USPS Compliance Report, Fiscal Year 2025
Summary
The Postal Regulatory Commission received and accepted a compliance report from the United States Postal Service covering Fiscal Year 2025. The filing, submitted on March 27, 2026, contains a table of contents listing sections on the organizational structure of the postal system, competitive products, institutional costs, and related financial and operational disclosures. The full substantive content of the report is not readable in the available document text.
What changed
The Postal Regulatory Commission accepted a compliance report from the USPS for Fiscal Year 2025, filed on March 27, 2026. The document appears to be a table of contents listing multiple regulatory sections covering the organizational structure of the postal system, service performance metrics, financial disclosures, and cost attribution under the Commission's regulatory framework. The substantive content of the report is not legible in the available source text.
Affected parties — primarily the USPS and entities it serves — should monitor the PRC's docket for the full substantive filing and any subsequent PRC determinations regarding the FY2025 compliance period.
Archived snapshot
Apr 21, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Postal Regulatory CommissionSubmitted 03/27/2026 09:36 AMFiling ID: 139523Accepted 3/27/2026
Fiscal Year 2025
March 27, 2026
TABLE OF CONTENTS
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ACRONYMS AND ABBREVIATIONS
USED IN THIS REPORT
CAG cost ascertainment grouping/group AAF Alaska Adjustment Factor AADC automated area distribution center AI Automated Induction ACD ACR ADC area distribution center AFSMs Automated Flat Sorting Machines APBS Automated Parcel and Bundle Sorter APPS Automated Package Processing System ATHS Automated Tray Handling System BPM Bound Printed Matter CET critical entry time CHIR Chairman's Information Request CLT Critically Late Trip CPI-U consumer price index for all urban consumers CPO community Post Office CPU contract postal unit CPUT Contract Post Unit Technology CRA Cost and Revenue Analysis CSDC Change Suspension Discontinuance Center CY Calendar Year DFA Delivering for America DDU destination delivery unit DSCF destination sectional center facility DMM Domestic Mail Manual DPS delivery point sequence ECSI educational, cultural, scientific, or informational (value) EPM Electronic Postmark EDDM Every Door Direct Mail EDDM-R Every Door Direct Mail--Retail EDW Enterprise Data Warehouse EMS Express Mail Service EOL End of Life FPO foreign postal operator Annual Compliance Determination Annual Compliance Report
GCA Greeting Card Association FSS Flats Sequencing System FY Fiscal Year GEPS--NPR Global Expedited Package Services--Non-Published Rates GXG Global Express Guaranteed HD High Density IFP Integrated Financial Plan ICRA International Cost and Revenue Analysis IMb Intelligent Mail barcode IMTS International Money Transfer Service Internal SPM Internal Service Performance Measurement System IAA interagency agreement IAS International Ancillary Services IPA International Priority Airmail ISAL International Surface Air Lift KPI key performance indicator LMI Last Mile Impact LPCs local processing centers MCS Mail Classification Schedule M-Bags Airmail M-Bags MODS Management Operating Data System MPV Mail Processing Variance NDC network distribution center NAPM National Association of Presort Mailers NPA National Performance Assessment NPPC National Postal Policy Council NSA negotiated service agreement NPR Non-Published Rates ODIS Origin Destination Information System OIG Office of Inspector General OCR Optical Character Reader OLRP Officially Licensed Retail Products PAEA Postal Accountability and Enhancement Act Pitney Bowes Pitney Bowes Inc. PO Boxes Post Office Boxes PostCom Association for Postal Commerce Postal Service United States Postal Service PR Public Representative PSRA Postal Service Reform Act of 2022 PVO Postal Vehicle Operator RHB retiree health benefits RPDCs regional processing and distribution centers RPW Revenue, Pieces, and Weight RTHs Regional Transfer Hubs RTO regional transportation optimization
S&DC Sorting and Delivery Center SCF sectional center facility SPM service performance measurement SIPS Single Induction Package Sorter SSKs self-service kiosks STCs Surface Transfer Centers SV surface visibility SWI Standard Work Instructions THS Terminal Handling Services U.S.C. United States Code UPU Universal Postal Union USO universal service obligation VPO Village Post Office WebEOR Web End of Run WEMS Work Hour Efficiency Management System WIP work in process
EXECUTIVE SUMMARY
1
Pub. L. 109-435, 120 Stat. 3198, 3207 (2006). 1
-
CHAPTER I. INTRODUCTION
- The Commission's Role in Postal Regulation 2 B. Statutory Context
3 4
Pub. L. 109-435, 120 Stat. 3198, 3207 (2006). 2 The ACR is filed in accordance with the provisions appearing in 39 U.S.C. § 3652(a) through (f). In conjunction with filing the ACR, the Postal 3Service must also file its most recent Comprehensive Statement on Postal Operations, its FY 2026 Performance Plan, and its FY 2025 Performance Report. 39 U.S.C. § 3652(g). Pub. L. 117-108, 136 Stat. 1127 (2022). 4
C. Timeline and Review of Report 5
6 D. Focus of the ACR 7
See Order No. 9422. Initial and reply comment deadlines were established as March 13, 2026, and March 27, 2026, respectively. Id. at 4. 5 39 U.S.C. § 3653(a). Additionally, the Commission is required to appoint an officer of the Commission who shall represent the interests of the 6public. Id.; see 39 U.S.C. § 505. The technical 90-day Commission deadline falls on March 29, 2026, a Sunday. In accordance with 39 C.F.R. § 3010.108(c), the Commission must 7submit its determination on the next business day, i.e., March 30, 2026.
8 E. Organization of the FY 2025 ACD 9
For agreements with an agency of any State government, local government, or tribal government to provide property or nonpostal services to 8the public on behalf of such agencies for non-commercial purposes entered into under 39 U.S.C. § 3703, the Postal Service must include costs, revenues, rates, and quality of service for each agreement or substantially similar set of agreements. 39 U.S.C. § 3705(a)(1). For the Postal Service's program to provide property and nonpostal services to other Government agencies within the meaning of 39 U.S.C. § 411, the Postal Service must include costs, revenues, rates, and quality of service for the program as a whole established under 39 U.S.C. § 3704. 39 U.S.C. § 3705(a)(1). Order No. 8002; Order No. 8459; Order No. 8882; Order No. 8907, which contained multiple proposed changes in analytical principles; Order 9No. 8990.
10 F. Procedural History
11 G. Confidentiality
See Order No. 9427; see also Docket Nos. RM2021-2, RM2022-5, RM2022-6, RM2024-4, United States Postal Service Petition for Rulemaking 10to Repeal the Minimum Remittance Payment Requirement, December 22, 2025; United States Postal Service Petition for Rulemaking to Modify the Market-Dominant Ratemaking System to Achieve Objectives 5 and 8, December 22, 2025 (Postal Service Petitions). See Library Reference USPS-FY25-0, December 29, 2025, Excel file "USPS-FY25-0_Roadmap.xlsx." 11
H. Requests for Additional Information
12 13
See generally id. On January 23, 2026, the Postal Service filed a motion for late acceptance of its response to CHIR No. 1. Motion of the United 12States Postal Service for Late Acceptance of the Response to Questions 1, 21, 25, 27, 30 of Chairman's Information Request No. 1, January 23,
- This motion is granted. Motion for Issuance of Chairman's Information Request, January 12, 2026; see CHIR No. 3. 13
CHAPTER II. MARKET DOMINANT
PRODUCTS: PRICING REQUIREMENTS
14
See generally Order No. 8891; Order No. 8892; Order No. 8893; Order No. 9426; Order No. 9427. More specifically, based upon a 14comprehensive findings order, the Commission determined that the ratemaking system is not achieving the objectives in 39 U.S.C. § 3622(b), taking into account the factors in 39 U.S.C. § 3622(c) and initiated a phased rulemaking process to consider modifications necessary to achieve the statutory objectives. Order No. 8891 at 1, 144; Order No. 8892 at 1-2. On January 13, 2026, the Commission issued Order No. 9426, which limits the frequency of rate increases above the de minimis threshold and adds criteria for workshare discount compliance. See generally Order No. 9426. The Commission intends to pursue other changes to the ratemaking system in Docket No. RM2024-4 and has issued an order setting forth a deadline for interested persons to submit petitions under 39 C.F.R. § 3010.201(b)(1) to modify the ratemaking system or to adopt an alternative system pursuant to 39 U.S.C. § 3622(d)(3). Id. at 16, 202-06; Order No. 9427 at 4-5.
B. The Class-Level Price Cap
15
16 17 18
CPI-U based rate authority (39 C.F.R. part 3030, subpart C) grants the authority to the Postal Service to raise rates based on monthly changes 15in the CPI-U as published by the Bureau of Labor Statistics, and banked rate authority (39 C.F.R. part 3030, subpart H) includes unused rate adjustment authority accumulated for future use pursuant to certain rules. 39 C.F.R. § 3030.127(a); Order No. 5763 at 72, 100, 189-91. Density rate authority, retirement obligation rate authority, and non-16compensatory class rate authority are available to the Postal Service only once annually and must be included in the calculation of the maximum rate adjustment authority in the first generally applicable rate adjustment after the authority becomes available. See 39 C.F.R. §§ 3030.160(c), 3030.181(c), 3030.222(b). In FY 2025, those authorities became available March 28, 2025. Order No. 8760 at 1, 12. See Order No. 8867. Docket No. R2025-1 was the first and only rate adjustment proceeding in FY 2025 after Order No. 8760 and, accordingly, 17used the newly available density, retirement obligation, and non-compensatory class rate authorities. The Commission utilizes a 12-month rolling average methodology for calculating CPI-U changes. See 39 C.F.R. § 3030.128. The 12-month 18average for FY 2024 is 311.581 and the 12-month average for FY 2025 is 319.997. Thus, from FY 2024 to FY 2025, CPI-U increase = (319.997/311.581)-1 = 2.701 percent. In Docket No. R2025-1, the total rate authority newly available to the Postal Service was 9.385 percent for the Periodicals class, and 7.385 percent for each of the following mail classes: First-Class Mail, USPS Marketing Mail, Package Services, and Special Services. Order No. 8867 at 7.
19 20
Id. at 43-47. In Docket No. RM2020-5, the Commission amended the rules for determining when rate incentives for Market Dominant 19products could be used to generate rate adjustment authority. See generally Order No. 8708. Under the prior rules, a rate incentive could be used to generate rate adjustment authority only if it was a rate of general applicability. Id. at 6. Under those rules, rate incentives like those approved in Docket No. R2023-3 that are based on increased volume from a comparison period to an incentive period were mailer-specific and could not be considered generally applicable. Id. at 28. Under the amended rules, a rate incentive that is not a rate of general applicability can be included in the percentage change in rates calculations and be used to generate rate authority if it satisfies certain criteria. Id. at 32; 39 C.F.R. § 3030.128(f)(2). Order No. 8867 at 24-25. The Commission also notes that other, longstanding incentives, specifically the Full-Service Intelligent Mail barcode 20(IMb) incentive and the Seamless Acceptance Incentive for First-Class Mail and USPS Marketing Mail, were also included in the percentage changes of rates calculations.
Figure II-1
Available Rate Authority by Rate Case
Source: See Docket No. R2025-1, Library References PRC-LR-R2025-1-1 through PRC-LR-R2025-1-5, May 30, 2025. Non-compensatory authority only applies to classes of mail found to be non-compensatory as determined by the Commission. 39 C.F.R. § 3030.220. For FY 2025, the only non-compensatory class was Periodicals. See generally FY 2024 ACD. Banked authority differs by class based on the difference between the total authority available to the Postal Service under each type of rate authority in prior rate adjustment proceedings and how much the Postal Service has elected to use for each class in those proceedings and is not shown in this graph. 2. Comments
21
Id. at 7 (citing Docket No. RM2024-4, Revised Elasticity Study at 2-3, 57). 21
3. Commission Analysis 22 C. Workshare Discounts
23
Order No. 9426 at 16, 202-206; Order No. 9427 at 1-2, 4. As noted above, the Commission has, to date, issued an order that modifies two 22aspects of the ratemaking system. See generally Order No. 9426. For example, if the Postal Service offers a discount of $0.020 for mailers to apply a barcode to their mail, and this barcoding allows the Postal 23Service to avoid $0.022 in cost, then the worksharing passthrough is calculated as $0.020/$0.022 = 0.909 or a passthrough of 90.9 percent. Both the workshare discount and the avoided cost should be rounded to three decimal places (i.e., the nearest thousandth or $0.001). The passthrough percentage should be rounded to one decimal place.
2. Workshare Discount Regulations 24
See 39 C.F.R. pt. 3030, subpt. J. The Commission recently amended its rules for workshare discount compliance to restrict the Postal Service 24from setting workshare discounts farther away from their avoided costs unless the Commission has granted a waiver under 39 C.F.R. § 3030.286. Order No. 9426 at 1, 188, 202. Those changes will be relevant to evaluating workshare discount compliance with the Commission's regulations in future ACDs.
Figure II-2 Workshare Discount Passthrough Compliance by Rate Case
3. Comments on Workshare Discounts
- Compliance with Workshare Discount Rules 25
Id. at 5. Specifically, NAPM states that the First-Class Mail 5-Digit Automation Letters passthrough is 80 percent; the First-Class Mail automated 25area distribution center (AADC) Automation Letters passthrough is 79.49 percent; the USPS Marketing Mail 5-Digit Automation Letters passthrough is 74.47 percent; and the USPS Marketing Mail destination sectional center facility (DSCF) Letters passthrough is 70.83 percent. Id. The Commission notes that as the result of nomenclature changes the First-Class Mail AADC Automation Letters passthrough is now the First- Class Mail 3-Digit Automation Letters passthrough. See Library Reference USPS-FY25-3, January 16, 2026, Excel file "FY25.3 WorksharingTables New 1.16.2026 Final.xlsx," tab "FCM Bulk Letters, Cards," cell C10.
26 27
N/MA Comments at 5. Although N/MA refers to this product as "Within County," this product is named "In-County Periodicals" in the Mail 26Classification Schedule (MCS). See, e.g., Order No. 8867 at 113, n.73; id. Attachment at 70. Id. The Commission notes that the Carrier Route Basic passthrough is 89.8 percent but the High Density passthrough is 69.2 percent. Library 27Reference USPS-FY25-3, Excel file "FY.25.3 WorksharingTables New 1.16.2026 Final.xlsx," tab "Passthroughs_WC."
b. Timing of Avoided Cost Data
28 c. Calculation of Avoided Cost Data 29
NPPC Comments at 5; Pitney Bowes Comments at 3; NAPM Comments at 9, 14. 28 Id. (citing Docket No. RM2022-1, Response of the United States Postal Service to Request for Progress Report in Order No. 9316, December 1, 292025, at 10-11 (Docket No. RM2022-1, Response to Order No. 9316)).
- DSCF Entry Discounts and Sectional Center Facility (SCF) Pallet Discounts
30 31
Id. at 12. More specifically, NAPM argues that such workpapers should include Origin-to DSCF transportation flows, cost segments and 30piggyback assumptions used to derive letter dropship avoided costs; network and processing assumptions imbedded in those calculations, and sensitivity analysis testing the avoided costs under variable conditions. Id. Id. More specifically, NAPM proposes that the Commission require a justification demonstrating that the change will not reduce the aggregate 31contribution of commingled letters, that efficient worksharing behavior will not be affected incentives that are "misaligned" with avoided costs, and that any claimed network benefits outweigh "the demonstrated loss of private-sector efficiencies." Id. at 12-13.
e. Other Comments 32 4. Commission Analysis
- Response to Commenters 33
Id. at 9. The Postal Service contends, for example, that the Commission's approach to full efficiency in its workshare discount rules fails to 32account for opportunity costs associated with "economies of density, scope, and/or scale" when worksharing removes volume from a Postal Service operation but "those lost economies" are not reflected in avoided costs. Id. The Postal Service further argues that fully efficient pricing "was not intended for situations where a firm is insolvent," as the Postal Service describes its current state. Id. The Postal Service also argues that the "simplified illustrations" used in fully efficient pricing scholarship "assume homogenous, perfectly known costs for the avoided work segments[,]" but that avoided transportation costs in the Postal Service network may vary widely. Id. Finally, the Postal Service questions the volume variability assumptions used to estimate mail processing cost avoidances, which it states predate the Postal Reorganization Act. Id. at 9-
NPPC Comments at 5; Pitney Bowes Comments at 3; NAPM Comments at 6-8, 9, 14; PostCom Comments at 4. 33
34
Postal Service Reply Comments at 20; see Docket No. RM2022-1, Response to Order No. 9316 at 10-11. 34
35 36
Docket No. MC2025-1483, United States Postal Service Proposal to Modify the Product Descriptions of First-Class Mail, USPS Marketing Mail, 35and Periodicals, June 11, 2025, at 14-15; see Library Reference PRC-LR-ACR2025-9, tab "FY25 ACD Directive." If, for example, the Postal Services proposes a rulemaking petition that proposes a methodology to measure avoided transportation costs 36between Zones A-D and between Zones A-D and the DSCF, NAPM's comments would be particularly relevant. See Order No. 9260 at 35-36; Docket No. RM2022-1, Response to Order No. 9316 at 14-15. Additionally, the Commission notes that it agrees with NAPM that the destination entry avoided-cost model in Library Reference USPS-FY25-13 supports the current dropship passthroughs and reflects avoided costs for mail entered at the SCF and that it is further consistent with Commission findings. See NAPM Comments at 11; see generally Order No. 7391.
b. Assessment of Compliance and Further Guidance 37 Table II-1 Workshare Discounts by Mail Class Categorized by Passthrough Level Docket No. R2025-1 Workshare Discounts and Docket No. ACR2025 Avoided Costs
The Commission has consistently evaluated workshare discounts' compliance based on the prices in effect at the end of the fiscal year 37regardless of whether other prices were also in effect at other points during the fiscal year. This is consistent with the Commission's long- standing practice to use the most recent data available in its analyses. See, e.g., FY 2020 ACD at 12; FY 2019 ACD at 13; FY 2018 ACD at 13; FY 2017 ACD at 15; FY 2016 ACD at 10; FY 2015 ACD at 10.
85.0%-99.9% =100% >100% <85% Total Mail Class All Mail Classes First Class Mail USPS Marketing Mail Periodicals Package Services
Table II-2 Workshare Discounts by Mail Class Categorized by Passthrough Level Docket Nos. MC2025-1483 and RM2025-11 and Docket No. RM2025-12 Approved Methodological Changes and Docket No. ACR2025 Avoided Costs
CHAPTER III. MARKET DOMINANT
PRODUCTS: OTHER RATE AND FEE COMPLIANCE ISSUES
Figure III-1 Market Dominant Product Compliance Results, FY 2025
B. Non-Compensatory Classes
- Periodicals 38 Table III-1 Periodicals Cost Coverage, FY 2021-FY 2025
39
The In-County product is typically used by smaller circulation weekly newspapers for distribution within the county of publication. 38 See Library Reference USPS-FY25-45, December 29, 2025, folder "Rule 3050.50 Flats," folder "Paragraph (b) -- Financial Report," PDF file "Part 39B Narratives - FY 25 Rule 3050.50.pdf," at 12.
b. Previous Directives
40 c. Comments on Periodicals
See, e.g., FY 2017 ACD at 50; FY 2018 ACD at 46; FY 2019 ACD at 25; FY 2020 ACD at 20-21; FY 2021 ACD at 27; FY 2022 ACD at 30, 36; FY 2023 40ACD at 22, 28; FY 2024 ACD at 21, 26.
d. Commission Analysis 41
See System for Regulating Market Dominant Rates and Classifications, 85 Fed. Reg. 81,124 (Dec. 15, 2020) (codified at 39 C.F.R. pts. 3030, 413040, 3045, 3050, and 3055).
Figure III-2 Periodicals Unit Revenue, FY 2021-FY 2025
Table III-2
Periodicals Outside County Revenue Elements, FY 2021-FY 2025
42 Figure III-3 Periodicals Unit Attributable Cost, FY 2021-FY 2025
Id. question 12.e. The rental analysis is used to distribute space provision costs to individual products. The Postal Service sought to update and 42improve upon the prior rental analysis, which was last completed in 1992. Order No. 8737 at 1-2.
Figure III-4 Periodicals Unit Contribution, FY 2021-FY 2025
43
In Figure III-5, Mail Processing includes cost segment 3; Delivery includes cost segments 6, 7, and 10; Transportation includes cost segment 14; 43and Other, such as retiree health benefits, management, building space, and supply-related costs, includes cost segments 1, 2, 8, 11, 12, 13, 15, 16, 17, 18, 19, and 20. The figure does not account for piggyback factors.
Figure III-5
Periodicals Outside County Unit Attributable Cost, FY 2021-FY 2025
Table III-3 Periodicals Outside County Mail Mix, FY 2021-FY 2025
C. Non-Compensatory Products in Compensatory Classes
- USPS Marketing Mail Table III-4 USPS Marketing Mail Cost Coverage, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-1. Table III-4 corrects data in the FY 2024 ACD, Table III-4.
a. USPS Marketing Mail Flats 44
See Library Reference PRC-LR-ACR2025-4; FY 2024 ACD at 27. The Commission notes that the Postal Service states that the cost coverage of 44USPS Marketing Mail Flats decreased by 2.6 percentage points in FY 2025. January 16 Response to CHIR No. 1, question 5.a. This is likely due to both differences in fee distribution methodologies for the class and rounding.
Figure III-6
USPS Marketing Mail Flats Cost Coverage and Contribution, FY 2021-FY 2025
45
Library Reference USPS-FY25-45, FY 25 Rule 3050.55 Paragraph (b) Narratives, at 2. 45
46 47
FY 2024 ACD at 28; FY 2025 ACR at 5; January 23 Response to CHIR No. 2, question 27. 46 See FY 2024 ACD at 28; FY 2023 ACD at 35; FY 2022 ACD at 39-40 (describing the history of Commission directives related to the cost coverage 47of USPS Marketing Mail Flats between FY 2010 and FY 2021).
48 Figure III-7 USPS Marketing Mail Flats Unit Revenue, Attributable Cost, and Contribution,
49 50
FY 2025 ACR at 5; Docket No. ACR2024, Library Reference PRC-LR-ACR2024-1, March 28, 2025, file "FY24 Summary LR-1.xlsx," tab "Total All 48Mail (Appendix A)," cell C30. Order No. 1427 at 8; see FY 2010 ACD at 105-07; see also U.S. Postal Serv. v. Postal Regul. Comm'n, 676 F.3d 1105, 1107-08 (D.C. Cir. 2012). The 49Commission identified several factors used in its determination including a significant and growing cost coverage shortfall; the duration of the shortfall over a significant period; evidence that the cost coverage shortfall was likely to increase further; a significant adverse impact on users of other mail products (some of whom could be competitors of mailers of the subsidized mail product) requiring subsidization of the non- complying product; failure of the Postal Service to address the shortfall by rate increases, cost decreases, or a combination thereof, despite the capability to do so; and the failure of the Postal Service to provide an adequate explanation for not taking necessary remedial steps designed to ameliorate the cost coverage shortfall. Order No. 1427 at 9. Cf. id. at 8. FY 2010 ACD at 105-07. The contribution gap is calculated as the difference between the unit contribution made by USPS 50Marketing Mail Letters and the unit contribution made by USPS Marketing Mail Flats.
51 52 Figure III-8 Volume Distribution of USPS Marketing Mail Flats, Carrier Route, High Density/Saturation Flats, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-4.
Id. at 30. 51 FY 2025 ACR at 5; Docket No. ACR2024, Library Reference PRC-LR-ACR2024-1, file "FY24 Summary LR-1.xlsx," tab "Total All Mail (Appendix A)," 52cells B26:B32.
53 Figure III-9 USPS Marketing Mail Flats Commercial-Nonprofit Mail Mix, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-4.
Library Reference PRC-LR-ACR2025-4; Library Reference USPS-FY25-45, FY 25 Rule 3050.50 Paragraph (b) Narratives, at 9. 53
2. Package Services Table III-5 Package Services Cost Coverage, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-6.
54 a. Alaska Bypass Service
To see a more extensive accounting of Package Services cost coverages, see Library Reference PRC-LR-ACR2025-6. 54
Table III-6 Alaska Bypass Service Product Data, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-6; January 16 Response to CHIR No. 1, question 9.a.
55
Id.; see also United States Postal Service, Office of Inspector General, Report No. RARC-WP-12-005, Alaska Bypass: Beyond Its Original 55Purpose, November 28, 2011, at 3, available at https://www.uspsoig.gov/sites/default/files/reports/2023-01/rarc-wp-12-005_0.pdf.
D. Fully Compensatory Classes
- First-Class Mail Table III-7 First-Class Mail Cost Coverage, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-3.
b. Comments
56
The Postal Service does not respond to the Public Representative's extensive comments on First-Class Mail. 56
57 58 59 60
Revenues for Single-Piece Letters and Cards, Outbound Single-Piece First-Class Mail International and Inbound Letter Post did not increase. 57Compare Library Reference USPS-FY25-1, Excel file "PublicFY25CRAReport.xlsx," tab "Cost 1," cells D11:D19, with Docket No. ACR2024, Library Reference USPS-FY24-1, December 30, 2024, Excel file "PublicFY24CRAReport.xlsx," tab "Cost 1," cells D11:D19. While volume for Single-Piece Letters and Cards, and Flats decreased in FY 2025, those volumes declined at a slower rate than in FY 2024. 58Compare Library Reference USPS-FY25-1, Excel file "PublicFY25CRAReport.xlsx," tab "Volume 1," cells D14:D23, with Docket No. ACR2024, Library Reference USPS-FY24-1, Excel file "PublicFY24CRAReport.xlsx," tab "Volume 1," cells D14:D23. Compare Library Reference USPS-FY25-1, Excel file "PublicFY25CRAReport.xlsx," tab "Cost1," cells D18, F18, R18, with Docket No. ACR2024, 59Library Reference USPS-FY24-1, Excel file "PublicFY24CRAReport.xlsx," tab "Cost1," cells D18, F18, R18; compare Library Reference USPS-FY25- 1, Excel file "PublicFY25CRAReport.xlsx," tab "Volume1," cell D21, with Docket No. ACR2024, Library Reference USPS-FY24-1, Excel file "PublicFY24CRAReport.xlsx," tab "Volume1," cell D21; see also PR Comments at 7. See generally Docket No. RM2024-4. 60
2. Special Services
Table III-8 Special Services Cost Coverage, FY 2021-FY 2025
Source: Library Reference PRC-LR-ACR2025-7. b. Commission Analysis
CHAPTER IV. COMPETITIVE PRODUCTS
61
62
Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 306; Priority Mail Express, Priority Mail & USPS Ground Advantage 61Contract 278; Priority Mail & USPS Ground Advantage Contract 113; Priority Mail & USPS Ground Advantage Contract 312; Priority Mail & USPS Ground Advantage Contract 148; Priority Mail Express & USPS Ground Advantage Contract 1; Priority Mail & USPS Ground Advantage Contract 347; Priority Mail Express, Priority Mail, USPS Ground Advantage & Parcel Select Contract 2; Priority Mail Contract 755; Priority Mail Contract 800; Priority Mail Contract 805; Priority Mail Contract 807; Priority Mail Contract 809; Priority Mail Contract 815; Priority Mail Contract 850.
Ground Advantage (MMNPR2-0163); Priority Mail Express, Priority Mail & USPS Ground Advantage (MMNPR1-0176).
•
- B. Cross-Subsidy Provision:
39 U.S.C. § 3633(a)(1)
C. Product Cost Coverage Provision:
39 U.S.C. § 3633(a)(2)
-
-
-
- 1. Competitive Domestic Products with Rates of
General Applicability
63 64
The Priority Mail Express, Priority Mail, and USPS Ground Advantage products also include rates not of general applicability. 63 The Competitive Ancillary Services product consists of the following services: Adult Signature, Package Intercept Service, Premium Data 64Retention and Retrieval Service, and Label Delivery Service. See Mail Classification Schedule (MCS) § 2645, available at https://www.prc.gov/mail-classification-schedule.
2. Competitive Domestic Products Consisting of
NSAs
65 66 Figure IV-1 Competitive Domestic NSA Products in Effect During FY 2025
Source: Library Reference USPS-FY25-NP27.
The 4,289 NSAs include agreements that were extended via amendment. Each domestic NSA is a separate product, except for NPR products 65and umbrella products, which can include multiple functionally equivalent NSAs as included contracts. See 39 C.F.R. § 3041.110(i), (p). While there are domestic NPR NSA products, there are currently no domestic umbrella NSA products. FY 2025 ACR at 12. Although 20 individual NSAs failed to cover costs, the Commission notes that 5 of these NSAs are included contracts in NPR 66products. The Commission evaluates the compliance of each NPR product with the standards of 39 U.S.C.§ 3633(a)(2) by first evaluating whether each included contract in the NPR product covers its costs attributable. Order No. 6953 at 55. Because 5 included contracts failed to cover their costs, the Commission conducted further analysis to evaluate the compliance of the NPR NSA products in which these contracts are included with the standards of 39 U.S.C. 3633(a)(2). See id. at 55-56. In FY 2025, all domestic NPR products covered their attributable costs in compliance with 39 U.S.C. § 3633(a)(2).
67 68
Id. at 18. The Commission inquired about the underlying reasons for the increase in the number of domestic NSAs that did not cover costs in 67an attachment to the Chairman's Information Request No. 1 filed under seal and found the Postal Service's responses satisfactory. The reasons provided are also applicable to the increase in domestic NSAs that included a non-compensatory component. Responses of the United States Postal Service to Chairman's Information Request No. 1 Questions 10-12.
Ground Advantage (MMNPR2-0163); Priority Mail Express, Priority Mail & USPS Ground Advantage (MMNPR1-0176); Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 306; Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 278; Priority Mail & USPS Ground Advantage Contract 113; Priority Mail & USPS Ground Advantage Contract 312; Priority Mail & USPS Ground Advantage Contract 148; Priority Mail Express & USPS Ground Advantage Contract 1; Priority Mail & USPS Ground Advantage Contract 347; Priority Mail Express, Priority Mail, USPS Ground Advantage & Parcel Select Contract 2; Priority Mail Contract 755; Priority Mail Contract 800; Priority Mail Contract 805; Priority Mail Contract 807; Priority Mail Contract 809; Priority Mail Contract 815; Priority Mail Contract 850.
3. Competitive International Products with Rates of
General Applicability
69 70 a. International Direct Sacks--Airmail M-Bags 71 72
IMTS--Inbound was available in FY 2025 but was removed from the MCS effective October 1, 2025. See Order No. 7352 at 9-10 (approving the 69removal conditionally upon the Postal Service filing a notice confirming that the United States submitted a notice of denunciation of the Postal Payment Services Agreement to the Universal Postal Union by September 30, 2024); see also Docket No. MC2024-413, United States Postal Service Response to Order No. 7352, September 30, 2024 (confirming that the United States submitted a notice of denunciation of the Postal Payment Services Agreement to the Universal Postal Union on September 30, 2024). See FY 2025 ACR at 13. See also Library Reference USPS-FY25-NP2, December 29, 2025, Excel file "FY25.ICRA.Report.xlsx," tab "A Pages 70Summary," row 39. International Direct Sacks--Airmail M-Bags are direct sacks containing printed matter to a single addressee. Printed matter is defined as paper 71on which words, letters, characters, figures, images, or any combination thereof, not having the character of a bill or statement of account, or of actual or personal correspondence, have been reproduced by any process other than handwriting or typewriting. Airmail M-Bags may include articles of merchandise exclusively related to the enclosed printed matter as specified in the International Mail Manual (outbound) or the Universal Postal Convention (UPU) (inbound). Airmail M-Bags are not sealed against inspection. See MCS § 2330.1. See Library Reference PRC-LR-ACR2025-NP2, Excel file "PRC-LR-ACR2025-NP2 UNIFIED ICRA.xlsx," tab "ACR2025 Intl Products;" Docket No. 72ACR2024, Library Reference PRC-LR-ACR2024-NP2, March 28, 2025, Excel file "PRC-LR-ACR2024-NP2 UNIFIED ICRA.xlsx," tab "ACR2024 Intl Products."
73 74 75
See Universal Postal Convention (UPU Convention), Decisions of the 2023 Riyadh Extraordinary Congress, Berne 2024. UPU Convention at 27 73(deleting M-Bags as a mandatory basic service in Article 17, paragraphs 2.4 and 3.3). UPU Convention at 28 (including M-Bags as an optional supplementary service in Article 18, paragraph 2.9). UPU Convention at 29 (stating that the effective date for changes relating to M-Bags is January 1, 2025), available at https://www.upu.int/UPU/media/upu/files/aboutUpu/acts/08-actsAndOtherDecisionsPreviousCongresses/CNG- ACTS%e2%94%80Doc-0-(5).pdf. See UPU, IB Circular 24, List of Designated Operators Offering the M Bag as an Optional Supplementary Service Effective From 1 January 2025 74(Status at 5 February 2025), February 10, 2025. For example, M-Bags was compensatory in FY 2013 through FY 2023. See FY 2013 ACD at 84; FY 2014 ACD at 75; FY 2015 ACD at 84; FY 2016 75ACD at 83; FY 2017 ACD at 86; FY 2018 ACD at 104; FY 2019 ACD at 77; FY 2020 ACD at 73; FY 2021 ACD at 81; FY 2022 ACD at 75; FY 2023 ACD at 63. M-bags became non-compensatory for the first time in more than a decade in FY 2024. See FY 2024 ACD at 47.
b. Other Issues for Competitive International Products
76 77 78 79 80
MCS § 2305.1. GXG service offers a postage-refund guarantee for day-certain delivery from select Post Office locations to select foreign 76destinations. Id. Priority Mail Express International (PMEI) service offers transit times that can be longer than for GXG service. Id. PMEI with guaranteed service provides a postage-refund guarantee for date-certain delivery to a limited number of foreign destinations. Id. See January 16 Response to CHIR No. 1, question 13.a. See also United States Postal Service, IMM Revision: Changes to Global Express 77Guaranteed Service, Postal Bulletin 22660, October 3, 2024, available at https://about.usps.com/postal- bulletin/2024/pb22660/html/updt_002.htm. See January 16 Response to CHIR No. 1, question 13.c. See also United States Postal Service Industry Alert, Global Express Guarantee® (GXG®) 78Suspension - Effective September 29, 2024, September 24, 2024, available at https://postalpro.usps.com/node/13380. Outbound International Expedited Services was compensatory in FY 2015 through FY 2024. See FY 2015 ACD at 84; FY 2016 ACD at 83; FY 792017 ACD at 86; FY 2018 ACD at 104; FY 2019 ACD at 77; FY 2020 ACD at 73; FY 2021 ACD at 81; FY 2022 ACD at 75; FY 2023 ACD at 63; FY 2024 ACD at 46. See Library Reference PRC-LR-ACR2025-NP2, Excel file "PRC-LR-ACR2025-NP2 UNIFIED ICRA.xlsx," tab "ACR2025 Intl Mail OB&IB;" Docket No. 80ACR2024, Library Reference PRC-LR-ACR2024-NP2, Excel file "PRC-LR-ACR2024-NP2 UNIFIED ICRA.xlsx," tab "ACR2023 Intl Mail OB&IB."
81 82 83 4. Competitive International Products Consisting of
NSAs
See Library Reference PRC-LR-ACR2025-NP2, Excel file "PRC-LR-ACR2025-NP2 UNIFIED ICRA.xlsx," tab "FY 2025 Underwater Products," 81column D. See, e.g., FY 2023 ACD at 70; FY 2022 ACD at 80; FY 2021 ACD at 86. 82 Inbound Competitive International Registered Mail had a net positive contribution in FY 2025 in comparison with its negative contribution in 83FY 2024. See Library Reference USPS-FY25-NP2, December 29, 2025, folder "ICRA Core Files," Excel file "FY25.ICRA.Report.xlsx", tab "Registered Mail Summary," cell K5; Docket No. ACR2024, Library Reference USPS-FY24-NP2, December 30, 2024, folder "ICRA Core Files," Excel file "FY24.Reports.xlsx," tab "Registered Mail Summary," cell K5; FY 2024 ACD at 53.
84 a. Competitive Outbound International Products Consisting
of NSAs
85 86 Figure IV-2 Competitive Outbound International Products by Category, FY 2025 87
Source: Library Reference USPS-FY25-NP2. Library Reference USPS-FY25-NP2; Library Reference PRC-LR-ACR2025-NP2. The Commission counts each serial-numbered agreement 84included under the Global Expedited Package Services--Non-Published Rates (GEPS--NPR) products as one NSA in this summary value. The Commission has previously expressed concern that the Postal Service does not always enforce customers' minimum volume 85commitments. See Order No. 5077 at 5. The Commission continues to monitor compliance with statutory requirements regardless of adherence to contractual minimum volume requirements. See, e.g., MCS § 2510.7.5 for additional services available to products included in the Global Reseller Expedited Package Contracts category. 86 Figure IV-2 includes outbound international products by product category for which the Postal Service reports financial results, for which there 87is a total of 182 agreements. It also includes 77 agreements with no recorded activity.
88
- Competitive Inbound International Products Consisting of NSAs
The Commission notes that although one included contract within the Global Expedited Package Services-Non-Published Rates 16 (GEPS --88NPR 16) product did not cover its attributable cost, the GEPS--NPR 16 product as a whole covered its attributable cost.
Figure IV-3
Competitive Inbound International Products by Category, FY 2025 89
Source: Library Reference USPS-FY25-NP2.
Figure IV-3 includes inbound international products by product category for which the Postal Service reports financial results, for which there 89is a total of 15 agreements. For the remaining nine inbound international NSAs, the Postal Service reports no activity. The Commission noted some duplicates in the number of agreements with no activity. See Library Reference USPS-FY25-NP2.
90
5. Continuation of Past Directives Relating to
Competitive International Products
See Docket No. K2025-825, Request of United States Postal Service Concerning Modification to Inbound Competitive Multi-Service Agreement 90with Foreign Postal Operator - FY25-3, December 15, 2025, Attachment 3.
D. Appropriate Contribution Provision: 39 U.S.C. § 3633(a)(3)
91 1. FY 2025 Appropriate Share 92 2. FY 2026 Appropriate Share
See Order No. 4963 at 27. This approach was upheld by the United States Court of Appeals for the District of Columbia Circuit in 2024. See 91United Parcel Serv., Inc. v. Postal Regul. Comm'n, 96 F.4th 422 (D.C. Cir. 2024). See Library Reference PRC-LR-ACR2025-1, Excel file "FY 25 Summary LR-1.xlsx," tab "Total All Mail (Appendix A)." 92
3. FY 2027 Appropriate Share
Table IV-1 Appropriate Share Value, FY 2023-FY 2027
Source: Library Reference PRC-LR-ACR2025-8.
CHAPTER V. NONPOSTAL SERVICES AND
INTERAGENCY AGREEMENTS
93 94 95
Postal Accountability and Enhancement Act § 102, Pub. L. 109-435, 120 Stat. 3198, 3200 (2006). See Docket Nos. MC2008-1 and MC2010-24, 93in which the review required by the PAEA was completed. 39 U.S.C. § 404(e)(5). The nonpostal services that were included as Market Dominant products are "Alliances with the Private Sector to Defray 94Cost of Key Postal Functions," and "Philatelic Sales." The nonpostal services that were included as Competitive products are "Advertising," "Licensing of Intellectual Property Other Than OLRP," "Mail Service Promotion," "Officially Licensed Retail Products (OLRP)," "Passport Photo Service," "Photocopying Service," "Rental, Leasing, Licensing or Other Non-Sale Disposition of Tangible Property," "Training Facilities and Related Services," and "USPS Electronic Postmark Service (EPM) Program." See MCS §§ 1701-1702, 2701-2709, available at https://www.prc.gov/mail- classification-schedule; see also Order No. 1575 at 4. No nonpostal services were classified as experimental products. See id. Section 105 of Title 5 of the United States Code specifies that an "'Executive agency' means an Executive department, a Government 95corporation, and an independent establishment" of the United States Government, as those terms are defined in 5 U.S.C. chapter 1. 5 U.S.C. § 105.
96
See Pub. L. 117-108, 136 Stat. 1127, 1144 ("All individual nonpostal services, provided directly or through licensing, that are continued 96pursuant to section 404(e) of Title 39, United States Code, shall be considered to be expressly authorized by Chapter 37 of such title (as added by subsection (a)(1)) and shall be subject to the requirements of section 3705, subsections (a) through (d)."). Prior to the enactment of the PSRA, the Commission had already promulgated a regulation requiring the Postal Service to report on costs, volumes, and revenues for each legacy nonpostal service. See 39 C.F.R. § 3050.21(i). Following the enactment of the PSRA, the Commission promulgated an additional regulation pertaining to the reporting of quality of service for nonpostal services. See 39 C.F.R. § 3055.25.
B. Market Dominant and Competitive Legacy
Nonpostal Products
97 98 99 100
FY 2025 ACR at 16-17; Library Reference USPS-FY25-20, December 29, 2025, PDF file "USPS-FY25-20Preface.pdf," at 2, 3, folder "PUBLIC 97FY2025 Nonpostal Quality of Service Reports;" Library Reference USPS-FY25-NP32, December 29, 2025, PDF file "PROTECTEDUSPS-FY25- NP32.Preface.pdf," at 5-6, 8; folder "PROTECTED FY2025 Nonpostal Quality of Service Reports." Library Reference USPS-FY25-20, PDF file "USPS-FY25-20Preface.pdf," at 2. 98 Library Reference USPS-FY25-NP32, PDF file "PROTECTEDUSPS-FY25-NP32.Preface.pdf," at 5-6. 99 Library Reference USPS-FY25-20, PDF file "USPS-FY25-20Preface.pdf," at 3, folder "PUBLIC FY2025 Nonpostal Quality of Service Reports," 100PDF files "PUBLIC Alliances with the Private Sector - FY 2025 Qualitative Analysis Finalredacted.pdf" and "PUBLIC Philatelic Sales - FY 2025 Qualitative Analysis Final.pdf;" Library Reference USPS-FY25-NP32, PDF file "PROTECTED_USPS-FY25-NP32.Preface.pdf," at 8, folder "PROTECTED FY2025 Nonpostal Quality of Service Reports," PDF files "NONPUBLIC Alliances with the Private Sector - FY 2025 Qualitative Analysis Final.pdf.pdf," "NONPUBLIC Licensing of IP Other Than OLRP - FY 2025 Qualitative Analysis Final.pdf," "NONPUBLIC Mail Service Promotion - FY 2025 Qualitative Analysis Final.pdf," "NONPUBLIC Officially Licensed Retail Products - FY 2025 Qualitative Analysis FINAL.pdf" "NONPUBLIC Passport Photo Service - FY 2025 Qualitative Analysis Final.pdf" "NONPUBLIC Photocopying Service - FY 2025 Qualitative Analysis Final.pdf," "NONPUBLIC Rental Leasing Licensing - FY 2025 Qualitative Analysis Final.pdf," and "NONPUBLIC Training Facilities and Related Services - FY 2025 Qualitative Analysis Final.pdf." The Postal Service does, however, provide partial quantitative analyses with respect to Philatelic Sales and Officially Licensed Retail Products. See Library Reference USPS-FY25-20, folder "PUBLIC FY2025 Nonpostal Quality of Service Reports," PDF file "PUBLIC Philatelic Sales - FY 2025 Qualitative Analysis Final;" Library Reference USPS-FY24-NP32, folder "PROTECTED FY2025 Nonpostal Quality of Service Reports," PDF file "NONPUBLIC Officially Licensed Retail Products - FY 2025 Qualitative Analysis FINAL.pdf."
C. Interagency Agreements
101 102 103 104 105 106
39 U.S.C. § 3705(b)(2) authorizes the Commission to initiate proceedings to improve the quality, accuracy, or completeness of Postal Service 101data filed pursuant to 39 U.S.C. § 3705. In the FY 2022 ACD, the Commission directed the Postal Service to develop a proposed methodology for calculating and attributing costs and revenue to interagency agreements. FY 2022 ACD at 102. As directed, the Postal Service filed its proposal in Docket No. RM2023-7. In Order No. 6659, the Commission conditionally approved the Postal Service's methodology, subject to 7 conditions. See Order No. 6659. The Postal Service filed a motion for partial reconsideration of Order No. 6659, which the Commission granted in part and denied in part in Order No. 9377. Docket No. RM2023-7, USPS Motion for Reconsideration and Clarification of Commission Order No. 6659, With Portions Filed Under Seal, September 15, 2023; Order No. 9377. The Commission notes that the Postal Service has appealed Order Nos. 6659 and 9377 to the United States Court of Appeals for the District of Columbia Circuit. See Petition for Review, United States Postal Serv. v. Postal Regul. Comm'n, No. 25-1289 (D.C. Cir. filed Dec. 26, 2025, ECF No. 2152063). Library Reference USPS-FY25-20, PDF file "USPS-FY25-20Preface.pdf," at 3, folder "FY2025 IAA Public Financial Details," Excel file "FY2025 102IAA Public Financial Details.xlsx;" Library Reference USPS-FY24-NP32, PDF file "PROTECTEDUSPS-FY25-NP32.Preface," at 7, Excel files "ACR 2025 IAA Summary.List.xlsx" and "FY2025 IAA NonPublic Financial Workbook Detailed.xlsx," Word file "PROTECTED FY2025 IAA Quality of Service Report.docx;" January 23 Response to CHIR No. 2, folder "PROTECTEDQuestions 36, 38-42, 44-46CHIR 02ACR 2025IAA Summary List," Excel file "ACR 2025 IAA Summary.List - Updated 1-23-2026.xlsx;" Response to CHIR No. 7, folder "Questions 14-16CHIR 07ACR 2025," Excel file "ACR 2025 IAA Summary.List - Updated 2-6-2026.xlsx." Library Reference USPS-FY25-20, folder "Copies of IAAs - Public Redacted;" Library Reference USPS-FY25-NP32, folder "PROTECTED Copies of 103IAAs - Non-Public;" January 23 Response to CHIR No. 2, folders "PROTECTEDQuestion 36CHIR 02ACR 2025," "PROTECTEDQuestion 42CHIR 02ACR 2025,"PROTECTEDQuestion 43CHIR 02ACR 2025," and "PROTECTEDQuestion 45CHIR 02ACR 2025." In Order No. 6659, the Commission directed that with respect to specific IAAs, the Postal Service should justify any filings made under seal and redact only information claimed to be nonpublic. Order No. 6659 at 14. However, consistent with Commission Order Nos. 6440 and 8656, the Postal Service is allowed to file a single representative redacted public version of an agreement for the following IAA categories (provided that the Postal Service files a new representative agreement for each category each fiscal year): the "Lease Agreements" category; the "EEO Services" subcategory within the "Contracting Services" category; and the "Bolger Center/NCED" and "USPIS Training Facilities" subcategories within the "Short Term Rental/Conference and Training Center Services" category. See Order No. 6440; Order No. 8656. Library Reference USPS-FY25-20, folder "FY2025 IAA Public Financial Details," Excel file "FY2025 IAA Public Financial Details.xlsx;" Library 104Reference USPS-FY25-NP32, folder "PROTECTED USPS-FY25-NP32 Excel Files," Excel files "ACR 2025 IAA Summary.List.xlsx," and "FY2025 IAA NonPublic Financial Workbook Detailed.xlsx;" January 23 Response to CHIR No. 2, folder "PROTECTEDQuestions 36, 38-42, 44-46CHIR 02ACR 2025IAA Summary List," Excel file "ACR 2025 IAA Summary.List - Updated 1-23-2026.xlsx;" February 6 Response to CHIR No. 7, folder "Questions 14-16CHIR 07ACR 2025," Excel file "ACR 2025 IAA Summary.List - Updated 2-6-2026.xlsx." Library Reference USPS-FY25-NP32, PDF file "PROTECTEDUSPS-FY25-NP32.Preface.pdf," at 8, Word file "PROTECTED FY2025 IAA Quality of 105Service Report.docx." The Postal Service does, however, provide partial quantitative analysis with respect to the "COVID Test Kit" IAA category. Id. February 6 Response to CHIR No. 7, folder "Questions 14-16CHIR 07_ACR 2025," Excel file "ACR 2025 IAA Summary.List - Updated 2-6-1062026.xlsx."
107 Figure V-1 Interagency Agreements by Category in Effect During FY 2025
108 109
Library Reference USPS-FY25-20, PDF file "USPS-FY25-20Preface," at 3. 107 See CHIR No. 2, question 43; see also Library Reference USPS-FY25-32, folder "PROTECTEDUSPS-FY25-NP32," Excel file "ACR 2025 IAA 108Summary.List.xlsx," row 8. See Order No. 6659 at 14; see also, e.g., the agreement reflected at Library Reference USPS-FY25-32, folder "PROTECTED_USPS-FY25-NP32," 109Excel file "ACR 2025 IAA Summary.List.xlsx," row 8, for which there was no associated volume or activity prior to FY 2025.
CHAPTER VI. SERVICE PERFORMANCE
- Service Performance Results
Figure VI-1 First-Class Mail, 2-Day Single-Piece Letters/Postcards Nationwide On-Time Service Performance, FY 2016-FY 2025
Source: FY 2018 ACD at 164; FY 2020 ACD at 161; FY 2023 ACD at 126; FY 2024 ACR at 49; FY 2025 ACR at 23.
•
2. Market Dominant Service Performance a. Overview
Table VI-1 Market Dominant Mail Service Performance Results, FY 2024-FY 2025 110
Source: Library Reference USPS-FY24-29, PDF file "FY24-29 Service Performance Report.pdf," at 5, 10, 12, 16 (FY 2024 Service Performance Report); Library Reference USPS-FY25-29, PDF file "FY25-29 Service Performance Report.pdf," at 5, 9, 14, 19, 25 (FY 2025 Service Performance Report).
Service performance results are derived from multiple measurement systems. The Internal Service Performance Measurement (SPM) System 110is used for domestic First-Class Mail, Periodicals, USPS Marketing Mail, and Package Services. Order No. 4697; Library Reference USPS-FY24-29, December 30, 2024. The Product Tracking and Reporting System measures service performance for parcels through scan events from USPS Marketing Mail Parcels, BPM Parcels, and Media Mail/Library Mail. FY 2024 Methodologies Report; Docket No. ACR2016, Responses of the United States Postal Service to Questions 2-4 and 7-13 of Chairman's Information Request No. 16, February 17, 2017, question 3. The IMb provides tracking data for mailpieces through Informed Visibility scans. United States Postal Service, Domestic Mail Manual, January 21, 2024, § 507.10.1.1.
Table VI-2 First-Class Mail, 2-Day Single-Piece Letters/Postcards Nationwide On-Time Service Performance, FY 2016-FY 2025
Source: FY 2018 ACD at 164; FY 2020 ACD at 161; FY 2023 ACD at 126; FY 2024 ACR at 49; FY 2025 ACR at 23. Figure VI-1 (Reprinted)
First-Class Mail, 2-Day Single-Piece Letters/Postcards Nationwide On-Time Service Performance, FY 2016-FY 2025
Source: FY 2018 ACD at 164; FY 2020 ACD at 161; FY 2023 ACD at 126; FY 2024 ACR at 49; FY 2025 ACR at 23.
b. General Comments and Related Commission Analysis
111
Fiscal Year 2025 Performance Targets for Market Dominant Products, November 29, 2024, PDF file "USPS-FY25Targets-11-29-24.pdf," at 2; 111Fiscal Year 2024 Performance Targets for Market Dominant Products, November 29, 2023, PDF file "USPS-FY24Targets-11-29-23.pdf," at 2; Fiscal Year 2023 Performance Targets for Market Dominant Products, November 29, 2022, PDF file "USPS-FY23Targets-11-29-22.pdf," at 2.
112 c. Commission Directives Regarding FY 2025 Service
Performance
Fiscal Year 2026 Performance Targets for Market Dominant Products, November 28, 2025, PDF file "PRC Re FY 2026 Targets.pdf," at 2. 112
Figure VI-2
Market Dominant Products/Categories that Did Not Meet Their FY 2024 Service Performance Targets
Source: FY 2024 ACD at 66, 69.
d. First-Class Mail
113 114 115
See FY 2025 Service Performance Report at 5. Inbound Single-Piece First-Class Mail International (International Inbound Letter Post) with a 2-113Day service standard met the overall target established for International Inbound Letter Post. However, the Commission evaluates compliance for International Inbound Letter Post in the aggregate; no separate target is established for the 2-Day service standard. See Library Reference USPS-FY25-29, files "USPS-FY25-29 Preface.pdf," at 23-24 (Library Reference USPS-FY25-29, Preface); "FY25-29 Division 114Reports.pdf," at 3. See, e.g., Library Reference USPS-FY25-29, Preface, "FY25-29 Division Reports.pdf," "FY25 FCM Root Cause.xlsx," and "ACR2025 EOY CLT FY25 115Q3-Q4.xlsx."
116
Id. at 30. The Public Representative is presumably referring to the 2-Day service standard for Inbound Single-Piece First-Class Mail 116International (International Inbound Letter Post); however, as noted previously, no separate target is established for the 2-Day service standard.
e. USPS Marketing Mail
- Periodicals g. Special Services
h. Special Services
3. Commission Findings and FY 2026 Directives
Figure VI-3
Market Dominant Products/Categories that Did Not Meet Their FY 2025 Service Performance Targets
Source: FY 2025 Service Performance Report at 5, 9, 14, 19, 25.
117
Mid-year refers to the aggregation of the data for Quarters 1 and 2 of the fiscal year. 117
4. Service Performance Trends
Figure VI-4 First-Class Mail, Single-Piece Letters/Postcards Nationwide On-Time Service Performance, FY 2024-FY 2025, Shown Separately by Service Standard
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "First-Class Mail SPFC."
Figure VI-5
First-Class Mail, Single-Piece Letters/Postcards
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "First-Class Mail SPFC."
Figure VI-6 First-Class Mail, 2-Day Single-Piece Letters/Postcards and Overnight Presorted Letters/Postcards Nationwide On-Time Service Performance, FY 2024-FY 2025
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "First-Class Mail SPFC," and tab "First-Class Mail Presort."
Figure VI-7 First-Class Mail, Presorted Letters/Postcards (excluding Overnight) Nationwide On-Time Service Performance, FY 2024-FY 2025, Shown Separately by Service Standard
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "First-Class Mail Presort."
Figure VI-8
First-Class Mail, Presorted Letters/Postcards (excluding Overnight) Nationwide On-Time Service Performance, FY 2024-FY 2025
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "First-Class Mail Presort."
Figure VI-9 First-Class Mail, Single-Piece Letters/Postcards, Presorted Letters/Postcards, and Flats
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "First-Class Mail SPFC," tab "First-Class Mail Presort," and tab "First-Class Mail Flats."
Figure VI-10
USPS Marketing Mail Letters and USPS Marketing Mail Flats
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "MKT Letters," and tab "MKT Flats."
Figure VI-11 High Density and Saturation Letters and High Density and Saturation Flats and Parcels
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "MKT HDSL," and tab "MKT HDSF."
Figure VI-12 Periodicals and USPS Marketing Mail Flats
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "MKT Flats," tab "PER IN," and tab "PER OUT."
Figure VI-13 Package Services
Source: February 6 Response to CHIR No. 7, question 1.a.-l., Excel file "ACRChIR 7Q1," tab "BPMF."
B. Customer Access to Postal Services
2. Background 118
FY 2025 ACR at 55-60; Library Reference USPS-FY25-33, December 30, 2025. 118
3. Compliance with FY 2024 ACD Directives
4. Brick and Mortar Locations Table VI-3 Number of Retail Facilities, FY 2023-FY 2025
Source: FY 2025 Annual Report at 31; February 13 Response to CHIR No. 4, question 11.
119 5. Suspended Post Offices 120 121
See February 13 Response to CHIR No. 4, questions 8-11, folder "PUBLICSupporting MaterialsCHIR 4_ ACR 20252.13.2026.zip folder 119Question 08-11CHIR 04_ACR 2025;" Excel file "PostOfficesFY2025 (REV.2.13.26).xlsx." United States Postal Service, Postal Service-Operated Retail Facilities Discontinuance Guide, Handbook PO-101 (October 2012), at 39, App'x A 120at 54 (Handbook PO-101). Post Office suspensions may result from: natural disasters, terminating a lease or rental agreement when suitable alternate quarters are not available, lack of qualified personnel to operate the retail facility, irreparable or severe damage to the retail facility, challenge to the sanctity of the mail, and lack of adequate measures to safeguard the retail facility or its revenues. Id. at 39. See, e.g., Postal Suspension Transparency Act, H.R. 6811, 119th Congress, 1st Session (2025), available at 121https://www.govinfo.gov/content/pkg/BILLS-119hr6811ih/pdf/BILLS-119hr6811ih.pdf.
a. Suspended Before FY 2017
122 123 b. Suspended After FY 2017
The Commission's oversight of suspensions between FY 2017 and FY 2024 is described in the FY 2024 ACD and Order No. 6101. FY 2024 ACD 122at 96-99; Order No. 6101 at 18-26. Docket Nos. PI2022-1, ACR2023, and ACR2024, Eleventh Response of the United States Postal Service to Commission Requests for Additional 123Information in the FY 2023 Annual Compliance Determination, May 12, 2025; Docket Nos. PI2022-1 and ACR2024, Third Response of the United States Postal Service to Commission Requests for Additional Information in the FY 2024 Annual Compliance Determination, August 11, 2025; Docket Nos. PI2022-1 and ACR2024, Fifth Response of the United States Postal Service to Commission Requests for Additional Information in the FY 2024 Annual Compliance Determination, November 10, 2025 (FY 2025, Quarter 4 Suspensions Report). The Postal Service also filed the FY 2026, Quarter 1 Post Office suspension report. Docket Nos. PI2022-1 and ACR2024, Sixth Response of the United States Postal Service to Commission Requests for Additional Information in the FY 2024 Annual Compliance Determination, February 9, 2026.
Table VI-4
Post Office Suspension Activity During FY 2025
Note: The numbers in this table reflect the most up-to-date data the Postal Service reported. Source: February 13 Response to CHIR No. 4, question 10, folder "PUBLICSupporting MaterialsCHIR 4_ ACR 20252.13.2026.zip," folder "Question 08-11CHIR 04_ACR 2025," Excel file "PostOfficesFY2025 (REV.2.13.26).xlsx" tab "Suspension Summary."
Figure VI-14
Number of Suspensions by Fiscal Year
Source: February 13 Response to CHIR No. 4, question 10, folder "PUBLICSupporting MaterialsCHIR 4_ ACR 20252.13.2026.zip," folder "Question 08-11CHIR 04_ACR 2025," Excel file "PostOfficesFY2025 (REV.2.13.26).xlsx" tab "FY25 EOY Suspensions (M)." This figure does not include the United Nations Station, which the Postal Service deemed outside of its control. Docket No. ACR2024, Notice of the United States Postal Service of Filing its Responses to Questions 1-3 of Chairman's Information Request No. 10, February 20, 2025, question 3.b. Because it remains suspended, the United Nations Station is included in the list of Post Offices suspended at the end of the fiscal year. Id.
124
The direct link to the suspensions dashboard is https://prc.gov/post-office-suspensions-dashboard. Data for Post Offices suspended during FY 1242025 are updated annually. Data for Post Offices suspended between FY 2017 and FY 2024 will be updated quarterly.
-
-
125
o o o o
o o
See February 13 Response to CHIR No. 4, questions 9-11, folder "PUBLICSupporting MaterialsCHIR 4_ ACR 20252.13.2026.zip folder 125Question 08-11CHIR 04_ACR 2025," Excel file "PostOfficesFY2025 (REV.2.13.26).xlsx."
6. Delivery Points
126 127 Figure VI-15 Annual Volume per Delivery Point
Density is the Market Dominant and Competitive volumes divided by the number of delivery points. a Source: FY 2024 ACD at 100; Commission calculation is based on FY 2025 Annual Report at 31.
The Postal Service defines a delivery point as: "(1) A single mailbox or other place to which mail is delivered. A street address does not 126necessarily represent a single delivery point because a street address such as one for an apartment building may have several delivery points. (2) A specific set of digits between 00 and 99 assigned to every address that is combined with the ZIP+4 code to provide a unique identifier for every delivery address." U.S. Postal Service, Glossary of Postal Terms, available at https://about.usps.com/publications/pub32/pub32_terms.htm. Library Reference USPS-FY25-33, folder "USPS-FY25-33.zip," Excel file "DeliveryPointsFY2025.xlsx;" FY 2025 Annual Report at 31. 127
7. Collection Boxes 128 Figure VI-16 Number of Collection Boxes
Source: Library Reference USPS-FY25-33, Excel file "CollectionBoxesFY2025.xlsx;" FY 2024 ACD at 101.
Docket No. ACR2024, Library Reference USPS-FY24-33, December 30, 2024, Excel file "CollectionBoxesFY2025.xlsx." 128
8. Wait Time in Line Table VI-5 National Average Wait Time in Line (in Minutes) Annually and by Quarter
Source: Library Reference USPS-FY25-33, Excel file "WaitTimeInLineFY2025.xlsx," tabs "Nat'l Avg Wait Time FY25" and "Nat'l Avg WT by Qtr FY25;" FY 2024 ACD at 102.
129 130 131
Library Reference USPS-FY25-38, December 29, 2025, folder "USPS-FY25-38.zip," folder "Customer Surveys.zip," File 129"CXSurveysFY25.docx," at 3. Library Reference USPS-FY25-38, folder "USPS-FY25-38.zip folder Customer Surveys.zip Excel 130file,""CXQuestionResponseCountsFY25.xlsx," tab "POS." Compare Docket No. ACR2024, Library Reference USPS-FY24-33, Excel file "WaitTimeInLineFY2024.xlsx," tab "Area Avg. Wait Time FY24," with 131Library Reference USPS-FY25-33, Excel file "WaitTimeInLineFY2025.xlsx," tab "Area Avg. Wait Time FY25."
132
Library Reference USPS-FY25-33, Excel file "WaitTimeInLineFY2025.xlsx," tab "Area Avg WT by QTR FY25." 132
9. Alternative Access to Postal Services
Figure VI-17
Retail Revenue by Channel
Source: January 30 Response to CHIR No. 2, question 22.b.; FY 2024 ACD at 105.
C. Customer Satisfaction with Market Dominant Products
2. Background 133
Library Reference USPS-FY25-38, folder "USPS-FY25-38.zip,"folder "Customer Surveys.zip," file "CXSurveysFY25.docx," at 20-23, 39-42. 133
Table VI-6
Customer Satisfaction with Market Dominant Mailing Services, by Percentage FY 2023-FY 2025
N/A - Residential customers were not asked about their satisfaction with this mailing service. Red indicates the score was worse than the prior fiscal year. Source: FY 2025 ACR at 45-46.
3. Commission Analysis
CHAPTER VII. FLATS FINANCIAL AND
SERVICE ISSUES
134 B. FY 2025 Flats Volume and Financial
Performance
135
See Docket No. SS2022-1, Flats Study (citing FY 2021 ACD at 31, 60); Docket No. SS2022-1, October 6, 2023 Flats Plan; Docket No. SS2022-1, 134June 25, 2025 Response. This unit revenue is calculated as the combined flats revenue divided by the combined flats volume. 135
1. Flats Cost Coverage and Volume
Table VII-1 Flats Cost Coverage, FY 2024-FY 2025
Figure VII-1
Cost Coverage of Selected Flats, FY 2021-FY 2025
136
In FY 2025, two major customers shifted their Carrier Route Flats to several letters categories, and one other major Carrier Route customer 136cut back significantly on its Marketing Mail mailings. Library Reference USPS-FY25-45, December 29, 2025, folder "Rule 3050.55 Cost Reduction," folder "Paragraph (b) -- Financial Report," PDF file "Part B Narratives - FY 25 Rule 3050.55.pdf," at 26.
Table VII-2
Flats Volume (Millions), FY 2024-FY 2025
2. FY 2025 Flats Price Increases
137 Table VII-3 Rate Increases for Flats, FY 2021-FY 2025
Note: Product price increases that were larger than the class-average price increase are highlighted in orange.
In FY 2025, the class average price increase was 7.385 percent for USPS Marketing Mail, and 9.385 for Periodicals. See Order No. 8867 at 5. 137Since the Periodicals class contains only In-County Periodicals and Outside County Periodicals, it's not possible for both Periodicals products to receive prices increases above the class average.
3. Unit Revenue, Unit Cost and Contribution
Table VII-4 Flats Unit Revenue, FY 2024-FY 2025
138 139 Table VII-5 Flats Unit Attributable Cost, FY 2024-FY 2025
Note: Changes in attributable cost greater than the 2025 CPI-U are highlighted in orange.
As required by the Commission's rules, the Postal Service provided a financial analysis for FY 2025 that identified flats products for which unit 138attributable costs increased faster than the average unit attributable cost for Market Dominant mail. See 39 C.F.R. § 3050.50(b)(4). In FY 2025, the average unit attributable cost increase for all Market Dominant mail was 2.7 percent. See Library Reference USPS-FY25-45, folder "Rule 3050.50 Flats," folder "Paragraph (b) -- Financial Report," PDF file "Part B Narratives - FY 25 Rule 3050.50.pdf," at 1-2 (Paragraph B Narratives). The CPI-U was calculated for FY 2025 (October 1, 2024-September 30, 2025) using the following formula: (CPI-U September 2025/CPI-U 139September 2024)-1 and expressed as a percentage; (324.800/315.301)-1 = 3.013 percent. See U.S. Bureau of Labor Statistics, Consumer Price Index, available at https://www.bls.gov/cpi/tables/supplemental-files; Archived Consumer Price Index Supplemental Files, available at https://www.bls.gov/cpi/tables/supplemental-files/historical-cpi-u-202511.xlsx.
Table VII-6 Flats Unit Contribution, FY 2024-FY 2025
Figure VII-2 Flats Contribution ($ Millions), FY 2021-FY 2025
C. Service Performance of Flats
Figure VII-3 Service Performance Scores for Flats Categories, FY 2024-FY 2025
140 141 Figure VII-4 Percent On-Time for Flats Categories, FY 2024-FY 2025
The Commission previously noted concerns that the improvements in flats service performance observed in FY 2023 appeared temporary 140(and were unlikely attributable to Flats Sequencing System (FSS) decommissioning) and emphasized that the underlying productivity and operational issues persisted. See Order No. 8436 at 63-65, 135-36. The Commission subsequently found that service performance for most flats products declined in FY 2024, that no flats product met its target, and that the Postal Service reduced multiple flats service performance targets for FY 2025. See Order No. 9398 at 24-27. Due to the change in local transportation, the Postal Service adjusted service standards regarding Leg 1 (First Mile) and implemented the new 141service standards on April 1, 2025. See FY 2025 ACR at 22. The Postal Service recently changed the methodology renaming First Mile as Leg 1. See, e.g., Order No. 8942 at 7.
Figure VII-5 Service Performance of USPS Marketing Mail Flats and Letters, FY 2021-FY 2025
142
The performance gap is calculated as the difference between the annual on-time performance score for letter-shaped categories and the 142corresponding flat-shaped categories within the same mail class and service standard (e.g., USPS Marketing Mail Letters minus USPS Marketing Mail Flats). The annual on-time performance scores used to calculate these differentials are reported in tables in the Commission's ACDs. For the last 5 fiscal years, including FY 2025, see Chapter VI, Table VI-1; FY 2024 ACD at 66; FY 2023 ACD at 126, 162; FY 2022 ACD at 133, 153; FY 2021 ACD at 141, 171.
D. Impact of Operational Initiatives and Methodological Changes
143
See Library Reference USPS-FY25-45, folder "Paragraph (f) -- Operational Changes Report," PDF file "FY25 Paragraph (f) Report.pdf" (FY 2025 143Operational Initiatives Report).
2. Flats-Specific Initiatives
- Bundle Breakage Initiatives
Table VII-7
Number of Facilities Receiving Additional Machines in FY 2025
Source: January 16 Response to CHIR No. 1, question 20.
144 145
o 146
o
FY 2025 Operational Initiatives Report at 5. Non-matching containers are containers that receive a scan from a facility scanner that does not 144match the barcode on the placard/label. Id. Docket No. ACR2019, Library Reference USPS-FY19-45, December 27, 2019, folder "Paragraph (f) -- Operational Changes Report," PDF file 145"Paragraph (f) Report.pdf," at 14. United States Postal Service, Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM), January 18, 2026. 146
o
o
o
o b. Mail Processing
c. Tracking Manually Processed Flats
3. Network Redesign 147
See Docket No. N2024-1, Advisory Opinion on the Operational and Service Standard Changes Related to the Delivering for America Plan, 147January 31, 2025 (Docket No. N2024-1, Advisory Opinion).
a. RPDC, LPC, and Sorting and Delivery Center (S&DC)
Updates
148
United States Postal Service, Office of Inspector General, Report No. 25-107-R26, The OIG's Oversight of the U.S. Postal Service's Delivering 148for America Plan - Volume 3, January 20, 2026, at 4, available at https://www.uspsoig.gov/sites/default/files/reports/2026-01/25-107-r26.pdf (OIG Report No. 25-107-R26).
Figure VII-6
Map of RPDCs and RPDC-LPCs Activated as of January 2026
Source: January 30 Response to CHIR No.1, folder "Question 30CHIR 01ACR 2025," Excel file "RPDC LPC Update Public.xlsx."
Figure VII-7
Map of S&DCs Activated as of FY 2025
Source: January 16 Response to CHIR No. 1, folder "Question 29CHIR 01ACR 2025," Excel file "ChIR 1 Q29 SDC Sites through 2026.xlsx."
Table VII-8
Percent Change in Air and Highway Transportation Costs, FY 2024-FY 2025
Note: Total Transportation Cost includes Air, Highway, Domestic Alaska Air, Railroad, and Domestic Water.
149 Table VII-9 Percent Change in Air and Highway Transportation Costs for First-Class Mail Flats and USPS Marketing Mail Flats, FY 2024-FY 2025
Note: Total Transportation Cost includes Air, Highway, Domestic Alaska Air, Railroad, and Domestic Water costs.
See United States Postal Service, Office of Inspector General, Report No. 24-050-1-R24, Mail Conditions at South Houston Local Processing 149Center, April 10, 2024, available at https://www.uspsoig.gov/sites/default/files/reports/2024-04/24-050-1-r24.pdf.
150 b. RTO Updates 151
February 6 Response to CHIR No. 7, question 18.b. The Commission notes that a 139 percent increase reported by the Postal Service is likely 150from the results of calculating the percent change before rounding the volume numbers to 5.9 million and 14.2 million. Id. FY 2025 ACR at 19; see Figure VII-8. The RTO initiative reduces underutilized trips to and from Post Offices that are over 50 miles from an 151RPDC. See Docket No. N2024-1, Advisory Opinion at 104-05.
Figure VII-8
5-Digit ZIP Codes Affected by RTO Implementation, FY 2024-FY 2025
Sources: January 16 Response to CHIR No. 1, folder "Question 28CHIR 01ACR 2025," Excel file "Q28RTO PO Total Routes.xlsx;" Docket No. RM2025-9 and PI2025-2, United States Postal Service Notice of Filing Ninth Report in Compliance with Order No. 8761, January 2, 2026, folder "RM2024-9USPSNinthReport," Excel file "USPSNinthReport_Part 2.xlsx."
152 153 154 Table VII-10 Intra-SCF Cost, in $(000), FY 2024-FY 2025
Docket No. N2024-1, Library Reference USPS-LR-N2024-13, October 7, 2024, folder "USPS-LR-N2024-1-3," folder "Market Dominant SSD 152Changes," Comma Separated Value file "Market Dominant SSD Changes 10.1.csv." February 6 Response to CHIR No. 5, folder "Question 08CHIR 05ACR 2025," Excel file "FY25 ChIR 5 Q8 RTO PO Total RoutesRevised.xlsx." 153 United States Postal Service, Office of Inspector General, Report No. 25-057-R25, Network Changes: Local Transportation Optimization in the 154New Orleans Region, September 9, 2025, available at https://www.uspsoig.gov/sites/default/files/reports/2025-09/25-057-r25.pdf (OIG Report No. 25-057-R25).
Table VII-11
RTO and Leg 2 Transportation Cost Estimates, FY 2023-FY 2025 155
156
Leg 2 transportation refers to the process of transporting mail from the origin facility to the destination facility. See Docket No. N2024-1, 155Advisory Opinion at 131. See Table VII-11. See also Docket No. N2024-1 Advisory Opinion at 131; Docket No. N2024-1, Direct Testimony of Curtis Whiteman on Behalf 156of the United States Postal Service, October 4, 2024 (USPS-T-5), at 10-11.
4. Other Operational Changes
- Data Quality Improvement 157
Docket No. SS2022-1, Responses of the United States Postal Service to Questions 1-10 of Chairman's Information Request No. 16, July 23, 1572025, question 10.
b. Improvements in Allied Operations, Transportation, and
Delivery
158 159 c. Other Operational Changes
See Library Reference USPS-FY25-45, folder "Rule 3050.50 Flats," folder "e.9 Trend Narrative.PRC.LR.9 Update," PDF file "FY25-45 3050.50 e.9 158Narrative.pdf" (Section e.9 Narrative). For details regarding changes in terminology from Last Mile to Leg 3, see, e.g., Order No. 8942 at 7. 159
5. Cost Impact of Methodological Changes 160 a. Labor Productivities for Non-Mods Manual Distribution
Using eFlash Data
161
See Library Reference USPS-FY25-45, folder "Paragraph (g) - Data Enhancement Report," PDF file "FY25.Paragraph G Data Enhancements.pdf" 160(FY25 Paragraph G Data Enhancements). Docket No. RM2025-4, Order Approving Analytical Principles Used in Periodic Reporting, February 21, 2025 (Order No. 8713). 161
b. Updated Facility Rental Analysis
162 c. Modifications to the Revenue, Pieces, and Weight
Reporting Methodology
163 d. Modifications to Marketing Mail and Periodicals Product
Descriptions, Updated Benchmark Prices for Workshare Discounts, Etc.
164
-
Docket No. RM2025-6, Order on Analytical Principles Used for Periodic Reports Concerning Updated Facility Rental Analysis, FY 2025, March 16214, 2025 (Order No. 8737). Docket No. RM2025-10, Order on Analytical Principles Used for Periodic Reports Concerning Revenue, Pieces, and Weight Methodology, July 16317, 2025 (Order No. 9025). Docket Nos. MC2025-1483 and RM2025-11, Order Approving in part Changes to Analytical Principles and Product Descriptions and Ordering 164Further Proceedings on Proposal One and Periodicals Zone-based Pricing, August 14, 2025 (Order No. 9086).
-
- Commission Analysis E. Inefficiencies in Collection, Processing,
Transportation, and Delivery of Flats
-
-
-
-
-
-
165 2. Bundle Processing
- Bundle Breakage Rates Table VII-12 Number of Bundles Processed and Broken, FY 2021-FY 2025
FY 2019 ACD at 161-74; FY 2020 ACD at 236-62; FY 2021 ACD at 241-62; Docket No. SS2022-1, Flats Study at 24; Order No. 8436 at 6; 20-160; 165Order No. 9398 at 13-38.
Figure VII-9 Bundle Breakage Rates, FY 2021-FY 2025
166
The Postal Service also refers to the SPBSTS as the Automated Parcel and Bundle Sorter (APBS), which is the updated name of the machine 166after upgrading the SPBSTS in 2011. See United States Postal Service, 2010 Comprehensive Statement on Postal Operations , 2010 Performance Report and 2011 Performance Plan, Chapter 3, available at https://about.usps.com/strategic-planning/cs10/CSPO_12_2010_FINAL_034.htm.
167 Figure VII-10 Distribution of Bundles Processed, FY 2021-FY 2025
See Figure VII-11. See also Library Reference PRC-LR-ACR2025-10. For Periodical bundles, the APPS bundle breakage rate is 1.2 percentage 167points higher than the SPBSTS bundle breakage rate. For USPS Marketing Mail, the APPS bundle breakage rate is 0.4 percentage points lower than the SPBSTS bundle breakage rate. Id.
Figure VII-11
APPS and SPBSTS Bundle Breakage Rates, FY 2021-FY 2025
Figure VII-12
Bundle Breakage by Machine, FY 2024-FY 2025
- Bundle Breakage Cost Impact
Figure VII-13
Cost Impact Per Broken Bundle, FY 2021-FY 2025
Figure VII-14 Total Cost Impact of Broken Bundles, FY 2021-FY 2025
168
See Library Reference USPS-FY25-45, folder "Paragraph (b) -- Financial Report," Excel file "FY25.Rule.3050.50.Para.B.xlsx," tab "Item b8" 168(FY25.Rule.3050.50.Para.B.xlsx).
169 Table VII-13 Other Factors Contributing to Increased Cost Impact of Broken Bundles, FY 2024-FY 2025
See Docket No. ACR2021, Responses of the United States Postal Service to Questions 1-3 of Chairman's Information Request No. 10, February 1699, 2022, question 1 (Docket No. ACR2021, Response to CHIR No. 10).
3. AFSM Processing 170 171
United States Postal Service, Office of Inspector General, Report No. DA-AR-07-005, Automated Flat Sorting Machine 100 Enhancements, 170September 10, 2007, at 1-2, available at https://www.uspsoig.gov/reports/audit-reports/automated-flat-sorting-machine-100-enhancements (OIG Report No. DA-AR-07-005). January 16 Response to CHIR No. 1, question 24. This discrepancy was corrected in the Notice of the United States Postal Service of Revisions 171to Annual Compliance Report and ACR Folders (USPS-FY25-3, USPS-FY25-11, USPS-FY25-33, USPS-FY25-45), January 16, 2026.
a. AFSM Volume and Productivity
Figure VII-15 Distribution of AFSM Volume Across Machine Type, FY 2021-FY 2025
172 Figure VII-16
Productivity by AFSM Type, FY 2021-FY 2025
The workhours used in calculating productivity in this section does not include mail preparation activities. In the Docket No. SS2022-1, Flats 172Study, the Commission included mail preparation workhours to do a deep dive into the relationship between workhours and volume to follow- up on a Postal Service response to previous Commission analysis. See Docket No. SS2022-1, Flats Study at 91-93. However, mail preparation data only distinguishes between AI and non-AI machines, and the Commission excludes mail preparation to analyze the four machine types separately.
b. Commission Analysis 4. Manual Sorting 173 a. Manual Mail Processing Costs for Flats
See Library Reference USPS-FY25-45, folder "Rule 3050.50 Flats," folder "Paragraph (e) -- Pinch Point Report," folder "e.3 eFlash," Excel file 173"E3.eFlash.FY21FY25.xlsx" (eFlash data); see also January 23 Response to CHIR No. 2, folder "Question 26, 29CHIR 02ACR 2025," Excel file "FY25.Rule.3050.50.Para.Brevised.xlsx," tab "Item b7" (citing Library Reference USPS-FY25-7, part 3) (Revised Para B).
Table VII-14
Costs of Manual Processing of Flat-Shaped Mail, FY 2024-FY 2025
b. eFlash (non-MODS CAG A-G) 174
See February 6 Response to CHIR No. 7, question 17. Non-MODS facilities are Post Offices, classified using CAG according to the volume of 174revenue generated. CAG A-G offices have 950 or more revenue units, CAG H-J have 190 to 949 units, CAG K offices have 36 to 189 units, and CAG L offices have fewer than 36 units, available at https://about.usps.com/publications/pub32/pub32_terms.htm.
Figure VII-17
Change in Unit Mail Processing Costs for Manually Processed Letters and Flats at CAG A-G Offices, FY 2020-FY 2025
Figure VII-18
Manual Flats Mailpieces per Workhour, FY 2021-FY 2025
175
January 30 Response to CHIR No. 5, question 3. The Postal Service classifies Post Offices according to volume of revenue generated using 175CAG. CAG A-G offices have 950 or more revenue units, available at https://about.usps.com/publications/pub32/pub32_terms.htm.
5. Allied Operations
- Costs 176 177
FY 2015 ACD at 173; see generally Periodicals Mail Study, Joint Report of the United States Postal Service and Postal Regulatory Commission, 176September 2011, October 13, 2011, available at https://about.usps.com/what/strategic-plans/postal-act-2006/periodicals-mail-study.pdf. See FY25.Rule.3050.50.Para.B.xlsx, tab "Item b11." 177
Figure VII-19
Flats Allied Operations Costs, FY 2021-FY 2025
- Work in Process Cycles
Figure VII-20
Cycle Times, FY 2024-FY 2025
178
See Docket No. SS2022-1, October 6, 2023 Flats Plan; see also Docket No. N2022-2, Advisory Opinion on Changes to the Critical Entry Times 178for Certain Categories of Periodicals, November 30, 2022.
6. Transportation
- Unit Costs Figure VII-21 Flats Purchased Transportation Unit Costs, FY 2021-FY 2025
b. On-Time Performance and Load Management
179 Table VII-15 On-Time Departure, On-Time Arrival, and Average Load, FY 2021-FY 2025
The SVWEB application allows "managers to pull reports presenting Area, District, and facility data, such as the number of trips that have 179arrived and departed over a given period of time, the percentage of the load on each trip (utilization), and the on-time performance for each trip." See Docket No. ACR2015, Third Response of the United States Postal Service to Commission Requests for Additional Information in the FY 2015 Annual Compliance Determination, Report Responding to Periodicals Pricing Directives, July 26, 2016, at 61-62 (Docket No. ACR2015, Postal Service Third Response).
7. Leg 3 (Last Mile)/Delivery
- Costs 180 181 182 183 184
In Docket No. ACR2025, the Postal Service uses a new term, Leg 3, when referring to the Last Mile See Section e.9 Narrative at 4. For details 180regarding changes in terminology from Last Mile to Leg 3, see, e.g., Order No. 8942 at 7. Order No. 4697 at 2 n.2, 19-21, 41; FY 2016 ACD at 127; Docket No. SS2022-1, Flats Study at 125. 181 See FY25.Rule.3050.50.Para.B.xlsx, tab "Item b13." 182 See Docket No. ACR2024, Responses of the United States Postal Service to Questions 1-12 of Chairman's Information Request No. 7, February 1837, 2025, question 8.c., 8.e. (Docket No. ACR2024, Response to CHIR No. 7); Docket No. RM2022-3; Docket No. RM2024-2. The Commission City carrier in-office costs are calculated by summing in-office direct labor and three in-office support cost components, which make up cost 184segment 6. See Library Reference USPS-FY25-2, December 29, 2025, folder "USPS-FY25-2," Excel file "FY25Public Cost Segs and Comps.xlsx," tab "CS06." This analysis is different than the dependent component analysis in Section VII.F.3.a., which focuses on the in-office direct labor dependent component of the delivery functional category.
Figure VII-22
City Delivery Carriers - Office Activity Unit Costs, FY 2021-FY 2025
- Leg 3 (Last Mile) Impact 185
See Docket No. RM2018-1, Response of the United States Postal Service to Commission Information Request No. 1, December 4, 2017, 185question PP6-4.b. The Postal Service states that some of the measurement systems under the Transit-Time Measurement System provides the calculations of the LMI for flats. Id.
Table VII-16
Last Mile Impact: Change Year Over Year, FY 2025-FY 2024
F. Analysis of Unit Costs for Major Functional
Categories by Dependent Component
186 187 188 189
See FY25.Rule.3050.50.Para.B.xlsx, tab "Item b2." 186 The Commission performed the analysis of flats unit costs for major functional categories by dependent component in the FY 2021 ACD at 187262 and the Docket No. SS2022-1, Flats Study Report at 152. Functional cost categories are not the same as cost segments and include all relevant cost segments and dependent components from other 188cost segments. For details, see Library Reference USPS-FY25-24, December 29, 2025, PDF file "USPS-FY25-24.Preface.pdf," Excel file FY25Public.PB.xlsx, tab "DOC." For the list of the major dependent components within the three main functional cost categories, see Docket No. SS2022-1, Flats Study at 154. Non-operational piggyback factors are employed in cost studies to augment labor cost estimates for the major functions by adding the costs 189associated with supervisors and administration, service-wide benefits, along with facility-related and equipment-related costs. See Library Reference USPS-FY25-24, folder "USPS-FY25-24," PDF file "USPS-FY25-24.Preface.pdf."
1. Overall Flats Unit Attributable Costs by
Functional Category (Mail Processing, Delivery, Purchased Transportation, and Other)
190 191
See Docket No. ACR2024, Response to CHIR No. 7, question 8.c., 8.e.; Docket No. RM2022-3; Docket No. RM2024-2. The Commission 190 See Docket No. ACR2024, Response to CHIR No. 7, question 8.c. The Postal Service primarily attributes the FY 2024 decrease in purchased 191transportation unit cost in FY 2024 to the NDC unwind initiative that integrated the parallel SCF and NDC transportation networks into a single network. See id.
Figure VII-23
Total Flats Products Unit Attributable Cost by Functional Category, FY 2021-FY 2025
192
Bound Printed Matter Flats also experienced a decrease in the share of delivery cost, but it was smaller (this share decreased from 33.5 192percent to 26.7 percent, or by 6.8 percentage points), and the product comprises only a small share of the overall flats volume (i.e., less than one percent in both FY 2024 and FY 2025). See Docket No. ACR2024, Library Reference USPS-FY24-1, December 30, 2024, Excel file "PublicFY24CRAReport.xlsx"; Docket No. ACR2025, Library Reference USPS-FY25-1, December 29, 2025, Excel file "PublicFY25CRAReport.xlsx."
Figure VII-24 Distribution of Flats Unit Cost by Functional Cost Category by Product, FY 2024 and FY 2025
2. Trends in Unit Attributable Costs of Mail
Processing Dependent Components
Figure VII-25 Mail Processing Functional Category Unit Cost for Non-Compensatory Products,
Figure VII-26
Mail Processing Dependent Components Unit Costs for USPS Marketing Mail Flats,
- Trends in Unit Costs of Delivery Dependent
Components
193
See FY25.Rule.3050.50.Para.B.xlsx, tab "Item b2," column F (citing Library Reference USPS-FY25-24). 193
Figure VII-27
Delivery Functional Category Unit Cost for Non-Compensatory Products, FY 2021-FY 2025
- City Carriers
Figure VII-28
In-Office Direct Labor and Delivery Activities Dependent Components Unit Cost for Non- Compensatory Products, FY 2021-FY 2025
b. Rural Carriers
194 Figure VII-29 Rural Evaluated Routes Dependent Component Unit Cost for Non-Compensatory Products,
See Docket No. ACR2024, Response to CHIR No. 7, question 8.c., 8.e.; Docket No. RM2022-3; Docket No. RM2024-2. The Commission 194
4. Trends in Unit Costs of Purchased Transportation
Dependent Components
Table VII-17 Distribution of Flats Purchased Transportation Unit Cost Across Dependent Components,
Figure VII-30
Purchased Transportation Functional Category Unit Costs by Dependent Component,
195
While In-County Periodicals also experienced an increase of 31.6 percent, the absolute increase is very small (only one-tenth of a cent) since 195transportation costs were at most three-tenths of a cent on average between FY 2021 and FY 2025.
Figure VII-31
Purchased Transportation Functional Category Unit Cost for Non-Compensatory Products,
- Comments H. Conclusions and Recommendations
Appendix A: Key Commission Findings and Directives Requiring Postal Service
Action for Future Annual Compliance Reports
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Ground Advantage (MMNPR2-0163); Priority Mail Express, Priority Mail & USPS Ground Advantage (MMNPR1-0176); Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 306; Priority Mail Express, Priority Mail & USPS Ground Advantage Contract 278; Priority Mail & USPS Ground Advantage Contract 113; Priority Mail & USPS Ground Advantage Contract 312; Priority Mail & USPS Ground Advantage Contract 148; Priority Mail Express & USPS Ground Advantage Contract 1; Priority Mail & USPS Ground Advantage Contract 347; Priority Mail Express, Priority Mail, USPS Ground Advantage & Parcel Select Contract 2; Priority Mail Contract 755; Priority Mail Contract 800; Priority Mail Contract 805; Priority Mail Contract 807; Priority Mail Contract 809; Priority Mail Contract 815; Priority Mail Contract 850.
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The Commission notes that although one included contract within the Global Expedited Package Services-Non-Published Rates 16 (GEPS --2NPR 16) product did not cover its attributable cost, the GEPS--NPR 16 product as a whole covered its attributable cost.
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Mid-year refers to the aggregation of the data for Quarters 1 and 2 of the fiscal year. 3
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See February 13 Response to CHIR No. 4, questions 8-11, folder "PUBLICSupporting MaterialsCHIR 4_ ACR 20252.13.2026.zip folder 4Question 08-11CHIR 04_ACR 2025;" Excel file "PostOfficesFY2025 (REV.2.13.26).xlsx."
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See February 13 Response to CHIR No. 4, questions 9-11, folder "PUBLICSupporting MaterialsCHIR 4_ ACR 20252.13.2026.zip folder 5Question 08-11CHIR 04_ACR 2025," Excel file "PostOfficesFY2025 (REV.2.13.26).xlsx."
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Appendix B: Initial and Reply Comments
Greeting Card Association Initial Comments of the Greeting Card GCA Comments Association for Postal Comments of the Association for Postal PostCom Comments National Association of Presort Comments of the National Association of NAPM Comments National Postal Policy Council Comments of the National Postal Policy NPPC Comments News/Media Alliance (N/MA) Comments of the News/Media Alliance, N/MA Comments Pitney Bowes Inc. (Pitney Comments of Pitney Bowes Inc. Pitney Bowes Public Representative (PR) Public Representative Comments PR Comments United States Postal Service Reply Comments of the United States Postal Service Reply Commenter Commerce (PostCom) Commerce, January 27, 2026. (GCA) Association, January 27, 2026. Mailers (NAPM) Presort Mailers, January 27, 2026. (NPPC) Council, January 27, 2026. January 27, 2026. Bowes) January 27, 2026. Comments January 27, 2026. (Postal Service) Postal Service, February 10, 2026. Comments
Appendix C: Information Requests and Responses to Information Requests
Chairman's Information Request No. 1 and Notice of Filing Under Seal, January 9, Chairman's Information Request No. 2 and Notice of Filing Under Seal, January Chairman's Information Request No. 4 and Notice of Filing Under Seal, January Chairman's Information Request No. 5 and Notice of Filing Under Seal, January Chairman's Information Request No. 8 and Notice of Filing Under Seal, February Chairman's Information Request No. 19 and Notice of Filing Under Seal, March Chairman's Information Request No. 7 and Notice of Filing Under Seal, January CHIR No. 1 CHIR No. 2 CHIR No. 8 CHIR No. 19 CHIR No. 7 Chairman's Information Requests 2026. 16, 2026. Chairman's Information Request No. 3, January 21, 2026. CHIR No. 3 23, 2026. 23, 2026. 30, 2026. 6, 2026. Chairman's Information Request No. 9, February 6, 2026. CHIR No. 9 Chairman's Information Request No. 10, February 13, 2026. CHIR No. 10 Chairman's Information Request No. 11, February 13, 2026. CHIR No. 11 Chairman's Information Request No. 13, February 20, 2026. CHIR No. 13 Chairman's Information Request No. 15, March 4, 2026. CHIR No. 15 Chairman's Information Request No. 17, March 6, 2026. CHIR No. 17 20, 2026.
The Postal Service filed a motion for late acceptance of its January 23 Response to CHIR No. 1. See Motion of the United States Postal Service 1for Late Acceptance of the Response to Questions 1, 21, 25, 27, 30 of Chairman's Information Request No. 1, January 23, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its January 30 Response to CHIR No. 1. See Motion of the United States Postal Service 2for Late Acceptance of the Response to Chairman's Information Requests, January 30, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its January 30 Response to CHIR No. 2. See Motion of the United States Postal Service 3for Late Acceptance of the Response to Chairman's Information Requests, January 30, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its February 2 Response to CHIR No. 4. See Motion of the United States Postal Service 4for Late Acceptance of the Response to Questions 1-2 of Chairman's Information Request No. 4, February 2, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its February 5 Response to CHIR No. 3. See Motion of the United States Postal Service 5for Late Acceptance of the Response to Chairman's Information Request No. 3, February 5, 2026. The motion is granted.
Notice of the United States Postal Service of Filing its Responses to Questions 1-Notice of the United States Postal Service of Filing its Responses to Questions 1, Notice of the United States Postal Service of Filing its Responses to Questions 1-Notice of the United States Postal Service of Filing its Responses to Question 30 of Notice of the United States Postal Service of Filing its Responses to Questions 11, Notice of the United States Postal Service of Filing its Responses to Questions 3-7, Notice of the United States Postal Service of Filing its Responses to Questions 1-7 Notice of the United States Postal Service of Filing its Responses to Questions 1-2 January 16 Response to January 23 Response to January 23 Response to January 30 Response to January 30 Response to January 30 Response to January 30 Response to February 2 Response to February 5 Response to 20, 22-24, 26, 28-29, 31-38 of Chairman's Information Request No. 1 and of Filing 21, 25, 27 of Chairman's Information Request No. 1 and of Filing Materials Under 10, 12-21, 23-36, 38-49 of Chairman's Information Request No. 2 and of Filing Chairman's Information Request No. 1 and of Filing Materials Under Seal - Third 22, 37 of Chairman's Information Request No. 2 and of Filing Materials Under Seal 12-14 of Chairman's Information Request No. 4 and of Filing Materials Under Seal of Chairman's Information Request No. 5 and of Filing Materials Under Seal - First of Chairman's Information Request No. 4 and of Filing Materials Under Seal - February 5 Response to Information Request No. 6 and Notice of Filing Materials Under Seal, February 5, CHIR No. 1 CHIR No. 1 CHIR No. 2 CHIR No. 1 CHIR No. 2 CHIR No. 6 Responses to Chairman's Information Requests Information Request No. 3 and of Filing Materials Under Seal, February 5, 2026.CHIR No. 3 Materials Under Seal - First Response Set, January 16, 2026. Seal - Second Response Set, January 23, 2026.Materials Under Seal - First Response Set, January 23, 2026. Response Set, January 30, 2026.- Second Response Set, January 30, 2026.- First Response Set, January 30, 2026. Response Set, January 30, 2026. Second Response Set, February 2, 2026.2026.
The Postal Service filed a motion for late acceptance of its February 6 Response to CHIR No. 5. See Motion of the United States Postal Service 6for Late Acceptance of the Response to Questions 8-9 of Chairman's Information Request No. 5, February 6, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its February 13 Response to CHIR No. 4. See Motion of the United States Postal Service 7for Late Acceptance of the Response to Chairman's Information Requests, February 13, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its February 13 Response to CHIR No. 7. See Motion of the United States Postal Service 8for Late Acceptance of the Response to Chairman's Information Requests, February 13, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its February 23 Response to CHIR No. 8. See Motion of the United States Postal Service 9for Late Acceptance of the Response to Question 12 of Chairman's Information Request No. 8, February 24, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its February 26 Response to CHIR No. 11. See Motion of the United States Postal 10Service for Late Acceptance of the Responses to Questions 1-3 of Chairman's Information Request No. 11, February 26, 2026. The motion is granted.
Notice of the United States Postal Service of Filing its Responses to Questions 1-3 Notice of the United States Postal Service of Filing its Responses to Questions 8-9 Notice of the United States Postal Service of Filing its Responses to Questions 1-9, February 6 Response to Notice of the United States Postal Service of Filing its Responses to Questions 8-Notice of the United States Postal Service of Filing its Response to Question 10 of Notice of the United States Postal Service of Filing its Responses to Questions 1-Notice of the United States Postal Service of Filing its Responses to Questions 4-7 Notice of the United States Postal Service of Filing its Responses to Questions 1-5, Notice of the United States Postal Service of Filing its Response to Questions 12 of February 13 Response to February 13 Response to February 26 Response to February 6 Response to February 13 Response to February 20 Response to February 20 Response to February 20 Response to February 23 Response to 11 of Chairman's Information Request No. 4 - Third Response Set, February 13, February 26 Response to 11-25 of Chairman's Information Request No. 7 and Notice of Filing Materials CHIR No. 7 Chairman's Information Request No. 7 - Second Response Set, February 13, 11, 13 of Chairman's Information Request No. 8 and Notice of Filing Materials Information Request No. 10 and Notice of Filing Materials Under Seal, February of Chairman's Information Request No. 11 - Second Response Set, February 26, of Chairman's Information Request No. 5 - Second Response Set, February 6, of Chairman's Information Request No. 11 - First Response Set, February 20, 13-15 of Chairman's Information Request No. 12 - First Response Set, February Chairman's Information Request No. 8 - Second Response Set, February 23, CHIR No. 7 CHIR No. 8 CHIR No. 10 CHIR No. 11 CHIR No. 12 CHIR No. 11 CHIR No. 8 2026.Under Seal - First Response Set, February 6, 2026. 2026.2026.Under Seal - First Response Set, February 13, 2026. 20, 2026. 2026. 20, 2026. 2026.Information Request No. 13, February 26, 2026. CHIR No. 13 2026.
The Postal Service filed a motion for late acceptance of its February 27 Response to CHIR No. 12. See Motion of the United States Postal 11Service for Late Acceptance of the Responses to Questions 6-12 of Chairman's Information Request No. 12, February 26, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its March 3 Response to CHIR No. 9. See Motion of the United States Postal Service for 12Late Acceptance of the Responses to Chairman's Information Request No. 9, March 3, 2026. The motion is granted. The Postal Service filed a motion for late acceptance of its Response to CHIR No. 15. See Motion of the United States Postal Service for Late 13Acceptance of the Responses to Chairman's Information Request No. 15, March 17, 2026. The motion is granted.
Notice of the United States Postal Service of Filing its Responses to Questions 6-February 27 Response to March 3, 2026 Response to Information Request No. 17 and Notice of Filing Materials Under Seal, March 13, Response to CHIR No. 17 12 of Chairman's Information Request No. 12 - Second Response Set, February CHIR No. 12 Response to CHIR No. 15 27, 2026.Information Request No. 9, March 3, 2026.CHIR No. 9 2026. Information Request No. 15, March 17, 2026.
Appendix D: Reports
Docket No. ACR2025, United States Postal Service FY 2025 Annual Compliance Docket No. ACR2024, United States Postal Service FY 2024 Annual Compliance United States Postal Service Fiscal Year 2025 Annual Report to Congress, United States Postal Service Fiscal Year 2024 Annual Report to Congress, United States Postal Service, Delivering for America: Our Vision and Ten-Year Plan United States Postal Service, Delivering for America Second-Year Progress Report, DFA Second-Year Progress FY 2025 ACR FY 2024 ACR FY 2025 Annual Report FY 2024 Annual Report DFA Plan Annual Compliance Determination Delivering for America Plan Annual Compliance Report Annual Report to Congress Report, December 29, 2025. Report, December 30, 2024. Docket No. ACR2024, Annual Compliance Determination, March 28, 2025. FY 2024 ACD Docket No. ACR2023, Annual Compliance Determination, March 28, 2024. FY 2023 ACD Docket No. ACR2022, Annual Compliance Determination, March 29, 2023. FY 2022 ACD Docket No. ACR2021, Annual Compliance Determination, March 29, 2022. FY 2021 ACD Docket No. ACR2020, Annual Compliance Determination, March 29, 2021. FY 2020 ACD Docket No. ACR2019, Annual Compliance Determination, March 25, 2020. FY 2019 ACD Docket No. ACR2018, Annual Compliance Determination, April 12, 2019. FY 2018 ACD Docket No. ACR2017, Annual Compliance Determination, March 29, 2018. FY 2017 ACD Docket No. ACR2016, Annual Compliance Determination, March 28, 2017. FY 2016 ACD Docket No. ACR2015, Annual Compliance Determination, March 28, 2016. FY 2015 ACD Docket No. ACR2014, Annual Compliance Determination, March 27, 2015. FY 2014 ACD Docket No. ACR2013, Annual Compliance Determination, March 27, 2014. FY 2013 ACD Docket No. ACR2010, Annual Compliance Determination, March 29, 2011. FY 2010 ACD December 29, 2025 - Library Reference USPS-FY25-17. December 30, 2024 - Library Reference USPS-FY24-17. to Achieve Financial Sustainability and Service Excellence, March 23, 2021. April 2023. Report
Docket No. SS2022-1, Submission of the United States Postal Service Flats Plan Docket No. SS2022-1, United States Postal Service Response to Commission Order Docket No. SS2022-1, Docket No. SS2022-1, June Docket No. ACR2023, Financial Analysis of United States Postal Service Financial Docket No. SS2022-1, Flats Pursuant to Section 206 of the Postal Service Reform Act of 2022, October 6, Docket No. RM2024-4, Elasticity Study, Phase 1, June 9, 2025 (Revised June 23, Docket No. RM2024-4, on Postal Service Flats Plan and Supplemental Flats Plan and Application for Non-FY 2023 Financial Analysis Docket No. SS2022-1, Flats Operations Study Report, April 6, 2023. October 6, 2023 Flats Plan 25, 2025 Response Financial Analysis of the United States Postal Service Financial Results and 10-K Statement Flats Operations Study Report Results and 10-K Statement, June 17, 2024. Study 2023. 2025, January 13, 2026). Revised Elasticity Study Public Treatment, June 25, 2025.
Appendix E: Orders
Docket No. RM2023-7, Order on Analytical Principles Used in Periodic Reporting Docket No. RM2009-11, Order Establishing Final Rules Concerning Periodic Docket No. PI2022-1, Notice and Order Providing an Opportunity to Comment on Docket No. ACR2022, Order Granting Motion for Extension of Time to Respond (Proposal Two), Directing the Postal Service's Participation in Further Docket Nos. RM2024-4, et al., Advance Notice of Proposed Rulemaking on the Order No. 6659 Docket No. PI2010-1, Notice and Order Providing an Opportunity to Comment, Reporting of Service Performance Measurements and Customer Satisfaction, Order No. 465 Docket No. MC2010-24, Order Approving Mail Classification Schedule Docket No. PI2015-1, Order Approving Use of Internal Measurement Systems, Docket No. RM2017-1, Order Adopting Final Rules Relating to the Institutional Docket No. RM2018-1,Order Adopting Final Rues on Reporting Requirements Docket No. RM2017-3, Order Adopting Final Rules for the System of Regulating the Postal Service's Process for Resolving Suspended Post Offices, February 3, Order No. 6101 and for Partial Reconsideration of Question 9 of Chairman's Information Request Order No. 6440 Proceedings, and Providing Notice of Filing Attachment Under Seal, August 31, Docket No. R2023-3, Order on Market Dominant Price Change Creating Two Docket No. RM2023-5, Notice of Proposed Rulemaking to Amend Rules Regarding Statutory Review of the System for Regulating Rates and Classes for Market Order No. 7032 Docket Nos. MC2019-127 and CP2019-136, Order Adding Priority Mail Express & Order No. 335 Order No. 1575 Order No. 4697 Order No. 4963 Order No. 5077 Order No. 5086 Order No. 5763 Order No. 6713 Order No. 6953 November 9, 2009. March 25, 2010. Docket No. ACR2010-R, Order on Remand, August 9, 2012. Order No. 1427 Descriptions and Prices for Nonpostal Service Products, December 11, 2012. July 5, 2018. Cost Contribution Requirement for Competitive Products, January 3, 2019. Priority Mail Contract 92 to the Competitive Product List, April 30, 2019. Related to Flats, May 8, 2019. Rates and Classes for Market Dominant Products, November 30, 2020. 2022. No. 10, February 10, 2023. 2023. Incentives, September 27, 2023. Competitive Negotiated Service Agreements, January 30, 2024. Dominant Products, April 5, 2024.
Docket No. MC2024-413, Order Approving the Removal of International Money Docket No. RM2025-6, Notice of Proposed Rulemaking on Analytical Principles Docket No. RM2025-10, Notice of Proposed Rulemaking on Analytical Principles Docket No. R2024-2, Order on Price Adjustments for First-Class Mail, USPS Transfer Service-Outbound and Conditionally Approving the Removal of Docket No. RM2025-4, Notice of Proposed Rulemaking on Analytical Principles Docket No. R2025-1, Order on Price Adjustments for First-Class Mail, USPS Docket Nos. RM2024, et al., Order Presenting Findings on the Statutory Review of Order No. 7352 Marketing Mail, Periodicals, Package Services, and Special Services Products and Order No. 7155 International Money Transfer Service-Inbound from the Competitive Product List, Docket No. RM2023-11, Order on Analytical Principles Used in Periodic Reporting Docket No. RM2022-3, Order Approving Analytical Principles Used in Periodic Used for Periodic Reports Concerning Labor Productivities for Non-Mods Manual Order No. 8002 Used for Periodic Reports Concerning Updated Facility Rental Analysis, FY 2025, Order No. 8459 Docket No. ACR2024, Order Granting Motion for Partial Reconsideration of Docket No. RM2020-5, Final Order Amending Rules Regarding Rate Incentives for Docket No. RM2025-4, Order Approving Analytical Principles Used in Periodic Docket No. RM2025-6, Order on Analytical Principles Used for Periodic Reports Docket Nos. RM2024-9 and PI2025-2, Interim Order Regarding Proposed Service Docket No. ACR2024, Determination of Available Market Dominant Rate Marketing Mail, Periodicals, Package Services, and Special Services Products and Order No. 8867 Used for Periodic Reports Concerning Revenue, Pieces, and Weight Methodology, Order No. 8882 the System for Regulating Rates and Classes for Market Dominant Products Order No. 8891 Order No. 7391 Order No. 7411 Order No. 8656 Order No. 8708 Order No. 8713 Order No. 8737 Order No. 8761 Order No. 8760 June 3, 2025. Related Mail Classification Changes, May 30, 2024. August 9, 2024. (Proposal Six), August 20, 2024. Reporting (Proposal One), August 26, 2024. Distribution, FY 2025, November 15, 2024. Docket No. SS2022-1, Order on Postal Service Flats Plan, December 27, 2024. Order No. 8436 December 30, 2024. Question 14 of Chairman's Information Request No. 2, January 24, 2025. Market Dominant Products, February 19, 2025. Reporting, February 21, 2025. Concerning Updated Facility Rental Analysis, FY 2025, March 14, 2025. Performance Measurement Changes, March 28, 2025. Authority, March 28, 2025. Related Mail Classification Changes, May 30, 2025. (Phase 1 Completion), June 9, 2025.
Docket Nos. MC2025-1483 and RM2025-11, Notice and Order Concerning United Docket Nos. MC2025-1483 and RM2025-11, Order Denying in Part United States States Postal Service Proposal to Modify the Product Descriptions of First-Class Docket No. RM2024-4, et al., Notice of Proposed Rulemaking on the Statutory Docket No. RM2025-12, Notice of Proposed Rulemaking on Analytical Principles Docket Nos. MC2025-1483 and RM2025-11, Order Approving in Part Changes to Postal Service Proposal to Modify the Product Descriptions of First-Class Mail, Docket No. ACR2025, Notice Requesting Comments on the Postal Service FY 2025 Docket No. K2025-825, Order Approving Modification to Inbound Competitive Order No. 8907 Order No. 9260 Docket No. RM2024-4, et al., Procedural Order on Phased Rulemaking, June 9, Review of the System for Regulating Rates and Classes for Market Dominant Order No. 8893 Mail, USPS Marketing Mail, and Periodicals and Notice of Proposed Rulemaking to Docket No. RM2024-9, et al., Interim Order Regarding Further Proceedings on Used for Periodic Reports Concerning USPS Marketing Mail Workshare Discount Order No. 8990 Docket No. RM2025-10, Order on Analytical Principles Used for Periodic Reports Analytical Principles and Product Descriptions and Ordering Further Proceedings Order No. 9086 USPS Marketing Mail, and Periodicals and Denying in Part the Petition of the Docket No. MC2026-21, Order Approving Material Classification Changes Docket No. RM2023-7, Order on Motion for Reconsideration and Clarification of Docket No. ACR2025, Notice and Order Regarding the Postal Service's Fiscal Year Annual Performance Report and FY 2026 Annual Performance Plan, January 7, Order No. 9422 Docket No. SS2022-1, Order on Postal Service Supplemental Flats Plan, December Multi-Service Agreement with Foreign Postal Operator - FY25-3 and Directing Order No 9413 Order No. 8892 Order No. 8942 Order No. 9025 Order No. 9333 Order No. 9377 Order No. 9398 Order No. 9417 Docket No. PI2022-1, Order Closing Docket, November 25, 2025. Order No. 9370 2025. Products (Phase 2A Initiation), June 9, 2025. Initiate a Proceeding to Change Analytical Principles, June 12, 2025. Planned Service Performance Measurement Changes, June 27, 2025. Passthroughs, July 9, 2025. Concerning Revenue, Pieces, and Weigh Methodology, July 17, 2025. on Proposal One and Periodicals Zone-Based Pricing, August 14, 2025. United States Postal Service to Change Analytical Principles, October 10, 2025. Regarding Competitive International Registered Mail, November 5, 2025. Order No. 6659, December 1, 2025. 15, 2025. Further Actions, December 30, 2025. 2025 Annual Compliance Report, December 30, 2025. 2026.
Docket No. RM2024-4, et al., Order Adopting Rules Limiting Frequency of Rate Increases Above the De Minimis Threshold and Adding Criteria for Workshare Order No. 9426 Discounts for Market Dominant Products (Phase 2A Completion), January 13, Docket Nos. RM2024-4, et al., Procedural Order on 39 CFR 3010.201(B) Proposals, Order No. 9427 2026. January 13, 2026.
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