Postal Rate Commission
Submitted 5/3/2006 1:59 pm
Filing ID: 48675
Accepted 5/3/2006
USPS-T-9
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, DC 20260-0001
POSTAL RATE AND FEE CHANGES,
2006
TESTIMONY OF
MICO MILANOVIC
ON BEHALF OF
THE UNITED STATES POSTAL SERVICE
Docket No. R2006-1
TABLE OF CONTENTS
PAGE
TABLE OF CONTENTS……………………………………………………..
i
LIST OF EXHIBITS…………………………………………………………..
ii
LIST OF WORKPAPERS……………………………………………………
iii
LIST OF LIBRARY REFERENCES………………………………………...
iv
AUTOBIOGRAPHICAL SKETCH…………………………………………...
1
PURPOSE AND SCOPE OF TESTIMONY………………………...………
2
I.
ROADMAP OVERVIEW…………………………………………….
2
II.
POSTAL COSTING CONCEPTS…………………………….......…
3
A. VOLUME VARIABLE COSTS………………………………...…
3
B. OTHER COSTS…………………………………………………..
4
CHANGES BETWEEN BASE YEAR 2004 AND
BASE YEAR 2005
………………………………………………
4
A. BASE YEAR 2004 TO BASE YEAR 2005……………..........
4
III.
1. GENERAL REVISIONS ……………………………..…..
4
2. NEW STUDIES AND UPDATES ………………………..
5
B. COST CONCEPTS……………………………………………….
7
IV.
DEVELOPMENT OF BASE YEAR 2005 COSTS…………………
8
V.
PROPOSED CHANGES RELATIVE TO PRC METHODOLOGY.
9
ATTACHMENT A “USPS AND PRC BASE YEAR 2005 VOLUME
VARIABLE COSTS" ……………………………………………….…………
i
11
LIST OF EXHIBITS
A. COST SEGMENTS AND COMPONENTS, BY 2005 ………………USPS-9A
B. FINAL ADJUSTMENTS, BY 2005 ……………………………………USPS-9B
C. COST AND REVENUE ANALYSIS, BY 2005 ………………………USPS-9C
ii
LIST OF WORKPAPERS
WP-A. BASE YEAR 2005 REPORTS
TABLE 1. MANUAL INPUT REQUIREMENT REPORT
TABLE 2. “A” REPORT (WITHOUT PESSA)
TABLE 3. FACTOR REPORT
TABLE 4. “B” REPORT (PESSA DETAIL)
WP-B. BASE YEAR 2005 COST SEGMENT SPREADSHEETS (1-20)
iii
LIST OF LIBRARY REFERENCES
I am sponsoring the following library references:
USPS LR-L-4
Base Year 2005 CRA Model and Data Files (CD-ROM)
USPS LR-L-5
Witness Milanovic's A and B Workpapers and Exhibits A, B
and C (CD-ROM)
USPS LR-L-57
Reconciliation of FY 2005 Statement of Revenues and
Expenses to Audited Financial Statements and Reallocation
of Expenses by Component
iv
1
1
2
Autobiographical Sketch
My name is Mico Milanovic. I am an Operations Research Analyst in Cost
3
Attribution, Finance at Postal Service Headquarters. I have been in my current
4
job since 2004 and have been employed by the Postal Service since 1987. I
5
perform work related to the Cost and Revenue Analysis (CRA) and International
6
Cost and Revenue Analysis (ICRA) reports.
7
Prior to my current assignment I worked in various positions throughout
8
the Postal Service. From 2002 to 2004 I was Account Management and Sales
9
Support Specialist in Marketing, Headquarters. From 1997 to 2002 I was Account
10
Manager and Direct Mail Sales Specialist in New York City. My duties included
11
managing business relationships with large mailers and presenting the benefits of
12
USPS products and services for customer acquisition and retention.
13
Prior to that I was a Customer Service Supervisor in various Delivery
14
Stations in Manhattan, and worked in mail processing operations in Manhattan,
15
New Haven and Boston.
16
Prior to my employment with the Postal Service I worked for a German
17
Multinational corporation in their German Headquarters for 3 years, as well as
18
their subsidiary in Bombay, India for 2 years. My job included account
19
management, international sales, market research and business climate and
20
investment analysis in India.
21
In 1991 I received a Bachelor of Arts Degree in Economics from the
22
University of Massachusetts, Boston. I received a professional degree in
23
Business Administration from a German educational institution in 1979.
2
1
2
PURPOSE AND SCOPE OF TESTIMONY
This testimony presents the development of Base Year 2005 costs. A
3
number of changes in the treatment of costs are introduced in this proceeding,
4
resulting in differences between the Base Year 2004 Cost and Revenue Analysis
5
(CRA) and Base Year 2005 costs. My testimony and related workpapers provide
6
a brief overview of these changes and report their results. However, a more
7
thorough treatment of these changes is addressed in the testimony of other
8
witnesses.
9
This testimony is divided into five sections. The first section is the
10
roadmap overview, which in response to Rule 53, lists the witnesses I receive
11
input from and give input to. The second section defines the postal costing
12
concepts used in the identification and development of base year costs. The
13
third section summarizes the changes in the treatment of costs between Base
14
Year 2004, which was the Base Year in Docket No. R2005-1, and Base Year
15
2005. The fourth section of my testimony provides an overview of the
16
development of Base Year 2005 costs. I present these costs as a series of
17
exhibits, which follow this narrative. The last section, again in response to Rule
18
53, describes proposed changes relative to the PRC methodology employed in
19
the most recently concluded rate proceeding.
20
21
22
23
I. Roadmap Overview
I receive inputs from the following the data systems, which are described
in the testimonies of witness Czigler, USPS-T-1, for IOCS inputs; witness
3
1
Harahush, USPS-T-4, for city carrier inputs; witness Riddle, USPS-T-5, for rural
2
carrier inputs; witness Hunter, USPS-T-2, for transportation inputs; witness
3
Kelley, USPS-T-15, for transportation inputs; witness Bradley, USPS-17, for
4
window service inputs; witness Bradley, USPS-T-14, for carrier cost study and
5
transportation inputs; witness Stevens, USPS-T-19, for rural carrier cost inputs in
6
USPS-LR-L-70; witness Pafford, USPS-T-3, for Revenue, Piece and Weights
7
(RPW) inputs; witness Loutsch, USPS-T-6, for the Statement of Revenue and
8
Expenses in USPS-LR-L-50; witness Van-Ty-Smith, USPS-T-11, for mail
9
processing inputs; and witness Smith, USPS-T-13, for facility and equipment
10
inputs.
11
I provide base year cost inputs to the following witnesses - Waterbury,
12
USPS-T-10 for the rollforward; witness Pifer, USPS-T-18, for the incremental
13
cost model; and witness Smith, USPS-T-13, for test year costs, and witness
14
Nieto, USPS-T-24, for special studies. Witness Loutsch, USPS-T-6, uses LR-L-
15
57.
16
17
II. Postal Costing Concepts
18
Base Year costs are classified as either "volume variable" or "other" in the
19
base year cost presentation.1
20
A. Volume Variable Costs
21
As in Dockets Nos. R97-1, R2000-1, R2001-1, and R2005-1, the term
22
“volume variable costs” refers to costs that change (increase or decrease) in
1
Exhibit USPS-9C also includes a column called Incremental Cost which is discussed by witness
Pifer, USPS-T-18.
4
1
response to a small change in mail volume. The degree of variability is the ratio
2
of the percentage change in costs to the corresponding percentage change in
3
volume. The degree of variability is usually referred to as the “variability” and is
4
commonly expressed as a percentage.
5
B. Other Costs
6
The term “other costs” refers to all costs that are not volume variable.
7
They represent the difference between total accrued costs and total volume
8
variable costs.
9
10
11
12
13
14
III. Changes Between Base Year 2004 and Base Year 2005
A. Base Year 2004 to Base Year 2005
The Base Year 2005 CRA was a continuation of the Base Year 2004 CRA
15
methodology, except for the following general revisions, updates and special
16
studies. They are listed below.
17
18
1. General Revisions
The Base Year 2005 CRA and Fiscal Year 2005 CRA are the same.
19
Library references USPS-LR-L-2 and USPS-LR-L-3 show the Fiscal Year 2005
20
CRA and Fiscal Year 2005 Cost Segments and Components Report. Besides the
21
documentation that is part of the Base Year 2005 CRA model and data files
22
found in USPS-LR-L-4, further system documentation of the Base Year CRA
23
model can be found in USPS-LR-L-24.
24
The In-Office Cost System (IOCS) was modified in Fiscal Year 2005. The
25
IOCS and modifications are in the testimony of witness Czigler, USPS-T-1 and
26
witness Bozzo, USPS-T-46.
5
1
2
3
4
2. New Studies and Updates
5
segments and components are incorporated in the Base Year 2005 costs. The
6
following is a summary of these new updates, as well as a reference to their
7
respective sponsoring witness.
8
9
10
11
A number of updates affecting the volume variable costs of selected
Witness Czigler, USPS-T-1, and witness Bozzo, USPS-T-46, present
testimony regarding the In-Office Cost System, which provides data inputs used
to develop costs for various Cost Segments.
Updates to mail processing variabilities and to the subclass distribution of
12
volume-variable mail processing labor costs, affecting cost segment 3, Mail
13
Processing, were made, such as the merger of cost pools, and the elimination of
14
cost pools that were discontinued. The corresponding cost pools for facility
15
space have been similarly changed to reflect operational changes. Cost pool
16
formation is performed in the testimony and library references of witness Van-Ty-
17
Smith, USPS-T-11. Mail processing variabilities are discussed in the testimony
18
of witness Bozzo, USPS-T-12. Facility space-related costs are discussed in the
19
testimony of witness Smith, USPS-T-13.
20
Estimates of product specific costs are still developed and allocated to
21
categories of mail and special services in the estimation and application of
22
incremental costs. These are included in the workpapers of witness Pifer, USPS-
23
T-18. Also all product specific costs are shown in the workpapers of witness
24
Pifer, USPS-T-18.
6
1
In window service, Cost Segment 3.2, an update of the established
2
methodology was conducted and is presented in the testimony of witness
3
Bradley, USPS-T-17.
4
Witness Harahush, USPS-T-4, presents testimony regarding the Carrier
5
Cost Systems, which develops distribution key inputs for most of Cost Segment 7
6
and portions of Cost Segment 6. The distribution keys from the city carrier cost
7
system (CCS) were received as inputs included in the testimony of witness
8
Harahush, USPS-T-4.
9
City carrier costs, affecting Cost Segments 6 and 7, were changed in
10
Docket No. R2005-1 based on a new study. The methodology for calculating city
11
carrier costs is the same as presented in Docket No. R2005-1. The reason no
12
changes were made is provided by Witness Bradley, USPS-T-14.
13
Witness Riddle, USPS-T-5, provides testimony regarding the Rural Carrier
14
Cost System, affecting Cost Segment 10. The testimony of USPS-T-5 provides
15
distribution keys from the rural carrier cost system (RCS) as inputs to the Base
16
Year 2005 costs. An edit was made to the RCS distribution keys for the Base
17
Year 2005 to move international registered tallies to international, correcting an
18
oversight found in the Base Year in Docket No. R2005-1 where they were
19
formerly in domestic registered mail. This edit corrects the situation, which was
20
referred to in Docket No. R2005-1, in the Base Year 2004 supplemental
21
information filed June 20, 2005, which stated, "During the course of discovery, it
22
was determined that the FY 2004 inputs for domestic Registry from the rural
23
carrier system (RCS) contained international Registry."
7
1
Witness Hunter, USPS-T-2, presents testimony regarding the
2
Transportation Cost System (TRACS), which develops distribution keys for the
3
major domestic transportation cost components of Cost Segment 14. The
4
transportation costs are part of the testimony of witness Kelley, USPS-T-15.
5
Also, some calculations may be updated to reflect operational changes. Witness
6
Bradley, USPS-T-14, presents the theoretical basis for product costing in Postal
7
Service air networks. Witness Kelley, USPS-T-15, provides the numerical
8
computations.
9
Affecting Cost Segment 11, Custodial and Maintenance Services; Cost
10
Segment 16, Supplies and Service, and Cost Segment 20, Other Accrued
11
Expenses the testimony of witness Smith, USPS-T-13, includes discussions
12
related to equipment costs. For example, new cost pools for Point of Service
13
(POS) terminals, Mail Evaluation, Reliability & Lookup (MERLIN), mechanized
14
tray sorting, and Postal Automated Redirect System (PARS) have been added to
15
his analysis. Also related to equipment, in Cost Segment 16, one account,
16
54521, for repairs and maintenance of postal operations equipment, was moved
17
from Other Miscellaneous, Cost Segment 16.3.4 (Component 175), to
18
Equipment, Cost Segment 16.3.2, (Component 184) as this account relates to
19
'Equipment' rather than 'Other Miscellaneous'.
20
21
22
23
B. Cost Concepts
Prior to Docket No. R97-1, the Base Year cost presentation included
identification of specific-fixed costs. The Base Year 2005 cost presentation, like
8
1
Base Year 1996 in Docket No. R97-1, Base Year 1998 in Docket No. R2000-1,
2
Base Year 2000 in Docket No. R2001-1, and Base Year 2004 in Docket No.
3
R2005-1, is limited to the estimation of volume variable costs for each category
4
of mail and special service. Estimates of product specific costs are still
5
developed and allocated to categories of mail and special services in the
6
estimation and application of incremental costs. These are included in the
7
workpapers of witness Pifer, USPS-T-18.
8
9
10
IV. Development of Base Year 2005 Costs
Base Year 2005 costs are based on the established cost segments and
11
components. Accrued costs for Base Year 2005 are grouped into 20 cost
12
segments structured along costs for craft activities (e.g., rural carriers), work
13
activities or major functions (e.g., purchased transportation). The cost segments
14
are disaggregated into cost components and subcomponents. For each
15
component or subcomponent a determination of cost variability is made, and
16
then applied to the accrued costs for that component or subcomponent to arrive
17
at the level of volume variable cost. An appropriate distribution key is then
18
employed to distribute this cost to the classes and subclasses of mail and types
19
of special service.
20
Ongoing statistical sampling systems collect data and produce estimates
21
that underlie the costs presented in Exhibit USPS-9A. These cost systems are
22
IOCS, TRACS, CCS, and RCS. See witness Czigler, USPS-T-1, for IOCS,
9
1
witness Hunter, USPS-T-2, for TRACS; witness Riddle, USPS-T-5, for RCS, and
2
witness Harahush, USPS-T-4, for CCS.
3
Cost segments and components for Base Year 2005 are presented as
4
Exhibit USPS-9A to my testimony. Final adjustments are reported in my Exhibit
5
USPS-9B, and a Cost and Revenue Analysis report for Base Year 2005 is
6
provided as Exhibit USPS-9C.
7
8
9
V. Proposed Changes Relative to PRC Methodology
The proposed changes to the Base Year 2005 costs relative to PRC
10
methodology in the last rate proceeding are presented in Section III of my
11
testimony. The only other proposed changes/differences consist of the on-going
12
mail processing methods proposed but not adopted, starting in Docket No. R97-
13
1, and continuing in Docket Nos. R2000-1, R2001-1 and R2005-1; and the
14
different variability for FedEx Day Turn transportation used in the recommended
15
decision from Docket No. R2005-1.
16
The differences between the USPS 2005 base year costs relative to the
17
PRC methodology in the last rate proceeding are best approximated by
18
comparing the results shown in Attachment A of my testimony.
19
To the extent that, in response to Commission Rule 53, I discuss and
20
compare PRC versions of costing materials in this testimony, I do not sponsor
21
those materials, or in any way endorse the methodologies used to prepare them.
22
In its Order No. 1380 adopting the roadmap rule, the Commission included the
10
1
following statements regarding the role played by Postal Service witnesses under
2
these circumstances:
3
4
5
6
7
8
9
10
11
12
The comparison required by this exercise cannot be equated
with sponsoring the preexisting methodology. It merely
identifies and gives context to the proposed change, serving
as a benchmark so that the impact can be assessed. …
[W]itnesses submitting testimony under Rule 53(c) sponsor
the proposed methodological changes, not the preexisting
methodology. That they may be compelled to reference the
preexisting methodology does not mean that they are
sponsoring it.
13
Order No. 1380 (August 7, 2003) at 7. Therefore, although I may
14
be compelled to refer to the PRC methodologies and versions corresponding to
15
the Postal Service proposals which are the subject of my testimony, my
16
testimony does not sponsor those PRC materials.
17
18
19
20
21
22
23
24
25
26
27
28
11
ATTACHMENT A - USPS AND PRC BASE YEAR 2005 VOLUME VARIABLE COSTS
(in millions)
1
USPS
BY05
Volume
Variable
Cost
PRC
BY05
Volume
Variable
Cost
First-Class Mail..........................................
Priority Mail...............................................
Express Mail..............................................
Mailgram...................................................
$17,163.8
3,304.9
507.9
2.2
$18,450.8
3,557.3
551.0
2.2
Periodicals:
In County...............................................
Outside County......................................
Total Periodicals..............................
77.9
2,305.7
2,383.7
82.6
2,431.5
2,514.1
Standard Mail:
Enhanced Carrier Route........................
Regular..................................................
Total Standard Mail..........................
2,758.8
8,265.5
11,024.3
2,813.8
8,579.8
11,393.6
Package Services:
Parcel Post............................................
Bound Printed Matter............................
Media Mail.............................................
Total Package Services....................
1,128.4
511.5
407.4
2,047.3
1,146.5
534.9
428.1
2,109.5
Free Mail for the blind and handicapped..
Special Services........................................
55.6
1,651.5
59.4
1,720.9
USPS-T-9
EXHIBIT USPS-9A
COST SEGMENTS AND COMPONENTS
BASE YEAR 2005
Development of Cost by Segment and Component - Base Year 2005
Cost Segment Summary
Component Name
C/S 1
Postmasters
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(251)
C/S 2
C/S 3 Clerks and C/S 4 Clerks –
C/S 6 City
C/S 7 City
C/S 8 Vehicle
Supervisors and Mailhandlers – CAG K Offices Delivery Carriers Delivery Carriers Service Drivers
Technicians CAG A-J Offices
– Office Activity – Street Activity
(284)
(478)
(254)
(256)
(257)
(258)
C/S 10 Rural
Carriers
(260)
C/S 11 Custodial C/S 12 Motor
and Maintenance Vehicle Service
Services
(359)
(262)
101
102
103
104
105
108
109
110
111
112
109,243
83,041
192,284
3,327
3,194
6,521
198,805
25,735
4,846
0
677,542
280,229
957,771
33,715
12,874
46,589
1,004,360
116,671
25,531
132
4,915,524
1,679,514
6,595,038
198,894
67,088
265,982
6,861,021
1,054,441
234,763
1,268
1,343
485
1,828
52
19
71
1,899
290
0
0
1,250,191
643,794
1,893,986
87,370
30,979
118,349
2,012,335
58,005
12,824
99
1,190,758
628,167
1,818,925
76,934
36,127
113,060
1,931,985
124,723
28,750
148
22,538
24,221
46,759
217
446
663
47,422
71,054
1,589
0
314,178
300,974
615,152
20,849
17,903
38,752
653,904
46,186
12,321
2
667,004
246,426
913,430
24,016
10,100
34,115
947,546
101,279
13,147
161
55,177
32,194
87,370
3,285
1,660
4,945
92,315
23,947
2,836
15
113
117
123
401
11,495
11,896
4,545
130,711
135,256
21,370
925,447
946,817
0
0
0
12,700
322,178
334,878
11,130
121,227
132,357
1,955
29,168
31,123
12,682
138,141
150,823
2,443
99,035
101,478
1,071
13,459
14,530
126
127
135
31,265
73,435
104,700
147,417
466,574
613,991
515,842
3,075,251
3,591,093
92
577
669
507,603
1,080,941
1,588,544
467,708
905,958
1,373,665
42,782
50,379
93,161
518,676
581,805
1,100,481
84,097
443,872
527,969
34,993
52,612
87,605
136
137
139
141
142
147
161
162
6,848
3,310
2,056
12,214
0
0
8,388
366,584
45,234
24,818
16,670
86,722
27,720
2,815
34,493
2,047,691
351,204
162,998
137,157
651,358
211,535
25,138
331,111
13,908,544
67
33
26
126
0
0
1
2,984
19,817
18,611
10,965
49,393
65,267
3,255
15,485
4,140,085
69,923
67,671
27,712
165,307
6,206
2,375
21,935
3,787,451
73,843
27,798
9,546
111,187
3,287
605
7,601
367,029
35,262
25,293
12,042
72,597
3,658
2,279
20,017
2,062,267
47,269
28,764
23,950
99,983
20,253
3,557
34,689
1,850,063
20,231
10,903
3,932
35,066
1,060
258
3,303
260,936
163
164
165
166
168
159
169
170
171
172
173
198
199
200
322
3,337
698
52
1,258
13
103
57
4,398
3,157
13,395
379,979
1,756,872
2,136,851
5,110
23,015
6,077
391
12,235
0
387
655
5,126
21,522
74,519
2,122,210
1,984,945
4,107,155
53,092
105,317
41,853
2,348
106,616
0
3,383
7,334
43,475
152,240
515,659
14,424,203
4,436,816
18,861,019
93
79
3
2
0
0
0
15
3
156
351
3,335
2,638
5,973
1,116
39,899
3,844
226
0
0
0
0
0
16,643
61,728
4,201,813
868,515
5,070,328
1,945
70,109
6,965
913
0
0
0
0
0
42,239
122,171
3,909,622
6,693,689
10,603,311
0
0
0
0
0
0
0
0
0
0
0
367,029
240,232
607,261
2,125
99,075
16,141
1,835
1,309
0
0
0
0
31,325
151,811
2,214,077
3,384,314
5,598,391
2,878
7,655
2,060
136
4,374
1
141
323
149,689
10,630
177,887
2,027,950
1,097,077
3,125,027
148
4,241
545
74
26
0
0
0
0
2,067
7,101
268,037
748,790
1,016,827
Page C-1
Development of Cost by Segment and Component - Base Year 2005
Cost Segment Summary
Component Name
C/S 13
C/S 14
Miscellaneous Transportation
Local Operations
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(263)
(264)
C/S 15 Building C/S 16 Supplies C/S 17 Research
C/S 18
Occupancy
and Services
and
Administration
Development
and Area
Operations
(289)
(490)
(267)
(459)
C/S 19 General
Management
Systems
C/S 20 Other
Accrued
Expenses
(Servicewide)
Total Volume
Variable
(269)
(475)
(460)
101
102
103
104
105
108
109
110
111
112
1,244
648
1,892
85
33
118
2,010
80
18
0
568,394
431,991
1,000,385
5,804
9,919
15,723
1,016,108
1,308,053
107,251
0
313,758
115,265
429,023
11,845
5,044
16,890
445,913
79,643
13,637
56
433,009
138,820
571,829
20,154
6,222
26,377
598,206
139,959
22,014
77
0
0
0
0
0
0
0
0
0
0
442,177
187,344
629,521
21,409
8,609
30,018
659,539
78,408
16,224
87
0
0
0
0
0
0
0
0
0
0
492,357
174,356
666,713
16,809
6,865
23,674
690,387
76,424
12,115
105
11,454,438
4,967,469
16,421,907
524,764
217,083
741,847
17,163,754
3,304,897
507,867
2,151
113
117
123
12
254
266
88
228,781
228,869
2,269
62,280
64,549
2,015
60,456
62,470
0
0
0
3,260
86,022
89,282
0
0
0
1,977
77,091
79,068
77,918
2,305,743
2,383,661
126
127
135
501
1,034
1,535
94,601
406,272
500,874
67,899
229,549
297,448
68,423
245,151
313,574
0
0
0
111,862
323,075
434,937
0
0
0
65,017
328,998
394,016
2,758,777
8,265,484
11,024,261
136
137
139
141
142
147
161
162
37
35
17
89
45
3
18
4,064
332,156
72,743
111,083
515,982
29,754
7,350
849,966
4,564,206
31,688
15,888
12,559
60,135
12,491
1,920
20,777
996,570
23,534
12,910
9,560
46,004
12,362
1,557
18,893
1,215,117
0
0
0
0
0
0
0
0
31,989
17,644
11,804
61,438
16,341
1,955
23,142
1,381,352
0
0
0
0
0
0
0
0
39,282
22,097
18,300
79,679
16,208
2,512
33,901
1,384,415
1,128,386
511,515
407,378
2,047,279
426,186
55,580
1,423,720
38,339,356
163
164
165
166
168
159
169
170
171
172
173
198
199
200
1
51
5
0
0
0
0
0
0
26
84
4,148
315,988
320,136
0
0
0
0
0
0
0
0
0
0
0
4,564,206
872,560
5,436,766
3,086
9,346
2,585
164
5,511
1
178
300
192,176
8,019
221,366
1,217,936
614,197
1,832,133
2,407
10,526
2,835
187
11,363
1,593
5,888
313
16,947
11,320
63,379
1,278,496
1,608,902
2,887,398
0
0
0
0
0
0
0
0
0
0
0
0
40,727
40,727
3,245
16,769
3,745
284
6,095
1
195
405
15,789
13,372
59,901
1,441,253
2,887,302
4,328,555
0
0
0
0
0
0
0
0
0
0
0
0
59,800
59,800
4,725
9,211
22,409
2,124
7,834
0
250
342
125,411
9,880
182,187
1,566,601
943,404
2,510,006
80,295
398,631
109,765
8,736
156,621
1,609
10,526
9,744
553,014
322,597
1,651,538
39,990,895
28,556,769
68,547,664
Page C-2
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 01 - Postmasters
Component Name
Postmasters
Postmasters
EAS 23 & Below EAS 24 & Above
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(1)
1.1
(2)
1.2
C/S 1
Postmasters
(251)
101
102
103
104
105
108
109
110
111
112
109,243
83,041
192,284
3,327
3,194
6,521
198,805
25,735
4,846
0
0
0
0
0
0
0
0
0
0
0
109,243
83,041
192,284
3,327
3,194
6,521
198,805
25,735
4,846
0
113
117
123
401
11,495
11,896
0
0
0
401
11,495
11,896
126
127
135
31,265
73,435
104,700
0
0
0
31,265
73,435
104,700
136
137
139
141
142
147
161
162
6,848
3,310
2,056
12,214
0
0
8,388
366,584
0
0
0
0
0
0
0
0
6,848
3,310
2,056
12,214
0
0
8,388
366,584
163
164
165
166
168
159
169
170
171
172
173
198
199
200
322
3,337
698
52
1,258
13
103
57
4,398
3,157
13,395
379,979
1,704,390
2,084,369
0
0
0
0
0
0
0
0
0
0
0
0
52,482
52,482
322
3,337
698
52
1,258
13
103
57
4,398
3,157
13,395
379,979
1,756,872
2,136,851
Page C-3
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 02 - Supervisors and Technicians
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Mail Processing
Central Mail
Mark-up
(4)
2.1.1
(677)
2.1.2
Supervision of Window Service
Mail Processing
(820)
2.1
(7)
2.2
Supervision of
Admin. and
Support
Activities
(483)
2.3
Supervision of
City Delivery
Carriers
Rural Delivery
Carriers
Vehicle Service
Supervision of
Collection and
Delivery
Employee &
Labor Relations
(20)
2.4.1
(674)
2.4.2
(675)
2.4.3
(821)
2.4
(528)
2.5.1
101
102
103
104
105
108
109
110
111
112
276,389
100,021
376,410
11,015
3,938
14,953
391,362
59,527
12,195
79
12,179
11,248
23,427
728
596
1,324
24,751
427
53
0
288,568
111,269
399,837
11,743
4,534
16,277
416,113
59,954
12,248
79
36,670
2,430
39,101
1,585
100
1,684
40,785
8,560
3,461
0
12,339
5,247
17,586
601
241
843
18,429
2,162
451
2
167,460
87,262
254,723
11,272
4,604
15,876
270,599
12,536
2,852
17
6,294
6,030
12,324
418
359
776
13,101
925
247
0
1,427
1,534
2,961
14
28
42
3,003
4,499
101
0
175,182
94,826
270,008
11,703
4,991
16,694
286,702
17,960
3,200
17
0
0
0
0
0
0
0
0
0
0
113
117
123
1,252
56,577
57,829
137
5,088
5,225
1,389
61,665
63,054
20
337
356
91
2,398
2,489
1,635
30,420
32,054
254
2,768
3,022
124
1,847
1,971
2,013
35,034
37,047
0
0
0
126
127
135
29,572
184,117
213,689
353
3,248
3,601
29,925
187,365
217,290
413
4,652
5,065
3,134
9,014
12,148
66,911
136,310
203,221
10,392
11,656
22,048
2,709
3,190
5,899
80,011
151,156
231,168
0
0
0
136
137
139
141
142
147
161
162
19,918
9,803
7,872
37,594
11,052
1,517
17,496
802,339
172
397
97
666
2,264
26
125
37,138
20,090
10,200
7,969
38,260
13,316
1,543
17,620
839,477
2,565
265
880
3,710
2,374
45
4,452
68,807
883
489
325
1,697
455
54
639
38,526
6,157
5,919
2,653
14,729
4,903
386
2,567
543,865
706
507
241
1,454
73
46
401
41,317
4,675
1,760
604
7,040
208
38
481
23,239
11,538
8,186
3,499
23,224
5,185
470
3,449
608,421
0
0
0
0
0
0
0
0
163
164
165
166
168
159
169
170
171
172
173
198
199
200
2,845
2,419
102
67
0
0
0
445
77
4,783
10,737
813,076
152,400
965,476
4
0
0
9
0
0
0
13
0
344
370
37,508
6,619
44,127
2,849
2,419
102
76
0
0
0
458
77
5,127
11,107
850,584
159,019
1,009,603
656
5,779
3,669
113
9,832
0
312
19
3,881
6,728
30,988
99,795
154,864
254,659
90
471
105
8
169
0
5
11
271
375
1,506
40,031
27,352
67,383
210
7,547
742
78
0
0
0
0
0
4,040
12,616
556,482
518,802
1,075,284
43
1,985
323
37
26
0
0
0
0
628
3,041
44,358
58,802
103,160
0
0
0
0
0
0
0
0
0
0
0
23,239
15,210
38,449
253
9,532
1,065
115
26
0
0
0
0
4,667
15,658
624,079
592,814
1,216,893
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Page C-4
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 02 - Supervisors and Technicians
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Higher Level
Supervisors
General
Supervision of
Mail Processing
(30)
2.5.2
(31)
2.5.3
General
Supervision of
Collection &
Delivery
(32)
2.5.4
Supervisor
Training
(601)
2.5.5
Quality
Joint Supervision Product Specific Tech. Personnel
C/S 2
Control/Revenue Clerks & Carriers and Other S & T & Other Sup. Supervisors and
Protection
Activities
Technicians
(676)
2.5.6
(678)
2.5.7
(33)
2.5.8
(822)
2.5
(284)
101
102
103
104
105
108
109
110
111
112
21,246
8,985
30,231
1,047
415
1,463
31,694
3,653
770
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
7,698
3,180
10,878
383
146
529
11,407
1,325
291
2
13,368
5,205
18,573
606
215
821
19,394
2,469
508
3
122,471
49,087
171,559
6,047
2,231
8,278
179,837
20,587
4,603
25
0
0
0
0
0
0
0
0
0
0
164,783
66,457
231,240
8,083
3,008
11,091
242,331
28,035
6,171
34
677,542
280,229
957,771
33,715
12,874
46,589
1,004,360
116,671
25,531
132
113
117
123
158
4,148
4,306
0
0
0
0
0
0
51
1,484
1,536
74
2,877
2,951
750
22,768
23,518
0
0
0
1,033
31,277
32,310
4,545
130,711
135,256
126
127
135
5,413
15,534
20,947
0
0
0
0
0
0
1,660
5,284
6,944
2,152
9,390
11,542
24,709
84,179
108,888
0
0
0
33,934
114,387
148,321
147,417
466,574
613,991
136
137
139
141
142
147
161
162
1,504
837
553
2,893
792
93
1,084
66,236
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
512
281
189
982
316
32
392
23,226
825
422
332
1,580
568
66
723
39,804
7,317
4,138
2,923
14,377
4,714
512
6,133
363,194
0
0
0
0
0
0
0
0
10,157
5,678
3,996
19,832
6,390
703
8,332
492,460
45,234
24,818
16,670
86,722
27,720
2,815
34,493
2,047,691
163
164
165
166
168
159
169
170
171
172
173
198
199
200
154
820
181
14
290
0
9
19
116
650
2,256
68,492
173,704
242,196
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
58
260
69
4
141
0
4
7
57
245
846
24,071
21,325
45,396
115
171
11
3
0
0
0
18
3
220
540
40,344
7,341
47,685
936
3,564
874
58
1,777
0
56
122
722
3,511
11,619
374,813
198,857
573,670
0
0
0
0
0
0
0
0
0
0
0
0
649,670
649,670
1,263
4,815
1,136
79
2,208
0
70
167
898
4,626
15,260
507,720
1,050,897
1,558,617
5,110
23,015
6,077
391
12,235
0
387
655
5,126
21,522
74,519
2,122,210
1,984,945
4,107,155
Page C-5
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 03 - Clerks and Mailhandlers – CAG A-J Offices
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Mail Processing
Window
Services
Administrative
Clerks
Time &
Attendance
Product Specific
(35)
3.1
(40)
3.2
(476)
3.3.1
(477)
3.3.2
(227)
3.3.3
Administrative C/S 3 Clerks and
Support &
Mailhandlers –
Miscellaneous CAG A-J Offices
(824)
3.3
(478)
101
102
103
104
105
108
109
110
111
112
4,318,431
1,562,767
5,881,198
172,101
61,528
233,629
6,114,827
930,078
190,541
1,231
388,318
25,736
414,054
16,779
1,055
17,834
431,888
90,642
36,653
0
198,320
86,565
284,884
9,505
4,301
13,805
298,689
31,890
7,187
35
10,456
4,446
14,903
509
205
714
15,616
1,832
382
2
0
0
0
0
0
0
0
0
0
0
208,776
91,011
299,787
10,014
4,505
14,519
314,306
33,722
7,569
37
4,915,524
1,679,514
6,595,038
198,894
67,088
265,982
6,861,021
1,054,441
234,763
1,268
113
117
123
19,560
883,980
903,541
210
3,564
3,774
1,523
35,870
37,393
77
2,032
2,109
0
0
0
1,600
37,903
39,502
21,370
925,447
946,817
126
127
135
462,053
2,876,722
3,338,775
4,372
49,262
53,634
46,761
141,629
188,390
2,656
7,638
10,294
0
0
0
49,416
149,267
198,684
515,842
3,075,251
3,591,093
136
137
139
141
142
147
161
162
311,214
153,166
123,001
587,380
172,680
23,699
273,358
12,536,109
27,164
2,804
9,319
39,287
25,138
473
47,139
728,628
12,078
6,613
4,562
23,253
13,331
921
10,072
611,161
748
414
275
1,438
386
46
541
32,647
0
0
0
0
0
0
0
0
12,827
7,028
4,837
24,691
13,717
966
10,614
643,808
351,204
162,998
137,157
651,358
211,535
25,138
331,111
13,908,544
163
164
165
166
168
159
169
170
171
172
173
198
199
200
44,451
37,792
1,592
1,047
0
0
0
6,956
1,200
74,728
167,766
12,703,875
2,381,164
15,085,039
6,948
61,193
38,857
1,198
104,111
0
3,304
200
41,093
71,241
328,145
1,056,773
1,639,915
2,696,688
1,617
5,933
1,316
96
2,361
0
74
169
953
5,954
18,472
629,633
383,360
1,012,994
76
399
89
7
143
0
5
10
229
318
1,276
33,922
23,178
57,100
0
0
0
0
0
0
0
0
0
0
0
0
9,199
9,199
1,693
6,332
1,404
103
2,505
0
79
178
1,182
6,271
19,748
663,556
415,737
1,079,292
53,092
105,317
41,853
2,348
106,616
0
3,383
7,334
43,475
152,240
515,659
14,424,203
4,436,816
18,861,019
Page C-6
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 04 - Clerks – CAG K Post Offices
Component Name
Clerks CAG K
Offices
(42)
4.1
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
C/S 4 Clerks –
CAG K Offices
(254)
101
102
103
104
105
108
109
110
111
112
1,343
485
1,828
52
19
71
1,899
290
0
0
1,343
485
1,828
52
19
71
1,899
290
0
0
113
117
123
0
0
0
0
0
0
126
127
135
92
577
669
92
577
669
136
137
139
141
142
147
161
162
67
33
26
126
0
0
1
2,984
67
33
26
126
0
0
1
2,984
163
164
165
166
168
159
169
170
171
172
173
198
199
200
93
79
3
2
0
0
0
15
3
156
351
3,335
2,638
5,973
93
79
3
2
0
0
0
15
3
156
351
3,335
2,638
5,973
Page C-7
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 06 - City Delivery Carriers – Office Activity
Component Name
In-Office Direct In-Office Support In-Office Support In-Office Support
C/S 6 City
Labor
Overhead
Other
Delivery Carriers
– Office Activity
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(43)
6.1
(44)
6.2.2
(604)
6.2.3
(837)
6.2
(256)
101
102
103
104
105
108
109
110
111
112
950,717
488,635
1,439,352
66,601
23,351
89,952
1,529,304
43,084
9,609
76
218,221
112,158
330,379
15,287
5,360
20,647
351,026
9,889
2,206
17
81,253
43,001
124,255
5,482
2,268
7,750
132,005
5,031
1,010
5
299,474
155,159
454,634
20,769
7,628
28,397
483,031
14,920
3,215
23
1,250,191
643,794
1,893,986
87,370
30,979
118,349
2,012,335
58,005
12,824
99
113
117
123
9,682
249,938
259,620
2,222
57,369
59,591
796
14,871
15,667
3,018
72,240
75,258
12,700
322,178
334,878
126
127
135
386,015
824,501
1,210,516
88,603
189,250
277,853
32,985
67,190
100,175
121,588
256,441
378,028
507,603
1,080,941
1,588,544
136
137
139
141
142
147
161
162
14,021
13,319
8,038
35,378
51,132
2,494
11,704
3,152,917
3,218
3,057
1,845
8,120
11,736
572
2,686
723,699
2,578
2,234
1,082
5,894
2,398
189
1,095
263,469
5,796
5,292
2,927
14,014
14,135
761
3,781
987,168
19,817
18,611
10,965
49,393
65,267
3,255
15,485
4,140,085
163
164
165
166
168
159
169
170
171
172
173
198
199
200
834
29,413
2,828
154
0
0
0
0
0
11,927
45,156
3,198,073
503,148
3,701,221
191
6,751
649
35
0
0
0
0
0
2,738
10,365
734,063
115,489
849,553
91
3,735
367
36
0
0
0
0
0
1,978
6,207
269,676
249,878
519,554
282
10,486
1,016
72
0
0
0
0
0
4,716
16,572
1,003,740
365,367
1,369,107
1,116
39,899
3,844
226
0
0
0
0
0
16,643
61,728
4,201,813
868,515
5,070,328
Page C-8
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 07 - City Delivery Carriers – Street Activity
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Network Travel
Delivery
Activities
Delivery Support
C/S 7 City
Delivery Carriers
– Street Activity
(54)
7.1
(46)
7.2
(280)
7.3
(257)
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
1,052,679
559,478
1,612,158
68,073
32,172
100,245
1,712,402
103,917
23,135
113
138,078
68,689
206,767
8,861
3,955
12,816
219,583
20,806
5,615
36
1,190,758
628,167
1,818,925
76,934
36,127
113,060
1,931,985
124,723
28,750
148
113
117
123
0
0
0
9,854
107,335
117,189
1,275
13,892
15,168
11,130
121,227
132,357
126
127
135
0
0
0
416,655
807,093
1,223,748
51,052
98,864
149,917
467,708
905,958
1,373,665
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
59,412
55,999
23,268
138,679
5,447
2,106
18,473
3,345,210
10,511
11,672
4,444
26,628
759
268
3,462
442,241
69,923
67,671
27,712
165,307
6,206
2,375
21,935
3,787,451
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
1,328,245
1,328,245
1,653
62,525
6,211
799
0
0
0
0
0
37,529
108,716
3,453,927
4,594,372
8,048,299
292
7,584
753
114
0
0
0
0
0
4,710
13,454
455,695
771,072
1,226,767
1,945
70,109
6,965
913
0
0
0
0
0
42,239
122,171
3,909,622
6,693,689
10,603,311
Page C-9
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 08 - Vehicle Service Drivers
Component Name
Vehicle Service
Drivers
(57)
8.1
C/S 8 Vehicle
Service Drivers
(258)
101
102
103
104
105
108
109
110
111
112
22,538
24,221
46,759
217
446
663
47,422
71,054
1,589
0
22,538
24,221
46,759
217
446
663
47,422
71,054
1,589
0
113
117
123
1,955
29,168
31,123
1,955
29,168
31,123
126
127
135
42,782
50,379
93,161
42,782
50,379
93,161
136
137
139
141
142
147
161
162
73,843
27,798
9,546
111,187
3,287
605
7,601
367,029
73,843
27,798
9,546
111,187
3,287
605
7,601
367,029
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
367,029
240,232
607,261
0
0
0
0
0
0
0
0
0
0
0
367,029
240,232
607,261
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Page C-10
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 10 - Rural Carriers
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Evaluated
Routes
Other Routes
(69)
10.1
(70)
10.2
Equipment
Maintenance
Allowance
(73)
10.3
C/S 10 Rural
Carriers
(260)
101
102
103
104
105
108
109
110
111
112
288,826
276,951
565,777
19,065
16,433
35,498
601,275
42,323
11,271
1
25,352
24,024
49,375
1,784
1,470
3,253
52,629
3,862
1,050
0
0
0
0
0
0
0
0
0
0
0
314,178
300,974
615,152
20,849
17,903
38,752
653,904
46,186
12,321
2
113
117
123
11,720
127,664
139,384
962
10,477
11,439
0
0
0
12,682
138,141
150,823
126
127
135
477,849
536,048
1,013,898
40,827
45,757
86,583
0
0
0
518,676
581,805
1,100,481
136
137
139
141
142
147
161
162
32,316
23,249
11,034
66,599
3,347
2,079
18,322
1,898,499
2,946
2,044
1,009
5,998
311
200
1,695
163,767
0
0
0
0
0
0
0
0
35,262
25,293
12,042
72,597
3,658
2,279
20,017
2,062,267
163
164
165
166
168
159
169
170
171
172
173
198
199
200
1,944
90,635
14,764
1,691
1,175
0
0
0
0
26,869
137,079
2,035,578
2,681,864
4,717,442
181
8,440
1,377
144
134
0
0
0
0
4,456
14,732
178,499
253,113
431,612
0
0
0
0
0
0
0
0
0
0
0
0
449,337
449,337
2,125
99,075
16,141
1,835
1,309
0
0
0
0
31,325
151,811
2,214,077
3,384,314
5,598,391
Page C-11
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 11 - Custodial and Maintenance Services
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Custodial
Personnel
Contract
Cleaners
Operating
Equipment
Maintenance
(74)
11.1.1
(81)
11.1.2
(75)
11.2
Plant & Building C/S 11 Custodial
Equipment
and Maintenance
Services
Maintenance
(79)
11.3
(359)
101
102
103
104
105
108
109
110
111
112
170,899
62,236
233,135
6,325
2,711
9,037
242,172
44,084
7,360
31
14,231
5,182
19,414
527
226
753
20,166
3,671
613
3
399,995
149,190
549,185
14,133
5,864
19,996
569,181
32,402
1,648
113
81,879
29,818
111,697
3,031
1,299
4,330
116,026
21,121
3,526
15
667,004
246,426
913,430
24,016
10,100
34,115
947,546
101,279
13,147
161
113
117
123
1,244
34,511
35,755
104
2,874
2,977
499
45,116
45,615
596
16,534
17,130
2,443
99,035
101,478
126
127
135
36,693
125,666
162,359
3,055
10,464
13,520
26,769
247,534
274,303
17,580
60,208
77,787
84,097
443,872
527,969
136
137
139
141
142
147
161
162
17,416
8,692
6,887
32,995
6,773
1,068
11,312
543,909
1,450
724
574
2,748
564
89
942
45,292
20,059
15,184
13,189
48,432
9,672
1,888
17,016
1,000,270
8,344
4,164
3,300
15,808
3,245
512
5,419
260,591
47,269
28,764
23,950
99,983
20,253
3,557
34,689
1,850,063
163
164
165
166
168
159
169
170
171
172
173
198
199
200
1,651
4,716
1,312
83
2,797
0
90
170
95,808
4,131
110,760
654,669
426,085
1,080,754
137
393
109
7
233
0
8
14
7,978
344
9,223
54,515
35,481
89,996
298
286
11
6
3
0
0
58
2
4,175
4,839
1,005,109
431,371
1,436,480
791
2,260
628
40
1,340
0
43
81
45,902
1,979
53,066
313,657
204,140
517,797
2,878
7,655
2,060
136
4,374
1
141
323
149,689
10,630
177,887
2,027,950
1,097,077
3,125,027
Page C-12
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 12 - Motor Vehicle Service
Component Name
Personnel
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(90)
12.1
Supplies &
Materials
(99)
12.2
Vehicle Hire
(108)
12.3
C/S 12 Motor
Vehicle Service
(262)
101
102
103
104
105
108
109
110
111
112
22,531
12,856
35,387
1,362
681
2,043
37,430
8,641
1,193
7
30,897
18,389
49,286
1,809
931
2,740
52,026
14,987
1,611
8
1,748
949
2,698
114
48
162
2,860
319
32
0
55,177
32,194
87,370
3,285
1,660
4,945
92,315
23,947
2,836
15
113
117
123
406
4,956
5,362
643
8,126
8,770
22
376
398
1,071
13,459
14,530
126
127
135
13,657
20,759
34,416
20,544
30,343
50,887
793
1,509
2,302
34,993
52,612
87,605
136
137
139
141
142
147
161
162
6,962
4,050
1,468
12,480
359
95
1,238
101,220
13,004
6,718
2,412
22,134
646
158
2,019
153,245
265
135
53
452
55
6
46
6,471
20,231
10,903
3,932
35,066
1,060
258
3,303
260,936
163
164
165
166
168
159
169
170
171
172
173
198
199
200
63
1,770
228
31
11
0
0
0
0
866
2,970
104,190
313,808
417,998
83
2,392
310
42
15
0
0
0
0
1,158
4,000
157,245
428,153
585,398
2
78
8
1
0
0
0
0
0
42
131
6,602
6,829
13,431
148
4,241
545
74
26
0
0
0
0
2,067
7,101
268,037
748,790
1,016,827
Page C-13
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 13 - Miscellaneous Local Operations
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Contract
Stations
Carfare
Driveout - City
Delivery
Tolls and
Ferriage
Carfare,
Driveout, Tolls
and Ferriage
Federal Reserve
& Commercial
Banks
Employee
Awards
Equipment
Shops
CAG L Rental
Allowance
Other Local
Operations
(111)
13.1
(135)
13.2.1
(141)
13.2.2
(113)
13.2.3
(825)
13.2
(125)
13.3
(115)
13.4
(826)
13.5
(112)
13.6
(114)
13.7
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
508
265
773
35
14
48
821
33
7
0
736
383
1,120
50
20
70
1,190
47
11
0
0
0
0
0
0
0
0
0
0
0
1,244
648
1,892
85
33
118
2,010
80
18
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
113
117
123
0
0
0
5
104
109
7
150
158
0
0
0
12
254
266
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
126
127
135
0
0
0
205
422
627
296
612
908
0
0
0
501
1,034
1,535
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
15
14
7
36
18
1
7
1,659
22
21
10
52
27
2
10
2,405
0
0
0
0
0
0
0
0
37
35
17
89
45
3
18
4,064
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
73,808
73,808
1
21
2
0
0
0
0
0
0
11
34
1,694
23,213
24,907
1
30
3
0
0
0
0
0
0
15
50
2,455
2,227
4,682
0
0
0
0
0
0
0
0
0
0
0
0
453
453
1
51
5
0
0
0
0
0
0
26
84
4,148
25,894
30,042
0
0
0
0
0
0
0
0
0
0
0
0
28,745
28,745
0
0
0
0
0
0
0
0
0
0
0
0
106,472
106,472
0
0
0
0
0
0
0
0
0
0
0
0
22,864
22,864
0
0
0
0
0
0
0
0
0
0
0
0
7
7
0
0
0
0
0
0
0
0
0
0
0
0
58,198
58,198
Page C-14
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 13 - Miscellaneous Local Operations
Component Name
C/S 13
Miscellaneous
Local Operations
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(263)
101
102
103
104
105
108
109
110
111
112
1,244
648
1,892
85
33
118
2,010
80
18
0
113
117
123
12
254
266
126
127
135
501
1,034
1,535
136
137
139
141
142
147
161
162
37
35
17
89
45
3
18
4,064
163
164
165
166
168
159
169
170
171
172
173
198
199
200
1
51
5
0
0
0
0
0
0
26
84
4,148
315,988
320,136
Page C-15
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 14 - Transportation
Component Name
Domestic Air
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(142)
14.1.1
Domestic Alaska
Air
(681)
14.1.1
Highway
Railroad
(143)
14.1.2
(144)
14.1.3
Domestic Water Total Domestic
(145)
14.1.4
(542)
14.1
Total
International
(828)
14.2
C/S 14
Transportation
(264)
101
102
103
104
105
108
109
110
111
112
226,712
217,878
444,590
1,294
4,125
5,419
450,009
895,187
91,215
0
18
0
18
0
0
0
18
72
0
0
335,415
210,005
545,420
4,438
5,673
10,111
555,531
400,762
15,167
0
4,110
3,064
7,174
41
86
127
7,301
9,262
741
0
2,139
1,044
3,183
31
35
66
3,249
2,770
128
0
568,394
431,991
1,000,385
5,804
9,919
15,723
1,016,108
1,308,053
107,251
0
0
0
0
0
0
0
0
0
0
0
568,394
431,991
1,000,385
5,804
9,919
15,723
1,016,108
1,308,053
107,251
0
113
117
123
0
18,042
18,042
0
15
15
86
194,147
194,233
1
13,815
13,816
1
2,762
2,763
88
228,781
228,869
0
0
0
88
228,781
228,869
126
127
135
2,698
22,121
24,819
46
42
89
85,214
344,961
430,175
5,359
33,203
38,562
1,284
5,946
7,230
94,601
406,272
500,874
0
0
0
94,601
406,272
500,874
136
137
139
141
142
147
161
162
8,047
3,279
3,275
14,601
14,186
1,352
88,903
1,598,314
7,773
10
11
7,793
17
0
2
8,005
285,442
65,813
94,379
445,634
15,061
5,812
60,549
2,122,924
25,613
2,855
11,418
39,886
340
132
7,974
118,014
5,282
786
2,000
8,068
150
54
626
25,038
332,156
72,743
111,083
515,982
29,754
7,350
158,055
3,872,295
0
0
0
0
0
0
691,911
691,911
332,156
72,743
111,083
515,982
29,754
7,350
849,966
4,564,206
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
1,598,314
226,728
1,825,042
0
0
0
0
0
0
0
0
0
0
0
8,005
106,022
114,027
0
0
0
0
0
0
0
0
0
0
0
2,122,924
535,017
2,657,941
0
0
0
0
0
0
0
0
0
0
0
118,014
1,248
119,262
0
0
0
0
0
0
0
0
0
0
0
25,038
3,549
28,587
0
0
0
0
0
0
0
0
0
0
0
3,872,295
872,564
4,744,859
0
0
0
0
0
0
0
0
0
0
0
691,911
-4
691,907
0
0
0
0
0
0
0
0
0
0
0
4,564,206
872,560
5,436,766
Page C-16
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 15 - Building Occupancy
Component Name
Rents
Component Number
Cost Segment
(329)
15.1
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Fuel & Utilities Communications C/S 15 Building
and Other
Occupancy
(314)
(393)
(289)
15.2
15.3
101
102
103
104
105
108
109
110
111
112
221,199
81,558
302,756
8,419
3,576
11,995
314,751
55,767
9,651
39
92,560
33,707
126,267
3,426
1,469
4,894
131,161
23,876
3,986
17
0
0
0
0
0
0
0
0
0
0
313,758
115,265
429,023
11,845
5,044
16,890
445,913
79,643
13,637
56
113
117
123
1,595
43,589
45,184
674
18,691
19,365
0
0
0
2,269
62,280
64,549
126
127
135
48,026
161,488
209,514
19,873
68,061
87,934
0
0
0
67,899
229,549
297,448
136
137
139
141
142
147
161
162
22,256
11,180
8,829
42,264
8,823
1,342
14,651
701,986
9,433
4,708
3,730
17,870
3,668
578
6,126
294,584
0
0
0
0
0
0
0
0
31,688
15,888
12,559
60,135
12,491
1,920
20,777
996,570
163
164
165
166
168
159
169
170
171
172
173
198
199
200
2,192
6,792
1,874
119
3,996
1
129
208
140,286
5,781
161,378
863,364
0
863,364
894
2,554
710
45
1,515
0
49
92
51,890
2,238
59,988
354,572
230,769
585,341
0
0
0
0
0
0
0
0
0
0
0
0
383,428
383,428
3,086
9,346
2,585
164
5,511
1
178
300
192,176
8,019
221,366
1,217,936
614,197
1,832,133
Page C-17
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 16 - Supplies and Services
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Stamps &
Dispensers
Money Orders
(180)
16.1.1
(181)
16.1.2
Stamped Cards
& Embossed
Stamped
Envelopes
(248)
16.1.3
Stamps and
Accountable
Paper
Supply
Personnel
Custodial and
Building
Equipment
Comprehensive
Tracking &
Tracing
Other
Miscellaneous
Advertising
(839)
16.1
(173)
16.2
(176)
16.3.1
(184)
16.3.2
(196)
16.3.3
(830)
16.3.4
(246)
16.3.5
101
102
103
104
105
108
109
110
111
112
68,382
2,317
70,699
4,040
293
4,333
75,032
154
10
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
68,382
2,317
70,699
4,040
293
4,333
75,032
154
10
0
0
0
0
0
0
0
0
0
0
0
26,431
9,625
36,056
978
419
1,398
37,454
6,818
1,138
5
128,760
37,435
166,195
4,860
1,390
6,250
172,445
15,994
2,965
30
0
0
0
0
0
0
0
0
0
0
209,436
89,443
298,879
10,276
4,121
14,396
313,275
116,993
17,901
42
0
0
0
0
0
0
0
0
0
0
113
117
123
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
192
5,337
5,530
277
14,462
14,739
0
0
0
1,545
40,656
42,201
0
0
0
126
127
135
807
10,896
11,703
0
0
0
0
0
0
807
10,896
11,703
0
0
0
5,675
19,435
25,110
8,503
61,851
70,354
0
0
0
53,438
152,969
206,407
0
0
0
136
137
139
141
142
147
161
162
8
3
26
37
0
0
162
87,098
0
0
0
0
0
0
21
21
0
0
0
0
0
0
0
0
8
3
26
37
0
0
183
87,119
0
0
0
0
0
0
0
0
2,694
1,344
1,065
5,103
1,047
165
1,749
84,120
6,033
3,335
3,039
12,407
3,607
488
6,204
299,233
0
0
0
0
0
0
0
0
14,800
8,227
5,429
28,456
7,708
904
10,757
744,645
0
0
0
0
0
0
0
0
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
87,098
274
87,372
0
0
0
0
5,847
0
0
0
0
0
5,847
5,867
0
5,867
0
0
0
0
0
1,593
5,713
0
0
0
7,306
7,306
0
7,306
0
0
0
0
5,847
1,593
5,713
0
0
0
13,152
100,271
274
100,545
0
0
0
0
0
0
0
0
0
0
0
0
16,169
16,169
255
729
203
13
433
0
14
26
14,817
639
17,130
101,250
65,897
167,147
642
1,731
849
37
2,227
0
71
95
892
3,852
10,397
309,630
308,886
618,516
0
0
0
0
0
0
0
0
0
423
423
423
0
423
1,509
8,066
1,783
137
2,856
0
91
191
1,238
6,406
22,277
766,923
1,050,978
1,817,901
0
0
0
0
0
0
0
0
0
0
0
0
142,848
142,848
Page C-18
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 16 - Supplies and Services
Non-Mail Related Other Supplies C/S 16 Supplies
Products
and Services
and Services
Component Name
(1426)
16.3.6
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(831)
16.3
(490)
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
364,627
136,503
501,130
16,114
5,929
22,044
523,174
139,805
22,004
77
433,009
138,820
571,829
20,154
6,222
26,377
598,206
139,959
22,014
77
113
117
123
0
0
0
2,015
60,456
62,470
2,015
60,456
62,470
126
127
135
0
0
0
67,616
234,255
301,871
68,423
245,151
313,574
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
23,526
12,907
9,534
45,967
12,362
1,557
18,711
1,127,998
23,534
12,910
9,560
46,004
12,362
1,557
18,893
1,215,117
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
23,849
23,849
2,407
10,526
2,835
187
5,516
0
176
313
16,947
11,320
50,227
1,178,225
1,592,459
2,770,684
2,407
10,526
2,835
187
11,363
1,593
5,888
313
16,947
11,320
63,379
1,278,496
1,608,902
2,887,398
Page C-19
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 17 - Research and Development
Component Name
Research &
Development
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
C/S 17 Research
and
Development
(267)
(190)
17.1
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
113
117
123
0
0
0
0
0
0
126
127
135
0
0
0
0
0
0
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
40,727
40,727
0
0
0
0
0
0
0
0
0
0
0
0
40,727
40,727
Page C-20
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 18 - Administration and Area Operations
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Headquarters
Money Order
Division
(191)
18.1.1
(192)
18.1.2
Area
Postal Inspection Administration
Administration
Service
Personnel
(193)
18.1.3
(832)
18.1.4
(833)
18.1
Supplies &
Services
Miscellaneous
Support
(210)
18.2.1
(211)
18.2.2
Inspection
Expenses &
Employee
Losses
(212)
18.2.3
Reimbursements
Individual
Awards
(213)
18.2.4
(1429)
18.2.5
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
11,310
4,119
15,428
419
179
598
16,026
2,917
487
2
11,310
4,119
15,428
419
179
598
16,026
2,917
487
2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
113
117
123
0
0
0
0
0
0
0
0
0
82
2,284
2,366
82
2,284
2,366
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
126
127
135
0
0
0
0
0
0
0
0
0
2,428
8,316
10,745
2,428
8,316
10,745
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,153
575
456
2,184
448
71
749
35,995
1,153
575
456
2,184
448
71
749
35,995
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
732,017
732,017
0
0
0
0
0
0
0
0
0
0
0
0
3,392
3,392
0
0
0
0
0
0
0
0
0
0
0
0
179,820
179,820
109
312
87
6
185
0
6
11
6,340
273
7,330
43,325
485,968
529,293
109
312
87
6
185
0
6
11
6,340
273
7,330
43,325
1,401,197
1,444,522
0
0
0
0
0
0
0
0
0
0
0
0
249,259
249,259
0
0
0
0
0
0
0
0
0
0
0
0
135,683
135,683
0
0
0
0
0
0
0
0
0
0
0
0
1,756
1,756
0
0
0
0
0
0
0
0
0
0
0
0
-3,282
-3,282
0
0
0
0
0
0
0
0
0
0
0
0
10,287
10,287
Page C-21
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 18 - Administration and Area Operations
Component Name
Miscellaneous Commissions on Administration
Personnel
Non-US Money
Support
Compensation
Orders
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
(1430)
18.2.6
(244)
18.2.7
(840)
18.2
Repriced Annual
Leave
Holiday Leave
(292)
18.3.1
(487)
18.3.2
Civil Service
Retirement
Supplemental
Liability
(201)
18.3.3
Workers
Compensation
(486)
18.3.4
Unemployment Annuitant Health
Benefits
Compensation
(453)
18.3.5
(208)
18.3.6
Annuitant Life
Insurance
(71)
18.3.7
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
15,121
6,430
21,551
737
296
1,032
22,584
2,649
552
3
164
70
234
8
3
11
246
29
6
0
0
0
0
0
0
0
0
0
0
0
140,229
59,632
199,861
6,831
2,743
9,575
209,436
24,569
5,122
28
7,376
3,137
10,513
359
144
504
11,016
1,292
269
1
266,065
113,144
379,208
12,962
5,205
18,167
397,376
46,616
9,717
53
1,912
813
2,725
93
37
131
2,855
335
70
0
113
117
123
0
0
0
0
0
0
0
0
0
112
2,939
3,050
1
32
33
0
0
0
1,034
27,253
28,287
54
1,434
1,488
1,962
51,709
53,671
14
372
386
126
127
135
0
0
0
0
0
0
0
0
0
3,840
11,046
14,887
42
120
162
0
0
0
35,616
102,441
138,057
1,873
5,388
7,262
67,576
194,367
261,943
486
1,397
1,882
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
0
0
0
0
0
0
81
81
0
0
0
0
0
0
81
81
1,082
599
398
2,079
558
66
783
47,212
12
7
4
23
6
1
9
513
0
0
0
0
0
0
0
0
10,036
5,555
3,693
19,285
5,172
613
7,262
437,830
528
292
194
1,014
272
32
382
23,030
19,042
10,540
7,008
36,590
9,814
1,164
13,778
830,723
137
76
50
263
71
8
99
5,969
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
-18,296
-18,296
0
0
0
0
0
0
0
0
0
0
0
81
0
81
0
0
0
0
0
0
0
0
0
0
0
81
375,407
375,488
110
578
128
10
207
0
7
14
332
460
1,845
49,056
35,920
84,976
1
6
1
0
2
0
0
0
4
5
20
533
391
924
0
0
0
0
0
0
0
0
0
0
0
0
27,000
27,000
1,020
5,356
1,191
91
1,923
0
61
128
3,075
4,263
17,110
454,940
393,345
848,285
54
282
63
5
101
0
3
7
162
224
900
23,930
17,521
41,451
1,936
10,163
2,259
172
3,650
0
116
243
5,835
8,088
32,463
863,186
632,030
1,495,216
14
73
16
1
26
0
1
2
42
58
233
6,202
4,542
10,744
Page C-22
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 18 - Administration and Area Operations
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Annuity
Protection
Program
FERS
Retirement Fund
Deficit Current
Personnel
Benefits
(207)
18.3.9
(19)
18.3.10
(835)
18.3
C/S 18
Administration
and Area
Operations
(459)
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
430,867
183,225
614,092
20,990
8,430
29,420
643,512
75,490
15,736
85
442,177
187,344
629,521
21,409
8,609
30,018
659,539
78,408
16,224
87
113
117
123
0
0
0
0
0
0
3,178
83,738
86,916
3,260
86,022
89,282
126
127
135
0
0
0
0
0
0
109,433
314,759
424,193
111,862
323,075
434,937
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
30,836
17,069
11,349
59,254
15,893
1,885
22,313
1,345,277
31,989
17,644
11,804
61,438
16,341
1,955
23,142
1,381,352
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
-51
-51
0
0
0
0
0
0
0
0
0
0
0
0
0
0
3,135
16,457
3,659
279
5,910
1
189
394
9,449
13,099
52,571
1,397,848
1,110,697
2,508,545
3,245
16,769
3,745
284
6,095
1
195
405
15,789
13,372
59,901
1,441,253
2,887,302
4,328,555
Page C-23
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 19 - General Management Systems
Component Name
Maintenance
Technical
Support Center
(219)
19.1.1
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Supplies &
Services
C/S 19 General
Management
Systems
(269)
(220)
19.1.2
101
102
103
104
105
108
109
110
111
112
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
113
117
123
0
0
0
0
0
0
0
0
0
126
127
135
0
0
0
0
0
0
0
0
0
136
137
139
141
142
147
161
162
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
163
164
165
166
168
159
169
170
171
172
173
198
199
200
0
0
0
0
0
0
0
0
0
0
0
0
5,101
5,101
0
0
0
0
0
0
0
0
0
0
0
0
54,699
54,699
0
0
0
0
0
0
0
0
0
0
0
0
59,800
59,800
Page C-24
Development of Cost by Segment and Component - Base Year 2005
Cost Segment 20 - Other Accrued Expenses (Servicewide)
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Equipment
Depreciation
Vehicle
Depreciation
Building &
Leasehold
Depreciation
Indemnities
(505)
20.1
(447)
20.2
(420)
20.3
(397)
20.4
Interest Expense Other Expenses
(283)
20.5
(245)
20.6
C/S 20 Other
Accrued
Expenses
(Servicewide)
(475)
101
102
103
104
105
108
109
110
111
112
290,702
98,157
388,859
9,018
3,507
12,524
401,383
23,625
2,578
70
6,363
4,199
10,562
360
202
562
11,124
3,600
198
1
194,913
71,866
266,778
7,419
3,151
10,570
277,348
49,140
8,504
35
0
0
0
0
0
0
0
0
825
0
379
134
513
13
5
18
532
59
9
0
0
0
0
0
0
0
0
0
0
0
492,357
174,356
666,713
16,809
6,865
23,674
690,387
76,424
12,115
105
113
117
123
414
36,594
37,008
155
2,029
2,184
1,405
38,409
39,814
0
0
0
2
59
61
0
0
0
1,977
77,091
79,068
126
127
135
17,818
179,407
197,226
4,830
7,040
11,870
42,319
142,298
184,616
0
0
0
50
253
303
0
0
0
65,017
328,998
394,016
136
137
139
141
142
147
161
162
16,145
10,736
9,968
36,849
8,249
1,288
14,563
722,837
3,496
1,493
538
5,527
173
40
451
35,169
19,611
9,852
7,779
37,242
7,774
1,183
12,910
618,566
0
0
0
0
0
0
5,956
6,781
30
17
14
61
12
2
22
1,061
0
0
0
0
0
0
0
0
39,282
22,097
18,300
79,679
16,208
2,512
33,901
1,384,415
163
164
165
166
168
159
169
170
171
172
173
198
199
200
502
2,722
1,613
59
4,304
0
137
158
1,699
4,542
15,735
738,572
443,961
1,182,533
12
497
63
8
3
0
0
0
0
237
820
35,989
110,033
146,022
1,932
5,985
1,652
105
3,521
0
114
183
123,615
5,094
142,201
760,767
0
760,767
2,278
0
19,079
1,952
0
0
0
0
0
0
23,309
30,090
35,888
65,978
2
7
3
0
6
0
0
0
97
8
122
1,183
348,351
349,534
0
0
0
0
0
0
0
0
0
0
0
0
5,172
5,172
4,725
9,211
22,409
2,124
7,834
0
250
342
125,411
9,880
182,187
1,566,601
943,404
2,510,006
Page C-25
USPS-T-9
EXHIBIT USPS-9B
FINAL ADJUSTMENTS
BASE YEAR 2005
Development of Cost by Segment and Component - Base Year 2005
D Report
Component Name
Component Number
Cost Segment
First-Class Mail
Single Piece Letters
Presort Letters
Total Letters
Single Piece Cards
Presort Cards
Total Cards
Total First-Class
Priority Mail
Express Mail
Mailgrams
Periodicals
Within County
Outside County
Total Periodicals
Standard Mail
Enhanced Carr Rte
Regular
Total Standard Mail
Package Services
Parcel Post
Bound Printed Matter
Media Mail
Total Package Services
U.S. Postal Service
Free Mail
International Mail
Total All Mail
Special Services
Registry
Certified
Insurance
Cod
Money Orders
Stamped Cards
Stamped Envelopes
Special Handling
Post Office Box
Other
Total Special Services
Total Volume Variable
Other Costs
Total Costs
Total Volume
Variable
Final
Adjustments
Adjusted Volume
Variable Costs
Contingency
Total Including
Contingency
(460)
(501)
(504)
(503)
(502)
101
102
103
104
105
108
109
110
111
112
11,454,438
4,967,469
16,421,907
524,764
217,083
741,847
17,163,754
3,304,897
507,867
2,151
0
0
0
0
0
0
0
0
0
0
11,454,438
4,967,469
16,421,907
524,764
217,083
741,847
17,163,754
3,304,897
507,867
2,151
0
0
0
0
0
0
0
0
0
0
11,454,438
4,967,469
16,421,907
524,764
217,083
741,847
17,163,754
3,304,897
507,867
2,151
113
117
123
77,918
2,305,743
2,383,661
0
0
0
77,918
2,305,743
2,383,661
0
0
0
77,918
2,305,743
2,383,661
126
127
135
2,758,777
8,265,484
11,024,261
0
0
0
2,758,777
8,265,484
11,024,261
0
0
0
2,758,777
8,265,484
11,024,261
136
137
139
141
142
147
161
162
1,128,386
511,515
407,378
2,047,279
426,186
55,580
1,423,720
38,339,356
0
0
0
0
-426,186
0
0
-426,186
1,128,386
511,515
407,378
2,047,279
0
55,580
1,423,720
37,913,171
0
0
0
0
0
0
0
0
1,128,386
511,515
407,378
2,047,279
0
55,580
1,423,720
37,913,171
163
164
165
166
168
159
169
170
171
172
173
198
199
200
80,295
398,631
109,765
8,736
156,621
1,609
10,526
9,744
553,014
322,597
1,651,538
39,990,895
28,556,769
68,547,664
0
0
0
0
0
0
0
0
0
0
0
-426,186
426,186
0
80,295
398,631
109,765
8,736
156,621
1,609
10,526
9,744
553,014
322,597
1,651,538
39,564,709
28,982,955
68,547,664
0
0
0
0
0
0
0
0
0
0
0
0
0
0
80,295
398,631
109,765
8,736
156,621
1,609
10,526
9,744
553,014
322,597
1,651,538
39,564,709
28,982,955
68,547,664
Page D-1
USPS-T-9
EXHIBIT USPS-9C
COST AND REVENUE ANALYSIS
BASE YEAR 2005
COST AND REVENUE ANALYSIS
BASE YEAR 2005
FINANCE
SUMMARY OF REVENUE AND COST FOR MAJOR SERVICE CATEGORIES
Base Year 2005
Classes and Sub-Classes of Mail
(note 1)
Revenue
(note 1)
A
(in millions)
Incremental
Cost
(notes 2 & 4)
B
Volume
Variable Cost
(note 2)
C
Revenue
$
D
.
(per piece)
Marginal Contribution Cost
Cost $
$
Coverage
(note 2)
(note 2)
(note 2)
E
(D-E)
(D/E)
First-Class Mail:
Single-Piece Letters..............................
Presort Letters.......................................
Total Letters.......................................
Single-Piece Cards................................
Presort Cards.........................................
Total Cards.........................................
Fees (note 2)..........................................
Total First-Class...............................
$19,662.1
14,946.0
34,608.1
598.8
574.9
1,173.8
270.2
36,052.2
$12,054.3
5,143.9
17,681.4
528.7
217.5
747.2
$11,454.4
4,967.5
16,421.9
524.8
217.1
741.8
$0.453
0.305
0.374
0.238
0.185
0.209
$0.264
0.101
0.178
0.208
0.070
0.132
$0.189
0.203
0.197
0.029
0.115
0.077
171.65%
300.88%
210.74%
114.12%
264.85%
158.22%
18,654.7
17,163.8
0.368
0.175
0.193
210.05%
Priority Mail................................................
4,633.3
3,572.8
3,304.9
5.221
3.724
1.497
140.19%
Express Mail...............................................
872.3
611.9
507.9
15.724
9.155
6.569
171.75%
Mailgram.....................................................
0.8
2.2
2.2
0.417
1.134
(0.717)
36.76%
Periodicals:
In County................................................
Outside County (note 2)........................
Fees (note 2)..........................................
Total Periodicals...............................
72.2
2,068.9
19.6
2,160.8
78.0
2,334.0
77.9
2,305.7
0.095
0.249
0.102
0.278
(0.008)
(0.029)
92.65%
89.73%
2,415.4
2,383.7
0.238
0.263
(0.025)
90.65%
Standard Mail:
Enhanced Carrier Route (note 2).........
Regular (note 2).....................................
Fees (note 2)..........................................
Total Standard Mail..........................
5,627.2
13,217.2
109.0
18,953.5
2,838.9
8,555.9
2,758.8
8,265.5
0.161
0.201
0.079
0.125
0.082
0.075
203.98%
159.91%
11,685.5
11,024.3
0.188
0.109
0.079
171.93%
Package Services:
Parcel Post.............................................
Bound Printed Matter............................
Media Mail (note 2)................................
Fees (note 2)..........................................
Total Package Services...................
1,232.5
595.8
370.1
2.4
2,200.7
1,145.0
515.8
409.5
1,128.4
511.5
407.4
3.178
1.021
1.908
2.910
0.876
2.100
0.268
0.144
(0.192)
109.22%
116.48%
90.85%
2,107.3
2,047.3
1.888
1.757
0.132
107.49%
See accompanying notes.
1
SUMMARY OF REVENUE AND COST FOR MAJOR SERVICE CATEGORIES
Base Year 2005
Classes and Sub-Classes of Mail
(note 1)
Free Mail - blind, handicapped &
servicemen........................................................
Revenue
(note 1)
A
-
International Mail (note 2)................................
1,794.4
Total Mail...........................................................
66,667.8
Special Services:
Registry .........................................................
Certified ........................................................
Insurance.......................................................
COD ...............................................................
Money Orders (note 2)..................................
Stamped Cards (note 5)................................
Stamped Envelopes......................................
Special Handling...........................................
Post Office Box.............................................
Other (note 2)................................................
Total Special Services...............................
Miscellaneous items (note 2)....................
Total Mail and Services....................................
57.9
600.6
125.6
9.3
226.5
2.4
18.6
10.3
791.5
568.2
2,410.9
720.2
69,799.0
Appropriations: Revenue Forgone..................
Total Operating Revenue.............................
Investment Income...........................................
Total (note 3).................................................
109.2
69,908.2
84.6
69,992.8
(in millions)
Incremental
Cost
(notes 2 & 4)
B
Volume
Variable Cost
(note 2)
C
55.6
55.6
1,504.9
1,423.7
80.3
419.8
110.2
8.7
233.5
1.6
10.5
9.7
574.5
1,845.6
-
(per piece)
Marginal Contribution
Cost
Cost $
$
Coverage
(note 2)
(note 2)
(note 2)
E
(D-E)
(D/E)
0.684
N/A
2.105
1.671
$0.435
126.04%
37,913.2
0.315
0.179
0.136
175.84%
80.3
398.6
109.8
8.7
156.6
1.6
10.5
9.7
553.0
322.6
1,651.5
39,564.7
11.249
2.300
2.435
6.187
1.255
15.593
1.526
2.129
5.827
0.868
(4.345)
0.774
0.307
0.361
0.387
72.14%
150.67%
114.41%
106.19%
144.60%
0.00%
39,564.7
All Other Costs..................................................
28,983.0
Total Costs (note 3)......................................
68,547.7
See accompanying notes.
Revenue
$
D
.
2
SUMMARY OF REVENUE AND COST FOR MAJOR SERVICE CATEGORIES
Base Year 2005
VOLUME STATISTICS
Classes and Sub-Classes of Mail
(note 1)
Pieces
(thousands)
Weight in
Pounds
(thousands)
Weight per
Piece
(ounces)
Cubic Feet
(thousands)
Weight per
Cubic Foot
(pounds)
First-Class Mail:
Single-Piece Letters................................
Presort Letters.........................................
Total Letters.........................................
Single-Piece Cards..................................
Presort Cards...........................................
Total Cards...........................................
Total First Class...............................
43,371,363
49,065,552
92,436,915
2,521,418
3,107,701
5,629,119
98,066,034
2,075,220
2,243,441
4,318,661
16,695
34,411
51,106
4,369,767
0.8
0.7
0.7
0.1
0.2
0.1
0.7
116,339
125,026
241,365
1,118
2,305
3,423
244,788
17.8
17.9
17.9
14.9
14.9
14.9
17.9
Priority Mail..................................................
887,462
1,690,652
30.5
366,770
4.6
Express Mail.................................................
55,475
51,716
14.9
8,204
6.3
Mailgram.......................................................
1,896
0
0.0
0
0.0
Periodicals:
In County..................................................
Outside County (note 2)..........................
Total Periodicals.................................
762,673
8,307,330
9,070,003
252,829
3,772,786
4,025,616
5.3
7.3
7.1
10,090
150,562
160,652
25.1
25.1
25.1
Standard Mail:..............................................
Enhanced Carrier Route (note 2)...........
Regular (note 2).......................................
Total Standard Mail............................
35,023,418
65,918,674
100,942,091
5,615,696
6,040,821
11,656,517
2.6
1.5
1.8
220,838
260,054
480,892
25.4
23.2
24.2
Package Services:
Parcel Post...............................................
Bound Printed Matter..............................
Media Mail (note 2)..................................
Total Package Services.....................
387,800
583,774
193,955
1,165,530
1,915,723
1,361,813
382,579
3,660,115
79.0
37.3
31.6
50.2
381,173
143,492
49,277
573,942
5.0
9.5
7.8
6.4
See accompanying notes.
3
SUMMARY OF REVENUE AND COST FOR MAJOR SERVICE CATEGORIES
Base Year 2005
VOLUME STATISTICS
Pieces
(thousands)
Weight in
Pounds
(thousands)
US Postal Service........................................
621,283
110,675
2.9
16,967
6.5
Free Mail - blind, handicapped &
servicemen...................................................
81,306
34,604
6.8
3,125
11.1
International Mail (note 2)...........................
852,267
241,880
4.5
39,234
6.2
Total Mail......................................................
211,743,347
25,841,541
2.0
1,894,581
13.6
Special Services:
Registry ...................................................
Certified ...................................................
Insurance..................................................
COD ..........................................................
Money Orders (note 2)............................
Stamped Cards........................................
Stamped Envelopes................................
Special Handling.....................................
Post Office Box........................................
Other (note 2)...........................................
Total Special Services.........................
5,149
261,144
51,565
1,499
180,412
0
0
1,736
0
953,212
1,454,718
Classes and Sub-Classes of Mail
(note 1)
See accompanying notes.
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Weight per
Piece
(ounces)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Cubic Feet
(thousands)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Weight per
Cubic Foot
(pounds)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
4
UNITED STATES POSTAL SERVICE
NOTES TO COST AND REVENUE ANALYSIS
Base Year 2005
1. Cost and Revenue Analysis
The U.S. Postal Service (Postal Service) annually prepares the Cost and Revenue Analysis (CRA) covering the period from October 1 through
September 30. The CRA aids us in determining that we are meeting the statutory requirements under Title 39 U.S. Code, that “each class of mail or
type of mail service bear the direct and indirect costs attributable to that class or service….” The CRA presents management’s estimates of the
total and per unit revenue by category of mail or service. It also presents each category’s estimated incremental and marginal costs. These
estimates are considered as one element of the postal rate making process.
The postal system of accounts is the basis for CRA data; however, the postal system of accounts generally does not accumulate financial data by
class and subclass of mail. Apportionment factors, derived from various postal operational and statistical information sources, are required for
development of the data for CRA purposes. Some of these sources (e.g., In-Office Cost System and Origin-Destination Information System Revenue, Pieces and Weight (ODIS-RPW) system) are dedicated to this purpose and involve extensive statistical sampling of postal activity during
the year. We compare and scale calculated amounts to actual data in the postal system of accounts, as appropriate. With respect to the ODISRPW system, calculated sample revenue should approximate a subset of actual Postal Service Trial Balance revenue, but the RPW Reporting
system has been designed to accommodate and adjust for any differences. Although the accuracy of the ODIS-RPW system does not necessarily
depend on how close calculated revenue is to actual revenue, we are investigating reasons for the continuing differences between the two. In
FY05, the Book Revenue Adjustment Factor declined slightly from FY04.
In preparation for the Fiscal Year 2005 CRA, the Postal Service introduced improvements in the design of the In-Office Cost System data collection
instrument. These changes are described in testimony filed before the Postal Rate Commission (PRC).
Some methods we have proposed that have not been adopted by the PRC are still used in the CRA development. For example, we attribute mail
processing costs differently from the PRC, generally assuming that costs vary less than proportionately with volume. The methods employed in
developing CRA data are described in the Summary Description and in testimony we filed before the PRC. These documents are available from
Cost Attribution in Finance.
2. Definitions
Incremental Costs – An estimate of the cost we incur as a result of providing the entire annual quantity of a subclass of mail or service.
Incremental cost of a subclass of mail or service can be determined by estimating the cost avoided by eliminating that particular subclass of
service, assuming that all other products continue to be provided at their current volumes. The purpose of this determination is to indicate
whether the customers of one subclass of mail (or group of subclasses) may be subsidizing (or contributing revenue to) customers of another
subclass of mail (or group of subclasses.)
Marginal Costs – We estimate the marginal cost of a subclass or mail category as the change in cost that results from a small change in its volume
alone, when the volumes of other subclasses or mail categories remain constant.
5
Volume Variable Costs – Volume times Marginal Cost.
Contribution – Revenue per piece minus Marginal Cost per piece. Contribution indicates the rate at which a given subclass offsets all other costs.
Cost Coverage – Revenue per piece as a percentage of Marginal Cost. Unit Revenue/Marginal Cost times 100.
Fees – Fees associated with a specific class or subclass of mail are included in the reported revenue for that class or subclass.
International Mail – International mail includes costs and revenues from both U.S. origin and foreign origin mail and special services. Volume
statistics generally do not include foreign origin mail. Accordingly, the per piece figures on the International line, though indicative of changes
from previous years, do not signify the true unit revenue, cost and contribution.
Other – Other Special Services is a category that includes several cost items such as identifiable costs for return receipts, delivery confirmation,
signature confirmation, merchandise return receipt, business reply, and Forms 3547/3579. The volume and revenues are the same as the RPW
Report’s Delivery Receipt Services.
Miscellaneous Items – Miscellaneous items include philatelic sales, fees, fines, unclaimed money from dead letters, sales of services performed for
government agencies and private contractors. They do not include the $20.9 million in revenue earned from the money order float, which is
included in special services and international mail revenue in the CRA.
Combined Mail Categories – The following mail categories include more than one subclass due to the enactment of Public Law 106-384 (October
27, 2000):
“Outside County” contains Nonprofit Periodicals, Classroom Periodicals and Regular Periodicals.
“Enhanced Carrier Route” (ECR) contains Standard Mail Nonprofit ECR and Standard Mail Regular ECR.
“Regular” contains Standard Mail Nonprofit and Standard Mail Regular.
“Media Mail” contains Library Rate and Media Mail (formerly known as Special Standard.)
3. Miscellaneous Adjustments
A) Mortgage income of $.82 million is included with interest income in the Annual Report and is reported as miscellaneous revenue in the CRA.
(in millions)
Operating Revenue per Annual Report
$69,907
Interest Income per Annual Report
86
Annual Report Revenue
$69,993
CRA Report Revenue
$69,993
6
B) Interest expense on borrowings and deferred retirement liabilities shown separately in the Annual Report are reported as part of the total CRA
Report Expenses.
(in millions)
Operating Expenses per Annual Report
$68,283
Interest expense on deferred retirement liabilities
263
Interest expense on borrowings
2
Annual Report Expenses
$68,548
CRA Report Expenses
$68,548
4. Product Specific Costs
Product specific costs, not included in volume variable costs, represent a portion of the incremental cost of certain subclasses of mail. Though
these costs make up a very small portion of overall costs, they constitute the largest part of the difference between volume variable and
incremental cost for some products. Selected product specific costs are shown below (in millions):
Priority Mail
Express Mail
International Mail
$155.8
82.0
66.9
5. Cards
Volume variable costs are for the printing costs related to stamped cards.
6. Public Law 108-18
On April 23, 2003, Public Law 108-18, the “Postal Civil Service Retirement System Funding Reform Act of 2003” was signed into law. Under this
legislation, the Postal Service reduces the amount paid for certain retirement benefits administered by the Office of Personnel Management (OPM).
The legislation expresses that to the extent “savings” resulting from the Act are attributable to fiscal years prior to 2006, they shall be used to
reduce postal debt and to hold postage rates unchanged. The legislation expresses the sense of Congress that some portion of any anticipated
“savings” after fiscal year 2005 be used to address debt repayment, prefunding of postretirement healthcare benefits for current and former
employees, productivity and cost saving capital investments, delaying or moderating increases in postal rates, and any other matter. Included in
the legislation was the requirement that the Postal Service bear the CSRS cost associated with the prior military service of Postal Service retirees,
a cost previously funded by the U.S. Treasury. The legislation included provisions for the Congress to reconsider whether responsibility for the
cost will be borne in the future by the U.S. Treasury or by the Postal Service. Until provided for by law, the corresponding “savings” accruing to
any fiscal year after 2005 are to be considered operational expenses of the Postal Service and held in escrow, and may not be obligated or
expended.
7
7. Other
All figures in the CRA are rounded and may not add to totals.
Percents are rounded to the nearest decimal.
- Denotes zero values.
( ) Denotes negative values.
8