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Postal Automation Redirection System - PARS
PARS is a system to identify "Undeliverable as Addressed" (UAA)
letter mail at the first machine handling and redirect it automatically to the
current, correct destination. PARS will automate the handling of:
• Change of Address (COA) forms - 3575
• Carrier Changes of Address Card - 3982
• Notification of Mailer- 3547
• Address Correct Services
• Forwarded Mail — UAA due to a move
• Carrier Return Mail — UAA due to a reason other than a move
PARS will not change the handling of UAA non-machineable
letters, flats or parcels and rolls.
On April 9, 2002 the Board of Governors approved funding for the PARS program,
which had been tested at the Dulles, VA site. The APWU has been notified of the
USPS intention to deploy PARS nationally with Phase 1 tentatively scheduled to
begin in July 2003 and completed by February 2004.
PARS is designed to automatically intercept and redirect (initially around 50%)
automated UAA letter mail at its origin and process the remaining mail on the
new labeling machines at P&DCs. This new technology will also input change of
address cards (COAs) into the national database by scanning the COAs.
This program will eliminate mechanized terminals at the initial 40 CFS sites
included in Phase 1. Since the PARS has image lift capabilities, it will require
some additional terminals for data conversion operators at the 20 Remote
Encoding Centers.
The USPS anticipates a reduction of 2.8 million work hours, of which
approximately 64% will come from affected CFS units, 30 % from clerk delivery
functions, 4 % from city and rural carrier functions and 2 % from P&DC
operations.
Phase 1 will see the elimination of data input of COAs in all 219 CFS units.
Initially 86 CFS units will be outfitted with the necessary equipment to scan
COAs. The remaining units will send their COAs to the 86 units with scanning
capability to be scanned into the national data base, with the images being sent
to RECs to be proofed by DCOs.
Phase 1 will also see letters redirected from 40 CFS units. 53 Mail Processing
Facilities will initially be intercepting UAA mail.
Phase 2 will see the remaining 179 CFS units have their letter mail redirected
and all remaining MPFs will eventually intercept UAA mail.
Below is official notification from the USPS as well as a deployment
schedule.
TOP
May 2, 2002
Mr. William A. Burrus
President
American Postal Workers Union
1300 L Street, NW
Washington, DC 20005-4128
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 Automation Redirection System (PARS) program. Information
was provided about the status of the PARS pilot test being conducted at the
Dulles, Virginia site, and the union was notified as well of the Postal
Service’s intent to transition towards national deployment of PARS.
On Tuesday, April 9, the Postal Service received funding approval from the Board
of Governors for PARS. Immediate plans are underway to procure a contract with
the developer of the technology so that equipment enhancements may be phased in
at specific locations in the near future.
Phase I of PARS will be deployed at 40 Computerized Forwarding System (CFS)
sites and 53 Processing and Distribution Centers (P&DC5). The objective is to
automatically intercept and redirect nearly half of the total automated
Undeliverable as Addressed (UAA) letter mail generated at origin and process all
the remaining mail on the new labeling machines at the P&DCs. The PARS system
will eliminate the need for mechanized terminals at the 40 CFS sites but will
require some additional terminals for data conversion operators at the 20 Remote
Encoding 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 the remaining 2% in P&DC operations). The
majority of the savings projection is expected through technological replacement
of mechanized terminal CFS keying with automated equipment. Savings will also
result from a reduction in multiple UAA mail sorting, handling and transporting
by clerks, carriers or other employees who interface with UAA mail at the wrong
mailing destinations.
Through PARs technology, the Postal Service also anticipates improved customer
service index scores as the time required to redirect UAA mail improves. Mail
will be intercepted and properly labeled with change-of-address information
while still in the automation mail stream, which will result in immediate
improved service for customers.
After PARS is deployed, non-machinable letter mail that cannot be read through
PARS automated equipment, as well as flats and parcels, will continue to be
processed through CFS units. 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 COA forms 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 large percentage of UAA letter mail and may eventually handle UAA flats.
The pilot test in DuIles, Virginia will remain ongoing for the purpose of
retaining a site where tests of the equipment may continue as more features and
enhancements are added over time. As the PARS features and enhancements come to
include a Remote Barcode Sorter (RBCS) connection, the Charleston, West Virginia
Remote Encoding Center (REC) will begin processing UAA letter images captured at
Dulles, Virginia. Equipment designated for processing readable UAA 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 (Editors Note: will be posted when received) Site selections were made
almost exclusively from among the 140 CFS units throughout the country that are
co-located with P&DCs. The deployment dates, however, are tentative (between
July 2003 and February 2004) and could change based on the procurement of the
contract. A legend of the acronyms used in the report, as requested by Mr.
McCarthy, is enclosed. A report of all CFS sites, their location and career
staffing matrices will be developed and provided in the near future.
Meanwhile, the Postal Service looks forward to engaging the union in discussions
about training needed at the REC sites where PARS will be deployed and plans for
placement at sites where mail volumes begin to decline to a point where
reassignments under Article 12 may become necessary.
Peter A. Sgro
Manager
Contract Administration
Top
More USPS News - Notes - Info on PARS
Undeliverable-As-Addressed Mail
During 2002, the Postal Service awarded a contract for the production and
installation of Phase I of the Postal Automated Redirection System (PARS). PARS
automates the handling of undeliverable-as-addressed (UAA) letter mail more
efficiently than today’s process. The UAA mail is intercepted earlier in the
sorting process, resulting in a reduction in not only total handlings and
processing costs but, at the same time, improving service. The system notifies
mailers of patrons’ address changes electronically for mailers that subscribe to
this service and provides hard copy notification for mailers who do not
subscribe. Both services generate revenue for the Postal Service. The system
also automates processing of change-of-address forms.
Phase I includes 53 processing plants and 86 Computerized Forwarding System (CFS)
sites which forward nearly one-fourth of all forwarded letters. PARS Phase I
deployment is expected to begin in July 2003 and end in May 2004. The Postal
Service expects to complete Phase II, which covers deployment to the remaining
sites, by the fall of 2006.
To improve the effectiveness of automated address identification systems for processing letter mail, a contract was awarded to Siemens Dematic Postal Automation, L.P., for Phase One of the Postal Automated Redirection System (PARS). A firm fixed-price contract with performance incentive provisions was negotiated. Under the terms of the 30-month contract, Siemens Dematic will manufacture and install 53 systems and associated modifications to remote encoding equipment and the National Customer Support Center, and provide training, spare parts, support, and all required warranties. PARS will be capable of identifying undeliverable-as-addressed (UAA) letter mail at the first handling machine and automatically redirect it to the current, correct destination to improve operational efficiency and service. Siemens will provide a complete and comprehensive automated solution for mail forwarding. PARS Phase One deployment will begin in July 2003 and will end in May 2004.
Our
capital plan for the future calls for aggressive cost management by developing
and deploying new automation and mechanization equipment that will increase our
operating efficiency. We estimate our total capital commitment plan for 2003 at
$2.5 billion. We will continue to concentrate on maintaining such infrastructure
as facilities, vehicles and systems, as well as return on investment projects.
Under this plan, we will make investments in programs that reduce work hours in
our distribution, processing and delivery operations. A prime example of this
type of investment is Postal Automated Redirection System (PARS) approved
by the Board of Governors in 2002. PARS will identify and intercept
letters that should be forwarded during the initial handling and automatically
redirect them to the new address. Each year we process more than 43 million
change-of-address orders and over 5 billion pieces of mail that must be either
forwarded, returned to sender or handled alternatively. The total cost
attributed to this activity exceeds $1.5 billion annually. PARS
technology will help us capture cost savings by reducing labor and the time
required for delivery.
With the exception of mail forwarding, there are no new major automated
equipment initiatives left for letter mail. We will focus on flat mail
processing, including the Flats Optical Character Reader, Flats Identification
Code Sorter and the Flats Feeder Enhancement Program. We expect this focus will
be as successful as our efforts in reducing costs for letter mail processing.
In 2001, our facility-related investments were limited to those that addressed
emergency, safety and legal issues; modifications to ongoing construction;
planning funds for a small number of major projects and opportunities for
revenue generation or significant savings. In 2002, we expanded these criteria
to address high growth areas, facility obsolescence and necessary maintenance of
our real property assets. We review projects meeting these criteria on a
case-by-case basis.
Improve Address Quality
Recommendation Recap
The October 2001 report of the Mailing Industry Task Force recommended
reducing undeliverable mail by improving address quality and by providing a
“feedback loop” that captures and reports addressing errors.
During its deliberations, the Task Force developed a strategic vision for its
address quality initiatives that encompassed customer expectations for more
control over their mail and its delivery, increased response rates for sales and
marketing mail, and reduced mailing costs. The costs associated with
Undeliverable-As-Addressed (UAA) mail totaled $1.9 billion each year, the Task
Force noted. The Task Force eventually narrowed its focus to concentrate on how
best to improve the processes used by mailers and the Postal Service to create
quality address databases and to ensure that their use is most effectively and
efficiently leveraged by Postal Service operations procedures and programs.
“The Task Force members working on address quality improvement are driving a
tremendous amount of change,” commented Acxiom Company Leader Charles Morgan.
“We intend to keep the momentum going.”
Task Force Progress
NCOA Data Test. The Task Force has completed a test to evaluate the quality of the information in the National Change Of Address (NCOA) database, and the process by which it’s used. The test demonstrated that there are opportunities for improvement in identifying the differences between temporary and permanent, and family and individual moves. The test also showed the need to align the ways different address-correction systems default to move types. “The changes made as the result of the findings of this extensive mailing will add value for both mailers and ourselves,” observed Postal Service Chief Technology Officer Charles Bravo.
A number of recommendations emerged on how the Postal Service uses its address database to successfully forward mail, and how address correction information is solicited and captured. They include:
• Changes in field procedures
• Additional training for carriers and clerks
• New marketing materials for customers
• Revisions to the Domestic Mail Manual
• A redesign of Form 3575, the official change of address form
• Re-emphasize proper handling of Address Change Service (ACS) mail
• Encouraging NCOA licensees and Coding Accuracy Support Software (CASS) vendors to improve their individual address-matching software logic
• Implementing improved USPS COA software to link multiple moves
“While we have found areas that can be improved,” said Steering Committee member Morgan, “the data is fundamentally sound. Indeed, many of the issues our test uncovered relate to errors in customer input to the system. The change-of-address form redesign should go a long way towards correcting that.”
“Feedback Loop” Development. Funding for the Postal Automated Redirection System (PARS) — a lettermail-only system — was approved by the Board of Governors, and a contract signed with Siemens for its development and implementation. The latter is scheduled to start in July 2003, with full deployment to take two-to-three years. When PARS is operational, some of the address-change input problem will be alleviated by carriers no longer having to copy by hand Form 3575 data onto a second form.
Preprinted Address Change Service Codes. A draft request allowing mailers to preprint ACS participant codes on envelopes will be completed and reviewed by the Postal Service this fall. When approved, mailers will be able to use electronic ACS without changing the envelope window size or making costly program changes. Already successfully tested by one mailer, preprinted codes have potential to generate substantial UAA-related cost reductions for both mailers and the Postal Service. They will be addressed in the next edition of the Domestic Mail Manual.
Federal Register Notice. The Task Force contributed to the preparation of a draft Notice proposing new Postal Service rules and regulations to drive out the cost of the system and reduce the volume of Undeliverable-As-Addressed mail. The notice was published in late May, with public comments due to have been submitted by August 29. The notice called for:
• Eliminating manual address corrections generated from Ancillary Service Endorsements as a means to meet the Postal Service’s Move Update requirement.
• Increasing the frequency from 180 to 90 days for addresses to be Move Update-qualified.
• Increasing the frequency from 180 days to 90 days for addresses to be ZIP+4 coded via CASS-certified address matching software in order to obtain a USPS discounted automation rate.
• Requiring monthly updating of address matching directories used by CASS in order to obtain USPS discounted automation rates.
• Extending the USPS Move Update requirement concept for bulk mailings to Periodicals, Standard Mail, and Package Services.
Comments have been generally supportive and reflect the diversity of the mailing industry.
Future Actions
The Task Force will support the following next steps:
• Conduct a second NCOA test mailing after a recommendation-implementation period, to assess the effect of the proposed changes on the system.
• Encourage the Postal Service to test commercially available databases to support enhanced address quality.
• Prepare for and conduct focus groups to redesign the change-of-address form. The Postal Service and the Gallup Organization will develop discussion materials and host focus groups to improve Form 3575.
• Ensure that industry input on the Federal Register Notice’s proposed rules and regulations for COA software updates is given full consideration and is reflected in the new regulations when enacted.
• Evaluate a Change-of-Address by Phone service and assess the potential of utilizing the Postal Service call centers to take customer Change of Address requests through a toll-free number, augmenting the COA services available at post offices and on the Postal Service website. The cost of providing such service by phone, the Task Force found, could be substantially less than when hard-copy COA forms are processed by post offices. The service may also produce higher quality results than achieved on the Internet, as there would be a lower drop-out rate since call center agents would be available to assist customers. The Postal Service has agreed to continue its assessment of this service.
• Support Postal Service implementation of a “snowbird” mail-forwarding program, whereby consumers could choose to purchase pre-paid Priority Mail envelopes, and have their local post office collect and send mail to a temporary address on an agreed-upon schedule.
Address Quality Committee Membership
The Task Force subcommittee on address quality has members representing Acxiom, Prudential Financial, BankOne Card Services, Progressive Insurance, Pitney Bowes, Quebecor World, and Time Customer Service, Inc. The committee is co-chaired by Charles Morgan, Company Leader of Acxiom, and Postal Service Senior Vice President and Chief Technology Officer Charles Bravo.
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