1 Service Measurement Status Report MTAC: November 19, 2008

2 As of October 1; gathering data through three approaches:  External: Single-piece Domestic and International First- Class Mail, Periodicals  Hybrid: Commercial First-Class, Standard  Internal: Packages, Special Services

3 External Measurement:  Applies to:  First Class (Single-Piece) - EXFC  Single Piece International – IMMS  Third-party vendor creates “test mail”  “Test Mail” anonymously dropped into USPS network; date/time recorded  “Test Mail” received by panel of recipients; date/time recorded

4 USPS Mail Processing Test Mail Fabrication Test Mail Induction Test Mail Receipt Acceptance Origin Processing Destination Processing Delivery Single-piece First Class Mail / External First-Class (EXFC )

5 EXFC Points of Emphasis:  As of October 1, 2009, virtually all 3-Digit SCF’s are included in EXFC  Specific 3-Digit, and in limited cases 5-Digit, exclusions were already submitted to PRC

6 Hybrid Measurement:  Will take effect with the implementation of the Intelligent Mail – Release 2  First Class (Pre-sort)  Standard  Periodicals  Supplements mail scans from internal Intelligent Mail® system with externally collected data

7 Origin Processing Destination Processing Delivery Acceptance Transport to Delivery Unit Transport to Destination Delivery Unit Processing Stop-the-Clock External reporters scan IMB on mail at delivery Visible through Intelligent Mail, up to final MPE Operation Code or other scan event  External Measurement  External Reporters will scan live mail  Contractor will calculate last mile service performance factor for each mail class  Factor combined with IM data to form end-to-end measurement Hybrid Measurement Approach Delivery Factor External Stop-the-Clock

8 First Class Pre-Sort and Standard Interim Approach  Uses “first processing scan” at point of entry as a proxy for Start-the-Clock  Processing scan on USPS automated equipment clearly demonstrates the mailing has been entered into USPS Network  As Mailers/USPS demonstrate capability, we will transition to container scans at entry

9 Periodicals Interim Approach  Use two external systems -  Red Tag and DelTrak  Measurement reported by external provider  Statistical validity only at Area level  Once IMB adoption is sufficient, measurement process similar to commercial letters and flats Start-the-ClockStop-the-Clock FAST appointment and container scans Delivery date reported by each system’s monitors

10 Internal Measurement:  Applies to:  Package Services  Special Services  Package Services rely upon Delivery Confirmation data (Retail and BMC Bulk Entry)  Special Services cover a broad range of products with distinctly different data

11  Testing saturation flat mail measurement  “Home Depot” method  Start the clock: saturation mail barcode scanned “arrival at unit”  Stop the clock: saturation mail barcode scanned when delivered  Developing remittance mail analytics  Supplements EXFC diagnostic data  Uses sort plan data from postal processing equipment Further enhancements: