How will postal plan affect region?
Published 3:41 pm Sunday, September 8, 2024
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When Prince Edward County residents heard about the announcement made last week by the United States Postal Service, they had two questions. First, what will this do to my mail? And second, how will this affect mail-in ballots this November?
We have answers to both of those questions, but first, let’s explain what this is about. Last week, the U.S. Postal Service announced a 10-year strategy they say will improve mail service and reduce expenses. That’s understandably left many people skeptical. Called Delivering for America, the plan heads to the Postal Regulatory Commission Sept. 5 for its review and opinion of the 10-year strategy.
Philip Bogenberger works as a USPS spokesman for the Richmond region, of which Buckingham, Cumberland and Prince Edward counties are a part of. He said this 60-page plan is supposed to save about $30 billion over the next decade.
“The Postal Service delivers to 167 million addresses six days a week – today and in the future,” Bogenberger said. “Any proposed change is within the existing two-five day service standard. All First-Class Mail will be delivered within two-five days.”
The region served by USPS in Richmond was the first in the nation where a new Regional Processing and Distribution Center (RP&DC) opened in July 2023 under the DFA plan. However, the change was plagued with problems that prompted an audit by the USPS Office of Inspector General.
“While the Postal Service had successes when implementing its first RP&DC, it also faced many challenges and identified many lessons learned,” the OIG audit released in March 2024 stated. “The challenges caused the Postal Service to incur additional labor and transportation costs, totaling over $8 million in questioned costs over the first four months of operations. The challenges also contributed to a decrease in service for the Richmond region that continued four months after launch.”
What did the audit say?
The audit identified opportunities for the Postal Service to improve performance in the region and during implementation of future RP&DCs by reviewing facilities for pre-existing issues that could affect a successful rollout; including service performance as a measure of success; ensuring transportation schedules are aligned to operations and facilities adhere to the operating plans; and more effectively communicating with local management.
Ten recommendations were made by the auditor to USPS management in an effort to improve the effectiveness of the Delivering for America plan in Richmond.
All but three of these had already been implemented by the time the report was issued. Those not wrapped up, according to the OIG’s audit report, were coordinating the training of Richmond RP&DC management on how to engage and lead team members and provide adequate supervision of operations, and deploy management training at future RP&DC sites prior to launch, which comes with a $5 million price tag; updating its handbook to include the definition of service area, and clearly define when mail processing facility reviews are required; and communicating any impacts to customers when permanently moving processing operations of a three-digit ZIP Code to another processing facility.
That audit report prompted an April 1 joint statement from Democrat U.S. Sens. Mark R. Warner and Tim Kaine, and Reps. Jennifer McClellan and Bobby Scott, both Democrats, and Republican Reps. Rob Wittman, Abigail Spanberger, Bob Good and Jen Kiggans.
“It couldn’t be clearer that USPS has not been providing reliable service to Virginians, and we’ve been pressing for answers. This report pinpoints a number of issues, including a lack of coordination between USPS and staff at the Richmond Regional Processing and Distribution Center,” the officials said in their statement. “Going forward, USPS must provide more resources and clearer guidance to management and staff at RPDC, among other steps. We look forward to working with USPS to ensure that happens, the recommendations in the IG report are implemented, and mail delivery is timely for Virginians.”
Beginning the process
On Aug. 22, USPS filed notice of the Sept. 5 pre-filing conference with its regulatory body that begins the process of requesting a pre-regulatory conference so it can receive an advisory option on the plan before it is finalized, according to PRC’s webpage.
“After receiving an advisory opinion from the PRC, the Postal Service will consider the Commission’s opinion and finalize its decision,” the USPS release stated. “Central to the virtual conference discussion will be the proposed operational improvements and corresponding refinements to process, transport and deliver all categories of mail and packages through an integrated network without expanding the existing day ranges of service standards, and for some products shortening the current day ranges.”
USPS officials go on to explain these refinements will deliver important benefits to the organization and its customers as the Postal Service continues to implement a more efficient and effective operating model. “The proposed refinements within the existing service standards will enable the Postal Service to operate more reliably and at a lower cost to deliver, and with a more rational logistics approach applicable to today’s use of our Postal System,” according to USPS’s release.
Bogenberger explained the DFA plan is likely to speed up mail delivery to rural areas in Lunenburg and the surrounding areas.
“If a mailpiece enters the mailstream near a USPS Regional Processing and Distribution Center and is delivered to a rural area, it will get there as fast, if not faster, than current delivery,” he said. “If mail enters the mailstream from a rural area, it may take 12-24 hours extra but still within our service standards.”
Where does mail go?
Both now and in the future, Bogenberger said a majority of mail from rural areas like Buckingham and Cumberland will be delivered within three days or less. The same is true for Prince Edward.
“The proposed changes will maintain the existing one-five day service standards for First-Class Mail and are designed to enable the Postal Service to make optimal use of its updated and developing ground network,” the USPS release explained. “The streamlined processes for the integration of both mail and packages, will ensure efficiency and timeliness by enabling an integrated delivery network that avoids duplication and complexity. The refinements within the existing service standards are projected to enhance service reliability and predictability, crucial aspects of the Postal Service’s commitment to universal service.”
In its release, USPS pointed to four key improvements and adjustments to optimize service and reduce cost.
These include:
Moving to a more precise five-digit standard to simplify the process for customers to understand exactly when their mail will arrive and improve the reliability and predictability of delivery.
Adjusting pick-up and drop-off times of volume between post offices and processing plants when the post offices are far away from the regional hubs. USPS officials said this strategy will not only reduce transportation costs and enable earlier mail processing for most mail, but also contributes to reduced carbon emissions and truck trips to neighborhoods nationwide.
Expanding daily reach for most classes of mail and packages when traveling through the network; resulting in faster delivery expectations for some mail pieces. As an example, officials explained in the release that some mail and packages that used to take four days to deliver will now have a service standard to arrive in three days.
Recognizing the significant volume reduction of Single-Piece First-Class Mail and making the long overdue adjustments required, while committing to a three-day delivery standard for local single-piece First Class mail, and in some instances even achieving a two-day standard.
“On balance, the vast majority of First Class Mail will have a service standard in either the same timeframe, or faster than, the current service standards,” USPS officials explained. “All First-Class Mail will still be delivered within a maximum of five days, with a national average of approximately three days.”
How will it save money?
The plan points to $160 billion in reduced expenses, with the largest savings coming through integration of Medicare for workers and elimination of the retirement pre-funding requirement at $58 billion. The proposal then would show savings of $44 billion through pricing flexibility for market dominant products, $34 billion through increased efficiencies from mail processing, transportation, retail, delivery and administration; and $24 billion with addition of new competitive products, growth in package delivery and other pricing changes.
Postal Service officials explained in the document that it would not implement the proposed service standard changes any sooner than 90 days after a request for an advisory opinion is filed with PRC, meaning implementation would not occur until the next calendar year.
“As such, these proposed changes will not impact election mail for the upcoming election or our preparedness for peak season 2024,” officials said. “For the upcoming election, the Postal Service will again deploy our long-standing practices to ensure the appropriate handling and timely delivery of election mail; we will therefore be executing extraordinary measures beyond our normal course of operations in advance of Election Day throughout the nation.”