Tightening the Timeline
September 24, 2006
A very important date was announced at the National PCC Day event in Dallas, Texas on September 20. Postmaster General Jack Potter stated that the USPS was preparing for a Rate Case implementation date of May 6, 2007. If he is correct, that means the timeline just got much, much tighter.
In many ways, a Rate Case is like a marathon. The official yells “start” and we all begin scrambling to review the proposed rate changes and price adjustments as quickly as possible. After a bit, we start to get into our stride and really begin digging into the details of the case and what it will mean to our businesses. This is the long stretch of the case and runs for 10 months.
Then, after the Board of Governors and the Postal Rate Commission issue their final rulings, we have this massive mad dash to the finish line. Sometimes this dash can be done in 30 days, sometimes 60, and in every case, we hope to have at least 90 days.
Unfortunately, with a May 6 date as PMG Potter stated, it looks like another mad dash is in store for us. It’s really disappointing if that is the case, because it puts the industry and the USPS in a perilous situation. Mailers depend on PAVE™ certified software to prepare their mailings, and the USPS PAVE department has to review the output of the various software products in order to certify them. This takes time and there are many reports to review. Moreover, if a problem is discovered in the software, it often means re-taking the test.
The worst possible situation that could occur with a tightened timeline is to put customers in a state of perpetual update. This is when changes start occurring at the last minute, and we get caught in a series of continuous software revisions. Customers have to scramble to download and install the updates, which takes time and is fraught with potential for mistakes.
Hopefully, the May 6 date is a worst case scenario and not what we will actually see. From a timing aspect, it would seem to make more sense to put the implementation date at July 31, 2007. That is the date that the next CASS Certified™ software (cycle L) has to be installed.
Whatever the actual date may be, we can certainly be sure of one thing. It’s going to be another grueling race. Runners…take your mark!
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Reader Comments (8)
What's the story on Delivery Point Validation (DPV) and the 2007 rate case implementation? I'm hearing everything from "no big deal" to "it's really going to slow processing". What's the scoop?
That's a tough question to answer because we don't know when the USPS Board of Governors will hand down the official Rate Case. It all depends on how much of a window the USPS gives us. Generally, we plan for a 30 day implementation window, hope for a 90 day, and ultimately settle on 60 days. Let's hope that the USPS will listen to the suggestions from the Mailers Council and provide the industry a 90 day implementation window.
A lot of concerns are being expressed in the industry right now regarding DPV performance. The answer depends greatly on how much memory you have and if you are using the caching options in the software. Most of our customers are seeing less than a 5% impact on performance once they increase their memory (optimally to 4 gig) and turn on the caching options.
Have you heard any thing different?
What types/classes of mail would be affected by this change?
Thank you,
Penny
There are a number of key dates next year, some are related to the proposed rate case and some are related to the next CASS cycle. Here is a quick look at what happens when.
May 1, 2007 – CASS Certified software for Cycle L is supposed to arrive at end user locations for implementation. This is the CASS cycle that will require the address to be confirmed by DPV data and updated using LACSLink data.
May 6, 2007 – This is the date that PMG Jack Potter has targeted for rate case implementation. You can plan on seeing your PAVE certified software sometime around this date unless the USPS is willing to recognize the need for a larger implementation window and thus avoid the mad dash I talk about in this blog entry.
July 31, 2007 – This is the last date that you can use CASS Cycle K software.
August 1, 2007 – This is the date that CASS Cycle L software must be used in order to claim postal automation discounts for any class of mail. Note that this is when the address must be DPV confirmed at the primary level and updated using LACSLink data. Any address that does not DPV confirm or have LACSLink applied will not receive a ZIP + 4 Code and will thus have to mail at the 5-digit rate.
July 2009 – This is the date cited in the rate case Federal Register Notice when all addresses for all classes of mail must have a ZIP + 4 Code, and be confirmed as deliverable using DPV data in order to achieve ANY type of postage discount. In other words, if you do not have a complete and correct address using CASS Certified software, you can expect to pay full single piece First Class rate for your mail. July is actually a bit off; the date will likely be August 1, 2009 since that is when CASS Cycle N would go into effect.
A very busy spring is in store for us!
Regards,
Chris
Thank you very much for the information.
Penny