August 13, Certified Mail Tracking Number:
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1 August 13, 2013 Mr. Cliff Guffey President American Postal Workers Union, AFL-CIO 1300 L Street, NW Washington, DC Certified Mail Tracking Number: Dear Cliff: As information, attached is a copy of the first Post Implementation Review for the Owensboro, Kentucky Customer Service Mail Processing Center (CSMPC) Area Mail Processing (AMP). In accordance with the Non-Disclosure Agreement dated February 11, 2013, the Postal Service is providing both redacted and unredacted copies of the PIR. If you have any questions, please contact Rickey Dean at extension Sincerely, Patrick M. Devine Manager Contract Administration (APWU) Enclosure L: ENFANT PLAZA SW WASHiNGTON DC VV'f,/VV.USPS.COM (CA )
2 REDACTED Type of Distribution Consolidated: Orig & Dest Facility Name & Type: Owensboro CSMPC Street Address: 54 Bon Harbor His City: Owensboro State: KY 50 Facility ZIP Code: District: Kentuckiana Area: Eastern Finance Number: Current 30 ZIP Code(s): 423 Miles to Gaining Facility: 43.1 EXFC office: Yes Plant Manager: Michael Noritis (A) Senior Plant Manager: Steve Cronic District Manager: David J. Dillman Facility Name & Type: Evansville, P&DF Street Address: 7100 Petersburg Rd City: Evansville State: IN 50 Facility ZIP Code: District: Kentuckiana Area: Eastern Finance Number: Current 30 ZIP Code(s): 424, 476, 477 EXFC office: Yes Plant Manager: Jemal Jones Senior Plant Manager: Steve Cronic District Manager: David J. Dillman Approval Date: February 23, 2012 Implementation Date: Oct PIR Type: 1st PIR Date Range of Data: Processing Days per Year: 310 Bargaining Unit Hours per Year: 1,742 EAS Hours per Year: 1,819 Oct : Mar Date of HQ memo, DAR Factors/Cost of Borrowing! May?, 2010 New Facility Start-up Costs Update Date & Time this workbook was last saved: :05 Area Vice President: Vice President, Network Operations: Area AMP Coordinator: NAI Contact: Joshua D. Colin David E. Williams Bob Roseberry Todd Katkow PIR Data Entry Page 1
3
4 Last Saved: August 4, 2013 Executive Summary Date Range of Data: PIR Type: 1st PIR Oct Mar Losing Facility Name and Type: Street Address: City: State: Current SCF ZIP Code(s): Type of Distribution Consolidated: Owensboro CSMPC 54 Bon Harbor His Owensboro KY..:O:..:r.;;ig~...&.:;,.,:D:..:e:..:s:..:.t Gaining Facility Name and Type: Street Address: City: Savings/Costs 1st PIR vs Pre AMP 1st PIR vs Approved Function 1 Workhour Savings Non-Processing Craft Workhour Savings (less Maint!Trans) PCES/EAS Workhour Savings Transportation Savings Maintenance Savings Space Savings ($158,449) ($170,590) $372,304 $266,199 $237,219 $0 ($214,610) ($170,590) $372,304 $200,526 $237,219 $0 from Worl<hour Costs - Combined from Other Curr vs Prop from Other Curr vs Prop from Transportation HCR and Transportation PVS from Maintenance from Space Evaluation and Other Costs Total Annual Savings $546,684 $424,850 Total One-Time Costs $0 $0 from Space Evaluation and Other Costs Total First Year Savings $546,684 $424,850 Staffing Craft Position Loss PCES/EAS Position Loss from Staffing-Graff from Staffing-PCES!EAS Service First-Class Mail Service Performance (EXFC & PFCM 0/N) Losing Current Qtr 97.56% Gaining Current Qtr 98.12% from Service Performance & CSM First-Class Mail Service Performance (EXFC & PFCM 2 Day) 97.00% 96.81% from Service Performance & CSM First-Class Mail Service Performance (EXFC & PFCM 3 Day) 96.12% 95.48% from Service Performance & CSM Customer Experience Measurement Overall Satisfaction Residential at PFC level Customer Experience Measurement Overall Satisfaction Small Business at PFC level 91.86% 83.43% from Service Performance & CSM from Service Performance & CSM PIR Executive Summary 3
5 Cal~ulatiQD Befe[im~es Combined Losing and Gaining Facility Data: PreAMP Function 1 Workhour Costs $8,877,226 Non-Processing Craft Workhour Costs {less Maintenance & Transportation) $8,218,283 PCESIEAS Workhour Costs $1,910,066 Transportation Costs $2,741,006 Maintenance Costs $4,482,549 Space Savings $0 Total Annual Cost $26,229,130 Total One-Time Costs $0 Total First Year Costs $26,229,130 Proposed $8,821,065 $8,218,283 $1,910,066 $2,675,333 $4,482,549 $0 $26,107,296 $0 $26,107,296 1st PIR $9,035,675 $8,388,874 $1,537,761 $2,474,807 $4,245,329 $0 $25,682,446 $0 $25,682,446 Staffing Craft Position Total On-Rolls 270 PCESIEAS Position Total On-Rolls st PIR vs Pre-AMP Function 1 Workhour Savings ($158,449) Non-Processing Craft Workhour Savings (less Maintrrrans) ($170,590) PCESIEAS Workhour Savings $372,304 Transportation Savings $266,199 Maintenance Savings $237,219 Space Savings $0 Total Annual Savings $546,684 1st PIR vs Proposed (A~~roved) AMP ($214,610) ($170,590) $372,304 $200,526 $237,219 $0 $424,850 Approved AMP $56,161 $0 $0 $65,673 $0 $0 $121,834 Total One-Time Costs $0 $0 $0 Total First Year Savings $546,684 $424,850 $121,834 Staffing Craft Position Loss 12 PCESIEAS Position Loss PIR Executive Summary 4
6 Summary Narrative Last Saved: August 4, 2013 Losing Facility Name and Type: Owensboro CSMPC Current SCF ZIP Code(s): 423 Type of Distribution Consolidated: Orig & Dest Gaining Facility Name and Type: Evansville, P&DF Current SCF ZIP Code(s): 424, 476, 477 Background: The Eastern Area, with the assistance of the Kentuckian a District, has completed the first Post Implementation Review (PIR) of the Area Mail Processing (AMP) proposal that consolidated mail f1 Owensboro KY CSMPC (423) into the Evansville IN P&DF. This AMP consolidated all letter, flat,< parcel volumes from the Owensboro KY CSMPC into the Evansville IN P&DF. The transfer of mai processing was completed on August 11, The Owensboro KY CSMC is a Postal owned facility located approximately 43 miles from the Evar P&DF. Financial Summary: The data for the PIR period was 10/01/2012 to 03/31/2013. It included all operations for the Owem CSMPC and the Evansville IN P&DF. Financial savings identified during this six month PIR study for this consolidation of destinating ope are: Total projected First Year Savings: $546,684 Combined Losing and Gaining Facility Data: Funcoon 1 wonmoor Costs Non-Processing Crall Wort<hour Costs --.I.Tm-) PCESJEAS Wort<hour Costs TmfiSil()rta!ICO Costs Maintenance Costs Space sal!lngs Total Annual Coet Total One-Time Costs Total First Year Costs PreAMP $8,877,226 $8,218,283 $1,910,066 $2,741,006 $4,482,549 $0 $26,229,130 $0 $26.229,130 Proposed 1stPIR $8,821,065 $9,035,675 $8,218,283 $8,388,874 $1,910,066 $1,537,761 $2,675,333 $2,474,807 $4,482,549 $4,245,329 $0 $0 $26,107,296 $25,682,446 $0 $0 $26,107,296 $25,682,446 The PIR identifies that the actual savings were greater than the approved AMP projected savings< $121,834. PIR Summary Narrative 5
7 Customer Service Considerations: No service changes were requested as a result of this AMP. The Owensboro KY CSMPC EXFC First Class service performance from TTMS for the AMP impacted ZIP codes are listed below: No significant impact to service has been experienced as a result of this AMP. Staffing Impacts: Current staffing levels are below those proposed in the AMP study for both the losing and gaining site. Five level six clerks were excessed from the Owensboro KY CSMPC. Additional impacts were due to attrition. PIR Summary Narrative 6
8 'Craft: ftr+ptr+ptf+casuals 2 Cra.ft "' F1 + F4 allosrng.; F1 onty at Gaining Transportation Considerations: Transportation between the Owensboro KY CSPMC and the Evansville IN P&DC continues to be provided by Highway Contract Routes (HCR). The transportation savings proposed in the AMP study were exceeded. HCR mileage increased by 120K in the PIR1. After The AMP SCR was complete, Owensboro closed their Hub operation and all mail went to Evansville. Another SCR was initiated that removed the direct Owensboro's from the plate. We then adjusted trips and frequencies to Evansville's transportation that resulted in an overall increase in mileage. HCR 476U1 mileage decreased 140K in the PIR1. We reviewed the contract and eliminated a round trip that resulted in a cost savings of $199, and an annual deduction of 140,214.6 miles. Again, the transportation saving proposed in the AMP study were exceeded. PCES/EAS Workhour Costs: The PIR savings in the PCES/EAS category are the result of having one less authorized supervisor position at the Owensboro KY CSMPCS and having vacant authorized positions at the Evansville IN P&DF. Equipment Relocation and Maintenance Impacts: No equipment was relocated as part of this project. There were no proposed reductions in maintenance staffing as a result of this project. All savings indicated by the PIR are the result of having vacant authorized positions at the Evansville IN P&DF. Conclusion: The Area Mail Processing project consolidating the Owensboro KY CSMPC's originating and destinating volumes into the Evansville IN P&DF was successful. The anticipated savings have been achieved. PIR Summary Narrative 7
9 Service Performance and Customer Satisfaction Measurement Last Saved: August 4, 2013 Losing Facility: Owensboro CSMPC District: Kentuckiana PIRType: 1st PIR Implementation Date: 10/01/12 Gaining Facility: Evansville, P&DF District: Kentuckiana (15) Notes: Satisfaction Measurement (CSM) became Customer Experience Measurement Data reflects most recently completed quarter available in CEM. I Satisfaction (Overall Experience)... Joiati!;factii< m with Receiving (Experience with receiving)....-isiati!rraction with Sending (Experience with sending)... JSiati! faction with most frequently visited PO (Experience with most frequently visited PO) ----~~-~~~~~ISatisf,lcticm with most recent contact with USPS (Experience with most recent contact witt....;;;..;..;;'----'----""..;.;..:;..;.;,._...:,..;:..;.;.;;..;..;.;.,.--'likely to recommend the USPS PIR Service Performance and Customer Satisfaction Measur$lment
10 [ combined Facilities Type of Distribution Consolidated: Orig & Oest,,. ~~~~i~..., I c~ Workhour Costs - Combined Facilities Last Saved: August 4, 2013 '-"'""" '..,"''"'"'" 14 L NIA /G$ U45.29/ G-N/A " 17 L-NIA /G$ L-N/A/G$ $45.34/G.N/A L$44.15/G-N/A (6) I (7) l l'''"'f'iiijjlllp!\'1\i:' (9) I (10) I onnual TPH or NATPH ~olume(,,_~ &,;~'''!:>.:!:::::m:~=-">,,'iii,,; 42 Annual Workhou~- PIR Type': -i,~i';st:.:::-:,~reip"';r;;:oo;;;l,::;mn= ;cc.,;;;n:;;;n.,.-::;l;;;;ze"d"to""c Efirnt;;;;oPIR Date Range of Data: Oct to Mar PIR Wor1<hour Costs - Combined F acilitles
11 PIR Workhour Costs ~ Combined F aci!ities
12 PIR Workhour Costs Combined Facilities
13 (27) NOTES: :,j,mjjjl0 13 PIR Workhour Costs ~ Combined Facilities
14 Losing Facility: Owens,b,orceo,c,s'"M"'P--'C' Workhour Costs- Losing Facility Last Saved: August4, 2013 PIR Type : _1_"!.fl!h==-;;;o;;;;uaiZediiOi'i'frStPIR Type of Distribution Consolidated: Orig & Oest Date Range of Data: oct to Mar PIR Workhour Costs Losing
15 P!R Workhour Costs Losing
16 PIR Workhour Costs - Losing
17 P!R Workhour Costs~ Losing
18 18 P!R Workhour Costs~ Losing
19 Gaining Facility: Evansville, P&DF Workhour Costs- Gaining Facility Last Saved: August4, 2013 PIR Type : ~~k=;;;;;s-;;;a;;;;uaiizedfui'f'iffitpif Type of Distribution Consolidated: Orig & Oest Date Range of Data: oct to Mar PIR Workhour Costs~ Gaining
20 P!R Workhour Costs- Gaining
21 PIR Workhour Costs Gaining
22 PIR Workhour Costs - Gaining
23
24 (27)NOTES: 24 P!R Workhour Costs Gaining
25 c--- Other Workhour Move Analysis I Evansville, P&DF Date Range of Data: 03/31/13 25 PIR Other Workhour Costs
26
27 27 PIR Other Workhour Costs
28 28 PIR Other Worl<hour Costs
29 29 PI R Other Workhour Costs
30 I Distribution to Other PIR Worksheet Tabs I 30 PIR Other Workhour Costs
31 31 PIR Other Workhour Costs
32 Staffing - Craft Last Saved: August 4, 2013 PIR Type: 1st PIR Data Extraction Date: 04/03/13 Craft Positions ~ Gaining Facility: Evansville, P&DF Craft Positions i-----~r----~-----(24)----~! 1st PIR vs Pre AMP! 1st PIR vs Proposed! Total Craft Position Loss:L 12 j 2; j (Above numbers are carried forward to the Executive Summary) PIR Staffing.3Craft
33 Staffing- PCES/EAS Last Saved: August 4, 2013 PIR Type: 1st PIR Losing Facility: Owensboro CSMPC Data Extraction Date: PCES/EAS Positions Finance#.::2;;:.05::..8:..:8:..:4 On-Rolls (2) 33 PIR Staffing - P ES/EAS
34 Gaining Facility: Evansville, P&DF Data Extraction Date: Finance #..;1~7=26::;5::.:3:. _ r""- - -~-~-~ ~.,..- -~ ,-.,-~- - -~-,-~-, 1 ( 38 1 l I Total PCES/EAS 1 ( 37 l I Position Lossj 0 j 0 j ~~-~-~-~-~-~-~-~-~~~-~-~-~-~-~-~-J-,_,_,_,_,_,_J. (Above numbers are carried forward to the Executive Summary) 34 PIR Staffing - PCES/EAS
35 Transportation - PVS Last Saved: August 4, 2013 PIR Type: 1st PIR Date Range of Data: Oct to-- Mar Losing Facility: Owensboro CSMPC Gaining Facility: Evansville, P&DF Finance Number:.::2.::0..:..58..:..8:..4.:. Finance Number: ~~~ (2) Proposed (3) I (4) I (5) Variance 1st Variance 1 1st PIR PIR vs Pre PIR vs (11) Total 1st PIR vs Pre AMP Transportation-PVS Savings: ($45,643) (12) Total 1st PIR vs Proposed Transportation-PVS Savings: ($45,643) (This number added to the Executive Summary (This number added to the Executive Summary) (13) Notes= PIR Transportation- PVS
36 Losing Facility: Owensboro CSMPC Type of Distribution Consolidated: Orig & Dest Data of HCR Data File: Transportation - HCR LastSaved:August4,2013 PIR Type: CT for Outbound Dock: 1st PIR PIR Transportation HCR - 28sing
37 Change Analysis 1st PIR vs Pre AMP I 1st PIR vs Proposed PIR Transportation HCR - CJ'sing
38 Gaining Facility: Evansville, P&DF Transportation - HCR Last Saved: August 4, Type of Distribution Consolidated: Orig & Dest CET for Inbound Dock: Date of HCR Data File: CET for Cancellations: PIR Type: Orig & Dest CETforOGP: CT for Outbound Dock: (3) Proposed Annual (6) (7) Proposed I 1st PIR Annual Annual Cost Cost (10) 1st PIR Annual Cost/Mile
39 Change Analysis Summary HCR Losing & Gaining (12) (13) I (14) 1st PIR vs Pre AMP I 1st PIR vs Proposed 1stPIR vs Proposed Gain in (13) Total 1st PIR vs Pre AMP Transportation-HeR Savings: (from losing and gaining facilities) (14) Total 1st PIR vs Proposed Transportation-HeR Savings: (from losing and gaining facilities) (15) Total 1st PIR vs Pre AMP Transportation (PVS & HeR): ($266,199) (This number carried forward to the Executive Summary) (16) Total 1st PIR vs Proposed Transportation (PVS & HeR): (This number carried forward to the Executive Summary) 39 PIR Transportation HCR- Gaining
40 Data Extraction Date: MPE Inventory Last Saved: August 4, 2013 PIR Type: 1 PIR Date Range of Data: Oct to-- Mar Losing Facility: Owensboro CSMPC Gaining Facility: Evansville, P&DF Relocation Costs Variance in Costs (10) Notes: Space Evaluation and Other Costs PIR MPE ln\14!ultory
41 Losing Facility: Owensboro CSMPC Maintenance Last Saved: August 4, 2013 PIR Type*:_1_st_P_I_R Date Range of Data: Oct ~ Mar Gaining Facility: Evansville, P&DF (2} (3) (4) (5) Variance 1st Variance 1st Proposed 1st PIR PIR to Pre PIRto Costs Costs AMP Proposed Workhour Activity I~ (8) (9) Variance 1st Proposed 1st PIR PIR to Pre Costs Costs AMP (10) Variance 1st PIR to Pre Proposed $ $ $ $ $ $ 8,060 $ 0 {8,060) $ (8,060) 197,871 $ 159,009 (38,862) $ (38,862) 76,139 $ 126,171 50,031 $ 50, $ 0 0 $ 0 0 $ 0 0 $ 0 282,070 $ 285,180 ;{$) $ 3,109 LDC36 I LDC 37 LDC38 LDC 39 1,616,556 $ 1,465,112 {151,445) $ ,567 $ 737, ,009 $ --- 1,098,115 $ 941,582 ( ) $ ,209 $ 149,106 {62,104) $ -- 16,517 $ 9,785 (6,732) $ --- 3,545,965 $ 3,303,160 (242,806) $ (' ) 134,009 (156,533) {62,104) {6.732) {242,806) Parts and Supplies Parts and Supplies 94, ,004 (11) 1st PIR vs Pre AMP- Maintenance Savings: (12) 1stPIR vs Proposed- Maintenance Savings: ($237,219) (These numbers carried forward to the Executive Summary) (These numbers carried forward to the Executive Summary) (13)Notes: Data in PIR columns is annualized for First P!R 41 PIR Maintenance
42 Distribution Changes Last Saved: August4,2013 Losing Facility: Owensboro CSMPC PIR Type: 1st PIR Type of Distribution Consolidated: Orig & Dest Date Range of Data: Oct to -- Mar (1) Place a "X" next to the DMM labeling list(s) revised as result of the approved AMP. DMM L001 DMM L011 X DMM L002 X DMM L201 Identify the date of the Postal Bulletin that contained DMM labeling list revisions. < 2 l PB 22339, Jun DMM L003 DMM L004 DMM L601 DMM L602 (3) Was the Service Standard Directory updated for the approved AMP? X DMM L005 DMM L603 DMM L006 DMM L007 DMM L008 DMM L009 DMM L010 DMM L604 DMM L605 DMM L606 DMM L607 DMM L801 (4) Drop Shipments for Destination Entry Discounts FAST Appointment Summary Report NASS Total No-Show Late Arrival Open Closed Facility Name Month Losing I Gaining Facility Code Schd Count % Count % Count % Count % Feb '13 Losing Facility 423 Owensboro, KY % % % % Mar '13 Losing Facility 423 Owensboro, KY % % % % Feb '13 Gaining Facility 476 Evansville, IN % % % % Mar '13 Gaining Facility 476 Evansville, IN % % % % Unschd Count (5JNotes: -=-======================= 42 PIR Distribution Changes
43 Losing Facility: Owensboro CSMPC 5-Digit ZIP Code:...;4c::2.::,30"-1~----- Data Extraction Date: 04/03/13 Customer Service Issues Last Saved: August 4, Collection Points Number picked up before 1 p.m. Number picked up between 1-5 p.m. Number picked up after 5 p.m. Total Number of Collection Points 2. How many collection boxes are currently designated for "local delivery"? I I 3. How many "local delivery" boxes were removed as a result of AMP? I I 4. Delivery Performance Report % Carriers returning before 5 p.m. 5. Retail Unit Inside Losing Facility (Window Service Times) 6. Business (Bulk) Mail Acceptance Hours 7. Can customers obtain a local postmark in accordance with applicable policies in the Postal Operations Manual? Yes 8. Notes: Gaining Facility: Evansville, P&DF 9. What postmark is printed on collection mail? I -m~ 43 PIR Customer Service Issues
44 Losing Facility: Owensboro CSMPC Space Evaluation and Other Costs Last Saved: August 4, 2013.' Date: 1. Affected Facility Facility Name: Owensboro CSMPC Street Address: 54 Bon Harbor His City, State Zl 2. One-Time Costs 3. Savings Information Enter any one-time costs:...::;$0;:. $0 $0 (These numbers shown below under One-Time Costs section.) Space Savings ($): $:;;0:..,. $0 $0 (These numbers carried forward to the Executive Summary) 4. Did you utilize the acquired space as planned? Explain. 5. Notes: Employee Relocation Costs Mail Processing Equipment Relocation Costs (from MPE Inventory) Facility Costs (from above) Total One-Time Costs $0 $0 $0 $0 $0 $0 $0 P!R costs carried forward to Executive Summary) Losing Facility: Owensboro CSMPC Pre-AMP: FY 2012 Range of Report Gaining Facility: Evansville, P&DF PIR: FY 2013 YTD 44 PIR Space Evaluation and Other Costs
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