Network PRS mail flow models have been added for machinable, non-machinable outside (NMO), and oversized parcels and now incorporate parcel volume that used to be in the discontinued RNDC PRS price categories. Id. at 2-3. These mail flow models are similar to those used for Parcel Select Ground, with the exception that they incorporate the fact that all return parcels are entered at delivery units and include additional operations to account for scanning and postage due costs specific to PRS parcels. Id. at 4-5. In addition, operations were added to or removed from the return delivery unit (RDU) PRS machinable, NMO, and oversize mail flow models to more accurately reflect the actual mail processing costs incurred by the Postal Service for these price categories. Id. at 5. Impact. The mail processing cost model is used to de-average estimated mail processing costs by shape for Parcel Select/PRS and to estimate separate costs for each price category. Given that the product-level mail processing cost by shape estimates are identical to those in Docket No. ACR2016, the mail processing unit cost estimates for some price categories increased while the mail processing unit cost estimates for other price categories decreased. Id. at 14. Full Network PRS cost estimates were added to the analysis. The Postal Service states that this change contributed to a lower Cost and Revenue Analysis (CRA) proportional adjustment factor, which normally would have resulted in lower return sectional center facility (RSCF) and RDU PRS mail processing unit cost estimates. Id. at 15. While the decreases to the RSCF mail processing unit cost estimates all exceeded 8 percent, the RDU machinable and NMO cost estimates increased over 4 percent and the RDU oversize cost estimate decreased by more than 30 percent. Id. The RDU results were caused by changes that were made to the cost models. The container loading costs were removed from the models, and postage due costs were added to the models to reflect the fact that the RDU prices now vary by weight increment. Id. A full list of impacts by price category is shown in Table 1. Id. at 18.
Network PRS mail flow models have been added for machinable, non-machinable outside (NMO), and oversized parcels and now incorporate parcel volume that used to be in the discontinued RNDC PRS price categories. Id. at 2-3. These mail flow models are similar to those used for Parcel Select Ground, with the exception that they incorporate the fact that all return parcels are entered at delivery units and include additional operations to account for scanning and postage due costs specific to PRS parcels. Id. at 4-5. In addition, operations were added to or removed from the return delivery unit (RDU) PRS machinable, NMO, and oversize mail flow models to more accurately reflect the actual mail processing costs incurred by the Postal Service for these price categories. Id. at 5. Impact. The mail processing cost model is used to de-average estimated mail processing costs by shape for Parcel Select/PRS and to estimate separate costs for each price category. Given that the product-level mail processing cost by shape estimates are identical to those in Docket No. ACR2016, the mail processing unit cost estimates for some price categories increased while the mail processing unit cost estimates for other price categories decreased. Id. at 14. Full Network PRS cost estimates were added to the analysis. The Postal Service states that this change contributed to a lower Cost and Revenue Analysis (CRA) proportional adjustment factor, which normally would have resulted in lower return sectional center facility (RSCF) and RDU PRS mail processing unit cost estimates. Id. at 15. While the decreases to the RSCF mail processing unit cost estimates all exceeded 8 percent, the RDU machinable and NMO cost estimates increased over 4 percent and the RDU oversize cost estimate decreased by more than 30 percent. Id. The RDU results were caused by changes that were made to the cost models. The container loading costs were removed from the models, and postage due costs were added to the models to reflect the fact that the RDU prices now vary by weight increment. Id. A full list of impacts by price category is shown in Table 1. Id. at 18.
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