nay-.Lu"t::vu. V.,);lfO tTl U;:)t';:) " wasmngwn, uc tHUJ LUL"LOts"/4YU lABoR RELATIONS 2/47 UlVITEOSTA.TES POSTA.L SERVICE May 16, 2012 Mr. Cliff Guffey President American Postal Workers Union (APWU), AFL·CIO 1300 L Street, NW Washington. DC 20005-4128 Dear Cliff: Certlfled Mall Tracking Number: 70113600000132591545 Fax: (202) 842-4297 This is to inform you of the Postal SelVice's decision to consolidate originating and destinating mail processIng operations at the following GrElat Lakes Area location: • Rockford, illinois Processing & Distribution Center (P&DC) originating operations into the Carol Stream, Illinois P&DC. • Rockford, Illinois Processing & Distribution Center (P&DC) destinating operations into the Palatine, Illinois P&DC After review, it was decided that this consolidation Is In the best Interest of the Postal Service. Consolidation of the originating operations: Is expected to be completed by August 2012. Consolidation of destinating operations will occur after consolidation activities resume in January 2013. 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 decllna In mall 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 mall more efficiently. We have redacted information from the study in accordance with our standard practice. We have also redacted mailer names, companies. and titles that were notified of the study. The mailer names, companies, and titles do not appear to be relevant to the UnIon's representational responsibilities. Volume numbers associated with service standard changes have also been redacted. This data is commercially sensitive and could be advantageous to our competitors. In order to protect market share, the Postal Service must protect the confidentiality of this information. It is projected that this consolidation will result In slgnlflcant saVings for the Postal Service. Some affected career employees may be reassigned to other vacant positions. Reassignments will be made in accordance with the collective bargaining agreement. If you have questions, or need additlonallnformatlon, please contact Rickey Dean at extension 7412. Sincerely, Patrick Manager Contract Administration (APWU) Enclosure 475 L·ENFAt.T PLAZA SW WASHIN<;lTQN DO 20260-4101 WMN.USPB.OOM (CA2012-339)
89
Embed
nay-.Lut::vu. V.,);lfO tTl U;:)t';:) tHUJ LULLOts/4YU 2/47 · Current 30ZIP Code(s): 601, 603 Background: The Rockford, IL P&DC is a postal owned facility that processes originating
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
This is to inform you of the Postal SelVice's decision to consolidate originating and destinating mailprocessIng operations at the following GrElat Lakes Area location:
• Rockford, illinois Processing & Distribution Center (P&DC) originating operations into theCarol Stream, Illinois P&DC.
• Rockford, Illinois Processing & Distribution Center (P&DC) destinating operations into thePalatine, Illinois P&DC
After review, it was decided that this consolidation Is In the best Interest of the Postal Service.Consolidation of the originating operations: Is expected to be completed by August 2012. Consolidationof destinating operations will occur after consolidation activities resume in January 2013. Enclosed. peryour request, is a copy of the completed stUdy.
The Postal Service must continually look to Improve productivity and Increase efficiency whilemaintaining excellent service. The decllna In mall volume and revenues due to the economic downturnhas only heightened the need for such Improvements. These consolidations will allow US toaccomplish this goal by making better use of excess space, staffing, and eqUipment, and to processmall more efficiently.
We have redacted information from the study in accordance with our standard practice. We have alsoredacted mailer names, companies. and titles that were notified of the study. The mailer names,companies, and titles do not appear to be relevant to the UnIon's representational responsibilities.Volume numbers associated with service standard changes have also been redacted. This data iscommercially sensitive and could be advantageous to our competitors. In order to protect marketshare, the Postal Service must protect the confidentiality of this information.
It is projected that this consolidation will result In slgnlflcant saVings for the Postal Service. Someaffected career employees may be reassigned to other vacant positions. Reassignments will be madein accordance with the collective bargaining agreement.
If you have questions, or need additlonallnformatlon, please contact Rickey Dean at extension 7412.
Sincerely,
~PatrickManagerContract Administration (APWU)
Enclosure
475 L·ENFAt.T PLAZA SWWASHIN<;lTQN DO 20260-4101WMN.USPB.OOM
Executive SummaryLosing Facility Name and Type: Rockford P&DC
Street Addl'GR: 5226 Harrison AveCity. state; Rockford, IL
Current 3D ZIP COde(6): 610.611
Type of Distribution to Consolldzt9; Originating to Carol stream. Destlnatlng to PalatineMiles to Gaining Facility: 59.8 to Carol Stream. S8.e to PalatIne
Gaining Facility Name and Type: Carol Stream P&DC and Palatine P&DC
Current 3D ZIP Cod8(s): Carol stream 801, 603; Palatine 600, 802
Losing Facility Name and Type: Rockford IL P&DCCurrent 3D ZIP Code(s): 610, 611
Type of Distribution to Consolidate: Originating
Gaining Facility Name and Type: Carol Stream IL P&DCCurrent 30 ZIP Code(s): 601, 603
Background:
The Rockford, IL P&DC is a postal owned facility that processes originating anddestinating volumes for service area 610-611. It is approximately 58 miles west of thePalatine, fL P&DC and 60 miles northwest of the Carol Stream plant.
The Lakeland WI and Central IL Performance Clusters completed an Area Mail Processing(AMP) study to determine the feasibility of relocating all originating and destinatlng letterand flat mail processing and distribution operations, and all 2C and 3C bundle preparationfrom the Rockford IL P&DC. The AMP would transfer mall processing operations for ZIPCodes 610-611 into the Carol Stream, lL P&DC end the Palatine, IL P&DC.
Along with processing operations, the buildIng houses a retail operation. a box section,delivery unit with 27 carriers, and a Business Mail Entry Unit (BMEU). The retail operation,box section, delivery unit, and the BMEU will remain. There is a VMF and PVS operationswhich will also remain. Express and tumaround Priority distribution will continue to beprocessed at the Rockford IL P&DC.
Originating and cancellation volumes will be sent to the Carol Stream P&DC forprocessing. Destlnatlng volume, IncludIng 2C and 3C bundles will be processed at thePalatine IL P&DC. Priority originating volumes from Rockford are currently processed atthe Chioago Metro Surface Hub, this process will continue. Rockford destlnatlng Priorityvolumes and first class SPRs will be processed at the Chicago NDC.
Currently there is a successful Saturday AMP in place for Rockford IL P&DC volumes togo to the Carol Stream IL P&DC. This practice will discontInue if the current AMPproposal Is approved.
fil1anclal Summary:Financial savings proposed for this consolidation of originating and destinating operationsare:
//4/
Total First Year SavingsTotal Annual Savings
$9,387,199$10.466,202
The total first handled pieces (FHP) to be transferred (Average Dally Volume) Is 1,027,102pieces.
Customer Service Considerations:Single piece First-Class Mail (FCM) has declined 36 percent in the past five years, andnearly 50 percent In the past 10 years. This decline has created a substantial amount ofexcess capacity.
There are no plans at this time to sell the Rockford IL facility and therefore no site hasbeen designated as a transportation hub. If necessary in the future, Janesville WI may beconsidered as a transportation and dispatch hub. This facility is 34 miles from theRockford plant. The BMEU and retail operations would be targeted within a 5 mile radiusof the current facility. The collection bOiCes times will not be impacted with this
The BMEU located at 5225 Harrison Ave will have no change to its hours of operation,currently closing at 1730. The two bulk mail teehs and one clerk wlll remain and the workhours will continue to charge to finance number 166774 (BMEUJRetail finance number).The Retail UnIt will remain without any change to its hours of operatIon, currently closingat 1900. The collection boxes in front of the Rockford P&DC will not be changed. TheRetail Unit and the 8MEU have the same finance number (166774), which is different fromthe mall processing finance number (166776).
Specific service standard changes associated With this Area Mall Processing consolidationare contIngent upon the resolution of both (a) the rulemaking in which current marketdominant product service standards in 39 CFR Part 121 are being evaluated, and (b) allremaining AMP consolidation proposals that are part of the same network rationalizationinitiative. A complete file reflecting any new service standards will be published atWWW.usps.com once all of the related AMP decisions that provide the foundation for newservice standards are made. Priority and Express Mail service standards will be basedupon the capability of the network.
Transportation Changes:Rockford P&DC will continue to be used III transportation dispatch and consolidation hubas well as for Priority and Express break up operatIons. All collection trips that currently goto the Rockford P&DC will continue, however the collection mail will be consolidated at theRockford P&DC with letter and flats going to the Carol Stream P&DC.
Collection mall will be transported to Carol Stream on HCR 601 L5. MTE: is transported tothe facility on 601 BK
Parcels within the collection mall will be consolidated at the Rockford P&DC and betransported to the Chicago NDC or Bussa, on existing modified transportation, trip 61 OMS.HCR 81010 will take 5 digited mail back from Busse to Rockford, interim plans are forBusse to continue the 3C breakup for Rockford as this product is phased into the Palatinefacility. Originating Express will continue to go to IPR on trip 61020.
The destinating volumes for Palatine will travel to and from the facility on HCR 600M3.
A review of transportation showed the opportunity for savings by elimination of Rockfordtrip HCR61013 which currently carries Express mail. This volume will be moved toHCR606M1. In addition, HCR 61 OL4, which had been utilized as an advanced collectionmail trip for Rockford is also no longer needed as collection mail will be going to the CarolStream P&DC.
This proposal entails no change to Associate Office collection dIspatch times with a CETof 1930 and a CT of 2000. The split packages show an annual transportation savings of$314,794 for Rockford P&DC to Carol Stream P&DC and $7,148 for the Rockford P&DCto Palatine P&DC. Total combined annual transportation savIngs Is $321,942, all which Isin Highway Contract Routes (HCR).
Staffing Impacts:Movement of mall will have an impact on staffing and will requIre movement of personnel.Craft employees currently total iSS at the Rockford P&DC. A total of 115 Function 1 craftpositions at the Rockford P&DC will be affected by the implementation of the AMP with anincrease of 4 FTE Function 1 craft positions at the Carol Stream P&DC and an Increase of53 FTE: craft pos/tfons at the Palatine P&I)C.
40 FTE Function 38 positions as well as 1 FTE Function 3A position as the RockfordP&DC will be impacted by the AMP. The Carol Stream P&DC will add no FTE's andPalatine P&De would decrease by 8 FTE Function 38 positions due to NetworkOptimization. This is a net decrease of 48 FTE in Function 38 In MaIntenance and 1 FTEin Function 3A Vehicle Services.
The net change to all craft staffing is a reduction of 110 positions.
The proposed AMP craft staffing at the Palatine P&OC will support 28 SOO positions and6 MOO positions to bring tl1e proposed EAS staffing there to 67. The elimination of 14 EASposItions at the Rockford P&DC would result in an overall Joss of nine EAS posItrons. Dueto on rolls staffing in Palatine being below complement the EAS package will be submittedto the Great Lakes Area for review.
As a matter of policy, the Postal Service follows the Worker Adjustment and RetrainingNotlflcatlon Act's ("WARN") notification requirements when the number of employeesexperiencing an employment loss within the meaning of WARN would trigger WARN'srequirements. Some or ell of the impacted employees described above may notexperience an employment loss within the meaning of WARN due to transfers orreassignments.
9/47
Rockford IL.
Carol Stream ILPalatine IL
SOOs to Craft 1
(1:25 target)
1: 221 ; 291 : 27
MOOs+SOOs !Xl Craft 1
(1 :22 target)
1 : 191 : 241: 23
SOOs to Craft 1
(1 :25 target)
NotA lie1 : 291: 26
MDOs+SDOa 10 Craft 1
(1 :22 target)
NotA lie1: 251: 22
1 Craft '" FTR+PTRtPTF+C$euEile2 Craft • F1 ... F4 at Losing; F1 only at GainIng
J;gulpment R.j.AAatlon aq" Malott"'",,,. ImPJ.etsiOriginating letter mail i", cancelled in Rockford by two (2) Advanced Facer CancellerSystem (AFCS) with an average daily volume of 168,410 pieces, These machines will nolonger be needed at either facility and will be tarped and disposed of following all postalregUlatIons.
One APSS and one DIOSS will be relocated to the Palatine P&De from another site to bedetennined by the Great Lakes Area.
A total of 11 DSCS will be removed from the Palatine P&DC due to Network Optimization,these costs are not part of the AMP package, All other exoess equipment from theRockford P&DC will be disposed of following all headquarters and area protocols,
Total annual Maintenance savings Is $3,870,953 from the combined packages of whioh$95,457 is attributed to parts and materials.
Facility Costs for Carol Stream;One time costs for the Carol stream P&DC will total $9,560. This is the cost to swap toswap a DBGS for a DIOSS including transport costs. IV1 AFCS is needed for this volume,but the cost is included in the Cardi55 Collins AMP package and Is not reiterated here.
Facility Costs for Pali\tlne;The Palatine P&DC will Incur $111 ,4;~3 is for equipment relocation, which inclUdes themovement of six OBCS, one DIOSS, and one APBS from an undetermined location to thePalatine P&DC.
Additional costs for the Palatine P&DC include $150,000 for new equipment electricalrequirements, $40,000 for AP8S lift kit, $368,020 for in-house moves of an LCTS andmultiple DBCS to accommodate ill new Area approved OSL, $200,000 for the removal ofan Inspector breakout, $50,000 for the movement of the IPP conveyor, and another$150,000 for miscellaneous building modificatIons and operational moves. This constitutesthe total expected one time costs of ~;1,069.443.
Space Impacts:The dock area of the Rockford P&De will be utilized for the consolidation of collection anddIspatch malls and for the remaining BMEU and express mail originating and destinatingoperations. The current area in the Rockford P&DC housIng the retail unit, box section,and carrier operations will remain unchanged.
Remaining Operations in Rockford!.,;,The remaining Rockford P&DC oper.:rtlons wHi requIre 6 clerks and 12 mail handlers. Thehours will be transferred to F4 if delivery operations are consolidated into the facility,
Conolusion:The AMP proposal of originating mail volume from Rockford IL P&DC to Carol Stream ILP&De and destlnatlng volumes to Palatine IL P&De shows a net savings of 110 FTE. Thefirst year savings is $9,387,199 and includes a one time cost of $1,079,003. From thatpoint on, every following year will realize an annual savings of $10,466,202.
lU/4/
Package Page 7 AMP Summary Narrative
24 Hour ClockLast Saved: March 15,2012
Losing Facility Name and Type: Rockford IL P&DCCurrent 3D ZIP Code(s}: 610, 611
Type of Distribution to Consolldate~Originating
Gaining Facility Name and Type: Carol Stream IL P&DCCurrent 3D ZIP Code(s): 601,603
11/4/
24 Hour Indlc~tor Re ort 80% 100% 100% 100% Millions 100% 100% 86.9%0
~~12 0:: 0::o~ ~le
lo~°ffi
i!l 8@ ~8 lijU ~1I1 §::l:Bet:l~ ~~ I~ ~~
IF
~~ es~ o~~I .tw j~ !w ~ E1II
... a ~ II !~ 8£~"''' J~ ~j !i.!!~ -~ ~~ Ii ~Jl# ij8::>~~ l"llll if!£S~
ll.D
tam ::!!'"8~ ::!!I i ~ ~!
.. toi! 02j !Ii! ~!2j 0:ll: l5
Package Page 8 AMP 24 Hour Clock
MAPLa&l Sal/8Cl: MIlIdl15.20t2
losing FaciJity Name and Type: Rockford IL P&DeCurrent 3D ZIP Code(s): 610, 611
Miles to Gaining Facility: 59.8
Gaining Facility Name and Type: Carol stream IL P&OCClImlnt 3D ZIP Code(s): 601, 603
Service Standard ImpactsLast Saved: March 15, 2012
Losing Facility: Rockford IL P&DC
le,1'1<:I-
""<:(.,
Based on report prepared by Network. Integration Support dated: mmfddlyyyy
Losing FacUity 3D ZIP Code(s):..:;:6.:.,:10::.z,•..:;:6..:..11.:..- _Gaining Facility 3D ZIP Code(s): 601,603
UPGRADETotal I % CIlangeI AI
G
"""'l:3
c(J"'l(J
~l:llVI:::::l.....:::::l
(.QMo:::::l
DOWNGRADETOTAL
NET UP+NO CHNGVOWMETOTAL
?,-
E'-
... - Penodlcal and Standard mall ZIP Code to destinatIon 3-<1lQit ZlP Code voJume is not avaiJableSelected summary fields are transferred to the Executive Summaty
"c",""ex,
FCM
OvernIght I % ctlangeI All Others I% Change I Total I % Cllartge I AllUPGRADE
(l No Calc(l NoCale0 !'loCale0 NoCale0 NoCale0 NoCale0 No Calc0 NoCaie0 NoCaie0 NoCaie0 NoCaie0 No Calc0 No Calc0 NaCeIe0 No Calc:0 NaCeIe0 NoCaJc0 No Calc() No Calc0 NoC8lc() NoC8lc0 NoCslcf) NoGaIc{l No Calc(} No Calcfr NoGare0 No Calc0 No Calc0 NoCale0 NoCale0 NoCale0 No Calc0 NoCaie0 NoCele0 NoCaie0 No Calc0 No Calc0 No Calc0 NoCale0 NaCele0 NaCaIc0 NaCalc0 No Calc0 NoCak0 No Calc0 No Calc:0 No Calc:0 No Calc0 NoCaJc0 NoCaJc0 No Calc0 No Calc0 No Calc0 No Calc:a No Calc
[) NoCaJc{} NeCalc{} No Calc{} No Calc(J NoQllc0 No calc() NoCale() !'locale() !'loCale(} MoCale(] MoCale(} £\loCale(} NoCale0 NoCaie(} NoCaie0 rolo Calc0 ~Cale0 No Calc0 No Calc0 No Calc0 No Calc0 No Calc() No Calc() No Calc() NoCaJc() NoCaJc{} NoCaJc() No Calc{} NeCate{} NoQllc() NoCale(} NoCale(J NeCalc0 No Calc(] MOCale() MoCale() NoCale0 MoCale(} MoCsic0 Il1o Calc0 No Calc0 No CalcI) No Calc0 No Calc0 NaCaIc0 NoCBle0 NaCa1c0 No Calc0 NoCaJc0 No Calc0 No Calc{) No CalcQ NoCale() NoQllc0 NOCale
{} No Calc(} No Calc{l No Calc{l NoCa4c(J NeCBIe0 NeCBIe(} NoCa1c0 NoCaJc(} NoCaJc(} NoCaJc0 NoCaJc0 NoCaJc0 NoCak0 Noearc0 NoCak0 NoCak0 NoCaIc0 NoCaIc(} No calc(} NoQllc(} Nocarc(} NoQllc(} NoQllc0 No Calc0 NeCalc0 NoCale0 NeCale0 NoCale0 NoCale0 NeCale0 NoCale0 No Calc0 No Calc0 NoCaIe(} MoCale() MoCale() MoCalc() No Calc() No Calc() No Calc() No Cal,() No Calc[) No Calc() Noealc() Il1o Calc() Il1o Calc() No Calc() No Calc() Il1o Calc() No Calc0 No Calc() No Calc{} N'o Calc
0 Nocate1) Nocate0 Nocak:0 Noc.a1'Q0 Noc.a1'Q0 !\l0c.a1'Q0 !\loGale0 NaGafc0 No Gate0 No Gate0 MoGalc0 NaGate0 MoGalc0 MoGalc0 MoGale0 NaCaie0 NoGalc0 No Calc0 No Calc0 No Calc0 NoCsic0 No Calc0 No Calc0 HoCaic0 No Calc0 No Calc0 No Calc0 No Calc0 No Calc0 No Cal0 No Calc0 No Calc0 No Calc0 No Calc0 No Cal0 NoCa0 NoCa0 NoCa0 NoCa0 NoCa0 NoCele0 No Calc0 No Calc0 No Calc0 NoCele{) No Calc0 No Calc0 No Calc0 No Calc() No CalcI) No CalcI) No Calc0 No Calc() No Calc0 No Calc
Warlthoura ITPH 0(NAWIDQ I NoCslcQ I NoCaleQ f No Calc01 No Calc01 MoCalc01 NoCale01 NoCale01 NaCale01 NoCele01 NoCa1c01 No Calc01 NoCa1c01 NoCa1c01 NoCaJco I He Calc01 He CalcOJ No CIlIe01 No CalcOJ No Calc01 No Calc01 No Calc01 NoCalc01 NoCalc[) I NoCelc{} I NoCelc() I NoC8lc{} I No CareI) I NoCateor NoCale{} I NoCale{} I NoCale01 No Calc01 No Calc01 NoCale01 NaCale01 NaCele() I No Calc01 No Calco I f'fo Calc01 NoCaJc01 NoCa1c
(61f'I'opoMd
AnnllalWorldlour CoelB
VI (II) (9) (10] {11} f12/Proposed Proposed Propoeed ProPOoSed Proposed PropoMdOperation AnlUlalFHP AnnuallPH or Annual Pl'OductiYlty AnnllalNumbeB VoIllma NAlPH Vo!ume Woltllours Iffi'H orNATPHl Worlltlollr Com
0 f'fo Calc0 No Calc0 NoCal~
0 NcCa1c0 NoCa1c0 No Calc0 No Calc{} No Calc0: NoCaJc0 No Calc0 No Cafe0 NoC8lc0 No Gate0 NoCale0 NoCale0 NoCale0 NoCele0 f'fo Cal~
0 NoCal~
0 f'fo Celc0 No Calc0 NoCa1c0 NoCa1c0 No Calc1) No Calc{I NoCak{} No Calc0 No Calc{} No Calc0 No Cere0 No Cere0 NoCale0 NoCale0 No Calc0 NoCaie0 No Calc0 NoCllic0 No Calc0 NoCale0 HoCa1c0 No Calc
PVS Transportation Savings (losIng FacilIty): I $0 I PVS Transportation Savings (Gaining Faclrd:y):\ $0 ITotal PVS Transportatjon Savlngs~ $0 «={This number 18 summed with Total from Trans-HeR' and carrfed forward to lIIe
Executive Swnmaryas Transportatfon savings}
m Notes: HeR and PVS provided by GLA DNO.
Package Page 37~.", I -. . ~ ..
~~~;9:i·9ti;~~~f~";~~~~·,
AMP Transportation - PVS
~c......~......
'"""".I'.C....I'.
C.+::cc"'t:3
CU"'tU
:IEQl(fl
::::l.....::::l
~o::::l
t::(""
....~
'"c
r-.:cr-.:.r-.:Q0:.
,.-::IC"-
:3Q;
«.
14ProposedCost per
Mile
13ProposedAnnual
Cost
12ProposedAnnualMileage
CET for OGP:
CT for Outbound Dock:
$1.75
11CurrentCost per
Mile$179,901
10CumlOtAnnaalCost
45.4371 $82.061
623.8331 $1.762.888349,6151 $806.539
0331 $2,427.54320,381 f $40.732
268.1951 $587.750
617,2771 $1.685.162
265,3561 $539.590
599.860J $825.921
430.4781 $1,472,614
611,7881 $763,563
502,4541 $1,279,156
486.6591 $1,124.500
155.0061 $221,904159,8151 $139,949
1,454.8601 $2,179.845
1.129,5471 $441.069
2,603,9931 $3,608.666
1.126.9651 $1.540.528
9CurrentAnnualMileage
102.942
CET for cancellations:
61014A
601L3A
00539A
601331\
61J7NOA
8
6OaU1A
60111A
e01lSA.
530N9A
607M1A
6004M
601U1A
607M2A
601BKA
493M1A
601LiA
GI00M1A
600llA600L7A
160DA1A
RouteNumbers
7ProposedCost per
Transportation - HeRLast Saved: March 15, 2012
Gaining Facility: Carol Stream Il P&DC
6ProposedAnnual
$82,935$29.577
$,246,267
53.7651 $ 40.149
39,4891 $ 64.449
43,,2351 $ 7l>.699
102,1991 $ 155,,829
22.7231 $34.33331,9351 $00.215
61.5541 $54,38039.6121 $ 99.881l
44.n11 $76,126
losJng FacUlty: Rockford IL P&DC
1
160M1A 1 2,603,9931 $ 3,608,13(lfi
601 l.5A I 102,9421 $ 179,901
6101nA I 124,2731 $ 100,316
610131\ I 91,6391 $ 127,959
61014/\ I 45.4371 $ 82,061
610L3I\ I 43,3381 $ 118,895
610L4/\ I 76,2211 $ 13,124
B1OM1A I 66,481r$ 133,5:52
610108 I 2,1701 $ 2,886
eOW1A I 611,7881 $ 763,663
Type of Distribution to Consolidate: _O:...r..,:iQ::....in_at.:...::...in..:;9:....- _
Enter any projected one-time facility costs~:..;I;$:=O~==~~~~=~~=_:~~~.(This number shown below under One-'T1me Costs seoliOn.
e. Savings Information
Space l3avlngs ($):---::::-:--...,......-,....,..,e--....,...,....."....""':'""......,,-=--.(ThIB nllmberearnBd fOrNllrd to theExeevloW SummaI}')
7. NotesCost of eXt::lr;;ra~DI"rn'IO"rlS:<1!S:<771"'!0'l5B?'<C~S-:;6::':w-;::a=p7.w::nIl;n1bf:O':e~co=v;::;:e-;;;r~=::r:un=ar=er:;Nn07";l1Mr.eg=u;r.:lp:-=m=-:e::-;:n:rt-;;;re~a:rrllg=n=-.:m=e:=:t:---~---~-
--Employee Relocation Costs:
Mail Processing Equipment Relocation Costs: ....$.:;<9,1.::;6.:;<60:::..- _(from MPE Inventory)
Facility Costs: -:.$0::.- _(from above)
Total One:rime Costs: $9,650~(Thei$~nu;;';m~bt~r~ea~rr'::':ie~d":":fo"':'"tward toEx8CJJIiv. SUmm,ry)-
If/llf/
l.oBlng FacUlty: Rockfcrd IL P&OC
VTC RlInge of Report ~...-'..FY:..1~1__
(1) (2) (3)
(~urrant CostProduct Aeooclatea REC per 1,000
Images~~I'ij Wichita $$4.76
Flatto Wichita $32.32MRSCOA IMehfla NIA
PARS Redirects Wlchlta $40.33APPS Wlchlta N/A
Package Page 44
Gaining Facility: Carol Stream Il P&DO
(4) (aj (a)
Current CostProduct Associated REC per 1,000
Images
I.etters WichIta $34.7aFlaW. Wichita $32.32
PARSCOA Wichita NIAPA~S ~dlrectt; Wlehfta $40.33
APPS WIchIta N/A
AMP Space Evaluation and Other Costs
;U44
Type of Distribution to Consolidated DestinatingFacility Name & Type:! Rockford IL P&De
Street Address; I 5225 Harrison AveI
City:l RockfordI
State:l ILSO Facility ZIP Code:i 61125
Distriot:! LakelandArea:1 Great Lakes
Finance Number:! 166776Current 3D ZIP Code(s):! 610,611
Miles to Gaining Facility: I 58.6EXFC office:! Ves
Plant Manager:I Steve WebbSenIor Plant Manager:i Steven E. Wenzel
District Manager:, Charles J. MillerFacility Type after AMP;! Post Office
MODS/BPI Office
Faclllty Name & Type:!Street Address:1
City;IState:j
SO Facility ZIP COde:,District:l
Area:,Finance NlJmber:!
Current 3D ZIP Code(s):jI
EXFC offioe:1Plant Manager:i
SenIor Plant Manager: iDistrict Manager::
Palatine IL P&oe1300 E Northwest Hv.tyPalatineIL60095LakelandGreat Lakes166027600,602VesCharles A. SerurbaSteven E. WenzelCharles J. Miller
2/23/2012Jan-01-2011 : Dee-31-2011
Start of Study:Date Range of Data:
Processing Days per Year: 310Bargaining UnIt Hours per Year: 1,746
EAS Hours per Year: 1,820Oat£, of HQ memo, DAR Factors/Cost
Date & TIme this workbook was last saved: [ 31_2_7_/2_0_1_2_1_4_:44 ---...
Area Vice President:: Jacqueline Krage StrakoVice President, Network Operations:! David E. Williams
Area AMP Coordinator:! Nanoy SchoenbeckHQ AMP Coordinator:! Barbara Brewington
Package Page 1 AMP Data Entry Page
A{3proval Signatur.
AClUlQW\. GEM~TOF Ace. UJllViJtSlLJTY-lacltRQlllill1l:l!!la'tnllt1 am~~:tlr~I\0C$"" UleJl'Itllfln~ reporUI al'ltfll\o&e iEllJting III CI:lmpllallC8 ~'ccn\nlt:lmg. ~pl81'iiartt. or $imltsf'eIfOffStilVOlvUig:Ihe .~Iitld10 OOt ClllitOmat$ .
Datil
?-I'?-Ir-o"'e.
3 w lt./- ..IL..SenIor Platrt Man'ag'er:
MarKiovey
PmfEidlllema
Seolar Plant Manager:Steven E. WWal
fIiiiliili lUmBOmtrlot Maa-ager:
Chai'l~$ J MiIf$r
PoStma$t~i' or Plant Manager:
$ttNeWOOb
Pl)$~ror PlantNJM~er:Gregory W JorIDson
ftw&l N1ItI\R
ilriril~ Nan'tOOJstEf-zt itlarl*geJ'~
Pete.rAheo
Ares Vlee Presitlent:JacqLlolineKf8ge Straka
VlCa PrHtiil!n'f, Nlttwork ~f'ati(ll1S~
Davtd f:iNiIJI8MS
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Sumnnary NarrativeLast Saved: March 27, 2012
Losing Facility Name and Type: Rockford IL P&DCCurrent 3D ZIP Code(s): 610, 611
Type of Distribution to Consolidate: Destinating
.Galnlng Facility Name and Type: Palatine IL P&DCcurrent 3D ZIP Code s : 600, 602
Background:
The Rockford. IL P&DC is a postal owned facility that processes originating anddestinating volumes for service area 610-611. It is approximately 58 miles west of thePalatine, IL P&DC and 60 miles northwest of the Carol Stream plant.
The Lakeland WI and CentrallL Performance Clusters completed an Area Mail Processing(AMP) study to determine the feasibility of relocating all originating and destinating letterand flat mail processing and distribution operations, and all 2C and 3C bundle preparationfrom the Rockford IL P&DC. The AMP would transfer mail processing operations for ZIPCodes 610-611 into the Carol Stream. IL P&DC and the Palatine, IL P&DC.
Along with processing operations, the building houses a retail operation, a box section,delivery unit with 27 carriers, and a Business Mall entry Unit (BMEU). The retail operation,box section, delivery unit, and the BMEU will remain. There is a VMF and PVS operationswhich will also remain. Express and turnaround Priority distribution will continue to beprocessed at the Rockford lL P&DC.
Originating and cancellation volumes will be sent to the Carol Stream P&DC forprocessing. Destlnatlng volume, Including 2C and 3C bundles will be prooessed at thePalatine IL P&DC. Priority originating volumes from Rockford are currently processed atthe Chicago Metro Surface HUb, this process will continue. Rockford destinating Priorityvolumes and first class SPRs will be processed at the Chicago NDe.
Currently there Is a successful Saturday AMP in place for Rockford IL P&DC volumes togo to the Carol Stream IL P&DC. This practice will discontinue if the current AMPproposal is approved.
Financial Summary:Finanoial savings proposed for this consolidation of originating and destinating operationsare:
4/44
Total First Year SavingsTotal Annual Savings
$9,387,199$10,466,202
The total first handled pieces (FHP) to be transferred (Average Daily Volume) is 1.027,102pieces.
Customer Service Considerations:Single piece First-Class Mail (FCM) has declined 36 percent in the past five years, andnearly 60 percent in the past 10 years. This decline has created a substantial amount ofexcess capacity.
There are no plans at this tlme to sell the Rockford IL faCility and therefore no site hasbeen designated as a transportation hub. If necessary in the future, Janesville WI may beconsidered as a transportation and dispatch hub. This facility is 34 miles from theRockford plant. The BMEU and retail operations would be targeted within a 5 mile radiusof the ?urr~nt facility. The collection boxes times will not be impacted with this
The BMEU located at 5225 Harrison Ave will have no ohange to its hours of operation,currently closing at 1730. The two bulk mall techs and one clerk will remain and the workhours will continue to charge to finance number 166774 (BMEUlRetaii finanoe number).The Retail Unit will remain without any change to Its hours of operation, currently closingat 1900. The collection boxes in front of the Rockford P&DC wiH not be changed. TheRetail Unit and the BME:U have the same finance number (166774), which is different fromthe mail processing finance number (166776).
Specific service standard changes associated with this Area Mail Processing consolidationare contingent upon the resolutIon of both (s) the rulemaklng In which current marketdominant product service standards in 39 CFR Part 121 are being evaluated, and (b) allremaining AMP consolidation proposals that are part of the same network rationalizationlnltlatlve. A complete file reflecting any new service standards will be published atwww.usps.com once all of the related AMP decisions that provide the foundation for newservice standards are made. Priority and Express Mail service standards wlll be basedupon the capability of the network.
Transe,ortatlon Changesi,Rockford P&DC will continue to be used a transportation dIspatch and consolidation hubas well as for Priority and Express break up operations. All collection trips that currently goto the Rockford P&DC will continue, however the collection mail will be consolidated at theRockford P&DC with letter and flats going to the Carol Stream P&DC.
Collection mall will be transported to Carol Stream on HCR 601 L5. MTE is transported tothe facility on 601 BK.
Parcels within the collection mail will be consolidated at the Rockford P&DC and betransported to the Chicago NDC or Busse, on e)dsting modified transportation, trip 610MS.HCR 61010 will take 5 diglted mall back from Busse to Rockford, interim plans are forBusse to continue the 3C breakup for Rockford as this prodUct Is phased Into the Palatinefacility. Originating Express will continue to go tel IPR on trip 61020.
The destinating volumes for Palatine wlll travel to and from the facility on HCR 600M3.
A review of transportation showed the opportunity for savings by elimination of Rockfordtrip HCR61013 which currently carries Express mall. This volume will be moved toHCR606M1. In addition, HCR 610L4, which had been utilized as an advanced collectionmall trip for Rockford Is also no longer needed as collection mail will be going to the CarolStream P&DC.
This proposal entails no change to Associate Office colleotion dispatch times with a CETof 1930 and a CT of 2000. The spIlt packages show an annual transportation savings of$314,794 for Rockford P&DC to Carol Stream P&DC and $7,148 for the Rockford P&DCto PalatIne P&DC. Total combined annual transportation savings Is $321,942, all which isin Highway Contract Routes (HCR).
Staffing Impacts:Movement of mail will have an impact on staffing and wlll require movement of personnel.Craft employees currently tota/188 at the Rockford P&DC. A total of 115 Function 1 craftpositions at the Rockford P&DC will be affected by the implementation of the AMP with anIncrease of 4 FTE Function 1 craft positions at the Carol Stream P&DC and an increase of53 FTE craft posItions at the Palatine P&DC.
!)/44
Package Page 5 AMP Summary Narrative
l'lay- .LV"LVU VLL LO tTl U:)t':) " WaSnl ngwn. UL. lHU) ~U~"~b~"/4~U
Summary Narrative (oontinued)
40 FTE Function 3B positions as well as 1 FTE Function 3A position as the RockfordP&DC will be impacted by the AMP. The Carol Stream P&DC will add no FTE's andPalatine P&DC would decrease by 8 FTE Function 3B positions due to NetworkOptimization. This Is a net decrease of 48 FTE In Function 381n Maintenance and 1 FTEin Function 3A Vehicle Services.
The net change to all craft staffing is a reduction of 110 positions.
The proposed AMP oraft staffing at the Palatine P&DC will support 28 SDO positions and6 MDO positions to bring the proposed EAS staffing there to 67. The elimination of 14 EASpositions at the Rockford P&DC would result in an overall loss of nine EAS positions. Dueto on rolls staffing In Palatine being below complement the EAS package will be submittedto the Great Lakes Area for review.
As a matter of policy, the Postal Service follows the Worker Adjustment and RetrainingNotification Act's ("WARN") notification requirements when the number of employeesexperiencing an employment loss within the meaning of WARN would trigger WARN'sreQuirements. Some or all of the impacted employees described above may notexperience an employment loss within the meaning of WARN due to transfers orreassignments.
1.104 457
Summary Narrative Page 3
6/44
Rockford ILCarol Stream lL
Palatine Ii.
SDOs to Craft 1
(1:25 target)
1: 221 : 291 : 27
MoOs+SOOs to Craft 1
(1 :22 target)
1 : 191: 241: 23
SOOs to Craft 1
(1 :25 target)
NotA lie1 : 29
1 : 28
MDOs+SDOs to Craft 1
(1 :22 fa rget)
NotAp lie1 : 251 : 22
I Craft. FTR+PTR+PTF+08ll1ual$~ C1'$ft =F1 + F4 at LosIng; rf only at GaInIng
Equipment Relocation and Maintenance Impacts:Originating letter maills cancelled in Rockford by two (2) Advanced Facer CancellerSystem (AFCS) with an average dally volume of 168.410 pieces. These machines will nolonger be needed at either facility and will be tarped and disposed of following all postalregulations.
One APBS and one DIOSS will be relocated to tile Palatine P&DC from another site to bedetermined by the Great Lakes Area.
A total of 11 DSCS will be removed from the Palatine P&DC due to Network Optimization,these costs are not part of the AMP package. All other excess equipment from theRockford P&DC will be disposed of following all headquarters and area protocols.
Total annual Maintenance savings is $3,870,953 from the combined packages of which$95,457 Is attributed to parts and materials.
Facility Costs for CaroJ Stream;One time costs for the Carol Stream P&DC will total $9,560. This is the cost to swap toswap a DaCS for a DIOSS including transport costs. An AFeS Is needed for this volume,but the cost is included in the Cardiss Collins AMP package and is not reiterated here.
Facility Costs for Palatine:The Palatine P&DC will incur $111 ,423 is for equipment relocation, which Includes themovement of six DBCS, one DIOSS, and one APBS from an undetermined location to thePalatine P&DC.
Additional costs for the Palatine P&DC include $150,000 for new equipment electricalrequirements, $40,000 for AP8S 11ft kit, $368,020 for In-house moves of an LCTS andmultiple DSCS to accommodate a new Area approved OSl, $200,000 for the removal ofan Inspector breakout, $50,000 for the movement of the IPP conveyor, and another$150,000 for miscellaneous building modifications and operational moves. ThIs constitutesthe total expected one time costs of $1,069,443.
Space Impacts:The dock area of the Rockford P&DC will be utilized for the consolidation of collection anddispatch mails and for the remaining BMEU and express mall origInating and destinatingoperations. The current area in the Rockford P&DC housing the retafl unit, box section,and carrier operatIons wlll remain unchanged.
BemalnLne Operations in Rockford:The remainIng Rockford P&DC operations will require 6 clerks and 12 mall handlers. Thehours will be transferred to F41f delivery operations are consolidated into the facility.
Conclusion:The AMP proposal of originating mail volume from Rockford IL P&DC to Carol Stream ILP&DC and destinatlng volumes to Palatine IL P&DC shows a net savings of 110 FTE. Thefirst year savings is $9,387,199 and Inc~ludes a one time cost of $1,079,003. From thatpoint on, every following year will realize an annual savings of $1 0,466,202.
Package Page 7 AMP Summary Narrative
24 Hour ClockLast Saved: March 15,2012
L.osing Facility Name and Type: Rockford IL P&DCCurrent 3D ZIP Code(s): 610, 611
Type of Distribution to Consolidate: Destinating
Gaining Facility Name and Type: Palatine IL P&DCCurrent 3D ZIP Code(s): 600, 602
l!4 Hour Indicator Ita ort 80% 100% 100% Millions 100% 100% 11$.13%
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Package Page 8 AMP 24 Hour Clock
Losing Facility Name and Type: Rockford [L P&DCCurnmt 3D ZIP Code(s): 610, 611
Miles to Gainin9 Fsclllly: 58.6
Gaining Facility Name and Type: Palatine IL P&DCCur«mt 3D ZIP Code(s): 600, 602
Package Page 9
MAPlast S8IIBd; Mardi 15. 2012
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Service Standard ImpactsLast Saved: March 15, 2012
Losing Facility: Rockford IL P&DC
losing FacUlty 3D ZIP Code(s):.::6~10::..!•..::6...:..1..:...1 _Gaining Facility 3D ZIP Code(s):.::6~OO::..!•..::6;.;:;:02~ _
Based on report prepared by Network Integration Support dated: mmlddlyyyy
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UPGRADETotal I %Change I All
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DOWNGRADETOTAL
NET UP+NO CHNGVOLUME TOTAL
... - Periodical and standard mail origin 3-dfQit ZIP Code to destination 3-diQit ZIP Code volume is not availableSelected summary fields are transferred to ltIe Executive Summary
0 No tale0 Nocetc0 NoC8lc:0 NoC8lc() No Calc0 NoC8fc0 NoC8lcl) NoC8fc{) NoC8[cl) NoC8lc0 No Calc0 No Calc0 No Calc0 Nocarcl) NoCafcD NoCRk0 No Carr:l) No CalcD No Calc0 NoCsie0 No Calc0 No Calc0 NoCeIe0 NoCeIe0 No CIlIe0 NClClIIc0 NoCate0 NoC81lJ0 NoCa1cg JItoCa1c0 NoCa1~
0 MoCslc0 MoCslc0 HoCaic0 MoCaic0 MoCslcC MoCslc0 !'localeI) !'loCale0 NoCak:C No Calc0 No calc() NoCafc0 Nocakl) NoCak0 No Calc0 No Calc0 No Calc0 No Calc0 No Calc0 No Calc0 NoCele0 No CalcC !'lO'Cstc0 NGCBlc
0 No Calc0 No Gate() No Calc0 No Calc0 No Calc() No Calc0 No Calc0 No Calc() No Calc0 NaCalc() No Calc() NaCalc0 NaCeIe0 NaCalc() NaCeIe0 NaCeIe0 NaCaJc0 NoCaJc0 NaCeIe0 NaCak:0 NaCeIe0 H.oCaic0 NclCaIc0 NclCale0 NclCaIe0 NoCak0 NoCaIe0 NoCale0 NoCs0 NoCa
~"----~--0 NoCsI) NoCs0 NoCaieI) NoCale0 NoCsie
f......-.....-_ 0 No Gale0 No Calc0 No Calc0 NeGale() NaGale() No Gale4} NeCale() NeCalc0 NeCale{} NoCaleQ NOGa1e0 NoCarc{) No Calc0 No Calc() No Calc0 NaCalcI) No Calc0 No Calc() NaCeIe
0 NoCale0 No calc0 NoGare0 NoCale0 No Calc0 NoGaIc0 No Calc0 No Calc0 No Calc4) No Calc4) NoGalc0 No Calc4) No Calc0 NeCate0' NoCate0 No Calc{} No Calc{) NoCate(I NaCaIc{) NaCaIc(I No Calc() No Calc(I r«tCak() No Calc(I NoCakII No Calc0 1\10 Calc() 1\10 Calc0 1\10 Calc0 No Calc0 Noeale0 No Call0 No Calc0 MoCalt0 No Gale0 NoCale0 No Calc0 NoCale0 NoCaleI) NoCale0 No Calc0 No Calc0 No Gale0 No Calc0 No Calc0 NeCalc0 NoCale4) No Calc4) No Calc4) NeCate(l No Calc0' No Calc{) NeGalc{) NeGalc0 NoGalc
0 NoGalc0 NeCate0 NeCate4) NeCate4) NeCaic(l NaCaIc- 0 No Calcl) NGCalc{) No Calc(I No Calc() No Calc{) No Calc() Noeale() No Calc() MaCak0 MoCalc0 No Gale0 NoCale0 NoCale0 No Calc0 No Calc0 NeCalc0 No Calc4) NeCate4) NoCate4) NoCate4) No Calc0' NaCaIc-
No Calcl)
l) No Calcl) No Calc{) No Calc{) No Calc() No Call0 NaCale0 No Calc
~.0 No Gale0 No Calc- No Calc00 No Calc0 No Calc0 No Calc0 NeGalc4) NoCate0- No Calc(I No Calcl) No Calcl) NoCale{) No Calc{) No CalcII No Calc0 No Gale0 NoCale0 No Calc0 NoCale
PVS Transportation Savings (Gaining FacllltyJ:1 $0 IPVS Transportation Savings (Losing FaclHty}:1 $0 ITotal PVS Transportation Savings~ $0 <<== (This number is summed with Total from 'Trans-HeR' and carried forward to the
ExeculNe Summaryas Transportatfon Savings)
{7}Notes: HeR and PVS proVided by GLA DNO.
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Package Page 37 "- .. : AMP Transportation - PVS
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Gaining Facility: Palatine IL P&DC
Type of Distribution to Consolidate: Destinating-----=---------
Mail Process!ng Equipment Relocation Costs from Los!ng to Gaining Faei1ity: $111.423 (This Tll.IT1Der is canied' fOlWllrd to Space EvaIlJafion and
0111er Costs)
(9) Notes: $46,3ElO under DaGS I'llOVeS is for U1e retocEllion ofsix nacs from oll1erfacllitles, $8,000 under moss is far lI1e mOVE!lTl6l1t ofa moss from anolher fadli1y,
$55,003 is forlhe mOll'emeflt of an APSS from anoll1er facUity.
Package Page 42 AMP MPE Inventory
.r::I"......+::+::
:3l:U«,
Customer Service IssuesLas! S8\lecr: t.asrd11S. 2012
7. Can customers obtam a focal postmark in accordance wilIl applicable policies ill fJle Postal Oper.rtfons M<mual? Yes
8. Notes: Proposed limeofWlndcwand BME win be dependanton fiJtJ.R truck schedules. Collection boxes aJl18I'lfly located outsideof fhe RockfordP&OF have fhe1r last roJlectlon times al20:00,
Gaining Faculty: Palatine It P&DC
9. What p08tmat1l wlll be prIntvd on eonectlon mail?
Line 1 carol Stmam P&DC 60199
Line 2 Date & 11me.: /~f;:;:'*:~ ..~'i~9~t,: ,:,'
Package Page 43 AMP Customer Service Issues
,+:l<..;.....~,+:l
Space E:valuatlon and Other Costs~$l SaYfd; M8I'ch 15, 2012
Losing Facility: Rockford IL P&DC-1. Affected FacilityFacility Name Rook1ord Il P&DC
Street AddreH: 5225 HantlOn AveCity, State ZIP: Rockford, II. 61125
2. Lease Information. (If not leased skip to 3 below.)Enter annual lease cost Owned
Enter lease expiration date.......:::=O'::-~---------~~Enter lease optionslterms _
3. Current Square FootageEnter the total Interior square footage of the faclll~_=244.:..=.Z:;.:;49=__ _
Enter gained square footage expected with the AMf _
4, Planned use for acquired space from approved AMI
Retail. BMEU; Carner space and Collection Hub/prioritY breakdown operatic
5. Facility Coats
6. SaVings Information
Space Uavlnge ($):--::=-=~===;_;::_;;==;;:_::_;==(Thl$ numbfM" Cllflfed fr;Irward to tileer~ Summllry)