PRC Orders Second Order Concerning USPS Service Performance Measurement

07/20/2017

The Postal Regulator Commission has ordered a second order concerning service performance measurement.

The order provided background that “on January 29, 2015, the Commission established Docket No. PI2015-1 to consider a Postal Service proposal to develop 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.The Postal Service appears to have been making steady progress in the development of the new measurement systems since that time.”

This second order calls out information that is still outstanding and orders:

1. The Postal Service shall provide the information described in the body of this Order.

2. The Postal Service shall plan to run the External First Class and internal measurement systems in parallel for sufficient time to ensure the internal system is operational and verifiable.

The following items are listed in the order as being outstanding:

“To gain an understanding of how the proposed measurement system would be audited, the Commission asked the Postal Service to provide the following: 

  • the contractual statement of work describing the auditing and reporting tasks required of the contractor,  all documentation developed by the contractor explaining how it intends to perform audits and develop reports, 
  • the “trial run” audit report provided by the contractor, and 
  • the first official audit report encompassing at least one quarter’s data provided by the contractor.”

The second order also states “the Commission remains concerned about the representativeness of the proposed systems given the significant differences in service performance results obtained using the proposed versus the legacy systems for a number of measurements. While the Postal Service has provided some information concerning this issue, the Postal Service must present clear and convincing evidence that the differences are not the result of the proposed system being less representative than the legacy system. For example, differences in First-Class Mail scores that result from differences in the characteristics of the mail being measured by each system could shed light on the representativeness of the proposed system. Representativeness of a proposed measurement system is a major consideration when evaluating any new service performance measurement system.”