Executive Summary Losing Facility Name and Type:Lansing, MI P&DC Street Address:4800 Collins Rd City, State:Lansing, MI Current 3D ZIP Code(s): 488-489 Miles to Gaining Site 1: 72.3 Type of Distribution to Consolidate: Orig & Dest Miles to Gaining Site 2: 68 Gaining Facility Name and Type: Site 1 - Grand Rapids P&DC Site 2 - Michigan Metroplex P&DC Current 3D ZIP Code(s): 493-495 480-485 Summary of AMP Worksheets Savings/Costs Mail Processing Craft Workhour Savings = $6,717,146 from Workhour Costs - Proposed Non-MP Craft/EAS + Shared LDCs Workhour Savings (less Maint/Trans) = $180,791 from Other Curr vs Prop PCES/EAS Supervisory Workhour Savings = $2,185,328 from Other Curr vs Prop Transportation Savings = $1,310,305 from Transportation (HCR and PVS) Maintenance Savings = $6,472,121 from Maintenance Space Savings = ($330,000) from Space Evaluation and Other Costs Total Annual Savings $16,535,691 = Total One-Time Costs = $2,061,523 from Space Evaluation and Other Costs Total First Year Savings = $14,474,168 Staffing Positions Craft Position Loss = 169 from Staffing - Craft PCES/EAS Position Loss = (1) from Staffing - PCES/EAS Volume Total FHP to be Transferred (Average Daily Volume) = 1,740,909 from Workhour Costs - Current Current FHP at Gaining Facility (Average Daily Volume) = 8,216,349 from Workhour Costs - Current Losing Facility Cancellation Volume (Average Daily Volume) = 255,313 (= Total TPH / Operating Days) Service Unchanged + Unchanged + Service Standard Impacts UPGRADED DOWNGRADED Upgrades Upgrades by ADV ADV ADV ADV % First-Class Mail® TBD TBD TBD TBD Priority Mail® TBD TBD TBD TBD Package Services TBD TBD TBD TBD Periodicals N/A* N/A* N/A* N/A* Standard Mail N/A* N/A* N/A* N/A* * - Periodical and Standard mail origin 3-digit ZIP Code to destination 3-digit ZIP Code volume is not available AMP Savings/Costs Site 1: Grand Rapids Site 2: MI Metroplex Total Mail Processing Craft Workhour Savings $3,934,937 $2,782,209 $6,717,146 Non-MP Craft/EAS + Shared LDCs Workhour Savings (less Maint/Trans) $188,754 ($7,963) $180,791 PCES/EAS Supervisory Workhour Savings $1,563,649 $621,679 $2,185,328 Transportation Savings $1,008,767 $301,538 $1,310,305 Maintenance Savings $4,564,378 $1,907,743 $6,472,121 Space Savings ($330,000) $0 ($330,000) Total Annual Savings $10,930,485 $5,605,206 $16,535,691 $0 Total One-Time Costs $1,638,331 $423,192 $2,061,523 Total First Year Savings $9,292,154 $5,182,014 $14,474,168 Staffing Positions Craft Staffing Changes # (Losing Site) -4 Site 1: Grand Rapids Site 2: MI Metroplex Total -352 164 19 -169 Management Staffing Changes (Losing Site) Site 1: Grand Rapids Site 2: MI Metroplex Total -23 11 13 1 ----- AMP Data Entry Page ----- 1. Losing Facility Information Type of Distribution to Consolidate: Orig & Dest MODS/BPI Office Facility Name & Type: Lansing P&DC Street Address: 4800 Collins Rd. City: Lansing State: MI 5D Facility ZIP Code: 48924 District: Greater Michigan Area: Great Lakes Finance Number: 25-5271 Current 3D ZIP Code(s): 488, 489 Miles to Gaining Facility: 72.3 Miles EXFC office: Yes Plant Manager: DeVette Murphy Senior Plant Manager: Lee Thompson District Manager: Nancy Rettinhouse Facility Type after AMP: Post Office 2. Gaining Facility Information Facility Name & Type: Grand Rapids P&DC and PDF Street Address: 225 Michigan St. NW City: Grand Rapids State: MI 5D Facility ZIP Code: 49501 District: Greater Michigan Area: Great Lakes Finance Number: 25-3921 and 25-3917 Current 3D ZIP Code(s): 493-495 EXFC office: Yes Plant Manager: NA Senior Plant Manager: Lee Thompson District Manager: Nancy Rettinhouse 3. Background Information Start of Study: 09/15/11 Date Range of Data: Jul-01-2010:Jun-30-2011 Processing Days per Year: 310 Bargaining Unit Hours per Year: 1,745 EAS Hours per Year: 1,822 Date of HQ memo, DAR Factors/Cost of Borrowing/ New June 16, 2011 Facility Start-up Costs Update Date & Time this workbook was last saved: 2/19/2012 17:18 4. Other Information Area Vice President: Jo Ann Feindt Vice President, Network Operations: David E. Williams Area AMP Coordinator: Nancy Schoenbeck HQ AMP Coordinator: Monique Packer rev 09/13/2010 Package Page 1 AMP Data Entry Page Summary Narrative Last Saved: February 19, 2012 Losing Facility Name and Type: Lansing P&DC Current 3D ZIP Code(s): 488, 489 Type of Distribution to Consolidate: Orig & Dest Gaining Facility Name and Type: Grand Rapids P&DC and PDF Current 3D ZIP Code(s): 493-495 B a c k g r o u n d : The Lansing, MI P&DC is a postal owned facility that processes originating and destinating volumes for service area 488- 489. It is approximately 72 miles southeast of the Grand Rapids MI P&DC. The Greater Michigan District completed an Area Mail Processing (AMP) study to determine the feasibility of relocating all originating and destinating letter mail, flat mail, express mail, registry and originating priority/parcels mail processing and distribution operations from the Lansing MI P&DC to the Grand Rapids MI P&DC which services the 3 digit SCF’s of 493, 494, and, 495. Along with processing operations, the Lansing P&DC houses a retail operation, a box section, and a Business Mail Entry Unit (BMEU). Also located in a separate facility on the premises is a VMF. The retail operation, box section, BMEU and the VMF will remain. Financial Summary: Financial savings proposed for this consolidation of originating and destinating operations are: Total Annual Savings: $ 10,930,485 Total First Year Savings: $ 9,292,154 One Time Costs: $ 1,638,331 The total first handled pieces (FHP) to be transferred (Average Daily Volume) is 1,451,461 pieces. Customer Service Considerations: Specific service standard changes associated with this Area Mail Processing consolidation are contingent upon the resolution of both (a) the rulemaking in which current market dominant product service standards in 39 CFR Part 121 are being evaluated, and (b) all remaining AMP consolidation proposals that are part of the same network rationalization initiative. A complete file reflecting any new service standards will be published at www.usps.com once all of the related AMP decisions that provide the foundation for new service standards are made. Priority Mail and Express Mail service standards will be based upon the capability of the network. There will be no changes to collection box times. The Full Service BMEU and retail unit operating hours at the Lansing P&DC will remain unchanged. There are no plans at this time to sell the Lansing MI facility and therefore no sites have designated as a transportation hub. If necessary in the future, the East Lansing Post Office may be considered as an alternate site for transportation, BMEU and retail. This facility is only 10 miles away from the current location. The current proposal utilizes the Lansing P&DC as the transportation and dispatch hub. The proposal includes no changes to the BMEU located 4800 Collins Rd and hours of operation would remain 1100 to 1800 Monday through Friday. The 9 bulk mail clerks and 2 techs will continue to have their workhours charged to finance number 25-5270. Retail operations will also remain unchanged will retain the same hours and service they currently have. Hours of operation are Monday through Friday 0830 – 1930 and Saturday 0830 -1430. The function 4 employee workhours are also charged to finance number 255270. Transportation Changes: There will be no change to Associate Office collection dispatch times. Total annual transportation savings of $1,008,767 were realized from changes in Highway Contract Routes (HCR). Transportation Costs: $1,636,182 for new transportation to support the Lansing hub system and $1,764,213 to support additional trips on existing contracts, notably the Grand Rapids to the Atlanta STC and Grand Rapids to Metroplex. Staffing Impacts: Movement of mail will have an impact on staffing and will require movement of personnel. Craft employees currently total 236 at the Kalamazoo P&DC. The total proposed is 46 for a loss of 190 FTEs. Craft employees currently total 689 at the Grand Rapids P&DC. The total proposed for Grand Rapids after Lansing and Grand Rapids is 853 for a gain of 164 FTE craft employees. However, the craft staffing shown in Grand Rapids is what the final staffing will be in Grand Rapids. The net change to all craft staffing is a reduction of 378 FTEs total. This will be the total impact with both Lansing and Kalamazoo into Grand Rapids. The proposed AMP craft staffing at the Grand Rapids P&DC will support 26 SDO positions at the Grand Rapids P&DC bringing the proposed EAS staffing there to 60. Currently Grand Rapids P&DC has 49 EAS on the rolls. The elimination of 23 EAS positions at the Lansing P&DC would result in a loss of 12 EAS positions. rev 06/10/2009 Package Page 4 AMP Summary Narrative Summary Narrative (continued) Summary Narrative Page 2 Management and Craft Staffing Impacts Lansing Grand Rapids Total Current Total Diff Total Current Total Diff Net Diff On-Rolls Proposed On-Rolls Proposed Craft 1 395 43 (352) 689 853 164 (188) Management 24 1 (23) 49 60 11 (12) 1 Craft = FTR+PTR+PTF+Casuals Mail Processing Management to Craft Ratio Current Proposed SDOs to Craft MDOs+SDOs to Craft SDOs to Craft MDOs+SDOs to Craft Management to 1 1 1 1 Craft Ratios (1:25 target) (1:22 target) (1:25 target) (1:22 target) 2 Lansing 1 : 31 1 : 25 1 : 336 1 : 336 Grand Rapids 1 : 29 1 : 23 1 : 27 1 : 22 1 Craft = FTR+PTR+PTF+Casuals 2 Craft = F1 + F4 at Losing; F1 only at Gaining As a matter of policy, the Postal Service follows the Worker Adjustment and Retraining Notification Act’s (“WARN”) notification requirements when the number of employees experiencing an employment loss within the meaning of WARN would trigger WARN’s requirements. Some or all of the impacted employees described above may not experience an employment loss within the meaning of WARN due to transfers or reassignments. Equipment Relocation and Maintenance Impacts: Originating letter mail is cancelled in Lansing P&DC by four (4) Advanced Facer Canceller System (AFCS) with an average daily volume of 255,513 pieces. None are being relocated to the Grand Rapids P&DC. Currently Lansing is scheduled for 3 AFCS 200s, one of which Grand Rapids is requesting be relocated to their main facility, and two to be relocated to Traverse City MI . Equipment being relocated from the Lansing P&DC to the Grand Rapids P&DC: 1 AFSM 100/AI/ATHS, 1 SPBS/APBS with feed system, 1 ATU, 1 DIOSS D, and 9 DBCSs. Grand Rapids will also convert existing CIOSS to a DIOSS. 1 DIOSS B from an alternate site is requested as Lansing does not have one.Only half of the relocation costs will be shown in this AMP, the remaining will be shown in a concurrent AMP. Excess equipment from the Lansing P&DC will be disposed of following all headquarters and area protocols. No cost has been attributed in this workbook for the disposal of equipment. Two generators at a cost of $190,000 each are necessary as a contingency in the event of a power outage as there will be no P&DCs for offload purposes. rev 06/10/2009 Package Page 5 AMP Summary Narrative Summary Narrative (continued) Summary Narrative Page 3 One time costs: DBCS power $60,000.00 Vault and LOG removal $60,000.00 Wall and power panel removal/relocation $100,000.00 SPBS/LMS power $11,000.00 Power for 7 DBCSs, 1 AFSM/AI, 1 RCS, 1 ATU, PARS PRIOSS cabinets $203,000.00 LCTS/RCS/ATU integration $60,000.00 Expansion of LCTS $90,000.00 Relocation of 2 ATUs $84,000.00 Chutes $61,000.00 2 generators $380,000.00 move the maintenance areas of the P1 $23,000.00 Sub Total $1,132,000.00 20% Contingency $226,400.00 TOTAL ONE TIME COSTS $1,358,400.00 Total annual Maintenance savings is $4,564,378 which $1,383,131 is attributed to parts and materials. AFCS Capacity / Collection Arrival Study for Grand Rapids: The Average Daily Volume of cancellations to be transferred from the Lansing P&DC to the Grand Rapids P&DC is 251,313 pieces. Local AFCS capacity and collection arrival studies indicate that no additional equipment is needed to handle the additional volume. Facility Costs for Grand Rapids: In order to accommodate the additional equipment, Grand Rapids P&DC, will need to relocate equipment within the Grand Rapids P&DC, the Grand Rapids P1 Annex, and the Grand Rapids P3 Annex. Additional facility costs will be required and include electrical and HVAC upgrades for the added equipment as well as integration/expansion of existing equipment for a total one time cost of $1,366,704. Space Impacts: The dock area of the Lansing P&DC will be utilized for the consolidation of collection and dispatch mails as well as for the remaining Priority and BMEU operations. Space impacts to the Grand Rapids P&DC require that the carrier routes currently located there be relocated to an alternate facility. This includes zones 49503 and 49507, a total of 57 routes. Build out or Lease: The Grand Rapids facility must remove the carriers in order to take in all operations for both the Kalamazoo and Lansing proposed AMPs. The lease for a carrier facility for 10 years is projected to be $1,500,000, or an annual rent of $150,000. Half of the amount is shown in the Space Savings portion of the Executive Summary of this AMP, the remaining is shown in the concurrent AMP – Kalamazoo – Grand Rapids. The estimated costs to build out or postalize this leased space is $1,112,000, bringing the total to $2,733,408. The sunk cost of $1,366,704 has been itemized on the Space and Cost page and also carried to the Executive Summary. Remaining Operations at Lansing P&DC: The remaining Lansing P&DC F1 platform operation will require 9 clerks and 22 mail handlers, 8 of which will be PTFs. Conclusion: Approval of the Lansing MI P&DC AMP Proposal would result in a savings of 188 craft employees. There would also be a first year savings of $9,292,154 and an annual savings of $10,930,485. Package Page 6 AMP Summary Narrative 24 Hour Clock Last Saved: February 19, 2012 Losing Facility Name and Type: Lansing P&DC Current 3D ZIP Code(s): 488, 489 Type of Distribution to Consolidate: Orig & Dest Gaining Facility Name and Type: Grand Rapids P&DC and PDF Current 3D ZIP Code(s): 493-495 2 4 H o u r I n d i c a t o r R e p o r t 80% 100% 100% 100% Millions 100% 100% 86.9% Weekly TrendsBeginning Day Facility Cancelled by 2000Data Source = EDW MCRS OGP Cleared by 2300Data Source = EDW EOR OGS Cleared by 2400Data Source = EDW EOR MMP Cleared by 2400Data Source = EDW EOR MMP Volume On Hand at 2400Data Source = EDW MCRS Mail Assigned Commercial /FedEx By 0230Data Source = EDW SASS DPS 2nd Pass Cleared by 0700Data Source = EDW EOR Trips On-Time 0400 - 0900Data Source = EDW TIMES % 2-AprSAT 4/2LANSING P&DC 54.2% 98.3% 99.0% 83.2% #VALUE! 100.0% 99.7% 62.2% 9-AprSAT 4/9LANSING P&DC 64.2% 96.4% 98.6% 87.4% #VALUE! 100.0% 99.5% 57.5% 16-AprSAT 4/16LANSING P&DC 62.4% 96.6% 97.9% 90.7% #VALUE! 100.0% 99.4% 53.5% 23-AprSAT 4/23LANSING P&DC 60.0% 98.1% 100.0% 90.1% #VALUE! 100.0% 99.5% 71.8% 30-AprSAT 4/30LANSING P&DC 53.6% 92.6% 96.0% 90.8% #VALUE! 100.0% 98.9% 50.9% 7-MaySAT 5/7LANSING P&DC 71.9% 98.9% 100.0% 94.8% #VALUE! 100.0% 99.3% 57.5% 14-MaySAT 5/14LANSING P&DC 71.9% 97.4% 100.0% 90.3% #VALUE! 100.0% 100.0% 87.8% 21-MaySAT 5/21LANSING P&DC 78.1% 98.8% 100.0% 86.4% #VALUE! 100.0% 100.0% 85.5% 28-MaySAT 5/28LANSING P&DC 60.0% 93.9% 96.6% 82.8% #VALUE! 100.0% 99.9% 84.8% 4-JunSAT 6/4LANSING P&DC 68.5% 95.8% 82.9% #VALUE! 100.0% 99.0% 75.5% 11-JunSAT 6/11LANSING P&DC 70.8% 97.7% 87.8% #VALUE! 100.0% 99.8% 74.9% 18-JunSAT 6/18LANSING P&DC 62.5% 96.8% 88.8% #VALUE! 100.0% 99.9% 89.6% 25-JunSAT 6/25LANSING P&DC 60.6% 95.1% 87.8% #VALUE! 100.0% 100.0% 81.7% 2-JulSAT 7/2LANSING P&DC 67.3% 97.3% 90.5% #VALUE! 100.0% 99.7% 80.0% 9-JulSAT 7/9LANSING P&DC 64.1% 94.8% 96.9% #VALUE! 100.0% 99.5% 80.5% 16-JulSAT 7/16LANSING P&DC 63.6% 95.6% 91.4% #VALUE! 100.0% 99.4% 82.0% 23-JulSAT 7/23LANSING P&DC 71.8% 97.7% 90.8% 89.6% #VALUE! 100.0% 99.5% 78.2% 30-JulSAT 7/30LANSING P&DC 61.8% 93.6% 82.9% 90.9% #VALUE! 100.0% 100.0% 71.4% 6-AugSAT 8/6LANSING P&DC 69.3% 99.6% 100.0% 87.7% #VALUE! 100.0% 99.9% 83.6% 13-AugSAT 8/13LANSING P&DC 70.3% 96.4% 100.0% 85.7% #VALUE! 100.0% 100.0% 90.1% 20-AugSAT 8/20LANSING P&DC 61.6% 96.8% 99.1% 90.4% #VALUE! 100.0% 100.0% 88.3% 27-AugSAT 8/27LANSING P&DC 61.1% 93.8% 94.2% 85.9% #VALUE! 100.0% 100.0% 87.2% 3-SepSAT 9/3LANSING P&DC 59.6% 96.5% 96.6% 86.2% #VALUE! 100.0% 99.7% 69.1% 10-SepSAT 9/10LANSING P&DC 68.8% 98.7% 96.8% 87.7% #VALUE! 100.0% 100.0% 59.2% 24 Hour Indicator Report 80% 100% 100% 100% Millions 100% 100% 86.9% Weekly TrendsBeginning Day Facility Cancelled by 2000Data Source = EDW MCRS OGP Cleared by 2300Data Source = EDW EOR OGS Cleared by 2400Data Source = EDW EOR MMP Cleared by 2400Data Source = EDW EOR MMP Volume On Hand at 2400Data Source = EDW MCRS Mail Assigned Commercial /FedEx By 0230Data Source = EDW SASS DPS 2nd Pass Cleared by 0700Data Source = EDW EOR Trips On-Time 0400 - 0900Data Source = EDW TIMES % 2-AprSAT 4/2GRAND RAPIDS P&DC 65.8% 98.1% 95.1% 97.0% #VALUE! 87.7% 100.0% 82.5% 9-AprSAT 4/9GRAND RAPIDS P&DC 67.8% 97.1% 97.1% 96.4% #VALUE! 89.1% 99.4% 72.9% 16-AprSAT 4/16GRAND RAPIDS P&DC 64.5% 91.5% 77.9% 95.1% #VALUE! 89.3% 99.9% 79.5% 23-AprSAT 4/23GRAND RAPIDS P&DC 66.0% 97.3% 100.0% 97.1% #VALUE! 94.1% 100.0% 88.4% 30-AprSAT 4/30GRAND RAPIDS P&DC 63.9% 97.2% 98.1% 97.2% #VALUE! 91.5% 99.3% 80.1% 7-MaySAT 5/7GRAND RAPIDS P&DC 66.6% 96.2% 100.0% 93.4% #VALUE! 87.6% 100.0% 81.0% 14-MaySAT 5/14GRAND RAPIDS P&DC 66.3% 98.6% 100.0% 96.8% #VALUE! 97.1% 100.0% 94.0% 21-MaySAT 5/21GRAND RAPIDS P&DC 66.2% 98.5% 100.0% 96.5% #VALUE! 90.7% 99.6% 88.2% 28-MaySAT 5/28GRAND RAPIDS P&DC 60.4% 94.5% 93.5% 92.4% #VALUE! 87.8% 100.0% 74.4% 4-JunSAT 6/4GRAND RAPIDS P&DC 60.7% 97.6% 97.4% 96.2% #VALUE! 89.9% 100.0% 77.3% 11-JunSAT 6/11GRAND RAPIDS P&DC 56.2% 93.5% 96.1% 97.3% #VALUE! 91.5% 99.8% 82.8% 18-JunSAT 6/18GRAND RAPIDS P&DC 51.6% 93.2% 96.1% 96.6% #VALUE! 83.8% 99.8% 91.9% 25-JunSAT 6/25GRAND RAPIDS P&DC 56.5% 91.1% 89.5% 96.6% #VALUE! 93.1% 98.6% 74.9% 2-JulSAT 7/2GRAND RAPIDS P&DC 53.1% 93.3% 94.6% 93.2% #VALUE! 81.4% 100.0% 52.1% 9-JulSAT 7/9GRAND RAPIDS P&DC 60.7% 93.4% 97.7% 95.1% #VALUE! 90.4% 99.7% 81.1% 16-JulSAT 7/16GRAND RAPIDS P&DC 56.2% 93.0% 81.5% 96.8% #VALUE! 93.3% 100.0% 82.8% 23-JulSAT 7/23GRAND RAPIDS P&DC 56.5% 91.6% 93.7% 96.1% #VALUE! 83.5% 99.9% 92.0% 30-JulSAT 7/30GRAND RAPIDS P&DC 58.8% 89.1% 100.0% 94.6% #VALUE! 88.1% 99.3% 79.4% 6-AugSAT 8/6GRAND RAPIDS P&DC 60.7% 92.9% 100.0% 94.2% #VALUE! 82.3% 100.0% 87.4% 13-AugSAT 8/13GRAND RAPIDS P&DC 53.9% 86.7% 100.0% 95.0% #VALUE! 87.9% 100.0% 88.9% 20-AugSAT 8/20GRAND RAPIDS P&DC 60.1% 93.6% 94.6% #VALUE! 89.9% 100.0% 93.5% 27-AugSAT 8/27GRAND RAPIDS P&DC 56.8% 83.0% 94.8% #VALUE! 92.2% 100.0% 82.1% 3-SepSAT 9/3GRAND RAPIDS P&DC 55.7% 82.3% 100.0% 89.8% #VALUE! 79.5% 100.0% 72.5% rev 04/2/2008 Package Page 5 AMP 24 Hour Clock MAP Last Saved:February 19, 2012 Losing Facility Name and Type:Lansing P&DC Current 3D ZIP Code(s): 488, 489 Miles to Gaining Facility: 72.3 Miles Gaining Facility Name and Type:Grand Rapids P&DC and PDF Current 3D ZIP Code(s): 493-495 rev 03/20/2008 Package Page 6 AMP MAP Stakeholders Notification (WorkBook Tab Notification - 1) Last Saved: February 19, 2012 Stakeholder Notification Page 1 Losing Facility: Lansing P&DC AMP Event: Start of Study rev 07/16/2008 Package Page 8 AMP Stakeholders Notification