
Background. The Postal Service Reform Act of 2022 \2\ modified and
expanded the Postal Service's ability to enter into interagency
agreements (IAAs) to provide property and services to, or on behalf of,
other government agencies. Specifically, 39 U.S.C. 3703 for the first
time authorizes the Postal Service to enter into agreements with
agencies of any state government, local government, or tribal
government to provide property or nonpostal services to the public on
behalf of such agencies for non-commercial purposes. At the same time,
with respect to the Postal Service's pre-existing authority under 39
U.S.C. 411 to provide property and services to other Federal agencies,
the PSRA specifies that ``[t]he Postal Service may establish a program
to provide property and nonpostal services to other Government [i.e.,
federal] agencies within the meaning of section 411,\[3]\ but only if
such program provides a net contribution to the Postal Service, defined
as reimbursement that covers at least 100 percent of the costs
attributable . . . .'' 39 U.S.C. 3704.
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\2\ Postal Service Reform Act of 2022 (PSRA), Public Law 117-
108, 136 Stat. 1127 (2022).
\3\ Prior to the enactment of the PSRA, the Postal Service's
authority for these agreements was governed by 39 U.S.C. 411, which
authorizes the Postal Service to ``furnish property and services''
to ``Executive agencies within the meaning of [5 U.S.C. 105] and the
Government Publishing Office. . . .'' 39 U.S.C. 411. Section 105 of
Title 5 of the United States Code specifies that an ```Executive
agency' means an Executive department, a Government corporation, and
an independent establishment'' of the U.S. Government, as those
terms are defined in 5 U.S.C. chapter 1. 5 U.S.C. 105.
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Under the PSRA, the Postal Service must submit a report to the
Commission after the close of each fiscal year. See 39 U.S.C. 3705(a).
Upon receiving the Postal Service's report and providing an
opportunity for public comment, the Commission must make a written
determination of compliance. 39 U.S.C. 3705(e).
Because the PSRA was enacted on April 6, 2022 (during FY 2022
Quarter 3), the Postal Service's first report responsive to this new
statutory requirement was due December 29, 2022, covering FY 2022. In
its report, the Postal Service stated that there were no agreements
with state, local, or tribal governments pursuant to 39 U.S.C. 3703 in
effect during FY 2022.\4\ Pursuant to 39 U.S.C. 3705(a)(1), the Postal
Service provided non-public information on costs and revenue for
Federal IAAs that were in effect during FY 2022.\5\ In response to
information requests, the Postal Service also provided non-public rate
information with respect to Federal IAAs, and publicly reported the
number of agreements, as well as the revenue, costs, and contribution
for the program as a whole under section 3704.\6\
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\4\ Docket No. ACR2022, United States Postal Service FY 2022
Annual Compliance Report, December 29, 2022, at 102 (FY 2022 ACR).
\5\ Id. at 102. With respect to quality of service, in Docket
No. RM2022-7, the Commission established certain reporting
requirements for nonpostal services, including that the Postal
Service shall provide quantitative measures of service performance
for nonpostal services annually (or, where unavailable, qualitative
descriptions). See 39 CFR 3055.25. Specifically for IAAs under 39
U.S.C. 3704, the Commission mandated that the Postal Service report
the quality of service for the IAA program as a whole. See id.
3055.25(c). The Commission also specified that the reporting
requirements shall not go into effect until the beginning of FY 2024
to allow the Postal Service to set service standards and (if needed)
file a petition for an exception from reporting pursuant to 39 CFR
3055.3. Docket No. RM2022-7, Order Revising Rules for Periodic
Reporting of Service Performance, February 9, 2023, at 16-17 (Order
No. 6439).
\6\ Docket No. ACR2022, Annual Compliance Determination Report,
FY 2022, May 29, 2023, at 99-102 (FY 2022 ACD).
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Because 39 U.S.C. 3704 requires that the Federal IAA program as a
whole provide contribution to the Postal Service, i.e., reimbursement
that covers at least 100 percent of the costs attributable to such
agreements, the Commission sought information in order to better
understand the underlying cost models and methodologies used by the
Postal Service in calculating and distributing costs to IAAs. FY 2022
ACD at 101. The Commission found that ``[b]ased on the Postal Service's
responses, it appears that the underlying cost models and methodologies
employed by the Postal Service are, in some instances,
underdeveloped.'' Id. Nevertheless, the Commission found that for
purposes of the first compliance review of the overall Federal IAA
program under 39 U.S.C. 3705(e)(2), the record reflected that the total
reimbursement the Postal Service received from other Federal agencies
for services rendered pursuant to IAAs effective in FY 2022 exceeded
the total estimated cost associated with providing such services; hence
the Federal IAA program as a whole complied with 39 U.S.C. 3704 for FY
[[Page 37004]]
2022. Id. The Commission directed the Postal Service to develop a
proposed methodology (or methodologies) for calculating and attributing
costs and revenue to IAAs authorized under 39 U.S.C. 3703 and 3704, and
to initiate a rulemaking proceeding to establish such methodology (or
methodologies) in accordance with 39 CFR 3050.11 by no later than May
31, 2023. Id. at 102. As directed, the Postal Service initiated the
instant proceeding.
Proposal. The Postal Service proposes a categorical approach to
calculating and attributing costs and revenue to similar types, or
groupings, of IAAs. Petition, Proposal Two at 2-3. In its Petition, the
Postal Service has applied this categorical approach to the field of
currently-existing Federal IAAs, but states that ``the creation of new
categories as needed in the future is certainly not precluded[,]'' and
``[l]ikewise, categories can be omitted if all relevant IAAs have
expired, and no new agreements replace them.'' Id. at 3, 7. The Postal
Service proposes the following categories and corresponding cost
attribution methodologies for the Federal IAAs currently in existence:
<bullet> Retail Services: The Postal Service defines this category
as ``encompass[ing] services conducted at the retail counter such as
identity verification or Passport acceptance.'' Id. at 3. For IAAs in
this category, the Postal Service proposes multiplying the average
length of transactions by an appropriate wage rate to determine the
cost-per-transaction. Id. at 4. Piggyback, wait time, and miscellaneous
time factors would then also be applied, and the unit costs would be
multiplied by the total number of transactions to obtain total window
service costs. Id. Any additional costs, such as advertising, training,
and administrative costs, would be included in whole since they are not
related to the per-transaction cost (although the Postal Service states
that the total number of hours spent training would be estimated and
the appropriate wage rate applied). Id. The Postal Service states that
revenues within this category can either be a fixed fee or on a per-
transaction basis. Id.
<bullet> COVID Test Kits: The Postal Service defines this category
as ``includ[ing] the total revenue and cost for COVID test kit
fulfillment and delivery; including picking, packing, and delivery of
the kits.'' Id. The Postal Service states that this category is unique
in having a two-part structure for fulfillment and delivery. Id. The
Postal Service proposes that times and resources used for fulfillment
be ``tracked to determine reimbursement through various postal
functions,'' and that the delivery portion of cost and revenue by
captured through regular Postal Service processes in the Cost and
Revenue Analysis (CRA) and Revenue, Pieces, and Weight (RPW) reports.
Id.
<bullet> Addressing and Geospatial Technology Services: The Postal
Service defines this category as including agreements to ``provide
reports from Postal Service operational data systems, such as ZIP Code
or route book information, for use by other agencies.'' Id. at 4-5. The
Postal Service states that the costs attributed to these reports are
related to times to initiate, process, review, and disseminate the
reports, and that given that these reports are already captured for
operational purposes, no time or technology costs for the collection or
storage of these reports are proposed to be attributed to these IAAs.
Id. at 5. The Postal Service states that these reports are automated
and incur minimal costs. Id.
<bullet> Short Term Rental/Conference and Training Center Services:
The Postal Service defines this category as encompassing agreements
that ``allow[ ] other agencies to use space in postal facilities for a
few hours to a few days. . . .'' Id. at 5. The Postal Service states
that the costs associated with these agreements are direct costs, which
may include expenses for labor for room turnover, food, goods and
supplies, and transportation. Id. The Postal Service proposes to
calculate the revenue associated with these agreements by summing the
rates and fees charged for services rendered. Id.
<bullet> Lease Agreements: The Postal Service defines this category
as ``longer term agreements with agencies to occupy space in postal
facilities.'' Id. The Postal Services states that costs for lease
agreements include mainly utilities and maintenance for which the
Postal Service is responsible as identified in the agreement. Id. at 6.
Where the leased space is shared between the lessee and the Postal
Service, the utility and maintenance costs are proportional to the
number of square feet occupied by the lessee. Id. Rental revenue is
proposed to be derived from the individual lease agreements. Id.
<bullet> Contracting Services: The Postal Service defines this
category as ``encompass[ing] those services where the Postal Service
provides services to other agencies, largely using Postal Service
contractors, with a small amount of work being performed by postal
employees.'' Id. The Postal Service states that many agreements falling
into this category are for the provision of Equal Employment
Opportunity (EEO) services. Id. The Postal Service proposes that the
revenues associated with these agreements be derived as outlined in the
individual agreements.
III. Notice and Comment
The Commission establishes Docket No. RM2023-7 for consideration of
matters raised by the Petition. More information on the Petition may be
accessed via the Commission's website at <a href="https://www.prc.gov">https://www.prc.gov</a>.
Interested persons may submit comments on the Petition and Proposal Two
no later than June 29, 2023. Pursuant to 39 U.S.C. 505, Manon A.
Boudreault is designated as an officer of the Commission (Public
Representative) to represent the interests of the general public in
this proceeding.
IV. Ordering Paragraphs
It is ordered:
1. The Commission establishes Docket No. RM2023-7 for consideration
of the matters raised by the Petition of the United States Postal
Service for the Initiation of a Proceeding to Consider Proposed Changes
in Analytical Principles (Proposal Two), filed May 26, 2023.
2. Comments by interested persons in this proceeding are due no
later than June 29, 2023.
3. Pursuant to 39 U.S.C. 505, the Commission appoints Manon A.
Boudreault 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 order in the
Federal Register.
By the Commission.
Erica A. Barker,
Secretary.
[FR Doc. 2023-11935 Filed 6-5-23; 8:45 am]
BILLING CODE 7710-FW-P
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</html>Indexed from Federal Register on June 6, 2023.
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