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February 8

February 8, 2007

 

Negotiated Service Agreement to Include Intelligent Mail Services

 

Yesterday we filed our sixth negotiated service agreement (NSA) request with the Postal Regulatory Commission. This request is for a three-year agreement with Bank of America providing incentives to reduce the amount of First-Class Mail and Standard Mail that is returned, forwarded, or destroyed because it is undeliverable-as-addressed. Performance-based incentives for the use of Intelligent Mail products are included for the first time in a proposed NSA.

 

Bank of America will adopt new barcode technology, implement new preparation standards and use address correction products on its mailpieces. Standardized Intelligent Mail® Barcodes, continuous mail tracking, and real-time feedback to business customers are included in Intelligent Mail services.

 

A negotiated service agreement is a contract between us and a mailer and provides customized pricing based on the company’s mail operations. The changes in prices and services needed to implement the NSA require review and recommendation by the Postal Regulatory Commission and approval by the USPS Governors.

 

The Governors previously approved five other NSAs.