USPS Study proposes moving Frederick, MD Mail Operations to Baltimore

FREDERICK, MD — The U.S. Postal Service will hold a public meeting to discuss its proposal to move some mail processing operations from Frederick Processing and Distribution Facility into Baltimore Processing and Distribution Center.

The meeting will take place Tuesday, May 10 at 7:00 p.m. at Frederick High School in the auditorium, 650 Carroll parkway, Frederick, MD 21701.

With the deep decline in mail volume due to current economic conditions and continuing electronic diversion, the Postal Service has an excess of employees and equipment in some mail processing operations. A study was begun on February 1, 2011 at Frederick Processing Distribution Facility to determine the feasibility of consolidating redundant operations to see if any efficiencies and cost savings would be achieved.

Initial study results support consolidating some mail processing operations that are currently being performed at the Frederick Processing and Distribution Facility by taking advantage of available processing capacity at the Baltimore Processing and Distribution Center in order to increase efficiency and improve productivity.

While no final decision has been reached, Postal Service managers will give an overview of the reasons for the proposal and its possible outcomes, and will listen to community input and concerns. A summary of the proposal and presentation materials will be made available on usps.com one week before the meeting date.

Anyone who wishes to submit comments in writing can send them to:

CONSUMER AFFAIRS MANAGER
Baltimore District
900 E Fayette Street
Baltimore, MD 21233-9998
Public comments will be accepted through May 20, 2011.

Iowa Lawmakers: USPS Should Address Sioux City’s Concerns Before Moving Ahead With Mail Processing Study

The following is a press release from Congressman Steve King (R-IA), Senator Chuck Grassley (R-IA) and Senator Tom Harkin (D-IA)

Washington D.C.- Congressman Steve King (R-IA), Senator Chuck Grassley (R-IA) and Senator Tom Harkin (D-IA) today sent to Postmaster General Patrick Donahoe a letter expressing their concerns that any new effort to consolidate Sioux City’s mail processing operations into the Sioux Falls Processing and Distribution Center will bring about degradations in mail service that will adversely affect northwest Iowa. In light of these concerns, King, Grassley and Harkin are asking that the Postal Service’s relevant district, area and headquarters personnel meet with Sioux City’s community and business leaders and other stakeholders to address this and other issues before any further action is taken on the Area Mail Processing study.

Statement of Congressman King:
“We’ve been down this road with the Postal Service before,” said King. “Ultimately there were a number of questions about the rationale for the proposed consolidation that the USPS couldn’t answer. I have similar concerns now, but I look forward to again working with Sioux City’s business and community leaders and our congressional delegation to ensure that the interests of Siouxland’s residents and businesses are fully accounted for in this process.”

Statement of Senator Grassley:“The Postal Service has an obligation to conduct any review in a fair manner and listen and consider the views of the Sioux City community. We’re committed to making sure the door is open for the community to weigh in and to holding the post office accountable for the way it makes any decision impacting the processing center in Sioux City,” Grassley said.

Statement of Senator Harkin:“I am very concerned by this proposal, and strongly urge USPS to exercise caution in proceeding with any consolidation of operations in western Iowa. Five years ago, USPS proposed a similar shift, which would have had significant negative consequences for the community. Reliable mail service is important for the Siouxland’s businesses and residents, and the potential impact on the community should be fully taken into account before any further steps are taken.”

The text of the letter follows:

March 21, 2011

Mr. Patrick R. Donahoe

Postmaster General &

Chief Executive Officer

United States Postal Service

475 L’Enfant Plaza, SW Room 10022

Washington, DC 20260-0010

Dear Postmaster General Donahoe,

We have recently learned that the Postal Service is conducting an Area Mail Processing (AMP) study to examine possible consolidation of some operations from the Sioux City, IA, Processing and Distribution Facility into the Sioux Falls, SD, Processing and Distribution Center.

We understand that the Postal Service is facing significant challenges in light of the current economic downturn and regularly declining mail volumes. It is necessary and proper for the Postal Service to continually assess its nationwide system of delivery and processing infrastructure to ensure it is well positioned to meet the demands of its customers. However, we have once before worked with the Postal Service and community and business leaders through a similar AMP examining the possible consolidation of some processing and distribution operations from Sioux City, IA, to Sioux Falls, SD. Having gone through this AMP process before only to learn that USPS would not, in fact, be consolidating operations in Sioux Falls, we are writing to ensure that the Postal Service has, in fact, taken into account all relevant criteria in choosing to move ahead with this new AMP study.

In 2007 when the Postal Service last studied the possible move of processing operations from Sioux City to Sioux Falls, we, along with Sioux City’s community and business leaders, never received sufficient assurances from the Postal Service that customers in the Siouxland area would not experience downgrades in mail service with a move of processing operations from Sioux City to Sioux Falls. Additionally, the additional costs resulting from greater distances for mail to travel, the adverse impact that late-arriving mail from Sioux City might have on the processing of outgoing mail, and the effect that the loss of Sioux City’s docks might have on transportation called into question the case for such a move, which the USPS ultimately declined to pursue.

Because these questions largely revolve around issues that will not change (distance between Sioux City and Sioux Falls and differences in the physical plant resources of each facility), we are concerned that any new effort to consolidate will ultimately bring about degradations in mail service that will adversely affect our constituents in northwest Iowa. Consequently, before any additional action is taken regarding the Sioux City AMP study, we ask that the Postal Service’s relevant district, area, and headquarters personnel meet with business and community leaders and stakeholders from Sioux City to ensure that these concerns are fully understood and taken into account. These individuals will be visiting Washington, DC, and available to meet during the week of April 11th.

Thank you for your attention to this very important matter.

Sincerely,

Congressman Steve King

Senator Chuck Grassley

Senator Tom Harkin

USPS Considering Consolidations At Four Kansas Mail Centers

The United States Postal Service plans to conduct a study at the Colby Customer Service Mail Processing Center (CSMPC) and Hays Customer Service Mail Processing Center (CSMPC) for possible consolidation of some operations into the Salina, KS CSMPC. The Postal Service is also conducting AMP feasibility studies at Hutchinson, KS Customer Service Mail Processing Center (CSMPC) and Independence, KS Customer Service Mail Center (CSMPC) with those performed at the Wichita, KS Processing and Distribution Center (P&DC).

The following is taken from a USPS press release:

The study, known as an Area Mail Processing (AMP) study, involves a review of the mail processing and transportation operations to determine capacity needs at a facility in order to increase efficiency and improve productivity.

The need for the study comes as the Postal Service faces one of the most difficult challenges in its history. The current economic downturn and continued Internet diversion has led to a drastic 20 percent decline in mail volume since 2007, resulting in historically large deficits. Even when the economy fully recovers, the Postal Service does not expect mail volume to return to previous peak levels, and is projecting annual deficits for the foreseeable future.

“As a result of the volume loss, we have more facilities, equipment and people than we need to process a declining volume of mail,” said USPS Acting Central Plains District Manager Rick Pivovar. “We have to reduce the size of our network because we are no longer receiving enough revenue to sustain its cost.”

“One way to do that is to consolidate operations where feasible,” Pivovar added. “That is why we’re doing this study. Consolidating processing operations and placing our people where we need them makes logical business sense given the economic realities. We’re only doing what any company would do when it’s hit with a 20 percent decline in its business.”

If the feasibility study supports the business case for changing mail processing operations, the Postal Service will hold a public meeting to allow members of the community to ask questions and provide feedback. This input will be considered in the final proposal.

“I want to assure everyone that we will not make any changes to our operations that would cause delays in delivery to your home or business,” said Pivovar.

The Postal Service is soliciting the public’s input as part of the study process. Comments may be submitted to:
Consumer Affairs Manager
PO Box 199504
Omaha NE 68119-9504

All comments will be fully considered in any decision.

source: USPS

West Virginia Congressional Delegation Questions PMG on Proposed Consolidations

Members Call for Full Report to Explain Multiple Studies in West Virginia

WASHINGTON, D.C. – The five Members of the West Virginia Congressional Delegation today joined together to express to the Postmaster General their concern about the proposed consolidation of mail processing operations in West Virginia.

The Postal Service has proposed five Area Mail Processing (AMP) studies to consolidate mail processing operations in West Virginia – an unusually high number for one state. AMP studies are ongoing in Bluefield and Martinsburg, and have already been completed in Wheeling, Beckley, and Huntington.

The delegation expressed their concerns in a letter that was initiated by Representative Nick Rahall (D-W.Va.) and signed by Senators Jay Rockefeller and Joe Manchin (both D-W.Va.) and Representatives Shelley Moore Capito and David McKinley (both R-W.Va.).

A copy of the delegation’s letter is attached; full text of the letter is below:

March 7, 2011

The Honorable Patrick R. Donahoe
Postmaster General and Chief Executive Officer
U.S. Postal Service
475 L’Enfant Plaza, SW, Room 10804
Washington, DC 20260-3500

Dear Postmaster General Donahoe:

We are very concerned about the Area Mail Processing (AMP) studies that have been initiated in West Virginia.

The Postal Service has announced four AMP studies in West Virginia since last summer – in Beckley, Huntington, Martinsburg, and Bluefield – and already implemented a fifth study in Wheeling. The Postal Service is not pursuing any studies – not one – in twenty-two other states, and yet there have been five proposed consolidations in West Virginia alone. Of those states where studies are being pursued, only seven have had as many or more AMP studies than West Virginia, all of them states with significantly larger populations.

In addition, of the five studies in West Virginia, three have proposed moving mail processing operations out of the state – from Wheeling to Pittsburgh, Pennsylvania; from Martinsburg to Suburban, Maryland; and from Bluefield to Johnson City, Tennessee.

The Postal Service is required by law to provide effective and regular mail delivery services to rural areas – even when it costs the Postal Service money and it has to run a deficit to do so. The people of West Virginia deserve the same level of service and the same fairness and equity afforded to the people of other states. We are rightly concerned about our mail services being disrupted and the impact on postal workers in our communities.

We would appreciate your providing us with a full report on why West Virginia is being made to bear a disproportionate number of AMP studies, and why so many AMP studies are being announced within such a short period of time.

We look forward to your timely response.

Sincerely,

Congressman Sends Letter To PMG To Keep Gary, IN Mail Facility Open

(Feb. 28, 2011)  In support of the Gary Processing and Distribution Center in Gary, Indiana, Congressman Pete Visclosky (D-IN) today sent the following letter to the Postmaster General of the United States Postal Service.

Update:California Congressman Wants USPS To Make AMP Study For Stockton Mail Center Public

USPS To Hold Public Meeting On Proposal To Move Some Reading P & DF Mail Operations

Reading Area Mail Processing (AMP) Study Public Meeting

WHAT: Postal Service managers will give an overview and gather community input regarding a proposal to move some mail processing operations from the Reading Processing & Distribution Facility (P&DF) into the Harrisburg & Lehigh Valley Processing & Distribution Centers (P&DC).

WHO: Kevin McAdams, District Manager, Central PA
Linda Malone, Senior Plant Manager, Harrisburg PA
Peter Deangeles, Plant Manager, Reading
Brian Stewart, Plant Manager, Lehigh Valley
 
WHEN: Tuesday, January 25, 2011
7 p.m. to 9 p.m.
 
WHERE: Northeast Middle School
1216 North 13th Street
Reading PA
 
DETAILS: The AMP proposal supports consolidating some mail processing operations that are currently being performed at the Reading P&DF by taking advantage of available processing capacity at the Harrisburg & Lehigh Valley P&DCs in order to increase efficiency and improve productivity. While no decisions have been reached, Postal Service managers will give an overview of the reasons for the proposal and its possible outcomes, and will listen to community input and concerns. A summary of the proposal and presentation materials will be made available on usps.com

5 California USPS P&DCs to hold public hearings On Area Mail Processing Study

An AMP study was initiated to evaluate the transfer of mail processing from the North Bay, CA Processing and Distribution Center (P&DC) to the Oakland, CA P&DC. The initial results of the study support the business case for consolidation.

A public meeting will be held to share the initial results of the study and allow members of the community to ask questions and provide feedback. This study, currently in review at United States Postal Service Headquarters and its Area Office is subject to change. The public’s input will be considered prior to a final decision.

The meeting will be held on ‘Thursday, January 20, 2011, at the’Petaluma Community Center, 320 N. McDowell Boulevard, Petaluma, CA 94954 at 6:00 P.M.

Petaluma, CA

An AMP study was initiated to evaluate the transfer of mail processing from the Stockton, CA Processing and Distribution Center (P&DC) to the Sacramento, CA and the Fresno, CA P&DCs. The initial results of the study support the business case for consolidation however during the development of the study it was proposed that originating mail processing operations be moved to only the Sacramento facility.

 Stockton, CA

An AMP study was initiated to evaluate the transfer of mail processing operations from the Salinas, CA Processing and Distribution Facility (P&DF) to the San Jose, CA Processing and Distribution Center (P&DC). The initial results of this study support the business case for consolidation.

 Salinas, CA

 
An AMP study was initiated to evaluate the transfer of mail processing operations from the Oxnard, CA Processing and Distribution Facility (P&DF) to the Santa Barbara, CA Processing and Distribution Center (P&DC). The initial results of this study support the business case for consolidation.

Oxnard, CA

An AMP study was initiated to evaluate the transfer of mail processing from the Industry, CA Processing and Distribution Center (P&DC) to the Santa Ana, CA and the Los Angeles, CA P&DCs. The initial results of the study support the business case for consolidation however during the development of the study it was proposed that originating mail processing operations be moved to only the Santa Ana facility.

 Industry, CA

Postal Service to conduct new study of mail processing operations in Zanesville, Ohio

COLUMBUS — The U.S. Postal Service plans to conduct a new study at the Zanesville Processing and distribution Facility for possible consolidation of some operations into the Columbus Processing and Distribution Center. The study, known as an Area Mail Processing (AMP) study, involves a review of the mail processing and transportation operations to determine capacity needs at a facility in order to increase efficiency and improve productivity.

The need for the study comes as the Postal Service faces one of the most difficult challenges in its history. The U.S. Postal Service continues to face difficult challenges. The current economic downturn and continued Internet diversion has led to a drastic decline in mail volume, with the loss of almost 26 billion pieces in 2009. In 2006 the Postal Service handled 213 billion pieces; in 2009 that dropped to 177 billion pieces. Current projections are that the Postal Service will handle 169 billion pieces in 2010. Even when the economy fully recovers, the Postal Service does not expect mail volume to return to previous peak levels, and is projecting annual deficits for the foreseeable future.

“As a result of the volume loss, we have more facilities, equipment and people than we need to process a declining volume of mail,” said Dr. Joshua Colin, District Manager for the Postal Services Columbus District. “We have to reduce the size of our network because we are no longer receiving enough revenue to sustain its cost and the cost of our ever growing delivery network.”

“One way to do that is to consolidate operations where feasible,” Dr. Colin added. “That is why we’re doing this study. Consolidating processing operations and placing our people where we need them makes logical business sense given the economic realities. We’re only doing what any company would do when it’s hit with a 13 percent decline in its business in one year.”

If the feasibility study supports the business case for changing mail processing operations, the Postal Service will hold a public meeting to allow members of the community to ask questions and provide feedback. This input will be considered in the final proposal.

The Postal Service is soliciting the public’s input as part of the study process. Comments may be submitted to:
Consumer Affairs Manager
US Postal Service Columbus District
850 Twin Rivers Drive
Columbus, OH 43216-9631

All comments will be fully considered in any decision.

GAO: Mail Processing Network Initiatives Progressing, and Guidance for Consolidating Area Mail Processing Operations Being Followed

Deteriorating financial conditions and declining mail volume have reinforced the need for the U.S. Postal Service (USPS) to increase operational efficiency and reduce expenses in its mail processing network. This network consists of interdependent functions in nearly 600 facilities. USPS developed several initiatives to reduce costs and increase efficiency; however, moving forward on some initiatives has been challenging because of the complexities involved in consolidating operations. In response to a conference report directive, GAO assessed (1) the overall status and results of USPS’s efforts to realign its mail processing network and (2) the extent to which USPS has consistently followed its guidance and applied these criteria in reviewing Area Mail Processing (AMP) proposals for consolidation since the beginning of fiscal year 2009. To conduct this assessment, GAO reviewed USPS’s Network Plan, area mail processing consolidation guidance and proposals as well as other documents; compared USPS’s actions related to consolidation of area mail processing facilities with its guidance, and interviewed officials from USPS, the USPS Office of Inspector General, and employee organizations. GAO provided USPS with a draft of this report for comment. In response, USPS provided technical comments that were incorporated where appropriate.

USPS has realigned parts of its mail processing network since the beginning of fiscal year 2009 and continues to seek additional opportunities to achieve its goal of creating an efficient and flexible network and realize cost savings. Specifically, USPS:

(1) eliminated all functions of the Airport Mail Centers, closed 9 of these facilities, and now uses the remaining 12 for other purposes, resulting in a realized cost savings of about $12.2 million in fiscal year 2009;

(2) reorganized the functions of the 21 Bulk Mail Centers into newly developed Network Distribution Centers, resulting in a realized cost savings of about $17.7 million in fiscal year 2009; and

(3) implemented 23 proposals to consolidate AMP operations and facilities and approved another 6 AMP consolidation proposals. USPS estimated an annual cost savings of about $98.5 million for the 29 approved and implemented AMP proposals.

Additionally, USPS officials stated that they plan to integrate the Surface Transfer Center functions into the Network Distribution Center network to further eliminate redundancy in transporting mail. USPS has developed specific program targets for the ongoing reorganization efforts of the Network Distribution Centers and estimated a cost savings of about $233.8 million for fiscal years 2010 and 2011 from reduction in work hours and transportation costs.

On the basis of GAO’s analysis of 32 AMP proposals that were implemented, approved, or not approved since the beginning of fiscal year 2009, USPS has followed its realignment guidance by completing each step of the process and consistently applying its criteria in its reviews. GAO’s analysis found that it took about 6 months on average–a month more than USPS’s target of 5 months–to complete the review process from initiating an AMP proposal to making a decision. USPS officials noted the importance of the AMP decisions and the need to sometimes take longer than what the guidance suggests to ensure the correct decision. GAO also found that USPS consistently notified stakeholders when key steps of the AMP process were completed, such as when an AMP proposal was initiated, or public meetings were held. For each of the AMP proposals that GAO reviewed, USPS also consistently evaluated its four criteria related to AMP consolidations: (1) impacts on the service standards for all classes of mail, (2) issues important to local customers, (3) impacts to USPS staffing, and (4) savings and costs associated with moving mail processing operations.

read full report

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