PostalAutomationRedirectionSystemPARS

PARS is a systemto identify “UndeliverableasAddressed”(UAA) lettermail atthefirst machinehandlingandredirectit automaticallyto thecurrent,correctdestination.

PARS will automatethehandlingof:• ChangeofAddress(COA) forms - 3575• CarrierChangesofAddressCard- 3982• NotificationofMailer- 3547• AddressCorrectServices• ForwardedMail — UAA dueto amove• CarrierReturnMail — UAA dueto a reasonotherthana move

PARSwill notchangethehandlingofUAA non-machineableletters,flats orparcelsandrolls.

On April 9, 2002theBoardof Governorsapprovedfundingfor thePARSprogramwhich hadbeentestedat theDulles, VA site. TheAPWU hasbeennotifiedof theUSPSintentionto deployPARS nationallywith Phase1tentativelyscheduledto beginin July,2003 andcompletedby February,2004.

PARSis designedto automaticallyinterceptandredirect(initially around50%) automatedUAA lettermail at its origin andprocessall UAA lettermail on thenewlabelingmachinesatP&DCs. ThisnewtechnologywillalsouseOCRsto processthe 43 million COAformstheUSPSgetseachyear. TheCOA form will beredesignedto allow for scanning.

Thisprogramwill eliminatemechanizedterminalsat the initial 40 CFSsitesincludedin Phase1. Sincethe PARShasimagelift capabilities,it willrequiresomeadditionalterminalsfor dataconversionoperatorsat the20RemoteEncodingCenters.

TheUSPSanticipatesareductionof2.8million work hours,of whichapproximately64%will comefrom affectedCFSunits,30 % from clerkdeliveryfunctions,4 % from city andrural carrierfunctionsand2 % fromP&DC operations.Thesesavingsare from Phase1 only. Theyexpecttosaveup to 5 million workhoursuponcompletionof theprogram,possiblyby 2006.

Phase1 will seethe eliminationofdatainputof COAs in all 219 CFSunits.Initially 86 CFSunitswill beoutfittedwith thenecessaryequipmentto scanCOAs. Theremainingunitswill sendtheirCOAs to the86 unitswithscanningandOCRcapabilityto bescannedintothe nationaldatabase,withtheunresolvedimagesbeingsentto RECsto bemaintainedandverifiedbyDCOs.

Phase1 will alsoseelettersredirectedfrom 40 CFSunits. 53 MailProcessingFacilitieswill initially be interceptingUAA mail.

Phase2 will seetheremaining179 CFSunitshavetheir lettermailredirectedandall remainingMIPFs will eventuallyinterceptUAA mail.

Attachedis official notificationfrom the USPSaswell asa deploymentschedule.

The first articletestis setfor April-June,2003 in TampaandMid-FloridaDistrict.

R~ ~

UNITED ST/ITES

POSTIILSER VICE

August 28, 2002

Certified Mail Number7099 3400 0008 5899 2236

Mr. William A. BurrusPresidentAmerican Postal Workers Union, AFL-CIO1300 L. Street, NWWashington, DC 20005-4128

Dear Bill:

This provides an update to prior correspondence regarding the Postal Automation

Redirection System (PARS) program.

Dulles, Virginia — Charleston, West Virginia Pilot sites

As previously communicated, a decision was reached to extend the PARS pilot to theRemote Encoding Center (REC) in Charleston, West Virginia. Keying equipment isbeing moved from Dulles, Virginia to the Charleston REC, and the current plan is toselect ten REC volunteers who are normally scheduled to work from 3:30 p.m. tomidnight for PARS training. REC keyers in Charleston will receive a 40-hour trainingsession scheduled from August 26 through 30.

A selected number of Mail Processing Clerks in Dulles will receive a 2-hour trainingsession on September 3 (either 1:00 - 3:00 p.m. or 3:30 — 5:30 p.m.) on how to operatethe CIOSS (Combined Input Output Sub-System) machine. Employees from threeNorthern Virginia delivery units (Sterling, Manassas and Herndon) will receive training onAugust 26, from 2:00 to 4:00 p.m. on how to prepare mail to be sent to the plant forprocessing on the CIOSS machine.

The goal is to run 100,000 undeliverable-as-addressed, carrier-endorsed, nixie lettermail pieces through the GlOSS each day (50,000 images captured and forwarded to theRECs and same 50,000 mail pieces run again to apply re-direction labels). Two DullesMail Processors will be needed to run PARS mail for up to 4-5 hours per day, six daysper week through the CIOSS machine. Mail Processors and REC keyers may processother mail types later in the tour if PARS volumes disappear.

By September 9, it is anticipated that carrier-endorsed nixie letter mail volume fromselected zones will reach approximately 7,000 images per day. During the week ofSeptember 16, CFS letter mail volume from all zones will be added, with a goal toincrease a mix of both nixie and CFS mail types by 5,000 each week until November 11.In the event that unforeseen circumstances significantly alter PARS operating schedulesor plans, you will be notified as that information becomes available.

475 LENFANcr PL.~ZASWWASHINGTON DC 20260-4100

~muSPSCOM

Maintenance of PARS equipment being tested will continue to be supported by thecontractor during the pilot phase of the project or until the Postal Service accepts theequipment.

First Article Test (FAT)

The Mid-Florida Processing and Distribution Center has been identified as the site forthe PARS First Article Test (FAT). During the FAT, rather than using prototypeequipment, first production equipment will be used and tested to ensure it meets thePostal Service’s functional and performance requirements, as well as quality standards.The Tampa REC will be the REC site in support of the FAT test, as it is alreadydesignated to key letter mail images for mid-Florida. The expected date for the test isApril 30, 2003.

Employee Impacts

First phase impact projections (2.8 million work hour savings - 64% in CFS units, 30% inclerk delivery functions, 4% in city and rural carrier functions and the remaining 2% inP&DC operations) have not changed. This general impact information is also reflectedin letters (4/02/01, 4/17/01, 8/24/01 and 5/02/02), and handouts provided at briefingsessions (12/10/01, 4/12/02 and 6/17/02). Site specific impact information is beingdeveloped in each Area, and when available, will be shared with area union designees.Where appropriate, positions will be withheld pending reversion, and transitionalemployees utilized to backfill as needed. There may also be reductions in part-timeflexible workhours, and involuntary reassignments of excess employees.

It is important to re-emphasize that there are still no immediate plans to include flats,parcels or other non-machineable mail in the PARS pilot project. Therefore, MerrifieldCFS employees domiciled at Dulles will continue to process those mail volumes in thenormal manner.

If you have any questions regarding this matter, please contact Dee Scott of my staff at(202) 268-4398.

Sincerely,

ug A. TulinoManagerLabor Relations Policies and Programs

~1 -~

a. Mc(~arrny

Notification # GCCC20024LABOR RELATiONS -

previous’y assigned

p~~ UNITED SThTESPOSTI~LSERVICE

Certified Mail7099 3400 0008

May 2, 2002

Mr. William A. BurrusPresidentAmerican Postal Workers Union1300 L Street, NWWashington, DC 20005-4128

Dear Bill:

During a meeting held at the request of the American Postal Workers Union on Friday, April 12,your designee, James McCarthy, was provided a status update regarding the Postal AutomationRedirection System (PARS) program. Information was provided about the status of the PARSpilot test being conducted at the Dulles, Virginia site, and the union was notified as well of thePostal Service’s intent to transition towards national deployment of PARS.

On Tuesday, April 9, the Postal Service received funding approval from the Board of Governorsfor PARS. Immediate plans are underway to procure a contract with the developer of thetechnology so that equipment enhancements may be phased in at specific locations in the nearfuture.

Phase l of PARS will be deployed at 40 Computerized Forwarding System (CFS) sites and 53Processing and Distribution Centers (P&DCs). The objective is to automatically intercept andredirect nearly half of the total automated Undeliverable as Addressed (UAA) letter mailgenerated at origin and process all the remaining mail on the new labeling machines at theP&DCs. The PARS system will eliminate the need for mechanized terminals at the 40 CFS sitesbut will require some additional terminals for data conversion operators at the 20 RemoteEncoding Centers.

It is projected that this first phase will result in approximately 2.8 million work hour savings (64%in CFS units, 30% in clerk delivery functions, 4% in city and rural carrier functions and theremaining 2% in P&DC operations). The majority of the savings projection is expected throughtechnological replacement of mechanized terminal CFS keying with automated equipment.Savings will also result from a reduction in multiple UAA mail sorting, handling and transportingby clerks, carriers or other employees who interface with UA.A mail at the wrong mailingdestinations.

Through PARs technology, the Postal Service also anticipates improved customer service indexscores as the time required to redirect UAA mail improves. Mail will be intercepted and properlylabeled with change-of-address information while still in the automation mail stream, which willresult in immediate improved service for customers.

475 LEN~NTP~zASWWASHiNGTON DC 20260-4100

After PARS is deployed, non-machinable letter mail that cannot be read through PARSautomated equipment, as well as flats and parcels, will continue to be processed through CFSunits. There will be 86 district CFS sites designated to scan Change-of-Address (COA) cards.Data maintenance and verification as well as all other tasks associated with the handling of COAforms will be eliminated at the remaining CFS sites. While Phase I is limited to UAA letter mail,as technology improves, it is anticipated that later PARS phases will include an even largepercentage of UAA letter mail and may eventually handle UAA flats.

The pilot test in Dulles, Virginia will remain ongoing for the purpose of retaining a site where testsof the equipment may continue as more features and enhancements are added over time. As thePARS features and enhancements come to include a Remote Barcode Sorter (RBCS)connection, the Charleston, West Virginia Remote Encoding Center (REC) will begin processingUAA letter images captured at Dulles, Virginia. Equipment designated for processing readableUAA letter mail at Dulles will continue to be used for that purpose.

The sites to be included in Phase I are listed on the enclosed deployment site report. Siteselections were made almost exclusively from among the 140 CFS units throughout the countrythat are co-located with P&DCs. The deployment dates, however, are tentative (between July2003 and February 2004) and could change based on the procurement of the contract. A legendof the acronyms used in the report, as requested by Mr. McCarthy, is enclosed. A report of aDCFS sites, their location and career staffing matrices will be developed and provided in the nearfuture.

Meanwhile, the Postal Service looks forward to engaging the union in discussions about trainingneeded at the REC sites where PARS will be deployed and plans for placement at sites wheremail volumes begin to decline to a point where reassignments under Article 12 may becomenecessary.

If you have any questions regarding this matter, please contact Dee Scott of my staff at(202) 268-4398.

Sincerely,

Peter A. roManagContra t Adm~istration

Enclosures

i ~ -\ ~ -:~ -\ Postal Automated Redirection System (PARS) Incentive Program

i ~ a Id ..~ .i 1J -~) Volume I Executive Summary

List of AcronymsandGlossaryof Terms

Term Definition Description

ACS AddressChangeService

A United StatesPostalService(USPS)serviceto provideaddresscorrectioninformationtosubscribersprimarily by electronicmeans

AFCS/ISS AdvancedFacerCancelerSystem/InputSubsystem

A mail facingandcancelingmachinethatincorporatesRemoteBarCodeSorter(RBCS)Input Subsystemfunctionsfor imagecapture

AFR AdvancedForwardingReader

A deviceproposedby SiemensElectroComL.P. to providerecognitionfunctionsfor useinredirectionof mail

CARS ChangeofAddressRecordServer

A databaseserverthatmanageschangeofaddress(COA) recordsreceivedfrom theNationalCustomerSupportCenter(NCSC)andprovideslookup servicesto variousmailprocessingequipment

CFS

.

ComputerizedForwardingSystem

~•

A centralized,computerizedaddresslabel-generatingsystemusedby theUSPSto provide~rnailredirectionandaddresscorrectionservicesfor customerswho havemoved

CIOSS CombinedInput-OutputSubsystem

A mail processingmachine,specificallydesignedto beusedin thePARSproject,that iscapableof bothimageinput andresultoutputfunctions,aswell asapplyingredirectionlabels

COA~

ChangeofAddress Term appliedto variousaspectsof mailredirection. Mostcommonlyappliedto thecustomer-suppliedwritten requestto forwardmail (COA order)whenthecustomermoves

CSBCS CarrierSequenceBarCodeSorter

USPSbarcodesorting machineusedfor sortingmailpiecesin orderto getthelettercarriersequence

DBCS/OCR

DeliveryBar CodeSorter/OpticalCharacterReader

Postalreadermachinethat readsbarcodesoptically arid sortsenvelopesto assignedbinsusingsortationsoftware

Useordsclosure of data contained on this sheet is subject to the restriction on the title page o~this proposal.

Siemens ElectroCom LP. January 14, 2000516-12335

t.

Postal Automated Redirection System (PARS) Incentive ProgramVolume I - Executive Summary

List of Acronyms andGlossaryofTerms (Continued)

Term Definition Description

DIOSS Delivery Bar CodeSorter with OpticalCharacter Reader,InputSubsystem,and OutputSubsystem

A modifiedDBCSIOCR systemthat addsinputand output subsystemcapabilities to improveinternational mail processingcapabilities

.

DVD Digital VideoDisk High-capacity digital storagefor dataorprograms on optical media

FCS ForwardingControlSystem

The third-generation technologyusedby theUSPSto provide mail redirection in theComputerized ForwardingSystem

IB1P InformationBasedIndiciaProgram

Two-dimensionalcodeusedon somemail bythe USPS

ID Identification Evidenceof identity

IPSS:

ImageProcessingSubsystem

The “heart” ofRBCSthatprovidesimagemanagement,videocoding,andresultstoragefunctions

ISS Input Subsystem•

A mail transporttype. Applied to machineswith ID tag andimagecapturing features

MLOCR Multiline Optical

CharacterReaderA mail processingmachinewith characterrecognition

MLOCRJIss

Multiline OpticalCharacterReader/InputSubsystem

A mail processing machine with characterrecognitionandISS functions

MPBCS Mail ProcessingBarCode Sorter

Mail sortingmachineusuallyequippedwithOutput Subsystemcapability

NCSC National CustomerSupportCenter

Postalorganizationbasedin Memphis,Tennessee,thatprovidesvariouslevelsofsupportto postal organizations and customers

OCR OpticalCharacterRecognition

Computerfunctioi~a1ityto convert imagedatainto ASCII or other usabledata format

OSS OutputSubsystem A mail processingmachinespecificallydesignedto retrieve the results of RBCSprocessingandprint barcodesonmail thatrepresentdelivery ZIP Codes

Use or dsclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

Siemens ElectroCom LP. iv January 14, 2000516-12335

S.

1~~V.1•~

U ~ J I J -~ J JPostal Automated Redirection System (PARS) Incentive Program

Volume I - Executive Summary

List ofAcronyms and GlossaryofTerms (Continued)

Term Definition Description

P&DC ProcessingandDistribution Center

USPSmail processingfacility

PARS.

PostalAutomatedRedirection System

.

A systemdesignedto intercept andprocessundeliverable as addressedmail usingautomated techniques

REC

~

RemoteEncodingCenter

A USPSfacility where data conversionoperators processimage data to derive deliveryaddressinformation

RCR RemoteComputerReader

A componentof the RBCS having OCRcapability. Interfaces to the Image Control Unit

UAA Undeliverable asAddressed

Term applied to mail thatcannotbedeliveredto theaddresson the item due to customermove,incorrectaddressdata,etc.

USPS United StatesPostalService

Independentagencyof the Executive Branch,establishedin 1971

Use or disclosure of data contained on this sheet is subject to the restriction on the title page of this proposal.

Siemens ElectroCom LP. V

cnrnCX

January 14, 2000516-12335

Postal Automated Redirection SystemDEPLOThE~TSITE’REPORT

Page 1 of 5

~Un1ts

itaL&(etro Operations Area

~pstemArea

f Northern Virginia VA 014

2 .GaithersburgMD 0693 Capitol Heights MD 1944 Baltimore MD 038

5 Lexington KY 1776 Charleston SC 1417 Charleston Vs/V 1108 Columbus OHQ189 Youngstown OH158

10 Bowling Green KY 11111 CincirinatiOH 00812 Lancaster PA 17113 Cleveland OH 04914 Philadelphia PA 02815 Roanoke VA 08016 Erie PA16217 Pittsburgh PA.03318 Raleigh NCQ7319 Louisville KY00120 Harrisburg PA 13521 Greenville SC 08622 Norfolk VA02423 Charlotte NC04624 Akron OH05725 South Jersey NJ 003

Scanning LettersCOAs? Redirected?

Y •Y.

YYY Y

YYY

YVYVY

V

VVVVYVV

YYV

Malt Processing FacilitiesIntercepting UAA Mail

1 DuIIesVA2 Merrifield VA3 Gaithersburg MD4 Waldorf MD5 Baltimore MD6 Linthicum MD

7 Lexington KY8 Charleston SC9 Charleston WV

10 Columbus OH11 Youngstown OH12 Bowling Green KY13 Cincinnati OH

(PARS)

April 2002

Page2 of 5

(~F~tlnit~

Great Lakes Area

26.FlintMl 099.27 Madison WI 06828 Gary IN 10229 Milwaukee WI 03130 Terre Haute IN 216

31 Chicago IL 02632 Palatine IL 21533 Detroit MI 04534 Grand Rapids Ml 07735 St Louis MO 02336 Royal Oak Ml 19937 Indianapolis IN 01338 Bloomington IL 164

New York Metro Area

39 Brookl~nNY 044

40 Flushing NV 01541 NY(Morgan Stn) NY 039,

42 Red~BankNJ22243 Kingston NV. 16644 San Juan PR 14345 Newark NJ 02946 Long Island NY 23647 New BrunswickNJ 183

Mail Processing FacilitiesIntercepting UAA Mail

14 Flint MI15 Madison WI16 Gary IN17 Milwaukee WI18 Terre Haute IN19 Bloomington IN

20 Brooklyn NY21 Staten Island NY22 Queens NY23 NY(Morgan Stn) NY24 BronxNY25 Monmouth NJ

Scanning LettersCOAs? ~edirected?

VVV

Y VY

VV

VVVVY.V

V V

VV V

YVVVV

Page 3 of 5

CFS Units

NortheastArea

ScanningCOAs?

LettersRedirected?

Mail Processing FacilitieIntercepting UMMall

48 Waltham MA 23549 North Reading MA 05950 Syracuse NY 062

51 Eastern ME 2~452 Boston MA 03453 North (New) Haven CT 1554 Chicopee MA 12855 RochesterNY 01956 Providence RI 08157 Manchester NH 136

Pacific Area

58 Van Nuys CA 032

59 City of Industry CA 03760 Oakland CA 05661 North Bay CA2IO62 Honolulu. HI 09463 Bakersfield CA 20764LongBeach CA 30065 San Diego CA 01266 Los Angeles CA 02767 Sacramento CA 04268 Santa Ma CA 18969 San Francisco CA 047

VY

VVVVV

Y

Y

Y

V‘V

VYVVV

YY

V

VVV

26 Waltham MA2. North Reading MA28 Syracuse NY29 Watertown NY

30 Van Nuys CA31 Santa Barbara CA32 Oxnard CA33 Pasadena CA34 Mojave CA35 City of Iñdustry.CA36 Oakland CA37 North Bay CA

70 Mid Florida FL 181 V 38 Orlando FL. . . 39 LakeMaryFL

71 Marietta GA 232 V • V , 40 Duluth GA72 Nashville TN 123 V •

73 Lakeland FL 22? V . .

74 Jackson MS 15375 Johnson City TN 237~

V .

V76 Birmingham AL 011 y •

77 Miami FL 106 V78 Jacksonville FL 101 V , ‘

79MaconGAl68 . V

Southwest Area . . , .

•80 Dallas TX 092 Y 41 Dallas TX42 Coppell TX

. 43 TylerTX81 Abitene TX 205 V 44 Abeline TX82 Fort Worth TX 090

y .V 45 Fort Worth TX

83 North Houston TX 19784BatonRougeLA179 V85 Lithe Rock AR 051 V66 San Antonio TX 098 Y87 Okiahomá City OK 117 V

(~F~t lnif~

Page 4 of 5

Southeast Area

Scanning LettersCOAs2 Redirected?

Mail Processing FacilitiElnterceotina~UM Mail

I

Page 5 of 5

~ ~

CFS UnitsScanning

COAs?

VV

V

88 Colorado Springs CO 10789 Anchorage AK 20690 Portland OR 1649lYakimaWA2l292 Minneapolis MN 03693 Everett WA 23394 Seattle WA 21195 Provo East Bay UT 12496 Albuquerque MM 09197 Fargo ND 13298 Billings MT 20899 Las Vegas NVII5

100 Phoenix AZ 006101 DenverCO 203102 WIchita KS 064.103 Salt Lake City UT 186104 Spokane WA 139105 Cedar Rapids IA 140106 Kansas City MO 022

108 Totals:’..

Remote Encoding Centers (RECs)1 Albany NY REC2 Fishkill NY REC.3. Princeton NJ REC4 Fayetteville NC REC5 Chattanooga TN REC6 Tampa FL REC7 CharlestonWV REC8 Pittsburgh PA REC9 Bowling Green KY REC

10 Akron OHREC

LettersRedirected7

VVVY.YVV.V

V

VVVVY

V.VV

86 . 40

Mail ProcessIng FacilitiesIntercepting UAA Mail

46 Colorado Springs CO47 Anchorage AK48 Portland OR49’ Pasco WA50 Minneapolis MN51 Everett WA52 SeattJeWA53 Provo UT

11 Fort Wayne IN REC12 Peoria IL REC13 Duluth MN R~C14 Wichita KS REC15 SattLakeCityUTREC16 Beaumont TX REC17 Glendale AZ REC18 San Bernardino CA REC19 SeIrna~AREC20 Modesto CA REC

53

Western Area

POSTAL A

• What is PARS

• Mail Redirection Process Today

• Mail Redirection Process with PARS

• How does PARS Redirect Mail

• Processes Automated by PARS

• Program Status

• PARS Pilot

POSTAL AUTOMATED REDIRECTION SYSTEM - PARS

What is PARS

... a system to identify“Undeliverable as Addressed”letter mail at the first machinehandling and redirect itautomatically to the current,correct destination

NewI Address

OutgoiPnmary

NewYerk

~‘1ncoming~SecondarySan ‘Jose

916,649 30%

116,444 4%

Delivery Unit Clerks

Function 2

Delivery Unit Carriers

Total Savings

Less MaintenanceCostsLess Training Costs

Less RemoteEncoding Costs

Net Savings

a ~

3,095,181 100%

(27,412)

(33,790)(269,601)

2764,378

~~UCfS64’.

FORM 354Th fee due 60 ~NI,. ~1O

RETUBNT0 SENDER

POBOX t722BOS~NMAO2IO5~I722

~,1$.t4 IO3$$1OI0005 lII,1~

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• ContractA~

a Production First Article - April, 2003

a Phase One Deployment - July, 2003 - February, 2004

- MLOCR-ISS

— AFCS-ISS

• Full up PARS Operation

a