May 4,2010 Mr. William Burrus President American Postal Workers Union (APWU), AFL-CIO 1300 L Street, NW Washington, DC 20005-4128 Dear Bill: Certified Mail Tracking Number: 70993400000905162520 This is to inform you of the Postal Service's decision to consolidate all originating mail processing operations at the following Southeast Area location: • Panama City, Florida Processing and Distribution Facility (P&DF) into Pensacola, Florida Processing and Distribution Center (P&DC) 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. 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 This consolidation 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 Ron Scott at (202) 268-7512. Sincerely, John W. Dock Manager Contract Administration Enclosure (CA2010-315)
49
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May 4,2010 President 70993400000905162520 American Postal ... · elimination oftrips 1 and 2 on HCR32433 andthe current service to Panama Cityon HCR 323HE, HCR328SE, HCR 32511 and
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May 4,2010
Mr. William BurrusPresidentAmerican Postal Workers
Union (APWU), AFL-CIO1300 L Street, NWWashington, DC 20005-4128
Dear Bill:
Certified Mail Tracking Number:70993400000905162520
This is to inform you of the Postal Service's decision to consolidate all originating mail processingoperations at the following Southeast Area location:
• Panama City, Florida Processing and Distribution Facility (P&DF) into Pensacola, FloridaProcessing and Distribution Center (P&DC)
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. Enclosed, per your requestis a copy of the completed study.
The Postal Service must continually look to improve productivity and increase efficiency whilemaintaining excellent service. The decline in mail volume and revenues due to the economicdownturn has only heightened the need for such improvements This consolidation will allow us toaccomplish this goal by making better use of excess space, staffing, and equipment, and toprocess mail more efficiently.
It is projected that this consolidation will result in significant savings for the Postal Service. Someaffected 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 Ron Scott at (202) 268-7512.
Sincerely,
John W. DockManagerContract Administration
Enclosure
(CA2010-315)
STEvEN J. FORTESENIOO VIOC. PRFSlflfNT
OP"~
~ UNITEDSTJjTESI!!'1iiM POSTJjL SERVICE
April 28, 2010
LINDA J. WELCH
SUBJECT: Panama City, Florida Originating - Area Mail Processing Proposal
A functional review of the Panama City, FL Area Mail Processing (AMP) proposal has beencompleted. The proposal recommends transferring all originating operations from the PanamaCity, FL Processing and Distribution Facility for ZIP Code 324 to the Pensacola, Fl Processingand Distribution Center. The proposal, which has a projected annual savings of $574,695, hasbeen approved.
The AMP must be implemented as approved. Ifchanges to the approved AMP are deemednecessary, please provide revised worksheets along with supporting justification and conc:urrencefrom the other managers approving the original proposal. All changes are to be reviewed andapproved prior to proceeding.
Please provide a timeline for the implementation of the consolidation of operations as outlined inHandbook P0-408, Area Mail Processing (AMP) Guidelines, within two weeks of this letter.
,If you have any questions orconeems, pleCise Rootaet Frank Ned, Manager, Processing Operations,at (2 268-5556.
. Forte
475 L'ENFANf PtNA SoN
WASHlNGra.I, cx.:; 20200-2700
202c268-5100
FAX.: 202-268-7509
WIWI.I.Jf:PS.COM
00: Mr. DonahoeMe VeglianteMs. DominguezMr. SmallMs. BetmanMs. KilletteMs. WeaverMr. NeriMs. MaloneMr. DookinsMs. HagamanMs. Moore
ACKNOWLEDGEMENT OF ACCOUNTABILITY· I acknowledge that I am accountable for respecting andsupporttng the Integrity of all official postalreporting systems, including flnandal reports and those relating to compliance with. coottacting; complement. or similar efiJ:>rts involVing the investment andexpenditure 01 funds. as well as all systems to service to our customers,
Printed Name
b.9SING FACILITY~
Postmaster or Plant Manager:
Eugene Green
Date
Date
I{
\
Printed Name
Linda J. WelchPrlnledName
Senior Plant Manager:Arthur A. Rosenberg
Prlt1l!ldName
District Manager:James A Nemec
Printed Name
Prtnle<1.Name
District Manager:James A Nemec
Senior Plant Manager:Arthur A. Rosenberg
Printed Name
!3AlNfNG fACILITY~
Plant Manager:Ethel M. King
AREA ICe"Arp:;l Vice President:
Implementation Date:
HEADQUARTERS:
Senior Vice President Operations:
Steven J. Forte
PackaQe Page 2 AMP Approval Signatures
Executive SummaryLast Saved: Apnl15,2010
Losing Facility Name and Type: Panama City P&DF
Street Address: 1336 Sherman Ave
City, State: Panama City, FL
Current 3D ZIP Code(s): 324
Type of Distribution to Consolidate: Originating Miles to Gaining Facility: 106
Non-MP CraftlEAS + Shared LDCs Workhour Savings (less MaintITrans) = $665 from Other Curr vs Prop------PCES/EAS Supervisory Workhour SaVings = $63,262 from Other Curr vs Prop
Transportation Savings = $149,455 from Transportation (HCR and PVSj
Maintenance Savings = $136,880 from Maintenance
Space Savings = $0 from Space Evaluation and Other Costs
Total Annual SaVings =
Total One-Time Costs = $0 from Space Evaluation and Other Costs---..;,;,.$574,695Total First Year Savings =-""""""........====
Staffing Positions
from Staffing - Craft8Craft Position Loss =--...;;;..---PCES/EAS Position Loss =__~__ from Staffing - PCESIEAS
Volume
Total FHP to be Transferred (Average Daily Volume) = 103,611 from Workhour Costs - Current
Current FHP at Gaining Facility (Average Daily Volume) = 1,210,468 from Workhour Costs - Current
Losing Facility Cancellation Volume (Average Daily Volume) = 85,937 (= Total TPH I Operating Days)---..:;...;..:..;...;...-
Service
Service Standard ImpactsbyADV
First-Class Mail®Priority Mail®
Package Services
Periodicals
Standard MailCode to destination 3-digit ZIP Code volume is not
available
ADV
N/A*
N/A*
oo8
ADV ADV %4,963 397,938 98.8%
97 6,903 98.6%
168 1,710 91.1%
N/A* N/A' N/A'
N/A' N/A' N/A*
Package Page 3 AMP Executive Summary
Summ.ary NarrativeLast Saved: April 15, 2010
Losing Facility Name and Type: Panama City P&DFCurrent 3D ZIP Code(s): 324
Type of Distribution to Consolidate: Originating
Gaining Facility Name and Type: Pensacola P&DCCurrent 3D ZIP Code s : 325
BACKGROUNDThis isa suin.n.1ary ofthefeasibility study for the consolidation of originating mailfrom the Panama City P&DF (ZIP 324) to the Pensacola P&DC (ZIP 325). Thisstudy was conducted to detennine the feasibility of relocating the originatingprocessing operations every day Monday through Saturday. Pensacola currentlyprocesses the Panama City originating mail on Saturdays only. For this study, thedestinating mail for Panama City will continue to be processed in Panama City. The24 - hour clock target of 80% cancellations by 2000 will be adversely affected by theAMP, as the last collections will not depart Panama City until 1930, arriving atPensacola 2205 or later.
CUSTOMER & SERVICE IMPACTSPensacola currently has an overnight EXFC score of97.36 and Panama City has97.97%. These excellent service scores will be adversely affected by the AMP. ThePanama City P&DF is approximately 106 miles from the Pensacola P&DC with atravel time of2 hours and 35 minutes. Service is adversely affected by the AMP asTallahassee (ZIP 323) and Dothan (ZIP 363) are overnight from Panama City andtwo-day from Pensacola. The distance between the Pensacola and Tallahassee plantsis approximately 120 miles and there is a change from Central to Eastern Timezones.
Panama City's originating volume (excluding manual letters) will achieve processingfinalization no later than 2330 and be available for dispatch at 2345. With thisdeparture time, the overnight Panama City volumes for Tallahassee will arrive at theTallahassee P&DF at 0435 due to the distance and time zone change. The currentovernight DOV from Pensacola to Panama City departs at 0001, with an arrival timein Panama City of 0235. It is noted that the AMP will result in an increase in theamount of mail arriving on this trip that is committed to overnight delivery. Theproposed departure time to Dothan is 0030, with an arrival time of 0340. These latearriving volumes will be received as 3-digit for Dothan and Panama City requiring indepth sortation and processing. At this time, the letter mail will not be processed inDPS and will only be processed on carrier route which will adversely affect DPSpercentages in Panama City (324), Tallahassee (323) and Dothan (363). The flatvolume after SCF processing will be dispatched to the delivery units as working mailrequiring additional Function 4 work hours which will adversely affect the new 24hour clock target of 100% flats cleared by 05 :00 and will result to delivery unitsreceiving flats on their last transportation.
RETAILAND BUSINESS MAIL ENTRY UNIT CBMEU) IMPACTSThere will be no change to the retail or BMEU operations connected with this AMPstudy. There will be no changes to local mail collection box pick-up times andmailers will still be able to deposit their mail through the Panama City BMEU aspresently done. A local Panama City postmark will be available at the retail unit anda wall drop box at the Panama City P&DF.
Package Page 4 AMP Summary Narrative
Summary Narrative (continued)
Summary Narrative Page 2
EMPLOYEE Th1PACTSIf this AMP is approved there is an estimated net reduction of 8 craft positions and 1management position. Currently Panama City is authorized for 9 managementpositions and 8 of these are filled. While the number on-rolls and proposed numberof management persons are the same, 1 of the 9 positions will be reduced. The PostalService ensures that its standard practices comply with the Worker Adjustment andRetraining Notification (WARN) Act. .
, Craft =FTR+PTR+PTF+Casuals
SDOs to Craft 1
(1 :25 target)
1: 17
1 : 26
MDOs+SDOs to Craft 1
(1 :22 target)
1 : 171: 23
SDOs to Craft 1
(1 :25 target)
f: 22
1 : 27
MDOs+SDOs to Craft 1
(1 :22 target)
1: 22
1 : 23
, Craft =FTR+PTR+PTF+Casuals
2 Craft = F1 + F4 at Losing; F1 only at Gaining
TRANSPORTATIONTransportation supporting both the Panama City P&DF and the Pensacola P&DC isexclusively HCR facility with no PVS service. In the study itwas determined thatthere would be a transportation savings of $149,455. The savings result byelimination of trips 1 and 2 on HCR 32433 and the current service to Panama City onHCR 323HE, HCR 328SE, HCR 32511 and restructuring ofHCR 32512. In ordertransport the 324 (panama City, FI) volumes to 323 (Tallahassee, FL) and 363(Dothan, AL), new service from 325 will be added The new service required isdesigned as shown on the transportation schedules to serve a dual purpose - transportthe overnight volume from 325 to 323 and 363, as well as to transport collection mailfrom four of the 324 associate offices along the line of travel (Chipley 32428,Bonifay 32425, Marianna 32446, and Defuniak Springs 32433) directly to thePensacola P&DC in order to improve the arrival profile of the 324 collectionvolumes. It should be noted that the arrival time of the 324 volume at 323 isadversely affected by the change from Central Time to Eastern Time that occurs.With the service constraints associated to the AMP study, these transportationchanges will not guarantee the current service performance from Panama City toTallahassee and Panama City to Dothan.
DARJEXPANSION OR RENOVATIONThere are no expansion or renovation projects or expenses associated with this AMPstudy. The Panama City facility and the land that it occupies are currently owned bythe USPS. This facility does not have any leases associated with it.
EQUIPMENT RELOCATION and MAINTENANCE IMPACTSThere will be no equipment move in Panama City associated with this AMP study.
FINANCIAL JUSTIFICATIONAnnual baseline data came from October 2008- September 2009. Financial savingsproposed for the consolidation of originating operations into these facilities are:
Total First Year SavingsTotal Annual Savings
$574,695$574,695
SUMMARYThe consolidation of originating mail from the Panama City P&DF to the PensacolaP&DC (AMP) will save the United States Postal Service approximately $498,898per year if approved. With the approved AMP, the 24-hour clock goal of 80%cancellation by 2000 in Pensacola, DPS percentages, DPS cleared by 0600 and flatscleared by 0500 in 324,323 and 363 will be adversely affected causing degradationin service to the customers. Moving the mail from Panama City (324) to Pensacola(325) will require the service standards from Panama City (324) to Tallahassee (323)and Panama City (324) to Dothan (363) to be downgraded from an overnight servicecommitment to a two-day service commitment.
Package Page 6 AMP Summary Narrative
24 Hour ClockLast Saved: April 15,2010
Losing Facility Name and Type: Panama City P&DFCurrent 3D ZIP Code(s): 324
Type of Distribution to Consolidate: Originating
Gaining Facility Name and Type: Pensacola P&DCCurrent 3D ZIPC()de(s): 325
24 Hour Indicator Re ort 80% 100% 100% 100% Millions 100% 100% 86.9%
~~ ~~ !I ~~ hi ~~ ~~,F
~ 1l~ E~ E~ dr~ ]~ ~~~ lj Ii" I" I"
i~j ~j ~j~J §I ~I! .- ~ J ! ~~ ~s~
Package Page 7 AMP 24 Hour Clock
Losing Facility Name and Type: Panama City P&DFCurrent 3D ZIP Code(s): 324
Miles to Gaining Facility: 106
Gaining Facility Name and Type: Pensacola P&DCCurrent3b ZIP Code(s): 325
MAPLast Saved: April 15. 2010
Package Page 8 AMP MAP
Service Standard ImpactsLast Saved: April 15, 2010
Losing Facility: Panama City P&DF
Losing Facility 3D ZIP Code(s): 324-::-:--=-----------------------------Gaining Facility 3D ZIP Code(s): 325-------------------------------4/13/2010Based on report prepared by Network Integration SU!"l!"l0rt n::lted'
_--.:.:...:....:..:..:::..;,.,.,;,..~-
(1) .ml''4l1SW3U'·p'·"m''Ft,[T'Ii .._FCM PRJ PER sm PSVC All CLASSES
Overnight % Change All Others % Change Total % Change All % Change All % Change All % Change All % Change All % Change
same stakeholders notified as start of study(Numoer Conlacled)
Package Page 13
(Usl Filename & Location)12/29/2010Date
AMP Stakeholders Notification
Workhour Costs - CurrentLast Saved: April 19.2010
Losing Facility: Panama City P&DF Gaining Facility: Pensacola P&DC
Gaining Current Workhour Rate by LOC
uxFunction 1
U>CFunction 4
11 $44.31 41 $0.00
12 $45.11 42 $0.00
13 $41.49 43 $38.37
14 $40.47 44 $36.01
15 $36.90 4S $49.28
16 $0.00 45 $0.00
11 $38.25 41 $0.00
15 $40.25 45 $33.84
10/01/08 «=lIJ:: :.._» 09/30/09
Losing Current Workhour Rate by LOe
Function 1 Function 4c U>C
1 $36.52 41 $0.00
2 $44.20 42 $0.00
3 $45.56 43 $0.00
4 $39.62 44 $34.43
5 $0.00 45 $36.63
5 $0.00 46 $0.00
1 $37.31 41 $0.00
5 $39.30 45 $32.80
Date Range of Data·
U>C
(1) (2) (3) (4) (5) (6) (7) (8) (9) (lor-- --
(11) (12) (13)-"'" (14)Current
% Moved to Cu.....nt Current Current Current Current Current Current Current Current Current CurrentOperation Annual FHP Annual TPH or Annual Productivity Annual Operation % Moved to
AnnualFHP Annual TPH or Annual Productlvlty AnnualNumbera Gaining
Volume NATPH Volume Workhours (TPH or NATPHI Workhour Costs Numbers LosingVolume NATPH Volume Wor1choura (TPH or NATPHI W<>rkhour Coata
PVS Transportation Savings (Losing Facility): I $0 I PVS Transportation Savings (Gaining Facility): I $0 ITotal PVS Transportation Savings: $0 «== (This number is summed with Total from 'Trans-HCR' and carried forward to the
Executive Summary as Transportation Savings)
(7)Notes: Neither facility has PVS service. Both are HCR serviced facilities.
Package Page 39 AMP Transportation - PVS
Losing Facility: Panama City P&DF
Transportation - HeRLast Saved: April 15, 2010
Gaining Facility: Pensacola P&DC
Type of Distribution to Consolidate: Originating_-:.._-------------Data Extraction Date: 10/12/09
CET for cancellations: 20:05 CET for OGP: 22:05
CT for Outbound Dock: 3:15
1 2 3 4 5 6 7Current Current Current Proposed Proposed Proposed
Total HeR Transportation Savings: $149,455 «== (This number is summed with Total from 'Trans-PVS' and carried forwardto the Executive Summary as Transportation Savings)
Package Page 42 AMP Transportation - HeR
Distribution ChangesLast Saved: April 15, 2010
Losing Facility: Panama City P&DFType of Distribution to Consolidate:...:O""n;>;·g"'in.;;:a;.:;ti""ng"- _
(1)
Indicate each DMM labeling list affected by placingan ·x· to the left of the list.
If revisions to DMM L005 or DMM L201 are needed, indicateproposedDMM label chanlle below.
(2)IDMM Labeling List L005 - 3-Dlgit ZIP Code Prefix Groups· SCF Sortation
Important NoI!' Section 2 & 3 Ilustrete po..ible menges to DMM IBbeling lI.ts. Section 2rolet.. to oonaolldetion of DestinetionOp....tlollll. Section 3 pertslna to Origln.Ung Operatiollll. The Ares DlBtrlbution Networl< group wMI.ubmlt .pproprlate requests forDMM chang.. eft.. AMP approval.
Action Code' IColumn A· 3-Dig~ ZIP Code Prefix Group
To:
Action Code' IColumn A• 3-Dlon ZIP Code Prefix Group
"ACtion Cod..: A"add O-do!ete CF..chtI~ from CTachange to
Column B - Labef to
Column B- Label to
CF 1325
Column B - 3-Dkln ZIP Code D..Unotlona005,070-089, 100-119, 124-127, 140-212,214-268,270-284,287-342,344,346,347,349-352,354-418,420-427,430-509,20-528,530-532,534,535,537-539,541-545,549,600-620,2-631,633-641,644-658,680-662,664-668,700,701,703-708,
Data Extraction Date· ---_.:..::.:..:....:.:.;::..:::.-_---
(1) (2) (3)
EquipmentCurrent Proposed
DifferenceType
Number Number
AFCS 2 0 (2)
AFSM -ALL 0 0 0
APPS 0 0 0
ClOSS 0 0 0
CSBCS 0 0 0
DBCS 4 4 0
DBCS-OSS 0 0 0
DIOSS 1 1 0
FSS 0 0 0
SPBS 0 0 0UFSM 0 0 0
FC I MICRO MARK 0 0 0
ROBOT GANTRY 0 0 0
HSTSI HSUS 0 0 0
LCTSI LCUS 0 0 0
LIPS 0 0 0
MLOCR-ISS 0 0 0
MPBCS-OSS 0 0 0
TABBER 0 0 0
POWEREDINDUSTRIAL 0 0 0EQUIPMENT
(4) (5) (6) (7) (8)
EquipmentCurrent Proposed
DifferenceExcess Relocation
TypeNumber Number Equipment Costs
AFCS 3 3 0 (2)
AFSM 100 1 1 0 0
APPS 0 0 0 0
ClOSS 2 2 0 0
CSBCS 0 0 0 0
DBCS 7 7 0 0
DBCS-OSS 0 0 0 0
DIOSS 1 1 0 0
FSS 0 0 0 0
SPBS 1 1 0 0UFSM 0 0 0 0
FC I MICRO MARK 0 0 0 0
ROBOT GANTRY 0 0 0 0
HSTSI HSUS 0 0 0 0
LCTS I LCUS 1 1 0 0
LIPS 0 0 0 0
MLOCR-ISS 0 0 0 0
MPBCS-OSS 0 0 0 0
TABBER 0 0 0 0
POWEREpINDUSTRIAL 0 0 0 0EQUIPMENT
Mail Processing Equipment Relocation Costs from losing to Gaining Facility: $0 (This number is carried forward to Space Evaluation and
Other Costs)
(9) Notes: No equipment will be moved.
Package Page 44 AMP MPE Inventory
Customer Service Issueslast Saved: April 15. 2010
Losing Facility: Ranama City P&DF
5-Dlglt ZIP Code:-:3.::;240.=.:1 _Data Extraction Date:--:1.::0:.:/1.::6/:.;:O.::.9 _
1. Collection Points
N"mWp~.'"~~ 'pm I 32 I "I I I I I I I"":::~~=~:,:,. ~: ,E. 00.. o. 0 0: 0
2. How many collection boxes are designated for "local delivery"? [-- () J
3. How many "local delivery" boxes will be removed as a result of AMP? ,- - 0 I
4. Delivery Performance Report
QuarterlFY P$fC8flt
% Carriers relumlnQ before 5 p.m. 04 FY09 91.7%
03 FY 09 ~4.5%
02 FY09 95.7%
01 FY 09 94.6%
5. Retail Unit Inside Losing Facility (Window Service Times) 6. Business (Bulk) Mall Acceptance Hours
End
17:30
17:30
17:30
17:30
17:30
Start
11:00
11:00
11:00
11:00
11:00
CLOSED
Start EndMonday 11:00 17:30
Tuesdal 11:00 17:30
Wednesday 11:00 17:30
Thursda 11:00 17:30
Friday 11:00 17:30
saturday CLOSED
start End Start End
y 9:00 17:30 9:00 17:30
y 9:00,
17:30 9:00 17:30
y 9:00 17:30 9:00 17:30
v 9:00 17:30 9:00 17:30
v 9:00 17:30 9:00 17:30
v 9:00 12:30 9:00 12:30
Monda
Tuesda
Wednesda
Thursda
Frida
Saturda
7. Can customers obtain a local postmark in accordance with applicable policies in the Postal Operations Manual? YES
8. Notes: There will be no change to the retail or BMEU operations connected with this AMP study. A local Panama City postmark will be availableat the retail unit and a wall drop box at the Panama City P&DF.
Gaining Facility: Pensacola P&DC
9. What postmark will be printed on collection mall?
Line 1 Pensacola P&DC 325
Line 2 _
Package Page 45 AMP Customer Service Issues
Space Evaluation and Other Costs
Last Saved: April 15, 2010
Losing Facility: Panama City P&DF
1, Affected FacilityFacility Name Panama City P&DF
Street Address: 1336 Sherman AveCity, State ZIP: Panama City. FL 32412-9998
2. Lease Information. (If not leased skip to 3 below.)Enter annual lease cost $0
Enter lease expiration date--"n"'-a---------------Enter lease options/terms-.:.:n;;:.a _
3. Current Square FootageEnter the total interior square footage ofthe facili~-;1~1""73~9:.:::6..::s:;i9:..:.ft.::,. _
Enter gained square footage expected with the AMF~1.:::.5.:.;79::-s:::;9l:-' .:.:;fl.:..- _
4. Planned use for acquired space from approved,AM1If AMP is approved. the expected gain of 1.579s9. ft. will be utilized for MTE processin
5. Facility Costs
Enter any projected one-time facility costs,:...:..:±$~O-,. -,-__(This number 'Shown below under One-Time Costs section.
6. Savings Information
Space Savings ($):......::;$""'0 ---,-.--(This number carried forward to the Executive Summary)
7. Notes _
Employee Relocation Costs: ......:::$",-0 _
Mail Processing Equipment Relocation Costs: --::$~O _(from MPE Inventory)
Facility Costs: ~$::::O _(from above)
Total One-Time Costs: $0-::(Th~:':'ls:-nu~m~be-r:-ca~rrled=':'"forw...... ard to Executive Summary)
Losing Facility: Panama City P&DF Gaining Facility: .PensacolaP&DC