From APWU: "As previously mentioned, the Postal Service has notified the APWU of their intent to convert all of PVS operations in California to HCR.  The Postal Service and the APWU have a scheduled meeting on July 31, 2012 to discuss the specifics of this decision pursuant to Article 32 of the National Agreement.  However, the Postal Service notified our Western Region Coordinator, Mr. Gonzalez, yesterday of their intent to withhold pursuant to the provisions of Article 12.5.C.5. before attending the scheduled meeting."

USPS justification:

Legislation approved in 2008 by the California Air Resources Board (CARB) requires significant reduction in vehicle emissions to meet federally imposed clean air standards. Recent enactment of the law affects 446 heavy duty fuel vehicles (cargo vans, tractors and spotter equipment) that are currently in-use at processing and distributions centers, processing and distribution facilities and distribution centers within Pacific Area. The legislation was enacted in 2012. 

The Postal Service is mandated to procure transportation that meets all service by the most economical means. In regards to highway transportation, service may be via Highway Contract Route (HCR) or Postal Vehicle Service (PVS). After comprehensive evaluation and due consideration of all critical factors (as cited in Subcontracting Article 32.2A of the national agreement between USPS and APWU).
results indicate that the Postal Service will benefit from subcontracting PVS at all Pacific area mail processing and network distribution facilities except Honolulu HI.

Cost Evaluation Form 5505 is used to compare costs between PVS and HCR service and to ensure comparison of like service. Results from this analysis indicate that the total annual PVS costs at thirteen (13) locations total approximately $116,398,676.03 versus an estimated cost for HCR service at $32,924,833.66. Therefore, the Postal Service would benefit from outsourcing PVS in the Pacific Area by reducing costs by an estimated annual savings of $86,945,176.76

1. This is to advise you of the intent of the Los Angeles District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign one hundred sixty-seven (167) vehicle operators (77 MVO and 90 TTO) from the craft and/or installation at the Los Angeles bid cluster (Event 39842). The basis is an approved Area wide mode conversion. The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement By copy of this notice, we will withhold up to one hundred sixty-seven (167) residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle operators. Since all Postal vehicle operations in California are being contracted, the provisions of Article 12.5.C.5.b(1)(a) to adjust the excess to the maximum extent possible by making voluntary reassignments to vacant motor vehicle craft positions in installations within 100 miles have been met The impacted vehicle operators retain the right to seek a reassignment outside of California if they elect to do so. Attached you will find copies of the automated impact statement, the operational data that supports the excessing, the list of sites at which withholding has been authorized and the names of the junior impacted vehicle operators.

6 This is to advise you of the intent of the Bay Valley District to utilize the provisions of Article 12.5.C,5 of the National Agreement to involuntarily reassign thirty-eight (39) vehicle operators (19 MVO and 20 TTO) from the craft and/or installation at the San Jose bid cluster (Event 39917). Thirty-eight (38) are full-time employees and one employee is a PTF. The PTF will be converted to FT status, given a NTFT schedule and excessed as a full-time employee. The basis is an approved Area wide mode conversion. 2012-san-jose_mvs_pvs_impact-1207274.pdf

7.This is to advise you of the intent of the Bay Valley District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign two (2) vehicle operations assistants, bulk mail from the craft and/or installation at the San Francisco NDC bid cluster (Event 40093). The basis for this impact is an approved Area wide mode conversion.

10. This is to advise you of the intent of the San Diego District to the provisions of Article 1 of the National Agreement to involuntarily reassign two vehicle dispatch clerks from the craft and/or installation at the San Diego bid cluster (Event 39876), The basis is an approved Area wide mode conversion,The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement By copy of this notice, we will withhold up to two (2) residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle clerks,

11.This is to advise you of the intent of the Santa Ana District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign one (1) Clerk, Vehicle Dispatcher from the craft and/or installation at the Santa Ana bid cluster (Event 39916). The basis is an approved Area wide mode conversion.

12. This is to advise you of the intent of the Santa Ana District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign twenty-four (24) vehicle operators (9 MVO and 15 TTO) from the craft and/or installation at the Long Beach bid cluster (Event 39838). The basis is an approved Area wide mode conversion. The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement By copy of this notice, we will withhold up to twenty-four (24) residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle operators.

13 This is to advise you of the intent of the Sacramento District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign ninety-five (95) vehicle operators (6 MVO and 89 TTO) from the craft and/or installation at the Sacramento bid cluster (Event 39836). The basis is an approved Area wide mode conversion. The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement. By copy of this notice, we will withhold up to ninety-five (95) residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle operators. Since all Postal vehicle operations in California are being contracted, the provisions of Article 12.5.C.5.b(1)(a) to adjust the excess to the maximum extent possible by making voluntary reassignments to vacant motor vehicle craft positions in installations within 100 miles have been met. The impacted vehicle operators retain the right to seek a reassignment outside of California if they elect to do so.
 

14. This is to advise you of the intent of the Sacramento District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign three (3) Vehicle Operations Clerks (1 Clerk, Vehicle Dispatching and 2 Vehicle Dispatchers) from the craft and/or installation at the Sacramento bid cluster (event 39856). The basis is an approved Area wide mode conversion. The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement. By copy of this notice, we will withhold up to three (3) full-time residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle clerks.

15 This is to advise you of the intent of the San Diego District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign thirteen (13) vehicle operators (5 MVO and 8 nO) from the craft and/or installation at the San Bernardino bid cluster (Event 39796). The basis is an approved Area wide mode conversion. The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement. By copy of this notice, we will withhold up to thirteen (13) residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle operators.

16. This is to advise you of the intent of the San Diego District to utilize the provisions of Article 12.5.C.5 of the National Agreement to involuntarily reassign ninety-nine (99) vehicle operators (36 MVO and 63 TTO) from the craft and/or installation at the San Diego bid cluster (Event 39839). The basis is an approved Area wide mode conversion. The impacted employees will be notified of their involuntary reassignments by separate letter. Based upon the availability of residual/withheld assignments, it may be necessary to utilize the provisions of Article 7.2.B of the National Agreement to detail some of the impacted employees in order to provide them with a work opportunity until sufficient residual/withheld assignments can be identified for their placement By copy of this notice, we will withhold up to ninety-nine (99) residual assignments in the clerk, carrier, mail handler, vehicle maintenance or custodial crafts in sites within a 50 mile radius of the impacted bid cluster for placement of the impacted vehicle operators