1 Great Lakes Area MeetingAugust 2016

2 Agenda Informed Delivery Incentives Price ChangeStreamlined Mail Acceptance Publication Full-Service Updates Nesting Sampling Verifications eInduction Updates Seamless Acceptance Updates Move Update Federal Register Notice (FRN) PostalPro™ Payment Modernization Roadmap 2

3 Images of consumers daily mail before 9 am ETInformed Delivery™ Images of consumers daily mail before 9 am ET Digital service that provides residential customers with a daily preview of their mail Available by , dashboard or App Images of the outside of letter-sized Currently Piloting in: Areas of New York, Connecticut, and Northern Virginia Over 70,000 users Expanding to Capital Region (Washington, D.C., Baltimore, and Richmond) in September 2016 National rollout planned for early 2017.

4 Bridge the Physical and DigitalDigital access and interactivity for mail Physical mail pieces Access to mail anytime, anywhere Increase transparency and visibility to more in household Provide convenient alternative for interactivity with direct mail offers Consumer Drive additional impressions of mail pieces and higher ROI of direct mail Provide more visibility to First Class mail to ensure open sooner Compete with digital advertising through digital interactivity in mailings Mailer Increase mail volume through: Improved direct mail ROI to drive higher response rates Improve timeliness by driving customer to mailbox Enhance customer experience to improve the USPS brand USPS

5 Very Positive Results from NY SurveyConsumers are very happy with service 50% (box 10 of 10) are very likely to recommend to friends and family Less than 4% reported Dissatisfied/Very Dissatisfied Engaging more with Direct Mail: 16% are more aware and more likely to open direct mail Over 50% often/sometimes respond to relevant offers Reaching More People : 41% report that most often others pick-up mail in their household

6 Users Already Love Informed DeliverySource: New York Pilot Survey, February 2016 97% of users are likely to continue using Informed Delivery 88% would recommend it to friends, family, and colleagues

7 New Digital Channel with Engaged Subscriber Base Marketer Opportunity Informed Delivery™ provides an unprecedented opportunity for Marketers to engage subscribers with an integrated direct mail and digital marketing campaign New Digital Channel with Engaged Subscriber Base Enables multi-channel campaigns Drive Site Traffic via Interactive Content 70% of subscribers open their s every day, average time to open is 2 hours 68% of subscribers are excited about the inclusion of digital offers related to mailpieces Informed Delivery subscribers represent a growing mobile user base and 74% of subscribers view alerts on mobile devices Source: New York Pilot Survey, February 2016

8 Mailer Campaign TestingIndustries with Highest Engagement Campaign Status Update Adds value to the mailpiece Ride along content (URLs) Custom image in place of or below mailpiece image Additional impression for subscribers via or dashboard Measureable data and insights

9 Updates and Next Steps Key Metrics User AcquisitionNational Roll Out (Early 2017) Key Metrics User Acquisition Total users: 74,556 NY/CT users: 71,028 NoVA users: 3,528 Current 5-Digit ZIP Code Locations Number of NY/CT Zip Codes: 653 Number of NoVA ZIP Codes: 192 Sequence Region/Location 1 Southern California 2 San Francisco 3 Houston and Dallas 4 Philadelphia and Pittsburgh 5 Remainder of NY, Northern New Jersey, and Long Island 6 Chicago, Detroit, and Minneapolis 7 Miami and Atlanta 8 …

10 Direct Mail Still Drives Sales40% Of consumers regularly make purchases because of direct mail they’ve received 77% Of Generation X and 63 percent of Generation Y consumers have purchased products through direct mail.1 1The Comeback Kid: Direct Mail is Back - Liftoff Blog – November 2015 2InfoTrend: Print catalogs encourage online and offline purchases – December 2015

11 Mailing Promotions Keeps Mail RelevantStrategy: Evolve the mail for long term growth Approach: Incentivize and provide a discount to companies that innovate in the mail New techniques to drive hardcopy to a mobile experience New printing techniques and inks to better engage the consumer Over 11B Mail Pieces 2015 Promotions

12 Mobile on Mail

13 2016 Promotions

14 Approved 2017 Promotion Calendar

15 January 2017 Structure Proposed ConsiderationsInternal Process Share Concepts with Industry Validate Financials (IRC) Solicit ELT Approval Solicit Governor Approval File with PRC PRC Decision All discussions around January 2017 Product Concepts and Potential Structural Changes are to be considered preliminary and non- binding as they are still under consideration and are pending USPS senior leadership approval. Final Prices and Product decisions are within the sole authority of Governors and subject to PRC approval. Key Dates 7/12-7/13: Share Key Concepts with MTAC August: Share Draft Technical Changes with Developers August: Share Draft Postage Statements with Developers August: Share Draft Mailing Standards August: Publish Final Draft Mail.dat and Mail.XML Specification Oct-Nov: PRC Market Dominant & Competitive Filing December: Publish Final Price File December: Publish Final Postage Statements December: Publish Final Mailing Standards 1/8: Implement pre-release 1/22: Structure Release Effective date (pending Governor approval) 3

16 January 2017 Structure Proposed ConsiderationsProposed M.dat/M.XML Changes Combine AADC and 3-Digit into AADC Modify COD to provide only Hold for Pickup Add fields for Informed Delivery data FSS: Revert to Previous Structure, Std, Per. BPM Flats 3rd ounce free for FCM commercial letters Proposed Postage Statement Changes - Summary Combine AADC and 3-Digit into AADC (First-Class Mail 3600 FCM, Standard 3602 R/N) Modify COD to provide only Hold for Pickup (First-Class Mail 3600 FCM, Package Services 3605, Priority Mail 3600 PM) FSS: Revert to Previous Structure (Standard 3602 R/N, Periodicals 3541, Bound Printed Matter 3605) 3rd ounce free for FCM commercial letters (First-Class Mail 3600 FCM) Standard Mail Automation letters eliminate the oz. weight break. The per piece weight limit will change from 3.3 oz. to 3.5 oz. (Standard Mail 3602 R/N) Standard Mail Flats: Increase the weight for piece pound pricing of Flats from 3.3 oz. to 4.0 oz. (Standard Mail 3602 R/N) Remove Repositionable Notes – Zero fees (Standard Mail 3602R/N) Proposed SSF Changes Modify COD to provide only Hold for Pickup Add new price options for Premium Forwarding Service commercial packages 4

17 MEPT Commercial Mail ProgramsCommercial mail accounts for $47 billion of the U.S. Postal Service’s yearly revenue (~70% of the total)* Full-Service Move Update End-to-end visibility, Seamless Acceptance & verification process Program Adoption Program Adoption Rate Full-Service 91% eInduction 64% Seamless Acceptance 18% eVS 90% eInduction Seamless eVS Enterprise Payment *April 2015

18 Streamlined Mail Acceptance PublicationDMM Publication for Streamlined Mail Acceptance for Letters and Flats Guide to Streamlined Mail Acceptance for Letters and Flats Reporting Technical Specification for Mail.dat and Mail.XML Mailing Standards Enhanced! Policies and Procedures NEW! Mail Quality and Assessment Reports NEW! Technical Guide to eDoc Enhanced! Published on 7/1 Available on PostalPro: 30 day comment period is now complete Future changes: 90-day period before implementing

19 Uses Intelligent Mail BarcodesFull-Service Full-Service is the foundation for all the Streamlined Business Mail Acceptance Programs Uses Intelligent Mail Barcodes Provides end-to-end visibility Allows Seamless and eInduction to work

20 Full-Service Updates eDoc Verifications Description Mailer IDMIDs in the IMcb, IMtb, & IMb™ as listed in the eDoc must be valid and assigned by the USPS® Service Type ID The STID in the IMb as listed in the eDoc must be valid and correct for the mail class and service level of the mailpiece By/For By/For –The mail owner and preparer must be identified correctly in the eDoc for a mailing with 5000 pieces or more per day for a single mail owner Barcode Uniqueness Unique Barcodes in the IMcb, IMtb, & IMb as listed in the eDoc must be unique across all mailings from all mailers over the previous 45 days Entry Facility The Entry Facility for a container or handling unit as listed in the eDoc must match the entry facility from the Mail Direction File or the Facilities Database Unlinked Copal All trays/virtual sacks marked for co-palletization at origin must have corresponding eDoc linking to a pallet within 14 days

21 Full-Service Updates Full-Service Assessment Date Announced BeginsFull-Service assessments will be in effect for errors logged in October 2016 First assessment will be posted November 2016 Currently providing outreach to mailers who have exceeded any error metrics Review Mailer scorecard to see status of your mailing quality Begins November 2016 Based on October 2016 Mailings

22 eDoc Submitter vs. Mail Owner ViewFull-Service Updates eDoc Submitter vs. Mail Owner View As eDoc Submitter As Mail Owner View mail quality metrics for all mailings submitted by single CRID Does not provide breakdown of Mail Owners View mail quality metrics across all MSPs used See results for mailpieces, handling units and containers for all MSP’s that identified you as the Mail Owner in their eDoc As Mail Preparer View metrics across mail owners serviced by a single MSP See results for mailpieces, handling units, and containers for clients that were reported as the Mail Owner in your eDoc

23 Full-Service Updates eDoc Submitter VieweDoc Submitter View displays mail quality metrics for all mailings submitted by a single CRID July 2016 Total 646283 950778 - DOC NOW INC. SUB-MITTERS CORP New: FS errors now broken out # of errors # of pieces w/ errors 1,623,793 1,623,793 1,623,793 1,623,793 New: Rolling assessment for Additional Postage Due $52.55 $52.55

24 Full-Service Updates Mail Owner ViewMail Owner View displays mail quality metrics across all MSPs used by a single Mail Owner

25 Full-Service Updates Mail Preparer ViewMail Preparer View displays metrics across all Mail Owners serviced by a single MSP 12

26 Full-Service Updates How to Drill Down into a ReportDrilling down to investigate an error: Right-click on the eDoc Submitter name or Customer Registration ID (CRID) Click “Drill” Click “View Error Details by Error Type” July 2016 2 3 1 Right clicking on the name or CRID with the blue hyperlink allows you to run different reports NOTE: Left clicking takes you directly to the first report listed: View Error Details by Error Type

27 Error Details by Error TypeFull-Service Updates Error Details by Error Type The Paul Jones Company

28 Postage Assessment OverviewFull-Service Updates Postage Assessment Overview Assessment Report Generation Mailer VAE Review & Action Mailer Payment or Review Assessment Report Receipt Final Notification Verification results are finalized on the 10th day of the month and assessment reports generated on the 11th Assessment notification is sent to Verification Assessment Evaluator (VAE) on the 11th day of the month VAE is responsible for reviewing, or challenging if necessary, and paying the request due at the end of the calendar month Mailers can submit payment or review charges through the review process Once paid, final notification is sent to VAE of the paying permit The postage assessment process generates assessment reports that allow for the review, payment, and challenge of additional postage assessments

29 Full-Service Updates 1 2 ORAfter the 11th of the month, mailers can view Postage Assessment Reports by accessing the Mailer Scorecard via the BCG: 1 2 OR

30 Full-Service Updates Mailers can view Postage Assessment Reports by accessing the Mailer Scorecard via the BCG: 3

31 Full-Service Updates The Assessment Summary Report shows all active invoices for a CRID: The MicroStrategy Reports link takes the user to the assessment data located in MicroStrategy The responsible CRID field and the column headers are links to the Assessment Detailed Report For the April Release (R41), the report changes include adding columns for the company name, listing impact by program (Seamless, Move Update, eInduction, Full Service Electronic, and displaying the Additional postage due, adjusted additional postage due (after review) and the current postage due amount.

32 Full-Service Updates The Assessment Detail Report shows additional postage, adjusted additional postage, error counts, and error % for each error type Links in the error count and % column display a breakdown of error counts by mail owner ACME Mail Company Company A Company B Company C MU, FS, EIN, and SA are all shown on the same report.

33 Nesting Sampling VerificationsUSPS has been aggressively investigating mailpieces failing service performance measurement. The Nesting Sampling verification process was implemented at sites where mailpieces were identified as affecting Service Measurement scores Identifying internal issues that may affect the mailpieces Identifying mail preparation issues that may affect the mailpieces Sites were identified having large volumes of recurring tray preparation errors Manual verification process being replaced by an automated system utilizing the hand held scanners Verification information will be available on the Mailer Scorecard under the Seamless tab The number of containers to be sampled is currently being evaluated. A statistical analysis is being conducted in order to determine the correct number of sampled units

34 Nesting Sampling VerificationsScanner verification process Implementing a random selection process for containers Establishing an unbiased sampling frequency Utilizing a new Nesting Sampling Randomizer Tool Provide times and number of containers to sample Based on 1-hour time windows Results available on Seamless tab of Mailer Scorecard Total 646283 - DOC NOW INC.

35 eInduction automates the drop shipment process for containersUses Intelligent Mail Container Barcodes Increases visibility of container shipments Automatically compares container info with eDoc

36 eInduction eDoc Verifications Description PaymentIMcb was included in eDoc but the eDoc was never finalized Undocumented No eDoc with the IMcb AND valid Continuous Mailer ID (MID) in IMcb is registered for eInduction or no eDoc with IMcb or EST Postage Statement Duplicate Same IMcb was scanned on different appointments Misshipped Container was entered at the wrong facility per the MDF. Checks the overall container destination zip and entry facility type Entry Point Discount Container includes mail that claims an entry discount that’s invalid at the entry location Zone Container includes mail that claims the wrong zone price

37 eInduction

38 eInduction Updates Mailer Scorecard Available for Review - Industry Alert sent out 0.003% of all mailer shipped pallets are identified as misshipped and contain sacks that are valid at the planned entry location CR 9894 scheduled for 9/25: Update PO! to identify a “Courtesy Pallet” based on the pallet having sacks with flats, and release the “Courtesy Pallet” to the eDoc planned entry facility rather than the valid facilities per the MDF.

39 Uses Intelligent Mail BarcodesSeamless Acceptance Seamless Acceptance automates acceptance, payment, and verification of mail Uses Intelligent Mail Barcodes Sampling compares mail characteristics of scans to eDoc Uses Intelligent Mail Devices, eDoc, and Mail processing equipment

40 Sampling Verifications Nesting / Sortation (MPE)Seamless Acceptance eDoc Verifications Description Postage Postage Payment Method or Postage Affixed amount on piece different than included in the eDoc Weight Piece weight is different than was included in the eDoc Sampling Verifications Mail Characteristic Piece was paid at Standard Mail price but the content makes it a First-Class piece OR piece is paid at a Non-Profit piece but content should makes it a Regular price piece Barcode Quality Piece had a unscannable barcode and was included in a mailing that only had automated price pieces Undocumented Delivery Scanned piece cannot be matched to an eDoc MPE Nesting / Sortation (MPE) Physical sortation of the mail doesn’t match the eDoc Delivery Scanned piece cannot be matched to an eDoc eDoc

41 Seamless Acceptance

42 Move Update FRN Clarification of the Move Update Standard (Final Notice): This Federal Register Notice intended to clarify Move Update requirements in relation to discount mail preparation prices for all commercial mailers, including those authorized as 99 Percent Accurate and Legal Restraint customers Published on July 1, 2016 Address Quality Census Measurement and Assessment Process (Proposed Rule): This proposed Federal Register Notice provides information regarding the approach to measuring Move Update compliance utilizing information derived from the Intelligent Mail Barcode during processing on Mail Processing Equipment. This proposed Federal Register Notice was published on July 6, The 30 day comment period through normal FRN processes is now complete

43 Move Update FRN FRN: Address Quality Census Measurement and Assessment Process Moving to a Census-Based Verification with results shown on the Mailer Scorecard Applies to ANY eDoc submitter who prepares FS volume (change from 75% adoption) ACS for basic automation/nonautomation pieces: Charged Full-Service fee ($0.00) 95% previous month eligible volume as FS for First-Class and Standard mail Calculates full-service percentage across the previous calendar month to determine their next month eligibility Proper By/For Identification Unique IMb w/ ACS Requested STID (either FS or OneCode) IMb included in eDoc Data may be received via SingleSource All of USPS programs are based on eDoc level assessments and customers have a comment period to respond to the Federal Register notice Periodicals will NOT be included in Census Measurement Assessments Clarification on Periodicals Manual ACS notices Threshold change from 0.8% to 0.5%

44 Move/Update VerificationsMove Update FRN Move Update Scorecard Enhancements Add Nixie Data to Summary of Scorecard (8/14) Currently available as warnings through drill reports Add Move Update Eligible Pieces to Scorecard (8/14) Separate Periodicals from Census/Assessments (8/28) Move/Update Verifications Type of Move/Update verification N/A Manual # Move/Update Eligible Pieces – FCM & STD -- # Move/Update Eligible Pieces – Periodicals 317 285 32 # ACS Requested STID Pieces 348 330 18 # COA Errors – FCM & STD # COA Warnings – Periodicals 960 210 750 # UAA Warnings 129 Total Additional Postage Due (Move/Update) – Info Only

45 PostalPro Transition from RIBBS in SeptemberUpdating all document links to PostalPro now Critical that users provide feedback NOW

46 Payment Modernization – Release 1: EPOBOLWHAT: Payment Modernization will allow USPS commercial customers to securely pay for products and services with ACH Debit or Trust using one Enterprise Payment account that they can manage online HOW: (1) Enable a single, secure, self-service online account management and payment system (2) Use secure identifier to replace bank account number and remove sensitive customer data from USPS’ servers Note: CAPS, eACH Online, and EMRS will be retired as part of the Enterprise Payment project Setting up Enterprise Payment Account with EPOBOL (pilot): 1. Create/verify BCG account 6. Select payment methods 2. Submit POBOL migration sheet 7. Enter EPA number into migration sheet 3. Receive to enroll in Enterprise Payment System and in EPOBOL 8. EPOBOL teams links PO Boxes to EPA 4. Enroll in EPS and EPOBOL 9. Manage EPOBOL 5. Create EPA 10. Manage EPA reports

47 Payment ModernizationCustomers will enroll in Enterprise Payment System and Enterprise PO Boxes Customers will need to use an invitation code to access EPS Note: Customers need to have a Business Location and an EPA to access EPOBOL

48 Payment ModernizationCustomer will input new EPA number into migration sheet Send the updated migration sheet to the migration team The migration team will validate the Enterprise Payment account and upload your boxes in EPOBOL Collect and validate POBOL products

49 Payment Modernization - PO BoxesTo link an Enterprise Payment account to PO Boxes, click “Products and Services” Select “Visit PO Boxes Online to Manage”, which will redirect the user to EPOBOL

50 Payment Modernization - PO BoxesCustomers are redirected to the EPOBOL Landing Page from EPS Customers can also sign in to EPOBOL using BCG EPOBOL Landing Page contains all available features Link/Add: Link or Add retail PO Boxes, Callers Services, and Reserves to EPOBOL Update Payment Detail: If customers have more than one EPA, they can select the most convenient one to pay for their boxes at any time New Box: Customers can issue new PO Boxes, Caller Services, and Reserves Pay Now: Customers can make an immediate payment at the end of the month when the boxes are due Reports: Customers can select reports to manage their boxes

51 Payment Modernization - PO BoxesClick “Reports” to view the list of loaded boxes Send an to the migration team if you experience any issues or errors Start managing (open, close, pay) PO Boxes, Callers and Reserves online

52 Payment ModernizationCustomer returns to EPS to manage payments for EPOBOL Dashboard view shows EPA overview and link to view reports

53 Payment ModernizationEPA Reporting Detail shows overview of spending and transaction history

54 Payment ModernizationThe EPOBOL summary page in EPS shows the spending breakdown for the service

55 Payment ModernizationThe EPOBOL detail report shows specific transactions across the EPA

56 Solicit stakeholder/ industry inputPostalOne! Roadmap Form PostalOne! team Evaluate current initiatives Define governance process Solicit stakeholder/ industry input Present future roadmap The roadmap will determine how technology options will support USPS business goals and help drive priorities over the next 3-5 years. Define Business Capability Map for MEPT services/systems including descriptions and prioritization Business Non-Functional Requirements (IT) such as Service Availability and Performance by module and their justification List of components for retirement Propose Architecture components Quality attributes Top level design decisions and tradeoffs Timeline of initiatives and projects – Execute Infrastructure updates (e.g. new web hardware, WAS upgrade) Deploy new technologies where appropriate: cloud, mobile, self-service, service orientation, big data, analytics Communicate Roadmap timelines Industry impacts/system requirements

57 PostalOne! Roadmap - InitiativesForm PostalOne! team Evaluate current initiatives Define governance process Solicit stakeholder/ industry input Present future roadmap The PostalOne! team will evaluate current initiatives to establish the roadmap that defines new services/systems and sunsets existing applications if necessary. business needs proposed redesign technology Replacement for Centralized Account Payment System (CAPS) Replacement for local trust accounts Enables enterprise account system for all postal services/products Improved security for payment Self-service account management Enterprise Payment System (EPS) Replacement for multiple pricing engines Mail.dat Mail.XML PSW eVS PostalOne! Downloadable price file Unified Pricing Engine (UPE) Evaluate original eVS pilot Simplify and streamline package verification Leverage all manifests, scans and package attribute information for accurate postage payment Automate package attribute capture electronic Verification System (eVS) architecture current design usability availability data integrity modifiability performance

58 PostalOne! Roadmap Work Group Mission Statement: This workgroup will identify critical challenges with PostalOne!, including eVS, and define the key business needs for improving acceptance and payment processes for consideration in the re-design of PostalOne!.   Impact on Other Issues/Procedures – The output of the workgroup may impact the following: Mailing Receipts Data Distribution and Access Verification Results Reporting Postage Statement Entry Security Model and User Access Identity Management (e.g. CRID, Permit, National Account, CAPS) Desired Results: Identify critical challenges with PostalOne!, including eVS Define key business needs for letters/flats and parcels to improve the acceptance and payment experience Define key performance criteria

59

60 Appendix

61 Undocumented AnalysisDevelop process to enhance the understanding of undocumented mail pieces Defined operational variability Reconciling undocumented mail with mailer feedback Advanced analytics for remaining unknown undocumented mailpieces Variability Cause USPS operational variability Cancellation after delivery Redirection after delivery Other processing loop Mailer operational variability Double feeds, Misprints, Bad printing, Print/ eDoc mismatch, etc.

62 Undocumented Analysis Combined Operational VariabilityNo mailer action needed when undocumented volume is less than 0.1% Root Cause 100% eDoc Operational Variability Ceiling % (Volume) Total from USPS operational variability 0.003% 0.005% Total from Multiple IMb (removed from undocumented volume in September) N/A 0.011% Total from mailer operational variability 0.089% 0.09% Total operational variability ceiling 0.1% * Data is from May 2016

63 Seamless Parallel & Scorecard ReviewMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples When a mailer joins the Seamless Parallel Program: USPS will work with the Mailer to review the Mailer Scorecard and discuss their undocumented volume when the percentage exceeds the 0.1% operational variance ceiling. USPS will review the following “Known Undocumented” categories with the mailer and identify any applicable categories.

64 Known Undocumented CategoriesMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples # Known Undocumented Categories 1 Barcoded Single-Piece volume without postage statement 2 Barcoded Single-Piece (rejected from auto mailing or planned) without eDoc (hard copy statement) 3 Barcoded Single-Piece with electronic postage statement (rejected from auto mailing or planned, with no piece level details) 4 Barcoded pieces in presort mailing with hard copy statement 5 Barcoded pieces in presort mailing with electronic postage statement (no piece level details) 6 Pieces on Full Service Postal Wizard (inaccurate serial range identified) 7 Barcoded pieces on Non-Full Service Postal Wizard 8 Spoiled/shorted pieces are re-created and not re-submitted in eDoc 9 Barcoded pieces that 3rd party applied a different barcode and eDoc does not match 10 Barcoded pieces presented by another mailer without matching eDoc 11 Barcodes provided in eDoc do not match barcodes printed on physical pieces 12 Barcoded pieces for mailings with Extra Services without eDoc (i.e. Certificate of Mailing, Certified Mail, etc.) 13 PMOD (Priority Mail Open and Distribute) without eDoc 14 Mailing is not finalized 15 eDoc upload failure to PostalOne!

65 Identify Potential Documentation & SolutionsMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples Based on the applicable “Known Undocumented” Categories: USPS will work with the mailer to identify existing documentation that the mailer currently produces that would account for their “Known Undocumented.” Documentation will vary based on the category. Examples of potential documentation are on the following three slides. The mailer may also choose to take steps to eliminate the source of their “Known Undocumented”.

66 Identify Potential Documentation & SolutionsMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 1 Barcoded Single-Piece volume without postage statement Monthly Meter Report Number of barcoded pieces submitted without a postage statement Include all barcoded pieces in eDoc 2 Barcoded Single-Piece (rejected from auto mailing or planned) without eDoc (hard copy statement) Reject Report Reject Percentage Sampling Process Hardcopy Postage Statement USPS Acceptance Employee will indicate if the pieces are barcoded in PostalOne! 3 Barcoded Single-Piece with electronic postage statement (rejected from auto mailing or planned, with no piece level details) If Postal Wizard, indicate on the statement that barcoded pieces are included in the mailing Provide piece-level documentation for all eDoc containing barcoded pieces 4 Barcoded pieces in presort mailing with hard copy statement Hardcopy Postage Statement 5 Barcoded pieces in presort mailing with electronic postage statement (no piece level details) USPS Acceptance Employee will indicate if the pieces are barcoded, if possible

67 Identify Potential Documentation & SolutionsMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 6 Pieces on Full Service Postal Wizard (inaccurate serial range identified) USPS will use the Mailer Scorecard to identify jobs that had a 0% scan rate Mailer will confirm that incorrect serialization was provided in eDoc and provide correct serialization Provide accurate serialization in eDoc 7 Barcoded pieces on Non-Full Service Postal Wizard Identify that barcoded pieces are included in the mailing USPS will use the PostalOne! dashboard to determine when barcoded pieces were included in these jobs Include all barcoded pieces in eDoc 8 Spoiled/shorted pieces are re-created and not re-submitted in eDoc Spoilage Report Original barcodes in mailing 9 Barcoded pieces that 3rd party applied a different barcode and eDoc does not match Internal Transfer Records detailing exchange with 3rd party MSP Work with MSP to ensure that original barcodes are included in eDoc 10 Barcoded pieces presented by another mailer without matching eDoc Disclose MSPs to help USPS identify root cause Work with MSP to ensure that pieces are included in eDoc

68 Identify Potential Documentation & SolutionsMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 11 Barcodes provided in eDoc do not match barcodes printed on physical pieces Original barcodes in mailing Provide correct piece file 12 Barcoded pieces for mailings with Extra Services without eDoc (i.e. Certificate of Mailing, Certified Mail, etc.) Certificate of Mailing Receipt Include all barcoded pieces in eDoc (use Postal Wizard for < 200 pieces) 13 PMOD (Priority Mail Open and Distribute) without eDoc Original postage statement Mailer can include barcodes in eDoc for their PMOD mailings 14 Mailing is not finalized USPS will identify jobs on the PostalOne! dashboard and finalize the mailing Ensure all statements are in FIN status 15 eDoc upload failure to PostalOne! Original barcodes from the mailing Ticket from PostalOne! Helpdesk Use the External PostalOne! Outage Contingency Plan (available on RIBBS) whenever they encounter upload issues. This enables mailers to enter the mailing and upload their eDoc later, once the issue is resolved.

69 Process Established Documentation Validation:Mailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples Documentation Validation: Once the process has been established and USPS has confirmed that the documentation is sufficient to account for undocumented that exceeds 0.1%: Mailers will follow the process established. USPS will review the process periodically and revisit the process if any new undocumented issues arise. Documentation Provided USPS Validation Hardcopy Postage Statement, USPS Acceptance Employee indicated pieces had barcodes Confirm that the documentation is representative of the mailer’s undocumented volume. Undocumented candidates (i.e. barcoded) Not included in eDoc Certificate of Mailing Receipt Original Barcodes in Mailing (eDoc Upload Failure) Monthly Meter Report

70 Example – Mailer 1 Mailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples After Mailer 1 entered the Seamless Parallel Program, Mailer 1 and the USPS met to determine their applicable “Known Undocumented” categories. In the discussion, Mailer 1 and USPS identified Non Full Service Postal Wizard statements as a potential source of “Known Undocumented.” Mailer 1 submits barcoded pieces in these statements. Resolution: Mailer 1 decided to provide the piece barcodes in eDoc in order to eliminate the undocumented. # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 7 Barcoded pieces on Non-Full Service Postal Wizard Identify that barcoded pieces are included in the mailing USPS will use the PostalOne! dashboard to determine when barcoded pieces were included in these jobs Include all barcoded pieces in eDoc May 2016 June 2016 0.50% 0.09%

71 Example – Mailer 2 # Known Undocumented CategoryMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples After Mailer 2 entered the Seamless Parallel Program, Mailer 2 and the USPS met to determine their applicable “Known Undocumented” categories. In the discussion, Mailer 2 and USPS identified a 50,000 piece job has a 0% scan rate and the mailer determined that the serialization in eDoc did not match the serialization used on the physical pieces. Resolution: Mailer 2 implemented a process change with their software vendor to limit the risk that this scenario will occur in the future and provided the correct serialization. USPS confirmed the pieces were paid for in eDoc. # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 11 Barcodes provided in eDoc do not match barcodes printed on physical pieces Original barcodes in mailing Provide correct piece file

72 Example – Mailer 3 # Known Undocumented CategoryMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples After Mailer 3 entered the Seamless Parallel Program, Mailer 3 and the USPS met to determine their applicable “Known Undocumented” categories. In the discussion, Mailer 3 and USPS identified Non Full Service Postal Wizard statements as a potential source of “Known Undocumented”. Mailer 3 submits barcoded pieces in these statements. Mailer 3 agreed to identify that barcodes are present in the Postal Wizard statement. USPS was able to validate that the pieces were barcoded and that the piece totals accounted for the mailer’s undocumented above 0.1%. # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 7 Barcoded pieces on Non-Full Service Postal Wizard Identify that barcoded pieces are included in the mailing USPS will use the PostalOne! dashboard to determine when barcoded pieces were included in these jobs Include all barcoded pieces in eDoc May 2016 May Adjusted June 2016 June Adjusted 1.42% 0.09% 1.47% 0.08%

73 Example – Mailer 4 # Known Undocumented CategoryMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples After Mailer 4 entered the Seamless Parallel Program, Mailer 4 and the USPS met to determine their applicable “Known Undocumented” categories. In the discussion, Mailer 4 and USPS identified Certificate of Mailings (3606-D) as a potential source of “Known Undocumented”. The mailer uses Certificate of Mailings (3606-D) for mailings with fewer than 200 pieces and was unaware that mailings with fewer than 200 pieces could be submitted in eDoc. Mailer 4 chose to include these pieces in Full Service Postal Wizard statements and eliminate their undocumented. USPS validated that undocumented no longer exceeded 0.1%. # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 12 Barcoded pieces for mailings with Extra Services without eDoc (i.e. Certificate of Mailing, Certified Mail, etc.) Certificate of Mailing Receipt Include all barcoded pieces in eDoc (use Postal Wizard for < 200 pieces) May 2016 May Adjusted June 2016 1.42% 0.09% 0.07%

74 Example – Mailer 5 # Known Undocumented CategoryMailer enters Seamless Parallel Program USPS and Mailer Review Scorecard USPS and Mailer establish process for accounting for undocumented Mailer continues agreed upon process & USPS reviews documentation periodically Examples After Mailer 5 entered the Seamless Parallel Program, Mailer 5 and the USPS met to determine their applicable “Known Undocumented” categories. In the discussion, Mailer 5 and USPS identified that Mailer 5 had an issue uploading an eDoc file and submitted barcoded pieces on a hardcopy statement, which resulted in undocumented pieces. In the future when Mailer 5 experiences an upload issue, they will use the PostalOne! Outage Contingency Plan, which will allow them to induct the mail and upload the eDoc after the issue is resolved. USPS will follow up with mailer if they exceed 0.1% in a future month. # Known Undocumented Category Potential Documentation Option to Eliminate Undocumented 15 eDoc upload failure to PostalOne! Original barcodes from the mailing Ticket from PostalOne! Helpdesk Use the External PostalOne! Outage Contingency Plan (available on PostalPro/RIBBS) whenever they encounter upload issues. This enables mailers to enter the mailing and upload their eDoc later, once the issue is resolved. May 2016 May Adjusted June 2016 1.62% 0.05% 0.43%

75 Payment Modernization – Release 1: EPOBOLWHAT: Payment Modernization will allow USPS commercial customers to securely pay for products and services with ACH Debit or Trust using one Enterprise Payment account that they can manage online HOW: (1) Enable a single, secure, self-service online account management and payment system (2) Use secure identifier to replace bank account number and remove sensitive customer data from USPS’ servers Note: CAPS, eACH Online, and EMRS will be retired as part of the Enterprise Payment project Setting up Enterprise Payment Account with EPOBOL (pilot): 1. Create/verify BCG account 6. Select payment methods 2. Submit POBOL migration sheet 7. Enter EPA number into migration sheet 3. Receive to enroll in Enterprise Payment System and in EPOBOL 8. EPOBOL teams links PO Boxes to EPA 4. Enroll in EPS and EPOBOL 9. Manage EPOBOL 5. Create EPA 10. Manage EPA reports

76 Payment ModernizationCustomers will enroll in Enterprise Payment System and Enterprise PO Boxes Customers will need to use an invitation code to access EPS Note: Customers need to have a Business Location and an EPA to access EPOBOL

77 Payment ModernizationCustomer will input new EPA number into migration sheet Send the updated migration sheet to the migration team The migration team will validate the Enterprise Payment account and upload your boxes in EPOBOL Collect and validate POBOL products

78 Payment Modernization - PO BoxesTo link an Enterprise Payment account to PO Boxes, click “Products and Services” Select “Visit PO Boxes Online to Manage”, which will redirect the user to EPOBOL

79 Payment Modernization - PO BoxesCustomers are redirected to the EPOBOL Landing Page from EPS Customers can also sign in to EPOBOL using BCG EPOBOL Landing Page contains all available features

80 Payment Modernization - PO BoxesClick “Reports” to view the list of loaded boxes Send an to the migration team if you experience any issues or errors Start managing (open, close, pay) PO Boxes, Callers and Reserves online

81 Payment Modernization - PO BoxesLink/Add: Link or Add retail PO Boxes, Callers Services, and Reserves to EPOBOL Ability to link Single or Multiple boxes Single Box: Business Location EPA Box number ZIP Code Name Multiple Boxes Template: ZIP Code Box Number Business Location EPA PO BOX NUMBER ZIP CODE BUSINESS NAME or LAST NAME BUSINESS LOCATION EPA

82 Payment Modernization - PO BoxesUpdate Payment Detail: If customers have more than one EPA, they can select the most convenient one to pay for their boxes at any time Enter Search criteria for CURRENT EPA: Box Number OR ZIP Code OR Business Location OR EPA Select NEW EPA: Single Box Multiple Boxes Accept T&C

83 Payment Modernization - PO BoxesNew Box: Customers can issue new PO Boxes, Caller Services, and Reserves

84 Payment Modernization - PO BoxesNew Box: PO Box: 1) Customers can search PO Boxes by ZIP Code or Address within a range area 2) Select the desired box and 3) Select the Business Location and EPA

85 Payment Modernization - PO BoxesNew Box: Caller Services Customers can search Caller Services by ZIP Code or Address within a range area 2) Select the desired Caller and 3) Select the Business Location and EPA

86 Payment Modernization - PO BoxesNew Box – Reserves: 1) Customers enter existing Caller ZIP Code 2) Caller Number 3) Business Location 4) Reserve information by range or individually separated by commas 5) and EPA number

87 Payment Modernization - PO BoxesClose and Refund: 1) Customers can close Boxes entering the Box Number and the Zip Code. The request will be processed immediately

88 Payment Modernization - PO BoxesPay Now: Customers can make an immediate payment at the end of the month when the boxes are due

89 Payment Modernization - PO BoxesReports: Customers can select one of the following report to manage their boxes

90 Payment ModernizationCustomer returns to EPS to manage payments for EPOBOL Dashboard view shows EPA overview and link to view reports

91 Payment ModernizationEPA Reporting Detail shows overview of spending and transaction history

92 Payment ModernizationThe EPOBOL summary page in EPS shows the spending breakdown for the service

93 Payment ModernizationThe EPOBOL detail report shows specific transactions across the EPA