PRC Approves USPS Petition to use Internal Measurement System

07/06/2018

Postal Regulatory Commission issued a ruling in PI2015-1 that grants the Postal Service’s petition to use internal measurement systems to measure service performance on its products.

This will replace the External First-Class (EXFC) measurement system used to measure delivery performance. The internal measurement system includes a greater volume of mail than the sampling method.

It was on January 29, 2015, that the Commission established Docket No. PI2015-1 to consider a Postal Service proposal concerning new internal service performance measurement systems for several of its market dominant products, including products within domestic First-Class Mail, Periodicals, Marketing Mail and Package Services. Over the duration of this docket, the Postal Service has progressed from presenting an “idea” for new measurement systems, to developing and implementing systems that report service performance for a variety of market dominant products.

Over that time, the Postal Service proceeded with the development and implementation of these new measurement systems for its own internal purposes. The Postal Service did not base its proposals on costs. However, the increase in costs due to implementing and operating the internal service performance measurement system will be offset by the retirement of the legacy EXFC measurement system. This includes the EXFC end-to-end measurement system applicable to First-Class Mail, single-piece letters and flats. It also includes the use of EXFC reporters for generating Last Mile data for other mail products.

In the docket, the Postal Service asks the Commission to consider whether or not the Commission would accept data generated by these systems for the purpose of service performance measurement reporting as required by regulation and statute. 39 U.S.C. § 3652 requires that the Postal Service provide an annual report to the Commission analyzing the quality of service “for each market dominant product provided in such year” by providing “(B) measures of the quality of service afforded by the Postal Service in connection with such product, including— (i) the level of service (described in terms of speed of delivery and reliability) provided; and (ii) the degree of customer satisfaction with the service provided.”