1. ® 1 Agenda SPM Exclusion Process & Exclusion Definitions Update SPM Matrix Data Sources Open Discussion

2. ® 2 Job Exclusions and Mailer Decertification request A job exclusion is a request to have a specific mailer job be removed from Service Performance Measurement (SPM). Reasons for an exclusion request could be, but not limited to, incorrect Start The Clock (STC) method was used, mail was not received on the associated appointment, mail entered at the incorrect facility. A mailer decertification request is made when a mailer is unable to or does not correct the eDoc submitted to PostalOne! or is submitting mailings that do not match the eDoc. Mailer decertification removes all mail submitted by the mailer from SPM until the local office identifies that the problem has been resolved working with the mailer. Once the mailer is in compliance, a request to recertify the mailer must be submitted. Mailers will be decertified for no more than 30 days at a time. *Note - Not performing scanning is not a valid reason for exclusions providing the facility had the opportunity to perform the SV scan or an IMDAS scan.

3. ® 3 How a request is submitted Submit request to Area Customer Service Program Analyst & BMS Include mailer’s CRID, Job number, Explanation Provide supporting documentation including screen shots from Service Performance Diagnostics and EDW –Start The Clock Reporting Once received and approved, a formal request will go to the appropriate team for notification. Allow up to 2 weeks after the submission, for the mail to be removed from SPM *Note – Notification to the mailer should be made locally if the reason for the exclusion is due to mailer error. This will expedite the error from being fixed and the mail being entered into Service Performance.

4. ® 4 Service Exclusions: Incorrect Entry Facility Exclusion Definition: The entry facility (locale key or postal code) in the eDoc provided by the mailer does not match the facility specified in the associated FAST Appointment for a container Occurs with origin mail that is directed by USPS across multiple entry facilities depending on time of day and mail characteristics. For example, a mailer may be directed to take mail to either an air mail facility or service transfer center depending on the time of day when the mail is being entered at the USPS. Mailers using a single locale key in the eDoc, for example only the STC, will have mail entered at the other facility excluded.  The USPS recommends that mailers provide the locale key whenever possible.  The USPS will evaluate scan compliance to ensure USPS personnel scan every container when it arrives at the entry facility.  The Postal Service developed a fact sheet, "Accurate Entry Facility Identification for Full-Service" to be used for widespread communication throughout the industry to educate mailers on correct usage. This will be communicated through individual contact with mailers as the issue occurs.

5. ® 5 Service Exclusions: Invalid Entry Point for Entry Discount Exclusion Definition: The entry facility in the eDoc provided by the mailer does not match the facility in the Mail Direction File (MDF) for that container destination ZIP and entry discount being claimed for a container  Mailers who claim a drop-ship discount are not using the Mail Direction File to identify the correct entry location for the container destination zip and entry discount. The Postal Service developed a fact sheet for the industry to educate mailers on correct usage. This will be communicated through individual contact with mailers as the issue occurs.

6. ® 6 Service Exclusions: Inaccurate Ship Date Exclusion Definition: The scheduled ship date for USPS- transported container in the eDoc is more than 48 hours before the postage statement finalization date/time and the container does not receive a scan when it arrives at the USPS facility. This occurs when the scheduled mail date is delayed for any reason and the mail.dat/mail.XML file is not updated with the new correct ship date and time. This will be communicated through individual contact with mailers as the issues occurs. USPS is developing a fact sheet to be used as communication to the industry

7. ® 7 Service Exclusions: Duplicate IMb Exclusion Definition: An IMb is used more than once in 45 day period. Duplicates are part of the current mailer monitoring process and communicated through individual contact with mailers as issues occur. USPS developed a fact sheet to used as communication to the industry to educate mailers on importance of IMb management.

8. ® 8 ® Mailer Scorecard – SPM Exclusion Tab February 2015 8

9. ® 9 Contents  Exclusion Overview  Exclusion Reasons & Examples  Mailer Scorecard - SPM Exclusion Report Overview  Report Prompts  Report Results  Report Calculations & Examples 9

10. ® 10 Service performance is measured for all Full-Service mailpieces that: Have received Start-the-Clock Have at least one mailpiece automation scan, and Have passed the exclusion rules A mailpiece can be excluded for one or more reasons Mailer attributable exclusion reasons can be categorized into: Issues in eDoc preparation that may result in inaccurate measurement Issues in mail preparation that may impact processing or delivery Mailer attributable exclusion reasons are listed on the next 2 slides Overview

11. ® 11 Exclusion Reasons Exclusion ReasonExclusion Description Applicable Induction Method Undeliverable-As- Addressed / PARS Undeliverable-as Addressed (UAA) mail as indicated by ACS and/or PARS operation when mail piece is processed. ALL Incorrect Entry Facility eDoc entry facility does not match the facility specified in the associated FAST Appointment. Origin Verified Mailer Transported, Drop Ship Non-Unique IMbeDoc contains mail pieces with a non-unique IMb.ALL Invalid Entry Point for Entry Discount (FAST MDF) Entry Point for Entry Discount claimed in eDoc is invalid for the entry point and destination of the mail. Drop Ship FAST Appointment Irregularity Irregularity with the mailing/trip captured by FAST. (e.g. contents not matching 8125) Origin Verified Mailer Transported, Drop Ship Inaccurate Scheduled Ship Date eDoc scheduled ship date time is 48+ hours earlier than the postage statement finalization date time. DMU Verified USPS Transported Non-Unique IMtbNon-unique IMtb or default IMtb.ALL Orphan Handling UnitMailpiece associated to an Orphan Handling Unit not inducted at a BMEU. ALL except BMEU entered Non-Unique Physical IMcb Physical containers with non-unique IMcb on the placard.ALL Non-Unique IMcbNon-unique 99M Container Barcode.ALL

12. ® 12 Exclusion ReasonExclusion Description Applicable Induction Method Invalid Delivery PointInvalid delivery ZIP code.ALL Unknown Entry FacilityThe entry facility provided in the eDoc is unknown.Drop Ship PBV Threshold FailureMail did not pass performance based verifications (PBV).ALL Invalid Origin ZIP5Entry point 5 digit ZIP does not match a valid Area or District.ALL Invalid Start-the-Clock Date Start-the-Clock date is 120 days or more before the current date.ALL Destination Entered FCM First Class Mail was identified as Destination entered in the eDoc.Drop Ship Broken PalletSV identified the Container to be a broken pallet.ALL Inaccurate eDoc Nesting Nesting discrepancies in mail preparation between the FS IMD sample scan and eDoc. ALL Invalid Container Level for Entry DFSS container entered at non-FSS sitesDrop Ship Incorrect Appointment Non-matching Appointments between the eDoc and the SV unload scans associated Appointment. Origin Verified Mailer Transported, Drop Ship Container Overflow Flats overflow volume from one logical or physical tray to another that's not in the same Logical/Physical Container. ALL Non-CompliantMail identified as non-compliant due to inaccuracies in mail prep.ALL Exclusion Reasons

13. ® 13 Mail is excluded when container’s eDoc Entry Facility and the associated FAST Appointment Facility do not match. IMcbeDoc Locale KeyeDoc Facility FAST Appt. Locale Key FAST Appt. Facility 99M000554360401175200W23426DALLASW23331NORTH TEXAS 99M0005543618471761XXW26475FORT WORTHW23331NORTH TEXAS 99M000554363930175200W23426DALLASW23331NORTH TEXAS 99M000807337165009001Z22760SACRAMENTOZ22801SAN FRANCISCO 99M000807351165009001Z22760SACRAMENTOZ22801SAN FRANCISCO 99M000807356165002001Z22760SACRAMENTOZ22801SAN FRANCISCO 99M000908338468001001Z18841SALT LAKE CITY ANNEX016686SALT LAKE CITY ASF 99M000908344468005502Z18841SALT LAKE CITY ANNEX016686SALT LAKE CITY ASF 99M000908345468004501Z18841SALT LAKE CITY ANNEX016686SALT LAKE CITY ASF 99M0049980000000005VIZ24277ANAHEIMZ22855SANTA ANA 99M004998000000000622Z24277ANAHEIMZ22855SANTA ANA 99M049301119371400011X18765HAMBURGX18801HARRISBURG 99M106810000007057061Y22837SAINT PETERSBURGY23078TAMPA 99M10681000000705708CY22837SAINT PETERSBURGY23078TAMPA 99M106810000007057090Y22837SAINT PETERSBURGY23078TAMPA 99M106518000000077650W24129HOUSTONW24934NORTH HOUSTON 99M106518000000077703W24129HOUSTONW24934NORTH HOUSTON Exclusion Reason Examples: Incorrect Entry Facility 13

14. ® 14 Mail is excluded when container’s entry point discount facility type is invalid for the entry point facility and destination, based on the FAST MDF v2 14 Exclusion Reason Examples: Invalid Entry Point for Entry Discount IMcb CodeEntry Point Facility Entry Point Locale Key Entry Point Discount Contr. Destn. ZIP Code Comments 99M10010000PS04401517BALTIMOREV22931ADC207ZIP/Facility not in MDF/LL 99M10010000EJ22315119BALTIMOREV22931ADC21601ZIP/Facility not in MDF/LL 99M10000000PS04396639KANSAS CITYW1B651DNDC64399ZIP not in MDF/LL 99M901597001000761592KANSAS CITY NDCW20787DNDC64399ZIP not in MDF/LL 99M901024518000003127MINNEAPOLIS SAINT PAUL NDCY26253DNDC50902ZIP/Facility not in MDF/LL 99M901597001000759582NEW JERSEY NDCV10697DNDC00102ZIP not in MDF/LL 99M106491000000156836NEW JERSEY NDCV10697DNDC00102ZIP not in MDF/LL 99M10000000PS04398260NEW JERSEY NDCV10697DNDC00102ZIP not in MDF/LL 99M107948QDS104128182CHICAGO NDCW12400ADC601ZIP/Facility not in MDF/LL 99M10010000PS04401481CLEVELANDX20577ADC150ZIP/Facility not in MDF/LL 99M10010000PS04401692CLEVELANDX20577ADC150ZIP/Facility not in MDF/LL 99M10010000EJ22469576KANSAS CITYW1B651ADC64240ZIP not in MDF/LL 99M10010000EJ22469593KANSAS CITYW1B651ADC64240ZIP not in MDF/LL 99M10000000EJ23082549KANSAS CITYW1B651ADC64240ZIP not in MDF/LL 99M10010000EJ22883926KANSAS CITYW1B651ADC64240ZIP not in MDF/LL 99M106538000003467925KANSAS CITYW1B651ADC64240ZIP not in MDF/LL 99M100059D27100231409NEW YORKV19160DDU10021ZIP/Facility not in MDF/LL 99M100059D27100231410NEW YORKV19160DDU10023ZIP/Facility not in MDF/LL

15. ® 15 Mail is excluded when a container’s eDoc Scheduled Ship Date is more than 48 hours earlier than the Postage Statement Finalization. IMcbScheduled Ship DateFinalization Date Hours Between 99M20005400000001018312/3/2014 14:0012/5/2014 18:1352.22 99M10653300000097202012/4/2014 14:5012/18/2014 13:29334.66 99M10653300000097202212/4/2014 14:5012/16/2014 13:12286.38 99M10653300000097235412/4/2014 14:5012/8/2014 12:3693.78 99M10653300000097238312/4/2014 14:5012/9/2014 11:48116.98 99M10653300000097238612/4/2014 14:5012/10/2014 12:14141.42 99M10653300000097243012/4/2014 14:5012/12/2014 12:20189.52 99M10653300000097243112/4/2014 14:5012/11/2014 12:03165.23 99M10653300000097245012/4/2014 14:5012/12/2014 12:20189.52 99M10653300000097629812/4/2014 14:5012/18/2014 11:23332.56 99M10653300000097630512/4/2014 14:5012/17/2014 11:10308.34 99M10653300000097630612/4/2014 14:5012/16/2014 16:23289.55 99M10653300000097631112/4/2014 14:5012/17/2014 11:10308.34 99M10653300000097631212/4/2014 14:5012/13/2014 10:18211.47 99M10653300000097631312/4/2014 14:5012/10/2014 13:48142.98 99M10651600000002018412/5/2014 14:0012/12/2014 15:47169.79 99M90104803200000038012/5/2014 14:0012/9/2014 10:5192.86 15 Exclusion Reason Examples: Inaccurate Scheduled Ship Date

16. ® 16 SPM Exclusions tab of the Mailer Scorecard provides mailers visibility into what percentage of their mail is excluded from measurement and why. Resolving these issues will ensure more mail is measured.  The Mailer Scorecard prompts for Mailer (eDoc Submitter) and Month  The SPM Exclusions tab shows:  Total Full Service Volume for SPM  % Excluded due to Mailer Attributable Error  % Excluded for each individual Exclusion Reasons – This is a percentage of excluded volume, not total volume. The sum of % Excluded for each Exclusion Reason will be 100%.  SPM Exclusions metrics are shown by Mail Product:  First Class Mail Letters  First Class Mail Flats  Standard Letters  Standard Flats  Periodicals  As with other tabs of the Mailer Scorecard, SPM Exclusions data is grouped by Mailer (eDoc Submitter) Mailer Scorecard - SPM Exclusions Report Overview

17. ® 17 Report Prompts 17

18. ® 18 1.The report only shows data that applies for the selected Mailer and Month. -Mail Products include: First Class Mail Letters, First Class Mail Flats, Standard Letters, Standard Flats, Periodicals. If a Mail Product does not appear in the drop down, it means that no mailpieces for that product type for that Mailer were measured in the selected month. -The same applies for Exclusion Reason. If an Exclusion Reason is not listed, mail was not excluded for that reason in the selected month. 2.“--” indicates no data applies, or mail was not excluded for that reason “0.00%” indicates the percent excluded for that exclusion reason was less than 0.01% 3.Listed below the “% Excluded due to Mailer Attributable Error” line item, are the exclusion reasons and % excluded for each. These are a percentage of excluded volume NOT % of total volume. The sum of % Excluded for each Exclusion Reason will be 100%. 4.The Legend and Export functions do not apply to the SPM Exclusions Tab. Report Results 11

19. ® 19 Report Metric Calculations 19

20. ® 20 Inputs: Total Full Service Piece Count: 26,815,241 pieces Total Excluded Piece Count: 2,961,831 pieces Exclusion Piece Counts: Volumes displayed below Total Exclusion Count: Sum of all Exclusion Piece Counts Calculations: Exclusion ReasonVolumeCalculationResult Total Full Service Volume for SPM26,815,241---26,815,241 % Excluded due to Mailer Attributable Error2,961,8312,961,831 / 26,815,24111.05% Undeliverable-as-Addressed / PARS61,017 [ 61,017 / 3,088,802 ] * 1001.98% Incorrect Entry Facility64,365[ 64,365 / 3,088,802 ] * 1002.08% Non-Unique IMb2,454,906[ 2,454,906 / 3,088,802 ] * 10079.48% Invalid Entry Point for Entry Discount (FAST MDF)368,213[ 368,213 / 3,088,802 ] * 10011.92% FAST Appointment Irregularity72,086[ 72,086 / 3,088,802 ] * 1002.33% Non-Unique Physical IMcb68,155[ 68,155 / 3,088,802 ] * 1002.21% Invalid Delivery Point 60[ 60 / 3,088,802 ] * 1000.00% 20 Total = 100% Report Metric Calculation Example Total Exclusion Count = 3,088,802

21. ® 21 First Class Mail Letters

22. ® 22 Mail Not In Measurement Exclusion Reason Descriptions Exclusion ReasonExclusion Description Mailer Attributed Invalid Entry Point for Entry Discount (FAST MDF) Entry Point for Entry Discount claimed in eDoc is invalid for the entry point and destination of the mail Y Incorrect Entry Facility eDoc entry facility does not match the facility specified in the associated FAST Appointment Y Non-Unique IMbeDoc contains mail pieces with a non-unique IMb Y Undeliverable-as- Addressed / PARS Undeliverable-as Addressed (UAA) mail as indicated by ACS and/or PARS operation when mail piece is processed Y Inaccurate Scheduled Ship Date eDoc scheduled ship date time is 48+ hours earlier than the postage statement finalization date time Y FAST Appointment Irregularity Irregularity with the mailing/trip captured by FAST (e.g. contents not matching 8125) Y Non-Unique Physical IMcb Physical containers with non-unique IMcb on the placardY Orphan Handling Unit Mail piece associated to an Orphan Handling Unit (e.g. loose tray) that is not inducted at a Business Mail Entry Unit Y Non-Compliant Mail identified as non-compliant due to inaccuracies in mail preparationY No Piece Scan No automation scan observed for the mail pieceN No Start-the-Clock Lack of a container unload scan or inability to identify the FAST appointment associated to the container N Long Haul Mail verified at a DMU then transported by USPS to a mail processing facility in a different district than the DMU N Inconsistent SPM data Mail piece received inconsistent scan events when calculating SPM (container/mail piece scans not in chronological order) N Excluded ZIPs Excluded from SPM due to 3 digit delivery ZIPs that are not measuredN

23. ® 23 First-Class Mail® (Letters) Reasons why mail is not in measurement Attributed to Mailers 33.30% Attributed to USPS / Unknown 66.70% Exclusion Reason % of Excluded % of Total* No Start-the-Clock40.24%25.10% Non-Compliant12.22%7.62% Unknown Verification Facility11.61%7.24% No Piece Scan8.12%5.06% Incorrect Entry Facility7.45%4.65% Non-Unique IMb5.06%3.16% Long Haul5.04%3.15% Undeliverable-as-Addressed / PARS3.75%2.34% Inaccurate Scheduled Ship Date2.36%1.47% Other4.15%2.60% * Mail can be excluded due to more than one reason. As a result, the sum of individual exclusion percentages (62%) is greater than the overall percentage of mail not in measurement (48%) In January 2015, 47% of Full-Service First-Class Letters were excluded from measurement

24. ® 24 First Class Mail Flats

25. ® 25 First-Class Mail® (Flats) Reasons why mail is not in measurement Attributed to Mailers 25.25% Attributed to USPS / Unknown 74.75% Exclusion Reason % of Excluded % of Total* No Start-the-Clock47.12%38.77% No Piece Scan16.54%13.61% Non-Compliant14.87%12.23% Long Haul10.75%8.84% Non-Unique IMb6.45%5.31% Undeliverable-as-Addressed / PARS2.01%1.66% Inaccurate Scheduled Ship Date0.71%0.58% Incorrect Entry Facility0.62%0.51% Orphan Handling Unit0.32%0.27% Other0.61%0.50% * Mail can be excluded due to more than one reason. As a result, the sum of individual exclusion percentages (82%) is greater than the overall percentage of mail not in measurement (60%) In January 2015, 60% of Full-Service First-Class Flats were excluded from measurement

26. ® 26 Standard Mail Letters Visibility and Service Performance

27. ® 27 Standard Mail® (Letters) Reasons why mail is not in measurement Exclusion Reason % of Excluded % of Total* No Start-the-Clock53.36%30.17% No Piece Scan20.59%11.64% Non-Compliant7.92%4.48% Invalid Entry Point for Entry Discount (FAST MDF) 6.67%3.77% Non-Unique IMb4.61%2.61% Undeliverable-as-Addressed / PARS1.60%0.90% Incorrect Entry Facility1.51%0.85% Non-Unique IMtb1.22%0.69% FAST Appointment Irregularity0.98%0.56% Other1.53%0.87% Attributed to Mailers 25.25% Attributed to USPS / Unknown 74.75% * Mail can be excluded due to more than one reason. As a result, the sum of individual exclusion percentages (57%) is greater than the overall percentage of mail not in measurement (45%) In January 2015, 45% of Full-Service Standard Letters were excluded from measurement

28. ® 28 Standard Mail Flats Visibility and Service Performance

29. ® 29 Exclusion Reason % of Excluded % of Total* Non-Compliant37.29%26.66% No Start-the-Clock26.91%19.24% No Piece Scan24.51%17.52% Invalid Entry Point for Entry Discount (FAST MDF) 5.27%3.77% Non-Unique IMb2.15%1.54% Invalid Container Level for Entry1.16%0.83% Incorrect Entry Facility0.67%0.48% Orphan Handling Unit0.53%0.38% FAST Appointment Irregularity0.41%0.29% Other1.11%0.78% Standard Mail® (Flats) Reasons why mail is not in measurement * Mail can be excluded due to more than one reason. As a result, the sum of individual exclusion percentages (71%) is greater than the overall percentage of mail not in measurement (55%) Attributed to Mailers 48.42% Attributed to USPS / Unknown 51.58% In January 2015, 55% of Full-Service Standard Flats were excluded from measurement