Postal Rate Commission
Submitted 5/6/2005 3:58 pm
Filing ID: 43977
Accepted 5/6/2005
BEFORE THE
POSTAL RATE COMMISSION
WASHINGTON, D.C. 20268B0001
POSTAL RATE AND FEE CHANGES
PURSUANT TO PUBLIC LAW 108-18
Docket No. R2005B1
RESPONSE OF THE UNITED STATES POSTAL SERVICE TO
PRESIDING OFFICER’S INFORMATION REQUEST NO. 2
(May 6, 2005)
The United States Postal Service hereby provides the responses to
Presiding Officer’s Information Request No. 2, issued April 22, 2005. The
response to question 15 is forthcoming.
Each question is stated verbatim and is followed by the response.
Respectfully submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr.
Chief Counsel, Ratemaking
_______________________
Keith E. Weidner
475 L'Enfant Plaza West, S.W.
Washington, D.C. 20260–1134
(202) 268–6252; Fax –3084
RESPONSE OF POSTAL SERVICE WITNESS KELLEY TO
POIR NO. 2, QUESTION 1
1. This question concerns the calculation of unit delivery costs for Periodicals
Outside County subclass. In Docket No. R2001-1 these costs were developed in
USPS-LR-J-117, worksheets “Table 1” and “summary TY” and appeared in
USPS-LR-J-107 worksheet “Discounts.” The library reference corresponding to
USPS-LR-J-117 and using the Commission’s methodology is USPS-LR-K-101.
Worksheet “summary TY” of USPS-LR-K-101, however, does not contain the
calculations appearing in cells C124 to H137 of USPS-LR-J-117. These
calculations provided the carrier costs appearing in cells D33, D59, D60, and
D61 of worksheet “Discounts” in USPS-LR-J-107 for Outside County Periodicals.
Please examine the following table and confirm that it contains the values that
correspond to those in cells C124 to H137 of worksheet “summary TY” of USPSLR-J-117. If you do not confirm, please provide the correct values and explain
fully their derivation. Please note that the table in USPS-LR-J-117 did not
contain line and column titles. Please provide them.
2,338,199
2,165,011
664,626
4,229,835
112,666
209,869
29,485
184,392
112,666
209,869
29,485
184,392
0.0482
0.0969
0.0444
0.0436
9,397,672
536,413
536,413
0.0571
14,167,185
1,907,304
11,003,920
874,601
89,336
452,015
874,601
89,336
452,015
0.06173
0.04684
0.04108
27,078,409
1,415,952
1,415,952
0.05229
1,952,365
1,952,365
112,666
209,869
29,485
184,392
536,413
874,601
89,336
452,015
1,415,952
0.0482
0.0969
0.0444
0.0436
0.0571
0.0617
0.0468
0.0411
0.0523
RESPONSE:
Confirmed. The above table contains the LR-K-101 the values that correspond
to cells C124 to H137 of worksheet “summary TY” in USPS-LR-J-117. The
following table provides the line and column titles for the LR-K-101 values.
RESPONSE OF POSTAL SERVICE WITNESS KELLEY TO
POIR NO. 2, QUESTION 1
USPS-LR-K-101, Sheet “summary TY,” BY04 ECR Unit Costs
Total
Cost
($000)
Total
Cost
($000)
2,338,199
112,666
112,666
0.0482
112,666
0.0482
2,165,011
209,869
209,869
0.0969
209,869
0.0969
Adj TY Volume
(000)
Total Unit
Cost
($0.0000)
Total
Cost
($000)
Total Unit
Cost
($0.0000)
ECR Basic Auto
Letters
ECR Basic
Letters
ECR High
Density Letters
ECR Saturation
Letters
664,626
29,485
29,485
0.0444
29,485
0.0444
4,229,835
184,392
184,392
0.0436
184,392
0.0436
Total ECR Letters
9,397,672
536,413
536,413
0.0571
536,413
0.0571
14,167,185
874,601
874,601
0.06173
874,601
0.0617
1,907,304
89,336
89,336
0.04684
89,336
0.0468
11,003,920
452,015
452,015
0.04108
452,015
0.0411
27,078,409
1,415,952
1,415,952
0.05229
1,415,952
0.0523
1,952,365
1,952,365
ECR Basic
Nonletters
ECR High
Density
Nonletters
ECR Saturation
Nonletters
Total ECR
NonLetters
Total ECR, All
Shapes
RESPONSE OF THE UNITED STATES POSTAL SERVICE TO
POIR NO. 2, QUESTION 2
2. Please provide total attributable costs by shape for Standard Mail and the
electronic spreadsheets showing the development of these costs. The
equivalent spreadsheets were filed as LR-J-199 containing file LR-J199STDCBS_prc in Docket No. R2001-1. Please use the PRC costing
methodology reflected in the Commission’s decision in Docket R2001-1.
RESPONSE:
Please see USPS-LR-K-119, a Category 4 library reference, and USPS-LR-K120, a Category 5 library reference, both filed today.
RESPONSE OF THE UNITED STATES POSTAL SERVICE TO
POIR NO. 2, QUESTION 3
3. Pages 13-14 of the word document file LR-K-99 contain a discussion of two
changes to the methodology for computing mail processing unit costs by shape.
a. The first change concerns a modification to a calculation that uses the
“final” reconciliation factor. A comparison of the cell formula contained in
Excel file shp06prc, sheet “Letters (3)” in LR-K-99 with the corresponding
cell formula in Docket No. R2001-1, LR-J-81, Excel file shp03prc, sheet
“Letters (3)” shows no apparent difference in the calculation methodology.
Please describe the difference in more detail showing the difference in the
calculation.
b. The second change concerns a methodological modification that is used
to shift flat costs from a combined pool of flat and parcel costs to a flats
only cost pool. The adjustment is required because of the DMM/RPW
definition of a flat. Is there a mismatch between the definition of shape in
the IOCS and the DMM/RPW definition of a flat?
c. This procedure is applied only to Standard Regular mail. Why does it only
affect Standard Regular and not ECR or any other subclass with both flats
and parcels? Please provide a more detailed rationale for this adjustment.
RESPONSE:
Initially, simply to clarify, the “two changes” apparently intended to be addressed
in this item are referenced on pages 12-13 of the Word document, rather than
pages 13-14. Alternatively, in the hard copy preface, they appear on pages v
and vi.
(a) The first change is not a methodology change, but rather one of the two
changes made to adjust the results in Letters (3), Flats (3) and Parcels (3) sheets
to obtain the respective Letters (4), Flats (4) and Parcels (4) sheet. The first
change is identical to the calculation done in Docket No. R2001-1, LR-J-81, as
indicated in the question. The second change is both a change/adjustment to the
results in Letters (3), Flats (3) and Parcels (3) sheets to obtain the respective
Letters (4), Flats (4) and Parcels (4) sheet and also a methodology change.
(b) Yes, this second change, a methodology change, is prompted by a mismatch
between the DMM/RPW and IOCS on the definitions of flats and parcels. IOCS
RESPONSE OF THE UNITED STATES POSTAL SERVICE TO
POIR NO. 2, QUESTION 3
defines flats as having a maximum thickness of 3/4th inch (See Docket No.
R2000-1, USPS-LR-I-14, page 12-10). This corresponds to the DMM’s general
flats definition provided at DMM 301.1.1, which also provides for the same
maximum thickness. However, Automation rate flats can be up to 1 1/4th inch
thick as provided under 301.3.4.2. Thus the inconsistency occurs for flats
automation rate pieces that are between ¾ th and 1 ¼ th inches thick. Such
pieces would be treated as parcels by IOCS, but the RPW counts such pieces as
flats. This is also discussed in the testimony of witness Smith, USPS-T-13, at
pages 60-62.
(c) This procedure is only applied to Standard Regular rather than ECR because
ECR doesn’t have automation rates for flats. It is possible that First-Class and
Periodicals presort flats may be subject to the same inconsistency. The focus on
Standard Regular is due to the volumes for First-Class and Periodicals presort
parcels are relatively small and due to the need to support the parcel rate
surcharge for Standard Mail.
RESPONSE OF POSTAL SERVICE WITNESS TAUFIQUE TO
POIR NO. 2, QUESTION 4
4. In the billing determinants for Standard Regular, there is a line item for
Standard mail paid at First-Class/Priority rates. Please discuss what this
represents. Why is this revenue assigned to Standard Regular rather than FirstClass or Priority Mail?
RESPONSE:
Standard Mail has no single piece rates. A mail piece bearing Standard Mail
markings that does not meet the eligibility requirements for any of the Standard
Mail bulk rates is charged either the First-Class Mail single piece rate or Priority
Mail rate, as applicable, depending on the weight of the piece. Often such pieces
are residual pieces that are left over after all possible presorted bundles or
containers are made up. Although these pieces pay the higher rate, they bear
Standard Mail markings, are treated and counted as Standard Mail, and receive
Standard Mail service. Since these pieces are treated as Standard Mail for all
purposes except payment of postage, their revenue is counted as Standard Mail
revenue.
RESPONSE OF POSTAL SERVICE WITNESS TAUFIQUE TO
POIR NO. 2, QUESTION 5
5. In the billing determinants for Standard Mail there is a line item entitled
“barcode adjustment.” Please discuss what this represents and provide
workpapers showing how it is calculated.
RESPONSE:
Standard Mail Regular and Nonprofit machinable parcels bearing a correct
parcel barcode for the delivery address ZIP Code are entitled to a three cent
discount off the otherwise applicable rate. The Postal Service’s Revenue, Pieces
and Weight (RPW) reports do not distinguish between pieces that bear parcel
barcodes and those that do not. Instead, a separate adjustment line showing the
total amount of the parcel barcode discount for all pieces is reported. This line
appears in the billing determinants as an offset to the total revenue. The number
of parcel barcoded pieces can be calculated directly from this revenue
adjustment by dividing the revenue adjustment by 0.03.
Thus, the barcode adjustment reported in the billing determinants is taken
directly from a line in the RPW reports, and therefore, is not calculated in
developing the billing determinants.
RESPONSE OF THE UNITED STATES POSTAL SERVICE TO
POIR NO. 2, QUESTION 6
6. Please provide the electronic version of the spreadsheets used to forecast
international mail volume and revenue for FY 2005, FY 2006 (test year before
rates) and FY 2006 (test year after rates). Exhibits USPS-27A, USPS-27B and
USPS-27C. Please show international mail revenue from postage and fees
separately. Please show the quarterly volume forecasts of international mail for
2005GQ1-2007GQ4 in the same manner witness Thress (USPS-T-7) has
presented before- and after- rates quarterly volume forecasts of domestic mail in
Attachment A of his testimony.
RESPONSE:
Please see USPS-LR-K-118, filed today.
RESPONSE OF POSTAL SERVICE WITNESS TAUFIQUE TO
POIR NO. 2, QUESTION 7
7. Please reconcile the TYAR revenue figures for Periodicals within county,
nonprofit and regular rate, and Standard Mail nonprofit and nonprofit ECR shown
in Exhibit USPS-27B with the corresponding revenue figures presented in Exhibit
USPS-28A, Table 12.
RESPONSE:
After Exhibit USPS-27B was developed, some pricing anomalies were
discovered in the proposed rates for Standard Mail Nonprofit and Nonprofit ECR.
As a result, the pound rates for Nonprofit DBMC piece-and-pound-rated pieces
were adjusted upward by $0.001 from $0.510 to $0.511 to ensure that the
discount for Nonprofit DBMC pieces was the same for all four Standard Mail
subclasses. The revenue impact was to raise Nonprofit TYAR revenues by
$37,632.
In addition, the pound rates for Nonprofit ECR DDU piece-and-poundrated pieces were adjusted downward by $0.001 from $0.225 to $0.224 to ensure
that the discount was consistent with the discount in the other three subclasses.
The revenue impact was to lower Nonprofit ECR TYAR revenues by $7,479.
The net impact of these two changes was included in Exhibit USPS-28A,
Table 12, but not in Exhibit USPS-27B.
For Periodicals, the TYAR revenue figure in Exhibit USPS-27B reflects a
proposed Periodicals re-entry fee of $40, instead of the $45 fee actually
proposed and reflected in Exhibit USPS-28A. See USPS-T-28 at 26 for an
explanation of why the fee was proposed at $45 instead of $40.
Witness Robinson will be filing errata to reflect both of these changes in
Exhibit USPS-27B.
RESPONSE OF POSTAL SERVICE WITNESS KELLEY TO
POIR NO. 2, QUESTION 8
8. This question concerns the calculation of unit delivery costs for Periodicals
Within County subclass. Please provide the unit delivery costs corresponding to
those in cells D51, D52, and D53 of worksheet “Discounts” in USPS-LR-J-107
WC for Within County Periodicals and explain fully their derivation.
RESPONSE:
The unit delivery costs in cells D51, D52, and D53 of worksheet “Discounts” in
R2001 -1 USPS-LR-J-107 WC are TY 2001 unit costs for Nonprofit ECR Basic
Nonletters, Nonprofit ECR High Density Nonletters, and Nonprofit ECR
Saturation Nonletters. These unit costs were obtained from R2000-1 USPS-LRI-95, worksheet ‘Table 5’, cells G56–G58. The Base Year 2004 segments 6, 7,
and 10 inputs into R2005-1 LR-K-67 that correspond to the Base Year 1998
segment 6, 7, and 10 inputs into LR-I-95 no longer break total ECR delivery costs
into separate costs for Commercial ECR mail, and separate costs for Nonprofit
ECR mail. Therefore, it is not possible to update the Nonprofit ECR unit costs in
cells D51-D53 of LR-J-107 WC to TY 2006.
RESPONSE OF POSTAL SERVICE WITNESS VAN-TY-SMITH TO
POIR NO. 2, QUESTION 9
9. The Postal Service has supplied the Commission with files that are not PC
executable. Library References LR-K-55 and LR-K-100 contain programs that
are in text formats and have to be converted to PC SAS.
a. Please provide the following SAS programs and SAS log missing in
LR-K-100: MBC, DOLWGTBM, MODFIN04, MAPCLCRA, and
MBC SASLOG.
b. The input files to a SAS program called MODSPOOL in LR-K-55
are missing. These are quarterly files called
MODSFIN.FY04Q1.DATA, MODSFIN.FY04Q2.DATA
MODSFIN.FY04Q3.DATA, and MODSFIN.FY04Q4.DATA. Please
provide these files in a format that can be executed using a PC
SAS platform.
RESPONSE:
(a) For both the USPS and PRC versions, the same programs are used to
partition data collected from the IOCS sampled facilities into BMCs, MODS 1&2,
and nonMODS facilities. Thus, the MBC SAS program and the MODFIN04 data
set are in the PROGRAMS directory of the diskette in USPS-LR-K-55. The MBC
SASLOG is in the SASLOGS directory of the diskette in USPS-LR-K-55.
Also, the program modules DOLWGTBM and MAPCLCRA are used for both the
USPS and PRC versions. DOLWGTBM and MAPCLCRA are in the PROGRAMS
directory of the diskette in USPS-LR-K-55.
(b) The quarterly files MODSFIN.FY04Q(1 through 4).DATA with encrypted
finance numbers (F2) and deleted facility names (FINNAME) are provided as the
PC SAS files MODSQ1-MODSQ4 in the CD of USPS-LR-K-126, filed today.
Please note that Table I-2A and Table I-2B of USPS-LR-K-55 are the output
tables from the MODSPOOL program that processes the data from those MODS
files.
RESPONSE OF POSTAL SERVICE WITNESS SHAW TO
POIR NO. 2, QUESTION 10
10. Library Reference LR-K-101 contains a spreadsheet which calculates
delivery costs by rate element for First-Class and Standard Mail using the
methods in the R2001-1 PRC Opinion. In R2001-1, the Postal Service submitted
LR-J-117 which included a FORTRAN based program for IOCS data extraction.
Please identify the data source used to create worksheet ECR SPLITS in
workbook LR-K-101.xls and provide PC compatible programs and their
corresponding datasets which generated this worksheet.
RESPONSE:
The FORTRAN based program for IOCS data extraction was not used in
FY2004. Instead, IOCS programs ALBCARMM and ECRALL are now used to
provide the data source for worksheets CASING04.XLS and
CASING04.Recd.2.17.05.XLS in USPS-LR-K-67 (which also pertain to the
response to POIR-2, question 11) which in turn are used to produce ECR
SPLITS in USPS-LR-K-101.
These IOCS programs are documented in USPS-LR-K-9/R2005-1, pages
49 – 51 and 53. Input data for the USPS-LR-K-67 worksheets described above
can be generated using the source code for the programs (ALBCARMM and
ECRALL) and the IOCS tally file documented in the IOCS CD-ROM (see USPSLR-K-9/R2005-1, appendix H).
To facilitate the identification of inputs to USPS-LR-K-67 worksheet
CASING04.Recd.2.17.05.XLS from IOCS, hardcopy reports from ALBCARMM
and the output data file from program ECRALL are provided in new library
reference USPS-LR-K-125/R2005-1, IOCS FY 2004 Supplemental Reports and
Data, Provided in Response to POIR No. 2, Item 10.
RESPONSE OF POSTAL SERVICE WITNESS KELLEY TO
POIR NO. 2, QUESTION 11
11. The Postal Service development of delivery costs by rate element for FirstClass and Standard Mail is filed as LR-K-67. The spreadsheet LR-K-67.xls has
gaps in documentation and cross-referencing. Please provide a revised
worksheet which sources various columns to their appropriate testimony,
worksheets, and other library references by citing the title of the document and
the referenced source page(s) used to create LR-K-67.xls. Also, provide any
other programs and data sources used to generate various supporting
spreadsheets. For example, workbook CASING04.xls, worksheet ECR
BREAKOUT has a link to another spreadsheet called
“CASING04.Recd.2.17.05.xls” which has not been filed with LR-K-67. Please
provide “CASING04.Recd.2.17.05.xls.”
RESPONSE:
The revisions requested are in the workbook LR-K-67_Revised.xls. The
additional documentation is presented in footnotes at the bottom of the various
worksheets. LR-K-67_Revised.xls also makes a minor correction to the segment
6 in-office costs by shape and rate subcategory. This correction adds TY 2006
Segment 6.2 CAG K costs, which the previous version excluded. Adding these
CAG K costs changes a few of the worksheet ‘Table 1’ total TY 2006 unit costs,
as shown in the following table.
Mail Subclass and Shape-Rate
Subcategory
First-Class Single Piece, letter-shape pieces
First-Class Single Piece, nonletter pieces
First-Class Presort, flat-shape pieces
First-Class Auto AADC Cards
First-Class Auto 5-Digit Cards
CSBCS/Manual Sites
First-Class Auto 5-Digit Cards Other Sites
First-Class Auto CR Cards
Standard Regular, Nonautomation –
Nonmach Mixed ADC Letters
Standard Regular, Nonautomation –
Nonmach ADC Letters
Standard Regular, Nonautomation –
Previous TY06
Unit Cost
Revised TY06
Unit Cost
7.188
14.423
9.423
3.371
7.189
14.424
9.424
3.372
5.798
2.306
5.647
5.799
2.307
5.648
11.049
11.050
11.049
11.049
11.050
11.050
RESPONSE OF POSTAL SERVICE WITNESS KELLEY TO
POIR NO. 2, QUESTION 11
Nonmach 3-Digit Letters
Standard Regular, Nonautomation –
Nonmach 5-Digit Letters
Standard Regular, Nonletter Subtotal
Standard ECR, Saturation Flats - with DAL
Costs Included in the Numerator of the ECR
Saturation Flats Unit Cost
11.049
10.093
11.050
10.094
4.241
4.240
Also included in revised LR-K-67 is the workbook “CASING04.Recd.2.17.05.xls”
which had not been filed with the original USPS-LR-K-67.
RESPONSE OF POSTAL SERVICE WITNESS WATERBURY TO
POIR NO. 2, QUESTION 12
12. The table in USPS-T-10, Appendix G, shows the distribution keys used for
cost reductions and other programs in the roll forward model. While the sources
of these keys are identified by witness testimony reference, the exact source of
these keys is not identified (i.e., library reference, exhibit, table number, page,
etc.).
a. Please provide a more detailed source of the distribution keys
noted in USPS-T-10, Appendix G.
b. Please provide a spreadsheet table detailing the base year inputs
by class/subclass of mail for all the keys in Appendix G.
RESPONSE:
(a) A more detailed source of the distribution keys noted in USPS-T-10,
Appendix G, is attached as page G1-1. Errata to Appendix G reflecting this
attachment will be filed subsequently.
(b) A spreadsheet table detailing the base year inputs by class/subclass of mail
for all distribution keys in Appendix G is attached as pages G2-1 and G2-2.
Errata to Appendix G reflecting these attachments will be filed subsequently.
R2005-1
Roll Forward
Dist. Keys
1418
1419
1420
1439
1440
1441
1442
1443
1444
1445
1446
1447
1448
1449
1450
1451
1452
1453
1454
1455
1456
1457
1458
1459
1460
1461
1462
1463
1464
1465
1466
1467
1468
1469
1470
1471
1472
Roll Forward Distribution Keys Used for Cost Reductions and Other Programs
Distribution Key Title
not used
not used
not used
not used
Delivery BCS, Carrier Sequence BCS
OCRs (including BCS on OCRs)
AFMS 100
SPBS - Non-Priority & Priority
LDC 15 - RBCS
Cancellation & Mail Preparation - Metered
International / ISCs
LDC 79 - Mailing Reqs. & Bus. Mail Entry
BMC - Parcel Sorting Machine
not used
Mechanized Tray Sorter
not used
not used
Facer/Canceler - Letters
Facer/Canceler - Flats
not used
Automated Postal Centers (APCs)
Allied Labor
CFS Letters
CFS Flats
not used
BPI Function 1 Mail Proc Op
not used
not used
BPI Function 4 Mail Proc
not used
Periodicals Outside County Key
Standard Regular Key
not used
Surface Visibility Hwy
not used
Amtrak Rail
not used
Base Year
Dist. Keys
USPS-T-10
Appendix G
Revised 4/29/2005
Source
901
903
906
910
915
918
931
939
942
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
971
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
983
984
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
Witness Meehan, USPS-T-9; Workpaper A, Factor Report
USPS-LR-K-121
Witness Van-Ty-Smith, USPS-T-11; USPS-LR-K-55, Part 7
Witness Van-Ty-Smith, USPS-T-11; USPS-LR-K-55, Part 7
Witness Van-Ty-Smith, USPS-T-11; USPS-LR-K-55, Part 7
Witness Van-Ty-Smith, USPS-T-11; USPS-LR-K-55, Part 7
Witness Van-Ty-Smith, USPS-T-11; USPS-LR-K-55, Part 7
Only Periodicals Outside County; mail class number 117
Only Standard Regular; mail class number 127
Witness Meehan, USPS-T-9; Workpaper B, CS14
Witness Nash, USPS-T-17; USPS-LR-K-38, Table 110
G1-1
R2005-1
Input:
Input:
Input:
Input:
Input:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
USPS-T-10
Appendix G
Revised 4/29/2005
USPS Version
Sample
Formula
RF Key Title
RF Key Number
Base Year Key Number
Variability
Roll Forward Needed
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
40
not used
not used
not used
1418
1419
1420
Only Priority Only ParcelPost Only Int'l
MV
101
102
103
104
105
108
109
110
111
112
454,624
21,235
475,859
31,552
1,899
33,451
509,310
68,372
35,304
-
113
117
123
MV
MV
Delivery
BCS,
Carrier
Sequence
not used
BCS
1439
1440
Only Other
901
0.9
MV
MV
OCRs
(including
BCS on
OCRs)
1441
903
0.78
MV
AFMS 100
1442
906
1
MV
SPBS - NonPriority &
LDC 15 Priority
RBCS
1443
1444
910
915
0.77
1
MV
MV
4,439
2,452
6,891
158
80
238
7,129
7
-
6,234
1,327
7,561
218
41
259
7,820
17
12
-
3,555
478
4,033
7
5
12
4,045
93
1
-
2,050
158
2,208
2,208
1,485
17
-
7,468
907
8,375
317
36
353
8,728
-
154
1,393
1,547
-
5
5
24
24
2
1,142
1,144
2
1,616
1,618
126
127
135
4,610
47,646
52,256
137
2,641
2,778
88
1,931
2,019
187
4,283
4,470
136
137
139
141
142
147
161
162
15,675
2,586
8,179
26,440
33,171
195
27,143
753,738
1
-
100
-
100
38
5
37
9,999
163
164
165
166
168
159
169
170
171
172
173
198
199
200
5,879
69,236
30,247
938
88,319
4,334
491
86,387
44,656
330,487
1,084,225
1,495,518
2,579,743
100
100
100
100
100
1
53
42
9,988
1
100
100
100
100
100
100
100
100
1
10,000
1,111
11,111
1
11
12
10,000
2,821
12,821
Cancellation
& Mail
Preparation - International
Metered
/ ISCs
1445
1446
918
931
0.46
0.83
MV
MV
LDC 79 Mailing
Reqs. &
Bus. Mail
Entry
1447
939
0.83
MV
7,929
438
8,367
237
29
266
8,633
411
16
-
900
232
1,132
5
3
8
1,140
643
265
-
1,645
2,042
3,687
39
39
3,726
163
55
-
-
4
100
104
1
110
111
1
244
245
764
3,201
3,965
26
881
907
23
534
557
6
125
131
5
58
21
84
77
2
82
9,998
71
200
179
450
137
38
81
9,999
26
339
10,000
43
28
25
96
106
4
60
9,987
66
12
7
85
59
17
7,522
9,973
9,998
9,998
9,999
2,987
12,986
10,000
10,000
-
-
G2-1
11
11
9,998
11,737
21,735
25
2
27
10,000
2,048
12,048
BMC Parcel
Sorting
Machine
1448
942
0.83
MV
not used
1449
MV
65
21
86
Mechanized
Tray Sorter not used
1450
1451
971
0.83
MV
MV
86
733
-
1
343
344
291
4,725
5,016
4
2,874
2,878
69
1,855
1,390
1,654
4,899
240
116
987
9,999
69
667
31
9,972
28
28
10,000
2,048
12,048
-
9,999
2,048
12,047
MV
2,687
2,657
5,344
112
1
113
5,457
126
10
-
60
60
-
not used
1452
59,068
3,134
62,202
2,092
106
2,198
64,400
222
-
8,730
363
9,093
98
98
9,191
156
-
78
78
81
452
533
378
3,396
3,774
140
1,314
1,454
407
1,150
1,557
43
54
9
106
142
38
9,997
147
564
66,865
304
304
76
75
193
12,085
2
1,359
1,359
68,224
80,089
148,313
12,085
14,186
26,271
-
100
100
Facer/Canc
eler Facer/Canc
Letters
eler - Flats
1453
1454
983
984
From Model From Model
MV
MV
2
9,999
2,048
12,047
100
100
100
100
R2005-1
USPS-T-10
Appendix G
Revised 4/29/2005
USPS Version
not used
1455
MV
Automated
Postal
Centers
(APCs)
Allied Labor CFS Letters CFS Flats
not used
1456
1457
1458
1459
1460
Marc Smith Van-Ty-Smith Van-Ty-Smith Van-Ty-Smith
0.57
0.8
0.83
0.83
MV
MV
MV
MV
MV
466,510
not used
1463
MV
BPI Function 4
Mail Proc
not used
1464
1465
Van-Ty-Smith
0.82
MV
MV
973,867
292,786
1,266,653
24,366
9,318
33,684
1,300,336
190,142
22,160
70,916
64,196
135,112
4,736
3,930
8,666
143,778
201
0
17,446
5,528
22,974
22,974
1,311
26
3,658,000
1,113,000
4,771,000
131,000
39,000
170,000
4,941,000
801,000
47,000
-
1,189,433
438,000
1,627,433
53,473
16,532
70,005
1,697,438
171,401
62,612
-
2,250
280,303
282,553
0
699
699
480
31,824
32,304
6,000
737,000
743,000
7,112
255,234
262,346
-
76,176
770,689
846,864
221
8,846
9,067
710
8,628
9,338
235,000
2,620,000
2,855,000
126,196
732,073
858,269
33,755
21,408
14,675
69,837
25,045
4,028
25,701
2,766,667
108
108
10,692
0
223
164,767
0
419
101
520
230
89
408
67,199
174,000
98,000
86,000
358,000
104,000
14,000
129,000
9,992,000
78,509
37,019
31,132
146,660
58,018
4,738
33,283
3,294,765
206
1
0
0
164,767
33,747
198,514
67,199
13,764
80,963
1,000
-
8,280
36,230
704
734
1
3,127
29,568
78,644
3,373,409
740,504
4,113,913
466,510
466,510
320,708
78,289
112,692
112,692
18,526
996,725
3,276
100
100
BPI Function 1
Mail Proc Op not used
1461
1462
Van-Ty-Smith
0.83
MV
MV
3,276
1,000,001
754,387
1,754,388
464
1,154
282
2,106
2,768,773
692,193
3,460,966
100
100
2,000
2,000
3,000
8,000
10,000,000
2,048,193
12,048,193
100
100
100
100
Periodicals
Outside
Standard
County Key Regular Key not used
1466
1467
1468
Only PerOC Only StdReg
1
1
MV
MV
MV
100
100
100
100
G2-2
Amtrak Rail not used
1471
1472
Nash
From Input
MV
MV
156,599
100,308
256,908
1,373
2,526
3,899
260,807
150,013
5,049
-
(1,123)
(2,920)
(4,044)
(54)
(23)
(77)
(4,120)
(468)
-
60,094
60,094
(19,406)
(19,406)
100
100
5,789
44,082
49,871
(289)
(1,103)
(1,392)
100
30,942
4,202
8,252
43,396
2,077
1,417
15,952
588,675
(300)
(296)
(99)
(694)
(96)
(214)
(102)
(26,493)
100
100
588,675
63,994
652,669
(26,493)
(19,899)
(46,392)
100
100
100
Surface
Visibility
Hwy
not used
1469
1470
Meehan
From Input
MV
MV
100
100
100
100
100
100
RESPONSE OF POSTAL SERVICE WITNESS WATERBURY TO
POIR NO. 2, QUESTION 13
13. USPS-T-10, Appendix D is a listing of components and a comparison of the
cost effects affecting each of the components in the roll forward for both the
USPS version and the PRC version. However, the cost reduction and other
programs distribution key components, noted in Appendix G of USPS-T-10, are
not included in this list. In prior rate filings, these types of distribution keys have
usually received a mail volume effect in the roll forward. (See USPS LR-J-5, RF
Model Documentation Reports or USPS LR-J-4, file name VBL2). Discuss any
reasons for omitting this adjustment. Please provide a revised version of USPST-10, Appendix D which includes the cost reduction and other programs
distribution keys components listed in Appendix G.
RESPONSE:
The cost reductions and other programs distribution key components, noted in
Appendix G of USPS-T-10, do receive a mail volume effect in the roll forward.
See USPS-LR-K-6, Roll Forward Model and Data Files; pages 10 and 11 of
Sections 2, 3, and 4.
A revised version of USPS-T-10 Appendix D which includes the cost reductions
and other programs distribution key components listed in Appendix G is attached.
Errata to Appendix D reflecting this attachment will be filed subsequently.
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
Component
Number USPS Component Title
C/S 1 Postmasters
0001 Postmasters EAS 23 & Below
0002 Postmasters EAS 24 & Above
C/S 2 Supervisors & Technicians
Supervision of Mail Processing & Window
0004 Supv - Mail Processing
0007 Supv - Window Service
Supervision of Time & Attend and Admin Support
0009 Supv - Time & Attend and Admin Support
Supervision of City Delivery Carriers
0013 Supv - City Deliv - Office
0014 Supv - City Deliv - Delivery Activities
0017 Supv - City Deliv - Other Support
0018 Supv - City Deliv - Network Travel
0015 Supv - City Deliv - Other Load (PRC)
0016 Supv - City Deliv - Access (PRC)
0680 Supv - City Deliv - SCS Access (PRC)
Other Supervisors & Technicians
0029 Employee & Labor Relations Techs
0030 Higher Level Supervisors
0031 General Supv of Mail Processing
0032 General Supv of Collection & Deliv
0601 Supv - Training
0674 Supv - Rural Delivery Carriers
0675 Supv - Vehicle Service
0676 Supv - Quality Control/Rev Protect
0677 Supv - Central Mail Mark-up
0678 Joint Supv Clerks & Carriers
0033 Product Specific and Other Supv & Tech Activities
C/S 3 Clerks & Mailhandlers – CAG A-J
Mail Processing & Window Service
0035 Mail Processing
0040 Window Service
Administrative Support & Miscellaneous
0066 Claims & Inquiry
0421 Data Collection
0422 General Office & Clerical
0423 Quality Control
0467 Training - Schemes
0468 Training - Mail Processing, Non-Parcels
0469 Training - Mail Processing, Parcels
0470 Training - Other
0041 Other Clerk & Mailhandler Activities
0227 Product Specific Admin
0228 Time & Attend and Admin Support
C/S 4 Clerks – CAG K Offices
0042 Clerks CAG K Offices
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
A
A
199
199
X
X
X
X
V
V
X
X
X
X
I
I
I
I
0035
0040
0035
0040
I
I
I
I
I
I
I
I
X
X
I3
I3
0525
0525
I
I
I
I
X
X
X
X
I
I
I
I
0606
0046
0522
0054
0692
0048
0683
0606
0046
0522
0054
0692
0048
0683
I1
I1
I1
I
I
I
I
I
I
I
I
I
I
I
I1
I1
I1
I
I
I
I
I
I
I
I
I
I
I
X1
X1
X1
X
X
X
X
X
X
X
I1
I1
I1
I
I
I
I
I
I
I
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
I3
I3
I
I
I3
I3
I
I
I3
I
I
I3
I
I
I3
V
I
I3
V
I
0525
0294
0035
0523
0602
0072
0057
0295
0525
0294
0035
0523
0602
0072
0057
0295
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
I
0694
0694
I
I
I
199
A2
X
X
X
X
V
V
V
V
199
199
199
199
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
V
V
I
I
I
V
V
I
V
V
V
I
I
I
V
V
I
V
199
199
I
I
I
199
199
I
I
I
I
199
I3
I
I
199
199
I
X
X
V
V
199
199
D-1
0294
0295
0466
0294
0295
0466
I
I
I
I
I
I
0473
0473
I
I
0525
0525
I
I
I
A2
I
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
Component
Number USPS Component Title
38
39
40
41
0043
0044
0045
0604
42
43
44
45
46
47
48
49
50
51
0047
0048
0049
0683
0610
0051
0052
0639
0684
0046
52
0050
53
0053
54
0054
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
C/S 6 City Delivery Carriers – Office
In-Office Direct Labor
In-Office Support Overhead
Carriers CAG K Offices
In-Office Support Other (USPS Only)
C/S 7 City Delivery Carriers – Street
Other Load (PRC)
Access (PRC)
St Support - Office (PRC)
SCS Access (PRC)
SCS Load (PRC)
St Support - Other Load (PRC)
St Support - Access (PRC)
St Support - SCS Access (PRC)
St Support - SCS Load (PRC)
Delivery Activities (USPS) /
Elemental Load (PRC)
Delivery Activities Support (USPS) /
St Support Elem Load (PRC)
Network Travel Support (USPS) /
St Support Route (PRC)
Network Travel (USPS) /
Route (PRC)
C/S 8 Vehicle Service Drivers
0057 Vehicle Service Drivers
C/S 10 Rural Carriers
0069 Evaluated Routes
0070 Other Routes
0073 Equipment Maintenance Allowance
C/S 11 Custodial & Maintenance
Cleaning & Protection
0074 Custodial Personnel
Equipment & Building Personnel
0075 Operating Equipment Maintenance
0079 Plant & Building Equipment Maintenance
Contract Cleaners
0081 Contract Cleaners
C/S 12 Motor Vehicle Service
MVS Personnel
0084 MVS Pers - City Deliv - Other Load (PRC)
0085 MVS Pers - City Deliv - Access (PRC)
0685 MVS Pers - City Deliv - SCS Access (PRC)
0082 MVS Pers - City Deliv - Office
0083 MVS Pers - City Deliv - Delivery Activities
0086 MVS Pers - City Deliv - Network Travel
0543 MVS Pers - City Deliv - Spec Purp Rtes
0545 MVS Pers - Vehicle Service Drivers
0548 MVS Pers - Rural Delivery
0089 MVS Pers - Other
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
0043
0606
0605
0043
0606
na
I
I
I
I
I
na
199
I
I
I
199
I
I
na
199
0043
I1
199
I
0047
0048
0683
0610
0047
0048
0683
0610
199
A
I
A
A
I
I
I
I
199*
0043
I1
I1
I1
I1
199
I
I
I
I
199
I
I
X
X
X
X
X
X
X
na
V
I
I
I
V
I
I
na
X1
X1
X1
X1
X1
X1
X1
X1
X1
X
X
X
X
X
X
X
X
X
X
X
M1
I1
M1
M1
I1
I1
I1
I1
V
M
I
M
M
I
I
I
I
V
X
X
I
I
0046
0046
X
X
I
I
0054
0054
X
X
X
X
V
V
X
X
X
X
X
X
V
V
V
V
X
X
X
X
X
X
X
X
X1
X1
X1
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
V
V
I1
I1
I1
I
I
I
V
I
I
D-2
A1
I1
A1
A1
I1
I1
I1
I1
199
I
I
I
I
I
I
199
A
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
I1
I1
I1
I
I
I
199
I
I
199
I
I
I
I
I
I
199
I
I
199
V
I
I
I
I
I
I
V
I
I
0692
0048
0683
0606
0046
0054
0692
0048
0683
0606
0046
0054
I1
I1
I1
I
I
I
I
I
I
I
I
I
0057
0072
0057
0072
I
I
I
I
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
Component
Number USPS Component Title
73
74
75
76
77
78
79
80
81
82
0093
0094
0686
0091
0092
0095
0549
0550
0556
0098
83
84
85
86
87
88
89
90
0102
0103
0687
0100
0101
0104
0568
0107
91
92
93
94
95
96
0110
0111
0112
0114
0113
0115
97
0117
98
0125
99
100
101
102
103
104
105
0129
0130
0688
0127
0128
0131
0134
106
107
108
109
110
111
0138
0139
0689
0136
0137
0140
MVS Supplies & Materials
MVS Supp & Mat - City Deliv - Other Load (PRC)
MVS Supp & Mat - City Deliv - Access (PRC)
MVS Supp & Mat - City Deliv - SCS Access (PRC)
MVS Supp & Mat - City Deliv - Office
MVS Supp & Mat - City Deliv - Delivery Activities
MVS Supp & Mat - City Deliv - Network Travel
MVS Supp & Mat - City Deliv - Spec Purp Rtes
MVS Supp & Mat - Vehicle Service Drivers
MVS Supp & Mat - Rural Delivery
MVS Supp & Mat - Other
Vehicle Hire
Veh Hire - City Deliv - Other Load (PRC)
Veh Hire - City Deliv - Access (PRC)
Veh Hire - City Deliv - SCS Access (PRC)
Veh Hire - City Deliv - Office
Veh Hire - City Deliv - Delivery Activities
Veh Hire - City Deliv - Network Travel
Veh Hire - Vehicle Service Drivers
Veh Hire - Other
C/S 13 Miscellaneous Operating Expenses
Salaries, Fringe Benefits & Travel
Mail Equipment Shops Personnel
Contract Stations
CAG L Rental Allowance
Facilities & Purchasing Field Units Pers
Tolls and Ferriage
Employee Awards
Mail Equipment Shops
Freight on Materials & Supplies
Federal Reserve & Commercial Banks
Federal Reserve & Commercial Banks
Carfare
Carfare - City Deliv - Other Load (PRC)
Carfare - City Deliv - Access (PRC)
Carfare - City Deliv - SCS Access (PRC)
Carfare - City Deliv - Office
Carfare - City Deliv - Delivery Activities
Carfare - City Deliv - Network Travel
Carfare - Other
Driveout - City Delivery
Driveout - City Deliv - Other Load (PRC)
Driveout - City Deliv - Access (PRC)
Driveout - City Deliv - SCS Access (PRC)
Driveout - City Deliv - Office
Driveout - City Deliv - Delivery Activities
Driveout - City Deliv - Network Travel
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
I1
I1
I1
I
I
I
199
I
I
199
I
I
I
I
I
I
199
I
I
199
I1
I1
I1
I
I
I
I
199
I
I
I
I
I
I
I
199
199
199
199
199
199
199
199
199
X1
X1
X1
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
I1
I1
I1
I
I
I
V
I
I
I
I
I
I
I
I
V
I
I
0692
0048
0683
0606
0046
0054
0692
0048
0683
0606
0046
0054
I1
I1
I1
I
I
I
I
I
I
I
I
I
0057
0072
0057
0072
I
I
I
I
X1
X1
X1
X
X
X
X
X
X
X
X
X
X
X
X
X
I1
I1
I1
I
I
I
I
I
I
I
I
I
I
I
0692
0048
0683
0606
0046
0054
0057
0692
0048
0683
0606
0046
0054
0057
I1
I1
I1
I
I
I
I
I
I
I
I
I
I
I
X
X
X
X
X
X
X
X
X
X
X
X
199
199
199
199
X
X
X
X
1
X
X1
X1
X
X
X
X
X
X
X
X
X
X
X
I1
I1
I1
I
I
I
I
I
I
I
I
I
0692
0048
0683
0606
0046
0054
0692
0048
0683
0606
0046
0054
I1
I1
I1
I
I
I
I
I
I
I
I
I
I1
I1
I1
I
I
I
199
I
I
I
I
I
I
199
X1
X1
X1
X
X
X
X
X
X
X
X
X
I1
I1
I1
I
I
I
I
I
I
I
I
I
0692
0048
0683
0606
0046
0054
0692
0048
0683
0606
0046
0054
I1
I1
I1
I
I
I
I
I
I
I
I
I
I1
I1
I1
I
I
I
I
I
I
I
I
I
D-3
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
Component
Number USPS Component Title
112
113
114
115
116
117
118
0142
0681
0143
0144
0145
0146
1438
119
120
121
0165
0234
122
123
124
125
126
127
0166
0167
0168
0169
0170
0171
128
129
130
131
0173
0174
0175
0176
132
133
134
135
136
0179
0180
0181
0248
0182
137
138
139
140
141
142
0184
0187
0196
1426
0177
0197
143
0189
144
0246
145
0190
C/S 14 Transportation
Domestic Air
Domestic Alaska Air
Highway
Railroad
Domestic Water
International
Settlement Transactions (SDR's)
C/S 15 Building Occupancy Costs
Rents
Rents
Product Specific Rents
Fuel & Utilities
Fuel
Utilities
Communications
Building Projects Expensed
Moving Expense
Reimburse for Bldg Costs Oth Than Rent
C/S 16 Supplies & Services
Supply Personnel & Equipment
Supply Personnel
ADP Supplies & Services
Repair & Maint of Equip Except ADP & Vehicles
Custodial Supplies & Services
Printing & Reproduction
Printing & Reproduction
Stamps & Dispensers
Money Orders
Stamped Cards & Embossed Stamped Envelopes
Inventory Adjustment
Postal Supplies & Services
Equipment
Expedited Mail Supplies & Services
Tracking & Tracing
Remote Encoding Supplies & Services
Misc Postal Supplies & Services
Product Specific Supplies & Services
Reimbursements
Reimbursements for Supplies & Services
Advertising
Advertising
C/S 17 Research & Development
Research & Development
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
V
V
V
V
V
V
V
V
V
V
V
V
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
199
199
199
A
X
X
X
X
X
X
X
X
X
X
X
X
199
199
199
199
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
V
V
V
V
V
V
X
X
V
V
X
X
X
X
X
X
I
I
X
X
199
D-4
0525
0525
I
199
I
Additional
Workday
USPS
Additional
Workday
PRC
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
199
I
I
A2
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
Component
Number USPS Component Title
146
147
148
149
150
0191
0192
0193
0194
0195
151
152
153
154
155
156
157
158
159
160
161
162
163
0199
0200
0201
0202
0064
0208
0071
1435
0204
0205
0241
0541
0895
164
165
166
167
168
169
170
171
0210
0211
0212
0207
0213
0244
1429
1430
172
173
0219
0220
174
175
176
177
178
179
0223
0224
0691
0221
0222
0225
180
181
182
0581
0582
0230
C/S 18 Administration & Servicewide
Administration Personnel Costs
Headquarters
Money Order Division
Area Administration
USPS Security Force
Inspection Service Field Support
Servicewide Personnel Costs
Repriced Annual Leave
Holiday Leave Variance
CS Retirement Supplemental Liability (1)
CS Retirement Supplemental Liability (2)
FERS Retirement Fund Deficit
Retiree Health Benefits
Annuitant Life Insurance
CS Retirement Reform Escrow (FY 2006)
Workers' Comp Current Liability
Workers' Comp Prior Year
Unemployment Compensation
Workers' Comp PO Dept Liability
OWCP Health Benefits
Administration Support
HQ & Area Supplies & Services
HQ & Area Misc Support
Inspection Expenses & Employee Losses
Annuity Protection Program
Misc Reimbursements for HQ & Area
Commissions on Non-US Money Orders
Individual Awards
Misc Personnel Compensation
C/S 19 General Management Systems
Maintenance Technical Support Center
Training Contracts Supplies & Services
C/S 20 Other Accrued Expenses
City Delivery Vehicle Depreciation
Vehicle Depr - City Deliv - Other Load (PRC)
Vehicle Depr - City Deliv - Access (PRC)
Vehicle Depr - City Deliv - SCS Access (PRC)
Vehicle Depr - City Deliv - Office
Vehicle Depr - City Deliv - Delivery Activities
Vehicle Depr - City Deliv - Network Travel
Other Vehicle Depreciation
Vehicle Depr - Vehicle Service Drivers
Vehicle Depr - Rural Delivery
Vehicle Depr - Other
Cost Level Cost Level
USPS
PRC
X
X
X
X
X
Mail
Volume
USPS
Mail
Volume
PRC
Distribution Key
USPS
Distribution Key
PRC
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
D-5
NonVolume
Workload
USPS
NonVolume
Workload
PRC
199
199
Additional
Workday
USPS
Additional
Workday
PRC
199
199
199
199
199
A2
A2
199
199
199
IM3
IM3
IM3
IM3
0526
0526
0526
0526
IM
IM
IM
IM
IM
IM
IM
IM
IM3
IM3
0526
0526
IM
IM
IM
IM
IM3
IM
0526
0526
IM
IM
IM
IM
199
199
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
Component
Number USPS Component Title
Equipment Depreciation
0232 Equipment Depreciation
0233 Product Specific Equipment Depreciation
Building & Leasehold Depreciation
0236 Depreciation - Building
0237 Depreciation - Leasehold
0247 Product Specific Depreciation - Leasehold
0730 Building & Leasehold Adjustment
Interest Expense
0587 Interest Land / Building Veh & Equip
0729 Interest Adjustment
0899 Interest Special Assessments
1436 Retirement Interest
0896 Annuitant COLA / Interest
1437 Other Interest
Indemnities & Insurance Claim Write-offs
0239 Domestic Indemnities
0240 International Indemnities
0242 Insurance Claim Write-offs
Other Operating Expenses
0245 Other Expenses
0249 Reimbursements & Miscellaneous
Cost Level Cost Level
USPS
PRC
X
X
X
Mail
Volume
USPS
Mail
Volume
PRC
V
V
V
V
X
X
X
D-6
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
Component
Number USPS Component Title
0901
0902
0903
0904
0905
0906
0907
0908
0909
0910
0911
0912
0913
0914
0915
0916
0917
0918
0919
0920
0921
0922
0923
0924
0925
0926
0927
0928
0929
0930
0931
0932
0933
0934
0935
0936
0937
0938
0939
0940
0941
0942
0943
0944
0945
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Distribution Keys
Space and Rental Value Keys
Delivery BCS, Carrier Sequence BCS
Mail Processing BCS
OCRs (including BCS on OCRs)
FSM 881, SPFSM, Other
FSM 1000
AFMS 100
LSM, MPLSM & SPLSM with BCR
Mechanical Sort - Sack Outside
Mechanized Parcels
SPBS - Non-Priority & Priority
Manual Flats
Manual Letters
Manual Parcels
Manual Priority
LDC 15 - RBCS
Air Contract Data Collection Systems / Scan Where You Band
Bulk Presort
Cancellation & Mail Preparation - Metered
Manual Sort - Sack Outside
Opening Unit - Preferred Mail
Opening Unit - BBM
Platform
Pouching Operations
Business Reply / Postage Due
Damaged Parcel Rewrap
Empty Equipment
Priority Mail Processing Centers
Express Mail
Mail Processing Support/Miscellaneous Activity
Registry
International / ISCs
LDC 41 - Unit Distribution - Automated
LDC 42 - Unit Distribution - Mechanized
LDC 43 - Unit Distrib., Manual / LDC 44 - PO Box Distrib.
LDC 48 - Customer Service / Express
LDC 48 - Customer Service / Admin. & Other
LDC 48 - Customer Service / Special Services
LDC 49 - Computerized Forwarding System
LDC 79 - Mailing Reqs. & Bus. Mail Entry
BMC - Platform
BMC - Allied Labor & All Other Mail Processing
BMC - Parcel Sorting Machine
BMC - Sack Sorting Machine
BMC - SPBS & Irregular Parcels (IPP & 115)
BMC - Non-Machinable Outside (NMO)
D-7
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
Component
Number USPS Component Title
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
0946
0947
0948
0949
0950
0951
0952
0953
0954
0955
0956
0957
0958
0959
0960
0961
0962
0963
0964
0965
0966
0967
0968
0969
0970
0971
0972
0973
0974
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
0975
0976
0977
0978
0979
0980
0981
0982
0983
0984
0985
0986
0987
0988
0989
0990
0991
0992
0993
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Non-MODS - Allied
Non-MODS - Automated/Mechanized
Non-MODS - Express Mail
Non-MODS - Manual Flat
Non-MODS - Manual Letter
Non-MODS - Manual Parcel
Non-MODS - Registry
Non-MODS - Miscellaneous
Window Service
Self-Service Postal Center
Post Office Boxes / Caller Service
Claims & Inquiry
City Carrier
Rural Carrier
DDU Accountables Cage
Office Space
Mail Processing Equipment Maintenance
Other Equipment Maintenance
Employee Facilities
VMF
CVS
Vacant & Tenant
HQ, HQ-Field Related, and Area Offices
Mail Transportation Equipment Centers
Storage Facilities
Mechanized Tray Sorter
Scan Where You Band (SWYB) - previously
Dispatch Unit
Flat Mail Preparation
Equipment-Related Keys
Computer Forwarding System / CFS Flats (TY)
OCR
Mail Processing BCS
Delivery BCS
Carrier Sequence BCS
LSM / CFS Letters (TY)
FSM
Parcel Sorting & NMO Machines
Facer/Canceler - Letters
Facer/Canceler - Flats
Cullling
Sack Sorting Machine
Small Parcel & Bundle Sorter
Remote Barcode System
ACDCS
Strapping
Powered Transport Equipment
General & Logistics - BMC
General & Logistics - Non-BMC
D-8
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
Component
Number USPS Component Title
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
Mail
Volume
PRC
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
V
Mail Processing Training Keys
0996 Other Dist. Key—Mail Processing Letters/Flats
0997 Other Dist. Key—Mail Processing Parcels
0998 Other Dist. Key—Mail Processing Other
Other Distribution Keys
0507 GDEI Intl Volume Adj Key
0153 Admin Clerks PC Key
0578 Dist Key: City Carriers Spec. Purpose Rte
1258 Mail Proc Maint Labor Key
0514 Total Pounds
0516 Total Cubic Feet
Rollforward-Only Keys
1418 not used
1419 not used
1420 not used
1439 not used
1440 Delivery BCS, Carrier Sequence BCS
1441 OCRs (including BCS on OCRs)
1442 AFMS 100
1443 SPBS - Non-Priority & Priority
1444 LDC 15 - RBCS
1445 Cancellation & Mail Preparation - Metered
1446 International / ISCs
1447 LDC 79 - Mailing Reqs. & Bus. Mail Entry
1448 BMC - Parcel Sorting Machine
1449 not used
1450 Mechanized Tray Sorter
1451 not used
1452 not used
1453 Facer/Canceler - Letters
1454 Facer/Canceler - Flats
1455 not used
1456 Automated Postal Centers (APCs)
1457 Allied Labor
1458 CFS Letters
1459 CFS Flats
1460 not used
1461 BPI Function 1 Mail Proc Op
1462 not used
1463 not used
1464 BPI Function 4 Mail Proc
1465 not used
1466 Periodicals Outside County Key
1467 Standard Regular Key
1468 not used
1469 Surface Visibility Hwy
1470 not used
1471 Amtrak Rail
1472 not used
D-9
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
R2005-1
USPS-T-10
Appendix D
Revised 4/29/2005
Roll Forward Effects Lists Input Comparison, USPS vs. PRC, R2005-1
Row
Seq.
Component
Number USPS Component Title
Cost Level Cost Level
USPS
PRC
Mail
Volume
USPS
NOTES:
1. All components named Delivery Activities in the USPS are named Elemental Load in PRC.
2. All components named Network Travel in USPS are named Route in PRC.
Indicates 0 cost in this component in, so application of effect is meaningless
3. 1
USPS version will contain only institutional costs (199) in this component
4. A2
PRC version may contain product specific costs in this component.
3
Distribution key definition corrected to match CRA definition.
5.
KEY:
X
V
M
I
IM
A
199
Z
Component gets this effect
Mail Volume effect
Volume Mix effect
Indirect (piggyback) effect
Indirect mix effect
Effect given, applies to all classes
Effect given, applies to class 199 (institutional costs) only
Zero-based component
D-10
Mail
Volume
PRC
Distribution Key
USPS
Distribution Key
PRC
NonVolume
Workload
USPS
NonVolume
Workload
PRC
Additional
Workday
USPS
Additional
Workday
PRC
RESPONSE OF POSTAL SERVICE WITNESS WATERBURY TO
POIR NO. 2, QUESTION 14
14. The USPS Roll Forward Model User’s Manual at 35 discusses the operation
of a “Distribution Key Loader” which is used to insert the distribution keys specific
to the roll forward operation. However, the file, “RFLoader.xls”, does not appear
to be included in the Library References filed containing all of the other roll
forward model worksheets and programs. Please provide the “Distribution Key
Loader” as described in the USPS Roll Forward User’s Manual.
RESPONSE:
The distribution key loader file, also referred to as “RFLoader,” is included in
USPS-LR-K-122 as file “RFLoader.R2005_USPS_PostFiling.xls.”
RESPONSE OF POSTAL SERVICE WITNESS ROBINSON TO
POIR NO. 2, QUESTION 16
16. Please provide the source of mailgrams revenue shown in Exhibits USPS27A, USPS-27B and USPS-27C.
RESPONSE:
Mailgram revenues shown in Exhibits USPS-27A, USPS-27B, and USPS-27C
were calculated as follows:
Calculation of Mailgram Revenue
Base Year FY 2004
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Volume
(a)
0.371
0.406
0.491
0.380
1.648
Revenue
per Piece
(c) = (b) / (a)
0.429
0.426
0.416
0.430
1.702
Revenue
(b)
0.159
0.173
0.204
0.163
0.700
Interim Year: FY 2005
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Volume
(d)
0.434
0.422
0.440
0.310
1.607
Revenue
(e) = (d) * (c)
0.186
0.180
0.183
0.133
0.683
Test Year Before Rates: FY 2006
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Total
Volume
(f)
0.343
0.366
0.382
0.269
1.359
Revenue
(g) = (f) * (c)
0.147
0.156
0.159
0.116
0.578
Test Year After Rates: FY 2006
Quarter 1
Volume
(h)
0.343
Revenue
(i) = (h) * (c) * 1.054
0.155
RESPONSE OF POSTAL SERVICE WITNESS ROBINSON TO
POIR NO. 2, QUESTION 16
Quarter 2
Quarter 3
Quarter 4
Total
Sources:
(a) RPW
(d) USPS-T-7 at 348
(f) USPS-T-7 at 350
(h) USPS-T-7 at 354
0.366
0.382
0.269
1.359
0.164
0.167
0.122
0.609