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Proposed Rule2026-19361

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
September 22, 2026

Issuing agencies

Postal Regulatory Commission

Abstract

The Commission is acknowledging a recent Postal Service filing requesting the Commission initiate a rulemaking proceeding to consider changes to analytical principles relating to periodic reports. 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 91 Issue 182 (Tuesday, September 22, 2026)</title>
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[Federal Register Volume 91, Number 182 (Tuesday, September 22, 2026)]
[Proposed Rules]
[Pages 60053-60054]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-19361]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2026-7; Order No. 9734]


Periodic Reporting

AGENCY: Postal Regulatory Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission is acknowledging a recent Postal Service filing 
requesting the Commission initiate a rulemaking proceeding to consider 
changes to analytical principles relating to periodic reports. This 
document informs the public of the filing, invites public comment, and 
takes other administrative steps.

DATES: Comments are due: October 30, 2026.

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
III. Notice and Comment
IV. Ordering Paragraphs

I. Introduction

    On September 16, 2026, 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 presents a proposal to update the 
methodology for developing labor productivity data for selected mail 
processing operations using Management Operating Data System (MODS) 
data. Petition at 1.
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    \1\ Petition of the United States Postal Service to Initiate a 
Proceeding to Change Analytical Principles, September 16, 2026 
(Petition). The proposed change is attached to the Petition 
(Proposal).
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II. Proposal

    Background. The Postal Service states that MODS-based labor 
productivities are ``important inputs'' into the mailflow models for 
letter-, flat-, and parcel-shaped products that are used to develop 
cost avoidances for workshare discounts. Petition, Proposal at 1.

[[Page 60054]]

MODS classifies Postal Service work activities, including, but not 
limited to, mail processing activities, using a system of standardized 
operation numbers. Id. The Postal Service states that ``MODS collects 
workhours associated with the operations and, as applicable, workload 
data from data systems such as the Time and Attendance Collection 
System (TACS) and [the Web End-of-Run system (webEOR)].'' Id.
    For automated mail processing, workloads are passively obtained 
using machine counts of processed articles that are automatically 
transmitted to MODS. Id. The Postal Service asserts that, accordingly, 
these automated workloads ``generally are measured reliably.'' Id. at 
1-2. The Postal Service states that accurate workhour measurement 
requires employees to ``clock into the appropriate operation number(s) 
for their work activities and to re-clock during shifts, as needed, to 
reflect changes of work activities during the workday.'' Id. at 2. The 
Postal Service states that labor productivity methodology ``must 
balance needs for sufficiently detailed productivities to reflect 
materially different costs among mailflows, while ensuring that 
workhour and workload data are well aligned given data generation 
processes.'' Id. The Postal Service states that the currently accepted 
methodology ``mitigates data issues by aggregation over time, 
facilities, and/or operations as well as by outlier screening.'' Id. 
According to the Postal Service, the Proposal retains these 
methodologies with certain changes discussed below. See id.
    Proposal. The Proposal updates the methodology for developing MODS-
based labor productivity data for selected mail processing operations 
based on certain operational, facility, and time aggregation changes. 
Id. The Proposal reflects, among other things, ``the discontinuation of 
certain flats operations, including the Flats Sequencing System (FSS) 
and the UFSM 1000; the supplanting of Sack Sorting Machine (SSM) 
processing with universal sorters; and [the] incorporat[ion of] 
additional operations related to the processing of undeliverable-as-
addressed (UAA) letters and flats.'' Id. (internal footnotes omitted). 
Additionally, the Proposal updates the role of network distribution 
centers (NDCs) in mail processing operations to reflect that NDCs 
provide significant processing, particularly for parcels, but ``no 
longer have a distinct network role.'' Id. The Proposal combines data 
for NDCs with other MODS plants in order to provide ``more 
comprehensive coverage of operations'' carried out by both types of 
facilities. Id. at 2, 6. The Proposal also increases the frequency of 
MODS data inputs from monthly to weekly. Id. at 7. The Postal Service 
contends that ``[t]he increased frequency would improve data quality by 
requiring workload and workhour data to be aligned at the weekly level 
and . . . reject data from periods where workhours and workloads are 
not both recorded.'' Id. at 8. The Proposal provides detail on these 
and other proposed changes to labor productivities to reflect 
operational, network, and equipment changes. Id. at 6-20. The Postal 
Service presents the proposed updates to MODS-based labor 
productivities in its Proposal. Id. at 4-5, Table 1.
    Rationale and Impact. The Postal Service states that ``[t]he 
proposed [labor] productivities better reflect current mailflows, 
incorporate additional operation groups to facilitate future mailflow 
model refinements, and cease reporting of certain discontinued 
operations.'' Id. at 1. The Proposal compares Fiscal Year (FY) 2025 
labor productivities under the proposed methodology compared to current 
FY 2025 labor productivities. Id. at 21-22, Table 4. The Postal Service 
states that new labor productivities ``will decrease the associated 
model costs if the new productivity is higher or increase them if the 
new productivity is lower, other things equal.'' Id. at 23. The Postal 
Service describes the impacts of the Proposal on FY 2025 First-Class 
Mail and USPS Marketing Mail letter mail processing models, FY 2025 
First-Class Mail and USPS Marketing Mail flat mail processing models, 
and FY 2025 Parcel Select cost models. Id. at 23-28.

III. Notice and Comment

    The Commission establishes Docket No. RM2026-7 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 no 
later than October 30, 2026. Pursuant to 39 U.S.C. 505, Jana Slovinska 
is designated as an officer of the Commission (Public Representative) 
to represent the interests of the general public in this proceeding. 
The Public Representative does not represent any individual person, 
entity or particular point of view, and, when Commission attorneys are 
appointed, no attorney-client relationship is established.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2026-7 for consideration 
of the matters raised by the Petition of the United States Postal 
Service to Initiate a Proceeding to Change Analytical Principles, filed 
September 16, 2026.
    2. Comments by interested persons in this proceeding are no later 
than due October 30, 2026.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Jana 
Slovinska to serve as an officer of the Commission (Public 
Representative) to represent the interests of the general public in 
this docket.
    4. This order, or abstract thereof, will be published in the 
Federal Register.

    By the Commission.
Sarah Wessel,
Senior Paralegal Specialist.
[FR Doc. 2026-19361 Filed 9-21-26; 8:45 am]
BILLING CODE 7710-FW-P


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Indexed from Federal Register on September 22, 2026.

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