PostalReporter.com Blog

Update: The USPS made a change to Postal Operations Manual 532, Highway Contract Service, in 2003.  Supply Management deleted the limitation “in sparsely populated areas.”  This gave them the green light to expand everywhere.

Don Cheney
Auburn, WA

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POSTAL BULLETIN 22110 (9-4-03)

Highway Contract Service

Effective September 4, 2003, the Postal Operations Manual (POM) is revised slightly to clarify language regarding Highway Contract Service. We will incorporate these revisions into the printed version of POM 10 and also into the online version of the POM.

532 Types of Service

532.1 General

Revise the last sentence of the paragraph by deleting the last four words, “in sparsely populated areas,” to read as follows:

“Box delivery routes are similar to rural delivery service and provide home or business delivery of mail.”
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From PostalReporter.com reader: Re:  Postal Service’s plan to outsource delivery work through expanded use of Contract Delivery Services

“Starting in January 2007, there has been a surge in new delivery areas being contracted out. The NALC and NRLCA should think about joining together to fight this threat.”

http://spokane.craigslist.org/gov/272531471.html
http://montana.craigslist.org/gov/272547424.html
http://kansascity.craigslist.org/gov/278623722.html
http://kansascity.craigslist.org/gov/278768652.html
http://springfield.craigslist.org/gov/278761916.html
 
http://www2.fbo.gov/spg/USPS/TP/CMTP/200-48-07/SynopsisP.html
http://www2.fbo.gov/spg/USPS/TP/CMTP/200-38-07/SynopsisP.html
http://www2.fbo.gov/spg/USPS/TP/CMTP/200-33-07/SynopsisP.html
http://www2.fbo.gov/spg/USPS/TP/CMTP/200-26-07/SynopsisP.html
http://www2.fbo.gov/spg/USPS/TP/CMTP/200-23-07/SynopsisP.html
 
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Contract Delivery Service

The service provided by Contract Delivery Service is equal to that provided by city carriers and rural carriers. Contract suppliers not only deliver all classes and types of mail to their customers’ mailboxes six days per week, but they can also sell stamps and accept Special Services Mail such as Certified Mail, Registered Mail, and Insured Mail, and sell Postal Money Orders. Customers can also take advantage of Carrier Pickup on Contract Delivery Service routes.
 
Contract Delivery Service - Contracting Opportunities

Contract Delivery Service is a contractual agreement between the U.S. Postal Service and an individual or company for the delivery and collection of mail. The typical service required at the local Post Office will involve sorting mail for the route, driving to the route, delivering mail to specified addresses, picking up collection mail, and returning to the Post Office. Each contract includes a delivery schedule, a complete route description, and a description of basic responsibilities. The contract route will operate six days per week, Monday through Saturday, and does not include holidays. The carrier is required to use their own vehicle for mail delivery service. The average route will require approximately four to eight hours per day to complete, depending on the size of the route.
 
If you or your company are interested in receiving solicitations for Contract Delivery Service, please complete PS Form 5436, Mailing List Application - Mail Transportation Services and mail it to the contracting officer in your area. This information is available in the back of Publication 33, Mail Transportation Contract Guide at http://www.usps.com/cpim/ftp/pubs/pub33/welcome.htm.     

Source:  http://www.usps.com/communications/organization/contract-delivery.htm
 
Related link: Top House and Senate Leaders Back NALC on Contracting Out

From Flickr Photos

From Flickr Photos

The Postal Regulatory Commission (PRC) issued the following press release :

WASHINGTON, DC, FEBRUARY 22, 2007: The Postal Regulatory Commission will announce its Recommended Decision to the Governors of the U.S. Postal Service at 11 AM, Monday, February 26, 2007 in its Hearing Room located at 901 New York Avenue, NW, 2nd Floor, West Tower, Washington DC.

The decision will include recommendations on postal rates and fees affecting all mail users. The decision will also address the request to establish a “Forever Stamp” that would allow consumers the opportunity to purchase a non-denominated, non-expiring stamp that would be valid regardless of future rate changes.

Related links:

- MPA Awaits Postal Rate Hike - MEDIAWEEK
- USPS prepares mailers for new postal law effects
- USPS asks PRC to approve fee schedule for ‘premium’ stamped stationery

The following is a press release from the U.S. Department of Justice, U.S. Attorneys Offices:

FEBRUARY 8, 2007

KANSAS CITY, Mo. – Bradley J. Schlozman, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to receiving child pornography through the mail.

Mark Anthony Mayfield, 51, of Independence, pleaded guilty before U.S. District Judge Scott O. Wright this morning to the charge contained in a June 28, 2006, federal indictment. Mayfield, who was employed as a mail handler, is the former administrative vice president for the Kansas City, Missouri branch of the Mail Handlers Union and, at the time of the offense, acting Local Vice President.

As part of an undercover investigation, on Oct. 11, 2005, Mayfield received a letter and questionnaire from a company offering illegal videotapes for sale. Mayfield filled out the questionnaire, indicating his interest in several categories – including child pornography – and returned it in the mail.

Mayfield later mailed another letter, enclosing $125 in cash and ordering several DVDs that were described as containing child pornography. Mayfield was arrested soon after the DVDs were delivered to his home on Dec. 15, 2005. During the execution of a search warrant immediately after the delivery, law enforcement officers found 440 images of child pornography in Mayfield’s briefcase. In a search of Mayfield’s home computer, officers found 150 images of child pornography along with six videos, including one movie of full sexual intercourse with a child apparently under the age of 12.

By pleading guilty today, Mayfield also agreed to forfeit to the government any property used to commit the offenses, including a Gateway computer tower containing two hard drives and two printers.

Under federal statutes, Mayfield could be subject to a mandatory minimum sentence of five years in federal prison without parole, up to 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the U.S. Postal Inspection Service and the Pueblo County, Colo., Sheriff’s Department.

From USPS News Link:

The Facts

The new postal law abolishes the mandate that the Postal Service break even. Over the past 35 years, the Postal Service has succeeded in controlling/reducing costs and setting rates, thus generating sufficient revenue to cover costs and break even.

The new law creates an additional incentive for the Postal Service to reduce costs and set prices to make a profit on both market-dominant and competitive products. The goal is to invest the profit (or retained earnings) back into the business, so the Postal Service can continue to automate processing and increase the value of its products and services.

The PMG’s View

Under the new law, we all have to start thinking of the Postal Service as a business. That’s because we won’t be operating under a “break-even” requirement any more. Just as a private-sector business can make a profit, the Postal Service is now able and encouraged to retain earnings ? a real incentive to keep our own costs below inflation.

By helping to pay for big-ticket items like facilities and equipment, retained earnings can limit borrowing and interest expenses. They can help us cover a revenue shortfall ? without raising rates ? if for example the Consumer Price Index moves in an unexpected direction.

Bottom line, retained earnings can give us a cushion for a rainy day. But the law doesn’t guarantee that there will be retained earnings. That’s something each of us has to work at by watching every penny we spend, every day.

This is the continuation of a series of weekly news stories featuring the Postmaster General giving his views on the new postal law and what it means to the future of the Postal Service and its employees. Employees with comments or questions about this article are welcome to e-mail them to: postallawQandA@usps.gov. Selected responses with answers will appear in a future issue of USPS News Link.

APWU News Feb. 20, 2007

The union has been informed that new pay rates for APWU-represented employees were implemented in Pay Period 04-2007 and will appear in checks dated Feb. 23. The new implementation date was two pay periods ahead of the date initially promised by the Postal Service.

The new pay rates reflect the 1.3 percent raise negotiated as part of the 2006-2010 Collective Bargaining Agreement. Checks for the back-pay period (from Nov. 25, 2006) will be disbursed at a later date, which the union will publicize as soon as the date is known

 From NALC News Bulletin February 16, 2007

Young, State Chairs Fan Out Across Capitol Hill
To Ensure Lawmakers are Aware of USPS Plans

NALC President William H. Young and union legislative leaders from all 50 states swept through offices of House and Senate members this week to bring them up to date on issues critical to letter carriers in the 110th Congress, especially the Postal Service’s plans to outsource delivery work through expanded use of Contract Delivery Services.

The NALC state chairs were in the nation’s capital for the entire week for annual training sessions and a full schedule of lobbying their respective senators and representatives. 

President Young, as part of a special AFL-CIO group, met with several Democratic Party leaders in both the Senate and House including Speaker of the House Nancy Pelosi (D-CA), and Senate Majority Leader Harry Reid (D-NV), covering a wide range of issues that affect working men and women. Young made sure contracting out and abuses by the Postal Service’s Offi ce of Inspector General were on the agenda.

“I received assurance from almost all of them that that (outsourcing) was a deal that would not work and they would help us fight contracting out at the Postal Service,” Young said. “They seemed very sympathetic.”

At the same time, the state chairs were meeting with members of the House and Senate or their key staff officials about contracting out and other issues. (more…)

Update: Netflix has issued the following press release:

Netflix Inc. today announced that Chief Operations Officer Bill Henderson is planning to become a strategic advisor to the company and that Vice President of IT Development Andy Rendich, an eight-year Netflix executive, has become interim head of Operations. Mr. Henderson is expected to serve as a consultant to Netflix for at least the next two years.

“Andy was one of my stars and I have total confidence in him running Operations,” said Mr. Henderson.

“Bill’s unprecedented operational expertise as former Postmaster General of the United States has contributed to Netflix’s tremendous gains in automation and efficiency,” said Netflix Founder, Chairman and CEO Reed Hastings. “We look forward to Bill’s continued participation in the company’s growth

 According to Valleywag, a tech gossip blog Former Postmaster General William “Bill”  Henderson was demoted from the COO slot at Netflix, “taking on the likely specious title of “strategic advisor” till his options vest or something.”

This ( below) was sent out on Friday to all employees. Bill Henderson has been in the job for all of one year, since he was already retired from the post office when netflix came calling last year it is a bit odd that after only one year he now is a “strategic advisor”… at least it wasn’t special projects!! When you add that the BOD (SEC filings) just gave raises to Barry McCarthy, Reed Hastings and Leslie Kilgore and NOT Bill Henderson it’s pretty obvious what happened here. He was only a hire to liason with the Post Office as the real operations work was done already and he had absolutely nothing to do except make sure the post office didn’t try and screw netflix …

more at Valleywag

A real mailbox outside of a farmhouse in Illinois

 Flickr Photos

see another view of mailbox

From Government Accountability Office (GAO) report: U.S. POSTAL SERVICE Vulnerability to Fluctuating Fuel Prices Requires Improved Tracking and Monitoring of Consumption Information

The U.S. Postal Service (the Service) is dependent on fuel to support its mail delivery and transportation networks, as well as to heat and operate the over 34,000 postal facilities it occupies….The Service’s transportation and facility fuel costs have grown in recent years as fuel prices, particularly for gasoline, diesel, and jet fuel have increased….hile fuel costs have directly pressured its financial condition, increasing compensation and benefits were the primary driver of the $3.4 billion operating expense increase in fiscal year 2006. The Service absorbed fuel cost increases through cost containment efforts and increased revenues from the January 2006 rate increase, allowing it to achieve net income for the year. Nevertheless, the Service remains vulnerable to fuel price fluctuations, due in part to its purchasing process, which involves buying fuel as needed, often at retail locations. The Service is challenged to control fuel costs due to its expanding delivery network and inability to use surcharges….

The U.S. Postal Service (the Service) is dependent on fuel to support its mail delivery and transportation networks, as well as to heat and operate the over 34,000 postal facilities it occupies. The Service has been challenged by recent fuel price fluctuations, and the Postmaster General stated that gas prices were a primary reason for the proposed 2007 postal rate adjustment. Based on this challenge, you asked GAO to review (1) how the Service’s fuel costs changed recently and the impact of these cost changes on the Service’s financial and operating conditions, and (2) how the Service’s actions to control fuel costs and mitigate risk compare to leading practices and federal requirements. GAO collected fuel cost and price information; interviewed Service fuel officials; and compared the Service’s actions against leading practices and federal requirements

The Service’s transportation and facility fuel costs have grown in recent years as fuel prices, particularly for gasoline, diesel, and jet fuel have increased. For example, fuel cost growth for its vehicle fleet was due to rising prices rather than consumption. While fuel costs have directly pressured its financial condition, increasing compensation and benefits were the primary driver of the $3.4 billion operating expense increase in fiscal year 2006. The Service absorbed fuel cost increases through costcontainment efforts and increased revenues from the January 2006 rate increase, allowing it to achieve net income for the year. Nevertheless, the Service remains vulnerable to fuel price fluctuations, due in part to its purchasing process, which involves buying fuel as needed, often at retail locations. The Service is challenged to control fuel costs due to its expanding delivery network and inability to use surcharges. GAO found some of the Service’s actions to control fuel costs to be generally consistent with procurement and consumption practices advocated by leading organizations and federal requirements for purchasing alternative fuel vehicles. However, GAO also identified areas where more actions could be taken (see table).

GAO recommends that the Postmaster General take actions to improve the Service’s tracking and monitoring of transportation and facility-related fuel consumption data. GAO provided a draft of this report to the Service for its review and comment. The Service agreed with GAO’s findings and recommendation and stated that it will take steps to improve its information systems that capture consumption data.