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Distribution Directions is published by Brown Logistics Services and written by
Erv Drewek
Erv Drewek
Distribution / Postal Affairs Manager

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Dist. Directions Archives

Distribution Directions Vol 9 No 17: FSS Lite, Retirements, Postal Reform Bills, Price Adjustment | Print |  E-mail
Tuesday, April 12, 2011

USPS Looks to the Future With FSS Lite

The United States Postal Service (USPS) is currently conducting market research and seeking to identify potential sources for a Phase II of their Flat Sequencing System (FSS) Program. Their Phase I designed machine currently in deployment is a large system that was primarily intended to accommodate high mail volume processing runs and targeted for the most highly populated flats mailing markets. Phase II is seeking and envisions a smaller footprint FSS (FSS Lite) machine as a solution to efficiently, reliably, and accurately sort and sequence flat mail to the order in which the mail is delivered on a letter carrier's route (Delivery Point Sequence or DPS). The USPS seeks a system which can be deployed nationally and incrementally to provide maximum flexibility and efficiency in the DPS of flat mail within the existing and future Postal Service infrastructure.

Source: Federal Business Opportunities


Update: USPS Retirements

Congressman Darrell Issa complained recently that not enough Postal Service employees are retiring and hinted at legislation that would force more retirements. But, like USPS executives, he doesn't seem to be looking at the major reason postal employees are reluctant to leave. First, consider the California Republican's comments during a House Oversight Committee hearing about the Postal Service (starting at about the 2:31:30 mark): "You already have 100,000 too many [employees] today. I've asked my staff to look at a lot of areas that we may legislate." (He seems to be getting soft on the Postal Service: Six months ago, he said USPS had "200,000 people who should be retiring.") "What we probably need to do is bite the bullet one time and figure out how we’re going to retire people that are over 55 and have over 20 years of service to help get your number down," Issa said. "Voluntary departures aren't working." Citing an attrition rate of barely over 1%, he added, "Any private company would love to have the attrition you have. You still have two people that are 98 years old on the payroll."

Source: Dead Tree Edition


Postal Reform Bills Introduced to Congress

Two legislators have introduced postal reform bills designed to restore stability to the cash-strapped agency and help it survive tough times. Rep. Stephen Lynch (D-MA) introduced H.R. 1351, which would correct the overfunding of the Postal Service’s pension accounts. Rep. Gerry Connolly (D-VA) introduced H.R. 1262, which would modernize the Postal Service business model. Lynch’s bill, “The USPS Pension Obligation Recalculation and Restoration Act of 2011,” instructs the Office of Personnel Management (OPM) to recalculate the Postal Service’s payments to the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) using updated methodology. Independent actuarial studies have concluded that as a result of improper funding formulas, the USPS has overpaid CSRS by $50 billion to $75 billion. FERS overpayments are estimated at $6.9 billion. Connolly’s bill, “The Reform the Postal Service for the 21st Century Act,” would modernize the Postal Service’s business model and enable it to continue to provide universal service to the American public, improve efficiency, and foster postal economic growth.

Source: Ruralinfo


Price Adjustment

Just a reminder, the first mailing services price change in nearly 2 years takes effect April 17th. “While changing pricing is always a difficult decision, we have made every effort to keep the impact minimal for consumers doing business with us,” said PMG Pat Donahoe. “We will continue to balance business needs against the needs of our customers.” The 1.7 percent average increase is at or below the rate of inflation as measured by the Consumer Price Index — although actual percentage price increases for various products and services vary.

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