RECEIVEI)
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, DC 20268
JIJW
9 3 26
f'd '00
POSTllGTi C'?i!i:;.:Ll!:,H
OFFICE
oi :!ii SECFT~TAR~
Docket
POSTAL RATES AND FEE CHANGES
No. R2000-1
RESPONSES OF WITNESS LAWRENCE G. BUC FOR
THE CONTINUITY SHIPPERS ASSOCIATION
THE DIRECT MARKETING ASSOCIATION
THE ASSOCIATION FOR POSTAL COMMERCEAND
THE PARCEL SHIPPERS ASSOCIATION
TO THE INTERROGATORIES OF
THE UNITED STATES POSTAL SERVICE
(USPS/CSA-~1-1)
The Continuity
Association,
Shippers
the Association
Shippers
Association
Lawrence
G. But to the
States
Postal
Service:
Each interrogatory
the
hereby
Association,
for
Postal
provide
following
Direct
Marketing
Commerce and the
responses
of witness
interrogatories
of the
USPS/CSA-Tl-1,
is stated
the
filed
verbatim
on May 26,
and is
Parcel
United
2000.
followed
by
response.
Dated:
June 9, 2000
Respectfully
pso-~
Submitted,
l4owNdk
&
Aaron Horowitz
200 Corporate
Woods Parkway
Vernon Hills,
IL
60061-3167
(847) 913-3360
Attorney
Shippers
for the Continuity
Association
Please
USPS/CSA-Tl-1.
estimates
of BPRS mail
RESPONSE:
provide
all calculations
used for your
processing
and transportation
costs.
See spreadsheet
attached.
BPRS Weighted
Average Mail
Processing
Modeled Cost
Proportional
Adjustment
111
[?]
[z]
[4)
[5]
PI
USPS-T-26. Attachment
USPS-T-26, Attachment
USPS-T-2S. Attachment
Tr. t3/5204 (Eggleston).
Fixed CRA Adjustment
for Special Standard
[31 = F1’121
1.042
0.345
$
CRA
Factor
BPRS Weighted
Average Mall
Processing
Modeled
Cost (w/ ProportIonal
CRA Adjustment)
$
141
0.359
Ratio of BPRS Modeled
Mail Processing
cost
to Special Standard
Modeled Mail
Processing
cost
(51
0.211
70%
Unit Transportation
cost Difference
Between Intra-BMC
and Inter-BMC Parcels
Eggleston Assumption
of Percentage of BPRS
Parcels that are InterBMC Parcels
$
T at 1.
P at 1.
T at 1.
[7] Tr. 13/5122 (Eggleston).
[6] USPS-T-26 at 35.
[9] CSA-T-1 at 5.
Inter-BMC BPRS
Average ZoneRelated
Transportation
Cost Differential
Reduction In Unit
BPRS Costs
121
111
$
Percentage of
BPRS Parcels that
are Inter-BMC
Parcels
0.031
11, CSA-T-1, Attachment A, Table 3.
[2] CSA-T-1 at 5.
[4] Tr. 13/5122 (Eggleston).
[5] USPS-T-26 at 35.
[S] USPS-T-26 at 40.
131= m21
91.9%
$
PI
[41
0.028
$
0.276
95.2%
BPRS Fixed CRA
Adjustment
$
PI = [41*[51
0.148
Cost Savings
Differential Between
Eggleston and CSA
Estimate of Inter-BMC
Percent
Mail Processing
Cost
Difference Between
Intra-BMC and InterBMC Parcels
Eggleston Assumption
of Percentage of BPRS
Parcels that are InterBMC Parcels
Percentage of BPRS
Parcels that are InterBMC Parcels
VI
PI
171
$
0.087
Total Transportation
Unit Cost Savings
161= ([41*[51) - 1[41’[21)
0.009 $
$
171= 131+~61
0.038
95.2%
91.9%
USPS Transportation
Unit Cost
CSA Transportation
unit cost
WI
$
WI = WI71
0.423
$
0.385
Cost Savings Differential
Between Egglaston and
CSA Estimate of InterBMC Percent
BPRS Unit Mail
Processing
Cost
[II] = [3]+[6]-[10]
[lOI = ([71*[~1) - (I7lw
$
0.003
$
0.504
DECLARATION
Lawrence
perjury
that the
interrogatories
information
and
I,
Dated:
G. But,
answers
are true
belief.
June 8, 2000
do hereby declare
under penalty
of
to the foregoing
Docket No. R2000-1
to the best of my knowledge,
L
Lawrence
At&L-L
G. But
CERTIFICATE
OF SERVICE
I hereby certify
that I have this day served the foregoing
document upon all participants
of record in this proceeding
having requested
service
of discovery
documents in accordance
with Section
12 of the rules of practice.
Dated:
June 9, 2000