DOWET SECTION
fiECEIVElI
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON. D.C. 20268-0001
POSTAL RATE AND FEE CHANGES, 1997
DCT I
PH'37
4 47
Docket No. R97-1
i
NOTICE OF UNITED STATES POSTAL SERVICE OF INCORPORATION
OF
LIBRARY REFERENCE H-106 MATERIAL INTO THE DIRECT TESTIMONY OF
WITNESS CHARLES L. CRUM (USPS-T-28)
(October 1, 1997)
The United States Postal Service hereby gives notice of the incorporation
attached
Exhibit K into the Direct Testimony
of Charles L. Crum, USPS-T-28.
Exhibit consists of material that had been filed as pages 2 through
Reference
H-108,
incorporation
contains
Standard
participants.’
Crum’s testimony);
references
breakdowns
Also attached
17 of Library
In addition to this material, the Exhibit
of Table 3, of the type which had been requested
by
are a revised Listing of Exhibits (page iii of witness
revisions to pages 10 through
to Library Reference
for Library Reference
The
Mail (A) Unit Costs by Shape, with changes to reflect its
into witness Crum’s testimony.’
additional
of the
12 of his testimony,
changing
H-108 to Exhibit K; and revised introductory
pages
H-108, which replace current pages 1 through Al.
’ Appendix A to the Library Reference, describing and providing the computer runs
used in the analysis, remains in the Library Reference as background information.
Revised introductory pages to the Library Reference are also being filed herewith.
These pages incorporate the existing introduction to Appendix A (page Al) and
include the material that comprised paragraphs 3, 4, and 5 of the Volume ,Estimates
section on pages 2 and 3, which are not included in Exhibit K because they relate to
the computer documentation remaining in the Library Reference.
’ The spreadsheets
ROM version of the
the convenience of
these spreadsheets
presenting these breakdowns, which are contained on the CDLibrary Reference, but were not in the hard copy, are included for
all participants, inasmuch as the witness has referred to some of
in several interrogatory answers.
-2Witness Crum is qualified to adopt this material as his testimony,
in response to NDMSIUSPS-T28-1
as he indicated
(b):
I personally supervised both the planning and conduct of the studies
described in LR-H-108.
I produced and/or assisted with the separate
analyses to varying degrees. I completely reviewed the printed version of
the library reference, other than the computer documentation.
In addition, witness Crum has already answered
the Library Reference.
See NDMSIUSPS-T28-2,
4 8 5; and DMAIUSPS-T28-I,
Commission
surcharge
about
3, 6-l 1 8. 18; PSAKJSPS-T28-I,
4 8. 9. Incorporation
a firm foundation
(A) residual-shape
a number of interrogatories
on which to recommend
of this material will provide the
the proposed
Standard
Mail
and allow the issue to be litigated on its substantive
merits without further procedural
controversy.
Respectfully
submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux. Jr.
Chief Counsel, Ratemaking
Scott L. Reiter
CERTIFICATE
OF SERVICE
I hereby certify that I have this day served the foregoing document upon all
participants of record in this proceeding in accordance with section 12 of the Rules of
Practice.
475 L’Enfant Plaza West, S.W.
Washington, D.C. 20260-1137
(202) 268-2999; Fax -5402
October 1, 1997
-..
REVISIONS TO USPS-T-28
Revised
1011197
LISTING OF EXHIBITS
Exhibit A
Window Service and Platform Costs
Exhibit B
Volume of Parcel Post Pieces Entered Upstream of a BMC/ASF
Exhibit C
Outgoing Mail Processing
Parcel Post
Exhibit D
BMC Presort Parcel Post Cost Savings
Exhibit E
Costs Avoided by Depositing Inter-BMC Parcels at the Origin BMC with
Presort to the Destination BMC
Exhibit F
Destination BMC Mail Processing Costs Avoided by Parcel Post
Deposited at Destination SCFs or Delivery Units
Exhibit G
Avoided Mail Processing
Delivery Units
Exhibit H
Mail Processing
Matter
Exhibit I
Revenue, Pieces, and Weight (RPW) Volume Summary - Government
Fiscal Year 1996
Exhibit J
BMC Presorted
Exhibit K
Standard
Costs at Non-BMC Facilities Avoided by DBMC
Costs of DSCF Parcel Post at SCFs and
Costs Avoided by Carrier Route Presorted
Parcel Post Cost Per Piece
Mail (A) Unit Costs by Shape
Bound Printed
Revised
1011 I97
1
2
VIII.
STANDARD
MAIL (A) NONLETTER
A.
BACKGROUND
COST DIFFERENCES
3
4
5
6
In 1990, the Postal Service took the first step towards recognizing
7
shape in Standard
8
produced
studies showing shape-based
9
nonletters
(Docket No. R90-1, USPS-T-9 and USPS-T-lo).
This cost distinction was
10
supported
by the models presented
Though the rate
11
distinction
has always been limited by low “passthroughs,”
12
integral to current Standard Mail (A) rates. My testimony will further distinguish
13
costs on the basis of shape by showing the additional shape-based
14
within nonletters,
Mail (A) (then third-class)
when witnesses
cost differences
in Docket No. MC951.
the effects of
Moeller and Shipe
between letters and
this concept still is
cost differences
between flats and parcels.
15
16
The following table presents total bulk Standard Mail (A) volume shares based on
17
Tables 1 and 2 of Exhibit K.
18
FY 1996 VOLUME SHARES
19
20
if!&
21
Parcels
22
23
58.5%
40.1%
1.4%
24
25
While the relative volume of parcels is low, the absolute volume is not and there is
26
sufficient data to separate parcels from flats in Standard Mail (A). This effort to
27
more closely align rates with costs will help reduce the rate averaging that currently
28
exists within Standard Mail (A).
Revised
10/1/97
1
B.
INTRODUCTION
2
3
My testimony
uses the volumes and costs by shape presented
in Exhibit K
4
to show the cost differences
5
parcels and flats. Volumes by shape and rate category within third-class
6
(now Standard
7
from the PermitIBravis
8
(RPW) totals.
9
(IOCS) and the Cost and Revenue Analysis (CRA) report and its associated
within Standard Mail (A) nonletters between
Mail (A) Regular/Nonprofit
and Enhanced
Bulk Rate
Carrier Route) are derived
system and tied to official Revenue, Pieces, and Weight
Volume variable costs are based on the In-Office Cost System
10
workpapers
where possible.
Several studies supply additional data as necessary.
11
Total volume variable unit costs by shape are found by dividing costs by volumes in
12
each category.
13
14
c.
ANALYSIS
AND PRESENTATION
15
16
I combine Regular and Enhanced
Carrier Route as well as Commercial
17
Nonprofit costs and volumes for the purposes of my analysis.
18
summarizes
and
The following table
fiscal year 1996 cost per piece data from Table 3 of Exhibit K.
19
FY 1996 STANDARD
20
MAIL (A) COSTS BY SHAPE
21
Cost oer Piece (cents)
22
23
24
Parcels
51.6
25
Flats
‘Il.3
Difference
40.3
26
27
28
29
To find the FY 1998 test year cost difference per piece, I multiply the 40.3 cents
30
described
above by the test year/base year wage rate adjustment
11
factor of 1.053
Revised
IO/l/97
1
(described
in Library Reference
H-146).
This yields 42.4 cents as my estimate of
2
the FY 1998 test year cost difference between parcels and flats in bulk Standard
3
Mail (A).
4
5
The degree of presort and depth of dropshipment
6
costs. Standard
7
dropshipped
8
account for this. Table 7 of Exhibit K shows that .3 cents of the 42.4 cent cost
9
difference
Mail (A) flats are somewhat
than parcels.
can each have an impact on
more finely presorted and deeply
I have adjusted the parcel/flat cost difference to
is due to the deeper entry of flats and 7.0 cents is due to the finer
IO
presort of flats. This leaves 35.1 cents per piece as my estimate of the FY 1998
11
shape-related
12
and flats.
volume variable cost difference between Standard Mail (A) parcels
13
14
D.
SUMMARY
15
16
My testimony
17
Standard
18
cost differences
19
stated, my purpose is to support witness Moeller’s proposed
20
nonletter,
21
(Regular Rate and Nonprofit. Regular and ECR) of pieces that witness Moeller’s
22
surcharge
23
test year cost difference
24
nonletters to be 35.1 cents per piece.
has identified cost differences
between flats and parcels within
Mail (A). I have been quite conservative
and backed out the portion of the
due to differing levels of dropship and presort.
nonflat-shaped
will impact.
As previously
10 cent surcharge
of
mail. My costs and volumes cover the same full range
On the basis of my analysis I estimate the adjusted FY 1998
between flats and parcels within bulk Standard
Mail (A)
ADDITION TO USPS-T-28
(NEW EXHIBIT K)
EXHIBIT K - STANDARD
MAIL (A) UNIT COSTS BY SHAPE
Introduction
This exhibit describes an analysis which estimates the unit attributable
costs for flats and
parcels in Standard Mail (A). In this analysis, the existing Cost and Revenue Analysis (CRA)
mail volume and cost estimates for third-class
bulk regular rate mail in Base Year (BY) 1996
were separated into estimates for letters, flats and parcels.
Mail volumes for each shape and
subclass were derived from the PERMIT and BRAVIS data systems and the Revenue,
and Weight system (RPW)
Attributable
costs were developed
Cost System (IOCS) and the BY CRA and its workpapers.
rate category was then calculated
Throughout
Pieces
primarily from the In-Office
The unit cost for each shape and
by dividing the attributable
cost by the mail volume.
this document the name Standard Mail (A) will be used in the place of third-class,
with the understanding
that part of the data used for this analysis was collected when
Standard Mail (A) was still called third-class mail.
Volume
Estimates
The PERMIT and BRAVIS data systems were used as the source of Standard Mail (A)
volumes by shape.
mail transaction
These systems recorded mailing statement information
at approximately
from each bulk
1,680 offices in FY 1996, covering 93 percent of the revenue
in Standard Mail (A) for that year. The information
recorded from the mailing statement
includes the shape, the indicia, and the revenue, pieces, and weight by detailed rate category
of mail. Christensen
Associates
collected this information
for the Postal Service in the form of
data tapes for the PERMIT systems, and diskettes for BRAVIS.
The general approach used to estimate mail volumes by shape was to group all offices
accepting Standard Mail (A) into strata based upon their National Consolidated
Trial Balance
(NCTB) revenue for permit imprint Standard Mail (A) bulk regular mail and then to inflate
PERMIT and BRAVIS revenue reported in each stratum to the stratum revenue total. A
general description
of this process and detailed documentation
appear in Library Reference H-
108. Tables 1 and 2 of this exhibit include commercial and nonprofit volume by shape
estimates respectively.
1
CRA costs
Shape specific costs were also estimated for bulk Standard Mail (A). These costs were
estimated explicitly for six cost segments of the CRA: mail processing,
window service, city
delivery carriers, vehicle service drivers, rural delivery carriers, and transportation.
remaining cost segments were accounted
for by the use of piggyback factors and a final
control to CRA totals. Table 3 displays the construction
Tables 4 through 6 show the construction
of the cost estimates by shape.
of various distribution
keys used in this process.
Mail processing costs were estimated by summing the variable mail processing
with the remote encoding costs. Mail processing
processing cost development
include the worksheet
The
costs by shape
costs were taken from the variable mail
by shape shown in Library Reference H-106. These costs
adjustments,
premium pay adjustments,
remote encoding costs were attributed entirely to letter-shaped
and piggyback factors.
The
mail.
Window service costs were estimated in two pans. Window service direct costs from LIOCAlT
(Report ALA850p16,
Basic Function Total) were used without modification.
cost segment 3.2 was distributed
in proportion to the mail volume.
The balance of
The sum of direct and other
costs was multiplied by the window service piggyback factor to calculate piggybacked
window
service costs.
City carrier in-office direct labor costs come from IOCS LlOCAlT
Schedule
(Report ALA860P14
-
K&L City Carrier Cost - Basic Function Total) , and were multiplied by the in-office
support factor to yield in-office support costs. City carrier street time costs from segments 7.1
(Route), 7.2 (Access), and 7.4 (Other Load) were distributed to shape by the proportion
volume.
Cost segment 7.3 (Elemental
of mail
Load) was distributed to shape using the distribution
key elemental load. This key was constructed
from the CRA workpapers
for city carriers and is
shown in Table 5. Cost segment 7.5 was distributed in proportion to the sum of the distributed
costs for all other city carrier in-office and street cost components.
delivery carriers were estimated by multiplying
Costs piggybacked
the sum of the distributed
on city
costs for city carriers
by the piggyback factor from library reference H-77.
Vehicle service driver costs were distributed in proportion to estimated cubic volume, and
piggybacked
costs estimated by multiplying
the distributed costs by the piggyback factors.
2
..-.-..
~~-..-__-
Cubic volume was calculated
by dividing the weight by an estimate of the density of each
shape of mail. The density estimate for letters and flats was obtained from Docket No. MC95
1, USPS-LR-MCR-13,
Supplement
1. The density estimate for parcels was developed
in the
study described in Appendix C of Docket No. MC97-2, Library Reference PCR-38.
Total rural delivery carrier costs were distributed
developed
in Table 6 from the evaluated
by the key rural delivery.
route workpapers
on rural carrier costs were estimated by multiplying
factor.
for the CRA. Costs piggybacked
the distributed
Costs for domestic air and domestic water transportation
to weight by shape.
Costs for highway and rail transportation
This key was
costs by the piggyback
were distributed
in proportion
were distributed in proportion to
estimated cubic volume.
The resulting costs were summed and subtracted from the total attributable
category.
cost for each rate
The residual cost was distributed to shape in proportion to mail volume.
of the distributed
costs are shown in the row titled “Total Attributable”
on page 2 of Table 3.
These costs were divided by the mail volume estimate to estimate unit attributable
To examine the potential cost differences
shape, differences
in the use of destination
The sums
cost.
between flats and parcels due to factors other than
entry and presort were analyzed.
This calculation
is shown in Table 7. The result of this analysis is that 7.3 cents of the cost difference between
flats and parcels in Bulk Standard Mail (A) can be explained
and presort level.
3
by differences
in destination
entry
Table
FY 1996 Bulk Standard
1
Mail (A) Commercial
PERMIT Estimate
Rate
Controlled
to GFY RPW
Letters
Basic
Basic ZIP+4 and BC
3/5-DIgit
3/5 DIgit ZIP+4 and BC
Garner Route
High Density
saturation
Total Letters
I
I
315 D& ZIP+4 and BC
Carrier Route
High Density
Saturalion
Total Flak
Revenue
499,923
293.710
1,020,7aO
1,623,86a
1.387.705
10,406
324,517
5,160,910
Pieces
2.147.361
1.493.006
5,543,472
9,891,523
10.090,942
81,389
2.635,836
31 ,aa3.530
Weight
125.566
87.759
374,395
589.548
676,543
7,191
179,615
2.040.638
1,447.670
1.463.202
112.986
988,710
5.046.404
6:460:139
8.290.968
742.221
7.269.917
26.508.816
1,561:704
1,859.133
140.136
1.236.767
5.623,935
Rl?Ve”Ue
131.587
PI%266.451
Weight
141.685
340,016
272,225
602,983
341,974
54,338
1.810
13,125
944.587
8,966
532
2,025 )
492,413 1
6,857
343
1,792
414.805
54,468
1.815
13,161
938,898
9.360
555
2,114
495,688
Revenue
1.017.336
345.306
1,899,174
3.080,755
2.846.943
123.181
1,309,124
10,62l,a21
Pieces
3.616.340
1,666.413
8.609.429
16.462.266
18.385,561
823.148
9,691.564
59.454,721
Weight
532,629 1
129,200
1.224,897
2,138,935
2.438.140
141.673
i,358,917 1
7.964,391 1
Revenue
1.014,295
344,273
1,893.492
3.071,539
2.859,764
123,736
1,315,020
10,622.119
Pieces
3.592.043
1,655.217
8,551,586
16.351.662
18.436.398
825.424
9,9ia,914
59.331.244
Weight
535,696
129,944
1,231,951
2,151.253
2,545.036
147,885
1.418.496
a.160.261
Revenue
6.323.599
4.298,520
10.622.119
Piece
30,150.508
29,180,737
59.331,244
Weight
4.046,844
4,111,416
8,160,261
Revenue
0.99701
1.00450
Pieces
0.99328
1.00277
Weight
1.00576
1.04384
RfX?“M
501,423
294,592
1,023.843
1,628.741
1,381,484
10,359
323,062
5.163,503
PleCeS
2.161.886
1,503.105
5,580.969
9,958.430
10,063,117
81,164
2.628,568
31.977,240
Weight
124,867 1
87,256
372,252
586,173
648,127
6.889
172,071 1
1.997.635 1
1,452,014
1,456,642
112,480
984,277
5.042.350
6.503.836
8.268,106
740,174
7,249.871
26,532.894
1,552,762
1,781,047
134.252
1.184,821
5,474,343
Revenue
131.961
Pieces
268.253
273.042
607.062
8,818
342
1,764
415.967
IPPs and Parcels
Basic
Basic ZIP+4 and BC
3/5-Digit
3/5 Digit ZIP+4 and BC
Carrier Route
High Densiiv
I
Total IPPs and Parcels
I
sa-turation
Weight
140.873 I
All Shapes
BaSlC
Basic ZIP+4 and BC
3/5-Digrl
3/5 Digit ZIP+4 and BC
Carrier Route
High Densitv
I
Total All Shapes
1
GFY RPW Total
I
Sat”rab0”
Basic and 3/5-Digit
Carrier Route
GFY RPW Factors
Basic and 3/5-Digit
Garner Route
I
Table
FY 1996 Bulk Standard
PERMIT
2
Mail (A) Nonprofit
Estimate
Rate
Controlled
to GFY RPW
Letters
BaSlC
Basic ZIP+4 and BC
315.Dioti
315 D,;ti ZIP+4 and BC
Carrier Route
High Density
saturation
Total Letters
I
I
Revenue
177,935
63,465
284.748
292,641
145,165
PleCeS
1.442,931
596,780
2.757.622
3,157.261
1.932,918
Weight
62,600
30,352
114.293
166;550
85,798
Revenue
175,394
62,558
280.681
288,461
139,491
PiEG+S
1,394,463
576,734
2.664.994
3.051.2oa
1.850,970
Weight
60,593
29,379
110.628
161,210
83,996
30,566
994,520
463,079
10,350,590
29,372
975,957
443,446
9,96i,ai5
23,463
469,288
Revenue
75,736
4.303
100,534
89,202
55.284
509
PMXS
387.740
26,249
606.797
604,515
449,512
4,418
Weight
69.190
4,456
92.115
94,257
62,274
585
Revenue
74.654
4,241
99,099
87,928
53,124
489
18,973
338.507
Pieces
374.716
25,366
586,414
584,210
430,455
4.231
178.126
2,ia3,5i9
Weight
66.972
4,313
89,162
91,235
60.966
572
23.120
336,340
Revenue
5,075
Pieces
I a.895
Weight
7,198
Revenue
5,002
Pl%ff
18,260
Weight
6,967
6,320
24,938
10,296
6,230
24,100
9,966
155
0
30
11,580
1,146
0
303
45,283
242
0
29
17.766
149
0
29
11,410
1,099
0
290
43,749
237
0
29
17.199
Revenue
255.051
66:aoo
386.009
376,389
192,764
489
48,373
i .325.874
Pieces
1.787.439
‘602:lOZ
3.275,506
3,635,418
2.282,525
4.231
621,862
12,209.084
Weight
134~532
.~ ~~
33,692
209,756
252,445
145,199
572
46,632
822,827
23.987
483,579 [
Flats
Basic
Bmc ZIP+4 and BC
315.Dlgit
3/5 Digit ZIP+4 and BC
Carrier Route
High Density
saturation
Total Flats
I
IPPs and Parcels
I
Bmc
Basic ZIP*4 and BC
3/5-Digit
315 DIgit ZIP+4 and BC
Carder Route
High Densvty
satura+Jon
Total IPPs and Parcels
I
All Shapu
391,602
381.642
200,605
509
50,341
1.351.413
3,389,356
3,761.776
2,383.578
4.418
649:393
12.661,117
Weight
138.988
34:aoe
216.704
260.807
148,314
565
47,632 1
847,038 ]
Revenue
1 ,oa4,24a
241,626
1.325.874
Pieces
9,300,466
2,908,617
12,209,oa4
Weight
630,424
192,403
822,827
Revenue
0.98572
0.96091
Pieces
0.96641
0.95760
Weight
0.96794
0.97900
Revenue
BaSlC
Bmc ZIP+4 and BC
3/5-DIgit
3/5 Digti ZIP+4 and BC
Gamer Route
Hiah Densitv
258.746
67:768
Sat”rabo”
Total All Shapes
GFY RPW Total
'623:029
I
1
‘Basic and 3/5-Dlgit
Carrier Route
1.849.566
I
‘Basic and 3/5-Dlgrl
Garner Route
GFY RPW Factors
Pieces
Table
FY 1996
Cork
cost
category
C.S. 5.1 Mall Proccsslng
3.la Mail Processing Variable w/ Pigbk
3.1 b Remote Encoding Costs
3.1 Total
C.S. 5.2 Mndow
Sctvlcc
3.2~ Lti
Window SeNice Direct
3.2b CRA Window Service Total
3.2~ Window Service Non-Direct
3 2d Wit&w
Service Piggyback Factor
3.2s Piggybacked C&s
3.2 T&al
C.S. 6 a 7 City Dcllvcry cmrlcrr
6.1 Liccalt In-Oftice Direct Labor
6 2 In-Dfi?cs support
7.1 Route
7.2 Access
7.3 Elemental Load
7.4 Other Load
7.5 street suppxl
6&7 SubhMal
6&7 Piggyback Factcis
667 Piggybacked Costs
667 Total
C.S. 6 Vchlclc Servlcc Drivers
6a Vehicle Senrice Drivers
6b Piggyback Factors
8c Piggybacked Costs
a Total
Sum over
Shapes
Ldters
3,388.933
33.696
1,692.471
3,422,631
1,7x,169
Bulk
3
Standard
Mall
(A)
by Shape ($000)
Flats
IPPS a
Pmcelr
source
I Derlvatlon
i,417.869
278.593
LR-H-106
ws 3.1.1
1,417,669
276,593
=sum(3 la.3 lb)
33.698
3,386
2,024
588
19.802
1.4222
9,790
10,259
1.4222
5.166
569
1.4221
466
52.091
32.978
17,468
1,645
614,403
156,629
40,197
63,045
449,685
447,766
86,116
22,160
35,614
=.=a
346,088
66.531
17,500
31,492
177.711
20,547
3,952
537
739
49.333
231,632
1,760,591
546,443
123,310
937.807
1 3109
231.584
96.9.94
736,334
I,3095
227,907
11,339
86,450
1.3116
26,952
2,307.033
1,229.390
964,241
113,401
64575
46,365
17,424
1.5490
9,565
55,933
1.5465
30.661
ii.218
1 s454
6,116
= CS total from CRA dist. to shape by Cube
LR-H-77 : Cost wghtd avg of Std A subclasses.
= Ba * (6b -1)
130.940
26,989
86,615
17,337
=sum( aa, SC)
5,997
36,627
w630
L!!tt
report ALA65OP16
C.S. 3 2 Total from CRA
q3.2b -3.2a disbibuted to shape by key Volume
LR-H-77 : Cost wghtd avg of Std A subclasses.
=sum(3.2a.3.2c)‘(3.2d
1)
=sum(3 Zs,3.2c,3.2e)
LIOCAlT rsport AlA650P14
= 6.1 * Support Factor
0.1923
= CS total from CRA dist. to shape by Volume
= CS total from CRA dist. to shape by Volume
= CS total horn CRA dist. to shape by ElemLoad
= CS total from CRA dist to shape by Volume
= CS total from CRA dist to shape by 6 1 7 4
= sum of 6.1 through 7.5
LR-H-77 : Cost wghtd avg o, Std A subclasses~
= 667 subtotal ‘( 667 pig, fact - 1)
= sum( 667 subtotal, 667 piggybacked
costs)
Table
FY 1996
Bulk
Costs
3
Standard
Sum over
cost
IO Total
C.S 14 Transportatfon
14.la Dome&Air
14 lbttiihway
14.1~ Railroad
14.1 d Domestic Watei
14.2 International Tnnsportation
14 Total
All Other Costs
A CRA Total for Rate Catsgory
6. Sum of C.S. Totals from above
c. LMferenca
Total All Omer
Total Atbibutablc
Attlbutablc
Dlrblbutlon
1
2
3
4
5
6
7
a
9
10
Cost per Plecc (Dollars)
(A)
IPPS &
Parcel¶
Lenerr
Flats
128.621
176.721
1.1985
35,480
446,783
1 1965
mm
22,373
1.1965
4.441
= CS total from CRA dist to shape by RuralDel
CR-H-77 Cmt wghtd avg of Std A subclasses
:9a’(9b-1)
776,497
214,201
535.482
26.814
=sunq 9a. 9.2)
19.598
247,899
84,846
8.618
7.029
57.028
19,897
2.661
10,938
141,180
47,278
4,992
1.661
49,691
17.471
765
C,S
C .S
C.S.
C S.
C.S.
3JZ0.761
86.615
204.358
69,589
= sum of 14.la through 14.2
category
C.S. 10 Rural Dellvery Carrlcrr
IOa Rural Delivsv Carriers
lob Piggyback Factors
IOC Pipgybscked Costs
Mail
by Shape ($600)
647,876
7,092,586
7.049.953
42,635
17,099
25,456
80
7,092,588
3.333,641
47.00%
3,251,4.%3
45.84%
507,459
7 15%
0080
0113
Elemental Load Key
Rural Dslivery Key
71,540,326
6.983.068
20.4
440.059
to
to
to
to
to
shape
shape
shape
shape
shape
by
by
by
by
by
Weight
Cubs
Cube
Weight
Weight
41,865,345
2,509,926
26 4
88,310
585%
27.9%
201%
28,692,335
5,960,275
20.7
288,597
40.1%
66 3%
65 6%
49.5%
27,6%
39.5%
69.0%
= C dist. to shape by Volume
0.516
Keys
Volume of Mail (MXI)
Weight of Mail (Ooo)
Density of Mail (pounds/cubic
feet)
Cub8 of Mail (OM))
Key -Volume of Mail (percent by shape)
Key Weight of Mail (percent by shape)
Key-Cube
of Mail (percent by shape)
dist
dist
dist
dist
dist
CRA total atbibuiable for rate category
Sum of C.S. totals above
=A-6
42,635
0.099
Total
Total
Total
Total
Total
982,647
512.887
8.1
63,152
14%
5.7%
14.4%
11 Osb
3,5%
Key Name
Source
Volume
Weight
cub-3
Table 1 8 2
Table 1 & 2
MC951, LR-MCR-13, Supp. 1
= Weight I Density
Share of (1) by shape
Share of (2) by shape
Share of (4) by shape
ElemLoad
RuralDel
Table 5
Table 6
FY 1996
Bulk
Standard
Mail
(A) carrier
route
-Total
Table 3A
Costa
cost category
C.S. 3.1 Mall Pracsrlng
3.1s Mail Processing Variable wl Pigbk
3.1 b Rsmots Encoding Costs
31Total
C.S. 5.2 Nlndow SetvIce
3.2a Lioutt Window Sefvics Direct
3~2b CRA Window Sewice Total
3.2~ Window Setics Non-Direct
3.2d Window Service Piggyback Factor
3.2e Piggybacked Costs
3.2 T&l
C.S. 0 a 7 Clly LkllVCry carders
6.1 Liccatt IwOffice Direct Laba
6.2 In-CMcs Support
7.1 Route
7.2 Access
7.3 Elemental Load
7.4 Other Load
7.5 Sbsd supput
687 Subtotal
667 Piggyback Factors
6&7 Piggybacked Costs
667 Total
C.S. 8 Vchlck Scr.4cc Drlvcrs
8a Vehicle Service Drivers
8b Piggyback Factors
& Piggybacked Costs
8 T&l
Sum over
Shapes
Ldterr
by Shapc(S000)
Flab
iPPS a
Parcclr
Source I Derlvallon
452,944
4,735
224.970
4,735
217,310
10,664
LR-H-106
ws 3.1.1
457,679
223.705
217,310
10,664
=sum(3 la,3 1 b)
695
6,W7
5,912
9,399
422
273
/
0
2.9m
I.42250
1,412
2,979
142258
1,374
12
1.4259
5
4.755
4,626
18
Liccatt report ALA850P16
C,S. 3.2 Total from CRA
-3.2b - 3.2a disbibtied to shape by ksy Volume
LR-H-77
=sum(3 2a.3 2c)‘(3.2d - 1)
=sum(3.2a,3.2c,3
2e)
233.181
48.668
367.415
1.3D303
112,442
147,314
28,332
11,444
23,774
117.777
0
50.193
378.840
13cs302
115,934
6,335
1,218
48
100
5,919
0
2.080
15.702
1.30@33
4.805
LIOCATT report AlA850P14
= 6.1 ’ Support Factor
= CS total from CRA dist. to shape by
= CS total from CRA dist to shape by
q CS total from CRA dist to shape by
= CS total from CRA dist. to shape by
= CS total from CRA dist. to shape by
= sum of 6.1 through 7,5
LR-t-77
= 667 subtotal ‘( 667 pig. fact
1)
995,139
479,857
494,775
m,w7
= sum( 6&7 subtotal. 6&7 piggybacked
40,370
7,079
155x4
22.219
3,900
32,731
I.55027
18,011
559
I.55016
308
62,589
10,979
50,743
867
307.2w
59.082
m.91 I
44,303
229,514
0
100,947
761,957
153,551
29,532
9,418
20.429
lc5.818
0
Volume
Volume
ElemLcad
Volume
6.1 7.4
costs)
= CS total horn CRA dist to shape by Cube
LR-H-77,
=8a’(Bb-1)
=s”m( Ba, 8~)
FY 1996 Bulk
Standard
Mall
(A) carria
:oute
Tabk
-TOM
Costs
Sum over
Shapes
cost cstcgory
C.S. 10 Rural Dellvery Cwlcrs
lOa Rural Delivery Carriers
IOb Piggyback Factors
IOC Piggybacked Costs
lOTotal
C.S 14 Tnnsportltlon
14.la Domestic Air
14.lb Hbhway
14.1~ Railroad
14.ld Domes& Water
14.2 lnternstimsl Tnnsporbtion
14Tofal
All Dthcr
A.
6.
c.
Total All OtJwr
Total Attrtbutablc
Dlsblbutlon
1
2
3
Cost per Plecc (Dollars)
Letters
IPPS h
Parcels
Source
= CS total from CRA dist to shape by RuralDel
LR-H-77
= Sa * (9b -1)
54.295
210,527
I,19853
41,798
521
1.19853
103
327,769
74,819
252,326
624
=sum( 9a, 92)
1,352
32,955
9.145
877
0
5
553
147
3
0
C.S
C.S.
C.S.
C.S.
C.S.
44,330
708
= sum of 14.1s through 14.2
1,728
41.309
11.862
1,210
0
333
7.601
2.570
330
0
Il.069
Total
T&l
Total
Total
Total
49,821
23,045
26,663
112
1.958.502
834,229
42.60%
1.090,773
55.69%
~.~
1.71%
0.081
0.055
0,064
0.473
4,303,8rn
197,704
to
to
to
to
to
shaps
shape
shape
shape
shape
by
by
by
by
by
Weight
Cube
Cube
Weight
Weight
= C dist. to shape by Volume
Key Name
32,089,354
dist
dist
dist
dist
dist
CRA MaI atbibtible
for rate category
Sum of C.S. totils above
=A-0
I.=,=
1,508,681
49.821
Keys
Volume of Mail (CC0)
Weight of Mail (Ooo)
Cube of Mail (KU)
I Derlvrtton
62,426
1.19853
12,394
56,107
Costa
CRA Total for Rate C&gory
Sum of C.S. T&Is from stave
Dflsrsnce
Attlbutable
273,474
3A
by Shapc(S000)
15.102.594
970.828
34.158
16.915.917
3.320,697
160,788
70,853
12,295
2,759
Source
Tables 1 and 2
Tables 1 and 2
Sum of carrier route
FY 1996 Bulk
Standard
Ma!l (A) nor?carr!er
rau!e
- Teta!
Table 36
Cask
cost Catsgory
Sum over
Shapes
C.S. 3.1 Mall Proccsslng
3.la Mail Processing Variable wl Pigbk
3.1 b Remote Encading Costs
2,935,988
28,963
1,467+X1
28,963
1.200,5%
267,929
LR-H-106
ws 3.1.1
2.934952
1.496,465
1,2a,558
267,929
=sum(3.la.3.lb)
3.1 Total
C.S. 3.2 Mndow
Scrvlcc
3.2a Liccatt Window Setics Direct
3.B CRA Wind-w Senrice Tokl
3.2~ Window Service Non-Dir&
3.2d Wtndow Service Piggyback Factor
3 20 Piggybacked Cask
3.2 Total
C.S. 6 6 7 Clty Dcllvcty Canlcrs
6.1 Lixatt In-Office Direct Labor
6.2 In-Office Support
7.1 Route
72Access
7.3 Elemsnkl Load
7.4 OOw, Load
7.5 Sbwt Support
667 Subtotal
667 Piggyback Fsctors
6h7 Piggybacked Cmk
6&7 Tokl
C.S. 8 Vchlck Scrvlcc Drlvcrr
6a Vshicls Selvica Drivers
8b Piggyback Factors
8c Piggybacked Costs
8 Total
I
by Shape(S000)
5,302
Letters
2.964
Flak
IPPS h
Parcels
1,751
5.38
worn
24.718
16,881
1.42215
6,378
7,279
1.42212
3,812
557
1.42210
483
42,693
26.223
12,842
1,628
507,202
97,547
19.286
23,742
220.171
0
130,685
998.633
294.217
56,585
12.742
15,385
116,820
0
74.642
570,391
1.31407
179,142
198.774
58.229
6,055
7.718
59,934
0
46,785
357,494
1.31322
111,973
14.211
2,733
488
839
43,417
0
9,259
70.748
1.31303
22,146
1.311.895
749,533
469.467
92,894
M,Z05
24.148
10,344
1 s4771
5,686
23.202
154608
12.670
10,659
1.54514
5,811
68,351
16,010
35,872
16.469
313,281
Source
I Dcrlvatlon
Liocatt report AMBSOP16
C.S. 3.2 Total from CRA
=3.2b - 3.2a disbibukd to shape by key Volume
LR-H-77.
=sum(3 2a,3.2c)*(3.2d - 1)
=sum(3.2a,3.2c.3.2s)
LIOCATT report ALA850P14
= 6.1 * Support Factor
= CS total from CRA dist. to shape by
= CS tvkl from CRA dist. to shape by
= CS total from CRA dist to shape by
= CS tokl from CRA dist. to shape by
= CS tokl horn CRA dist to shape by
= sum of 6.1 through 7.5
LR-H-77
= 667 subtotal ‘( 667 pig. fact. 1)
= sum( 6&7 subtokl.
6&7 piggybacked
Volume
Volume
ElemLoad
Volume
6.1 - 7.4
costs)
= CS total from CRA dust. to shape by Cube
LR-H-77
-8a*(bb-1)
=sum( 8a, 8~)
FY 1996
Bulk
Standard
Mail
(A) noncarrier
route
-Total
Table 36
Cost,
cost category
C.S. IO Rural Delivery Carders
lh Rural Delivery Carriers
IOb Piggyback Factors
10~ Piggybacknd Cask
10 Total
C.S 14 Transportation
14 1 a Domestic Air
14.lb Highway
14.1~ Railroad
14.ld Dome&
Water
14.2 ltismaiional
Transportation
14 Tokl
All Dtbcr
A.
6.
c.
Cosk
CRA Total for Rats Category
Sum of C.S. Totals from above
Dierence
Total All OIher
Total Amlbukblc
Attlbttkblc
DlsWbutMn
1
2
3
Cost per Plccc (Dollars)
Sum over
Shapes
374,402
tdtcra
by Shapc(S000)
Flak
IPPS a
Parcels
I Dcrfvrfton
236,255
1 19852
46.931
21,852
1.19.9.52
74,325
116,295
119852
23,087
448,727
139,392
293.156
26,190
=sum( 9a, 9c)
4.333
= CS total from CRA dist. to shape by RuralDel
LR-H-77
= 9a * (9b -1)
17,872
206,590
72,784
7.40.9
0
6,661
49,227
17,327
2,531
0
9,555
108,225
38.133
4,115
0
I.656
49,139
17.324
762
0
C.S.
C S.
C S.
C.S.
C.S.
3c4.654
75,745
160.029
68,eai
=sumofl4lathrough14,2
5.134.086
5.141.272
-7.186
Total
Total
Total
Total
Tokl
-7.186
-5,946
-1,208
-32
5.134.oSS
2,499,412
4.668%
2.160.715
42.09%
473,959
9.23%
0.130
0.093
0.183
0.5M
to
to
to
to
to
shape
shape
shape
shape
shape
by
by
by
by
by
Weight
Cube
Cubs
Weight
Weight
= C dist. to shape by Volume
Key Name
39,450.974
4.679.263
242,355
dist
dist
dist
dist
dist
CRA total attributable for rate category
Sum of C.S totals above
=A-0
Keys
Vdums of Mail (OM))
Weight of Mail (Ooo)
Cube of Mail (Doe)
Source
X,762,761
1,539,096
54.152
ll.T16,419
2,639,57.3
127,808
911,794
5cn.592
60.394
SOUPX
Tables 1 and 2
Tables 1 and 2
Sum of noncarder
route
FY 1996 Bulk Standard
Mai: (A) E-II haitccd
cost Category
C.S. 3.1 Mall Processing
3.la Mail Processing Variable w/ Pigbk
3.lb Remote Encoding Costs
3.1 Total
C.S. 3.2 Wlndow Service
3.2a Liocatt Window Setice Direct
3 2b CRA Window Service Total
3.2~ Window Se&e Non-Direct
3.2d Window Service Piggyback Factor
3.2ePiggybackedCosts
3.2 Total
C.S. B 6 7 City Dellvery Carders
6.1 Liocattln-Oflice Direct Labor
6.2 In-Office Support
7.1 Route
7.2 Access
7.3 Elemental Load
7.4 Other Load
7.5 street support
687 Subtotal
687 Piggyback Factora
687 Piggybacked Costs
687 Total
C.S. 6 Vehicle Service Drivers
6a Vehicle Service Drivers
6b Piggyback Factors
6c Piggybacked Cask
6 Total
C.S. IO Rural Delivery Carriers
10a Rural Delivery Carriers
IOb Piggyback Factors
10~ Piggybacked Costs
Cairiei
Roliie
Tabie 3Aji j
Costs by Shape ($000)
Sum over
Shapes
Letter5
Flats
IPPS a
Parcels
406.076
4,735
192.382
4,735
205,540
10,154
LR-H-106
ws 3.1.1
412,610
197,116
205.540
10,154
=sum(3.la,3.lb)
695
5,677
4.982
422
273
0
2.167
142261
1,103
2,763
1.42261
1,292
12
142261
5
6,076
3,712
4,346
17
266,643
55,167
20,226
41,494
216,510
0
94.758
714.998
216.604
136,071
26,554
6,076
16.213
97,109
0
44,126
332,951
1.30602
101,890
142.465
27,403
11.300
23.162
114,296
0
46,665
367,351
1.30602
112,417
6,266
1,209
46
99
5,105
0
1,946
14.695
1.30602
4,497
933.601
434,641
479.768
19,192
36,426
21,139
6.150
1.55010
3,363
31,724
1.55010
17,452
554
1.55010
304
59,567
9,533
49,176
656
259,640
57,257
1.19855
11.366
201,916
1.19655
40,091
466
1.19655
93
51.552
Source I Derivation
Liocatl reportALA650P16
C.S. 3,2 Total from CRA
=3 2b - 3 2a distributed to shape by key Volume
LR-H-77.
=sum(3.2a,3,2c)'(3 2d- 1)
=sum(32a.3.2c,3.2e)
LIOCATT reportALABSOPl4
= 6 1 * Support Factor
0.192
= CS total from CRA dist. to shape
= CS total from CRA dist to shape
= CS total from CRA dist. to shape
= CS total from CRA dist. to shape
= CS total from CRA dist. to shape
= sum of 6.1 through 7 5
LR-H-77.
= 687 subtotal ‘( 687 pig. fact. - 1)
by
by
by
by
by
= sum( 687 subtotal. 687 piggybacked
Volume
Volume
ElemLoad
Volume
6.1 - 7.4
costs)
= CS total from CRA dust. to shape by Cube
LR-H-77.
= 6a'@b-1)
=sum( 6a, 6~)
= CS total from CRA dist. to shape by RuralDel
LR-H-77.
= 9a * (9b -1)
FY 1996 Bulk Staiidx;
Mai; (A; Enhanced
cost category
10 Total
C.S 14 Transport&Ion
14.la Domestic Air
14.1 b Highway
14.1 c Railroad
14.1 d Domestic Water
14.2 International Transportation
14 Total
All Other Costs
A. CRA Total for Rate Category
6. Sum of C.S. Totals from above
C. DAerence
Total All Other
Total Attributable
Attlbutable
Dlstrlbutlon
1
2
3
4
5
6
7
8
9
10
Cost per Piece (Dollars)
Carrier
Rate
Table 3Ajlj
Costs by Shape ($000)
Sum over
Shapes
Letters
Flats
IPPS *
Parcels
311,192
66,626
$42.007
559
=s”m( 9a, 9c)
1,706
37,571
9,753
993
0
359
6,013
1,561
209
0
1,344
31,017
6.052
762
0
5
541
140
3
0
C.S
C.S.
C.S.
C.S.
CS
50,025
6.141
41,194
690
= sum of 14.la through 14.2
1.621,927
1.775,471
46,456
Elemental Load Key
Rural Delivery Key
Total
Total
Total
Total
Total
dist
dist
dist
dist
dist
to
to
to
to
to
shape
shape
shape
shape
shape
by
by
by
by
by
Weight
Cube
Cube
Weight
Weight
CRA total attributable for rate category
Sum of C S. totals above
=A-B
46,456
20,391
25,954
111
1.621.927
742,360
40.75%
1.047.967
57.52%
31.560
1.73%
0.062
0.058
0.064
0 455
Keys
Volume of Mail (000)
Weight of Mail (000)
Density of Mail (pounds/cubic
feet)
Cube of Mail (000)
Key - Volume of Mail (percent by shape
Key - Weight of Mail (percent by shape)
Key - Cube of Mail (percent by shape)
Source I Derivation
= C dist. to shape by Volume
Key Name
Source
29,180.737
4.111,416
21.6619
169,799
100.00%
100.00%
100.00%
12,606,167
863,349
28.4219
30,376
43.89%
21.00%
16.00%
16,303,105
3,236,036
20.6526
156.669
55.67%
76.71%
62.56%
69,464
12,029
4,4
2,734
0 24%
0.29%
1.44%
Volume
Weight
Cube
Table 1
Table 1
LR-MCR-13. LR-PCR-36
= Weight I Density
Share of (1) by shape
Share of (2) by shape
Share of (4) by shape
100.00%
100.00%
44.65%
22.05%
52.79%
77.77%
2.36%
0.16%
ElemLoad
RuralDel
Table 5
Table 6
FY 1996
Bulk
Standard
Mail
(A) Regular
Table
Cork
Sum over
Shapes
cost Category
JB(1)
by Shape(S000)
Letters
Flats
IPPs 6
Parcels
1.030,093
252,236
LR-H-106
ws 3.1.1
=s”m(3.la,3.lb)
Source
I Derlvatlon
C.S. 3.1 Mall Processlng
3.la Mail Processing Variable wl Pigbk
3.lb Remote Encoding Costs
2.372,166
24.186
1.089,837
3.1 Total
2,396.352
1,114.024
1.030.093
252,236
3.716
22,022
18.306
1,571
1,557
588
11,582
1.42210
5,552
6,197
1.42210
3,273
528
1.42210
471
31,317
18,704
11,027
1,586
411,386
79,119
16,498
21,862
172,709
0
105,645
807.220
222,276
42,749
10.438
13,831
82,419
0
55,973
427,686
1.31245
133,630
175,672
33,786
5.564
7.400
51.482
0
41.248
315,173
1.31245
98,476
13,439
2,585
476
630
38,808
0
‘3,423
64,360
1.31245
20.109
LIOCATT report ALA850Pl4
= 6 1 * Support Factor
0.192
= CS total from CRA dist. to shape by
= CS total from CRA dist. to shape by
= CS total from CRA dist. to shape by
= CS total from CRA dist. to shape by
= CS total from CRA dist to shape by
= sum of 6.1 through 7.5
LR-H-77.
= 687 subtotal ‘( 687 pig fact. 1)
1,059,435
561,316
413,649
84.470
= sum( 687 subtotal, 687 piggybacked
37,843
20,241
1.54407
11,029
10,351
1 54487
5,640
C.S. 3.2 Wlndow Service
3.2a Liocatt Window Service Direct
3.2b CRA Window Service Total
3.2~ Window Service Non-Direct
3.2d Window Setice Piggyback Factor
3.2e Piggybacked Costs
3.2 Total
C.S. 6 & 7 Clty Dellvery
687 Total
SetvIce
252.216
20,620
7,251
1.54487
3,951
0 Total
58.463
11,202
31,269
15,991
304,392
85.054
1.19851
16.884
198,334
1.19851
39.371
21,003
1.19851
4,169
Dellvery
=sum(3.2a,3.2c,3.2e)
Volume
Volume
ElemLoad
Volume
6 1 7.4
costs)
Drivers
8a Vehicle Service Drivers
.6b Piggyback Factors
8c Piggybacked Costs
C.S. IO Rural
Liocatt report ALA850Pl6
C S. 3.2 Total from CRA
=3.2b 3.2a distributed to shape by key Volume
LR-H-77.
=sum(3.2a,3.2c)‘(3.2d - I)
Carders
6.1 Liocatt In-Wee Direct Labor
6 2 In-Office Support
7.1 Route
7 2 Access
7.3 Elemental Load
7.4 Other Load
7.5 Street Support
687 Subtotal
687 Piggyback Factors
687 Piggybacked Costs
C.S. 8 Vehicle
24,186
= CS total from CRA dist to shape by Cube
LR-H-77.
=8a’(8b-1)
=sum( Ba, SC)
Carriers
10a Rural Delivery Carriers
IOb Piggyback Factors
10~ Piggybacked Costs
60,425
= CS total from CRA dist to shape by RuralDel
LR-H-77.
= 9a’(9b -1)
-..
_ _-
I-Y 19%
-
UUIK Standarfl
Mall
(A) Reguiar
Table
Costs
cost category
10 Total
C.S 14 Transportation
14.la Domestic Air
14.lb Highway
14.1~ Railroad
14.ld Domestic Water
14.2 International Transportation
14 Total
All Other Costs
A. CRA Total for Rate Category
B. Sum of C S. Totals from above
c. Difference
Total All Other
Attibutable
Dlstrlbutlon
1
2
3
4
5
6
7
a
9
10
Cost per Plece
(Dollars)
by Shape(S000)
Sum over
Shapes
Letters
Flats
IPPS h
Parcels
364.817
101,938
237,706
25,173
=sum( Qa. Qc)
1,517
47,554
16,769
726
0
C.S.
C.S.
C.S.
C S.
C.S.
66,567
= sum of 14.la through 14.2
12,702
173.861
61.308
6,077
0
3,693
33,315
11.748
1,767
0
253.948
50,523
7,491
92,992
32,791
3.584
0
136,859
4,164,366
4.164,332
34
34
Total Attributable
38(l)
Elemental Load Key
Rural Delivery Key
Total
Total
Total
Total
Total
dist
dist
dist
dist
dist
to
to
to
to
to
shape
shape
shape
shape
shape
by
by
by
by
by
Weight
Cube
Cube
Weight
Weight
CRA total attributable for rate category
Sum of C.S. totals above
=A-6
21
4,164,366
1.857.729
44.61%
0138
0.097
11
1.860,614
44.68%
0~182
1
= C dist. to shape by Volume
446,023
10.71%
0.513
Keys
Volume of Mail (000)
Weight of Mail (000)
Density of Mail (pounds I cubic feet)
Cube of Mail (000)
Key - Volume of Mail (percent by shape
Key-Weight of Mail (percent by shape)
Key - Cube of Mail (percent by shape)
Source I Derivation
Key Name
SOUK%
30.150,508
4.048,844
18.7298
216,171
100.00%
100.00%
100.00%
19,075,363
1,177,289
28 4219
41,422
63.27%
29.OaX
19.16%
10.205.711
2.387,896
20.6526
115,622
33.85%
5a 98%
53.49%
869,434
483,659
8.18
59.127
2.88%
11.95%
27.35%
Volume
Weight
Cube
Table 1
Table 1
LR-MCR-13, LR-PCR-3a
= Weight / Density
Share of (1) by shape
Share of (2) by shape
Share of (4) by shape
100 00%
100 00%
47.72%
27.94%
29 81%
65.16%
22.47%
6 90%
ElemLoad
RuralDel
Table 5
Table 6
FY 1996
Bulk
Standard
Mail
(A) Nonprofit
Enhanced
Sum ever
Shapes
cost Category
C.S. 3.1 Mall Precesslng
3.la Mail Processing Variable wl Pigbk
3.lb Remote Encoding Costs
3.1 Total
C.S. 3.2 Wlndow
Carrier
Route
Letters
Table
JA(2)
Flats
IPPS 6
Parcels
Source
I Derivation
44.869
0
32.588
0
11,770
510
LR-H-106
ws 3 1.1
44,869
32,588
11,770
510
=sum(3.la,3.lb)
Service
0
0
0
734
1.42213
310
196
142213
a3
0
1.42213
0
1,323
1,043
279
1
6.1 Liocatt In-Once Direct Labor
6.2 In-Oflice Support
7.1 Route
7.2 Access
7.3 Elemental Load
7.4 Other Load
7.5 Street Support
687 Subtotal
687 Piggyback Factors
687 Piggybacked Costs
20,357
3,915
685
2,809
13,004
0
6.189
46,960
14.378
15.480
2,977
540
2,216
a.709
0
4,542
34,464
130617
10.552
4.829
929
144
592
3.481
0
1,514
11.489
1.30617
3.518
49
9
0
1
al4
0
133
1,007
130617
308
LIOCATT report ALAa50Pl4
= 6.1 * Support Factor
0.192
= CS total from CRA dist. to shape by
= CS total from CRA diit. to shape by
= CS total from CRA dist. to shape by
= CS total from CRA dist. to shape by
= CS total from CRA dist. to shape by
= sum of 6.1 through 7.5
LR-H-77.
= 687 subtotal ‘( 6a7 pig. fact, 1)
687 Total
61,337
45.016
15,006
1,315
= sum( 687 subtotal, 687 piggybacked
aa Vehicle Service Drivers
ab Piggyback Factors
ac Piggybacked Costs
1,942
1,079
929
1.55577
516
1,007
1.55577
560
6
1.55577
3
a Total
3,021
1,445
1,567
9
13,834
5.16B
1.19834
1,025
a,61 1
1.19834
1,708
55
1.19834
11
3.2a Liocatt Window Service Direct
3.2b CRA Window Service Total
3.2~ Window Senice Non-Direct
3.2d Window Service Piggyback Factor
3.2.~ Piggybacked Costs
3.2 Total
C.S. 6 6 7 Clty Dellvery
C.S. 6 Vehicle
C.S. 10 Rural
Service
Dellvery
0
930
930
Liocatt reportAtAa50Pl6
C S 3.2 Total from CRA
=3.2b - 3.2a distributed to shape by key Volume
LR-H-77
=s”m(3.2a.3.2c)‘(3
2d 1)
=s”m(3.2a.3.2c.3.2e)
Carders
Volume
Volume
ElemLoad
Volume
6.1 7.4
cask)
Drivers
= CS total from CRA dist. to shape by Cube
LR-H-77.
= aa*(ab-1)
=sum( aa, ac)
Carrlers
IOa Rural Delivery Carders
lob Piggyback Factors
IOc Piggybacked Costs
2,744
= CS total from CRA dist. to shape by RuralDel
LR-H-77.
=Qa’(Qb-1)
FY i336
Bulir Siandard
iviaii (A; Nonpioiit
inhanicd
cost Category
Sum over
Shapes
10 Total
16,578
la
3.738
2,109
217
0
C.S 14 Transportation
14 la Domestic Air
14,lbHighway
14.1~ Railroad
14.ld Domestic Water
14.2 International Transportation
14 Total
All Other Costs
A CRA Total for Rate Category
B. Sum of C.S. Totals from above
C. Difference
Total All Other
Total Attributable
Attlbutable
Dlstrlbutlon
1
2
3
4
5
6
7
a
9
IO
Cost per Piece (Dollars)
Caiiiei
Route
Tabie 3Ajij
Costs by Shapc(SOO0)
Flats
IPPS 6
Parcels
6,193
10,319
66
=sum( Qa. Qc)
IO
I ,788
1,009
121
0
a
1.938
1,094
95
0
0
11
6
0
0
C.S.
CS
C.S.
C.S.
C.?.
2.928
3,135
ia
= sum of 14.la through 14.2
Letters
136,575
133,210
3,365
Elemental Load Key
Rural Delivery Key
Total
Total
Total
Total
Total
dist
dist
dist
dist
dist
to
to
to
to
to
shape
shape
shape
shape
shape
by
by
by
by
by
Weight
Cube
Cube
Weight
Weight
CRA total attributable for rate category
Sum of C S. totals above
=A-B
3,365
2,655
709
2
136,575
91,869
67.27%
42.786
31.33%
1,920
1.41%
0 047
0 040
0.070
1.382
Keys
Volume of Mail (000)
Weight of Mail (000)
Density of Mail (pounds/cubic
feet)
Cube of Mail (000)
Key - Volume of Mail (percent by shape
Key -Weight of Mail (percent by shape)
Key. Cube of Mail (percent by shape)
Source I Derivation
= C dist. to shape by Volume
Key Name
Source
2,908,617
192,403
24.3399
7,905
100 00%
100.00%
100.60%
2.294,417
107,479
26.4219
3,782
78.88%
55.86%
47 84%
612.811
84.658
20,6526
4,099
21.07%
44.00%
51.B6K
I ,389
266
11.03
24
0.05%
0.14%
0.31%
Volume
Weight
Cube
Table 2
Table 2
LR-MCR-13. LR-PCR3a
= Weight / Density
Share of (1) by shape
Share of (2) by shape
Share of (4) by shape
100 00%
100.00%
66.97%
37.36%
26.77%
62 25%
6.26%
0.40%
ElemLoad
RuralDel
Table 5
Table 6
FY 1336 Bulk s:an:ai:
racJ,e 3e(q
Cork by Shape(SOO0)
Mail (Ai Nonpioiii
cost Category
C.S. 3.1 Malt Processing
3.la Mail Processing Variable w/ Pigbk
3.1 b Remote Encoding Costs
3 1 Total
C.S. 3.2 Wlndow Servtce
3.2a Liocatt Window Service Direct
3.2b CRA Window Setice Total
3.2~ Window Setice Non-Direct
3.2d Window Service Piggyback Factor
3.2e Piggybacked Costs
3.2 Total
C.S. 6 6 7 City Dellvery Carriers
6.1 Liocatt In-DftIce Direct Labor
6.2ln-Ofike Support
7.1 Route
7.2 Access
7.3 Elemental Load
7.4 Other Load
7.5 Street Support
687 Subtotal
687 Piggyback Factors
687 Piggybacked Costs
687 Total
C.S. a Vehicle Service Drivers
aa Vehicle Service Ortvars
ab Piggyback Factors
ac Piggybacked Costs
a Total
C.S. 10 Rural Delivery Carriers
IOa Rural Delivery Carriers
IOb Piggyback Factors
IOc Piggybacked Costs
Sum over
Shapes
Letters
Flats
IPPS h
Parcels
563.823
4,777
377,664
4,777
170,466
15,693
LR-H-106
ws3.1.1
568,600
382.441
170,466
15,693
=sum(3.la.3.lb)
1,586
7,998
6.412
1,393
193
0
5,300
1.42225
2,826
1,083
1.42225
539
29
1.42225
12
11.375
9.518
1.815
42
95,816
18.428
2,788
1.~80
47,462
0
25,040
191,414
71,942
13.836
2,304
1,554
34,401
0
18,668
142,705
1.31892
45,512
23,102
4,443
471
318
a.451
0
5,536
42.321
1.31892
13,497
773
149
13
9
4.610
0
836
6.388
1.31892
2,037
252,459
188,217
55.818
a,425
6,362
3,527
3,093
1 55437
1,715
2,961
1.55437
1,641
308
155437
171
9.889
4,808
4,602
479
70.010
31,241
1 19855
6,203
37,921
1.19855
7,529
a48
1.19855
16B
61,046
13,900
Source I Dertvatlon
Liocatt report ALAa50Pl6
C S. 3.2 Total from CRA
=3.2b - 3.2a distributed to shape by key Volume
LR-H-77.
=sum(3.2a,3.2c)^(3,?d
1)
LIOCATT report AtAa50Pl4
= 6.1 *Support Factor
0.192
= CS total from CRA dist. to shape
= CS total from CRA dist to shape
= CS total from CRA dist. to shape
= CS total from CRA dist. to shape
= CS total from CRA dist. to shape
= sum of 6.1 through 7 5
LR-H-77.
= 687 subtotal ‘( 687 pig. fact. - 1)
by
by
by
by
by
= sum( 687 subtotal, 687 piggybacked
Volume
Volume
ElamLoad
Volume
6 1-74
costs)
= CS total from CRA dist to shape by Cube
LR-H-77.
=aa*(ab-1)
=sum(aa,Bc)
= CS total from CRA dust. to shape by RuralDel
LR-H-77
= Qa * (Qb -1)
FY 1996 Bulk Standard
Mail (A) Nonprofit
cost Category
Table 38(Z)
Costs by Shape(S000)
Sum over
Shapes
Letters
Flats
IPPS a
Parcels
63.910
37,443
45,450
1,017
=sum( Qa. Qc)
5,170
32,729
11,476
1,331
0
2,967
15,912
5,579
764
0
2,064
15,233
5,341
531
0
139
1,564
556
36
0
CS
C.S.
CS
C.S.
C.S.
50,706
25,222
23,169
2,314
q
IO Total
c.s 14 Tranrportatlon
14 la Domestic Air
14.1 b Highway
14.lcRailroad
14.ld Domestic Water
14.2 International Transportation
14 Total
All Other Costs
A CRA Total for Rate Category
B. Sum of C.S. Totals from above
c. DHlerence
j
Total
Total
Total
Total
Total
dist
dist
dist
dist
dist
to
to
to
to
to
shape
shape
shape
shape
shape
by
by
by
by
by
Weight
Cube
Cube
Weight
Weight
sum of 14.la through 14.2
CRA total attributable for rate category
Sum of C S. totals above
=A-B
969,720
976,940
-7.220
Total All Other
Source I Derivation
-7,220
-5,967
-1,219
-33
969,720
641,663
66.17%
300,101
30.95%
27,936
2.66%
0.104
0.063
0.191
0,659
= C dist. to shape by Volume
i
Total Attributable
Attlbutable
Dlstrlbutlon
1
2
3
4
5
6
7
a
9
10
Cost Per Piece (Dollars)
Keys
Volume of Mail (000)
Weight of Mail (000)
Density of Mail (pounds/cubic
feet)
Cube of Mail (000)
Key-Volume of Mail (percent by shape
Key - Weight of Mail (percent by shape)
Key -Cube of Mail (percent by shape)
Key Name
SOUK.2
9.300.466
630.424
24.0766
26.164
100.00%
100.00%
100.00%
7.687.399
361.610
26.4219
12,730
62.66%
57.39%
46.62%
1.570.706
251.661
20.6526
12,166
16.69%
39 92%
46.54%
42,360
16,933
13.36
1,267
0.46%
2.69%
4 64%
Volume
Weight
Cube
Table 2
Table 2
LR-MCR-13. LR-PCR-36
= Weight / Density
Share of (1) by shape
Share of (2) by shape
Share of (4) by shape
100.00%
100.00%
72.40%
44.62%
17.61%
54.17%
9.71%
121%
ElemLoad
RuralDel
Table 5
Table 6
Elemental Load Key
Rural Delivery Key
I
,
Derivation
Table 4
of In-Office Support
Factor
Volume Variable
CS 6.1 Direct Labor
CS 6.2 In Office Support
Support Factor
Source
2.760.173
536,232
0.1923
a.
a.
= (6.1 + 6.2) I6.1
a. Development of Cost by Segment and Component
(USPS lo-4730.ALA430P1,
Page 26)
\
Construction
Line No. Class
Letters
Third-Class Mail:
16 Single Piece Rate
Bulk Rate-Reg
!? Car Presort
16 Other
19 Total Regular(Br)
Bulk Rate-Nonprofit
20 Car Presort
21 Other
22 Total Nonprofit
23 Total Third
Source:
C6.7
ELEMENTAL
Parcels Accountables
3!.531
12.047
44.378
!.565
11,995
13,560
4,556
16,249
20.607
114,743
1.069
1,939
3.026
47,419
415
561
976
14,757
W/S 7.0.6.6
(Co1 9)
W/S 7.0.6.6
(CO1 10)
ROUTES-MIXED/BUS
Letters
Flats
Collected
W/S 7.0.6.6
(Co1 11)
W/S 7.0 6.6
(Co1 12)
Parcels Accountables
Collected
STOPS
2
0
59
11
639
2.695
3,534
141
334
475
93
1726
1619
0
0
0
196
944
1,140
4,676
6
41
47
522
4
142
146
2024
0
0
0
11
W/S 7 0.6.7
(Co1 6)
W/S 7.0.6.7
(Co1 9)
Load Key
221
53,663
42,031
93,914
LOAD-LETTER
Third-Class Mail:
16 Single Piece Rate
Bulk Rate-Reg
17 Car Presort
16 Other
19 Total Regular(Br)
Bulk Rate-Nonprofit
20 Car Presort
21 Other
22 Total NonprofIt
23 Total Third
13
22
W/S 7.0.6.6
(Co1 6)
Line No. Class
Source:
Flats
I able 5
of FY 1996 Elemental
W/S 7.0 6 7
(Co1 10)
WIS 7.0.6.7
(Cd 11)
W/S 7.0.6 7
(Co1 12)
Tabie 5
of FY 1996 Elemental
Construction
TOTAL ELEMENTAL
Load Key
LOAD COSTS BY SHAPE OF MAIL
Distribution
Line No. Class
(1)
Letters
Third-Class Mail,
!6 Single Piece Ra!e
Bulk Rate-Reg
17 Car Presort
18 Other
19 Total Regular(Br)
Bulk Rate-Nonprofit
20 Car Presort
21 Other
22 Total Nonprofit
23 Total Third
89.423
79,703
169,126
Carrier Presort
Other
Source:
(2)
Flats
5s
(6)
(5)
(4)
Other
(8)
(7)
Total
Lenet73
Flats
Parcels
666
0
!.015
5.52%
7 :9%
67 29%
105,249
49.786
155,035
4,701
37,529
42,230
0
0
0
199,373
167,016
366,391
44 85%
47 72%
46.16%
52.79%
29.61%
42.31%
2.36%
22.47%
11.53%
6.131
32,942
41,073
210,255
3,250
8,093
11,343
166,451
760
4,414
5,174
48.290
0
0
0
0
12,141
45,449
57,590
424.996
66 97%
72.46%
71.32%
49.47%
26 77%
17.61%
19.70%
39 17%
6 26%
9 71%
8.98%
11.36%
97,554
112,645
108.499
57,079
5,461
41,943
0
0
211,514
212.467
46.12%
53.02%
51.30%
27.24%
2.56%
19.74%
C6.5+C6 6+
C6.7
73
(3)
Parcels
Key:
C6.5+C6.6+
C6 7
C6.5+C6.6+
C6.7+C6.2
C6.l+C6.3+
C6.4
=[(I) + (1) /
wW),W.(3
(4)1/ (5)
=[(2) + (2) /
sum((lLP),(3
(4)1/(5)
=[(3) + (3) /
wN(lW).(V
(4)1/ (5)
”
I sum row’s 17 & 20
/sum rows 16821
Table
Construction
6
of FY 1996 Rural Delivery
Key
Pad 1 Rural Carders: Evaluated Rotin
Due
LtrlFHs
COkled
POStaQC
Line
LMMS
ChSS
THIRD-CLASS MAIL:
16 SINGLE PIECE RATE
BULK RATE-REG
17 CAR PRESORT
16 OTHER
19 TOTAL REGULAR(BR)
BULK RATE-NONPROF
20 CAR PRESORT
21 OTHER
22 TOTAL NONPROF(BR)
23 TOTAL THIRD
source:
Par, 2
Rural Canlm:
LlM
ChSS
265
0
0
0
5
101
33,362
65,201
98,583
179,283
339,.X6
322
16.926
19,250
42,664
4,765
47,509
0
0
0
0
6,963
6,963
4
23
27
0
0
cl
3.636
23,601
27,437
126.077
7.569
54.471
42.040
361.914
49
767
616
20,351
I.354
666
2,M0
@,m
0
0
0
0
0
3,997
3.997
12.960
1
5
6
38
0
0
0
101
w,s 10.1.2
Co, 6
160,343
w/s
10.1.2
WIS 101.2
Cdl0
WIS 10.1 2
COIII
w/s 10.1.2
co112
w/s 10.1.2
Cd 19
w/s 10.1.2
co, 20
w/s 10 1.2
co, 21
LWFk
Collected
PWXk
Acceptd
Acctbls
Accepld
w/s 10.1.2
co, 22
Other Reties
THIRD-CLASS MAIL
16 SINGLE PIECE RATE
BVLK RATE-REG
17 CAR PRESORT
16 OTHER
19 TOTAL REGUlAR(ElR)
BULK RATE-NONPROF
20 CAR PRESORT
21 OTHER
22 TOTAL NONPROF(BR)
23 TOTAL THIRD
source:
57
Parcels
Accepld
Botildr
Acctbls DpJ/Sec Sq
postage
D”e
Acctbls
Acceptd
Flats
Parcels
6
25
29
0
0
0
1
10
34
0
3,363
9,931
15.462
17.266
32,746
33
1,923
1.956
3927
439
4366
0
0
0
0
990
990
0
3
3
0
0
0
0
0
0
0
0
0
366
2.398
2,764
12,701
750
3,324
4,051
36,628
5
76
63
124
61
165
4551
0
0
0
0
0
441
441
1431
0
1
1
5
0
0
0
10
0
0
0
34
0
0
0
0
Leilem
6,568
w,s10.2.2
Cd 6
w,s,o.22
Cal 9
2.068
WIS1022
COIIO
W/SlO,2.2
Cdl1
WISlO,2.2
co,12
WIS10.2.2
Cdl9
WIS 102.2
co, 20
WIS102.2
co, 21
w,s 10.22
Cd 22
Table
Consf~uction
Part 3 Rural Carderv
Line
5
of FY 1996 Rural
C&lively
Key
Sum of Evalualed and Other Routes
Cl%*
THIRD-CLASS MAIL:
16 SINGLE PIECE RATE
BULK RATE-REG
17 CAR PRESORT
16 OTHER
19 TOTAL REGULAR(M)
BULK RATE-NONPROF
20 CAR PRESORT
21 OTHER
22 TOTAL NONPROF(BR)
23 TOTAL THIRD
carder Pru.nl
Other
source
Letter*
Fhk
Par&S
Boxhldr
Acctbls DpJSec
Seg
Postage
DW
LtrlFk
COlleded
Parcels
Aneptd
63
294
314
0
0
0
6
111
361
0
1,149
36,745
71,769
106.514
175,605
196,549
372,354
355
20.651
21,206
46.731
5,224
51,955
0
0
0
0
9.973
9,973
4
26
JO
0
0
0
0
0
0
0
0
0
259.640
304,392
554,032
4.002
26.199
30.201
138,776
8.299
37,795
46.094
416.742
54
645
693
22,419
1.476
727
54.I.W
0
0
0
0
0
4,438
4,436
14,411
1
6
7
43
0
0
0
111
0
0
0
361
0
0
0
0
13,634
70,010
63.&u
649,025
40,747
97,968
164,104
234,344
409
21.696
48,209
5,951
0
0
0
14,411
5
32
0
0
0
0
0
0
273.474
374.402
sum Of
Pall 1 6 2
sum 0,
Part I h 2
sum 0,
Part 1 8 2
u35
Sum of
ParI I 6 2
Sum of
Pai 1 6 2
Sum of
Pali 1 8 2
sum 0,
Part 18 2
Sum of
Part 1 8 2
Part 4 Distribution Key: /I
LhlC
FM5
Class
THIRD-CLASS MAIL’
16 SINGLE PIECE RATE
BULKRATE-REG
17 CAR PRESORT
16 OTHER
19 TOTAL REG”LAR(BR)
BULK RATE-NONPROF
20 CAR PRESORT
21 OTHER
22 TOTAL NONPROF(BR)
23 TOTAL THIRD
carrier Presort
Other
Acctbls
Accepld
PWC&
T&l
LMIWS
Fhk
57.256
65,047
146,407
201.913
198,317
395,667
465
21.002
22,026
259,636
304.356
Ss4.w2
22.05%
27 94%
25.96%
77 77%
65.16%
70.14%
0.16%
6.90%
3.91%
IW.W%
IW.W%
lW.W%
5,166
31,236
35,442
164,663
6,610
37.916
46.486
440.464
55
646
907
23.163
13,633
7o,w4
63.637
648,510
37.36%
4462%
43 47%
2851%
62.25%
5417%
55.45%
67.92%
040%
121%
1 06%
3.57%
lW.W%
lWW%
lWW%
1W.W%
63,436
116.416
209,517
ZJS,lM
515
21.634
273.469
374.370
23,X?%
3l,lO%
76.61%
63.07%
0.19%
5 63%
IW.W%
lW.W%
source:
II Proportion of costs by shape, Mth barholder disbibtied to letters. flats, and parcels In proportion to mail volume (exhibd A),
parcels acceplec distribtied to parcels, and accounlables and postage due dislribtied in proportion lo evaluated costs for IeWs
flats. and parcels
sum Of
Pall 1 8 2
Calculation
1) Weight by Entry Discount
Flats
Parcels
Flats
Parcels
SCF
DDU
Total
1,415,393
365,493
1,403,515
108,056
2.166.316
37,195
970,603
2.106
5,958.027
512,655
Costs
S/lb
and Drop Shipment
A)
BMC
(LR-H-111)
None
BMC
SCF
DDU
0
0.0904
0.1105
0.1379
(= (1) * (2))
None
BMC
SCF
DDU
Total
Average
Avoided
Cost/Piece
0
0
126,676
9,766
239,599
4,110
133.074
291
500,350
14,169
0.017
0.014
4) Pieces by Presort Level
Flats
Parcels
(Appendix
in Presorting
Mail (A)
None
2) Cost Avoidance
3) Avoided
Table 7
of Cost Difference Due to Differences
FY 1996 Bulk Standard
(Table 1 and Table 2)
Basic
315 Digit
Carrier
125 Walk
1,740,525
264,711
10,035,693
627.063
6,721,423
55,567
746,451
1.615
7.446,043
13,451
5) Presort Cost Avoidances
S I pc
(Exhibit
Saturation
USPS-T-ZBC)
Basic
315 Digit
Carrier
125 Walk
Saturation
0
0.062227
0.160176
0.16690
0.202025
Total
26.692,335
962.647
(3a) = (3) to
(3b) = (3) to
Calculation
6) Avoided
Costs
Flats
Parcels
7) Cost Difference
Table 7
of Cost Difference Due to Differences
FY 1996 Bulk Standard
in Presorting
Mail (A)
and Drop Shipment
Total
Average
Avoided
Cost/ Piece
3,666,389
63,524
0.135
0.065
(= (4) * (5))
Basic
315 Digit
Carrier
125 Walk
0
0
625,221
51,563
1.396.963
6,904
139,514
339
Due to Differences
in Entry and Presort
Saturation
1.504,691
2.717
Profile
Flats
9
3
0.003 $ I piece saved due to entry profile relative to parcels. (= (3a) - (3b))
0.070 $ I piece saved cue to presort profile relative to parcels. (= (6a) - (6b))
7C)
0.073
d / piece of difference in average costs of flats and parcels are
explained by differences in presorting and entry profiles. (= va) + (7b))
REVISION TO USPS-LR-H-108
(Replace Pages 1 through Al
with attached pages 1 through 3)
Revised
10/l/97
LR-H-108:
Standard
(A) Commercial
and Nonprofit
Table
Introduction
General
Rate Mail Volume
of Contents
..................................................................................
Description
Data Processing..
of Process..
Estimates
......................................................
..........................................................................
2
.2
.3
3
Revised
10/l/97
Introduction
This document desuibes the methods used to produce volume estimates by rate, weight
and shape for Standard (A) commercial rate and nonprofit rate mail. This report is divided into four
sections. The first provides an overview of the stmtitication and control process. The second
describes the methods used in the handling of PERMIT and BRAVIS data. The third describes the
methods used to summarize the data by entry/presort and shape. The fourth section describes
how volumes are controlled to RPW values. The same methodology is used in nonprofit rate
estimation.
Nonprofit program listings follow regular rate programs.
Several miscellaneous tables appear here as well. Table A-l contains the weight by entry
discount used in USPS-T-28, Exhibit K, Table 7. Tables A-2 and A-3 contain detailed rate data
used in the construction of the unit cost benchmarks in library reference H-103 Table A-4 contains
share of parcels data used by witness Moeller.
General Description
of Process
The general approach used to estimate mail volumes by shape was to group all offices
accepting Standard Mail (A) into strata based upon their National Consolidated
Trial Balance
(NCTE) revenue for permit imprint Standard Mail (A) bulk regular mail and then to inflate
PERMIT and BRAVIS revenue reported in each stratum to the stratum revenue total.
The strata were formed by sorting all offices recording Standard Mail (A) commercial
rate revenue in the NCTB in descending
order by magnitude of revenue.
These offices were
grouped into 20 strata of equal revenue sums. The motivation for this initial stratification
based upon the theory that offices with approximately
mail of similar characteristics.
was
the same revenue totals would have
Thus the first stratum is comprised of only a few offices with
very large revenue totals, and the last stratum contains many offices, each with a small
amount of revenue.
The initial 20 strata were further collapsed into 3 final strata by comparing
the billing determinants
for each of the 20 strata and combining similar adjacent strata.
Once the 3 strata were defined, the sum of the NCTB revenue for each stratum and
Postal fiscal quarter was computed.
The mailing statement data for each stratum and quarter
were summed and then multiplied by the ratio of NCTB strata revenue divided by the mailing
statement strata revenue for permit imprint mail. This ratio was applied to both permit imprint
and stamped and meter mailing statement data. When this was completed for every stratum,
the sum of the revenue for both permit imprint and stamped and metered mail was calculated.
A final control factor of RPW revenue for the quarter divided by this sum was applied to all the
2
--
Revised
10/l/97
mailing statement information
for the quarter.
A summary of the resulting estimates by shape and subclass for Postal Fiscal Year
(PFY) 1996 commercial rate Standard Mail (A) appears in USPS-T-26,
Exhibit K, Table 1, and
for nonprofit mail in Table 2. For the purposes of this analysis the resulting piece and weight
estimates were controlled by subclass to the official Government
Fiscal Year (GFY) 1996 RPW
totals as shown in the tables.
Data Processing
Acquisition
of Data
Each quarter Christiansen Associates receives two tapes from the San Mateo Data Center
containing the PERMIT System Transaction records. BRAVIS records are sent on disk from the
various BRAVIS sites throughout the country. The BRAVIS system was completely replaced by the
PERMIT system as of AP 09 1997
PERMIT Data
Translation
of PERMIT Records from VAX Format
The tiles that we receive are in a VAX variable length record format, with padded blocks
This is not compatible with our operating system (variable length records span blocks), so it is
necessary to translate each block of data to Data General format by stripping each block of the
padding characters.
Unpack, Translate
Data and Remove Reversals - PERMIT Records
Records for non-mail transactions (deposits, refunds, etc.) are skipped. Unused information,
such as clerk’s initials, supervisor’s initials and account balance information, are removed from the
lEc0f-C.
3