BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20266-0001
I?ECEIVE[,
SEP L/
‘4 40 PM
‘97
P0ST.u EAT: CO~:!,,~.~,~~,
OFFICEoi rHE srcfiirnnr
POSTAL RATE AND FEE CHANGES, 1997
Docket No. R97-1
i
1
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS WADE TO INTERROGATORIES
OF
UNITED PARCEL SERVICE
(UPS/USPS-T20-l-3)
The United States Postal Service hereby provides responses of witness Wade to
the following interrogatories
of United Parcel Service:
UPS/USPS-T:20-l-3,
filed on
August 21, 1997.
Each interrogatory
is stated verbatim and is followed by the response.
Respectfully submitted,
UNITED STATES POSTE\L SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemakilng
475 L’Enfant Plaza West, SW.
Washington, D.C. 20260-I 137
(202) 268-2992; Fax -5402
September 4, 1997
RESPONSE OF USPS WITNESS WADE TO INTERROGATORIES
UNITED PARCEL SERVICE
FROM
UPS/USPS-T20-I. In reference to page 6, footnote 4 of your testimony, please
identity which non-BMC facilittes are included in your sample and which non-BMC facilities
were excluded, and indicate the reasons for each exclusion. For each includecdand excluded nonBMC facility, please provide the VSD workhours repotted in FY 1993 and in FY 1996.
RESPONSE:
The attached table displays the 1993 and 1996 data for the nom-BMC facilities
reporting VSD workhours
Survey forms were unavatlable for all but 89 facilities. The
numbering scheme accords with Workpaper B, pages 3 and 4 which indicates the reasons for
excluding observatrons from the 89 survey respondents.
RESPONSE OF USPS WITNESS WADE TO INTERROGATORIES
UNITED PARCEL SERVICE
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
46
Flag149
Flag53
1993 Hours
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
1
1
1
1
0
1
0
1
0
1
1
0
0
1
1
1
0
0
0
0
0
0
0
1
1
1
0
0
1
1
1
1
1
1
0
1
1
1
0
1
1
0
0
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
0
1
1
361118
194550
40163
161151
239847
89660
212020
61261
47935
40648
10598
31506
0
109226
46447
39494
250443
16226
0
66080
397215
88158
77568
39736
25632
49856
86357
300019
17245
42448
53124
156620
462232
849610
22806
7200
81035
625760
5627
406593
353416
449471
335394
170319
170536
133786
18710
104719
FROM
1995 Hours
391644
223067
39189
179238
297868
122566
228430
61554
62120
46867
6612
32004
0
156108
53724
4648.3
279776
20604
0
89172
388459
90936
97332
50222
46981
52888
118808
325827
16065
56709
Number IS the facilaty numlbenng scheme.
The first 89 numbers are l'or facilities lhat participated
in the survey.
Flag149 denotes facililes
that were judged to have
significant 1993 workhours.
152 faaliiles have
Rags of 1. NWRS data for 3 of the flagged facilities
were not available, leaviq
149 facilities
Flag53 denotes facilibes included in the sample
used for developing the base year vanabiley
Facilities numbered below from 90 on. did not have
survey information and were excluded for ihns reason.
Facilities with Flag53 = 0 were excluded for reasons
listed in USPS-T-20. Workpaper
B, pages 3 and 4.
Number
58838
174584
199
200
201
202
203
204
205
206
207
208
209
432337
906630
24947
7953
100734
646285
7
361447
365707
532419
320212
199140
184401
158881
22642
104165
210
211
212
213
214
215
2
Flag149
Flq53
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1993 Hours
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
192
188
187
176
174
173
167
162
144
136
133
132
127
118
112
112
106
1996 Hours
2
0
0
0
0
0
31
213
39
0
0
0
0
136
0
0
8
RESPONSE OF USPS WITNESS WADE TO INTERROGATORIES
UNITED PARCEL SERVICE
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
80
89
90
91
92
93
94
95
96
97
98
99
100
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
1
1
1
1
1
0
1
0
0
1
1
1
0
0
0
1
0
0
1
0
1
0
1
1
1
1
1
1
0
1
1
1
1
1
1
1
1
1
1
I
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
1
1
0
1
1
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
59455
40899
221069
5902
90292
110118
184487
35082
31432
66574
140635
63567
106163
227250
125050
155408
181754
39399
53358
37121
262831
118333
72323
23831
25477
56334
23652
175474
101195
26415
14432
136410
79004
16214
0
7383
25197
51524
116981
22234
12702
31007
15593
6022
4642
68532
266872
10130
95168
19801
100423
36961
74326
5,0169
239078
5892
146807
161566
210809
39178
34375
65944
16,4943
75446
117900
276957
151623
183841
247600
45899
67075
33874
286888
0
81771
24596
26732
63164
24275
161892
127947
30016
15593
167584
77689
15487
0
8027
32583
64796
132824
35318
18587
34266
19856
0
2
92947
298348
17509
99909
22050
127511
35105
216
217
218
219
220
221
222
223
224
225
226
227
226
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
FROM
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
104
103
102
99
98
97
98
96
84
82
82
80
78
74
72
69
69
69
64
63
62
62
61
60
57
52
50
49
48
47
46
44
44
44
43
42
42
41
40
40
40
39
38
35
35
35
34
34
34
33
32
31
0
0
0
0
34
0
3
0
38
0
0
40
6
0
0
0
0
0
0
0
124
0
70
0
0
3
0
0
0
0
0
0
0
0
-4
0
257
7433
0
8
0
0
0
0
0
0
0
0
48
0
40
0
RESPONSE OF USPS WITNESS WADE TO INTERROGATOIUES
UNlTED PARCEL SERVICE
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
I,
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
176482
170273
5958
10223
43090
56109
139793
9417
18343
111257
84808
52501
13534
34372
6007
33704
5191
35401
5537
19608
115119
24799
8391
210009
18063
32299
57144
8645
16905
28351
13010
21743
10806
20173
141186
81496
59466
68265
20406
19799
42186
141610
53435
33506
17398
44367
13458
18064
5177
36632
10634
22172
21!5820
197610
0
,9757
62716
53235
150176
12490
15659
117398
76436
52921
19103
33785
14205
35967
14149
39205
166075
21720
0
26282
8399
209474
49022
46694
82254
8621
14535
36813
15444
26594
0
24323
221476
103000
63825
2726
391
22849
36645
185211
59792
41984
19250
55578
16102
25837
4.999
31968
9665
25215
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
263
284
285
286
287
288
289
290
291
292
293
294
295
298
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
FROM
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
29
27
27
25
24
24
24
24
23
22
22
21
20
20
19
19
19
18
18
17
17
16
16
15
13
13
13
13
12
12
12
12
11
11
10
10
10
9
9
8
8
7
7
7
7
7
6
6
6
6
6
5
10
0
0
0
0
0
0
266
344
0
0
0
0
0
0
19
0
0
10
0
0
0
0
0
0
0
153
1
0
2
0
0
0
0
0
0
0
0
337
0
33
3
10
94
0
3
0
0
6
0
7646
0
RESPONSE OF USPS WITNESS WADE TO LNTERROGATORIES
UNITED PARCEL SERVICE
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
166
169
170
171
172
173
174
175
176
177
176
179
180
181
182
183
164
185
186
167
188
189
190
191
192
193
194
195
196
197
198
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
8092
4203
3419
3384
3005
2351
2304
2265
2229
2065
2061
2012
1832
1829
1801
1171
992
938
884
855
725
641
628
530
494
481
422
413
386
382
334
266
263
259
257
253
243
241
234
230
219
217
214
210
206
197
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
336
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
356
359
360
?&I
362
363
334
365
0
4043
21
4657
3962
0
16
3642
0
3717
0
2053
0
3212
113
1276
0
0
8983
0
0
0
0
0
69
0
0
154
0
0
17
44978
1676
9757
0
0
14
83
0
10
0
0
9
0
84
676
TCMS
5
0
FROM
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
152
53
5
5
5
5
4
4
4
4
4
4
4
4
4
4
4
4
4
4
4
3
3
3
3
3
3
2
2
2
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
14064644
0
0
0
-8
0
0
0
6
0
0
0
-1512
0
0
0
0
0
2
0
0
0
0
0
0
0
0
0
0
3
0
1
0
0
6
0
0
0
4
0
0
0
0
0
0
0
0
15605802
RESPONSE OF USPS WITNESS WADE TO INTERROGATORIES
UNITED PARCEL SERVICE
FROM
UPS/USPS-T20-2. In reference to your observations concerning volume
variability as a function of facility size alt page 20, lines 5 to 13, of your testimony, please
confirm that a 5-percent increase in volume at all facilities would result in an increase in VSD
workhours by more than 65.4% of 5 percent, since 65.4% is the variability of VSD hours at the
mean facility and variability increases with facility size. Please explain any nonconfirmation.
RESPONSE:
This is mathematically clorrect for my model. However, applying such an
estimate in practice raises several issues and complications. First, the assumption of proportional
volume growth across facilities is questionable -- there are bound to be gainers and losers. Even
though volume changes are not available, changes in VSD -workhour usage ir; certainly not
proportional based on the data provided for UPS/USPS-T20- 1, above. The average increase in
VSD hours usage was 1 l%, while for individual facilities the growth ranged from a decrease of
38% to an increase of 83%.
A second practical issue raised is that even if volume growth occurs in a proportional nature,
other factors which influence variability may not grow proportionally (for example, in the
present case, AvgMPH may change across facilities in a very uneven manner).
Third, when summing predicted hours responses across facilities, the confidence interval of the
predicted sum is complicated by the fact that it is a function of the sum of individual estimates,
RESPONSE OF USPS WITNESS WADE TO INTERROGATORIES
UNITED PARCEL SERVICE
FROM
each with their own and unique interval. The confidence intervals for very small or large
facilities may be quite large relative to the average facility, since the further away from the
average facility that a specific facility lies, the greater the confidence interval for its estimated
hours.
RESPONSE OF USPS WITNESS WADE TO INTERROGATORIES
UNITEJ) PARCEL SERVICE
FROM
UPS/USPS-T20-3. In reference to your identification of four irregular
observations cited in your Workpaper F, Supplemental Analysis, please state ,whether inclusion
or exclusion of these four observations provides a more or less reliable estimate of volume
variability based on your preferred regression equation model, and state the basis for your
conclusions.
RESPONSE:
The four irregular observations excluded in the supplemental analysis of
Workpaper F were excluded because of data issues. Thus, I view the estimateis in Workpaper F
as more reliable.
DECLARATION
I declare
answers
are
information,
Date:
.1.(1
under
true
penalt:y
and correct
and belief.
-47
of perjury
to the best
that
the
foregoing
of my knowledge,
CERTIFICATE
OF SERVICE
I hereby certify that I have this day served the foregoing docu’ment upon all
participants
of record in this proceeding in accordance with section 12 of the Rules of
Practice
i”
Eric P. Koetting
475 L’Enfant Plaza West, S.W.
Washington, DC. 20260-l 137
September 4, 1997