Periodic Reporting

Issuing agencies

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 196 (Tuesday, October 13, 2026)</title>
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[Federal Register Volume 91, Number 196 (Tuesday, October 13, 2026)]
[Proposed Rules]
[Pages 64871-64872]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20865]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3050

[Docket No. RM2027-2; Order No. 9760]


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 28, 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. Background
III. Proposal
IV. Notice and Comment
V. Ordering Paragraphs

I. Introduction

    On October 5, 2026, the Postal Service filed a petition pursuant to 
39 CFR 3050.11 and Order No. 9377 \1\ requesting that the Commission 
initiate a rulemaking proceeding to consider a proposed change to 
analytical principles relating to periodic reports.\2\ The Petition 
identifies the proposed analytical change filed in this docket in a 
proposal accompanying the Petition.
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    \1\ Docket No. RM2023-7, Order on Motion for Reconsideration and 
Clarification of Order No. 6659, December 1, 2025 (Order No. 9377).
    \2\ Petition of the United States Postal Service to Initiate a 
Proceeding to Change Analytical Principles, October 5, 2026 
(Petition). The proposed change is attached to the Petition 
(Proposal).
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II. Background

    The Postal Service Reform Act of 2022 \3\ 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,\4\ 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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    \3\ Postal Service Reform Act of 2022 (PSRA), Public Law 117-
108, 136 Stat. 1127 (2022).
    \4\ 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 that:

    [A]nalyzes costs, revenues, rates, and quality of service for 
each agreement or substantially similar set of agreements for the 
provision of property or nonpostal services under section 3703 or 
the program as a whole under section 3704, and any other nonpostal 
service authorized under [Chapter 37 of Title 39 of the United 
States Code], using such methodologies as the Commission may 
prescribe, and in sufficient detail to demonstrate compliance with 
the requirements of [Chapter 37 of Title 39 of the United States 
Code].

    39 U.S.C. 3705(a)(1). 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).
    In its FY 2022 Annual Compliance Determination (ACD), 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.\5\ As directed, the 
Postal Service initiated Docket No. RM2023-7 on May 26, 2023, proposing 
a categorical approach to calculating and attributing costs and revenue 
to similar types, or groupings, of IAAs.\6\
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    \5\ Docket No. ACR2022, Annual Compliance Determination, March 
29, 2023, at 102 (FY 2022 ACD).
    \6\ Docket No. RM2023-7, 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.
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    On August 31, 2023, the Commission conditionally approved the 
Postal Service's proposed methodology, subject to seven conditions.\7\ 
As relevant here, the first condition provided that, whenever the 
Postal Service enters into an IAA that is outside the scope of the IAA 
categories approved in Docket No. RM2023-7, the Postal Service should 
file a petition pursuant to 39 CFR 3050.11 requesting that the 
Commission initiate a rulemaking proceeding to consider a proposal to 
change an analytical principle underlying the Postal Service's periodic 
reports.\8\ The current approved IAA categories are Retail Services; 
Fulfillment; Addressing

[[Page 64872]]

and Geospatial Technology Services; Short-Term Rental/Conference and 
Training Center Services; Lease Agreements; and Contracting 
Services.\9\
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    \7\ Docket No. RM2023-7, Order on Analytical Principles Used in 
Periodic Reporting (Proposal Two), Directing the Postal Service's 
Participation in Further Proceedings, and Providing Notice of Filing 
Attachment Under Seal, August 31, 2023 (Order No. 6659).
    \8\ Order No. 6659 at 14. The Commission notes that the Postal 
Service subsequently sought clarification that Condition 1 applies 
only after a new IAA goes into effect, which the Commission 
confirmed in Order No. 9377. See Order No. 9377 at 7, 41. The Postal 
Service also sought reconsideration of three of the other seven 
conditions from Order No. 6659, but those issues are not relevant to 
this proceeding. The Commission ultimately denied the Postal 
Service's motion for reconsideration as to those issues, which the 
Postal Service appealed to the United States Court of Appeals for 
the District of Columbia Circuit. That appeal is currently pending. 
See Order No. 9377; Petition for Review, U.S. Postal Serv. v. Postal 
Regul. Comm'n, No. 25-1289 (D.C. Cir. filed Dec. 26, 2025, ECF No. 
2152063).
    \9\ See Order No. 6659; Docket No. RM2026-4, Order on Analytical 
Principles Used for Periodic Reports Concerning Updating Interagency 
Agreement Reporting for Hybrid Agreements, June 18, 2026 (Order No. 
9617).
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III. Proposal

    The Postal Service explains that in December of 2025 (FY 2026 
Quarter 1) it entered into an agreement with the United States Census 
Bureau (``Census'') to participate in a pilot study wherein mail 
carriers would assist in providing ``enumeration support'' for the 2026 
Census Test Run. Proposal at 2. ``In-field enumeration'' involves 
Census employees or other designees attempting to contact residents who 
did not respond to the mailed Census form. Id. Activities conducted by 
mail carriers ``mainly included a review of the Census provided 
addresses that ha[d] not responded to the Census form that [were] on 
their route[,]'' ``provid[ing] vacancy status of . . . residence[s],'' 
``educat[ing] potential respondents on completing the survey,'' and 
``administer[ing] the survey in person if needed.'' Id. Both city and 
rural carriers participated in the pilot, after receiving training from 
Census. Id. Carriers ``used the knowledge of their routes to resolve 
enumeration cases that were assigned to known vacant addresses[,]'' and 
``[t]he remaining enumeration cases [were] then . . . attempted along 
the carrier's line of travel.'' Id. Carriers used their Mobile Delivery 
Devices (MDDs) to record their time spent on Census activities. Id.
    Because the Postal Service asserts that the Census IAA does not 
fall neatly within any of the existing IAA categories, the Postal 
Service proposes a new IAA category to be called ``Side-Along 
Services,'' to which the Census IAA and any subsequent similar IAAs 
would be assigned. Id. at 2-3. Noting that the 2026 Census Test Run was 
a pilot, the Postal Service asserts that ``[t]he proposed inclusion of 
this category does not guarantee such an agreement would exist in the 
future but would provide the appropriate reporting structure for this 
type of agreement.'' Id. at 3.
    The Postal Service ``proposes a simple cost structure for [the 
Side-Along Services] category.'' Id. It states that ``[s]ince total 
Census activity time was recorded by each carrier, the total hours can 
be converted to costs by multiplying each craft type's respective 
productive hourly wage rate and piggyback factor.'' Id. The Postal 
Service concedes that ``[i]n the future, each agreement would need to 
be evaluated for additional cost characteristics,'' but states that 
``that process would not deviate from current evaluations that occur 
with new and unique IAAs.'' Id. The Postal Service provides, under 
seal, a sample cost structure using FY 2025 rates and factors with 
preliminary hourly data. Id.
    The Postal Service asserts that if its proposal is approved by late 
November, it will be able to use the new ``Side-Along Services'' 
category to organize and present final (as opposed to preliminary) cost 
and revenue information in the FY 2026 Annual Compliance Report. Id.

IV. Notice and Comment

    Pursuant to 39 CFR 3050.11(d)(1), the Commission establishes Docket 
No. RM2027-2 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 the Postal Service's Proposal by October 28, 2026. 
Pursuant to 39 U.S.C. 505, Christopher Mohr is designated as an officer 
of the Commission (Public Representative) to represent the interests of 
the general public in this proceeding.

V. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket No. RM2027-2 for consideration 
of the matters raised by the Petition of the United States Postal 
Service to Initiate a Proceeding to Change Analytical Principles, filed 
October 5, 2026.
    2. Comments by interested persons in this proceeding are due 
October 28, 2026.
    3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher 
Mohr 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.
Danielle LeFlore,
Legal Assistant.
[FR Doc. 2026-20865 Filed 10-9-26; 8:45 am]
BILLING CODE 7710-FW-P


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