With all the attention to delivery delays over the past several months and the Postmaster General’s plans to relax delivery standards — as well as calls for more transparency about postal operations — this seems like a good time to launch a Service Performance Dashboard.
The Postal Service itself publishes a useful service performance dashboard, but it shows only quarterly performance scores, and it just goes back a year. The Postal Service has also started a second dashboard that uses its new organizational structure of divisions and regions, but at this point it only shows FY2021 Q1. For more detailed reports, you need to dig around in the website of the Postal Regulatory Commission, and the reports there usually need to be downloaded in order to see them. Some of the PRC’s reports, like those requested recently from the USPS as part of the annual compliance review (discussed in this post), are almost impossible to find if don’t know where to look.
The “Save the Post Office” Dashboard provides easy access to the recent performance reports shared by the Postal Service not only with the PRC but also with Congress, the courts (as part of litigation involving mail delays), and FOIA requests. The Dashboard has quick links to the reports, many of which are weekly rather than quarterly, and we’ve posted them on Google Drive so you don’t have to download to view them. The Dashboard also includes some charts showing trend lines over the past couple of years. In addition, the Dashboard page has a brief explanation of what “service standards,” “service performance” and “service targets” are all about.
There’s a link to the Service Performance Dashboard on the top menu, and a link is here.
By Steve HutkinsThe House Committee on Oversight and Reform has just posted a discussion draft of postal reform legislation in advance of Wednesday’s hearing with Postmaster General DeJoy and the Chairman of the Board of Governors, Ron Bloom. The draft has three main sections — one about creating a Postal Service health benefits program that includes Medicare, one on reforming the Retiree Health Benefit Fund obligation, and a third on service standards for on-time delivery.
The section on service standards comes first, and it is obviously a response to all the problems with poor service over the past seven months. It includes more stringent service performance reporting than currently shared with the Postal Regulatory Commission and the public, a tougher line on what happens when the Postal Service fails to meet the standards, and changes to the PRC’s advisory opinion process for reviewing a change in standards (including a report to Congress). The draft legislation concludes this section as follows:
“The United States Postal Service may not revise the service standards for market-dominant products in effect on the day before the date of enactment of this Act in a manner that lengthens delivery times before the date on which the report required by subsection (c) is submitted to Congress.”
The Committee’s meeting on Wednesday is clearly going to address the past problems with service performance and what to do about them moving forward. (There’s more about the delays here.) It’s also clear that the Committee is aware of the Postmaster General’s plans to change service standards, as was reported recently in a great scoop by the Washington Post, and the Committee wants to head the PMG off at the pass.
Aside from the few clues in the Post’s article, we haven’t heard anything about what these changes in service standards might be. Perhaps the Postmaster General will reveal more in Wednesday’s hearing. While we wait, let’s speculate. Read More
By Steve HutkinsEarlier this week a group of mailers’ associations continued their effort to convince the DC Circuit Court to stop the Postal Service from increasing rates under the new authority it was recently granted by the Postal Regulatory Commission.
The Postmaster General has told the mailers that another rate increase, based on the new authority, is “imminent.” The exact size of the increase has not yet been revealed, but the Postal Service’s calculations indicate it could be as large as 5.56 percent. Market Dominant revenues in 2020 were about $42 billion, so a full increase could mean $2.3 billion in additional costs for mailers.
In December, the Mailers filed appeals on the PRC’s order approving the new system in the DC Circuit. On January 27, 2021, they proceeded to file a request for a stay seeking to prevent the order from being implemented while the court heard the appeal. On February 8, the Commission filed its brief opposing the request for a stay, and the Postal Service filed its own opposition as well. On Tuesday of this week (February 16), the Mailers filed their reply. (For more background about the case, see this previous post and this one too.)
The issues in the case are numerous and complex, but the crux of the matter appears to be something like this:
The current rate system was established in 2006 under the Postal Accountability and Enhancement Act. The key passage (39 U.S.C. §3622) says, “The Postal Regulatory Commission shall, within 18 months after the date of enactment of this section, by regulation establish (and may from time to time thereafter by regulation revise) a modern system for regulating rates and classes for market-dominant products.”
Section 3622(d)(1) goes on to say, “The system for regulating rates and classes for market-dominant products shall — (A) include an annual limitation on the percentage changes in rates to be set by the Postal Regulatory Commission that will be equal to the change in the Consumer Price Index.”
Section (d)(3) then says that ten years after the enactment of PAEA, the Commission will review the system and determine if it’s fulfilling the objective enumerated in the statute. If it’s not, the Commission shall “make such modification or adopt such alternative system for regulating rates and classes for market-dominant products as necessary to achieve the objectives.”
In other words, PAEA directed the Commission to create a modern rate system and said that the system needed to include the CPI rate cap. PAEA also said the Commission should review the system after ten years and possibly change it or adopt a new one.
The Mailers argue that section (d)(1) means that any new system developed by the Commission must continue to include the price cap. The Commission and the Postal Service argue that section (d)(1) means that the price cap had to be a component of the initial rate system in 2007, but it did not need to be a part of the alternative system developed ten years later.
The statute is arguably ambiguous on this issue, and the opposing briefs develop various reasons why one interpretation is better than the other.In most cases of major legislation like PAEA, there’s a report by the Congressional committee responsible for crafting the legislation, and one could turn to it for help in determining legislative intent. During an earlier version of PAEA, back in 2004, there was such a Senate Committee Report, but no report about the final version has been published. The Senate staff probably wrote such a report, but for some reason it has never been released. If it were available now, it might address what Congress intended. And if if were formally approved by the Senate Committee on Governmental Affairs, the report could also become significant in the mailers’ appeal.
As it is, a lot of weight falls on remarks made to the Senate by Susan Collins, one of the architects of PAEA, on December 8, 2006, the day before PAEA would be passed by the Senate. Read More
By Steve Hutkins
The Postal Regulatory Commission’s annual compliance review ordinarily focuses on postal rates, but this year, due to widespread reports of mail delays over the past several months, the Commission has been scrutinizing on-time service performance. Over the past few weeks, the Commission and its newly appointed Chairman have filed a number of information requests seeking data from the Postal Service about the scope and causes of these delays.
According to the service performance data provided by the Postal Service, the delays began at a modest level in March 2020 when the pandemic started, deepened noticeably in July when the Postal Service implemented cost-cutting operational changes, improved modestly in the fall, and then got much worse in December with the holiday mail crush.
As for the causes of the delays, the Postal Service has blamed COVID — the surge in packages, employee availability problems, more dependence on surface transportation because of a lack of available space on aircraft, and so on. It has also cited bad weather, the need to prioritize election mail and other factors. The Postmaster General has acknowledged that operational changes made in July caused delays, but the Postal Service says the system adjusted to these changes in a matter of weeks and they were not a factor in the delays that followed.
The various causes are difficult to isolate and quantify, particularly because they interact and compound each other. So the reports submitted to the Commission do not provide a simple explanation of what’s behind the poor service, but they can shed some light on the question and perhaps suggest paths toward a solution. Read More
By Steve Hutkins
The Postal Regulatory Commission’s annual compliance review ordinarily focuses on postal rates, but this year, due to widespread reports of mail delays over the past several months, the Commission has been scrutinizing on-time service performance. Over the past few weeks, the Commission and its newly appointed Chairman have filed a number of information requests seeking data from the Postal Service about the scope and causes of these delays. Read More
The CPWU Winter 2021 Newsletter has articles about why Postmaster General DeJoy should be dumped, the possible implications of the Senate going Democrat, and the contrast between DeJoy’s vision and what a public vision of the Postal Service looks like. Read the newsletter here.
On November 30, 2020, the Postal Regulatory Commission issued a 484-page order revising the rate system for Market Dominant products. Under the new system, the Postal Service will be able to raise rates beyond the Consumer Price Index, which it was prevented from doing (aside from the provision for an exigent increase) by the Postal Accountability and Enhancement Act of 2006. (See this previous post for more about the order.)
Last week, the Postal Service gave the PRC its calculations for the two new authorities crafted by the Commission. The Notice of Calculations of Future Rate Authorities indicates that the density-based rate authority will be 4.5 percent, and the retirement-based rate authority will be 1.06 percent, for a total of 5.56 percent.
Those potential increases are on top of the approximately 1.8 percent increase for First-Class Mail and 1.5 percent increase for other categories the Postal Service has already proposed for 2021. If the Postal Service were to exercise its full rate authority, the total increase would thus be over 7 percent. The new system also gives the Postal Service authority for an additional 2 percent increase for products that don’t cover their attributable costs.
The new rate authorities will take some time to go into effect in a price hike, almost certainly not before summer 2021. And it’s very possible that the Postal Service will not take full advantage of its new authority and instead bank some portion for future use.
The rate authority numbers presented last week are considerably greater than what the Commission had envisioned over the past couple of years as it was developing the formulas for future above-CPI increases. This table from the order shows what the density-based increases would have been in previous years based on the new formula. The average authority for this period would have been about 1.23 percent annually; the highest was the 2013 number, 2.69 percent. Read More
By Steve Hutkins
Fairhope Courier, November 15, 1961: “Pulitzer Prize Winning Author Visits Spanish Fort Post Office: Harper Lee, author of the Pulitzer Prize winning novel, To Kill A Mocking Bird, chats with Harmon Hanson (photo above) while admiring his newly opened post office at Spanish Fort. Miss Lee is a frequent visitor to this area and was delighted with the addition of this facility. Residents too, are singing the praises of this office — Christmas mails will be handled with greater speed. Many have rented post office boxes, finding it is convenient to receive mails from early morning until night.”A few weeks ago — nearly sixty years after Harper Lee’s visit — the Postal Service announced it was closing the post office in Spanish Fort, Alabama, effective January 15, 2021. Today the City of Spanish Fort filed an appeal with the Postal Regulatory Commission to stop the closure. The appeal, along with extensive documentation about the case, including bid solicitations and emails, can be found here.
The gist of the appeal is that the Postal Service has not gone through the normal discontinuance procedure required by 39 C.F.R. 241.3, which includes a feasibility study, questionnaires to postal customers, a public meeting, an opportunity to submit comments, access to the administrative record, and the right to appeal to the PRC.
As it has in the past with similar appeals, the Postal Service will soon file a motion to dismiss the appeal, arguing that that the Spanish Fort post office is a contractor-operated unit, not a USPS-operated facility, so the post office is not actually a “Post Office” and the closing is not covered by the regulations that govern discontinuances.
The Commission has dismissed several similar appeals on contract offices over the past decade, and most likely it will follow its own precedents and do so again. The Commission’s position is a slight variation of the Postal Service’s rationale. The Commission says that the discontinuance rules may apply to a contract unit but only if it is the “sole source” of postal services in the community.
The Commission will probably find a way to dismiss the appeal anyway, perhaps by expanding the geographic range of “community” to include nearby communities that do have post offices, as well as noting that one can always do postal business online. Read More