11-1 Minimum Volume Reduction Provision (MVRP)

11-1.1 Description

A permit imprint is used for manifest mailings, and each mailing must have at least 200 pieces or 50 pounds. That is the minimum volume that makes it cost effective to process permit imprint mailings.

However, the Postal Service recognizes that some businesses usually meet minimum volumes but on some mailing days cannot meet those minimum volumes, and it also recognizes that some new businesses often need a “ramp-up” period to build their mail volumes to the required minimums. In order to accommodate these situations, the Postal Service established the Minimum Volume Reduction Provision (MVRP). This provision allows a mailer to mail less than minimum volumes for a specified period of time if the Postal Service determines that it will be cost effective during the specified period. This provision also allows other mailers the flexibility of meeting the minimum volumes either by aggregating volumes from various mailing sites or by averaging the number of pieces from a single site mailed during a Postal Service quarter.

11-1.2 MVRP Options

The MVRP has three options:

1. Option 1: Aggregate

Under this option, a mailer with multiple distribution sites for mailing is allowed to meet minimum volume levels by aggregate counts. On some mailing days, there could be less than minimum volumes presented at some or all sites, but the aggregate total from all sites would meet the minimum volume standards (200 pieces or 50 pounds). The MMS authorization under the aggregate option is for 2 years and may be renewed in 2-year intervals.

2. Option 2: Average

Under this option, a mailer using a single distribution site for mailing is allowed to average his or her mailing volumes to meet the required minimum volumes. On some days the mailing volumes may be less than minimum, and on other days it may be more than minimum, provided that the total volume of all mailings for a Postal Service quarter divided by the total number of mailings during the same period meets the standard minimum volume requirements. Time periods other than Postal Service quarters are permitted for averaging only if they are determined to be cost-effective for the Postal Service. The MMS authorization under the average option is for 2 years and may be renewed in 2-year intervals.

3. Option 3: Ramp-up

Under this option, a mailer is allowed to build its mail volumes up to the required minimum levels during the specified “ramp-up” period of its operation. No mailing is required to meet minimum volumes until the ramp-up period is completed. The time period for a manifest authorization under the ramp-up option is 6 months. One extension of 90 days is allowed if needed.

11-1.3 MVRP Requirements

1. Application. Follow the standard MMS application procedures as described in chapter 2 using the standard MMS application (Exhibit 1) and providing all required documentation.
2. General Terms. All mailings are submitted under the terms of the special MVRP Manifest Mailing System (MMS) authorization letter (Exhibit 9) and attachments and the applicable DMM standards.
3. MAC Certified. The software used to produce the manifest must have been certified under the Manifest Analysis and Certification (MAC) program.
4. Single-Piece Rate Mail. This provision is available only for single-piece rate mail of the classes and subclasses described in the authorization letter.
5. Time Period. The MVRP is valid for the time period authorized in the MVRP.
6. Required Approvals. The MVRP must be approved by the regional manager of Sales prior to the review and approval of the MMS.

11-1.4 Administrative Requirements

1. PCES Sales Manager

The regional manager of Sales is the sole authority to approve the use of the MVRP. (The regional manager of Sales does not have authority to approve, suspend, or rescind the MMS authorization itself.) The regional manager of Sales has the following responsibilities:

1. Determine and document whether the initial use of the MVRP will be cost effective for the Postal Service. Documentation will be in the form of a cost-benefit analysis using projected customer mail volumes and associated Postal Service costs for accepting and handling mail.
2. Complete and sign the MVRP (Exhibit 9A, B, or C) according to the option required for the mailer.
3. Maintain documentation throughout the life of the MVRP that supports continued use of the MMS as a cost-effective arrangement for the Postal Service.
4. Review quarterly reports (including worksheets provided by business mail entry) on the mailing volumes and notify the mailer of any potential conflicts with volume requirements of the MVRP.
5. Forward quarterly reports (including worksheets provided by business mail entry) for mailers authorized Option 1 (Aggregate) to the regional manager of Sales responsible for the national MVRP administration of those mailers.
6. Notify the mailer of continuation or termination of the MVRP based on documentation supporting cost effectiveness.
7. Provide appropriate written notice on continuation or termination of any MVRP to the administering postmaster, the district BME manager, and the BMS manager.
2. District Manager
1. May rescind MVRP MMS authorization using the procedures outlined in 11-1.7 if the mailer is not meeting the MVRP requirements.
2. May suspend or rescind any MVRP MMS authorization using the procedures outlined in 11-1.7 if system reviews determine that postage is paid incorrectly and the mailer cannot or will not correct the system.
3. Business Mail Entry Manager
1. Ensure that all administrative procedures for single-piece rate MMS described in this publication are followed unless otherwise allowed in this chapter.
2. Monitor compliance with terms of the MMS authorization and MVRP.
3. Forward MVRP Quarterly MMS Accuracy Worksheet to the regional manager of Sales who authorized the MVRP.
4. Administering Postmaster

Ensure that all administrative procedures for single-piece rate MMS described in this publication are followed unless otherwise allowed in this chapter.

11-1.5 Alternate Mailer Quality Control Procedures

MVRP Manifest Mailing Systems are by definition smaller volume systems and will be used, in most instances, for Priority Mail or Parcel Post mailings, although any single-piece rate pieces that can be paid with a permit imprint are acceptable. The risk of incorrect payment of postage is significantly reduced. Therefore, the mailer’s quality control (QC) does not need to be as extensive as it is for the standard MMS.

The mailer’s QC requirements are shown in Article 3 of the letter of authorization (Exhibit 9). These requirements may not be modified.

11-1.6 Alternate Acceptance Procedures

1. Since the MVRP systems are smaller and less complex, the risk of incorrect postage payment is less. Therefore, the frequency of sampling these systems is reduced.
2. Use Exhibit 10 to determine the sampling frequency.
3. The sampling size does not change — only the frequency of sampling changes from the usual MMS sampling frequency.
4. There are no changes to the appropriate actions required when a postage deficiency is detected.

11-1.7 Termination of MVRP

1. The MMS authorization and associated MVRP may be terminated as follows when a system review determines that postage is paid incorrectly and the mailer cannot or will not correct the system:
1. The district manager rescinds the mailer’s MMS authorization in writing (Exhibit 7C) with copies to the regional manager of Sales and administering postmaster. The mailer may appeal this in writing within 15 days of receipt of the notification to the manager of Business Mailer Support at Headquarters.

Note: Termination of Option 1 (Aggregate) may be done at a single local site without terminating the MVRP at other sites included in the national MVRP.

2. While the appeal is pending, no MMS mailings will be accepted.
2. The MVRP may be terminated by either the regional manager of Sales or the district manager, as follows, when it is determined after reviewing the quarterly MVRP MMS Accuracy Worksheets that the mailer is not meeting the requirements of the MVRP:
1. If the regional manager of Sales is terminating the provision, the manager provides a written notice to the mailer at least 30 days prior to the termination of this provision and provides copies of that notice to the district manager, the district manager of business mail entry, and the administering postmaster.
2. If the mailer wants to continue the MMS authorization without the MVRP, the mailer may submit only mailings meeting minimum volumes and must submit a mailing within the next 30 days.
3. If these conditions are not met, the district manager will rescind the Manifest Mailing System authorization including the MVRP in writing using Exhibit 9D.
4. If the conditions are met, then a new, standard MMS authorization is issued to the mailer (Exhibit 4C).
5. If the district manager is terminating either the Option 2 (Average) or Option 3 (Ramp-up) MVRP, the district manager provides a written notice (Exhibit 9D) to the mailer and provides copies of that notice to the responsible regional manager of Sales and the administering postmaster.
6. Note: The mailer may elect to continue using the MMS authorization as outlined in 11-1.7b2.
7. For the Option 1 (Aggregate) MVRP, however, a particular MVRP might be cost-effective nationally but not locally. If the district manager wants to terminate the Option 1, the district manager must notify (Exhibit 9E) the regional manager of Sales (of the region serving the district) of the intent to rescind the MMS authorization. From the date of notification, the regional manager of Sales has 30 days to provide a justification to the district manager that the Option 1 MVRP should be continued based on national volume and revenue information. If the regional manager of Sales does not provide written justification showing that the MVRP is cost effective locally, then the district manager may terminate the MVRP of the local site.

Note: The mailer may elect to continue using the MMS authorization as outlined in 11-1.7b2.

3. The termination of the MVRP at the end of the authorization period occurs as follows:
1. The regional manager of Sales provides a written notice to the mailer at least 30 days prior to the termination of this provision and provides copies of that notice to the district manager, the district manager of business mail entry, and the administering postmaster.
2. If the mailer wants to continue the MMS authorization without the MVRP, the mailer may submit only mailings meeting minimum volumes, and the district manager must issue a new, standard MMS authorization.