BEFORE THE POSTAL REGULATORY COMMISSION RETAIL ACCESS OPTIMIZATION INITIATIVE Docket No. N2011-1 DIRECT TESTIMONY OF JOHN P KLINGENBERG ON BEHALF OF THE PUBLIC REPRESENTATIVE PR-T-2 Table of Contents Autobiographical Sketch 2 Purpose and Scope of Testimony 2-3 What is the Cost of Operating the Postal Retail Network? 3-6 Analysis of the “Low-Workload” RAOI Proposal Data Availability Limits Analysis of the RAOI Proposal 6 The Operating Cost of the 2646 RAOI Offices 6-7 “Low-Workload” for Which Data is Available was Under $210 Million in FY 2010 RAOI Post Offices Operational Data 7-8 “Low-Workload” The Selection Criteria Identifies Rural Offices that “Low-Workload” Operate at a Deficit Low-Workload Means Low-Revenue 8-9 Low-Workload and Low-Revenue Means that Only 35 of 2825 10-11 Offices Operated at a Profit in FY2010 “Low-Workload” Low-Workload Means that the Nearest Post Office is a Driving 11-12 Distance of 10.3 Miles Away Analysis of the RAOI Proposal Using Geographic Information System (GIS) The The Distance to the Nearest Post 12-13 Current “As Crow Flies” Office The Impact of the RAOI Proposal 13-14 International Perspective on Proximity to Postal Outlets 14-15 Low Workload Offices Provide Service to Rural Americans 15-16 The Postal Service Should Consider Important Demographic, Operational, and Geographic Information Data When Developing Selection Criteria 10,000 Post Offices Cost Less Than $825 Million to Operate in 16 FY2010, or Less than 1.1% of USPS Total Operating Costs The RAOI Proposal Does Not Lead to a Pareto Dominant Result 17-18 Can the Postal Service Spend Less on its Retail Network and Achieve a Pareto Dominant Result?
BEFORE THE POSTAL REGULATORY COMMISSION RETAIL ACCESS OPTIMIZATION INITIATIVE Docket No. N2011-1 DIRECT TESTIMONY OF JOHN P KLINGENBERG ON BEHALF OF THE PUBLIC REPRESENTATIVE PR-T-2 Table of Contents Autobiographical Sketch 2 Purpose and Scope of Testimony 2-3 What is the Cost of Operating the Postal Retail Network? 3-6 Analysis of the “Low-Workload” RAOI Proposal Data Availability Limits Analysis of the RAOI Proposal 6 The Operating Cost of the 2646 “Low-Workload” RAOI Offices 6-7 for Which Data is Available was Under $210 Million in FY 2010 “Low-Workload” RAOI Post Offices Operational Data 7-8 The “Low-Workload” Selection Criteria Identifies Rural Offices that Operate at a Deficit Low-Workload Means Low-Revenue 8-9 Low-Workload and Low-Revenue Means that Only 35 of 2825 10-11 “Low-Workload” Offices Operated at a Profit in FY2010 Low-Workload Means that the Nearest Post Office is a Driving 11-12 Distance of 10.3 Miles Away Analysis of the RAOI Proposal Using Geographic Information System (GIS) The Current “As The Crow Flies” Distance to the Nearest Post 12-13 Office The Impact of the RAOI Proposal 13-14 International Perspective on Proximity to Postal Outlets 14-15 Low Workload Offices Provide Service to Rural Americans 15-16 The Postal Service Should Consider Important Demographic, Operational, and Geographic Information Data When Developing Selection Criteria 10,000 Post Offices Cost Less Than $825 Million to Operate in 16 FY2010, or Less than 1.1% of USPS Total Operating Costs The RAOI Proposal Does Not Lead to a Pareto Dominant Result 17-18 Can the Postal Service Spend Less on its Retail Network and Achieve a Pareto Dominant Result?
PR-T-2%20Revised.docx