BEFORE THE POSTAL RATE COMMISSION WASHINGTON, D.C. 20268–0001 POSTAL RATE AND FEE CHANGES PURSUANT TO PUBLIC LAW 108-18 Postal Rate Commission Submitted 6/29/2005 6:29 pm Filing ID: 45567 Accepted 6/30/2005 Docket No. R2005-1 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORIES OF VALPAK DIRECT MARKETING SYSTEMS, INC. AND VALPAK DEALERS’ ASSOCIATION, INC., REDIRECTED FROM WITNESS TAUFIQUE (VP/USPS–T28-49-50) (June 30, 2005) The United States Postal Service hereby files its institutional response to the following interrogatories of Valpak Direct Marketing Systems, Inc. and Valpak Dealers’ Association, Inc.: VP/USPS–T28-49-50, redirected from witness Taufique. Each interrogatory is stated verbatim and is followed by the response. Respectfully submitted, UNITED STATES POSTAL SERVICE By its attorneys: Daniel J. Foucheaux, Jr. Chief Counsel, Ratemaking _______________________________ Keith E. Weidner 475 L'Enfant Plaza West, S.W. Washington, D.C. 20260–1137 (202) 268–6252; Fax –3084 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF VALPAK, REDIRECTED FROM WITNESS TAUFIQUE VP/USPS-T28-49. In presort-tree form, Chart Nos. 1 and 2 attached show costs (cents per piece), workshare-related and not, as appropriate, for Standard Regular (above the uneven line) and Standard ECR (below the uneven line) mail. Chart No. 1 is for the commercial category, and Chart No. 2 is for the nonprofit category. Both charts show PRC costs from library references in Docket No. R2005-1. The columns on each chart are labeled. Boxes with one layer set out either total or workshare-related costs, as appropriate. Boxes with two layers set out total costs on the top layer and workshare-related costs on the bottom layer. The largest boxes with three possible layers set out a cost difference in the top layer, with the second two layers empty. The arrows show the sources of the cost differences. (a) With respect to the columns labeled (i) barcode letter, (ii) letter, (iii) flat, and (iv) barcode flat, please confirm that the cost shown in each singlelayer box is correct. If any are incorrect, please provide the correct cost and a reference to its source. (b) With respect to the columns labeled (i) letter and (ii) flat, please confirm that the unit cost in each of the double-layer boxes is correct. If any are incorrect, please provide the correct cost and a reference to its source. ATTACHMENT TO VALPAK INTERROGATORY Commercial Standard, PRC Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 36.263 30.708 13.263 mx aadc bar 7.843 10.040 Non-bar to Bar Column Barcode Flat Column 1.854 basic 23.000 17.883 basic bar 28.854 7.803 2.251 3/5 0.941 28.460 19.799 0.741 3/5 20.749 16.397 aadc bar 6.902 3/5 bar 19.058 9.841 cr 3-digit bar 6.556 9.396 -3.729 cr 1.138 3.232 13.125 7.633 hd 5-digit bar 5.418 6.164 hd 0.576 5.492 6.784 cr bar 6.341 0.077 sat 5.588 sat 5.415 ATTACHMENT TO VALPAK INTERROGATORY Nonprofit Standard, PRC Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 36.263 30.708 13.263 mx aadc bar 7.843 10.040 Non-bar to Bar Column Barcode Flat Column 1.854 basic 23.000 17.883 basic bar 28.854 7.803 1.486 3/5 0.941 28.460 19.799 0.741 3/5 20.749 16.397 aadc bar 6.902 3/5 bar 19.058 9.841 cr 3-digit bar 6.556 9.396 -3.729 cr 1.138 3.232 13.125 7.633 hd 5-digit bar 5.418 6.164 hd 0.576 5.492 6.784 cr bar 6.341 0.077 sat 5.588 sat 5.415 ATTACHMENT TO VALPAK INTERROGATORY Sources for figures in Charts 1 and 2 of Attachment to VP/USPS-T28-49 Figure Column 1 7.843 6.902 6.556 5.418 6.341 Component Mail Processing 4.022 3.165 2.857 1.819 1.523 Component Delivery 3.821 LR-K-110STDLTRS.xls, sheet 'Letter 3.737 Sum' as modified in response to Question 3.699 3 of POIR No. 3. 3.599 LR-K-107.xls, sheet 'CompTab' 4.818 Source Column 5 23.000 17.883 20.749 16.397 13.125 5.492 5.415 18.665 13.548 16.071 11.719 3.431 1.056 1.056 Column 7 36.263 30.708 28.460 19.799 9.396 6.164 5.588 26.468 20.913 18.665 10.004 3.223 1.480 1.480 LR-K-102, file STANDARD FLATS PRC.xls, sheets 'CRA ADJ UNIT COSTS' AND 'PRESORT LEVELS HELD CONSTANT' as modified in response to Question 3 of POIR No. 3 28.854 19.059 19.058 9.263 LR-K-102, file STANDARD FLATS PRC.xls, sheet 'PRESORT LEVELS HELD CONSTANT' LR-K-110STDLTRS.xls, sheet 'Letter Sum' as modified in response to Question 3 of POIR No. 3. LR-K-107.xls, sheet 'CompTab' LR-K-107.xls, sheet 'CompTab' 4.335 4.335 4.678 4.678 9.694 4.436 4.359 9.795 9.795 9.795 9.795 6.173 4.684 4.108 Source LR-K-110STDLTRS.xls, sheet 'Letter Sum' LR-K-101.xls, sheet 'Table 1' LR-K-110STDLTRS.xls, sheet 'Letter Sum' LR-K-101, sheet 'Table 1' LR-K-101.xls sheet 'Table 1' as modified in response to Question 3 of POIR No. 3 Column 11 9.795 9.795 LR-K-101.xls, sheet 'Table 1' RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF VALPAK, REDIRECTED FROM WITNESS TAUFIQUE RESPONSE TO INTERROGATORY 49: (a)-(b) Please see the following charts, which are also on the attached Excel spreadsheet. RESPONSE OF THE UNITED STATES POSTAL SERVICE TO VALPAK INTERROGATORY, REDIRECTED FROM WITNESS TAUFIQUE Commercial Standard, PRC Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 36.263 30.708 13.263 mx aadc bar 7.843 10.040 Non-bar to Bar Column Barcode Flat Column 0.465 basic 23.000 17.883 basic bar 30.243 10.909 2.251 3/5 0.941 25.354 19.799 -0.648 3/5 20.749 16.397 aadc bar 6.902 3/5 bar 20.447 9.841 cr 3-digit bar 6.556 10.515 -0.540 cr 1.138 4.919 11.055 5.918 hd 5-digit bar 5.418 5.596 hd 0.562 5.137 5.862 cr bar 5.193 0.078 sat 5.034 sat 5.059 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO VALPAK INTERROGATORY, REDIRECTED FROM WITNESS TAUFIQUE Nonprofit Standard, PRC Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 36.263 30.708 13.263 mx aadc bar 7.843 10.040 Non-bar to Bar Column Barcode Flat Column 0.465 basic 23.000 17.883 basic bar 30.243 10.909 1.486 3/5 0.941 25.354 19.799 -0.648 3/5 20.749 16.397 aadc bar 6.902 3/5 bar 20.447 9.841 cr 3-digit bar 6.556 10.515 -0.540 cr 1.138 4.919 11.055 5.918 hd 5-digit bar 5.418 5.596 hd 0.562 5.137 5.862 cr bar 5.193 0.078 sat 5.034 sat 5.059 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO VALPAK INTERROGATORY, REDIRECTED FROM WITNESS TAUFIQUE Sources for figures in Charts 1 and 2 of Attachment to VP/USPS-T28-49 Figure Column 1 7.843 6.902 6.556 5.418 5.193 Component Mail Processing 4.022 3.165 2.857 1.819 1.523 Component Delivery 3.821 LR-K-110STDLTRS.xls, sheet 'Letter 3.737 Sum' as modified in response to Question 3.699 3 of POIR No. 3. 3.599 LR-K-107.xls, sheet 'CompTab' 3.670 Source Column 5 23.000 17.883 20.749 16.397 11.055 5.137 5.059 18.665 13.548 16.071 11.719 3.431 1.056 1.056 Column 7 36.263 30.708 25.354 19.799 10.515 5.596 5.034 26.468 20.913 15.559 10.004 3.223 1.480 1.480 LR-K-102, file STANDARD FLATS PRC.xls, sheets 'CRA ADJ UNIT COSTS' AND 'PRESORT LEVELS HELD CONSTANT' as modified in response to Question 3 of POIR No. 3 30.243 19.059 20.447 9.263 LR-K-102, file STANDARD FLATS PRC.xls, sheet 'PRESORT LEVELS HELD CONSTANT' LR-K-110STDLTRS.xls, sheet 'Letter Sum' as modified in response to Question 3 of POIR No. 3. LR-K-107.xls, sheet 'CompTab' LR-K-107.xls, sheet 'CompTab' 4.335 4.335 4.678 4.678 7.624 4.081 4.003 9.795 9.795 9.795 9.795 7.292 4.116 3.554 Source LR-K-110STDLTRS.xls, sheet 'Letter Sum' LR-K-101_Revised.xls, sheet 'Table 1' LR-K-110STDLTRS.xls, sheet 'Letter Sum' LR-K-101_Revised.xls, sheet 'Table 1' LR-K-101_Revised.xls sheet 'Table 1' as modified in response to Question 3 of POIR No. 3 Column 11 11.184 11.184 LR-K-101_Revised.xls sheet 'Table 1' RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF VALPAK, REDIRECTED FROM WITNESS TAUFIQUE VP/USPS-T28-50. In presort-tree form, Chart Nos. 1 and 2 attached show costs (cents per piece), workshare-related and not, as appropriate, for Standard Regular (above the uneven line) and Standard ECR (below the uneven line) mail. Chart No. 1 is for the commercial category, and Chart No. 2 is for the nonprofit category. Both charts show USPS costs from library references in Docket No. R2005-1. The columns on each attachment are labeled. Boxes with one layer set out either total or workshare-related costs, as appropriate. Boxes with two layers set out total costs on the top layer and workshare-related costs on the bottom layer. The largest boxes with three possible layers set out a cost difference in the top layer, with the second two layers empty. The arrows show the sources of the cost differences. (a) With respect to the columns labeled (i) barcode letter, (ii) letter, (iii) flat, and (iv) barcode flat, please confirm that the cost shown in each singlelayer box is correct. If any are incorrect, please provide the correct cost and a reference to its source. (b) With respect to the columns labeled (i) letter and (ii) flat, please confirm that the unit cost in each of the double-layer boxes is correct. If any are incorrect, please provide the correct cost and a reference to its source. ATTACHMENT TO VALPAK INTERROGATORY Commercial Standard, USPS Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 32.438 26.496 9.619 mx aadc bar 7.595 9.968 Non-bar to Bar Column Barcode Flat Column 0.396 basic 22.819 17.563 basic bar 26.100 8.620 1.513 3/5 0.933 23.818 17.876 0.386 3/5 21.306 16.898 aadc bar 6.662 3/5 bar 17.490 10.585 cr 3-digit bar 6.313 9.155 0.020 cr 1.129 3.301 9.135 3.660 hd 5-digit bar 5.184 5.854 hd 0.380 5.475 4.776 cr bar 4.359 0.632 sat 5.474 sat 4.843 ATTACHMENT TO VALPAK INTERROGATORY Nonprofit Standard, USPS Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 32.438 26.496 9.619 mx aadc bar 7.595 9.968 Non-bar to Bar Column Barcode Flat Column 0.396 basic 22.819 17.563 basic bar 26.100 8.620 1.513 3/5 0.933 23.818 17.876 0.386 3/5 21.306 16.898 aadc bar 6.662 3/5 bar 17.490 10.585 cr 3-digit bar 6.313 9.155 0.020 cr 1.129 3.301 9.135 3.660 hd 5-digit bar 5.184 5.854 hd 0.380 5.475 4.776 cr bar 4.359 0.632 sat 5.474 sat 4.843 ATTACHMENT TO VALPAK INTERROGATORY Sources for figures in Charts 1 and 2 of Attachment to VP/USPS-T28-50 Figure Column 1 7.609 6.678 6.330 5.202 4.344 Component Mail Processing 3.505 2.788 2.536 1.664 1.457 Column 5 22.817 17.730 21.314 17.067 9.110 5.443 5.104 17.407 12.320 15.030 10.783 3.776 0.967 0.967 Column 7 32.438 26.496 23.818 17.876 9.146 5.843 5.397 23.148 17.206 14.528 8.586 3.003 1.234 1.234 Column 11 26.100 17.490 16.810 8.200 Component Delivery 4.104 3.890 LR-K-48STDLETRS.xls sheet 'Letter Sum' 3.794 3.538 LR-K-84.xls sheet 'Test Tab' 2.887 Source LR-K-48STDLETRS.xls sheet 'Letter Sum' LR-K-84.xls sheet 'Test Tab' LR-K-43, file STANDARD FLATS.xls, sheet 'CRA ADJ UNIT COSTS' LR-K-84.xls sheet 'Test Tab' LR-K-43, file STANDARD FLATS.xls, sheet 'CRA ADJ UNIT COSTS' 5.410 5.410 6.284 6.284 5.334 4.476 4.137 Source LR-K-48STDLETRS.xls sheet 'Letter Sum' LR-K-67_Revised.xls sheet '1.Table 1' LR-K-48STDLETRS.xls sheet 'Letter Sum' LR-K-67_Revised.xls sheet '1.Table 1' 9.290 9.290 9.290 9.290 6.143 4.609 4.163 LR-K-67_Revised.xls sheet '1.Table 1' 9.290 9.290 LR-K-67_Revised.xls sheet '1.Table 1' RESPONSE OF THE UNITED STATES POSTAL SERVICE TO INTERROGATORY OF VALPAK, REDIRECTED FROM WITNESS TAUFIQUE RESPONSE TO INTERROGATORY 50: (a)-(b) Please see the following charts, which are also on the attached Excel spreadsheet. RESPONSE OF THE UNITED STATES POSTAL SERVICE TO VALPAK INTERROGATORY, REDIRECTED FROM WITNESS TAUFIQUE Commercial Standard, USPS Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 32.438 26.496 9.619 mx aadc bar 7.609 9.954 Non-bar to Bar Column Barcode Flat Column 0.396 basic 22.819 17.563 basic bar 26.100 8.620 1.513 3/5 0.931 23.818 17.876 0.386 3/5 21.306 16.898 aadc bar 6.678 3/5 bar 17.490 10.568 cr 3-digit bar 6.330 9.146 0.036 cr 1.128 3.303 9.110 3.667 hd 5-digit bar 5.202 5.843 hd 0.446 5.443 4.766 cr bar 4.344 0.339 sat 5.397 sat 5.104 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO VALPAK INTERROGATORY, REDIRECTED FROM WITNESS TAUFIQUE Nonprofit Standard, USPS Costs, Docket No. R2005-1 Barcode Letter Column Non-bar to Bar Column Letter L/F Column Flat basic 32.438 26.496 9.619 mx aadc bar 7.609 9.954 Non-bar to Bar Column Barcode Flat Column 0.396 basic 22.819 17.563 basic bar 26.100 8.620 1.513 3/5 0.931 23.818 17.876 0.386 3/5 21.306 16.898 aadc bar 6.678 3/5 bar 17.490 10.568 cr 3-digit bar 6.330 9.146 0.036 cr 1.128 3.303 9.110 3.667 hd 5-digit bar 5.202 5.843 hd 0.446 5.443 4.766 cr bar 4.344 0.339 sat 5.397 sat 5.104 RESPONSE OF THE UNITED STATES POSTAL SERVICE TO VALPAK INTERROGATORY, REDIRECTED FROM WITNESS TAUFIQUE Sources for figures in Charts 1 and 2 of Attachment to VP/USPS-T28-50 Figure Column 1 7.609 6.678 6.330 5.202 4.344 Component Mail Processing 3.505 2.788 2.536 1.664 1.457 Column 5 22.819 17.563 21.306 16.898 9.110 5.443 5.104 17.409 12.153 15.022 10.614 3.776 0.967 0.967 Column 7 32.438 26.496 23.818 17.876 9.146 5.843 5.397 23.148 17.206 14.528 8.586 3.003 1.234 1.234 Column 11 26.100 17.490 16.810 8.200 Component Delivery 4.104 3.890 LR-K-48STDLETRS.xls sheet 'Letter Sum' 3.794 3.538 LR-K-84.xls sheet 'Test Tab' 2.887 Source LR-K-48STDLETRS.xls sheet 'Letter Sum' LR-K-84.xls sheet 'Test Tab' LR-K-43, file STANDARD FLATS.xls, sheet 'CRA ADJ UNIT COSTS' LR-K-84.xls sheet 'Test Tab' LR-K-43, file STANDARD FLATS.xls, sheet 'CRA ADJ UNIT COSTS' 5.410 5.410 6.284 6.284 5.334 4.476 4.137 Source LR-K-48STDLETRS.xls sheet 'Letter Sum' LR-K-67_2nd.revised.xls sheet '1.Table LR-K-48STDLETRS.xls sheet 'Letter Sum' LR-K-67_2nd.revised.xls sheet '1.Table 1' 9.290 9.290 9.290 9.290 6.143 4.609 4.163 LR-K-67_2nd.revised.xls sheet '1.Table 1' 9.290 9.290 LR-K-67_2nd.revised.xls sheet '1.Table 1'
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