USPS periodic reporting rulemaking on hybrid agreement accounting
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This proposal would change how the Postal Service separates and reports costs, revenue, and volumes for agreements that mix postal services with nonpostal or property services. The goal is to make sure the postal and nonpostal parts are tracked separately in annual compliance reporting, especially for “hybrid” agreements with government agencies. For business and compliance teams working with USPS, the practical effect is more detailed accounting and reporting rules, plus a new comment deadline in this proceeding. The Postal Service wants to reclassify fulfillment costs as nonpostal for annual reviews and rename one reporting bucket from “COVID Test Kits- Fulfillment” to simply “Fulfillment.”
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Key Changes
- Requires separate tracking of postal and nonpostal parts of hybrid agreements in annual compliance reporting
- Moves fulfillment-related costs and revenues from NSA reporting into IAA reporting categories
- Renames the current category 'COVID Test Kits- Fulfillment' to 'Fulfillment'
Obligations
What this law requires
Interested persons may submit comments on the Postal Service’s petition and proposal regarding analytical principles for periodic reporting.
Interested persons may submit comments on the Postal Service petition and proposed analytical changes in Docket No. RM2026-4.
The Postal Service must file annual reports after the close of each fiscal year that analyze costs, revenues, rates, and quality of service for each agreement or substantially similar set of agreements providing property or nonpostal services under 39 U.S.C. 3703, the program as a whole under 39 U.S.C. 3704, and any other nonpostal service authorized under Chapter 37, using methodologies prescribed by the Commission and in sufficient detail to demonstrate compliance.
The Postal Service must file a proposed change in analytical principles consistent with Conditions 5 and 7 of Order No. 6659, as clarified by Order No. 9377, addressing hybrid agreements.
For annual compliance review purposes, the Postal Service must designate fulfillment costs as nonpostal and disaggregate nonpostal product costs and revenues from postal product costs and revenues for hybrid agreements.