SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction

II. Background

III. Proposal

IV. Notice and Comment

V. Ordering Paragraphs

I. Introduction

On October 5, 2026, the Postal Service filed a petition pursuant to 39 CFR 3050.11 and Order No. 9377 ^[1] requesting that the Commission initiate a rulemaking proceeding to consider a proposed change to analytical principles relating to periodic reports.^[2] The Petition identifies the proposed analytical change filed in this docket in a proposal accompanying the Petition.

II. Background

The Postal Service Reform Act of 2022 ^[3] modified and expanded the Postal Service's ability to enter into interagency agreements (IAAs) to provide property and services to, or on behalf of, other government agencies. Specifically, 39 U.S.C. 3703 for the first time authorizes the Postal Service to enter into agreements with agencies of any state government, local government, or tribal government to provide property or nonpostal services to the public on behalf of such agencies for non-commercial purposes. At the same time, with respect to the Postal Service's pre-existing authority under 39 U.S.C. 411 to provide property and services to other Federal agencies, the PSRA specifies that “[t]he Postal Service may establish a program to provide property and nonpostal services to other Government [ i.e., federal] agencies within the meaning of section 411,^[4] but only if such program provides a net contribution to the Postal Service, defined as reimbursement that covers at least 100 percent of the costs attributable . . . .” 39 U.S.C. 3704.

Under the PSRA, the Postal Service must submit a report to the Commission after the close of each fiscal year that:

[A]nalyzes costs, revenues, rates, and quality of service for each agreement or substantially similar set of agreements for the provision of property or nonpostal services under section 3703 or the program as a whole under section 3704, and any other nonpostal service authorized under [Chapter 37 of Title 39 of the United States Code], using such methodologies as the Commission may prescribe, and in sufficient detail to demonstrate compliance with the requirements of [Chapter 37 of Title 39 of the United States Code].

39 U.S.C. 3705(a)(1). Upon receiving the Postal Service's report and providing an opportunity for public comment, the Commission must make a written determination of compliance. 39 U.S.C. 3705(e).

In its FY 2022 Annual Compliance Determination (ACD), the Commission directed the Postal Service to develop a proposed methodology (or methodologies) for calculating and attributing costs and revenue to IAAs authorized under 39 U.S.C. 3703 and 3704, and to initiate a rulemaking proceeding to establish such methodology (or methodologies) in accordance with 39 CFR 3050.11.^[5] As directed, the Postal Service initiated Docket No. RM2023-7 on May 26, 2023, proposing a categorical approach to calculating and attributing costs and revenue to similar types, or groupings, of IAAs.^[6]

On August 31, 2023, the Commission conditionally approved the Postal Service's proposed methodology, subject to seven conditions.^[7] As relevant here, the first condition provided that, whenever the Postal Service enters into an IAA that is outside the scope of the IAA categories approved in Docket No. RM2023-7, the Postal Service should file a petition pursuant to 39 CFR 3050.11 requesting that the Commission initiate a rulemaking proceeding to consider a proposal to change an analytical principle underlying the Postal Service's periodic reports.^[8] The current approved IAA categories are Retail Services; Fulfillment; Addressing ( printed page 64872) and Geospatial Technology Services; Short-Term Rental/Conference and Training Center Services; Lease Agreements; and Contracting Services.^[9]

III. Proposal

The Postal Service explains that in December of 2025 (FY 2026 Quarter 1) it entered into an agreement with the United States Census Bureau (“Census”) to participate in a pilot study wherein mail carriers would assist in providing “enumeration support” for the 2026 Census Test Run. Proposal at 2. “In-field enumeration” involves Census employees or other designees attempting to contact residents who did not respond to the mailed Census form. Id. Activities conducted by mail carriers “mainly included a review of the Census provided addresses that ha[d] not responded to the Census form that [were] on their route[,]” “provid[ing] vacancy status of . . . residence[s],” “educat[ing] potential respondents on completing the survey,” and “administer[ing] the survey in person if needed.” Id. Both city and rural carriers participated in the pilot, after receiving training from Census. Id. Carriers “used the knowledge of their routes to resolve enumeration cases that were assigned to known vacant addresses[,]” and “[t]he remaining enumeration cases [were] then . . . attempted along the carrier's line of travel.” Id. Carriers used their Mobile Delivery Devices (MDDs) to record their time spent on Census activities. Id.

Because the Postal Service asserts that the Census IAA does not fall neatly within any of the existing IAA categories, the Postal Service proposes a new IAA category to be called “Side-Along Services,” to which the Census IAA and any subsequent similar IAAs would be assigned. Id. at 2-3. Noting that the 2026 Census Test Run was a pilot, the Postal Service asserts that “[t]he proposed inclusion of this category does not guarantee such an agreement would exist in the future but would provide the appropriate reporting structure for this type of agreement.” Id. at 3.

The Postal Service “proposes a simple cost structure for [the Side-Along Services] category.” Id. It states that “[s]ince total Census activity time was recorded by each carrier, the total hours can be converted to costs by multiplying each craft type's respective productive hourly wage rate and piggyback factor.” Id. The Postal Service concedes that “[i]n the future, each agreement would need to be evaluated for additional cost characteristics,” but states that “that process would not deviate from current evaluations that occur with new and unique IAAs.” Id. The Postal Service provides, under seal, a sample cost structure using FY 2025 rates and factors with preliminary hourly data. Id.

The Postal Service asserts that if its proposal is approved by late November, it will be able to use the new “Side-Along Services” category to organize and present final (as opposed to preliminary) cost and revenue information in the FY 2026 Annual Compliance Report. Id.

IV. Notice and Comment

Pursuant to 39 CFR 3050.11(d)(1), the Commission establishes Docket No. RM2027-2 for consideration of matters raised by the Petition. More information on the Petition may be accessed via the Commission's website at www.prc.gov. Interested persons may submit comments on the Petition and the Postal Service's Proposal by October 28, 2026. Pursuant to 39 U.S.C. 505, Christopher Mohr is designated as an officer of the Commission (Public Representative) to represent the interests of the general public in this proceeding.

V. Ordering Paragraphs

It is ordered:

1. The Commission establishes Docket No. RM2027-2 for consideration of the matters raised by the Petition of the United States Postal Service to Initiate a Proceeding to Change Analytical Principles, filed October 5, 2026.

2. Comments by interested persons in this proceeding are due October 28, 2026.

3. Pursuant to 39 U.S.C. 505, the Commission appoints Christopher Mohr to serve as an officer of the Commission (Public Representative) to represent the interests of the general public in this docket.

4. This Order, or abstract thereof, will be published in the Federal Register .