ACS™ – A Primer

July 31, 2008

Key Address Components

USPS® delivers to:

Over 126 million street or rural style addresses

Over 20 million PO Box addresses

USPS adds over 2 million addresses annually

USPS converts over 390,000 addresses annually (E-911)

13.7% of all Americans move each year

41.1 million individual / family Change-of-Address (COA) filings

19.3% of all businesses move each year

2.3 million business COA filings

146+ million delivery points in USPS® database

1.8 million new addresses are added each year

America Is Growing & On the Move

ACS™ debut

In the mid-1980s, Address Change Service was developed to provide an enhancement to the manual address correction process. Where USPS® was able, address corrections would be provided in an electronic environment, reducing USPS cost in providing and mailer cost in using address corrections.

Traditional ACS™ The USPS® assigns the mailer a Participant

ID consisting of 7 alpha characters. The mailer completes a profile, choosing a

class and mailpiece treatment option for each Participant ID.

The mailer prints the Participant ID and optional keyline at the top of the address block.

The mailer prints the requested ancillary service endorsement on each piece.

Traditional ACS™ The Computerized Forwarding System

(CFS) uses the Participant ID and optional keyline, class and ancillary service endorsement typed into the system by a clerk – along with Change-of-Address records or reasons for nondelivery to determine the disposition of the mailpiece and produce ACS records.

Postal Automated Redirection System (PARS)

Delivery Barcode Sorters were modified with reading and labeling modules to allow them to be used to automate the processing of Undeliverable-As- Addressed (UAA) mail.

3 modes of operation – Intercept, Carrier Identified, and Return to Sender (RTS, or UAA due to reasons other than a move)

PARS ACS™ processing PARS can read Traditional ACS data, or

extract the pertinent data from the Intelligent Mail® barcode requesting ACS, read the postage and any on-piece ancillary endorsement, and combine that with any Change of Address or Nixie reason to create the correct mailpiece disposition and ACS records.

PARS Intercept As mail is sorted on all USPS® letter

machines, there is the opportunity to withdraw the mail that has a COA filed against it.

PARS uses the delivery point to begin the identification, then performs name matching.

PARS Carrier Identified Mail that cannot be intercepted through

the very strict matching rules is sorted normally on to the carrier/box section.

The added confidence or correction provided when the employee sends the mail for UAA processing allows the mail to be processed in Carrier Identified mode.

PARS RTS RTS takes the mail that Delivery has

determined to be undeliverable for reasons other than a move and processes it based on the same mailpiece attributes it uses for forwarding. The result is not always “return” – if the mailpiece requests disposal, PARS makes that decision.

Forwarding Control System (FCS)

Today’s CFS software - very sophisticated software used on Flats Forwarding Terminals (FFTs) and non-Mechanized Terminals.

The FFTs were upgraded in 2006 with scanners that allow CFS to process mailpieces bearing the Intelligent Mail® barcode.

FCS processes primarily flats and parcels.

ACS™ availability PARS provides Traditional and OneCode

ACS® records for First-Class™ and Standard Mail® automation letters

FCS provides Traditional and OneCode ACS records for First-Class, Periodicals, and Standard Mail letters and flats.

FCS also provides Traditional ACS records for Package Services flats and parcels.

Mailer’s Decisions The mailer must decide:

If my mail cannot be delivered as addressed, how do I want the mailpiece treated?

If my mailpiece cannot be delivered, do I want the address correction? Do I want the reason for nondelivery?

If I want the new address or nondelivery reason, how do I want to receive it?

How much do I want to pay for corrections?

Mailpiece Disposition What do I want done with the mail?

Forward where possible, return the rest? Dispose of all UAA? Dispose of all UAA that cannot be

forwarded? Return everything?

Address Corrections

Do I want a hardcopy notice? Do I want electronic notices, but only of

forwarding information? Do I want a hardcopy if electronic cannot be

produced? Do I want electronic notices in addition to the

return of the piece with a correction affixed?

Control of the Mail The mailer controls the disposition of

the mail and the creation of address corrections by correct use of required ancillary service endorsements and the ACS™ data applied to the mailpiece.

Incorrect use may lead to unexpected results.

ACS™ Record Content COA record contains the Move Effective

Date, move type (Family, Individual, Business), parsed name - from the COA, not the mailpiece, parsed old and new address.

Nixie record contains the Participant ID, the keyline, and the reason for nondelivery code.

OneCode ACS® records also contain the full 31 characters of the Intelligent Mail® barcode.

Traditional and OneCode ACS records are different sizes for that reason.

New Address Quality Because ACS™ data comes directly from the

forwarding database, some percentage of those new addresses will not DPV® confirm. The information provided on the record is the information we used for forwarding.

COA data is corrected where possible through processes like LACSLink®, Address Element Correction (AEC), AEC II®, and the Electronic Unresolved Address Reporting System (eUARS).

Nondelivery Codes USPS® is required to provide a reason

for nondelivery if the mail cannot be delivered or forwarded.

ACS™ reasons for nondelivery are a subset of the total. The others cannot be automated and must be provided manually.

Source of Nixie data Mail is determined to be undeliverable

only by the clerk, carrier, or postmaster at the address on the mail.

Each piece is marked with the reason for nondelivery and submitted to PARS or CFS for processing

Nixie data does not come from a database. It is determined on each individual mailpiece.

Nondelivery CodesAttempted—Not Known Delivery attempted, addressee not known at place of address.

Illegible Address not readable.

In Dispute Mail returned to sender by order of chief field counsel because of dispute about right to delivery of mail and cannot be determined which disputing party has better right to mail.

Insufficient Address Mail without number, street, box number, route number, or geographical section of city or city and state omitted and correct address not known.

No Mail Receptacle Addressee failed to provide a receptacle for receipt of mail.

No Such Number Addressed to nonexistent number and correct number not known.

No Such Office in State Addressed to nonexistent Post Office (X)

No Such Street Addressed to nonexistent street and correct street not known.

Not Deliverable as Addressed—Unable to Forward

Mail undeliverable at address given; no change-of-address order on file; forwarding order expired. (Q)

Outside Delivery Limits Addressed to location outside delivery limits of Post Office of address. Hold mail for out-of-bounds customers in general delivery for specified period unless addressee filed order.

Refused Addressee refused to accept mail or pay postage charges on it

Returned for Better Address

Mail of local origin incompletely addressed for distribution or delivery.

Temporarily Away Addressee temporarily away and period for holding mail expired (W)

Unclaimed Addressee abandoned or failed to call for mail.

Vacant House, apartment, office, or building not occupied. (Use only if mail addressed "Occupant.")

Undeliverable, but not a nixie ACS recordBox Closed—No Order Post office box closed for nonpayment of rent.

Deceased Used only when known that addressee is deceased and mail is not properly deliverable to another person. This endorsement must be made personally by delivery employee and under no circumstance may it be rubber-stamped. Mail addressed in care of another is marked to show which person is deceased.

Delivery Suspended to Commercial Mail Receiving Agency

Failure to comply

Moved, Left No Address Addressee moved and filed no change-of-address order.

Returned for Postage Mail without postage or indication that postage fell off.

Returned to Sender Due to Addressee's Violation of Postal False Representation and Lottery Law

Mail returned to sender under false representation order and lottery order.

Returned to Sender Due to Addressee's Violation of Postal False Representation Law

Mail returned to sender under false representation order.

Returned to Sender Due to Addressee's Violation of Postal Lottery Law

Mail returned to sender under lottery order

Undeliverable as Addressed, Missing PMB or # Sign

Failure to comply.

Temporarily Away Legitimate reason for non-delivery Two ways to receive:

Either the customer has a temporary change of address on file

The customer left mail on hold and did not return on schedule. Carrier/clerk not yet able to submit a MLNA/BCNO for permanent database entry

OneCode ACS®

The Intelligent Mail® barcode provided an opportunity to move from human or Optical Character reading in PARS and FCS to the more reliable and efficient use of barcode reading to provide mailpiece information during processing to the mailpiece handling decision and address correction production.

Rates Effective May 12th, 2008

OneCode ACS® First Two Notices

Additional Notices

First-Class Mail® .06¢

Standard Mail® .03¢ .18¢

Traditional ACS™ All Notices

First-Class Mail .08¢

Other Classes .25¢

FREE!

Why should I use OneCode ACS®?

Mailer 1 paid $66,595.68 for 1,109,928 ACS™ records in 2007. If they had been OneCode ACS, they’d have paid $12,505.10.

Mailer 2 paid $80,701.14 for 1,345,019 ACS records in 2007. If they had been OneCode ACS they’d have paid $332.65.

OneCode ACS® Account Setup The USPS® assigns a Mailer ID consisting of either 6

or 9 digits The mailer completes a profile, choosing a class and

mailpiece treatment option for each MID. Crossing classes and ancillary services is possible, but should be discussed with ACS™ to anticipate any issues.

The mailer prints the Intelligent Mail® barcode, Sequence Number and Service Type ID to indicate the desired ancillary service.

The mailer prints any required or desired ancillary service endorsement on each piece.

ACS™ Account Approval (prior to mailing)

Both Traditional and OneCode ACS® mailers must submit samples to the ACS department for approval prior to account activation.

Samples are reviewed for correct use and placement of ancillary service endorsements, PID/keyline or Mailer ID (MID) content, Service Type Identifier (STID) content, and barcode readability (OneCode ACS only).

Record Fulfillment Address corrections are compiled by

Participant ID/MID, posted to RIBBS (Traditional or OneCode) or mailed on CD (Traditional only).

Mailer chooses daily, biweekly, weekly, bimonthly, or monthly fulfillments.

Mailer logs into website manually or through a script or other automated process to collect data.

Record Delivery on RIBBS Access is provided via a login and

password by the customer account number, also known as a MEM number.

MEM number is an “umbrella” account number for billing purposes, under which PIDs and MIDs can be grouped, by class.

Fulfillments and Shipping Notices

Each fulfillment data file is accompanied by a Shipping Notice file.

The file format is available in the ACS™ technical guides.

The Shipping Notice file provides the number and type of ACS records provided in the fulfillment file of the same date.

Record Charge Calculations Traditional ACS™ records are provided

at the Electronic rate – 8 cents for First- Class™ and 25 cents for all other classes

OneCode ACS® records are provided at the Automated rate, which applies to automated First-Class and Standard Mail® letters only

OneCode ACS® Fees

Automated fees for First-Class™ are free for the first two notices, 6 cents for each additional

Automated fees for Standard Mail® are 3 cents for the first two notices, 18 cents for each additional

Counting OneCode ACS® Records Scene 1

John, Mary, Pete and Abigail Smith all move from 123 Main Street and file a Family Change-of-Address Order (COA)

4 First-Class™ mailpieces are produced, one to each Smith

Because the ACS™ record is created by the COA, 4 Smith Family records are created.

2 are free, 2 are charged

Counting OneCode ACS® Records Scene 2

John, Mary, Pete and Abigail Smith all move from 123 Main Street and file a Family Change-of-Address Order (COA) for John and Mary, and Individual orders for Pete and Abigail.

4 First-Class™ mailpieces are produced, one to each Smith

Because the ACS™ record is created by the COA, 2 Smith Family records are created. 1 Pete record and 1 Abigail record are created.

The first 2 Smith Family records are free, and each Pete and Abigail record is free.

Similar mailpieces are mailed to the same old address the next week. The Smith Family records are # 3 and # 4, so they are charged. Pete’s and Abigail’s records are #2, so they are not charged.

Counting OneCode ACS® Records Scene 3

Mailer creates 16 mailpieces to Bumble Incorporated to 16 different employees.

Bumble Inc. has filed a single business Change-of-Address order.

The first 2 Bumble Inc. ACS™ records are free, the other 14 records are not.

Monthly Billing ACS™ is the only USPS® product not

paid for in advance. Each month, an invoice is sent to the

PID/MID holder showing each fulfillment, the types of records fulfilled, and the amount due.

Invoices are payable 30 days net Statements are also provided.

Mailer Action on ACS™ records The mailer uses business rules and

matching processes to apply the address corrections and reasons for nondelivery to his addresses.

The mailer has an updated mailing list for the next mailing.

If you do nothing, your mailing list degrades by 1 ½ % each month.

For More Information Traditional ACS™, please read USPS® Pub

8a OneCode ACS®, please read USPS Pub 8b Both are available on RIBBS at

www.ribbs.usps.gov. Both links are on the left side menu.

Also be sure to read DMM® 507 for more information on the treatment of UAA mail.

Other helpful URLs http://ribbs.usps.gov/files/Move_Update/MUP.html   http://ribbs.usps.gov/files/npfpresentations/   http://ribbs.usps.gov/files/NCOALINK/NCSC_PRESENTATIONS/   http://ribbs.usps.gov/bestpractices.pdf   http://ribbs.usps.gov/brochures/taq/   http://ribbs.usps.gov/imsymposium.htm   http://ribbs.usps.gov/onecodesolution/   http://ribbs.usps.gov/onecodesolution/videos/video4.cfm   http://ribbs.usps.gov/intelligentmail.htm   http://ribbs.usps.gov/files/intelligent_mail_container_barcode/imcontainerbarcode.htm   http://ribbs.usps.gov/files/intelligent_mail_tray_label/mailer_web_content.cfm   http://ribbs.usps.gov/gettingstarted/

Applications Applications and 1357-Ws for either service can be

mailed, faxed, or scanned and emailed.

Mail to: ACS Department, USPS

6060 Primacy Pky Ste 201

Memphis TN 38188-0001

Fax to: (901) 821-6204

Email to: acs@usps.gov

Thank you for your time and attention. I hope you found this presentation and discussion helpful.