FY 2020 Annual Compliance Determination
Highlights in 8 Charts
The Commission released the FY 2020 Annual Compliance Determination (ACD) on March 29, 2021, reviewing the Postal Service’s compliance with the law, Commission regulations, and its service standards. Here are some of the ACD’s key findings.
1. Declines in Volume per Delivery Point
The ACD displayed the large reduction in mail volume per delivery point between FY 2006 and FY 2020.
Volume per Delivery Point, FY 2006 – FY 2020
2. Non-Compensatory Products
Ten Market Dominant products did not cover their costs in FY 2020, and two of the five Market Dominant classes – Periodicals (displayed below) and Package Services – were also non-compensatory.
Periodicals Unit Cost, Revenue, and Contribution, FY 2016 – FY 2020
3. Negative Contribution of All Flat-Shaped Products
The ACD demonstrated the persistence of operational and financial problems with flat-shaped mail products, which are larger than letters but are not considered parcels.
Flats Contribution and Volume, FY 2015 – FY 2020
4. Products that Exceeded or Failed to Meet Service Performance Targets
Due to a number of internal and external factors, 17 of 22 Market Dominant products failed to meet their service standards, the worst service performance results since the Postal Accountability and Enhancement Act of 2006.
FY 2020 Market Dominant Products Service Performance Results
5. First-Class Mail Service Performance
For First-Class Mail specifically, the Commission analyzed how actual service performance measured up to the annual targets for FY 2019 and FY 2020. In the chart below SP means Single-Piece, LC means Letters/Postcards, PRST means Presort, Flats means Flat-Shaped Mail Products, Outbound Int means Outbound Single-Piece International and Inbound Post means Inbound Letter Post.
Service Performance Results, by Percent, FY 2019 – FY 2020
6. Comparing First-Class Mail Service Performance for the First Half of the Last Two Fiscal Years with…
The ACD compared First-Class Mail results for the first and second half of FY 2020 and FY 2019, disaggregated by shape, service standard, and whether the mailpiece was presorted or single-piece.
Domestic First Class Mail
Service Performance Results, First Half, FY 2019 – FY 2020
7. …the First-Class Mail Service Performance of the Second Half of the Last Two Fiscal Years
Domestic First Class Mail
Service Performance Results, Second Half, FY 2019 – FY 2020
8. Weekly Service Performance for the Summer of FY 2019 and FY 2020
The ACD compared weekly service performance results for 3-5-Day First-Class Mail Single-Piece Letters/Postcards during the window of July 11 through September 4, 2020, when the Postal Service undertook voluntary large-scale operational and structural changes, to the same period in FY 2019.
3-5-Day First-Class Mail Single-Piece Letters/Postcards
Service Performance Results, by Week, FY 2019 – FY 2020