This is the first NSA in the postal service, but it won`t be the last. Our pricing group is currently negotiating with other shippers to enter into agreements that offer pricing incentives to businesses to make greater use of mail as an effective marketing tool. As these companies grow their business, they will grow our business and add significant revenue to our bottom line. NSA First Class Mail and USPS Marketing Mail are based on the combined total revenue of First Class Mail Automation Letters, USPS Marketing Mail Automation Letters, and USPS Mail Carrier Route Automation Letters and incentivize the growth of First Class Mail. A baseline is determined from revenue generated by first-class mail automation letters, USPS marketing mail automation letters, and USPS marketing mail carriers that are labeled with barcodes for automation-enabled letters that are sent and eligible for full-service smart mail (705.23.0) prices within a previously specified 12-month period. It includes a postage threshold that is adjusted by the baseline to qualify for a discount. When the adjusted revenue threshold is reached, a discount will be generated on a percentage of the difference in an increase in shipping costs as a result of a subsequent cumulative price increase for first class mail and USPS marketing mail in proportion to the prices in effect at the time of the agreement. If the adjusted turnover threshold is not reached, the holder of the SLA pays a penalty. You may receive questions about this agreement because commercial shippers want to know how to get an NSA. Advise business shippers interested in an NSA to get more information by calling 800-ASK-USPS. An NSA is a contractual agreement between the postal service and a company that benefits both parties. The shipper complied with four of the five main contractual conditions we examined, including mail type and zone rates, permit number, and payment system.
However, the shipper did not meet the annual volume obligation. Especially in the first year of the NSA, the mailer sent only less than necessary. During the second year of the NSA (until May 31, 2020), the shipper shipped less than at the same time last year. This Agreement provides that the Postal Service, in its sole discretion, has the right to revert to the most recent Priority Mail Commercial Plus price for packages shipped in the following year of the Contract if the Shipper fails to comply with the annual volume obligation. An NSA is a contractual agreement between the postal service and a sender, with mail receiving personalized prices in exchange for meeting mail volume and preparation requirements. The goal of using NASs is to retain price-sensitive customers and promote additional letter volume and revenue. While only a small fraction of the postal service`s commercial parcel customers have NSAs, 40% of the postal service`s $5.5 billion domestic parcel volume is shipped under these agreements. Applicants are encouraged to have or receive a shipping permit, set up a Centralized Account Processing System (CAPS), become Postal One compliant, and participate in mail Piece`s total quality management before being considered. You must also contribute to the costs of negotiating and litigation the agreement before the PRC, which may include (but is not limited to) separate consultation, research and documentation fees and witness fees. Potential attendees should be full-service IMb customers with large but declining first-class mail volumes and significant additional volumes of USPS marketing mail. Applicants must also meet the standards of 1.1 to 1.3 to be eligible. The basic agreement consists of five components: An NSA is a contractual agreement between the postal service and an individual company that provides tariff incentives in exchange for a change in the company`s behavior that benefits the postal service.
In many cases, the change in behavior mentioned in the contract will lead to a significant increase in the annual volume of first-class mail or standard mail. To enter into force, the proposed NSA must be reviewed and recommended by the Postal Tariff Commission (RPC) and approved by the Governing Council. Shippers interested in being considered for an NSA can obtain more information by emailing Pricing Strategy at NSA@usps.com, calling 703-292-3638, or writing to: A Negotiated Service Agreement (NSA) is a personalized and mutually beneficial contractual agreement between the USPS and a particular shipper (customer or organization). An NSA provides custom prices, prices, and classifications under the conditions set out in the NSA and may include changes to current shipping standards and other postal requirements. Any shipper may submit a request for an NAS if the shipper meets the requirements of section 1.2 and follows the version 1.3 process. Currently, there is only one – a 3-year test with Capital One, which comes into effect on September 1, 2003. Capital One receives incentives in exchange for shipping more first-class mail items to attract new customers and grow its business. Capital One is also committed to switching to the Use of the Change of Address Service – email notification of forwarded mail and undeliverable items. This means the postal service doesn`t have to sort through millions of undeliverable mail and send it back to Capital One. Ultimately, the NSA could be worth millions of dollars to the postal service.
We are pursuing other agreements and plan to implement more NSAs in the near future. The sender has complied with all the contractual terms we have reviewed, including the type of email, the payment system and the volume obligations. In addition, the Postal Service provided adequate oversight of the NSA, which included quarterly activity review meetings with the shipper to discuss the performance, volume, and expectations of the contract. If the USPS decides to terminate negotiations with the applicant before reaching an agreement to enter into an NSA under 1.1, the pricing strategy officer will notify the applicant in writing and state the reasons for the decision. Within 15 days of receiving the written statement, the candidate may request a review of the manager`s decision. The applicant`s request for reconsideration must contain additional information and the reasons why negotiations on an NSA should resume. The applicant submits the request for review by the Pricing Strategy Manager to the Vice-President of Pricing and Classification (see 608.8.0). A shipper who wishes to complete an NSA with the USPS must submit a written proposal with supporting documentation to the USPS Pricing Strategy Manager (see address 608.8.0). The proposal shall include the reasons for the request to the NSA, as well as a summary of the information corresponding to the applicable candidate characteristics and the general requirements described in point 1.2. A non-disclosure agreement must be signed prior to any substantive discussion of the proposal. Negotiations must result in significant and measurable net benefits for the postal service and the customer; and Capital One has also replaced our electronic notification service (which notifies senders of new addresses or reasons for the irreligibility of their postal items) with the Change of Address (ACS) service. With ACS, we will be able to avoid the handling and transport costs of millions of postal items – another boost to our bottom line.
NSAs take customer responsiveness to the next level. We need to make sure that Capital One and all ACS mail items are handled properly. ACS mail items are identified by an “ACS participant code” printed above the address block (a pound sign (#), the letter “B” and six additional letters). .