November 6, 2002

Postal Service To Track Commercial Air Carrier Performance WASHINGTON - The Postal Service will be in a better position to determine if it's getting the biggest bang for its buck by soon requiring airlines that carry mail to use a new technology that tracks performance.

Beginning next spring, the Postal Service will require airline transportation carriers to scan mail from the time they receive it until it's turned over to the Postal Service. This announcement follows Board of Governors approval to fund this technology, the second phase of its Surface Air Support System (SASS).

"This technology will help the Postal Service ensure that America's postal customers are getting the best value for their postage," explained Paul Vogel, Vice President, Network Operations Management, referring to the continued construction of the Information Platform.

"The Platform leverages technology used to collect, process and deliver mail to tell postal management 'when and where the mail is,' so we can place the right resources in the right place at the right time."

The Postal Service is negotiating a new contract with commercial air carriers that coincide with these enhancements. The contract, scheduled to start-up in May 2003, will include incentives based on contractor pricing, contractor performance measurements, and adjustments to mail assignments.

SASS provides a new dimension of contractor performance assessment because it will provide a systemic method to exchange information with suppliers. It relays mail assignment data to transportation carriers and uses scan data to match mail assignments and reconcile payment information.

"This data is vital to providing us the ability to accurately measure mail volumes contractors move, contractor on-time delivery performance," he added, "and most important, provide us with greater accountability of transportation suppliers."

Phase I, completed September 2001, created a payment system for the FedEx Express contract to fly mail and track its performance, as well as track performance to move mail by rail on Amtrak.

"As with Phase I," he continued, "this second phase will provide data that will help us make more informed decisions to determine the most efficient use of these networks - critical to helping us raise delivery performance to all-time highs while keeping expenses within budget."

Phase III is being tested to determine the viability of including truck and rail carriers. Vogel also obtained funding approval for the Network Operations Management portion of the Enterprise Data Warehouse where the Postal Service will consolidate processing and network information into a single database to improve network planning and management activities.