USPS Releases 2018 Compliance Report

INTRODUCTION

The United States Postal Service hereby submits its Fiscal Year 2018 Annual Compliance Report (ACR or Report). The Report is provided pursuant to 39 U.S.C. Section 3652, which requires the Postal Service to file with the Postal Regulatory Commission, within 90 days after the end of each fiscal year (FY), a variety of data on costs, revenues, rates, and quality of service, in order to “demonstrate that all products during such year complied with all applicable requirements” of title 39.

Overall, the Report demonstrates that the Postal Service maintained steady progress on many metrics, despite an environment of falling mail volumes and significant legal constraints, including a market dominant price cap that impedes progress on persistent cost coverage issues. The Postal Service built upon its achievements of the prior year in some areas and is committed to improving customer experience and service performance for all products in FY 2019.

The Postal Service’s market dominant and competitive products were broadly in compliance with the requirements of chapter 36 over the course of FY 2018. Across every market dominant class, the Postal Service reduced the number of workshare discount passthroughs that were above 100 percent, decreasing by nineteen the total number of such passthroughs. Competitive product volumes and revenues continued to grow, resulting in a total net competitive contribution of nearly 25 percent of institutional costs.

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