May 18, 2006

Bookspan Negotiated Service Agreement Recommended

The Postal Rate Commission (PRC) recommended approval of our Negotiated Service Agreement (NSA) with Bookspan. This agreement is the first NSA related to Standard Mail and the first agreement containing volume based price incentives without accompanying cost savings. The Commission praised the inclusion of several new contract features, and cited the presence of a significant multiplier effect as a key factor. Bookspan uses Standard Mail to acquire customers who then generate a substantial volume of additional mail through product orders and shipments and additional advertising mail.

In a separate concurring opinion, PRC Chairman Omas encouraged “the Postal Service to continue its work with the mailing community” where NSAs “can thrive and reach their fullest potential.” 

The PRC Opinion and Recommended Decision is now subject to a decision by the Board of Governors. The complete Opinion and Recommended Decision is available on the PRC Web site at prc.gov.

Upcoming Mail Preparation Changes

Several mail preparation changes are effective in July. We summarize these changes below, and we will incorporate them into the DMM on July 6. Questions? Contact your local business mail entry unit for assistance.

The DMM, business rate calculator, and other mailing tools are always available on Postal Explorer at pe.usps.com.