Press release from the issuing company
Washington, DC – The Postal Regulatory Commission (Commission) today issued its statutorily mandated Annual Compliance Determination (ACD) assessing the Postal Service’s compliance with pricing and service performance standards in fiscal year (FY) 2015. The most pointed critiques identified in this year’s ACD relate to service performance generally, and cost and service problems with flat-shaped mail (flats).
Failures in Overall Service Performance:
The majority of products failed to meet service performance targets for FY 2015. In particular, service performance results for all First-Class Mail products did not meet their targets. The Commission determined that First-Class Mail Single-Piece Letters/Postcards were not in compliance in FY 2015, and directs the Postal Service to improve service performance and provide a comprehensive plan within 90 days.
Cost and Service Problems with Flat-Shaped Mail:
In its FY 2014 ACD, the Commission issued directives to the Postal Service for products comprised of flats to improve service performance results during FY 2015 or explain why efforts to improve performance were ineffective and identify further planned changes to improve those results. This year’s review of flats shows results for these products remained substantially below their targets, and in all but one case, the performance results declined. In FY 2015 the attributable costs of two products consisting of flats, Outside County Periodicals and Standard Mail Flats, combined to exceed revenues by over $1 billion. The ACD further notes that the Postal Service’s related efforts to improve flats performance and profitability are ongoing. As a result, the Commission requires the Postal Service to provide a report on flats issues within 120 days that quantifies what the Commission understands to be the main drivers of these significant and ongoing service failures and cost issues. The Commission will evaluate the report and may use the information provided to form the basis for establishing a new proceeding or other appropriate action.
Other Principal Findings:
The number of facilities under suspension increased by 80 locations from the end of
FY 2014 to the end of FY 2015. The Commission requires the Postal Service to reduce the number of facilities under suspension in FY 2016 or provide a detailed explanation in its FY 2016 Annual Compliance Reportdiscussing why it was unable to do so.
As directed by statute, the ACD was prepared after a 90-day review of the Postal Service’s 2015 Annual Compliance Report and supplemental material, and evaluation of public comments.
The full report, including an executive summary, is available at www.prc.gov.
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