April 28, 2011 Mr. Cliff Guffey President American Postal Workers Union (APWU), AFL-CIO 1300 L Street, NW Washington, DC 20005-4128 Dear Cliff: Certified Mail Tracking Number: 70993400000905153481 Fax: (202) 842-4297 This is to inform you of the Postal Service's decision to consolidate all originating and destinating mail processing operations at the following Southwest Area location: • Fort Smith, Arkansas Customer Service Mail Processing Center (CSMPC) into Northwest Arkansas (Fayetteville) Processing & Distribution Facility (P&DF) After review, it was decided that this consolidation is in the best interest of the Postal Service. Implementation of this AMP is expected to be completed by October 2011. Enclosed, per your request is a copy of the completed study. The Postal Service must continually look to improve productivity and increase efficiency while maintaining excellent service. The decline in mail volume and revenues due to the economic downturn has only heightened the need for such improvements. These consolidations will allow us to accomplish this goal by making better use of excess space, staffing, and equipment, and to process mail more efficiently. It is projected that this consolidation will result in significant savings for the Postal Service. Some affected career employees may be reassigned to the gaining facility or to other vacant positions. Reassignments will be made in accordance with the collective bargaining agreement. If you have questions, or need additional information, please contact Barry Carpenter at (202) 268-6892. John W. Dockins Manager Contract Administration Enclosure (CA2011-376)
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April 28, 2011 Union (APWU), AFL-CIO 1300 L Street, … · Union (APWU), AFL-CIO 1300 L Street, NW ... to align the Outgoing mailstream with the service standards ofthe Northwest
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April 28, 2011
Mr. Cliff GuffeyPresidentAmerican Postal Workers
Union (APWU), AFL-CIO1300 L Street, NWWashington, DC 20005-4128
Dear Cliff:
Certified Mail Tracking Number:70993400000905153481
Fax: (202) 842-4297
This is to inform you of the Postal Service's decision to consolidate all originating anddestinating mail processing operations at the following Southwest Area location:
• Fort Smith, Arkansas Customer Service Mail Processing Center (CSMPC) intoNorthwest Arkansas (Fayetteville) Processing & Distribution Facility (P&DF)
After review, it was decided that this consolidation is in the best interest of the PostalService. Implementation of this AMP is expected to be completed by October 2011.Enclosed, per your request is a copy of the completed study.
The Postal Service must continually look to improve productivity and increase efficiencywhile maintaining excellent service. The decline in mail volume and revenues due to theeconomic downturn has only heightened the need for such improvements. Theseconsolidations will allow us to accomplish this goal by making better use of excess space,staffing, and equipment, and to process mail more efficiently.
It is projected that this consolidation will result in significant savings for the Postal Service.Some affected career employees may be reassigned to the gaining facility or to other vacantpositions. Reassignments will be made in accordance with the collective bargainingagreement.
If you have questions, or need additional information, please contact Barry Carpenter at(202) 268-6892.
John W. DockinsManagerContract Administration
Enclosure
(CA2011-376)
Type of Distribution to Consolidate:; Orig & DestFacility Name & Type:; Fort Smith CSMPC
Street Address: , 3318 S 74th StreetCity:! Fort Smith
State: AR50 Facility ZIP Code: i 72903
District: i ArkansasArea:, Southwest
Finance Number:Current 3D ZIP Code(s):! 729
Miles to Gaining Facility: i 59EXFC office:: Yes
I
Postmaster: i Jim R. ThomasSenior Plant Manager:, Larry Wagener Jr.
District Manager:! David CampFacility Type after AMP:! Post Office
MODS/BPI Office
Oct-01-2009 : Sep-30-2010
Date & Time this workbook was last saved:
Facility Name & Type:; Northwest Arkansas (Fayetteville) P&DFStreet Address: i 2300 S City Lake Road
City:, FayettevilleState: AR
50 Facility ZIP Code:! 72701District: Arkansas
Area:; SouthwestFinance Number:
Current 3D ZIP Code(s):' 727EXFC office:! Yes
Plant Manager:! Kennneth GoodleafSenior Plant Manager: I Larry Wagener Jr.
District Manager: i David Camp
Start of Study:: 11/19/10I
Date Range of Data:Processing Days per Year: 310
Bargaining Unit Hours per Year: 1,750EAS Hours per Year: 1,825
Date of HQ memo, DAR Factors/Cost ofBorrowlng/New Facility Start-up Costs Update 1- M_a_Y_2_7_,_2_0_0_9 -l
4/26/2011 10:54
Area Vice President: i Linda J WelchVice President Network Operations:i David E Williams
Area AMP Coordinator: i Richard C. EnriquezHQ AMP Coordinator:: Doris Billingslea
rev 08113/2009
Package Page 1 AMP Data Entry Page
it¥~~'~~';::~4~~:%.v~~T~~~iM'It'\'1!!t'tZxm::t"'i:i!F~I., M *le l'I'_R;"," '1.
AC1(NOWLfiOGEMalT OF ACCOUNTA8lUTY· f~ INlllem~ fot~1lOd~ h lnfeQrlIy of llJl o/l'ic;/al poelIlI~ ayslema.~ ftnandlll reports 8I1lI1hoM retattng In~ 'MIt!~. comp/Clment. or slrniIaI ef!ot1a lmtoMnO lite iovennentand~ 01 funds... __ M lllIlIysk!m$ 1o:MlNU;e to 001 CUIl~
Non-MP CrafliEAS + Shared LDCs Workhour Savings (less MaintlTrans) = ($6,406) from Other CUff vs Prop-_---.::..;...;_..:..PCES/EAS Supervisory Workhour Savings = $265,235 from Other CUff vs Prop
Transportation Savings = ($593,037) from Transportation (HCR and PVS)
Maintenance Savings = $1,031,215 from Maintenance
Space Savings = $0 from Space Evaluation end Other Costs
Total Annual Savings =
Total One-Time Costs = $458,098 from Space Evaluation and Other Costs
$1,478,003Total First Year Savings =_-...;",;";,,;;,;,;,,;;,,;.,,
Staffing Positions
from Staffing. Craft33Craft Position Loss =---:..:;---PCES/EAS Position Loss =__~2~__ from Staffing. PCES/EAS
Volume
Total FHP to be Transferred (Average Daily Volume) = 510,868 from Workhour Costs· Current
Current FHP at Gaining Facility (Average Daily Volume) = 774,959 from Workhour Costs· Current
Losing Facility Name and Type: Fort Smith CSMPCCurrent 3D ZIP Code(s): 729
Type of Distribution to Consolidate: Orig & Dest
Gaining Facility Name and Type: Northwest Arkansas (Fayetteville) P&DFCurrent 3D ZIP Code(s): 727
Background:
The Fort Smith CSMPC is a USPS owned facility that processes all originating and destinatingmail for the 729 ZIP Code area. The Arkansas District has completed an Area Mail Processing(AMP) study to determine the feasibility of transferring all originating and all destinatingoperations approximately 59 miles from the Fort Smith CSMPC to the Northwest ArkansasP&DF.
Financial Summary:
Annual baseline data came from October 1, 2009 - September 30, 2010. Financial savingsproposed for this consolidation of originating and destinating operations are:
Total First Year SavingsTotal Annual Savings
Customer Service Considerations:
$1,478,003$1,936,101
The average daily volume of First Class Mail is 636,625 pieces. First Class Mail servicestandard impacts will include upgrades, and downgrades. The changes in service are necessaryto align the Outgoing mailstream with the service standards of the Northwest AR P&DF.
In addition to these changes, Transportation issues will make certain changes in the Expressmail cut-offs necessary. Express mail cut-offs must be set to NLT 17:00 in Fort Smith and VanBuren in order to meet the DOV in Fayetteville for FedEx Night Turn. DOV's in offices south andeast of Fort Smith will have be moved back as much as 1 hour from their current times as well,in order to meet the Express cut-off in Fayetteville as well, similar to the process followedcurrently in South Arkansas.
The proposal to change the postmark on the collection mail is as follows:
rev 06/10/2009
Package Page 4 AMP Summary Narrative
Summary Narrative (continued)
Summary Narrative Page 2
Transportation Changes
All transportation in the SCF 729 area is being revised to give direct connection to and from theNW Arkansas P&DF, as the intention of this AMP is to shut down the existing building foreverything other than Delivery and Retail. All HCR trips have been remapped, with the intentionto maintain the current arrival time at the furthest point of the trip. No impact to the offices onmorning DOV's is expected. A main consideration is Express mail. The DOV in Fayetteville forExpress is 18:55, so all HCR's have been modified to arrive NLT 18:30 in Fayetteville in order tomeet this. This has caused an issue with offices south and east of Fort Smith, that will causethem to have earlier DOV's and cut-off times than they currently have. Also, an Express run hashad to be added in the Fort SmithNan Buren city area in order to get their Express mail toFayetteville in a timely fashion. However, this will still mean that their cut-off must be modified to17:00 in order to make this work. The cost of these changes is high, as every trip must add 108miles (round-trip). Proposed transportation changes will result in an increased cost of $799,037annually.
Staffing Impacts:
Consolidation of the Fort Smith CSMPC processing into Northwest Arkansas P&DF will have animpact on staffing and will require movement of personnel. Projections indicate a net reductionof 79 full-time equivalent (FTE) craft positions at Fort Smith. The Northwest Arkansas P&DFprojections indicate a net gain of 46 full-time equivalent (FTE) craft positions, with a total loss of33 craft positions as a result of this AMP.
There is a projected staffing reduction of 2 EAS at present. The Maintenance Manager andSupervisor Distribution Operations jobs in Fort Smith would be abolished, with 1 SDO job beingtransferred to Fayetteville to fill an empty authorized position, and 1 Manager Mail Processingjob in Fayetteville filled as well. There are currently no Supervisor Customer Services jobs filled,according to WebCOINS, in the losing office. It is possible that these 2 SDO's will be slotted intothem instead of being excessed.
t Craft =FTR + PTR + PIT + Casuals2 Craft = Fl + F4 at Losing; Fl only at Gaming
The Postal Service Ensures that its standard practices comply with the Worker Adjustment andRetraining Notification (WARN) Act.
Mail Flow Adjustments:
All mail volume currently processed at Fort Smith would be transferred to Fayetteville.
One Time Costs:
Equipment Relocation:Fort Smith currently has 4 DBCS, 1 DIOSS, 1 UFSM and 1 AFCS. This AMP plan will requirethat 3 DBCS and 1 DIOSS be moved from Fort Smith to Fayetteville, at a cost of $39,900.
Furthermore, the remaining DBCS will be relocated to the Little Rock P&DC to support anotherAMP currently in process (Russellville to Little Rock). The cost of this is not calculated in thisAMP, as it is outside the scope of the project. However, the cost would be $7,980 to move thismachine.
The AFCS and UFSM are to be excessed, unless the Arkansas District can be allowed totransfer them to the Northeast Arkansas P&DF facility, which currently lacks an AFCS, and canuse another UFSM to process increasing flat volumes from a major mailer in their service area.The cost of these moves is not part of this package, and will need to be looked at separately.Depreciation costs have not been listed in this package due to this, as the Arkansas Districtdoes not wish to lose these machines.
Costs to Gaining site:Fayetteville P&DF has identified several one-time expenditures that will be necessary to makethe AMP feasible. The costs below are preliminary costs, and not firm bids, as of the time ofgeneration of this package:
1) Electrical: Improvement to power grid at NW Arkansas P&DF to accommodate 4 new DBCS.The current transformers cannot meet the needs of the increased equipment load. Totalestimated cost is $41,000.
Package Page 6 AMP Summary Narrative
Losing Facility Name and Type:Current 3D ZIP Code(s): 729
Miles to Gaining Facility: 59
Gaining Facility Name and Type: Northwest Arkansas (Fayetteville) P&DFCurrent 3D ZIP Code(s): 727
MAPLast Saved: April 26, 2011
Package Page 7 AMP MAP
24 Hour ClockLast Saved: April 26, 2011
Losing Facility Name and Type: Fort Smith CSMPCCurrent 3D ZIP Code(s): 729
Type of Distribution to Consolidate: Orig & Dest
Gaining Facility Name and Type: Northwest Arkansas (Fayetteville) P&DFCurrent 3D ZIP Code(s): 727
24 HourlndicatorReport 80% 100% 100% 100% Millions 100%0
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Package Page 8
rev 04/2/2008
AMP 24 Hour Clock
Stakeholders Notification(WorkBook Tab Notification - 1)Losing Facility: Fort Smith CSMPC
Last Saved: April 26, 2011 Stakeholder Notification Page 1
AMP Event: Start of Study
BLANCHE LINCOLN
STEPHANIE MALONE
STEVEN BREEDLOVE
C RAY BAKER JR_'< ••__, ~__u,,~_•.• • ~ + __,~,.__~ ,,~ ,._,__.,.,_o~
ction Code'" Column A 3·Dlgft ZIP Code Prefix Group
·Actlon Co~s: A=add O=delete CF-chsnge trom CT=:change to
lmR0rtant Note' Section 2 & 3 lUustrale possible changes to DMM labeling lists. Section 2 relates to COflsol«1atlon of DestinationOperations. Sectlon 3 pertalflS to Orlginating Operations. The Area Distribution Netwo/1o:: group will submit appropriate requests forDMM changes after AMP approval.
(2) DMM Labeling List LOO5 - 3-Diglt ZIP Code Prefix Groups - SCF Sortation
070-089,130-212,214-268,270-329,334-339,341,342, 344, 346, 347, 349-352, 354-418,420-427,430-516,520-528,530-532,534,535,537-551, 553-564, 566, 600-620, 622-631, 633-641, OMX FORT SMITH AR 729644-658,660-662,664-681,683-693,700,701, 703-708, 710-714, 716-731,733-741,743-767.770789,798-816,820,822-831,850-853,855-857,859,860, 863, 865, 870-875, 877-885
1. Affected FacilityFacility Name: Fort Smith CSMPC
Street Address: 3318 S 74th StreetCity, State ZIP: Fort Smith AR 72903
2. Lease Information. (If not leased skip to 3 below.)Enter annual lease cost: OWNED
Enter lease expiration date: ---7N:;..;/AF =---------------Enter lease options/terms: ...:....N"'/A...:.... _
3. Current Square FootageEnter the total interior square footage of the facility: -::,6""9,c:.03;::9'-- _
Enter gained square footage expected with the AMP: _
4,
5. Facility Costs
Enter any projected one-time facility costs: -..::$4:.=.:.,18:::.!,..;.19::.;8::-....,-_:-:-_-:---:::-----,,:.,..--;:-...,------,,-(This number shown below under One-Time Costs section.
6, Savings Information
Space Savings ($): _=:-:-_....,-_...,.....,~_,.,-.,..-=---:--."._---:'(This number carried forward to the Executive Summery)
7.
Employee Relocation Costs:
Mail Processing Equipment Relocation Costs: ---"$..;;.3..;;.9'-",90..::..:.0 _(from MPE Inventory)
Facility Costs: $418,198(from above)
Total One-Time Costs: $458,098(This number carried forward to Executive Summary)
Losing Facility: Fort Smith CSMPC Gaining Facility: Northwest Mansas (Fayetteville) P&DF
YTD Range of Report: __....:;10:::./0:.1:;.;!09~.:..:..:09.;::130=1.:.;10'-- _