DQCKET SECTION
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268-0001
‘flECElVEn
c:, 2s
il I-,’ p/j
pcSTiil RATEc~)~~,~~,~
"FF1c:
POSTAL
RATE AND FEE CHANGES, 1997
oi
1HF ;EC&
Docket No. R97-1
i
RESPONSE OF UNITED STATES POSTAL SERVICE
WITNESS DEGEN TO lNTERROGATORlE,S OF
THE OFFICE OF THE CONSUMER ADVOCATE
(OCA/USPS-T12--56-60)
The United-States
Postal Service hereby provides responses of witness Degen to
the following interrogatories
T12--56-60,
of the Office of the Consumer Advocate:
filed on September
11, 1997.
interrogatories
OCA/USPS-
OCA/USPS-T12-61-62
were redirected to witness Alexandrovich.
Each interrogatory
is stated verbatim and is followed by the response
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
,/l
i’
,
7
,.,Le
Eric P. Koetting
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-l 137
(202) 268-2992; Fax -5402
September 25, 1997
Response of United States Postal Service Witness Dogen
to Interrogatories
of the Office of the Consumer Advocate
OCA/USPS-T12-56.
Please refer to Attachment
1 to your response to
NAA/USPS-T12-2.
Please provide a breakout of Attachment
1 separately
for the larger and smaller MODS and non-MODS offices, where1 “larger” and
“smaller” are defined as in the response to OCAIUSPS-T12-31
d.
OCAIUSPS-T12-56
The response
‘larger”
Response.
to OCA/USPS-T12-31
and “smaller”
requested
breakdown
defines
“larger”
‘large”
category.
d listed two possible splits between
offices.
Attachment
defining
“larger”
as CAG A-E.
1 to this response
provides
as CAG A-C, while anaichment
the
2
In the latter case, all MODS tallies fall into the
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Response of United States Postal Service Witness Degen
to Interrogatories
of the Office of the Consumer Advocate
OCAIUSPS-T12-57.
Please refer to Attachments
3,5 and 8 to your
response to OCA/USPS-T12-1.
These contain tables showing compensation
of clerks and mailhandlers by office group, craft and CAG, MODS and nonMODS offices.
Attachment
3 contains information for all offices,
Attachment
5 contains information for offices not in the IOCS sample, and
Attachment
8 contains information for offices included in the IDCS sample.
a. Please explain why Attachment 3 contains compensation
data for CAG
H/J, Non-MODS offices. but this data is not available for Attachments
5
and 8.
b. Please explain why the column titled ‘CAG H/J” is not sepalrated into
two columns, one for CAG H and one for CAG J.
OCA/USPS-T12-57
Response.
a. The compensation
total for CAG H/J offices in Attachment
response
to OCAIUSPS-T12-1
number.
Therefore
is not available disaggregated
3 to my
by finance
it is not possible to break the data out by IOCS
sample inclusion.
b. CAGs H and J were combined
OCA/USPS-T12-1
system
in the attachments
because they are combined
(see LR-H-21).
to my response
to
in the tally cost weighting
Response of United States Postal Service Witness Degen
to Interrogatories
of the Office of the Consumer Advocate
OCAAJSPS-T12-58.
Please refer to Attachment 4 to OCAIUSPS-T12-1.
Please explain why some of the CAG A and B facilities not included in IOCS
are shown to have an average complement of zero clerks and mailhandlers.
OCAIUSPS-T12-58
Attachment
Response.
4 was generated
listed facilities
by looking up the finance
against the NORPES data used elsewhere
OCAIUSPS-T12-1.
For the nine finance numbers
there was no match from the lookup procedure,
zero complement.
resulting
--
numbers
I believe this represents
in the response
referred
to
to in the question,
and this was reported
a limitation
from the need to employ information
for the
as a
of the analysis
from multiple
data systems.
Response of United States Postal Service Witness Degen
to Interrogatories
of the Office of the Consumer Advocate
OCAIUSPS-T12-59.
Please refer to Your response to OCA/USPS-T12-3b.
This response stated that a correction to a variability figure could be
incorporated
into Your Table 6 by applying the ratio of the new variability to
the old variability to all entries in a column. Please consider the implications
to all other programs and outputs of library reference H-146.
a. Please confirm that in order to update all relevant portions of H-l 46 to
correspond to corrections to variabilities listed in your Table 4, only the
following programs may need to be modified:
MOD4DIST, NONMOD4,
BMC4, PREMITOT, PIGGYF96, and NONMODEL.
If you do not confirm,
please list all programs that would need to be modified.
b. Please refer to Attachment
1 to this interrogatory.
Please confirm that
Attachment
1 displays all lines of SAS code that would require
modification
in order to implement corrections or modifications
to the
variabilities listed in your Table 4. If you do not confirm, please provide
a corrected list of affected program lines.
c. Please list (by page number of H-146) all outputs of the H-146 SAS
programs that would be expected to change if a modified set of
variability estimates were used, instead of the set contained1 in Your
Table 4.
d. Please provide a list of all outputs generated by H-146 that serve as
inputs to Postal Service witness Alexandrovich’s
testimony.
Please
indicate which items on this list would be affected by a correction or
modification
to the variability estimates contained in your Table 4.
e. Are there other versions of the H-146 programs that are more easily
modified to account for future changes to either the variability levels or
the total cost pool dollars? (For example, all variability figures and their
cost pool names could be centrally located in one small data file, then
the programs listed in part a of this interrogatory
could pick up
variabilities from the variability file.) If so, please provide those
If not, will all adjustments to the WGT variable fsor MODS
programs.
offices and modifications
to variability estimates be manually changed in
the H-l 46 programs in the future? Please explain.
OCAIUSPS-T12-59
a. Confirmed.
b. Confirmed.
Response.
Response of United States Postal Service Witness Degen
to Interrogatories
of the Office of the Consumer Advocate
c. Any output
consisting
of volume-variable
change if an alternate
witness
set of variability
Bradley were supplied.
mail processing
estimates
The affected
costs would
to those estimated
pages of LR-H-146
22 to 11-38, Ill-4 to 111-18, V-7, V-15 to V-19, VI-5 to VI-19,
by
are: II-
and VII-3 to
VII-8.
d. The data provided
input to witness
in Table 5 of my testimony,
Alexandrovich’s
Please see my response
outputs
calculations
variability
witness
factors
were substituted
3.1.
l-R-H-146
Of these, I believe only
are subject to change
for those estimated
if
by
Bradley.
e. There are no alternate
versions of the programs.
of the LR-H-146
cost pool and variability
principle
variability
altering
for additional
that serve as inputs to his calculations.
alternate
is used as an
for cost segment
to OCA/USPS-Tl2-35
the Table 5 data and the PREMITOT output
coding
USPS-T-12,
modify
programs
mentioned
and cost pool amounts
their function.
change the programs
is not the only possible
data to the requisite
the programs
Obviously,
programs.
the present
way to supply
You could in
in part a to pick up the
from a central file without
materially
I do not know how the Postal Service plans to
in the future.
Response of United States Postal Service Witness Degen
to Interrogatories
of the Office of the Consumer Advocate
OCANSPS-T12-60.
Please refer to the response to DMANSPS-T4-38.
In
this response, witness Moden states, 7 am not aware of any operational
data on automated, mechanized or manual volumes by sub-class but it is my
understanding
that such estimates could be derived from the In Office Cost
System. ‘I
a. Please
Office
b. Please
c. Please
Office
explain how such volume estimates can be produced from the In
Cost System.
provide from the IOCS the estimates requested by DMA.
list all other volume estimates that can be produced from the In
Cost System.
OCAIUSPS-T12-60
a. Volume
Response.
estimates
cannot be derived directly
testimony,
IOCS estimates
employees
performing
from IOCS.
“costs for time spent by various
different
functions.”
various
the costs associated
subclasses
Assuming
with proportions
much by subclass,
distribution
group productivities
then the distribution
distribution
keys can then be applied to an appropriate
of volume
this exercise
distribution
--~
MODS operations
in the operatlon
of m
can be
These cost pool-specific
volume
(i.e., TPH) to compute
by subclass.
have already been provided.
group).
do not vary
keys’ proportions
as proportions
estimate
of handlinos.
keys
of time spent handling
interpreted
for the associated
types of
of mail in each MODS cost pool (operation
that the MODS operation
in my
See USPS-T-l 2 at page 1.
This implies that the IOCS based cost pool-specific
estimate
As stated
measure
one possible
The data 110perform
The cost pool-specific
keys may be found in Table 5, USPS-T-l 2, or Attachment
---
.-
1
Response of United States Postal Service Witness Degen
to Interrogatories
of the Office of the Consumer Advocate
to my response
to OCANSPS-T12-14.
by cost pool In Attachment
I provided
1 to my response
FY 1996 MODS TPH
to OCA/USPS-T4-28.
Please note that since many cost pools do not have well-defined,
consistently
cannot
volume or workload
indicators,
this exercise
be carried out for every cost pool.
b. Directions
provided
measured
for the estimation
in my response
procedure
and citations
to data sources
are
to part a.
c. I am not aware of any volume estimates
other than the type described
that can be derived
in my response to part a.
from IOCS
DECLARATION
I, Carl G. Oegen, declare under penalty of perjury that the foregoing
answers
are true and correct,
to the best of my knowledge,
and belief.
,i’
/’
_‘,
/
_, ,, /
>
_I
/I
,
;’
,!
/i
,,,’
,/
_‘,
Carl G. &geh.,
,’
information,
CERTIFICATE
OF SERVICE
I hereby certify that I have this day served the foregoing document
participants
of record in this proceeding
in accordance
with section 12 of the Rules of
Practice.
Eric P. Koeffing
475 L’Enfant Plaza West, SW.
Washington, D.C. 20260-l 137
September 25, 1997
upon all