POSTAL RATE COMMISSION POSTAL RATE AND FEE CHANGES, 2000 i 113 I3 CJ j: i;j’ ‘fi!3 DOCKET NO. R2000-1 MOTION OF UNITED PARCEL SERVICE TO COMPEL PRODUCTION OF INFORMATION AND DOCUMENTS REQUESTED IN INTERROGATORY UPS/USPS-T34-11 TO WITNESS ROBINSON (March 13,200O) Pursuant to Sections 26(d) and 27(d) of the Commission’s Rules of Practice, United Parcel Service (“UPS”) hereby moves the Presiding Officer to order the United States Postal Service (“Postal Service”) to answer interrogatory filed on February 16, 2000, and to produce the documents this interrogatory requested therein. on February 28, 2000 (“Objection”). UPS submits that the requested of an appropriate information is highly relevant to the cost coverage for Priority Mail, and can be provided without undue burden and without injury to the Postal Service’s legitimate THE DISCOVERY Interrogatory UPS/USPS-T34-11 directives, or other documents and how the system operates,” interests. REQUEST requests the Postal Service to identify all systems for measuring the service performance guidelines, A copy of is attached hereto as Exhibit A. The Postal Service filed an objection to the interrogatory determination UPS/USPS-T34-11, of Priority Mail, provide “manuals, which indicate how measurements are made and provide “all results for all such systems for each year (by quarter, if available) from FYI990 through FY1999, and up to the present.” February 28, 2000, the Postal Service objected to this interrogatory it is overbroad, describing that it “would require a burdensome the system, and that the information commercially on the grounds that review and collection” of manuals includes “proprietary, sensitive, geographically-specific On performance data.” confidential, Objection, at 1-2. ARGUMENT As we show below, the Postal Service’s objections Nevertheless, in an effort to narrow the scope of this discovery dispute, UPS is willing to limit its request to (1) national “geographically-specific” if available). are without merit. service performance results (i.e., excluding results) and (ii) the period from FYI993 Given the importance value of service considerations, to FYI999 of actual service performance (by quarter, data in evaluating the Postal Service should be ordered to produce this information. 1. The Interrogatory, Overbroad. Especially as Modified Herein, Is not The Postal Service asserts that UPS’s request for data on the actual service performance of Priority Mail is overbroad “insofar as it requests performance for years prior to the years at issue in this case. .” Objection, information at 1. As stated above, UPS is willing to limit its request to quarterly data for the period FYI993 (as opposed to FY1990, as specified in the original request) through FY1999. Data prior to the base year in this case is required if the Commission and the parties are to be able to compare Priority Mail’s current performance -- one aspect of value of service -- to its performance decision in Docket leading up to the Commission’s 2 No. R97-1, where the Commission cut Priority Mail’s cost coverage from 197% -- the level set in Docket No. R94-1 -- to 166%. Recommended Docket No. R97-1, Opinion and Decision, App. G, at 32 (Revised S/19/98). The Commission’s action was based in part on the view that one witness’ “analysis of delivery performance suggests that Priority Mail often fails to provide a standard of service superior to, or at times even equal to, that of First-Class Priority Mail’s actual performance FYI996 Mail.” Id. at 363. Clearly, then, a history of from FYI993 (the base year in Docket No. R97-I), year, is highly relevant to the determination (the base year in Docket No. R94-1) to and from FYI996 of an appropriate through the most recent cost coverage for Priority Mail in this case. Accordingly, is not “overbroad,” 2. UPS’s modified request for data covering FYI993 through FYI999 and the Postal Service should be ordered to respond. The Requested Burden. Information Can Be Provided Without Undue The Postal Service asserts that to produce copies of the manuals or other documents that describe how Priority Mail performance “burdensome.” is measured would be Objection, at 1. The Postal Service does not “state with particularity the effort which would be required to answer the request, [or] provide[ ] estimates of cost and work hours required,” as is required in the case of an undue burden objection. Rules of Practice, Rule 26(c), 39 C.F.R. 5 3001.27(c). That is undoubtedly because the cost and work hours involved in locating and copying a manual (or possibly manuals) on how the measurements are made is minimal. The Postal Service’s undue burden objection is nothing more than a frivolous red herring. It is unlikely that the Postal Service has such a plethora of systems for 3 measuring Priority Mail performance be an undue burden. any new calculations. already available. 3. that providing the manuals for each system would This interrogatory does not require the Postal Service to perform It merely asks the Postal Service to collect information The Postal Service should be ordered to do so. Priority Should Mail Service Performance Not Be, Confidential. Information Is Not, and Finally, the Postal Service objects that the requested This objection apparently information information refers only to “geographically-specific” (although the Postal Service has not responded is confidential. performance to the extent it deems the interrogatory to be proper, see Rule 26(c) (“If objection is made to a part of an interrogatory, that part shall be specified”), its entirety). that is but rather has objected to the interrogatory Objection, at 1. The Postal Service’s confidentiality claim is mystifying. apparently publicizes on a regular basis PETE information See Exhibit B (copies of Postal Service newsletters).’ The Postal Service on Priority Mail performance. The newsletters attached hereto as Exhibit B were available free to the public in the lobby of the Postal Service’s Washington, D.C., headquarters. performance information. (for the Colorado/Wyoming Priority Mail See, e.g., Exhibit B, 3 Rocky Mountain Summit No. 8, at 1 Performance Overnight, and 2-day performance 1. Each contains “geographically-specific” Cluster, containing PETE Combined, data); 3 Long Island Dispatch No. 3, at 1 (for the PETE stands for Priority End-to-End Measurement System. See response to interrogatory DFCIUSPS-49 (inadvertently marked as DFCAJSPS-T34-49) (March 2, 2000) (“Carlson 49”). 4 in Long Island Performance Cluster, containing PETE “1-2 day” performance data for Long Island. NY Metro Area, and National); Triboro Voice No. 22, at 1 (for the Triboro Performance Cluster, containing PETE “Composite” performance data for Triboro, NY Metro Area, and National); 2 Fort Worth News No. 12, at 1 (for the Fort Worth Performance Cluster, containing PETE “2 days” performance 1999. See also response to interrogatory data), all dated August Carlson 49, in which the Postal Service provides a copy of a brochure entitled, “PETE Priority End-to-End System.” Measurement The Postal Service has also provided without objection Priority Mail performance information DFCKJSPS-T34-8 derived from the ODIS system. See Response to Interrogatory (February 252000). The Postal Service also refers to PETE data in its communications public. See, e.g., Comprehensive (‘Service performance, as measured a higher percent of intra-Priority two days when compared volume.“) by Priority End to End (PETE), consistently of Priority Mail performance actual performance the Postal Service’s public distribution posed by Mr. Carlson. information that the Postal Service’s confidentiality any claim of confidentiality. shows Network volume is delivered to our customers within Even if geographically-specific confidential, 1998, at 48 with the national rate, excluding all Priority Mail Network These publications Service demonstrate Statement on Postal Operations to the general claim is spurious. data were deemed to be of such data constitutes Indeed, the Postal Service answered See responses to interrogatories 5 a waiver of similar questions DFC/USPS-T34-8 (February 25, 2000) and to Carlson 49. The Postal Service apparently standard approach which leads it to take inconsistent by the Postal has a double- positions with respect to different intervenors -- here, Mr. Carlson on the one hand, and UPS on the other. All intervenors, competitors and mailers alike, stand on the same footing in a rate case. The bottom line is that no matter who asks for the information, it either is confidential, or it is not. Finally, it is curious for the Postal Service to take the position that data it already has on the performance of a service that it sells to the public is no business of the public. As we have shown, the Postal Service does not treat as confidential “geographically-specific” Priority Mail actual performance UPS is willing to forego “geographically-specific” performance information. Nevertheless, data and to accept solely national data for the period requested. WHEREFORE, Service’s objections United Parcel Service respectfully to interrogatory UPS/USPS-T3C11 requests that the Postal to Postal Service witness Robinson be overruled, and that the Postal Service be ordered to produce the information and documents requested in that interrogatory, Respectfully c\/& as modified herein. submitted, <-g ~-JI$ ~-5Y<<A ;/ John E. McKeever William J. Pinamont Phillip E. Wilson, Jr. Attorneys for United Parcel Service Piper Marbury Rudnick &Wolfe 3400 Two Logan Square 18th & Arch Streets Philadelphia, PA 19103-2762 (215) 656-3310 (215) 656-3301 (FAX) and 1200 Nineteenth Street, NW Washington, DC 20036-2430 (202) 861-3900 LLP Of Counsel. 7 BEFORE THE POSTAL RATE COMMISSION POSTAL RATE AND FEE CHANGES, 2000 : DOCKET NO. R2000-1 INTERROGATORIES AND REQUEST FOR PRODUCTION OF DOCUMENTS FROM UNITED PARCEL SERVICE TO UNITED STATES POSTAL SERVICE WITNESS ROBINSON (UPS/USPS-T3C11 and 12) (February 16, 2000) Pursuant to the Commission’s serves the following interrogatories Rules of Practice, United Parcel Service hereby and request for production United States Postal Service witness Robinson: of documents UPS/USPS-TM-l Respectfully directed to 1 and 12. submitted, William J. Pinamont ’ Phillip E. Wilson, Jr. Attorneys for United Parcel Service Piper Marbury Rudnick & Wolfe LLP 3400 Two Logan Square 18th & Arch Streets Philadelphia, PA 19103-2762 (215) 656-3310 (215) 656-3301 (FAX) and 1200 Nineteenth Street, NW Washington, DC 20036-2430 (202) 861-3900 Of Counsel. Exhibit A INTERROGATORIES OF UNITED PARCEL SERVICE TO UNITED STATES POSTAL SERVICE WITNESS ROBINSON UPS/USPS-T3C11. (a) Does the Postal Service have a system or systems for measuring the actual service performance of Priority Mail, whether that performance measured in terms of actual days to delivery, extent to which actual performance service standards, measure? time-in-transit, meets time from collection to delivery, or any other If so, identify all such systems, provide descriptions manuals, guidelines, is directives, or other documents are made and how the system operates), of them (including any which indicate how measurements and provide all results for all such systems for each year (by quarter, if available) from FY 1990 through FY 1999, and up to the present. (b) Please identify and describe the Postal Service system known as, or as identified by the acronym of, PETE. UPS/USPS-T34-12. attachment Refer to Attachment A. which is the Co,mpensation to Contract Postal Unit Contract No. 363199-99-U-0158, year contract beginning relating to a two- on November 7. 1998, to operate a Contract Postal Unit (“CPU”) for the Postal Service. The Compensation attachment states that the CPU operator “will be paid 20% of the postal funds it receives and remits for the sale of domestic Priority Mail and domestic Express Mail,” and “5% of the postal funds it receives and remits for the sale of all other postal products and services” that are subject to the contract. (a) Are the full amounts paid by the Postal Service to the CPU operator under such contracts for the sale of Priority Mail attributed solely to Priority -l- . INTERROGATORIES OF UNITED PARCEL SERVICE TO UNITED STATES POSTAL SERVICE WITNESS ROBINSON Mail? If so, indicate how and where this attribution is reflected in the Postal Service’s presentation in this proceeding. (b) Are the full amounts paid by the Postal Service to the CPU operator under such contracts for the sale of Express Mail attributed Mail? If so, indicate how and where this attribution presentation solely to Express is reflected in the Postal Service’s in this proceeding. (4 In what cost segment and component the Postal Service to CPU operators are the payments made by under such contracts recorded in the case of Priority Mail? Identify all accounts in which such payments on account of Priority Mail are recorded. 63 In what cost segment and component the Postal Service to CPU operators are the payments made by under such contracts recorded in the case of Express Mail? Identify all accounts in which such payments on account of Express Mail are recorded. (e) In what cost segment and component the Postal Service to the CPU operators other postal products? are the payments made by under such contracts recorded in the case of Identify all accounts in which such payments on account of other postal products are recorded. 0-I Provide separately for BY 1998 and FY 1999 the total amount of payments made by the Postal Service under such contracts for the sale of Priority Mail. -2- INTERROGATORIES OF UNITED PARCEL SERVICE TO UNITED STATES POSTAL SERVICE WITNESS ROBINSON (9) Provide separately Service’s estimates of the total payments for FY 2000 and for the Test Year the Postal it will make under such contracts for the sale of Priority Mail. W Provide separately for BY 1998 and FY 1999 the total amount of payments made by the Postal Service for such contracts for the sale of Express Mail. 0) Provide separately Service’s estimates of the total payments for FY 2000 and for the Test Year the Postal it will make under such contracts for the sale of Express Mail. 0’) Provide separately for BY 1998 and FY 1999 the total amount of payments made by the Postal Service under such contracts for the sale of all other postal products. (k) Provide separately Service’s estimates of the total payments for FY 2000 and for the Test Year the Postal it will make under these contracts for the sale of all other postal products. 0) How many such contracts with a “Performance structure (see the attachment) attachment Payment Rate” that is the same as or similar to that reflected in the (i.e., where payments are made to the CPU operator on the basis of a stated percentage of the funds received for the sale of Priority Mail and/or Express Mail at a rate higher than for other postal products) are currently in effect? -3- INTERROGATORIES OF UNITED PARCEL SERVICE TO UNITED STATES POSTAL SERVICE WITNESS ROBINSON (m) Provide the total amount paid by the Postal Service under all such contracts since the inception of this program up to the present, separately Mail and for Express Mail. -4- for Priority ATTACHMENT 4 - COMPENSATION . CONTRACT STATION/CONTRACT BRANCH/COMMUNITY POST OFFICE The supplier agreesto operatea CONTRACT POSTAL UNIT and will receive performancebasedpaymentsas set out below: Performancepaymentswill be made in arrears,by the St. Louis Accounting Service Center within 2 I days after the end of eachPOStal Ac6ounting Period(a twenty-eight day period beginning on a Saturdayand ending on a Friday comprising two designatedtwo-week postal pay periods) except that payment for Accounting Period 13 shall be madewithin 28 daysafter irs end. Performance Pavment Rate PelfomlancePaymentratesare as follows: Th: Supplier will be paid 20% of the postal funds it receivesand remits for the sale of domesticPriority Mail and domesticExpress Mail. The Supplier will be paid 5% of the postal funds it receivesand remits for the saleof all other postal productsand servicesthat are checkedin SectionII of Attachment 1. 24 Attachment A CERTIFICATE OF SERVICE I hereby certify that I have this date served the foregoing mail, postage prepaid, in accordance document with Section 12 of the Commission’s by first class Rules of Practice. Phillip E. Wilson, Jr. ! Attorney for United Parcel Service Dated: February 16, 2000 Philadelphia, Pa. Entries mountasperformance climbs AP 11 Parlomwnce Cluslter Stats SERV?ZE QUARTERS 3 A-4 Aad SPLYGad Don’t miss your last chance to enter grand prize drawing Y N M W 0 T II N A T R F E R A A G N I I. C Y C Y T C E T R 0 A K E ” D B R A N R I M 0 a C A R E ” c I A T 0 S E I R E V 0 A Y T R S N T V I, V I 1 A II a 0 F S C R N 0 L. E R E A C II E D E 0 P E N T E C Y C I, E S R N D E v 0 Ii P M I 0 V D G G T N E hI E V E I .II C A A P G A II M S T N A I, C Exhibit G B Yes! I know my goals! : LoNGIi~k~3hti for LONG ISLAND PERFORMANCE CLUSTER EMF’LOYEB Auousr 1999 Vol. 3 No. 3 7~~~~~~speedgoesbeyond themail -a District’s Letter carrier’s tourney benefits Leukemia Society All employees are invild 10 participate in the fm annual VCP Golf Classic at Mcdfdr Mill FG3 GolfClubonOnl. ckgmbd by Valley Swam Law Carrim Glenn Fern u) honor hi hther.UWiICdNYCpoli~manwholos, hirrigh,lolatkemiaddshispmycar.Ur wlmMe0t.r prc.xe& will bencflt the Leukemh sdl of America The Oolf Fxckkge la fl2.5. while * dbmer-xlly package is $35. ckecks. payable to V(F CkSf Classic, thould t-z sent by Se& IS IO: Vff Golf Classic.doGlamRFeru.1333Labard coun, “ninndak NV ,,553. For “WR h?fomlation, call 483-5081. “Plasebclp us make lida a IYcceP~ ful and enjoyable cvcn,,” Fuu says. 92.72 9228 93.09 93.0 92.0 92.0 2-3Day 89.75 9931 87.17 Goal 88.9 86.9 %.O l-2my 99.97 99.95 85.38 Goal 88.9 86.9 85.0 b.SE OF USE (API,) -id Lmg Island e&9 lbd 564 EXFC Lcng ISlard NY Ma-0 Area Nalbml PETE Long ISland NY M&m Area National Porral runner John Dcl- Runnereirr lo beaf the 9OdeSree heat. Performance cluster Stats Quarter 4 through July 30 Ovemlght Goal EXFC Long island NY Mebn Area Nalbmal llte Postal Sewice’s men’s and women’s teams each of 290 finished immesrivcl” - lbird Coordinated by Mid-Island ET Rich Ripke and Syosw’s Posmustcr Jack Fermm and VOMA Mii Fisher. ~ Doslal team fielded 110 mmws M in&se of 40 panicipants oyer Ias, year. With tirclcss support from Syosrc,‘s Norman Dorf. and MidIsland’s John Wcider and Allison Scheno. the Postal Service *earn hopes IO grow 10 become the Barges, of all pardcipadng companies. This was nat only II 3.5.mile race. *is was a gathering of all crafts tunnhw tomher in unily. a date to meet cmdowcs and dxir famili& f& all over l&~lrland:’ said W&&c Supervisor lamer Casella This is jus, our d&d year panicipating. Give us a few more years and all you will see is the Poslal E&e: Ripke added. P&DCs’ driveraises nearly $15K forACS Mid-IslendlWencm Nassau’s annual Combined Federal Campaign (CFC) drive ,o benefit the American Cancer Society (ACS) brougb, in close to SI5,wO for tbz -d conscc~d”~ year. The wall for the last three years is 537,COJ to help fnd a myriad of wonbwhile ACS proSrams. Senior Plan, Manager Timorhy C. Healy prcmkd the check to Guy Bud, cxceutivc vie president A& Long Island di”isica. a, a June 22 gadxring of drive organiurs. “I want to onnk you all for dw fanmstic job you did will dx cancer drive this yean I, was another fw year for us and you’re the ona who made i, happen,” Heady raid. “In UK last momb. thne of our employees were diagnosed wirh cancer.,. Al, the people we help WillI this DEUVERV CCMRMA~ON (APII, AC,“.l 00.1 Long Island SAFETY 95.1 loo trm ~lmuph,130) 1dY.l co., mv F~ma,rn,rn~, ‘.95 Yot~vlhlcybmbr4* IO.61 Il.,3 lww+wnaprwcwoYnrr) Employees answer Aonkonkoma PO‘artgallery’ Western Nassaugetsnew ....I...............w........ ‘Questionot theMonlh’.**...*. plantmanager ~......,,I.............,. Inaugurated 2 2 3 money will *ppnxials your efforts.” “Nobody wants 10bear the words ‘Yw have cancer: but if you hear those words early enough... that’s what saves li”es today,” Bud said. “Early dewdon Icads to early ucamncn‘” Hcaly added: “Thiscffon couldn’, have been possible wi,hwr Ihe work of al, the “olunreerr who continue 10 sup pord the CFC effom in both our p,an,s the leaden in CFC etTorts among all federal agencies hem on Long Island. 7bc dcdicadon and commi,menl *ha, postal employees have shown in sewing ,he people of Long lrland So far beyond just processing and delivering ,he mail. is demans,ra,ed by this recent campaign,” he said. I,1 Districi g&s up for this year’s Combined Federal Campaign This year’s Combined Federal Campaign will be Setting “ndenuay in Sep ,embu. “We look for ,he conrinucd suppo” of a11emplayccn so we can help dlow less fonunate ,hanouncl”cs:‘Hcalysid. RalphKoosdrawsfive postmasters toSyosaet........... 4 I T~OROVOICE N.i forTRIBOROPERFORMANCECLUSTEREMPLOYEES AUGUST. 1999 ISSUE NUMBER 22 ‘Aquarium fish’unveiledat IVYAquarium! On Thursday. July Is,, the Tribe Dirtricr unveiled ,be gorgeous ‘Aquarium Fish sramps a, ,he NY Aquarium a, Coney Irlmd. Brooklyn. The location was a nawral as the Rsh and coral reefs &pitied on ,l,e rlampssrerlw,o”dirplsyr,he Aquari”m.T?8ere were aIs0 majerlic Beluga Whaler. fierce sharks. adorable penguins, manta rays. giant rurtlcr and many more marine animalr *hat fomadPw”detiulb&ckdmpdmpGo his interesting nnd fun eve”,. A lktlc rain and humidiry did “0, in- imporU”t mmmunily au,rueL Will be in the lxxl Trf6om “o&e. even, blessed day m remem- babysit go, backed in i A~aa 0” the fin, nom apar,men1 in the house rhe h&e-or on my blcck 10 ask for help. I sppmpched our mailman. he PcdI of Jamaica’s Wccdbavc” Sra,ion. He immediately cane m our rescue. Petit fus, lalked 10 dx liltle girl Lo calm her down. saying: ‘Ewyibblg i* al, light. WCM ping 10 get dlc door opened.” 7%~ only option m ge, in dw apaame”, was to enter tbmugh the window. and he did. Afwr tie dirmss. VICwere calm again when dac dmr was opened. Mr. Peti1 is a hem and we M forever dmhankfu,,o him, Our neighbmhmd needs more people like Mr. Petit. Mot-c than I dzdicati mailman. he hm dcmonsvrvd ,o be a good samaim. Hedeserves a medal forwha, he did a”d we commend it. can Women on Tour (AAWOT) Conference. The conference provides a forum for uplifting. empowering pnd enhancing the quality of life fpr Africa” American ~ womch their families and communities thmugh economic. i”lellsc,d ,“d spiritual dsvclopmsn,. I” its “in,,, year. the nation’s forcmos, Black WO”,C”*Eempowerme”, conference mcorpmler the mkxalion of P rareat vii* the infomntivc seminars gcncrdly found at nationa! c”“ve”,io”s. and brings ,hcm logerber in a” environme”, which celcbra,cr cultwe : and womnnhwd. Cues, speakers included ALlallah Sbabau. social aclivis,; Bsv Smith. radio personality; and Dr. Joccly” I E’&n.formcr”SSurgm”Ce”crpl. : ‘Ibe U.S. Postal Service has a proud legacy of cotilmen,, Auwsr, 1999 forFomwoF3HPERFoRMANcEcLsJ~EMPm~ Struggling Vol. 2 No.12 to cope with no-fee Loss of revenue takes bite out of bottom line for rural post offices Cottlesrecoanizeci forcommunity service MORAh=W;cmMyOdtSMnallcanmurr ities cross the Oxal Plains. the town of Mann has a dwindling population in m,m of peple. But not in terms of nonrcsidcat vacant lots and neglected iuch of Air free time in hforan mowing grw,pabldng~rildings.planlingnower.. hauling way d&is. rating buildings aLldr.“cnrssloringmr~~dons for Ibe lawn aueeu. For their effort, the Moran Masonic Lodge ,wl; primed each with the ‘Community BuikJu*wrd.” &el$The ‘&duty series: The19208.*...“....,,.,.-.............. 4 CERTIFICATE OF SERVICE I hereby certify that I have this date served the foregoing document mail, postage prepaid, in accordance with Section 12 of the Commission’s by first class Rules of Practice. iqJ!z~ ‘f‘ , *.,“z;>.., Jihh E. McKeeGer Attorney for United Parcel Service Dated: March 13,200O Philadelphia, Pa. 60209
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